----

| British Columbia                                               |   | 1041                                                     |
|----------------------------------------------------------------|--------|----------------------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (Primary Standard Industrial Classification Code Number) |

----

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| PART I                                                                                                   |   | 4        |
|----------------------------------------------------------------------------------------------------------|--------|----------|
|     Item 1. Identity of Directors, Senior Management and Advisers.                        |   | 4        |
|     Item 2. Offer Statistics and Expected Timetable.                                      |   | 4        |
|     Item 3. Key Information                                                               |   | 4        |
|     Item 4. Information on the Company                                               |   | 12       |
|     Item 4A. Unresolved Staff Comments                                                    |   | 31       |
|     Item 5. Operating and Financial Review and Prospects                                  |   | 31       |
|     Item 6. Directors, Senior Management and Employees                                    |   | 33       |
|     Item 7. Major Shareholders and Related Party Transactions                             |   | 20       |
|     Item 8. Financial Information                                                         |   | 42       |
|     Item 9. The Offer and Listing                                                         |   | 43       |
|     Item 10. Additional Information                                                       |   | 44       |
|     Item 11. Quantitative and Qualitative Disclosures About Market Risk                   |   | 56       |
|     Item 12. Description of Securities Other Than Equity Securities                       |   | 57       |
| PART II                                                                                                  |   | 57       |
|     Item 13. Defaults, Dividend Arrearages and Delinquencies                              |   | 57       |
|     Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds | 57     |
|     Item 15. Controls and Procedures                                                      |   | 57       |
|     Item 16. [Reserved]                                                                   |   | 58       |
|     Item 16A. Audit Committee Financial Expert                                            |   | 58       |
|     Item 16B. Code of Ethics                                                              |   | 58  |
|     Item 16C. Principal Accountant Fees and Services                                      |   | 58  |
|     Item 16D. Exemptions from the Listing Standards for Audit Committees                  | 58     |
|     Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers      | 58     |
|      Item 16F. Changes in Registrant's Certifying Accountant                         |   |  59 |
|      Item 16G. Corporate Governance                                                  |   |  60 |
|     Item 16H. Mine Safety Disclosure                                                      |   |  60 |
|  PART III                                                                                           |   |  60 |
|     Item 17. Financial Statements                                                         |   |  60 |
|     Item 18. Financial Statements                                                         |   |  50 |
|     Item 19. Exhibits                                                                     |   |  61 |

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|  | A. | Selected Financial Data. |
|--|----|--------------------------|

----

|                                                             |   |                    |       |   | Year ended              |   |       |                    |   |
|------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|-------------------------|--------|
|                                                             |   | December 31,2015(IFRS)$ |       |   | December 31,2014(IFRS)$ |   |       | December 31,2013(IFRS)$ |   |   | December 31,2012(IFRS)$ |   |   | December 31,2011(IFRS)$ |   |
|                                                             |   |                    |       |   |                    |   |       |                    |   |   |   |   |   |   |   |
| Net loss for the period                                          |   |                    | (2,804,118 | )      |                    |   | (3,302,154 | )                       |   |   | (2,680,088 | ) |   |   | (4,172,082 | ) |   |   | (8,280,161 | ) |
| Net loss for the period – basic and diluted loss per share |   |                    | (0.04      | )      |                    |   | (0.03      | )                       |   |   | (0.02 | ) |   |   | (0.04 | ) |   |   | (0.09 | ) |
| Working capital                                                  |   |                    | (2,074,461 | )      |                    |   | (655,728   | )                       |   |   | 1,967,559 |   |   |   | 4,426,615 |   |   |   | 8,261,632 |   |
| Total assets                                                     |   |                    | 3,019,246  |   |                    |   | 2,526,707  |                    |   |   | 5,002,767 |   |   |   | 7,701,979 |   |   |   | 11,494,788 |   |
| Total non-current liabilities                                    |   |                    | 250,000    |   |                    |   | 207,069    |                    |   |   | 125,000 |   |   |   | 125,000 |   |   |   | 125,000 |   |
| Total shareholders' equity                                       |   |                    | 520,933    |   |                    |   | 1,465,640  |                    |   |   | 4,285,821 |   |   |   | 6,639,883 |   |   |   | 10,628,859 |   |
| Cash dividends                                                   |   |                    | -          |   |                    |   | -          |                    |   |   | - |   |   |   | - |   |   |   | - |   |

|                                                                                                                                                                                                                                                                                                                                               Exchange Rate U.S. Dollars into                                                                                                                                                                                                                                                                                                                                                               Canadian dollars      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | High |   |   | Low |   |
| Month ended March 31, 2016                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1.3468 |   |   |   | 1.2962 |   |
| Month ended February 29, 2016                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1.4040 |   |   |   | 1.3523 |   |
| Month ended January 31, 2016                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 1.4589 |   |   |   | 1.3969 |   |
| Month ended December 31, 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1.3990 |   |   |   | 1.3360 |   |
| Month ended November 30, 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1.3366 |   |   |   | 1.3083 |   |
| Month ended October 31, 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 1.3242 |   |   |   | 1.2904 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   | Average |   |
| Fiscal year ended December 31, 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   | 1.2787 |   |
| Fiscal year ended December 31, 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   | 1.1041 |   |
| Fiscal year ended December 31, 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   | 1.0297 |   |
| Fiscal year ended December 31, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   | 0.9696 |   |
| Fiscal year ended December 31, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   | 0.9592 |   |

|  | B. | Capitalization and Indebtedness |
|--|----|---------------------------------|

----

|  | C. | Reasons for the Offer and Use of Proceeds |
|--|----|-------------------------------------------|

|  | D. | Risk Factors |
|--|----|--------------|

----

----

----

----

----

----

|  | A. | History and Development of the Company |
|--|----|----------------------------------------|

|  | B. | Business Overview |
|--|----|-------------------|

|  | C. | Organizational Structure |
|--|----|--------------------------|

|  Corporation    |  Incorporation | Percentageownership | Business Purpose                         |
|----------------------|---------------------|---------------------|------------------------------------------|
| Cerro Cazador S.A.   | Argentina           | 100%                | Holder of Assets and Exploration Company |
| 1494716 Alberta Ltd. | Alberta             | 100%                | Nominee Shareholder                      |
| Hunt Gold USA LLC    | Washington, USA     | 100%                | Management Company                       |

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|  | D. | Property and Equipment |
|--|----|------------------------|

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|           |   | Year 1       |    |   | Year 2                |   |    | Years 3 & 4       |   |   |         |   |
|----------------|--------|--------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|--------------|--------|
| Target Area    |   | To July 2008 |    |   | July 2008 toJuly 2009 |   |    | July 2009 toJuly 2011 |   |   | Totals       |   |
| Noreste Area   |   | US$300,000   |    |   | US$400,000            |   |    | US$500,000            |   |   | US$1,200,000 |   |
| Veta Norte     |   |         | 500,000 |   |                  |   | 800,000 |                  |   |   | 800,000      |   |   |   | 2,100,000 |   |
| Central Area   |   |         | 500,000 |   |                  |   | 800,000 |                  |   |   | 900,000      |   |   |   | 2,200,000 |   |
| Piedra Labrada |   |         | 200,000 |   |                  |   | 100,000 |                  |   |   | 200,000      |   |   |   | 500,000 |   |
| TOTAL US$      |   | US$1,500,000 |    |   | US$2,100,000          |   |    | US$2,400,000          |   |   | US$6,000,000 |   |

|  | 1. | CCSA posted a US$600,000 performance bond (equal to 10% of the total proposed exploration investment). |
|--|----|--------------------------------------------------------------------------------------------------------|

|  | 2. | CCSA must maintain the La Josefina mining rights by paying the annual canons due the province on the project's 398 pertenencias. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | CCSA must complete surface agreements (lease or buy) with the surface landowners, as required by the Federal mining law, to gain legal access to the farms (estancias) that cover the project.  Most of the project and all of the current target areas lie within two large farms that have been unoccupied for many years - Estancia La Josefina and Estancia Piedra Labrada. The major part of mineralization occurs on Estancia La Josefina, which CCSA purchased in 2007. CCSA rents Estancia Piedra Labrada, which it uses as an exploration field camp. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Danilo Silva;    General Manager of Hunt's Argentina Subsidiary – Has served as a Senior Geologist and Project Manager with Yamana Resources and Buenaventura mining companies in his homeland of Argentina, and as general manager for Platero Resources    |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Vicente Sanchez;         Exploration Manager  – Professional Geologist from Argentina who leads all Hunt's Argentinean geologic crews |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Mariano Ibaldi;           Exploration Data Management – Professional Geologist who is meticulous in his documentation and analysis of data collected from all forms of sampling |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Jorge Garay;    Exploration Geologist – Senior Geologist and Project Manager with tremendous exploration experience in Santa Cruz |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Klaus Triebel;              Resource Estimation, Mine Planning & Pit Design – Most recently with Coeur as Manager – Resource Estimation, Mr. Triebel is a Senior Mine Geologist and Engineer |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Martin Fromm;           Consultant – Mine Management – Mining Engineer from Argentina, recently a Project Manager for Patagonia Gold S.A. at their Capa Oeste and Lomada mines                          |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Boundary | Latitude/Longitude | Gauss-Krüger * |
|----------|--------------------|---------------------|
| North    | 47°45'00" S   | 4,711,533 N         |
| South    | 48°00'06" S   | 4,683,433 N         |
| East     | 69°10'47" W   | 2,486,505 E         |
| West     | 69°30'08" W   | 2,462,505 E         |

| Manifestation of Discovery | File #       | Hectares |
|----------------------------|--------------|----------|
| Julia                      | 409.048/F/98 | 6        |
| Miguel Ángel          | 409.058/F/98 | 3,435    |
| Diana                      | 409.059/F/98 | 2,995    |
| Noemi                      | 409.060/F/98 | 3,013    |
| Rosella                    | 409.061/F/98 | 3,227    |
| Giuliana                   | 409.062/F/98 | 5,100    |
| Benjamin                   | 409.063/F/98 | 3,500    |
| Mariana T.                 | 409.064/F/98 | 3,500    |
| Ailín                 | 409.065/F/98 | 3,500    |
| Mirta Julia                | 409.066/F/98 | 3,500    |
| Ivo Gonzalo                | 409.067/F/98 | 3,500    |
| Maria José            | 409.068/F/68 | 3,500    |
| Matias Augusto             | 409.069/F/98 | 3,500    |
| Sofia Luján           | 409.070/F/98 | 3,500    |
| Lucas Marcelo              | 409.071/F/98 | 3,500    |
| Nicolás Alejandro     | 409.072/F/98 | 3,500    |
|                       | Total        | 52,776   |

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----

----

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|  | · | There is one outcrop of metamorphic basement rocks belonging to the Paleozoic-age La Modesta Formation |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | There are several small inliers of andesitic volcanics belonging to the  Bajo Pobre Formation which underlies the Chon Aike Formation |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The area is dominated by Jurassic-age rhyolitic volcanic units. They belong to Chon Aike Formation. |
|--|--------|-----------------------------------------------------------------------------------------------------|

|  | · | Sedimentary and volcaniclastic units of Roca Blanca and La Matilde Formations are not present in the area, or perhaps have not been recognized or mapped yet |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | About half of the area is covered by thin Quaternary basalt flows |
|--|--------|-------------------------------------------------------------------|

|  | · | The project is crossed by a number of conjugate NNW-SSE and NE-SW sets of strong fault lineaments which are similar to those occurring throughout the Deseado Massif region |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|  | · | To purchase an additional 10% in the JV corporation, Fomicruz must reimburse the Company for 10% of the exploration expenses made by the Company during the exploration period; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase the next 10% interest in the JV corporation, Fomicruz must reimburse the Company for 20% of the exploration expenses made by the Company during the exploration period; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase a final additional 20% interest in the JV Corporation, Fomicruz must reimburse the Company for 25% of the exploration expenses made by the Company during the exploration period; bringing Fomicruz's total ownership interest in the JV Corporation to 49%. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | · | Danilo Silva;    General Manager of Hunt's Argentina Subsidiary – Has served as a Senior Geologist and Project Manager with Yamana Resources and Buenaventura mining companies in his homeland of Argentina, and as general manager for Platero Resources    |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Vicente Sanchez;         Exploration Manager  – Professional Geologist from Argentina who leads all Hunt's Argentinean geologic crews |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Mariano Ibaldi;           Exploration Data Management – Professional Geologist who is meticulous in his documentation and analysis of data collected from all forms of sampling |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Jorge Garay;    Exploration Geologist – Senior Geologist and Project Manager with tremendous exploration experience in Santa Cruz |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Klaus Triebel;              Resource Estimation, Mine Planning & Pit Design – Most recently with Coeur as Manager – Resource Estimation, Mr. Triebel is a Senior Mine Geologist and Engineer |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Martin Fromm;           Consultant – Mine Management – Mining Engineer from Argentina, recently a Project Manager for Patagonia Gold S.A. at their Capa Oeste and Lomada mines |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year of the Agreement |   | Payment toFK Minera S.A. |   | ExplorationExpenditures |   | Ownership |
|-----------------------|--------|--------------------------|--------|-------------------------|--------|-----------|
| First Year (2007)     |   | US$50,000                |   | US$250,000              |   | 0%        |
| Second Year (2008)    |   | US$30,000                |   | US$250,000              |   | 0%        |
| Third Year (2009)     |   | US$50,000                |   | $0                      |   | 51%       |
| Fourth Year (2010)    |   | US$50,000                |   | $0                      |   | 60%       |
| Fifth Year (2011)     |   | US$50,000                |   | $0                      |   | 100%      |

----

----

----

----

| Hole          |   | From (m) |   | To (m) |   | Length (m) |   | Au (g/t) |
|---------------|--------|----------|--------|--------|--------|------------|--------|----------|
| GAT-DDH06 001 |   | 146.6    |   | 147.4  |   | 0.80       |   | 11.70    |
| GAT-DDH06 001 |   | 140.2    |   | 140.8  |   | 0.60       |   | 8.24     |
| GAT-DDH06 001 |   | 142.5    |   | 143.2  |   | 0.70       |   | 6.50     |
| GAT-DDH06 001 |   | 144.0    |   | 145.0  |   | 1.00       |   | 4.78     |
| GAT-DDH06 001 |   | 141.4    |   | 142.0  |   | 0.60       |   | 3.92     |
| GAT-DDH06 001 |   | 145.0    |   | 145.8  |   | 0.80       |   | 3.82     |

----

| Hole          |   | From (m) |   | To (m) |   | Length (m) |   | Au (g/t) |
|---------------|--------|----------|--------|--------|--------|------------|--------|----------|
| GAT-DDH06 001 |   | 139.7    |   | 140.2  |   | 0.50       |   | 3.76     |
| GAT-DDH06-006 |   | 21.0     |   | 22.5   |   | 1.50       |   | 3.64     |
| GAT-DDH06 001 |   | 139.2    |   | 139.7  |   | 0.50       |   | 3.03     |
| GAT-DDH06 001 |   | 143.2    |   | 144.0  |   | 0.80       |   | 2.92     |
| GAT-DDH07-007 |   | 33.0     |   | 33.5   |   | 0.50       |   | 2.61     |
| GAT-DDH06 001 |   | 140.8    |   | 141.4  |   | 0.60       |   | 2.52     |
| GAT-DDH06 001 |   | 137.7    |   | 138.7  |   | 1.00       |   | 2.39     |
| GAT-DDH07-008 |   | 58.6     |   | 59.5   |   | 0.90       |   | 2.33     |
| GAT-DDH06 001 |   | 145.8    |   | 146.6  |   | 0.80       |   | 1.89     |
| GAT-DDH07-008 |   | 55.4     |   | 55.9   |   | 0.50       |   | 1.77     |
| GAT-DDH07-008 |   | 57.2     |   | 58.0   |   | 0.80       |   | 1.34     |
| GAT-DDH07-012 |   | 9.0      |   | 9.5    |   | 0.50       |   | 1.32     |
| GAT-DDH06-003 |   | 36.7     |   | 37.5   |   | 0.76       |   | 1.30     |
| GAT-DDH07-013 |   | 10.0     |   | 11.0   |   | 1.00       |   | 1.29     |
| GAT-DDH07-012 |   | 35.0     |   | 36.0   |   | 1.00       |   | 1.08     |
| GAT-DDH06-004 |   | 67.0     |   | 68.0   |   | 1.00       |   | 1.07     |
| GAT-DDH07-007 |   | 32.0     |   | 32.6   |   | 0.50       |   | 1.07     |
| GAT-DDH06-004 |   | 16.0     |   | 17.0   |   | 1.00       |   | 1.01     |

|  | A. | Operating Results |
|--|----|-------------------|

----

|  | B. | Liquidity and Capital Resources |
|--|----|---------------------------------|

----

|  | C. | Research and Development, Patents and Licenses etc. |
|--|----|-----------------------------------------------------|

|  | D. | Trend Information |
|--|----|-------------------|

|  | E. | Off-Balance Sheet Arrangements |
|--|----|--------------------------------|

|  | F. | Contractual Obligations |
|--|----|-------------------------|

|                                                                                    |   | Payments due by period |    |
|------------------------------------------------------------------------------------|--------|------------------------|---------|
| Contractual obligations                                                            |   | Total                  |    |   | Less than1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than5 years |   |
|                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Long-Term Liabilities Reflected on the Registrant's Balance Sheet under IFRS |   |                   | 250,000 | (1)  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 250,000 |   |
| Total                                                                              |   |                   | 250,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 250,000 |   |

|  | (1) | Contingent liability in connection with a lawsuit filed in Buenos Aires on March 18, 2011 by a former director and accounting consultant against our Company and its subsidiaries for damages in the amount of US$249,041, including wages, alleged bonus payments, interest and penalties. Management considers the lawsuit to be baseless and intends to defend our Company and its subsidiaries to the fullest extent possible (see Note 19(c) to audited consolidated financial statements for the year ended December 31, 2015). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | Safe Harbor |
|--|----|-------------|

|  | A. | Directors and Senior Management |
|--|----|---------------------------------|

----

| Our Board of Directors is responsible for appointing our Company's officers.Name, Province/State andCountry of Residence andPosition with the Company                    | History with Company                                                                                                                                                                                                                                                                                                    | Principal Occupation                                                                                                                                                                                                                                                                                             | AdditionalEmploymentHistory                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| Tim HuntWashington, USAExecutive Chairman,President, Chief Executive Officer and Director· Relationships to other management:Father of Darrick Hunt  | · President, Chief Executive Officer and Director from January 2014 to current· Executive Chairman from April 2010 to current· Director from December 2009 to current· Chief Executive Officer, Executive Chairman and Director of the Company from December 2009 to April 2010 | · President, T.R.A. Industries, Inc., doing business as Huntwood Industries, from 1988 to current· Location:23800 E Appleway AveLiberty Lake, WA 99019· Type of business: Building products manufacturing company                                                                  | · None                                                                                                               |
| Bob LittleWashington, USAChief Financial Officer· Relationships to other management:None                                                                  | · Chief Financial Officer from January 2014 to current                                                                                                                                                                                                                                                        | · Chief Financial Officer of Hunt Mining, from January 2014 to current; Direct Assistant to Tim Hunt, Executive Chairman, from December 2009 to current· Direct Assistant to Tim Hunt,  President, T.R.A. Industries, Inc., doing business as Huntwood Industries, from 2004 to current | · None                                                                                                               |
| Darrick HuntWashington, USADirector· Relationships to other management:Son of Tim Hunt                                                                    | · Director from December 2009 to current                                                                                                                                                                                                                                                                      | · Chief Financial Officer of T.R.A. Industries, Inc., doing business as Huntwood Industries, from January 2006 to current· Location:23800 E Appleway AveLiberty Lake, WA 99019· Type of business: Building products manufacturing company                                          | · Controller of T.R.A. Industries, Inc., 23800 E Appleway Ave, Liberty Lake, WA 99019, from May 1999 to January 2006 |

----

| Our Board of Directors is responsible for appointing our Company's officers.Name, Province/State andCountry of Residence andPosition with the Company | History with Company | Principal Occupation | AdditionalEmploymentHistory |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|----------------------|-----------------------------|

| Alan Chan(1) (2)Alberta, CanadaDirector· Relationships to other management:       None | · Director from June 2008 to current                                                                                                                                           | · President and principal of A.C. Capital Inc. (formerly called A.C. Management Inc.) from March, 1996 to current· Location:Suite 628, 138-4th Ave S.E.Calgary, Alberta, Canada T3E 2J4· Type of business: Financial consulting company | · Founder and Principal of China Pacific Industrial Corp.· Suite 328, 1333-8th St. SW, Calgary, Alberta, Canada T2R 1M6, from July, 1994 to September, 1997                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Alastair Summers(1)Idaho, USADirector· Relationships to other management:None                                             | · Director from April 2014 to current                                                                                                                                               | · Semi-retired mining engineer consultant                                                                                                                                                                                                                   | · Professional Engineer-Mining, former V.P. & GM for Hecla Mining operations in Mexico & Venezuela, Worked for Stillwater, Paramount Gold and others.                                                                                                                                                                   |
| Matthew HughesWashington, USADirector of Cerro Cazador S.A.· Relationships to other management:None                       | · President, Chief Executive Officer and Director of the Company from April 2010 to December 2013· Chief Operating Officer and Director from December, 2009 to April 2010 | · Principally employed by Hunt Mining, from February 2010 to current                                                                                                                                                                                        | · Executive Vice-President and Chief Operating Officer, HuntMountain, 1611 N. Molter Rd #201, Liberty Lake, WA 99019, from December 2005 to February 2010· Chief Geologist of Mundoro Mining Inc., 543 Granville St., Suite 702 Vancouver, B.C., Canada V6C 1X8, a mining company, from October 2003 to December 2005 |

----

| Our Board of Directors is responsible for appointing our Company's officers.Name, Province/State andCountry of Residence andPosition with the Company | History with Company | Principal Occupation | AdditionalEmploymentHistory |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|----------------------|-----------------------------|

| Danilo SilvaPigue, ArgentinaDirector and President ofCerro Cazador S.A.· Relationships to other management:None | · Director of Cerro Cazador S.A. from February, 2006 to current | · President of Cerro Cazador S.A., the Company's wholly-owned subsidiary, from February 2006 to current· Location:  Buenos Aires, Argentina· Type of business: Mining company | · Vice President for Hidefield Argentina S.A.,  Argentina, from 2005 to 2010· Consultant for Cia De Minas Buenaventura Argentina, Argentina, from 2004 to 2007· Consultant for J.V. Yamana – Buenaventura S.A.A., Argentina, from 2002 to 2004· Consultant for Yamana Resources from 2001 to 2002· General Manager for Platero Resources, Argentina, from 2000 to 2001· Project Manager for Compania Minera Polimet S.A., Argentina, from 1995 to 1999 |
|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (1) | Member of the Audit Committee. |
|--|-----|--------------------------------|

|  | (2) | Member of the Compensation Committee. |
|--|-----|---------------------------------------|

|  | B. | Compensation |
|--|----|--------------|

----

| Director                | Year                       | Fees earned($) | Share-basedAwards($) | Option-basedawards(1)($) | Non-Equity IncentivePlan Compensation | PensionValue($) | All OtherCompensation($) | TotalCompensation($) |
|-------------------------|----------------------------|----------------|----------------------|--------------------------|---------------------------------------|-----------------|--------------------------|----------------------|
| AnnualIncentive Plan($) | Long-termIncentive Plan($) |
|                    |                       |           |                 |                     |                                  |            |                     |                 |   |
| Darrick Hunt       | 2015                       | Nil            | Nil                  | Nil                      | Nil                                   | Nil             | Nil                      | Nil                  | Nil |
|                    |                       |           |                 |                     |                                  |            |                     |                 |
|                    |                       |           |                 |                     |                                  |            |                     |                 |
| Alan Chan          | 2015                       | Nil            | Nil                  | Nil                      | Nil                                   | Nil             | Nil                      | Nil                  | Nil |
|                    |                       |           |                 |                     |                                  |            |                     |                 |
|                    |                       |           |                 |                     |                                  |            |                     |                 |
| Alastair Summers   | 2015                       | Nil            | Nil                  | Nil                      | Nil                                   | Nil             | Nil                      | Nil                  | Nil |
|                    |                       |           |                 |                     |                                  |            |                     |                 |
|                    |                       |           |                 |                     |                                  |            |                     |                 |

| Named ExecutiveOfficer andPrincipal Position                             | Year                       | Salary($) | Share-basedAwards($) | Option-basedawards($) | Non-Equity IncentivePlan Compensation | PensionValue($) | All OtherCompensation($) | TotalCompensation($) |
|--------------------------------------------------------------------------|----------------------------|-----------|----------------------|-----------------------|---------------------------------------|-----------------|--------------------------|----------------------|
| AnnualIncentive Plan($)                                                  | Long-termIncentive Plan($) |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |   |
| Tim Hunt(3)Executive Chairman,President and ChiefExecutive Officer  | 2015                       | 64,151    | Nil                  | Nil                   | Nil                                   | Nil             | Nil                      | Nil                  | 64,151 |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |
| Bob LittleChief Financial Officer and Secretary                     | 2015                       | 144,728   | Nil                  | Nil                   | Nil                                   | Nil             | Nil                      | Nil                  | 144,728 |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |
| Danilo SilvaPresident, Cerro CazadorS.A                             | 2015                       | 142,459   | Nil                  | Nil                   | Nil                                   | Nil             | Nil                      | Nil                  | 113,436 |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |
|                                                                     |                       |      |                 |                  |                                  |            |                     |                 |

| Director or Executive Officer                                        | Option–based Awards | Share-based Awards  |
|----------------------------------------------------------------------|---------------------------|--------------------------|
| Number of securities underlying unexercised options (#)              | Option exercise price ($) | Option expiration date   | Value of unexercised in-the-money options($)(1) | Number of shares or units of shares that have not vested(#) | Market or payout value of share-based awards that have not vested ($) | Market or payout value vested share-based awards not paid out or distributed($) |
| Tim Hunt(4)Executive Chairman, President and Chief Executive Officer | 10,000100,000             | $1.00$1.00               | 04/23/201804/04/2019 | NilNil | NilNil | NilNil | NilNil |
| Bob LittleChief Financial Officer and Secretary                      | 35,000                    | $1.00                    | 04/04/2019 | Nil | Nil | Nil | Nil |
| Danilo SilvaPresident, Cerro Cazador S.A.                            | 15,000  5,000   | $3.00$1.00               | 02/27/201704/23/2018 | NilNil | NilNil | NilNil | NilNil |

|  | Note: | (1) Value is calculated based on the difference between the closing market price of the Corporation's common shares on the TSXV on December 31, 2015, which was $0.02, and the exercise price of the options, multiplied by the number of options. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | C. | Board Practices |
|--|----|-----------------|

----

|  | D. | Employees |
|--|----|-----------|

|  | E. | Share Ownership |
|--|----|-----------------|

| Name and Municipality of Residence                                                                    | Common Shares of the CompanyBeneficially Owned, orControlled or Directed,Directly or Indirectly(1) | Percentage of Common SharesBeneficially Owned, orControlled or Directed,Directly or Indirectly(2) |
|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| Tim HuntGreenacres,Washington, USAExecutive Chairman, Chief Executive Officer, President and Director | 104,574,378(3)                                                                                     | 94.99%                                                                                            |
| Bob LittleWashington, USAChief Financial Officer and Secretary                                        | 289,209(4)                                                                                         | *                                                                                                 |
| Darrick Hunt, CPAWashington, USADirector                                                              | 280,742(5)                                                                                    | *                                                                                                 |
| Alan P. ChanCalgary, Alberta, CanadaDirector                                                          | 52,753(6)                                                                                          | *                                                                                                 |
| Alastair SummersIdaho, USADirector                                                                    | 26,227(7)                                                                                          | *                                                                                                 |
| Danilo SilvaPigue, ArgentinaDirector;President of CCSA                                                | 20,000(8)                                                                                          | *                                                                                                 |
| Directors and Executive Officers as a Group(Six People)                                               | 105,243,309(9)                                                                                     | 95.60%                                                                                            |

|  | (1) | Under Rule 13d–3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares.  Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares).  In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided.  In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.  As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person's actual ownership or voting power with respect to the number of common shares actually outstanding on December 31, 2015. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (2) | For each person and group included in the table, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group as described above by the sum of the 62,150,298 common shares that were outstanding as of April 30, 2016 and the number of common shares that such person or group had the right to acquire on or within 60 days of that date, including, but not limited to, upon the exercise of stock options and purchase warrants. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Consists of 54,180,554 common shares held by Hunt Family Limited Partnership, 2,783,824 common shares directly held by Mr. Tim Hunt, 10,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire on April 23, 2018, 100,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire on April 4, 2019, 22,500,000 common shares issuable upon exercise of purchase warrants at an exercise price of $0.05 per share set to expire on July 20, 2020, and 25,000,000 common shares issuable upon exercise of purchase warrants at an exercise price of $0.02 per share set to expire on October 13, 2020. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | Consists of 254,209 common shares held directly by Mr. Bob Little and 35,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire on April 4, 2019. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (5) | Consists of 200,742 common shares held directly by Mr. Darrick Hunt, 5,000 common shares issuable upon exercise of stock options at an exercise price of $3.00 per share set to expire on February 27, 2017 and 75,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire on April 4, 2019. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (6) | Consists of 23,000 common shares held directly by Mr. Alan Chan, 19,753 common shares issuable upon exercise of stock options at an exercise price of $3.10 per share set to expire on January 27, 2016, 5,000 common shares issuable upon exercise of stock options at an exercise price of $3.00 per share set to expire on February 27, 2017, and 50,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 set to expire on April 4, 2019. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (7) | Consists of 1,227 common shares held directly by Mr. Alastair Summers, and 25,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 set to expire on April 4, 2019. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (8) | Consists of 15,000 common shares issuable upon exercise of stock options at an exercise price of $3.00 per share set to expire on February 27, 2017 and 5,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire April 23, 2018. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (9) | Includes 344,753 common shares issuable upon exercise of the stock options and 47,500,000 common shares issuable upon the exercise of the purchase warrants described in the foregoing notes. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | Major Shareholders |
|--|----|--------------------|

----

| Name and Municipality of Residence1                                          | Number of Common SharesBeneficially Owned, orControlled or Directed,Directly or Indirectly(1) | Percentage of Common SharesBeneficially Owned, orControlled or Directed,Directly or Indirectly(2) |
|------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|  Hunt Family Limited Partnership (3)Liberty Lake, Washington, USA  | 54,180,554(4)                                                                                 | 49.22%                                                                                            |
| Tim HuntLiberty Lake, Washington, USA                                   | 104,574,378(4)                                                                                | 94.99%                                                                                            |

|  | (1) | Under Rule 13d–3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares.  Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares).  In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided.  In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.  As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect what the person's actual ownership or voting power will be with respect to the number of common shares actually outstanding immediately after the completion of the offering contemplated by this prospectus. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | For each person included in the table, percentage ownership is calculated by dividing the number of shares beneficially owned by such person as described above by the sum of the 62,150,298 common shares that were outstanding as of April 30, 2016 and the number of common shares that such person had the right to acquire on or within 60 days of that date, including, but not limited to, upon the exercise of stock options and purchase warrants. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Hunt Family Limited Partnership is an entity controlled by Tim Hunt and his spouse Resa Hunt.  Accordingly, Mr. Hunt is deemed to be the beneficial owner of the 54,180,554 common shares held by Hunt Family Limited Partnership.  Mr. Hunt is our Company's Executive Chairman, Chief Executive Officer, President, and a Director. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | Consists of 54,180,554 common shares held by Hunt Family Limited Partnership, 2,783,824 common shares directly held by Mr. Tim Hunt, 10,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire on April 23, 2018, 100,000 common shares issuable upon exercise of stock options at an exercise price of $1.00 per share set to expire on April 4, 2019, 22,500,000 common shares issuable upon exercise of purchase warrants at an exercise price of $0.05 per share set to expire on July 20, 2020, and 25,000,000 common shares issuable upon exercise of purchase warrants at an exercise price of $0.02 per share set to expire on October 13, 2020. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | Related Party Transactions |
|--|----|----------------------------|

----

|                     |   |               |    |   |               |   |
|--------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                     |   | Years ended        |    |
|                     |   | December 31,  2015 |    |   | December 31,  2014 |   |
| Salaries and benefits    |   |               | 208,879 |   |               |   | 197,188 |   |
| Consulting fees          |   |               | 182,121 |   |               |   | 161,734 |   |
| Share based compensation |   |               | 1,371   |   |               |   | 53,400 |   |
|                     |   | $                  | 392,371 |   |               | $      | 412,322 |   |

|  | C. | Interests of Experts and Counsel |
|--|----|----------------------------------|

----

|  | A. | Consolidated Statements and Other Financial Information |
|--|----|---------------------------------------------------------|

|  | B. | Significant Changes |
|--|----|---------------------|

|  | A. | Offer and Listing Details |
|--|----|---------------------------|

| Fiscal Year ended | TSXV (CAD$) |
|-------------------|-------------|
| December 31       | High        | Low |
| 2015              | $0.02       | $0.02 |
| 2014              | $0.05       | $0.01 |
| 2013              | $0.16       | $0.01 |
| 2012              | $0.36       | $0.07 |
| 2011              | $0.67       | $0.19 |
| 2010              | $0.65       | $0.28 |

|               | TSXV (CAD$) |
|--------------------|-------------|
| Period Ended       | High        | Low |
| March 31, 2016     | $0.08       | $0.02 |
| December 31, 2015  | $0.02       | $0.02 |
| September 30, 2015 | $0.06       | $0.02 |
| June 30, 2015      | $0.05       | $0.02 |
| March 31, 2015     | $0.04       | $0.01 |
| December 31, 2014  | $0.03       | $0.01 |
| September 30, 2014 | $0.04       | $0.03 |
| June 30, 2014      | $0.04       | $0.02 |
| March 31, 2014     | $0.05       | $0.02 |

|              | TSXV (CAD$)  |
|-------------------|-------------------|
| Period            | High              | Low |
| March 2016        | $0.08             | $0.02 |
| February 2016     | $0.02             | $0.02 |
| January 2016      | $0.02             | $0.02 |
| December 31, 2015 | $0.02             | $0.02 |
| November 30, 2015 | $0.02             | $0.02 |
| October 31, 2015  | $0.02             | $0.02 |

----

|  | B. | Plan of Distribution |
|--|----|----------------------|

|  | C. | Markets |
|--|----|---------|

|  | D. | Selling Shareholders |
|--|----|----------------------|

|  | E. | Dilution |
|--|----|----------|

|  | F. | Expenses of the Issue |
|--|----|-----------------------|

|  | A. | Share Capital |
|--|----|---------------|

|  | B. | Memorandum and Articles of Association |
|--|----|----------------------------------------|

----

|  | · | borrow money upon the credit of our Company; |
|--|--------|----------------------------------------------|

|  | · | issue, sell or pledge bonds, debentures or other evidences of indebtedness and provide guarantees; and |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | mortgage, pledge or otherwise create an interest or charge in all or any currently owned or subsequently acquired property of our Company, to secure payment of a debt or performance of any other obligation of our Company. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the directors may by resolution issue shares of our Company at such times, to such persons and, subject to the Business Corporations Act (British Columbia), for such consideration as the directors may from time to time determine; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the directors may, by resolution, make, amend or repeal any by-laws that regulate the business or affairs of our Company (provided that, under the Business Corporations Act (British Columbia), the directors must submit a bylaw, or an amendment or a repeal of a by-law to the shareholders at the next meeting of shareholders, and the shareholders may, by ordinary resolution, confirm, reject or amend the by-law amendment or repeal); |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the directors may designate the officer of our Company, appoint as officers individuals of full capacity who may but need not be directors of our Company, specify their duties, and except where delegation is prohibited by the Business Corporations Act (British Columbia), delegate to them power to manage the business and affairs of our Company; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the directors may fix the remuneration of the directors and the officers and employees of the Company. |
|--|--------|--------------------------------------------------------------------------------------------------------|

----

|  | · | to vote at meetings of shareholders, except meetings at which only holders of a specified class of shares are entitled to vote; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------|

|  | · | subject to the rights, privileges, restrictions and conditions attaching to any other class of shares of our Company, to share equally in the remaining property of our Company on liquidation, dissolution or winding-up of our Company; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | subject to the rights of the preferred shares, the common shares are entitled to receive dividends if, as, and when declared by the Board of Directors. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | our preferred shares may be issued in one or more series; |
|--|--------|-----------------------------------------------------------|

|  | · | our directors may fix the number of shares which is to comprise each series of preferred shares, and the designation, rights, privileges, restrictions and conditions attaching to each series; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the preferred shares of each series shall, with respect to the payment of dividends and the distribution of assets or return of capital in the event of liquidation, dissolution or winding-up of our Company, rank in parity with the preferred shares of every other series, and be entitled to preference over the common shares; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the preferred shares of any series may also be given such other preferences, not inconsistent with our Articles, over the common shares; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | if any cumulative dividends or amounts payable on the return of capital in respect of a series of preferred shares are not paid in full, all series of preferred shares shall participate rateably in respect of cumulative dividends and return of capital; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | unless the directors otherwise determine in the Articles of Amendment designating a series of preferred shares, the holder of preferred shares shall not be entitled to receive notice of or vote at any meeting of our Company's shareholders, except as otherwise specifically provided in the Business Corporations Act (British Columbia). |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the issue price of the Series 1 Preferred Shares is $0.20 per share; |
|--|--------|----------------------------------------------------------------------|

|  | · | except as otherwise specifically provided in the Business Corporations Act (British Columbia), the holders of the Series 1 Preferred Shares are not entitled to receive notice of or vote at any meeting of our Company's shareholders; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Series 1 Preferred Shares are not transferable without the consent of the TSXV; |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | the Series 1 Preferred Shares are not redeemable by our Company or by the holder without the consent of the TSXV; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | the holders of the Series 1 Preferred Shares have the right to convert the Series 1 Preferred Shares into common shares on the basis of one Series 1 Preferred Share for one common share, subject to adjustment in accordance with the Articles, provided that such conversion shall not result in the Public Float (as defined in the policies of the TSXV) being less than 20% of the total issued common shares of our Company; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | upon the distribution of assets or return of capital in the event of the liquidation, dissolution or winding-up of our Company, the holders of the Series 1 Preferred Shares shall be entitled to receive in priority in any distribution to the holders of the common shares and any other shares of our Company ranking junior to the Series 1 Preferred Shares, an amount equal to $0.001 per Series 1 Preferred Share, and upon such payment, the holders of the Series 1 Preferred Shares shall be entitled to receive the remaining property of the Company pro-rata with the holders of the common shares. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | C. | Material Contracts |
|--|----|--------------------|

|  | D. | Exchange Controls |
|--|----|-------------------|

|  | E. | Taxation |
|--|----|----------|

----

----

|  | · | an individual who is a citizen or resident of the U.S.; |
|--|--------|---------------------------------------------------------|

|  | · | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the U.S., any state thereof or the District of Columbia; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | an estate whose income is subject to U.S. federal income taxation regardless of its source; or |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | a trust that (1) is subject to the primary supervision of a court within the U.S. and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

|  | F. | Dividends and Paying Agents |
|--|----|-----------------------------|

|  | G. | Statements of Experts |
|--|----|-----------------------|

|  | H. | Documents on Display |
|--|----|----------------------|

|  | I. | Subsidiary Information |
|--|----|------------------------|

----

----

|               |   | Year ended December 31, |   |
|--------------------|--------|-------------------------|--------|
|               |   | 2015                    |   |   | 2014 |   |
| Audit fees         |   | $                       | 25,500 |   |   | $ | 67,000 |   |
| Audit-related fees |   | Nil                     |   |   | Nil |   |
| Tax fees(1)        |   |                    | 3,570  |   |   |   | 28,000 |   |
| All other fees(2)  |   |                    | 23,808 |   |   |   | 6,000 |   |
| Total              |   | $                       | 52,898 |   |   | $ | 101,000 |   |

----

|  | (A) | MNP advised the Company that the internal controls necessary for the Company to develop reliable financial statements did not exist; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | (B) | MNP advised the Company that information came to MNP's attention that has led it to no longer be able to rely on management's representations, or that had made it unwilling to be associated with the consolidated financial statements prepared by management; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (C) | MNP advised the Company of the need to expand significantly the scope of its audit, or that information came to MNP's attention during the Company's two most recent fiscal years and any subsequent interim period, that if further investigated may: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | materially impact the fairness or reliability of either: a previously issued audit report or the underlying consolidated financial statements, or the consolidated financial statements issued or to be issued covering the fiscal period(s) subsequent to the date of the most recent consolidated financial statements covered by an audit report (including information that may prevent it from rendering an unqualified audit report on those consolidated financial statements); or |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | cause it to be unwilling to rely on management's representations or to be associated with the Company's consolidated financial statements; and due to MNP's resignation (due to audit scope limitations or otherwise), or for any other reason, MNP did not so expand the scope of its audit or conduct such further investigation; or |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (D) | MNP advised the Company that information came to MNP's attention that it had concluded materially impacts the fairness or reliability of either: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (i) | a previously issued audit report or the underlying consolidated financial statements, or |
|--|-----|------------------------------------------------------------------------------------------|

|  | (ii) | the consolidated financial statements issued or to be issued covering the fiscal period(s) subsequent to the date of the most recent consolidated financial statements covered by an audit report (including information that, unless resolved to MNP's satisfaction, would prevent it from rendering an unqualified audit report on those consolidated financial statements); and due to MNP's resignation (due to audit scope limitations or otherwise), or for any other reason, the issue had not been resolved to MNP's satisfaction prior to its resignation. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 1(1) | Articles of Hunt Mining Corp. |
|--|------|-------------------------------|

|  | 8(2) | List of Subsidiaries |
|--|------|----------------------|

|  | 12.1 | Certification of the Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--|------|------------------------------------------------------------------------------------------------------------------|

|  | 12.2 | Certification of the Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--|------|------------------------------------------------------------------------------------------------------------------|

|  | 13.1 | Certification of the Principal Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--|------|----------------------------------------------------------------------------------------------------------------------|

|  | 13.2 | Certification of the Principal Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--|------|----------------------------------------------------------------------------------------------------------------------|

|  | 16.1(3) | Letter from MNP LLP to the US Securities and Exchange Commission dated July 31, 2015 |
|--|---------|--------------------------------------------------------------------------------------|

|  | (1) | Incorporated by reference to Exhibit 3.1 to Hunt Mining Corp.'s registration statement on Form F-1/A-3, filed with the SEC on March 31, 2014. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | See Item 4.C., Organizational Structure, herein. |
|--|-----|--------------------------------------------------|

|  | (3) | Previously filed as an exhibit to Hunt Mining Corp.'s annual report on Form 20-F, filed with the SEC on May 1, 2015. |
|--|-----|----------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| Years ended December 31, 2015 and 2014                    |   | Page   |
|-----------------------------------------------------------|--------|--------|
|                                                      |   |   |
| Consolidated Statements of Financial Position             |   | 67     |
|                                                      |   |   |
| Consolidated Statements of Loss and Comprehensive Loss    |   | 68     |
|                                                      |   |   |
| Consolidated Statement of Changes in Shareholders' Equity |   | 69     |
|                                                      |   |   |
| Consolidated Statements of Cash Flows                     |   | 70     |
|                                                      |   |   |
| Notes to the Consolidated Financial Statements            |   | 71     |

----

|                                                                                    |   |   |   |   |         |   |        |         |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------|--------|-------------|--------------|--------|
| Hunt Mining Corp.                                                                       |   |   |   |   |         |   |        |         |   |
| An Exploration Stage Enterprise                                                         |   |   |   |   |         |   |        |         |   |
| Expressed in Canadian Dollars                                                           |   |   |   |   |         |   |        |         |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |
| Consolidated Statements of Financial Position                                           |   |   |   |   |         |   |        |         |   |
|                                                                                    |   |   |   |   | December 31, |   |        | December 31, |   |
|                                                                                    |   | NOTE   |   |   | 2015         |   |        | 2014         |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |
| CURRENT ASSETS:                                                                         |   |   |   |   |         |   |        |         |   |
|     Cash and equivalents                                                 |   |   | 7      |   |         | $      | 45,386      |         |   | $ | 115,246 |   |
|     Accounts receivable                                                  |   |   |   |   |         |   | 119,402     |         |   |   | 69,554 |   |
|     Prepaid expenses                                                     |   |   |   |   |         |   | 9,064       |         |   |   | 13,470 |   |
|         Total Current Assets                         |   |   |   |   |         |   | 173,852     |         |   |   | 198,270 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| NON-CURRENT ASSETS:                                                                     |   |   |   |   |         |   |        |         |   |   |   |   |
|     Property and equipment                                               |   |   | 9      |   |         |   | 1,001,048   |         |   |   | 943,241 |   |
|     Performance bond                                                     |   |   | 12     |   |         |   | 489,620     |         |   |   | 336,850 |   |
|     VAT receivable, net of discount                                      |   |   | 13     |   |         |   | 868,809     |         |   |   | 557,480 |   |
|     Other deposit                                                        |   |   | 20(c)  |        |         |   | 94,998      |         |   |   | 95,964 |   |
|     Minimal presumed income tax receivable                               |   |   | 16     |   |         |   | 390,919     |         |   |   | 394,902 |     |
|         Total Non-Current Assets:                    |   |   |   |   |         |   | 2,845,394   |         |   |   | 2,328,437 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| TOTAL ASSETS:                                                                           |   |   |   |   |         | $      | 3,019,246   |         |   | $ | 2,526,707 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| CURRENT LIABILITIES:                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
|     Bank indebtedness                                                    |   |   |   |   |         | $      | 40,775      |         |   | $ | - |   |
|     Accounts payable and accrued liabilities                             |   |   |   |   |         |   | 2,094,175   |         |   |   | 729,691 |   |
|     Taxes payable                                                        |   |   |   |   |         |   | 113,363     |         |   |   | 124,307 |   |
|        Total Current Liabilities:                         |   |   |   |   |         |   | 2,248,313   |         |   |   | 853,998 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| NON-CURRENT LIABILITIES:                                                                |   |   |   |   |         |   |        |         |   |   |   |   |
|     Loan payable                                                         |   |   | 15     |   |         |   | -           |         |   |   | 82,069 |   |
|     Provision                                                            |   |   | 20(c)  |        |         |   | 250,000     |         |   |   | 125,000 |   |
|        Total Non-Current Liabilities:                     |   |   |   |   |         |   | 250,000     |         |   |   | 207,069 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| TOTAL LIABILITIES:                                                                      |   |   |   |   |         | $      | 2,498,313   |         |   | $ | 1,061,067 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                   |   |   |   |   |         |   |        |         |   |   |   |   |
|     Share capital                                                        |   |   | 10     |   |         | $      | 26,987,416  |         |   | $ | 26,392,416 |   |
|     Contributed surplus                                                  |   |   | 11     |   |         |   | 9,578,881   |         |   |   | 9,416,187 |   |
|     Warrants                                                             |   |   | 10     |   |         |   | 1,030,000   |         |   |   | 160,725 |   |
|     Deficit                                                              |   |   |   |   |         |   | (37,282,555 | )            |   |   | (34,478,437 | ) |
|     Accumulated other comprehensive income (loss)                        |   |   |   |   |         |   | 207,191     |         |   |   | (25,251 | ) |
|         Total Shareholders' Equity:                  |   |   |   |   |         | $      | 520,933     |         |   | $ | 1,465,640 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY:                                             |   |   |   |   |         | $      | 3,019,246   |         |   | $ | 2,526,707 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Going Concern (Note 3)                                                                  |   |   |   |   |         |   |        |         |   |   |   |   |
| Subsequent Event (Note 22)                                                              |   |   |   |   |         |   |        |         |   |   |   |   |
| Commitments and Provision (Note 20)                                                     |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Approved on behalf of the Board of Directors                                            |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Signed "Tim Hunt"                                                                       |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Signed "Alan Chan"                                                                      |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |   |   |         |

----

|                                                                                    |   |   |   |   |                     |    |       |   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|---------|------------|--------|--------|
| Hunt Mining Corp.                                                                       |   |   |   |   |                     |    |       |   |   |
| An Exploration Stage Enterprise                                                         |   |   |   |   |                     |    |       |   |   |
| Expressed in Canadian Dollars                                                           |   |   |   |   |                     |    |       |   |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |
| Consolidated Statements of Loss and Comprehensive Loss                                  |   |   |   |   |                     |    |       |   |   |
|                                                                                    |   |   |   |   | Years ended December 31, |    |
|                                                                                    |   | NOTE   |   |   | 2015                     |    |       | 2014   |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |
| OPERATING EXPENSES:                                                                     |   |   |   |   |                     |    |       |   |   |
| Professional fees                                                                       |   |   |   |   | $                        | 379,330 |       |   | $      | 393,221 |   |
| Exploration expenses                                                                    |   |   |   |   |                     | 427,468 |       |   |   | 1,084,971 |   |
| Travel expenses                                                                         |   |   |   |   |                     | 190,368 |       |   |   | 189,317 |   |
| Administrative and office expenses                                                      |   |   |   |   |                     | 446,557 |       |   |   | 294,781 |   |
| Payroll expenses                                                                        |   |   |   |   |                     | 663,228 |       |   |   | 744,618 |   |
| Share based compensation                                                                |   |   | 11     |   |                     |    | 1,969      |   |   |   | 57,970 |   |
| Interest expense and banking charges                                                    |   |   |   |   |                     |    | 53,716     |   |   |   | 55,652 |   |
| Depreciation                                                                            |   |   | 9      |   |                     |    | 112,114    |   |   |   | 256,742 |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| Total operating expenses:                                                               |   |   |   |   |                     |    | 3,077,272  |   |   |   | 3,077,272 |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| OTHER INCOME/(EXPENSE):                                                                 |   |   |   |   |                     |    |       |   |   |   |   |   |
| Interest income                                                                         |   |   |   |   |                     |    | 13,495     |   |   |   | 18,456 |   |
| Miscellaneous expense                                                                   |   |   | 8      |   |                     |    | 8,881      |   |   |   | (4,036 | ) |
| VAT discount and accretion                                                              |   |   | 13     |   |                     |    | 265,964    |   |   |   | (23,537 | ) |
| Loss on foreign exchange                                                                |   |   |   |   |                     |    | (604,452   | )      |   |   | (143,294 | ) |
| Contingent liability accrual                                                            |   |   | 20     | (c)    |                     |    | (125,000   | )      |   |   | - |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| Total other income:/(expense)                                                           |   |   |   |   |                     |    | (441,112   | )      |   |   | (152,411 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| LOSS - before income tax                                                                |   |   |   |   |                     |    | (2,715,862 | )      |   |   | (3,229,683 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| Income taxes                                                                            |   |   | 15     |   |                     |    | (88,256    | )      |   |   | (72,471 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| NET LOSS FOR THE YEAR                                                                   |   |   |   |   |                     | $       | (2,804,118 | )      |   | $ | (3,302,154 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| Other comprehensive income (loss), net of tax:                                          |   |   |   |   |                     |    |       |   |   |   |   |   |
|     Items that may be reclassified subsequently to net loss         |   |   |   |   |                     |    |       |   |   |   |   |   |
| Change in value of performance bond                                                     |   |   | 12     |   |                     |    | 152,770    |   |   |   | (3,333 | ) |
| Translation of foreign operations into Canadian dollar presentation                     |   |   |   |   |                     |    | 79,672     |   |   |   | (63,324 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| TOTAL NET LOSS AND COMPREHENSIVE LOSS FOR THE YEAR:                                     |   |   |   |   |                     | $       | (2,571,676 | )      |   | $ | (3,368,811 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| Weighted average shares outstanding - basic and diluted                                 |   |   |   |   |                     |    | 76,226,385 |   |   |   | 125,398,933 |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| NET LOSS PER SHARE - BASIC AND DILUTED:                                                 |   |   |   |   |                     | $       | (0.04      | )      |   | $ | (0.03 | ) |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |    |       |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |   |   |                     |    |       |   |   |

----

|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |
|-----------------------------------------------------------------------------------------|--------|---------------|------------|--------|---------|--------|-------------|---------------|--------|--------|-------------|--------|--------|----------|-----------|--------|------------------|--------|-----------|--------|--------|
| Hunt Mining Corp.                                                                       |
| An Exploration Stage Enterprise                                                         |
| Expressed in Canadian Dollars                                                           |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |
| Consolidated Statement of Changes in Shareholders' Equity                               |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |
|                                                                                    |   |          |       |   |    |   |        | Accumulated   |   |   |        |   |   |     |      |   |             |   |      |   |   |
|                                                                                    |   |          |       |   |    |   |        | Other         |   |   |        |   |   |     |      |   |             |   |      |   |   |
|                                                                                    |   |          |       |   |    |   |        | Comprehensive |   |   | Contributed |   |   |     |      |   |             |   |      |   |   |
|                                                                                    |   | Share Capital |       |   | Deficit |   |        | Loss          |   |   | Surplus     |   |   | Warrants |      |   | Preferred Shares |   |      | Total  |   |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |
| Balance - January 1, 2014                                                               |   | $             | 26,062,481 |   |    | $      | (31,176,283 | )             |   | $      | 41,406      |   |   | $        | 9,358,217 |   |             | $      | -         |   |   | $ | - |   |   | $ | 4,285,821 |   |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                |   |          | -          |   |    |   | (3,302,154  | )             |   |   | -           |   |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | (3,302,154 | ) |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                |   |          | -          |   |    |   | -           |          |   |   | (66,657     | )      |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | (66,657 | ) |
| Share capital issued                                                                    |   |          | 500,000    |   |    |   | -           |          |   |   | -           |   |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | 500,000 |   |
| Share issue costs and filing statement fees                                             |   |          | (9,340     | )      |    |   | -           |          |   |   | -           |   |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | (9,340 | ) |
| Portion of units attributable to warrants issued                                        |   |          | (160,725   | )      |    |   | -           |          |   |   | -           |   |   |     | -         |   |             |   | 160,725   |   |   |   | - |   |   |   | - |   |
| Share based compensation                                                                |   |          | -          |   |    |   | -           |          |   |   | -           |   |   |     | 57,970    |   |             |   | -         |   |   |   | - |   |   |   | 57,970 |   |
| Balance - December 31, 2014                                                             |   | $             | 26,392,416 |   |    | $      | (34,478,437 | )             |   | $      | (25,251     | )      |   | $        | 9,416,187 |   |             | $      | 160,725   |   |   | $ | - |   |   | $ | 1,465,640 |   |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
| Balance - January 1, 2015                                                               |   | $             | 26,392,416 |   |    | $      | (34,478,437 | )             |   | $      | (25,251     | )      |   | $        | 9,416,187 |   |             | $      | 160,725   |   |   | $ | - |   |   | $ | 1,465,640 |   |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                |   |          | -          |   |    |   | (2,804,118  | )             |   |   | -           |   |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | (3,302,154 | ) |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                |   |          | -          |   |    |   | -           |          |   |   | 232,442     |   |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | (66,657 | ) |
| Share capital issued                                                                    |   |          | 1,625,000  |   |    |   | -           |          |   |   | -           |   |   |     | -         |   |             |   | -         |   |   |   | - |   |   |   | 500,000 |   |
| Expiration of warrants                                                                  |   |          | -          |   |    |   | -           |          |   |   | -           |   |   |     | 160,725   |   |             |   | (160,725  | )      |   |   | - |   |   |   | - |   |
| Portion of units attributable to warrants issued                                        |   |          | (1,030,000 | )      |    |   | -           |          |   |   | -           |   |   |     | -         |   |             |   | 1,030,000 |   |   |   | - |   |   |   | - |   |
| Share based compensation                                                                |   |          | -          |   |    |   | -           |          |   |   | -           |   |   |     | 1,969     |   |             |   | -         |   |   |   | - |   |   |   | 1,969 |   |
| Balance - December 31, 2015                                                             |   | $             | 26,987,416 |   |    | $      | (37,282,555 | )             |   | $      | 207,191     |   |   | $        | 9,578,881 |   |             | $      | 1,030,000 |   |   | $ | - |   |   | $ | 520,933 |   |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |   |      |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |             |

----

|                                                                                                       |   |   |   |   |                     |       |       |   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|------------|------------|--------|--------|
| Hunt Mining Corp.                                                                                          |   |   |   |   |                     |       |       |   |   |
| An Exploration Stage Enterprise                                                                            |   |   |   |   |                     |       |       |   |   |
| Expressed in Canadian Dollars                                                                              |   |   |   |   |                     |       |       |   |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |
| Consolidated Statements of Cash Flows                                                                      |   |   |   |   |                     |       |       |   |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |
|                                                                                                       |   |   |   |   | Years ended December 31, |       |
|                                                                                                       |   | NOTE   |   |   | 2015                     |       |       | 2014   |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                      |   |   |   |   |                     |       |       |   |   |
|   Net loss                                                                                            |   |   |   |   | $                        | (2,804,118 | )          |   | $      | (3,302,154 | ) |
|     Items not affecting cash                                                                |   |   |   |   |                     |       |       |   |   |   |   |
|         Depreciation                                                    |   |   | 9      |   |                     |       | 112,114    |   |   |   | 256,742 |   |
|         Gain of foreign exchange                                        |   |   |   |   |                     |       | (105,552   | )      |   |   | (155,622 | ) |
|         Share based compensation                                        |   |   | 11     |   |                     |       | 1,969      |   |   |   | 57,970 |   |
|         Realized gain on marketable securities                          |   |   | 8      |   |                     |       | (8,952     | )      |   |   | (7,619 | ) |
|         Loan interest                                                   |   |   |   |   |                     |       | -          |   |   |   | 680 |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
|     Net change in non-cash working capital items                                            |   |   |   |   |                     |       |       |   |   |   |   |   |
|         Decrease (increase) in minimum presumed income tax receivable   |   |   |   |   |                     |       | 73,856     |   |   |   | (676 | ) |
|         Decrease in VAT receivable                                      |   |   |   |   |                     |       | (187,871   | )      |   |   | 37,096 |   |
|         Decrease (increase) in other deposit                            |   |   |   |   |                     |       | 17,948     |   |   |   | (8,446 | ) |
|         Decrease (increase) in accounts receivable                      |   |   |   |   |                     |       | (34,658    | )      |   |   | 58,177 |   |
|         Decrease increase in prepaid expenses                           |   |   |   |   |                     |       | 5,451      |   |   |   | 13,522 |   |
|         Increase (decrease) in accounts payable and accrued liabilities |   |   |   |   |                     |       | 1,185,828  |   |   |   | 495,900 |   |
|         Decrease in taxes payable                                       |   |   |   |   |                     |       | (32,180    | )      |   |   | (209,845 | ) |
|         Increase in provision                                           |   |   |   |   |                     |       | 125,000    |   |   |   | - |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| Net cash used in operating activities                                                                      |   |   |   |   |                     |       | (1,651,165 | )      |   |   | (2,764,275 | ) |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                      |   |   |   |   |                     |       |       |   |   |   |   |   |
|     Purchases of property and equipment                                                     |   |   | 9      |   |                     |       | -          |   |   |   | (5,281 | ) |
|     Purchases of marketable securities                                                      |   |   |   |   |                     |       | (606,791   | )      |   |   | (1,745,182 | ) |
|     Redemption of marketable securities                                                     |   |   |   |   |                     |       | 615,743    |   |   |   | 1,737,563 |   |
| Net cash used in investing activities                                                                      |   |   |   |   |                     |       | 8,952      |   |   |   | (12,900 | ) |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                      |   |   |   |   |                     |       |       |   |   |   |   |   |
|     Proceeds from issuance of share capital                                                 |   |   | 10(a)  |        |                     |       | 1,625,000  |   |   |   | 490,660 |   |
|     Change in bank indebtedness                                                             |   |   | 14     |   |                     |       | 37,852     |   |   |   | - |   |
|     Proceeds from loan                                                                      |   |   |   |   |                     |       | -          |   |   |   | 81,389 |   |
|     Repayment of loan                                                                       |   |   |   |   |                     |       | (90,229    | )      |   |   | - |   |
|  Net cash from financing activities                                                                   |   |   |   |   |                     |       | 1,572,353  |   |   |   | 572,049 |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| NET DECREASE IN CASH AND EQUIVALENTS:                                                                      |   |   |   |   |                     | $          | (69,860    | )      |   | $ | (2,205,126 | ) |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| CHANGE DUE TO FOREIGN EXCHANGE                                                                             |   |   |   |   |                     |       | -          |   |   |   | (43,690 | ) |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH AND EQUIVALENTS, BEGINNING OF YEAR:                                                                   |   |   |   |   |                     |       | 115,246    |   |   |   | 2,364,062 |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH AND EQUIVALENTS, END OF YEAR:                                                                         |   |   |   |   |                     | $          | 45,386     |   |   | $ | 115,246 |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                                         |   |   |   |   |                     |       |       |   |   |   |   |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
|     Taxes paid                                                                              |   |   |   |   |                     |       | (24,626    | )      |   |   | (89,308 | ) |
|     Interest received                                                                       |   |   |   |   |                     |       | 8          |   |   |   | 6,393 |   |
|                                                                                                       |   |   |   |   |                     |       |       |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                    |   |   |   |   |                     |

----

| 1. | Nature of Business |
|----|--------------------|

|  Corporation    |  Incorporation | Percentageownership | Business Purpose                         |
|----------------------|---------------------|---------------------|------------------------------------------|
| Cerro Cazador S.A.   | Argentina           | 100%                | Holder of Assets and Exploration Company |
| 1494716 Alberta Ltd. | Alberta             | 100%                | Nominee Shareholder                      |
| Hunt Gold USA LLC    | Washington, USA     | 100%                | Management Company                       |

----

----

----

----

|  | (i) | The Company has a present obligation (legal or constructive) as a result of |
|--|-----|-----------------------------------------------------------------------------|

|  | (ii) | It is probable that an outflow of resources will be required to settle the |
|--|------|----------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

|   |   |              |   |   |              |   |
|--------|--------|-------------------|--------|--------|-------------------|--------|
|   |   | December 31, 2015 |   |   | December 31, 2014 |   |
| Cash   |   | $                 | 45,386 |   |              | $      | 115,246 |   |
|   |   | $                 | 45,386 |   |              | $      | 115,246 |   |

|                         |   |       |    |   |                   |   |      |        |   |
|------------------------------|--------|------------|---------|--------|------------------------|--------|-----------|-------------|--------|
|                         |   |  Land |    |   | Vehicles and equipment |   |      |  Total |   |
| Cost                         |   |       |    |   |                   |   |      |        |   |
| Balance at December 31, 2013 |   | $          | 759,274 |   |                   | $      | 1,204,752 |        |   | $ | 1,964,026 |   |
| Additions                    |   |       | 3,433   |   |                   |   | 1,848     |        |   |   | 5,281 |   |
| Foreign exchange movement    |   |       | 66,243  |   |                   |   | 100,817   |        |   |   | 167,060 |   |
| Balance at December 31, 2014 |   | $          | 828,950 |   |                   | $      | 1,307,417 |        |   | $ | 2,136,367 |   |
| Foreign exchange movement    |   |       | 159,844 |   |                   |   | 140,199   |        |   |   | 300,043 |   |
| Balance at December 31, 2015 |   | $          | 988,794 |   |                   | $      | 1,447,616 |        |   | $ | 2,436,410 |   |
|                         |   |       |    |   |                   |   |      |        |   |   |   |   |
| Accumulated amortization     |   |       |    |   |                   |   |      |        |   |   |   |   |
| Balance at December 31, 2013 |   | $          | -       |   |                   | $      | 852,267   |        |   | $ | 852,267 |   |
| Depreciation for the year    |   |       | -       |   |                   |   | 256,742   |        |   |   | 256,742 |   |
| Foreign exchange movement    |   |       | -       |   |                   |   | 84,117    |        |   |   | 84,117 |   |
| Balance at December 31, 2014 |   | $          | -       |   |                   | $      | 1,193,126 |        |   | $ | 1,193,126 |   |
| Depreciation for the period  |   |       | -       |   |                   |   | 112,114   |        |   |   | 112,114 |   |
| Foreign exchange movement    |   |       | -       |   |                   |   | 130,122   |        |   |   | 130,122 |   |
| Balance at December 31, 2015 |   | $          | -       |   |                   | $      | 1,435,362 |        |   | $ | 1,435,362 |   |
|                         |   |       |    |   |                   |   |      |        |   |   |   |   |
| Net book value               |   |       |    |   |                   |   |      |        |   |   |   |   |
| At December 31, 2014         |   | $          | 828,950 |   |                   | $      | 114,291   |        |   | $ | 943,241 |   |
| At December 31, 2015         |   | $          | 988,794 |   |                   | $      | 12,254    |        |   | $ | 1,001,048 |   |

----

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

|                                                         |   |                          |       |   |              |   |       |   |   |   |       |   |
|--------------------------------------------------------------|--------|-------------------------------|------------|--------|-------------------|--------|------------|--------|--------|--------|------------|--------|
| Common Shares                                                |   |                          |       |   |              |   |       |   |   |   |       |   |
|                                                         |   | Year ended                    |       |   | Year ended        |   |
|                                                         |   | December 31, 2015             |       |   | December 31, 2014 |   |
|                                                         |   | Number                        |       |   | Amount            |   |       | Number |   |   | Amount     |   |
| Balance, beginning of year                                   |   |                          | 14,650,298 |   |              | $      | 26,392,416 |   |   |   | 12,150,298 |   |   | $ | 26,062,481 |   |
|   Non-brokered private placement                   |   |                          | 47,500,000 |   |              |   | 1,625,000  |   |   |   | 2,500,000  |   |   |   | 500,000 |   |
|   Portion of units attributable to warrants issued |   |                          | -          |   |              |   | (1,030,000 | )      |   |   | -          |   |   |   | (160,725 | ) |
|   Share issue costs and filing statement fees      |   |                          | -          |   |              |   | -          |   |   |   | -          |   |   |   | (9,340 | ) |
| Balance, end of year                                         |   |                          | 62,150,298 |   |              | $      | 26,987,416 |   |   |   | 14,650,298 |   |   | $ | 26,392,416 |   |
|                                                         |   |                          |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
|                                                         |   |                          |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Warrants                                                     |   |                          |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
|                                                         |   | Year ended                    |       |   | Year ended        |   |
|                                                         |   | December 31, 2015   |       |   | December 31, 2014 |   |
|                                                         |   | Number                        |       |   | Amount            |   |       | Number |   |   | Amount     |   |
| Balance, beginning of year                                   |   |                          | 2,500,000  |   |              | $      | 160,725    |   |   |   | -          |   |   | $ | - |   |
|   Portion of units attributable to warrants issued |   |                          | 47,500,000 |   |              |   | 1,030,000  |   |   |   | 25,000,000 |   |   |   | 160,725 |   |
|   Expiry of warrants                               |   |                          | (2,500,000 | )      |              |   | (160,725   | )      |   |   | -          |   |   |   | - |   |
| Balance, end of year                                         |   |                          | 47,500,000 |   |              | $      | 1,030,000  |   |   |   | 25,000,000 |   |   | $ | 160,725 |   |

| b) | Stock options: |
|----|----------------|

----

|                                                            |   |                     |         |   |               |              |    |                          |                   |   |                            |              |   |                                    |                   |
|-----------------------------------------------------------------|--------|--------------------------|--------------|--------|--------------------|-------------------|---------|-------------------------------|------------------------|--------|---------------------------------|-------------------|--------|-----------------------------------------|------------------------|
|                                                            |   | Range of exercise prices |         |   | Number outstanding |              |    | Weighted average life (years) |                   |   | Weighted average exercise price |              |   | Number exercisable on December 31, 2015 |                   |
| Stock options                                                   |   | $                        | 0.10 - $3.50 |   |               |              | 434,753 |                          |                   |   | 2.64                            |              |   | $                                       | 1.59                   |   |   |   | 434,753 |   |
|                                                            |   |                     |         |   |               |              |    |                          |                   |   |                            |              |   |                                    |                   |   |   |   |   |   |
|                                                            |   |                     |         |   |               |              |    |                          |                   |   |                            |              |   |                                    |                   |   |   |   |   |   |
|                                                            |   |                     |         |   |               | December 31, 2015 |    |                          | December 31, 2014      |   |
|                                                            |   |                     |         |   |               | Number of options |    |                          | Weighted Average Price |   |                            | Number of options |   |                                    | Weighted Average Price |   |
| Balance, beginning of period                                    |   |                     |         |   |               |              | 494,753 |                          |                   | $      | 2.10                            |              |   |                                    | 688,253                |   |   | $ | 3.10 |   |
|      Granted to officers and directors |   |                     |         |   |               |              | -       |                          |                   | $      | 0.00                            |              |   |                                    | 285,000                |   |   | $ | 1.00 |   |
|      Forfeiture of stock options       |   |                     |         |   |               |              | -       |                          |                   | $      | 0.00                            |              |   |                                    | (200,000               | ) |   | $ | 2.90 |   |
|      Expiration of stock options       |   |                     |         |   |               |              | (60,000 | )                             |                   | $      | 6.50                            |              |   |                                    | (278,500               | ) |   | $ | 3.00 |   |
| Balance, end of period                                          |   |                     |         |   |               |              | 434,753 |                          |                   | $      | 1.59                            |              |   |                                    | 494,753                |   |   | $ | 2.10 |   |

|                                       |   | April 4, 2014 |        |
|--------------------------------------------|--------|---------------|-------------|
| Risk free interest rateExpected volatility |   |          | 1.52%186.86 | % |
| Expected life (years)                      |   |          | 5           |   |
| Expected dividend yield                    |   |          | 0           | % |
| Forfeiture rate                            |   |          | 36.79       | % |

| c) | Warrants: |
|----|-----------|

|                                                 |   |                     |          |   |                   |   |       |                          |   |   |                            |   |
|------------------------------------------------------|--------|--------------------------|---------------|--------|------------------------|--------|------------|-------------------------------|--------|--------|---------------------------------|--------|
|                                                 |   | Range of exercise prices |          |   | Number outstanding     |   |       | Weighted average life (years) |   |   | Weighted average exercise price |   |
| Warrants                                             |   | $                        | 0.05 - $0.075 |   |                   |   | 47,500,000 |                          |   |   | 2.28                            |   |   | $ | 0.06 |   |
|                                                 |   |                     |          |   |                   |   |       |                          |   |   |                            |   |   |   |   |   |
|                                                 |   | December 31, 2015        |          |   | December 31, 2014      |   |
|                                                 |   | Number of warrants       |          |   | Weighted Average Price |   |       | Number of warrants            |   |   | Weighted Average Price          |   |
| Balance, beginning of year                           |   |                     | 2,500,000     |   |                   | $      | 0.50       |                          |   |   | -                               |   |   |   | - |   |
|      Warrants (Note 10(a))  |   |                     | -             |   |                   |   | -          |                          |   |   | 2,500,000                       |   |   | $ | 0.50 |   |
|      Expiration of warrants |   |                     | (2,500,000    | )      |                   | $      | 0.50       |                          |   |   | -                               |   |   |   | - |   |
|      Warrants (Note 10(a))  |   |                     | 22,500,000    |   |                   | $      | 0.08       |                          |   |   | -                               |   |   |   | - |   |
|      Warrants (Note 10(a))  |   |                     | 25,000,000    |   |                   | $      | 0.05       |                          |   |   | -                               |   |   |   | - |   |
| Balance, end of year                                 |   |                     | 47,500,000    |   |                   | $      | 0.06       |                          |   |   | 2,500,000                       |   |   | $ | 0.50 |   |

|                                                   |   | December 31, 2015 |      |   | December 31, 2014 |   |
|--------------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
| Balance, beginning of year                             |   | $                 | 9,416,187 |   |              | $      | 9,358,217 |   |
|      Expiry of warrants       |   |              | 160,725   |   |              |   | - |   |
|      Share based compensation |   |              | 1,969     |   |              |   | 57,970 |   |
| Balance, end of year                                   |   | $                 | 9,578,881 |   |              | $      | 9,416,187 |   |

----

|                         |   |   |    |   |
|------------------------------|--------|--------|---------|--------|
| Balance at December 31, 2013 |   | $      | 548,676 |   |
| Change                       |   |   | 32,341  |   |
| Discount and accretion       |   |   | (23,537 | )      |
| Balance at December 31, 2014 |   | $      | 557,480 |   |
| Change                       |   |   | 45,365  |   |
| Discount and accretion       |   |   | 265,964 |   |
| Balance at December 31, 2015 |   | $      | 868,809 |   |

----

|                                                                                                                                       |   |              |       |   |              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                                                                                                       |   | December 31, 2015 |       |   | December 31, 2014 |   |
| Loss before income taxes                                                                                                                   |   | $                 | (2,715,862 | )      |              | $      | (3,229,683 | ) |
| Expected income tax recovery at 26.1% (2014 – 25.0%)                                                                                 |   |              | (708,800   | )      |              |   | (807,000 | ) |
| Non-deductible meals and other                                                                                                             |   |              | 325        |   |              |   | 5,000 |   |
| Share based payments                                                                                                                       |   |              | 500        |   |              |   | 15,000 |   |
| Change in prior year estimates                                                                                                             |   |              | (3,045,841 | )      |              |   | 157,000 |   |
| Tax rate differences (mostly comprised of difference from effective Argentina tax rate of 35% and effective United States tax rate of 34%) |   |              | (212,929   | )      |              |   | (285,000 | ) |
| Foreign exchange                                                                                                                           |   |              | (1,399,398 | )      |              |   | (1,915,580 | ) |
| Change in deferred tax assets not recognized                                                                                               |   |              | 5,277,846  |   |              |   | 2,758,109 |   |
| Total income taxes                                                                                                                         |   | $                 | (88,256    | )      |              |   | (72,471 | ) |

|                                            |   |              |       |   |              |   |
|-------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                            |   | December 31, 2015 |       |   | December 31, 2014 |   |
| Canada                                          |   |              |       |   |              |   |
| Share issuance costs                            |   | $                 | 176,363    |   |              | $      | 217,732 |   |
| Unrealized foreign exchange gain                |   |              | -          |   |              |   | (148,517 | ) |
| Non-capital losses available for future periods |   |              | 579,590    |   |              |   | 415,738 |   |
| Deferred tax assets not recognized              |   |              | (755,953   | )      |              |   | (484,953 | ) |
| Canada deferred tax asset                       |   | $                 | -          |   |              | $      | - |   |
| Argentina                                       |   |              |       |   |              |   |   |   |
| Property and equipment                          |   | $                 | 3,045,841  |   |              | $      | - |   |
| VAT receivable                                  |   |              | 169,735    |   |              |   | 300,000 |   |
| Non-capital losses available for future periods |   |              | 2,660,319  |   |              |   | 1,625,000 |   |
| Contingency accrual and other                   |   |              | 159,439    |   |              |   | 35,000 |   |
| Deferred tax assets not recognized              |   |              | (6,035,333 | )      |              |   | (1,960,000 | ) |
| Argentina deferred tax asset                    |   | $                 | -          |   |              | $      | - |   |
| United States                                   |   |              |       |   |              |   |   |   |
| Property and equipment                          |   |              | 3,042      |   |              | $      | 16.000 |   |
| Non-capital losses available for future periods |   |              | 2,191,470  |   |              |   | 1,247,000 |   |
| Deferred tax assets not recognized              |   |              | (2,194,512 | )      |              |   | (1,263,000 | ) |
| United States deferred tax asset                |   | $                 | -          |   |              | $      | - |   |
| Total deferred tax asset                        |   | $                 | -          |   |              | $      | - |   |

----

|           |   |   |      |   |      |   |      |          |   |   |      |   |
|----------------|--------|--------|-----------|--------|-----------|--------|-----------|---------------|--------|--------|-----------|--------|
| Year of Expiry |   | Canada |      |   | Argentina |   |      | United States |   |   | Total     |   |
| 2016           |   |   | -         |   |      |   | 236,717   |          |   |   | -         |   |   |   | 236,717 |   |
| 2017           |   |   | -         |   |      |   | 677,904   |          |   |   | -         |   |   |   | 677,904 |   |
| 2018           |   |   | -         |   |      |   | 2,604,886 |          |   |   | -         |   |   |   | 2,604,886 |   |
| 2019           |   |   | -         |   |      |   | 1,087,534 |          |   |   | -         |   |   |   | 1,087,534 |   |
| 2020           |   |   | -         |   |      |   | 2,993,870 |          |   |   | -         |   |   |   | 2,993,870 |   |
| 2029           |   |   |      |   |      |   |      |          |   |   | 669,111   |   |   |   | 669,111 |   |
| 2030           |   |   |      |   |      |   |      |          |   |   | 372,803   |   |   |   | 372,803 |   |
| 2031           |   |   | 1,141,327 |   |      |   | -         |          |   |   | 1,025,586 |   |   |   | 2,166,913 |   |
| 2032           |   |   | -         |   |      |   | -         |          |   |   | 1,655,222 |   |   |   | 1,655,222 |   |
| 2033           |   |   | -         |   |      |   | -         |          |   |   | 1,231,291 |   |   |   | 1,231,291 |   |
| 2034           |   |   | 521,626   |   |      |   | -         |          |   |   | 822,337   |   |   |   | 1,343,963 |   |
| 2035           |   |   | 483,678   |   |      |   |      |          |   |   | 669,149   |   |   |   | 1,152,827 |   |
| Total          |   | $      | 2,146,631 |   |      |   | 7,600,911 |          |   |   | 6,445,500 |   |   |   | 16,193,042 |   |

|   | Generation year |   | Amount |    |   | Expiration year |   |
|--------|-----------------|--------|--------|---------|--------|-----------------|--------|
|   | 2011            |   | $      | 41,659  |   |            |   | 2020 |   |
|   | 2012            |   | $      | 117,838 |   |            |   | 2021 |   |
|   | 2013            |   | $      | 105,776 |   |            |   | 2022 |   |
|   | 2014            |   | $      | 125,646 |   |            |   | 2023 |   |
|   | 2015            |   |   | 0       |   |            |   | 2024 |   |
|   | Total           |   | $      | 390,919 |   |            |   |   |   |

----

|                     |   |               |    |   |               |   |
|--------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                     |   | Years ended        |    |
|                     |   | December 31,  2015 |    |   | December 31,  2014 |   |
| Salaries and benefits    |   |               | 208,879 |   |               |   | 197,188 |   |
| Consulting fees          |   |               | 182,121 |   |               |   | 161,734 |   |
| Share based compensation |   |               | 1,371   |   |               |   | 53,400 |   |
|                     |   | $                  | 392,371 |   |               | $      | 412,322 |   |

----

|  | · | Level 1:  inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.  Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 2:  inputs, other than quoted prices, that are observable, either directly or indirectly.  Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and volatility factors, which can be observed or corroborated in the market place. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 3:  inputs are less observable, unavoidable or where the observable data does not support the majority of the instruments' fair value. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                |   |                    |    |   |                    |   |    |            |   |   |       |   |
|---------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|---------|-----------------|--------|--------|------------|--------|
|                                                                |   | December 31, 2015  |    |   | December 31, 2014  |   |
|                                                                |   | Carrying amount         |    |   | Fair value              |   |    | Carrying amount |   |   | Fair value |   |
|                                                                |   |                    | $  |   |                    |   | $  |            |   |   | $     |   |   |   | $  |   |
| Financial Assets                                                    |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|     FVTPL                                            |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|        Cash and equivalents (Level 1) |   |                    | 45,386  |   |                    |   | 45,386  |            |   |   | 115,246    |   |   |   | 115,246 |   |
|                                                                |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|     Available for sale                               |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|       Performance bond (Level 1)           |   |                    | 489,620 |   |                    |   | 489,620 |            |   |   | 336,850    |   |   |   | 336,850 |   |
|                                                                |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|     Loans and receivables                            |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|       Accounts receivable                  |   |                    | 119,402 |   |                    |   | 119,402 |            |   |   | 69,554     |   |   |   | 69,554 |   |
|                                                                |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
| Financial Liabilities                                               |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|     Other financial liabilities                      |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |
|       Bank indebtedness                    |   |                    | 40,775  |   |                    |   | 40,775  |            |   |   | -          |   |   |   | - |   |
|       Accounts payable and accrued liabilities  |   |                    | 729,691 |   |                    |   | 729,691 |            |   |   | 729,691    |   |   |   | 729,691 |        |
|       Taxes payable                        |   |                    | 113,363 |   |                    |   | 113,363 |            |   |   | -          |   |   |   | - |   |
|                                                                |   |                    |    |   |                    |   |    |            |   |   |       |   |   |   |   |   |

| i. | Currency risk |
|----|---------------|

| Cash and equivalents                     |   | $ | 5,674   |   |
|------------------------------------------|--------|---|---------|--------|
| Performance bond                         |   | $ | 489,620 |   |
| Accounts payable and accrued liabilities |   | $ | 449,253 |   |

----

| Cash and equivalents                     |   | $ | 38,388    |   |
|------------------------------------------|--------|---|-----------|--------|
| Accounts receivable                      |   | $ | 115,831   |   |
| Other credits                            |   | $ | 94,998    |   |
| Accounts payable and accrued liabilities |   | $ | 1,017,641 |   |

|                                           |   | Impact on net loss andcomprehensive loss |   |
|------------------------------------------------|--------|------------------------------------------|--------|
| U.S. Dollar Exchange rate – 10% increase |   | $                                        | 4,037  |   |
| U.S. Dollar Exchange rate – 10% decrease |   | $                                        | (4,037 | ) |

|                                              |   | Impact on net loss andcomprehensive loss |    |
|---------------------------------------------------|--------|------------------------------------------|---------|
| Argentine Peso Exchange rate – 10% increase |   | $                                        | (76,842 | ) |
| Argentine Peso Exchange rate – 10% decrease |   | $                                        | 76,842  |   |

----

| iv. | Price risk |
|-----|------------|

|          |   |              |      |   |              |   |
|---------------|--------|-------------------|-----------|--------|-------------------|--------|
|          |   | December 31, 2015 |      |   | December 31, 2014 |   |
| Canada        |   | $                 | 7,317     |   |              | $      | 118,729 |   |
| Argentina     |   |              | 3,006,255 |   |              |   | 2,403,161 |   |
| United States |   |              | 5,674     |   |              |   | 4,817 |   |
|          |   | $                 | 3,019,246 |   |              | $      | 2,526,707 |   |

|          |   |              |       |   |              |   |
|---------------|--------|-------------------|------------|--------|-------------------|--------|
|          |   | December 31, 2015 |       |   | December 31, 2014 |   |
| Canada        |   | $                 | (659,621   | )      |              | $      | (546,890 | ) |
| Argentina     |   |              | (1,661,018 | )      |              |   | (2,096,180 | ) |
| United States |   |              | (483,478   | )      |              |   | (659,084 | ) |
|          |   | $                 | (2,804,118 | )      |              | $      | (3,302,154 | ) |

|  | a) | On March 27, 2007, the Company signed a definitive lease purchase agreement with FK Minera S.A. to acquire a 100% interest in the Bajo Pobré gold property located in Santa Cruz Province, Argentina.  The Company may earn up to a 100% equity interest in the Bajo Pobré property by making cash payments and exploration expenditures over a five-year earn-in period. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Year of the Agreement    | Payment to FK Minera S.A. |   | Exploration Expenditures Required | Ownership |
|--------------------------|---------------------------|--------|-----------------------------------|-----------|
| First year – 2007  | US$50,000                 | PAID   | US$250,000                        | 0%        |
| Second year – 2008 | US$30,000                 | PAID   | US$250,000                        | 0%        |
| Third year –2009   | US$50,000                 | PAID   | -                                 | 51%       |
| Fourth year – 2010 | US$50,000                 | PAID   | -                                 | 60%       |
| Fifth year – 2011  | US$50,000                 | PAID   | -                                 | 100%      |

|  | b) | In March 2007, the Company was the successful bidder for the exploration and development rights to the La Josefina project from Fomicruz.  On July 24, 2007, the Company entered into an agreement with Fomicruz pursuant to which the Company agreed to invest a minimum of US$6 million in exploration and development expenditures over a four year period, including US$1.5 million before July 2008. The agreement provides that, in the event that a positive feasibility study is completed on the La Josefina property, a Joint Venture Corporation ("JV Corporation") would be formed by the Company and Fomicruz. A revised schedule for exploration and development of the La Josefina project was submitted in writing to Fomicruz and was adopted on May 3, 2011, mandating that an economic feasibility study and production decision be made by the Company for the La Josefina project by the end of 2013. The Company would own 91% of the joint venture company and Fomicruz would own the remaining 9%.  |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | On June 30, 2010, a former director and accounting consultant ("the Consultant") to the Company severed his business relationship with the Company. On August 5, 2010 the Consultant claimed that since 2006, he was actually an employee of, not a consultant to, CCSA. On September 7, 2010, the Argentine Ministry of Labor, Employment and Social Security filed a Certificate of Notice on CCSA and the Company indicating that a representative from CCSA and the Company must appear before a mediator to address the Consultant's claims. The certificates of notice stated the value of the Consultant's claim against the Company at 500,000 pesos (US$126,811). |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | d) | On October 31, 2011, the Company signed an agreement with the owners of the Piedra Labrada Ranch for the use and lease of facilities on the same premises as the Company's La Josefina facilities.  The initial term was for three years beginning November 1, 2011 and ended on October 31, 2014, including annual commitments of US$60,000.  The Company extended this agreement for two years. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | e) | On April 1, 2012 the Company entered into a 9 month agreement with the surface rights holder of the Piedra Grande Ranch, located in Santa Cruz province, Argentina for access and use of their property. The agreement allows for the Company to engage in exploration activity as well as use the property and the facilities to house and store the Company's equipment and personnel.  The Company agreed to consideration of US$3,000 per month under this agreement.   The initial term of the agreement ended on December 31, 2012. The Company extended the agreement until December 31, 2013.  The Company's total obligation under this agreement for the year ended December 31, 2013 was US$36,000.  The Company did not extend this agreement for another year. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | f) | On November 1, 2012, the Company entered into an agreement with Fomicruz S.E. (Fomicruz is government mining company of the Province of Santa Cruz and owner of the mining concessions of La Valenciana) for the exploration of the La Valenciana project in Santa Cruz province, Argentina.  The agreement is for a total of 7 years, expiring on October 31, 2019.  The 7 years is broken into 3 economic periods, at the end of each period the Company will have the option of reporting its results to Fomicruz or terminating the agreement. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase an additional 10% in the JV corporation, Fomicruz must reimburse the Company for 10% of the exploration expenses made by the Company during the exploration period; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase the next 10% interest in the JV corporation, Fomicruz must reimburse the Company for 20% of the exploration expenses made by the Company during the exploration period; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase a final additional 20% interest in the JV Corporation, Fomicruz must reimburse the Company for 25% of the exploration expenses made by the Company during the exploration period; bringing Fomicruz's total ownership interest in the JV Corporation to 49%. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | g) | On October 3, 2013, the Tax Authorities of the Santa Cruz Province, started a claim requesting omitted stamp tax on a) the Exploration Agreement signed during fiscal year 2012 (Amendment of "La Josefina" and "La Valenciana" contract) and b) Loan Agreement signed between the parent Companies and CCSA.  Request is in the amount of $248,673.  This amount does not include potential fines.  An accrual for this amount has been included in taxes payable in the consolidated statements of financial position. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | h) | On March 26, 2014, the Company signed an agreement with the surface rights holder of the La Valenciana Ranch, located in Santa Cruz Province, Argentina for access and use of their property.  The agreement allows for the Company to engage in exploration activity.  The term is for five years, beginning April 1, 2014 and ending March 31, 2019, including annual commitments of US$36,000.  The Company's total commitment for 2014 was US$24,000, as it was only a partial year.  The Company's commitment in 2015 was US$36,000 for the full year. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | December 31, |    |   | December 31, |   |
|----------------------|--------|--------------|---------|--------|--------------|--------|
|                 |   | 2015         |    |   | 2014         |   |
| Shareholders' equity |   | $            | 520,933 |   |         | $      | 1,465,640 |   |

----

----

----

----

----

----

| Years ended December 31, 2014 and 2013                    |   | Page   |
|-----------------------------------------------------------|--------|--------|
|                                                      |   |   |
| Consolidated Statements of Financial Position             |   | 102    |
|                                                      |   |   |
| Consolidated Statements of Loss and Comprehensive Loss    |   | 103    |
|                                                      |   |   |
| Consolidated Statement of Changes in Shareholders' Equity |   | 104    |
|                                                      |   |   |
| Consolidated Statements of Cash Flows                     |   | 105    |
|                                                      |   |   |
| Notes to the Consolidated Financial Statements            |   | 106    |
|                                                      |   |   |
|                                                      |   |   |

----

|                                                                                    |   |   |   |   |         |   |        |         |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------|--------|-------------|--------------|--------|
| Hunt Mining Corp.                                                                       |   |   |   |   |         |   |        |         |   |
| An Exploration Stage Enterprise                                                         |   |   |   |   |         |   |        |         |   |
| Expressed in Canadian Dollars                                                           |   |   |   |   |         |   |        |         |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |
| Consolidated Statements of Financial Position                                           |   |   |   |   |         |   |        |         |   |
|                                                                                    |   |   |   |   | December 31, |   |        | December 31, |   |
|                                                                                    |   | NOTE   |   |   | 2014         |   |        | 2013         |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |
| CURRENT ASSETS:                                                                         |   |   |   |   |         |   |        |         |   |
|     Cash and equivalents                                                 |   |   | 7      |   |         | $      | 115,246     |         |   | $ | 2,364,062 |   |
|     Marketable securities                                                |   |   | 8      |   |         |   | -           |         |   |   | 47,828 |   |
|     Accounts receivable                                                  |   |   |   |   |         |   | 69,554      |         |   |   | 121,084 |   |
|     Prepaid expenses                                                     |   |   |   |   |         |   | 13,470      |         |   |   | 26,531 |   |
|       Total Current Assets                                     |   |   |   |   |         |   | 198,270     |         |   |   | 2,559,505 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| NON-CURRENT ASSETS:                                                                     |   |   |   |   |         |   |        |         |   |   |   |   |
|     Property and equipment                                               |   |   | 9      |   |         |   | 943,241     |         |   |   | 1,111,759 |   |
|     Performance bond                                                     |   |   | 12     |   |         |   | 336,850     |         |   |   | 340,183 |   |
|     VAT receivable, net of discount                                      |   |   | 13     |   |         |   | 557,480     |         |   |   | 548,676 |   |
|     Other deposit                                                        |   |   | 19(c)  |        |         |   | 95,964      |         |   |   | 80,085 |   |
|     Minimal presumed income tax receivable                               |   |   |   |   |         |   | 394,902     |         |   |   | 362,559 |   |
|       Total Non-Current Assets:                                |   |   |   |   |         |   | 2,328,437   |         |   |   | 2,443,262 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| TOTAL ASSETS:                                                                           |   |   |   |   |         | $      | 2,526,707   |         |   | $ | 5,002,767 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| CURRENT LIABILITIES:                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
|     Accounts payable and accrued liabilities                             |   |   |   |   |         | $      | 729,691     |         |   | $ | 274,364 |   |
|     Taxes payable                                                        |   |   |   |   |         |   | 124,307     |         |   |   | 317,582 |   |
|      Total Current Liabilities:                                     |   |   |   |   |         |   | 853,998     |         |   |   | 591,946 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| NON-CURRENT LIABILITIES:                                                                |   |   |   |   |         |   |        |         |   |   |   |   |
|     Loan payable                                                         |   |   | 14     |   |         |   | 82,069      |         |   |   | - |   |
|     Provision                                                       |   |   | 19(c)  |        |         |   | 125,000     |         |   |   | 125,000 |   |
|       Total Non-Current Liabilities:                           |   |   |   |   |         |   | 207,069     |         |   |   | 125,000 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| TOTAL LIABILITIES:                                                                      |   |   |   |   |         | $      | 1,061,067   |         |   | $ | 716,946 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                   |   |   |   |   |         |   |        |         |   |   |   |   |
|     Share capital                                                        |   |   | 10     |   |         | $      | 26,392,416  |         |   | $ | 26,062,481 |   |
|     Contributed surplus                                                  |   |   | 11     |   |         |   | 9,416,187   |         |   |   | 9,358,217 |   |
|     Warrants                                                             |   |   | 10     |   |         |   | 160,725     |         |   |   | - |   |
|     Deficit                                                              |   |   |   |   |         |   | (34,478,437 | )            |   |   | (31,176,283 | ) |
|     Accumulated other comprehensive income (loss)                        |   |   |   |   |         |   | (25,251     | )            |   |   | 41,406 |   |
|       Total Shareholders' Equity:                              |   |   |   |   |         | $      | 1,465,640   |         |   | $ | 4,285,821 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY:                                             |   |   |   |   |         | $      | 2,526,707   |         |   | $ | 5,002,767 |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Going Concern (Note 3)                                                                  |   |   |   |   |         |   |        |         |   |   |   |   |
| Subsequent Event (Note 21)                                                              |   |   |   |   |         |   |        |         |   |   |   |   |
| Commitments and Provision (Note 19)                                                     |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Approved on behalf of the Board of Directors                                            |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Signed "Tim Hunt"                                                                       |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| Signed "Alan Chan"                                                                      |   |   |   |   |         |   |        |         |   |   |   |   |
|                                                                                    |   |   |   |   |         |   |        |         |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |   |   |         |

----

|                                                                                    |   |   |   |   |                     |      |        |   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|-----------|-------------|--------|--------|
| Hunt Mining Corp.                                                                       |   |   |   |   |                     |      |        |   |   |
| An Exploration Stage Enterprise                                                         |   |   |   |   |                     |      |        |   |   |
| Expressed in Canadian Dollars                                                           |   |   |   |   |                     |      |        |   |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |
| Consolidated Statements of Loss and Comprehensive Loss                                  |   |   |   |   |                     |      |        |   |   |
|                                                                                    |   |   |   |   | Years ended December 31, |      |
|                                                                                    |   | NOTE   |   |   | 2014                     |      |        | 2013   |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |
| REVENUE:                                                                                |   |   |   |   |                     |      |        |   |   |
| Operator's Fee                                                                          |   |   |   |   | $                        | -         |        |   | $      | 107,797 |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |
| OPERATING EXPENSES:                                                                     |   |   |   |   |                     |      |        |   |   |   |   |
| Professional fees                                                                       |   |   |   |   |                     | 393,221   |        |   |   | 508,288 |   |
| Directors fees                                                                          |   |   |   |   |                     | -         |        |   |   | 108,690 |   |
| Exploration expenses                                                                    |   |   |   |   |                     | 1,084,971 |        |   |   | 667,796 |   |
| Travel expenses                                                                         |   |   |   |   |                     | 189,317   |        |   |   | 272,242 |   |
| Administrative and office expenses                                                      |   |   |   |   |                     | 294,781   |        |   |   | 575,466 |   |
| Payroll expenses                                                                        |   |   |   |   |                     | 744,618   |        |   |   | 1,871,466 |   |
| Share based compensation                                                                |   |   | 11     |   |                     |      | 57,970      |   |   |   | 6,375 |   |
| Interest expense and banking charges                                                    |   |   |   |   |                     |      | 55,652      |   |   |   | 59,564 |   |
| Depreciation                                                                            |   |   | 9      |   |                     |      | 256,742     |   |   |   | 302,516 |   |
| Cost recovery                                                                           |   |   |   |   |                     |      | -           |   |   |   | (1,790,032 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| Total operating expenses:                                                               |   |   |   |   |                     |      | 3,077,272   |   |   |   | 2,582,371 |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| OTHER INCOME/(EXPENSE):                                                                 |   |   |   |   |                     |      |        |   |   |   |   |   |
| Interest income                                                                         |   |   |   |   |                     |      | 18,456      |   |   |   | 49,626 |   |
| Miscellaneous income (expense)                                                          |   |   | 8      |   |                     |      | (4,036      | )      |   |   | 455,669 |   |
| VAT discount and accretion                                                              |   |   | 13     |   |                     |      | (23,537     | )      |   |   | (16,076 | ) |
| Loss on foreign exchange                                                                |   |   |   |   |                     |      | (143,294    | )      |   |   | (465,475 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| Total other income:                                                                     |   |   |   |   |                     |      | (152,411    | )      |   |   | 23,744 |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| LOSS - before income tax                                                                |   |   |   |   |                     |      | (3,229,683  | )      |   |   | (2,450,830 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| Income taxes                                                                            |   |   | 15     |   |                     |      | (72,471     | )      |   |   | (229,258 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| NET LOSS FOR THE YEAR                                                                   |   |   |   |   |                     | $         | (3,302,154  | )      |   | $ | (2,680,088 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| Other comprehensive income (loss), net of tax:                                          |   |   |   |   |                     |      |        |   |   |   |   |   |
|     Items that may be reclassified subsequently to net loss         |   |   |   |   |                     |      |        |   |   |   |   |   |
| Change in value of performance bond                                                     |   |   | 12     |   |                     |      | (3,333      | )      |   |   | 54,842 |   |
| Translation of foreign operations into Canadian dollar presentation                     |   |   |   |   |                     |      | (63,324     | )      |   |   | 264,809 |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| TOTAL NET LOSS AND COMPREHENSIVE LOSS FOR THE YEAR:                                     |   |   |   |   |                     | $         | (3,368,811  | )      |   | $ | (2,360,437 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| Weighted average shares outstanding - basic and diluted                                 |   |   |   |   |                     |      | 125,398,933 |   |   |   | 115,773,866 |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| NET LOSS PER SHARE - BASIC AND DILUTED:                                                 |   |   |   |   |                     | $         | (0.03       | )      |   | $ | (0.02 | ) |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |   |   |                     |      |        |   |   |
|                                                                                    |   |   |   |   |                     |      |        |   |   |   |   |   |

----

|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|---------|--------|-------------|---------------|--------|--------|-------------|--------|--------|----------|-----------|--------|-----------|--------|------------|--------|--------|
| Hunt Mining Corp.                                                            |
| An Exploration Stage Enterprise                                                        |
| Expressed in Canadian Dollars                                                |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |
| Consolidated Statement of Changes in Shareholders' Equity               |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |
|                                                                                                                                          |   |          |       |   |    |   |        | Accumulated   |   |   |        |   |   |     |      |   |      |   |       |   |   |
|                                                                                                                                          |   |          |       |   |    |   |        | Other         |   |   |        |   |   |     |      |   |      |   |       |   |   |
|                                                                                                                                          |   |          |       |   |    |   |        | Comprehensive |   |   | Contributed |   |   |     |      |   | Preferred |   |       |   |   |
|                                                                                                                                          |   | Share Capital |       |   | Deficit |   |        | Loss          |   |   | Surplus     |   |   | Warrants |      |   | Shares    |   |       | Total  |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |
| Balance - January 1, 2013                                                                                                                     |   | $             | 25,885,064 |   |    | $      | (28,496,195 | )             |   | $      | (278,245    | )      |   | $        | 3,491,659 |   |      | $      | 5,860,183  |   |   | $ | 177,417 |   |   | $ | 6,639,883 |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                                                      |   |          | -          |   |    |   | (2,680,088  | )             |   |   | -           |   |   |     | -         |   |      |   | -          |   |   |   | - |   |   |   | (2,680,088 | ) |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                                                                                                    |   |          | -          |   |    |   | -           |          |   |   | 319,651     |   |   |     | -         |   |      |   | -          |   |   |   | - |   |   |   | 319,651 |   |
| Share based compensation                                                                                                                      |   |          | -          |   |    |   | -           |          |   |   | -           |   |   |     | 6,375     |   |      |   | -          |   |   |   | - |   |   |   | 6,375 |   |
| Conversion of preferred shares to common shares                                                                                               |   |          | 177,417    |   |    |   | -           |          |   |   | -           |   |   |     | -         |   |      |   | -          |   |   |   | (177,417 | ) |   |   | - |   |
| Expiry of warrants                                                                                                                            |   |          | -          |   |    |   | -           |          |   |   | -           |   |   |     | 5,860,183 |   |      |   | (5,860,183 | )      |   |   | - |   |   |   | - |   |
| Balance - December 31, 2013                                                                                                                   |   | $             | 26,062,481 |   |    | $      | (31,176,283 | )             |   | $      | 41,406      |   |   | $        | 9,358,217 |   |      | $      | -          |   |   | $ | - |   |   | $ | 4,285,821 |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
| Balance - January 1, 2014                                                                                                                     |   | $             | 26,062,481 |   |    | $      | (31,176,283 | )             |   | $      | 41,406      |   |   | $        | 9,358,217 |   |      | $      | -          |   |   | $ | - |   |   | $ | 4,285,821 |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                                                      |   |          | -          |   |    |   | (3,302,154  | )             |   |   | -           |   |   |     | -         |   |      |   | -          |   |   |   | - |   |   |   | (3,302,154 | ) |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                                                                      |   |          | -          |   |    |   | -           |          |   |   | (66,657     | )      |   |     | -         |   |      |   | -          |   |   |   | - |   |   |   | (66,657 | ) |
| Share capital issued                                                                                                                          |   |          | 500,000    |   |    |   | -           |          |   |   | -           |   |   |     | -         |   |      |   | -          |   |   |   | - |   |   |   | 500,000 |   |
| Share issue costs and filing statement fees                                                                                                   |   |          | (9,340     | )      |    |   | -           |          |   |   | -           |   |   |     | -         |   |      |   | -          |   |   |   | - |   |   |   | (9,340 | ) |
| Portion of units attributable to warrants issued                                                                                              |   |          | (160,725   | )      |    |   | -           |          |   |   | -           |   |   |     | -         |   |      |   | 160,725    |   |   |   | - |   |   |   | - |   |
| Share based compensation                                                                                                                      |   |          | -          |   |    |   | -           |          |   |   | -           |   |   |     | 57,970    |   |      |   | -          |   |   |   | - |   |   |   | 57,970 |   |
| Balance - December 31, 2014                                                                                                                   |   | $             | 26,392,416 |   |    | $      | (34,478,437 | )             |   | $      | (25,251     | )      |   | $        | 9,416,187 |   |      | $      | 160,725    |   |   | $ | - |   |   | $ | 1,465,640 |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |   |       |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                                                       |   |          |       |   |    |   |        |          |   |   |        |   |   |     |      |   |      |

----

|                                                                                    |   |   |   |   |                     |       |       |   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|------------|------------|--------|--------|
| Hunt Mining Corp.                                                                       |   |   |   |   |                     |       |       |   |   |
| An Exploration Stage Enterprise                                                         |   |   |   |   |                     |       |       |   |   |
| Expressed in Canadian Dollars                                                           |   |   |   |   |                     |       |       |   |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |
| Consolidated Statements of Cash Flows                                                   |   |   |   |   |                     |       |       |   |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |
|                                                                                    |   |   |   |   | Years ended December 31, |       |
|                                                                                    |   | NOTE   |   |   | 2014                     |       |       | 2013   |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                   |   |   |   |   |                     |       |       |   |   |
| Net loss                                                                                |   |   |   |   | $                        | (3,302,154 | )          |   | $      | (2,680,088 | ) |
| Items not affecting cash                                                                |   |   |   |   |                     |       |       |   |   |   |   |
| Depreciation                                                                            |   |   | 9      |   |                     |       | 256,742    |   |   |   | 302,516 |   |
| Deferred tax recovery                                                                   |   |   |   |   |                     |       | -          |   |   |   | (148,517 | ) |
| Loss of foreign exchange                                                                |   |   |   |   |                     |       | (155,622   | )      |   |   | (156,394 | ) |
| Share based compensation                                                                |   |   | 11     |   |                     |       | 57,970     |   |   |   | 6,375 |   |
| Unrealized gain on marketable securities                                                |   |   | 8      |   |                     |       | -          |   |   |   | (1,599 | ) |
| Realized loss on marketable securities                                                  |   |   | 8      |   |                     |       | (7,619     | )      |   |   | (3,173 | ) |
| Loan interest                                                                           |   |   |   |   |                     |       | 680        |   |   |   | - |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| Net change in non-cash working capital items                                            |   |   |   |   |                     |       |       |   |   |   |   |   |
| Decrease  in deposits receivable                                                   |   |   |   |   |                     |       | -          |   |   |   | 114,408 |   |
| Decrease (increase) in minimum presumed income tax receivable                           |   |   |   |   |                     |       | (676       | )      |   |   | 17,784 |   |
| Decrease in VAT receivable                                                              |   |   |   |   |                     |       | 37,096     |   |   |   | 176,524 |   |
| Increase in other deposit                                                               |   |   |   |   |                     |       | (8,446     | )      |   |   | (77,157 | ) |
| Decrease (increase) in accounts receivable                                              |   |   |   |   |                     |       | 58,177     |   |   |   | (71,407 | ) |
| Decrease increase in prepaid expenses                                                   |   |   |   |   |                     |       | 13,522     |   |   |   | 10,002 |   |
| Increase (decrease) in accounts payable and accrued liabilities                         |   |   |   |   |                     |       | 495,900    |   |   |   | (562,097 | ) |
| Increase (decrease) in taxes payable                                                    |   |   |   |   |                     |       | (209,845   | )      |   |   | 175,627 |   |
| Net cash used in operating activities                                                   |   |   |   |   |                     |       | (2,764,275 | )      |   |   | (2,897,196 | ) |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                   |   |   |   |   |                     |       |       |   |   |   |   |   |
| Purchases of property and equipment                                                     |   |   | 9      |   |                     |       | (5,281     | )      |   |   | (18,718 | ) |
| Purchases of marketable securities                                                      |   |   |   |   |                     |       | (1,745,182 | )      |   |   | (358,799 | ) |
| Redemption of marketable securities                                                     |   |   |   |   |                     |       | 1,737,563  |   |   |   | 315,743 |   |
| Net cash used in investing activities                                                   |   |   |   |   |                     |       | (12,900    | )      |   |   | (61,774 | ) |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                   |   |   |   |   |                     |       |       |   |   |   |   |   |
| Proceeds from issuance of share capital, net of share issue costs                       |   |   | 10(a)  |        |                     |       | 490,660    |   |   |   | - |   |
| Proceeds from loan                                                                      |   |   | 14     |   |                     |       | 81,389     |   |   |   |   |   |
|  Net cash from financing activities                                                |   |   |   |   |                     |       | 572,049    |   |   |   | - |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| NET DECREASE IN CASH AND EQUIVALENTS:                                                   |   |   |   |   |                     | $          | (2,205,126 | )      |   | $ | (2,958,970 | ) |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| CHANGE DUE TO FOREIGN EXCHANGE                                                          |   |   |   |   |                     |       | (43,690    | )      |   |   | 102,305 |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH AND EQUIVALENTS, BEGINNING OF YEAR:                                                |   |   |   |   |                     |       | 2,364,062  |   |   |   | 5,220,727 |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| CASH AND EQUIVALENTS, END OF YEAR:                                                      |   |   |   |   |                     | $          | 115,246    |   |   | $ | 2,364,062 |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| Cash and cash equivalents consist of:                                                   |   |   |   |   |                     |       |       |   |   |   |   |   |
|  Cash                                                                              |   |   |   |   |                     |       | 115,246    |   |   |   | 614,062 |   |
| Term deposits (less than 90 days)                                                       |   |   |   |   |                     |       | -          |   |   |   | 1,750,000 |   |
|                                                                                    |   |   |   |   |                     |       | 115,246    |   |   |   | 2,364,062 |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                      |   |   |   |   |                     |       |       |   |   |   |   |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| Taxes paid                                                                              |   |   |   |   |                     |       | (89,308    | )      |   |   | (389,015 | ) |
| Interest received                                                                       |   |   |   |   |                     |       | 6,393      |   |   |   | 24,983 |   |
|                                                                                    |   |   |   |   |                     |       |       |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |   |   |                     |

----

| 1. | Nature of Business |
|----|--------------------|

|  Corporation    |  Incorporation | Percentageownership | Business Purpose                         |
|----------------------|---------------------|---------------------|------------------------------------------|
| Cerro Cazador S.A.   | Argentina           | 100%                | Holder of Assets and Exploration Company |
| 1494716 Alberta Ltd. | Alberta             | 100%                | Nominee Shareholder                      |
| Hunt Gold USA LLC    | Washington, USA     | 100%                | Management Company                       |

----

----

----

----

|  | (iii) | The Company has a present obligation (legal or constructive) as a result of |
|--|-------|-----------------------------------------------------------------------------|

|  | (iv) | It is probable that an outflow of resources will be required to settle the |
|--|------|----------------------------------------------------------------------------|

----

----

----

----

----

----

|                   |   |              |    |   |              |   |
|------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                   |   | December 31, 2014 |    |   | December 31, 2013 |   |
| Cash                   |   | $                 | 115,246 |   |              | $      | 614,062 |   |
| Short-term investments |   |              | -       |   |              |   | 1,750,000 |   |
|                   |   | $                 | 115,246 |   |              | $      | 2,364,062 |   |

----

|                         |   |       |    |   |                   |   |      |        |   |
|------------------------------|--------|------------|---------|--------|------------------------|--------|-----------|-------------|--------|
|                         |   |  Land |    |   | Vehicles and equipment |   |      |  Total |   |
| Cost                         |   |       |    |   |                   |   |      |        |   |
| Balance at December 31, 2012 |   | $          | 454,534 |   |                   | $      | 902,224   |        |   | $ | 1,356,758 |   |
| Additions                    |   |       | -       |   |                   |   | 18,718    |        |   |   | 18,718 |   |
| Foreign exchange movement    |   |       | 304,740 |   |                   |   | 283,810   |        |   |   | 588,550 |   |
| Balance at December 31, 2013 |   | $          | 759,274 |   |                   | $      | 1,204,752 |        |   | $ | 1,964,026 |   |
| Additions                    |   |       | 3,433   |   |                   |   | 1,848     |        |   |   | 5,281 |   |
| Foreign exchange movement    |   |       | 66,243  |   |                   |   | 100,817   |        |   |   | 167,060 |   |
| Balance at December 31, 2014 |   | $          | 828,950 |   |                   | $      | 1,307,417 |        |   | $ | 2,136,367 |   |
|                         |   |       |    |   |                   |   |      |        |   |   |   |   |
| Accumulated amortization     |   |       |    |   |                   |   |      |        |   |   |   |   |
| Balance at December 31, 2012 |   | $          | -       |   |                   | $      | 393,162   |        |   | $ | 393,162 |   |
| Depreciation for the year    |   |       | -       |   |                   |   | 302,516   |        |   |   | 302,516 |   |
| Foreign exchange movement    |   |       | -       |   |                   |   | 156,589   |        |   |   | 156,589 |   |
| Balance at December 31, 2013 |   | $          | -       |   |                   | $      | 852,267   |        |   | $ | 852,267 |   |
| Depreciation for the period  |   |       | -       |   |                   |   | 256,742   |        |   |   | 256,742 |   |
| Foreign exchange movement    |   |       | -       |   |                   |   | 84,117    |        |   |   | 84,117 |   |
| Balance at December 31, 2014 |   | $          | -       |   |                   | $      | 1,193,126 |        |   | $ | 1,193,126 |   |
|                         |   |       |    |   |                   |   |      |        |   |   |   |   |
| Net book value               |   |       |    |   |                   |   |      |        |   |   |   |   |
| At December 31, 2013         |   | $          | 759,274 |   |                   | $      | 352,485   |        |   | $ | 1,111,759 |   |
| At December 31, 2014         |   | $          | 828,950 |   |                   | $      | 114,291   |        |   | $ | 943,241 |   |

| d) | Authorized: |
|----|-------------|

----

|                                                         |   |                    |        |   |              |   |       |   |   |   |        |   |
|--------------------------------------------------------------|--------|-------------------------|-------------|--------|-------------------|--------|------------|--------|--------|--------|-------------|--------|
| Common Shares                                                |   |                    |        |   |              |   |       |   |   |   |        |   |
|                                                         |   |                    |        |   |              |   |       |   |   |   |        |   |
|                                                         |   | December 31, 2014  |        |   | December 31, 2013 |   |
|                                                         |   | Number                  |        |   | Amount            |   |       | Number |   |   | Amount      |   |
| Balance, beginning of year                                   |   |                    | 121,494,823 |   |              | $      | 26,062,481 |   |   |   | 100,613,330 |   |   | $ | 25,885,064 |   |
|   Non-brokered private placement                   |   |                    | 25,000,000  |   |              |   | 500,000    |   |   |   | -           |   |   |   | - |   |
|   Portion of units attributable to warrants issued |   |                    | -           |   |              |   | (160,725   | )      |   |   | -           |   |   |   | - |   |
|   Share issue costs and filing statement fees      |   |                    | -           |   |              |   | (9,340     | )      |   |   | -           |   |   |   | - |   |
|   Conversion of preferred shares to common shares  |   |                    | -           |   |              |   | -          |   |   |   | 20,881,493  |   |   |   | 177,417 |   |
| Balance, end of year                                         |   |                    | 146,494,823 |   |              | $      | 26,392,416 |   |   |   | 121,494,823 |   |   | $ | 26,062,481 |   |
|                                                         |   |                    |        |   |              |   |       |   |   |   |        |   |   |   |   |   |
|                                                         |   |                    |        |   |              |   |       |   |   |   |        |   |   |   |   |   |
| Warrants                                                     |   |                    |        |   |              |   |       |   |   |   |        |   |   |   |   |   |
|                                                         |   | December 31, 2014       |        |   | December 31, 2013 |   |
|                                                         |   | Number                  |        |   | Amount            |   |       | Number |   |   | Amount      |   |
| Balance, beginning of year                                   |   |                    | -           |   |              | $      | -          |   |   |   | 25,481,450  |   |   | $ | 5,860,183 |   |
|   Portion of units attributable to warrants issued |   |                    | 25,000,000  |   |              |   | 160,725    |   |   |   | -           |   |   |   | - |   |
|   Expiry of warrants                               |   |                    | -           |   |              |   | -          |   |   |   | (25,481,450 | )      |   |   | (5,860,183 | ) |
| Balance, end of year                                         |   |                    | 25,000,000  |   |              | $      | 160,725    |   |   |   | -           |   |   | $ | - |   |

| e) | Stock options: |
|----|----------------|

|                                                            |   |                     |         |   |               |              |       |                          |                   |   |                            |              |   |                                    |                   |
|-----------------------------------------------------------------|--------|--------------------------|--------------|--------|--------------------|-------------------|------------|-------------------------------|------------------------|--------|---------------------------------|-------------------|--------|-----------------------------------------|------------------------|
|                                                            |   | Range of exercise prices |         |   | Number outstanding |              |       | Weighted average life (years) |                   |   | Weighted average exercise price |              |   | Number exercisable on December 31, 2014 |                   |
| Stock options                                                   |   | $                        | 0.10 - $0.65 |   |               |              | 4,947,530  |                          |                   |   | 3.44                            |              |   | $                                       | 0.21                   |   |   |   | 4,797,530 |   |
|                                                            |   |                     |         |   |               |              |       |                          |                   |   |                            |              |   |                                    |                   |   |   |   |   |   |
|                                                            |   |                     |         |   |               |              |       |                          |                   |   |                            |              |   |                                    |                   |   |   |   |   |   |
|                                                            |   |                     |         |   |               | December 31, 2014 |       |                          | December 31, 2013      |   |
|                                                            |   |                     |         |   |               | Number of options |       |                          | Weighted Average Price |   |                            | Number of options |   |                                    | Weighted Average Price |   |
| Balance, beginning of period                                    |   |                     |         |   |               |              | 6,882,530  |                          |                   | $      | 0.31                            |              |   |                                    | 7,147,470              |   |   | $ | 0.32 |   |
|      Granted to officers and directors |   |                     |         |   |               |              | 2,850,000  |                          |                   | $      | 0.10                            |              |   |                                    | 400,000                |   |   | $ | 0.10 |   |
|      Forfeiture of stock options       |   |                     |         |   |               |              | (2,000,000 | )                             |                   | $      | 0.29                            |              |   |                                    | (527,205               | ) |   | $ | 0.31 |   |
|      Expiration of stock options       |   |                     |         |   |               |              | (2,785,000 | )                             |                   | $      | 0.30                            |              |   |                                    | (137,735               | ) |   | $ | 0.30 |   |
| Balance, end of period                                          |   |                     |         |   |               |              | 4,947,530  |                          |                   | $      | 0.21                            |              |   |                                    | 6,882,530              |   |   | $ | 0.31 |   |

----

|                                       |   | April 4, 2014 |        |
|--------------------------------------------|--------|---------------|-------------|
| Risk free interest rateExpected volatility |   |          | 1.52%186.86 | % |
| Expected life (years)                      |   |          | 5           |   |
| Expected dividend yield                    |   |          | 0           | % |
| Forfeiture rate                            |   |          | 36.79       | % |

|                                       |   | April 23, 2013 |        |
|--------------------------------------------|--------|----------------|-------------|
| Risk free interest rateExpected volatility |   |           | 1.13%143.19 | % |
| Expected life (years)                      |   |           | 5           |   |
| Expected dividend yield                    |   |           | 0           | % |
| Forfeiture rate                            |   |           | 2.80        | % |

| f) | Warrants: |
|----|-----------|

|                                                        |   |                |       |   |                   |   |   |                |   |   |                   |   |
|-------------------------------------------------------------|--------|---------------------|------------|--------|------------------------|--------|--------|---------------------|--------|--------|------------------------|--------|
|                                                        |   | December 31, 2014   |       |   | December 31, 2013      |   |
|                                                        |   | Number of  warrants |       |   | Weighted Average Price |   |   | Number of  warrants |   |   | Weighted Average Price |   |
| Balance, beginning of year                                  |   |                | -          |   |                   |   | -      |                |   |   | 29,997,404             |   |   | $ | 0.48 |   |
|      Warrants (Note 10(a))         |   |                | 25,000,000 |   |                   | $      | 0.05   |                |   |   | -                      |   |   |   | - |   |
|      Expiration of warrants        |   |                | -          |   |                   |   | -      |                |   |   | (25,481,450            | )      |   | $ | 0.65 |   |
|      Expiration of broker warrants |   |                | -          |   |                   |   | -      |                |   |   | (4,515,954             | )      |   | $ | 0.45 |   |
| Balance, end of year                                        |   |                | 25,000,000 |   |                   | $      | 0.05   |                |   |   | -                      |   |   | $ | 0.00 |   |

|                                                   |   | December 31, 2014 |      |   | December 31, 2013 |   |
|--------------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
| Balance, beginning of year                             |   | $                 | 9,358,217 |   |              | $      | 3,491,659 |   |
|      Expiry of warrants       |   |              | -         |   |              |   | 5,860,183 |   |
|      Share based compensation |   |              | 57,970    |   |              |   | 6,375 |   |
| Balance, end of year                                   |   | $                 | 9,416,187 |   |              | $      | 9,358,217 |   |

----

|                         |   |   |     |   |
|------------------------------|--------|--------|----------|--------|
| Balance at December 31, 2012 |   | $      | 682,074  |   |
| Change                       |   |   | (117,322 | )      |
| Discount and accretion       |   |   | (16,076  | )      |
| Balance at December 31, 2013 |   | $      | 548,676  |   |
| Change                       |   |   | 32,341   |   |
| Discount and accretion       |   |   | (23,537  | )      |
| Balance at December 31, 2014 |   | $      | 557,480  |   |

|                                                                                                                                       |   |              |       |   |              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                                                                                                       |   | December 31, 2014 |       |   | December 31, 2013 |   |
| Loss before income taxes                                                                                                                   |   | $                 | (3,229,683 | )      |              | $      | (2,450,830 | ) |
| Expected income tax recovery at 25.0% (2012 – 25.0%)                                                                                 |   |              | (807,000   | )      |              |   | (612,707 | ) |
| Non-deductible items and other                                                                                                             |   |              | 5,000      |   |              |   | 1,955 |   |
| Share based compensation                                                                                                                   |   |              | 15,000     |   |              |   | 1,594 |   |
| Change in prior year estimates                                                                                                             |   |              | 157,000    |   |              |   | 376,728 |   |
| Tax rate differences (mostly comprised of difference from effective Argentina tax rate of 35% and effective United States tax rate of 34%) |   |              | (285,000   | )      |              |   | (460,387 | ) |
| Foreign exchange                                                                                                                           |   |              | 3,700,109  |   |              |   | 3,641,715 |   |
| Change in deferred tax assets not recognized                                                                                               |   |              | (2,758,109 | )      |              |   | (2,719,640 | ) |
| Total income taxes                                                                                                                         |   | $                 | 72,471     |   |              | $      | 229,258 |   |

----

|                                            |   |              |       |   |              |   |
|-------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                            |   | December 31, 2014 |       |   | December 31, 2013 |   |
| Canada                                          |   |              |       |   |              |   |
| Share issuance costs                            |   | $                 | 218,000    |   |              | $      | 272,165 |   |
| Unrealized foreign exchange gain                |   |              | (148,517   | )      |              |   | (148,517 | ) |
| Non-capital losses available for future periods |   |              | 420,000    |   |              |   | 285,289 |   |
| Deferred tax assets not recognized              |   |              | (489,483   | )      |              |   | (408,937 | ) |
| Canada deferred tax asset                       |   | $                 | -          |   |              | $      | - |   |
|  Argentina                                 |   |              |       |   |              |   |   |   |
| Property and equipment                          |   | $                 | -          |   |              | $      | 3,215,830 |   |
| VAT receivable                                  |   |              | 300,000    |   |              |   | 299,107 |   |
| Non-capital losses available for future periods |   |              | 1,625,000  |   |              |   | 31,321 |   |
| Contingency accrual and other                   |   |              | 35,000     |   |              |   | 1,464,767 |   |
| Deferred tax assets not recognized              |   |              | (1,960,000 | )      |              |   | (5,011,025 | ) |
| Argentina deferred tax asset                    |   | $                 | -          |   |              | $      | - |   |
| United States                                   |   |              |       |   |              |   |   |   |
| Property and equipment                          |   | $                 | 16,000     |   |              | $      | 12,780 |   |
| Non-capital losses available for future periods |   |              | 1,247,000  |   |              |   | 1,037,850 |   |
| Deferred tax assets not recognized              |   |              | (1,263,000 | )      |              |   | (1,050,630 | ) |
| United States deferred tax asset                |   | $                 | -          |   |              | $      | - |   |
| Total deferred tax asset                        |   | $                 | -          |   |              | $      | - |   |

----

|           |   |   |      |   |      |   |      |          |   |   |      |   |
|----------------|--------|--------|-----------|--------|-----------|--------|-----------|---------------|--------|--------|-----------|--------|
| Year of Expiry |   | Canada |      |   | Argentina |   |      | United States |   |   | Total     |   |
| 2016           |   |   | -         |   |      |   | 239,129   |          |   |   | -         |   |   |   | 239,129 |   |
| 2017           |   |   | -         |   |      |   | 684,812   |          |   |   | -         |   |   |   | 684,812 |   |
| 2018           |   |   | -         |   |      |   | 2,622,985 |          |   |   | -         |   |   |   | 2,622,985 |   |
| 2029           |   |   | -         |   |      |   | 1,095,091 |          |   |   | 480,811   |   |   |   | 1,575,902 |   |
| 2030           |   |   | -         |   |      |   | -         |          |   |   | 267,889   |   |   |   | 267,889 |   |
| 2031           |   |   | 1,141,156 |   |      |   | -         |          |   |   | 255,155   |   |   |   | 1,396,311 |   |
| 2032           |   |   | -         |   |      |   | -         |          |   |   | 1,147,066 |   |   |   | 1,147,066 |   |
| 2033           |   |   | -         |   |      |   | -         |          |   |   | 901,583   |   |   |   | 901,583 |   |
| 2034           |   |   | 538,356   |   |      |   | -         |          |   |   | 615,259   |   |   |   | 1,153,615 |   |
| Total          |   | $      | 1,679,512 |   |      | $      | 4,642,017 |          |   | $      | 3,667,763 |   |   | $ | 9,989,292 |   |

|   | Generation year |   | Amount |    |   | Expiration year |   |
|--------|-----------------|--------|--------|---------|--------|-----------------|--------|
|   | 2011            |   | $      | 45,642  |   |            |   | 2020 |   |
|   | 2012            |   | $      | 117,838 |   |            |   | 2021 |   |
|   | 2013            |   | $      | 105,776 |   |            |   | 2022 |   |
|   | 2014            |   | $      | 125,646 |   |            |   | 2023 |   |
|   | Total           |   | $      | 394,902 |   |            |   |   |   |

----

|                     |   |               |    |   |               |   |
|--------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                     |   | Years ended   |    |
|                     |   | December 31,  2014 |    |   | December 31,  2013 |   |
| Salaries and benefits    |   |               | 197,188 |   |               | $      | 540,845 |   |
| Consulting fees          |   |               | 161,734 |   |               |   | 297,812 |   |
| Share based compensation |   |               | 53,400  |   |               |   | 5,580 |   |
|                     |   | $                  | 412,322 |   |               | $      | 844,237 |   |

|  | · | Level 1:  inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.  Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 2:  inputs, other than quoted prices, that are observable, either directly or indirectly.  Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and volatility factors, which can be observed or corroborated in the market place. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 3:  inputs are less observable, unavoidable or where the observable data does not support the majority of the instruments' fair value. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                    |   |              |    |   |       |   |    |              |   |   |       |   |
|-------------------------------------------------------------------------|--------|-------------------|---------|--------|------------|--------|---------|-------------------|--------|--------|------------|--------|
|                                                                    |   | December 31, 2014 |    |   |       |   |    | December 31, 2013 |   |   |       |   |
|                                                                    |   | Carrying amount   |    |   | Fair value |   |    | Carrying amount   |   |   | Fair value |   |
|                                                                    |   | $                 |    |   | $          |   |    | $            |   |   | $          |   |
| Financial Assets                                                        |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|     FVTPL                                                |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|       Cash and equivalents (Level 1)           |   |              | 115,246 |   |       |   | 115,246 |              |   |   | 2,364,062  |   |   |   | 2,364,062 |   |
|                                                                    |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|     Available for sale                                   |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|       Performance bond (Level 1)               |   |              | 336,850 |   |       |   | 336,850 |              |   |   | 340,183    |   |   |   | 340,183 |   |
|       Marketable securities (Level 1)          |   |              | -       |   |       |   | -       |              |   |   | 47,828     |   |   |   | 47,828 |   |
|                                                                    |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|     Loans and receivables                                |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|       Accounts receivable                      |   |              | 69,554  |   |       |   | 69,554  |              |   |   | 121,084    |   |   |   | 121,084 |   |
|                                                                    |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
| Financial Liabilities                                                   |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|     Other financial liabilities                          |   |              |    |   |       |   |    |              |   |   |       |   |   |   |   |   |
|       Accounts payable and accrued liabilities |   |              | 729,691 |   |       |   | 729,691 |              |   |   | 274,364    |   |   |   | 274,364 |   |

| j. | Currency risk |
|----|---------------|

| Cash and equivalents                     |   | $ | 1,576   |   |
|------------------------------------------|--------|---|---------|--------|
| Accounts payable and accrued liabilities |   | $ | 149,778 |   |

| Cash and equivalents                     |   | $ | 11,117  |   |
|------------------------------------------|--------|---|---------|--------|
| Marketable securities                    |   | $ | -       |   |
| Performance bond                         |   | $ | 336,850 |   |
| Accounts receivable                      |   | $ | 61,560  |   |
| Other credits                            |   | $ | 95,966  |   |
| Accounts payable and accrued liabilities |   | $ | 486,202 |   |

----

|                                           |   | Impact on net loss andcomprehensive loss |    |
|------------------------------------------------|--------|------------------------------------------|---------|
| U.S. Dollar Exchange rate – 10% increase |   | $                                        | (11,277 | ) |
| U.S. Dollar Exchange rate – 10% decrease |   | $                                        | 11,277  |   |

|                                              |   | Impact on net loss andcomprehensive loss |    |
|---------------------------------------------------|--------|------------------------------------------|---------|
| Argentine Peso Exchange rate – 10% increase |   | $                                        | (63,492 | ) |
| Argentine Peso Exchange rate – 10% decrease |   | $                                        | 63,492  |   |

----

| iv. | Price risk |
|-----|------------|

|          |   |              |      |   |              |   |
|---------------|--------|-------------------|-----------|--------|-------------------|--------|
|          |   | December 31, 2014 |      |   | December 31, 2013 |   |
| Canada        |   | $                 | 118,729   |   |              | $      | 2,876,489 |   |
| Argentina     |   |              | 2,403,161 |   |              |   | 2,103,649 |   |
| United States |   |              | 4,817     |   |              |   | 22,629 |   |
|          |   | $                 | 2,526,707 |   |              | $      | 5,002,767 |   |

|          |   |              |       |   |              |   |
|---------------|--------|-------------------|------------|--------|-------------------|--------|
|          |   | December 31, 2014 |       |   | December 31, 2013 |   |
| Canada        |   | $                 | (546,890   | )      |              | $      | 1,909,043 |   |
| Argentina     |   |              | (2,096,180 | )      |              |   | (3,668,012 | ) |
| United States |   |              | (659,084   | )      |              |   | (921,119 | ) |
|          |   | $                 | (3,302,154 | )      |              | $      | (2,680,088 | ) |

|  | i) | On March 27, 2007, the Company signed a definitive lease purchase agreement with FK Minera S.A. to acquire a 100% interest in the Bajo Pobré gold property located in Santa Cruz Province, Argentina.  The Company may earn up to a 100% equity interest in the Bajo Pobré property by making cash payments and exploration expenditures over a five-year earn-in period. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Year of the Agreement    | Payment to FK Minera S.A. |   | Exploration Expenditures Required | Ownership |
|--------------------------|---------------------------|--------|-----------------------------------|-----------|
| First year – 2007  | US$50,000                 | PAID   | US$250,000                        | 0%        |
| Second year – 2008 | US$30,000                 | PAID   | US$250,000                        | 0%        |
| Third year –2009   | US$50,000                 | PAID   | -                                 | 51%       |
| Fourth year – 2010 | US$50,000                 | PAID   | -                                 | 60%       |
| Fifth year – 2011  | US$50,000                 | PAID   | -                                 | 100%      |

|  | j) | In March 2007, the Company was the successful bidder for the exploration and development rights to the La Josefina project from Fomicruz.  On July 24, 2007, the Company entered into an agreement with Fomicruz pursuant to which the Company agreed to invest a minimum of US$6 million in exploration and development expenditures over a four year period, including US$1.5 million before July 2008. The agreement provides that, in the event that a positive feasibility study is completed on the La Josefina property, a Joint Venture Corporation ("JV Corporation") would be formed by the Company and Fomicruz. A revised schedule for exploration and development of the La Josefina project was submitted in writing to Fomicruz and was adopted on May 3, 2011, mandating that an economic feasibility study and production decision be made by the Company for the La Josefina project by the end of 2013. The Company would own 91% of the joint venture company and Fomicruz would own the remaining 9%.  |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | k) | On June 30, 2010, a former director and accounting consultant ("the Consultant") to the Company severed his business relationship with the Company. On August 5, 2010 the Consultant claimed that since 2006, he was actually an employee of, not a consultant to, CCSA. On September 7, 2010, the Argentine Ministry of Labor, Employment and Social Security filed a Certificate of Notice on CCSA and the Company indicating that a representative from CCSA and the Company must appear before a mediator to address the Consultant's claims. The certificates of notice stated the value of the Consultant's claim against the Company at 500,000 pesos (US$126,811). |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | l) | On October 31, 2011, the Company signed an agreement with the owners of the Piedra Labrada Ranch for the use and lease of facilities on the same premises as the Company's La Josefina facilities.  The initial term was for three years beginning November 1, 2011 and ended on October 31, 2014, including annual commitments of $60,000.  The Company has extended this agreement for one year. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | m) | On April 1, 2012 the Company entered into a 9 month agreement with the surface rights holder of the Piedra Grande Ranch, located in Santa Cruz province, Argentina for access and use of their property. The agreement allows for the Company to engage in exploration activity as well as use the property and the facilities to house and store the Company's equipment and personnel.  The Company agreed to consideration of US$3,000 per month under this agreement.   The initial term of the agreement ended on December 31, 2012. The Company extended the agreement until December 31, 2013.  The Company's total obligation under this agreement for the year ended December 31, 2013 was US$36,000.  The Company did not extend this agreement for another year. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | n) | On May 3, 2012, the Company entered into an exploration agreement with Eldorado Gold Corp. ("Eldorado") for the purpose of exploring the Company's exploration projects in Santa Cruz province, Argentina.  The agreement classifies projects into three stages:  Stage I is an early exploration project that is not ready for exploration drilling; Stage II is a project that is drill ready, or being drilled; Stage III requires that the Company and its exploration partner jointly create a new company where by the Company will retain a 25% interest in the new company and Eldorado Gold Corp., or a nominee of their choice, will be granted a 75% interest in the new company.  The Company had two Stage II projects, Bajo Pobré and La Valenciana, and one new Stage I project, La Josefina. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | o) | On September 1, 2012, the Company moved into new office space.  The Company signed a new office lease with a three-year term, which included the first four months for free.  In December 2013, the Company moved out of the office space and terminated the lease.  The Company included in accounts payable and accrued liabilities as at December 31, 2013 US$21,000 for settlement of a lease break fee. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | p) | On October 1, 2012, the Company entered into an agreement with the surface owner of the Bajo Pobré Ranch in Santa Cruz province, Argentina.  As consideration for access to the Bajo Pobré property and use of the Bajo Pobré Ranch, the Company agreed to pay the owner $5,000 per month over a period of 9 months ending on June 30, 2013.  The Company's total commitment for 2013 under this agreement was US$30,000.  The Company did not extend the lease for an additional year. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | q) | On November 1, 2012, the Company entered into an agreement with Fomicruz for the exploration of the La Valenciana project in Santa Cruz province, Argentina.  The agreement is for a total of 7 years, expiring on October 31, 2019.  The 7 years is broken into 3 economic periods, at the end of each period the Company will have the option of reporting its results to Fomicruz or terminating the agreement. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase an additional 10% in the JV corporation, Fomicruz must reimburse the Company for 10% of the exploration expenses made by the Company during the exploration period; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase the next 10% interest in the JV corporation, Fomicruz must reimburse the Company for 20% of the exploration expenses made by the Company during the exploration period; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To purchase a final additional 20% interest in the JV Corporation, Fomicruz must reimburse the Company for 25% of the exploration expenses made by the Company during the exploration period; bringing Fomicruz's total ownership interest in the JV Corporation to 49%. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | r) | On October 3, 2013, the Tax Authorities of the Santa Cruz Province, started a claim requesting omitted stamp tax on a) the Exploration Agreement signed during fiscal year 2012 (Amendment of "La Josefina" and "La Valenciana" contract) and b) Loan Agreement signed between the parent Companies and CCSA.  Request is in the amount of $248,673.  This amount does not include potential fines.  An accrual for this amount has been included in taxes payable in the consolidated statements of financial position. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | s) | On March 26, 2014, the Company signed an agreement with the surface rights holder of the La Valenciana Ranch, located in Santa Cruz Province, Argentina for access and use of their property.  The agreement allows for the Company to engage in exploration activity.  The term is for five years, beginning April 1, 2014 and ending March 31, 2019, including annual commitments of $36,000.  The Company's total commitment for 2014 was US$24,000. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | December 31, |      |   | December 31, |   |
|----------------------|--------|--------------|-----------|--------|--------------|--------|
|                 |   | 2014         |      |   | 2013         |   |
| Shareholders' equity |   | $            | 1,465,640 |   |         | $      | 4,285,821 |   |

----