# EDGAR Filing Document

**Accession Number:** 0001407583
**File Stem:** 0001493152-23-001341
**Filing Date:** 2023-1
**Character Count:** 741513
**Document Hash:** 150754452110954b0ea2b0040d214f45
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-001341.hdr.sgml**: 20230113

**ACCESSION NUMBER**: 0001493152-23-001341

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 131

**FILED AS OF DATE**: 20230113

**DATE AS OF CHANGE**: 20230113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bunker Hill Mining Corp.
- **CENTRAL INDEX KEY:** 0001407583
- **STANDARD INDUSTRIAL CLASSIFICATION:** METAL MINING [1000]
- **IRS NUMBER:** 320196442
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-268505
- **FILM NUMBER:** 23527089

**BUSINESS ADDRESS:**
- **STREET 1:** 82 RICHMOND STREET EAST
- **STREET 2:** TORONTO
- **CITY:** ONTARIO
- **STATE:** A6
- **ZIP:** M5C 1P1
- **BUSINESS PHONE:** 416-477-7771

**MAIL ADDRESS:**
- **STREET 1:** 82 RICHMOND STREET EAST
- **STREET 2:** TORONTO
- **CITY:** ONTARIO
- **STATE:** A6
- **ZIP:** M5C 1P1

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LIBERTY SILVER CORP
- **DATE OF NAME CHANGE:** 20100406

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Liberty Silver Corp
- **DATE OF NAME CHANGE:** 20100212

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Lincoln Mining Corp
- **DATE OF NAME CHANGE:** 20070723

?xml version='1.0' encoding='ASCII'?

**As filed with the U.S. Securities and Exchange Commission on January 13, 2023.**

**Registration No. 333-268505**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**AMENDMENT NO. 2** **TO**

**FORM S-1**

**REGISTRATION STATEMENT**

**UNDER THE SECURITIES ACT OF 1933**

**BUNKER HILL MINING CORP.**

(Exact name of registrant as specified in its charter)

**<u>nevada</u>**

(State or other jurisdiction of incorporation or organization)

<u>1044</u> <u>32-0196442</u> <br> (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number)

**<u>82 Richmond Street East, Toronto, Ontario, Canada M5C 1P1</u>**

(Address, including zip code, of Registrant's principal business offices)

**<u>416-477-7771</u>**

(Registrant's telephone number, including area code)

**J.P. Galda**

**c/o J.P. Galda & Co., 40 E. Lancaster Avenue LTW 22, Ardmore, PA 19003**

**Telephone: 215-815-1534**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Copies of Communications to:

J.P. Galda & Co. Attn: J.P. Galda, Esq. 40 East Montgomery Avenue LTW 220 Ardmore, PA 19003 Tel: (215) 815-1534 Email: jpjalda@jpgaldaco.com Larry W. Nishnick DLA Piper LLP (US) 4365 Executive Drive, Suite 1100 San Diego, CA 92121 Tel: (858) 677-1400 Fax: (858) 677-1401

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.**

The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

**Subject to Completion, Dated January 13, 2023**

**PRELIMINARY PROSPECTUS**

**BUNKER HILL MINING CORP.**

**Minimum Offering $5,200,000 (● Common Shares)**

**Maximum Offering $10,300,000 (● Common Shares)**

**Up to ● Common Shares Underlying Placement Agent Warrants**

This is a commercially reasonable best efforts public offering of a minimum of ● Common Shares (the "**Minimum Offering**", which assumes no exercise of the Placement Agent's over-allotment option, as described below), par value $0.00001 per share (the "**Common Shares**"), and a maximum of ● Common Shares (which maximum may be increased by up to 15% if the Placement Agents' over-allotment option, described below, is exercised, as increased, the "**Maximum Offering**") of Bunker Hill Mining Corp. ("**Bunker Hill**" or the "**Company**"). This is based on a Minimum Offering size of approximately $5,200,000 and a Maximum Offering size of $10,300,000, determined based on the minimum and maximum offering size thresholds in the Canadian offering documentation of C$7,000,000 and C$13,800,000 respectively. The offering is being made concurrently in the United States and in each of the provinces in Canada, other than Québec. Any sales of securities in Canada will reduce the amount offered in the United States and accordingly any sales of securities in the United States will reduce the amount offered in Canada, Sales of securities in the United States and Canada will be aggregated for the purposes of determining the Minimum Offering and the Maximum Offering.

No subscriptions will be accepted until the closing of the offering, which will not occur prior to the Minimum Offering being met.

The Common Shares are listed for trading on the Canadian Securities Exchange (the "**CSE**") under the trading symbol "BNKR" and on the OTCQB Venture Market (the "**OTCQB**") under the symbol "BHLL". The closing price of the Common Shares on January **●**, 2023, being the last trading day of the Common Shares prior to filing this Prospectus, was C$**●** on the CSE, and $**●** on the OTCQB. The actual public offering price per Common Share will be determined between us, the Placement Agents, and the investors in the offering. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of the final offering price.

**An investment in our Common Shares involves a high degree of risk. Before buying any securities you should carefully read the discussion of the material risks of investing in our common stock in "Risk Factors" beginning on page 12 of this prospectus. You should not invest in the Common Shares unless you can afford a complete loss of your investment.**

Pursuant to a placement agency agreement, dated as of January **●**, 2023 (the "**Agency Agreement**"), we have engaged Roth Capital Partners, LLC (the "**U.S. Placement Agent**"), to act as our exclusive placement agent to solicit offers to purchase the securities offered by this prospectus on a commercially reasonable best efforts basis in the U.S. Also pursuant to the Agency Agreement, we have engaged Echelon Wealth Partners and Laurentian Securities (together, the "**Canadian Placement Agents**" and together with the U.S. Placement Agent, the "**Placement Agents**"), to act as our exclusive placement agents to solicit offers to purchase securities on a commercially reasonable best efforts basis in Canada. This Offering and the Canadian Offering will terminate on the same date, which is the earlier of (i) the first date that we enter into securities purchase agreements to sell the maximum securities offered hereby, or (ii) 90 days after the effective date of the registration statement of which this prospectus forms a part. The Placement Agents have no obligation to purchase any of the securities from us or to arrange for the purchase or sale of any specific number or dollar amount of the securities. Because this is a "best efforts offering", the actual public amount, Placement Agents' fee, and proceeds to us, if any, are not presently determinable and may be substantially less than the total maximum offering amounts set forth above and throughout this prospectus. We have granted the Placement Agents an option up to 30 days from and including the closing date to purchase up to ___________ additional shares of common stock on the same terms and conditions as set forth above to cover over-allotments, if any, referred to as an "over-allotment option" in this prospectus.

We have agreed to pay the Placement Agents a cash placement agent fee set forth in the table below equal to 6% of the aggregate gross proceeds of the Offering (3% or 2 % with respect to certain excluded investors specified in the placement agency agreement) and to provide certain other compensation to the Placement Agents. See "Plan of Distribution" beginning on page 65 of this prospectus for more information regarding these arrangements.

**NEITHER THE SECURITIES AND EXCHANGE COMMISSION ("SEC") NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.**

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Common Share (3)** | **Total (Minimum Offering)** | **Total (Maximum Offering)** |
| Public offering price | $| $| $|
| Placement Agent fees (1) | $| $| $|
| Proceeds to us before offering expenses (2) | $| $| $|

---

(1) Does
 not reflect additional compensation to the Placement Agents in the form of twenty-four month warrants to purchase Common
 Shares at an exercise price equal to 100% of the public offering price. We have also agreed to reimburse the Placement Agents
 for certain expenses. See "Plan of Distribution" on page 65 of this prospectus for a description of these arrangements.

(2) We
 estimate the total expenses of this offering will be approximately C$0.6 million.

(3) Based
 on an assumed offering price of $__ per Common Share. The final offering price per Common Share will be determined by
 the Company, the Placement Agents and the investors in this offering and may be a discount to the market price of the Common Shares.

Delivery of the Common Shares is expected to be made on or about January **●**, 2023, subject to satisfaction of customary closing conditions.

**Roth Capital Partners**

**Dated: January ●, 2023**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [ABOUT THIS PROSPECTUS](#ba_001) | 4 |
| [CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION](#ba_002) | 4 |
| [PROSPECTUS SUMMARY](#ba_003) | 5 |
| [SUMMARY OF THE OFFERING](#ba_004) | 10 |
| [SUMMARY OF FINANCIAL INFORMATION](#ba_005) | 11 |
| [RISK FACTORS](#ba_006) | 12 |
| [DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS](#ba_007) | 27 |
| [USE OF PROCEEDS](#ba_008) | 28 |
| [MARKET INFORMATION FOR SECURITIES AND DIVIDEND POLICY](#ba_009) | 28 |
| [DILUTION](#ba_010) | 29 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ba_011) | 30 |
| [DESCRIPTION OF THE COMPANY'S BUSINESS AND PROPERTIES](#ba_012) | 38 |
| [DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE](#ba_013) | 49 |
| [EXECUTIVE COMPENSATION](#ba_014) | 53 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#ba_015) | 59 |
| [DESCRIPTION OF SECURITIES](#ba_016) | 60 |
| [PRINCIPAL ACCOUNTING FEES AND SERVICES](#ba_017) | 62 |
| [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS](#ba_018) | 63 |
| [PLAN OF DISTRIBUTION](#ba_020) | 65 |
| [INTERESTS OF NAMED EXPERTS AND COUNSEL](#ba_021) | 67 |
| [DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT LIABILITIES](#ba_022) | 68 |
| [WHERE YOU CAN FIND MORE INFORMATION](#ba_023) | 69 |
| [INDEX TO FINANCIAL STATEMENTS](#ba_024) | F-1 |

---

**ABOUT THIS PROSPECTUS**

The registration statement of which this prospectus forms a part has been filed by us with the Securities and Exchange Commission (the "SEC"), and includes exhibits that provide more detail of the matters discussed in this prospectus. You should read this prospectus and the related exhibits filed with the SEC, together with the additional information described under the headings "Where You Can Find Additional Information." You should not assume that the information contained in this prospectus is accurate on any date subsequent to the date set forth on the front cover of this prospectus, even though this prospectus is delivered or Common Shares are sold or otherwise disposed of on a later date.

Neither we nor the Placement Agents have authorized anyone to give any information or to make any representation to you other than those contained in this prospectus or in any free writing prospectus we may authorize to be delivered or made available to you. You must not rely upon any information or representation not contained in this prospectus.

For investors outside the United States: We have not and the Placement Agents have not, done anything that would permit this offering, or possession or distribution of this prospectus, in any jurisdiction where action for that purpose is required, other than in the United States. Persons who come into possession of this prospectus in jurisdictions outside the United States are required to inform themselves about, and to observe, any restrictions as to the offering and the distribution of this prospectus applicable to those jurisdictions.

**There must be a current state blue sky registration or exemption from such registration for you to purchase or sell these securities.** 

Each state has its own securities laws, often called "blue sky" laws, which (i) limit sales of securities to a state's residents unless the securities are registered in that state or qualify for an exemption from registration, and (ii) govern the reporting requirements for broker-dealers doing business directly or indirectly in the state. Before a security is sold in a state, there must be a registration in place to cover the transaction, or the transaction must be exempt from registration. The applicable broker of such transaction must also be registered in that state.

We cannot guarantee that we will be able to effect any required blue sky registrations or qualifications. You will have the ability to purchase these securities only if such securities have been qualified for sale under the laws of the state where the offer and sale is to occur, or if they fall within an exemption from registration. We will not knowingly sell any securities to purchasers in jurisdictions in which such sales are not registered or otherwise qualified for issuance or exempt from registration. As a result, there may be significant state blue sky law restrictions on the ability of investors to sell, and on purchasers to buy, our securities.

**CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION**

Unless otherwise indicated, all references to "$, US$" or "dollars" in this Prospectus refer to United States dollars and all references to "C$" in this Prospectus refer to Canadian dollars.

The following table sets forth the rate of exchange for the United States dollar expressed in Canadian dollars in effect at the end of the periods indicated, the average of exchange rates in effect on the last day of each month during such periods, and the high and low exchange rates during such periods based on the daily average exchange rate as reported by the Bank of Canada for conversion of United States dollars into Canadian dollars.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended September 30,** | **Quarter Ended September 30,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| Average rate of period |  | 1.3056 |  | 1.2535 |  | 1.3415 |
| Rate at end of period |  | 1.3707 |  | 1.2678 |  | 1.2732 |
| High for period |  | 1.3726 |  | 1.2942 |  | 1.4496 |
| Low for period |  | 1.2753 |  | 1.2040 |  | 1.2718 |

---

The daily average exchange rate on January **●**, 2023 as reported by the Bank of Canada for the conversion of United States dollars into Canadian dollars was US$1.00 equals $**●**.

**PROSPECTUS SUMMARY**

*This summary description about us and our business highlights selected information contained elsewhere in this Prospectus To understand this offering fully, you should read carefully the entire Prospectus, including "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." Unless the context indicates or suggests otherwise, references to "we," "our," "us," the "Company," or the "Registrant" refer to Bunker Hill Mining Corp., a Nevada corporation, and its subsidiaries. References to "$" refer to monetary amounts expressed in U.S. dollars. All references to "C$" refer to monetary amounts expressed in Canadian dollars.*

 

**Note Regarding Financial Statements**

On February 12, 2021, the Company's Board of Directors (the "**Board**") approved a change in our fiscal year end from the last day of June to a calendar fiscal year ending on the last day of December of each year, effective January 1, 2021. In this Prospectus, references to "fiscal year" refer to years ending December 31, 2021 and June 30, 2020. References in this prospectus to the "transition period" refer to the six-month period ended December 31, 2020.

**Our Business**

 ****

*Overview*

The Company's sole focus is the development and restart of its 100% owned flagship asset, the Bunker Hill mine (the "Mine"). The Mine remains the largest single producing mine by tonnage in the Silver Valley region of northwest Idaho, producing over 165 million ounces of silver and 5 million tons of base metals between 1885 and 1981. The Bunker Hill Mine is located within Operable Unit 2 of the Bunker Hill Superfund site (EPA National Priorities Listing IDD048340921), where cleanup activities have been completed.

In early 2020, a new management team comprised of former executives from Barrick Gold Corp. assumed leadership of the Company. Since that time, the Company has conducted multiple exploration campaigns, published multiple economic studies, purchased the Bunker Hill Mine, purchased a process plant, and advanced the rehabilitation and development of the Mine. The Company is focused on completing the financing for, and execution of, a potential restart of operations at the Mine.

*Lease and Purchase of the Bunker Hill Mine*

The Company purchased the Bunker Hill Mine in January 2022, as described below.

Prior to purchasing the Mine, the Company had entered into a series of agreements with Placer Mining Corporation ("Placer Mining"), the prior owner, for the lease and option to purchase the Mine. The first of these agreements was announced on August 28, 2017, with subsequent amendments and/or extensions announced on November 1, 2019, July 7, 2020, and November 20, 2020.

Under the terms of the November 20, 2020 amended agreement (the "Amended Agreement"), a purchase price of $7,700,000 was agreed, with $5,700,000 payable in cash (with an aggregate of $300,000 to be credited toward the purchase price of the Mine as having been previously paid by the Company) and $2,000,000 in Common Shares of the Company. The Company agreed to make an advance payment of $2,000,000, credited toward the purchase price of the Mine, which had the effect of decreasing the remaining amount payable to purchase the Mine to an aggregate of $3,400,000 payable in cash and $2,000,000 in Common Shares of the Company.

The Amended Agreement also required payments pursuant to an agreement with the U.S. Environmental Protection Agency ("EPA") whereby for so long as the Company leases, owns and/or occupies the Mine, the Company would make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA's claim for historical water treatment cost recovery in accordance with the Settlement Agreement reached with the EPA in 2018. Immediately prior to the purchase of the Mine, the Company's liability to EPA in this regard totaled $11,000,000.

The Company completed the purchase of the Bunker Hill Mine on January 7, 2022. The terms of the purchase price were modified to $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of Common Shares. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see "EPA 2018 Settlement Agreement & 2021 Amended Settlement Agreement" section below).

*EPA 2018 Settlement Agreement & 2021 Amended Settlement Agreement*

Bunker Hill entered into a Settlement Agreement and Order on Consent with the EPA on May 15, 2018. This agreement limits the Company's exposure to the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") liability for past environmental damage to the mine site and surrounding area to obligations that include:

● Payment of $20,000,000 for historical water treatment cost recovery for amounts paid by the EPA from 1995 to 2017

● Payment for water treatment services provided by the EPA at the Central Treatment Plant ("CTP") in Kellogg, Idaho until such time that Bunker Hill either purchases or leases the CTP or builds a separate EPA-approved water treatment facility

● Conducting a work program as described in the Ongoing Environmental Activities section of this study

In December 2021, in conjunction with its intention to purchase the mine complex, the Company entered into an amended Settlement Agreement (the "Amendment") between the Company, Idaho Department of Environmental Quality, US Department of Justice and the EPA modifying the payment schedule and payment terms for recovery of historical environmental response costs at Bunker Hill Mine incurred by the EPA. With the purchase of the mine subsequent to the end of the period, the remaining payments of the EPA cost recovery liability would be assumed by the Company, resulting in a total of $19,000,000 liability to the Company, an increase of $8,000,000. The new payment schedule included a $2,000,000 payment to the EPA within 30 days of execution of this amendment, which was made.

The remaining $17,000,000 will be paid on the following dates:

---

| | |
|:---|:---|
| **Date** | **Amount** |
| November 1, 2024 | $3000000 |
| November 1, 2025 | $3000000 |
| November 1, 2026 | $3000000 |
| November 1, 2027 | $3000000 |
| November 1, 2028 | $3000000 |
| November 1, 2029 | $2,000,000 plus accrued interest |

---

The resumption of payments in 2024 were agreed in order to allow the Company to generate sufficient revenue from mining activities at the Bunker Hill Mine to address remaining payment obligations from free cash flow.

The changes in payment terms and schedule were contingent upon the Company securing financial assurance in the form of performance bonds or letters of credit deemed acceptable to the EPA totaling $17,000,000, corresponding to the Company's cost recovery obligations to be paid in 2024 through 2029 as outlined above. Should the Company fail to make its scheduled payment, the EPA can draw against this financial assurance. The amount of the bonds or letters of credit will decrease over time as individual payments are made. If the Company failed to post the final financial assurance within 180 days of the execution of the Amendment, the terms of the original agreement would be reinstated.

During the quarter ended June 30, 2022, the Company was successful in obtaining the financial assurance. Specifically, a $9,999,000 payment bond and a $7,001,000 letter of credit were secured and provided to the EPA. This milestone provides for the Company to recognize the effects of the change in terms of the EPA liability as outlined in the December 20, 2021, agreement. Once the financial assurance was put into place, the restructuring of the payment stream under the Amendment occurred with the entire $17,000,000 liability being recognized as long-term in nature. The aforementioned payment bond and letter of credit were secured by $2,475,000 and $7,001,000 of cash deposits, respectively as of September 30, 2022.

During October 2022, the Company reported that it had been successful in securing a new payment bond to replace the aforementioned $7,001,000 letter of credit, in two stages. Initially, the letter of credit was reduced to $2,000,001 as a result of a new $5,000,000 payment bond obtained through an insurance company. The collateral for the new payment bond is comprised of a $2,000,000 letter of credit and land pledged by third parties, with whom the Company has entered into a financing cooperation agreement that contemplates a monthly fee of $20,000 (payable in cash or common shares of the Company, at the Company's election). The new payment bond is scheduled to increase to $7,001,000 (from $5,000,000) upon the advance of the multi-metals Stream from Sprott Private Resource Streaming & Royalty Corp.

*Project Finance Package with Sprott Private Resource Streaming & Royalty Corp.*

On December 20, 2021, the Company executed a non-binding term sheet outlining a $50,000,000 project finance package with Sprott Private Resource Streaming and Royalty Corp. ("Royalty"). The non-binding term sheet with SRSR outlined a project financing package that the Company expects to fulfill the majority of its funding requirements to restart the Mine. The term sheet consisted of an $8,000,000 royalty convertible debenture (the "RCD"), a $5,000,000 convertible debenture (the "CD1"), and a multi-metals stream of up to $37,000,000 (the "Stream"). The CD1 was subsequently increased to $6,000,000, increasing the project financing package to $51,000,000.

On June 17, 2022, the Company consummated a new $15,000,000 convertible debenture (the "CD2"). As a result, total potential funding from SRSR was further increased to $66,000,000 including the RCD, CD1, CD2 and the Stream (together, the "Project Financing Package").

The Company closed the $8,000,000 RCD on January 7, 2022. The RCD bears interest at an annual rate of 9.0%, payable in cash or Common Shares at the Company's option, until such time that SRSR elects to convert a royalty, with such conversion option expiring at the earlier of advancement of the Stream or July 7, 2023 (subsequently amended as described below). In the event of conversion, the RCD will cease to exist and the Company will grant a royalty for 1.85% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company's 2021 ground geophysical survey (the "SRSR Royalty"). A 1.35% rate will apply to claims outside of these areas. The RCD was initially secured by a share pledge of the Company's operating subsidiary, Silver Valley, until a full security package was put in place concurrent with the consummation of the CD1. In the event of non-conversion, the principal of the RCD will be repayable in cash.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the RCD, including an amendment of the maturity date from July 7, 2023, to March 31, 2025. The parties also agreed to a Royalty Put Option such that in the event the RCD is converted into a royalty as described above, the holder of the royalty will be entitled to resell the royalty to the Company for $8,000,000 upon default under the CD1 or CD2 until such time that the CD1 and CD2 are paid in full.

The Company closed the $6,000,000 CD1 on January 28, 2022, which was increased from the previously announced $5,000,000. The CD1 bears interest at an annual rate of 7.5%, payable in cash or shares at the Company's option, and matures on July 7, 2023 (subsequently amended, as described below). The CD1 is secured by a pledge of the Company's properties and assets. Until the closing of the Stream, the CD1 was to be convertible into Common Shares at a price of C$0.30 per Common Share, subject to stock exchange approval (subsequently amended, as described below). Alternatively, SRSR may elect to retire the CD1 with the cash proceeds from the Stream. The Company may elect to repay the CD1 early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the CD1, including that the maturity date would be amended from July 7, 2023, to March 31, 2025, and that the CD1 would remain outstanding until the new maturity date regardless of whether the Stream is advanced, unless the Company elects to exercise its option of early repayment. The Company determined that amendments to the terms should not be treated as an extinguishment of CD1, but as a debt modification.

The Company closed the $15,000,000 CD2 on June 17, 2022. The CD2 bears interest at an annual rate of 10.5%, payable in cash or shares at the Company's option, and matures on March 31, 2025. The CD2 is secured by a pledge of the Company's properties and assets. The repayment terms include 3 quarterly payments of $2,000,000 each beginning June 30, 2024, and $9,000,000 on the maturity date.

In light of the Series 2 Convertible Debenture financing, the previously permitted additional senior secured indebtedness of up to $15 million for project finance has been removed.

A minimum of $27,000,000 and a maximum of $37,000,000 (the "Stream Amount") will be made available under the Stream, at the Company's option, once the conditions of availability of the Stream have been satisfied including confirmation of full project funding by an independent engineer appointed by SRSR. If the Company draws the maximum funding of $37,000,000, the Stream would apply to 10% of payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 55 million pounds of zinc, 35 million pounds of lead, and 1 million ounces of silver (subsequently amended, as described below). Thereafter, the Stream would apply to 2% of payable metals sold. If the Company elects to draw less than $37,000,000 under the Stream, the percentage and quantities of payable metals streamed will adjust pro-rata. The delivery price of streamed metals will be 20% of the applicable spot price. The Company may buy back 50% of the Stream Amount at a 1.40x multiple of the Stream Amount between the second and third anniversary of the date of funding, and at a 1.65x multiple of the Stream Amount between the third and fourth anniversary of the date of funding. As of September 30, 2022, the Stream had not been advanced.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed that the minimum quantity of metal delivered under the Stream, if advanced, will increase by 10% relative to the amounts noted above.

*Process Plant*

On January 25, 2022, the Company announced that it had entered into a non-binding Memorandum of Understanding ("MOU") with Teck Resources Limited ("Teck") for the purchase of a comprehensive package of equipment and parts inventory from its Pend Oreille site (the "Process Plant") in eastern Washington State, approximately 145 miles from the Bunker Hill Mine by road. The package comprises substantially all processing equipment of value located at the site, including complete crushing, grinding and flotation circuits suitable for a planned ~1,500 ton-per-day operation at Bunker Hill, and total inventory of nearly 10,000 components and parts for mill, assay lab, conveyer, field instruments, and electrical spares. The Company paid a $500,000 non-refundable deposit in January 2022.

On March 31, 2022, the Company announced that it had reached an agreement with a subsidiary of Teck to satisfy the remaining purchase price for the Process Plant by way of an equity issuance of the Company. Teck will receive 10,416,667 units of the Company (the "Teck Units") at a deemed issue price of C$0.30 per unit. Each Teck Unit consists of one Common Share and one Common Share purchase warrant (the "Teck Warrants"). Each whole Teck Warrant entitles the holder to acquire one Common Share at a price of C$0.37 per Common Share for a period of three years. The equity issuance and purchase of the Process Plant occurred on May 13, 2022.

 

*Ball Mill upgrade*

 

On August 30, 2022, the Company entered into an agreement to purchase a ball mill from D'Angelo International LLC for $675,000. The purchase of the mill is to be made in three cash payments:

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| |
|:---|
| $100,000 by September 15, 2022 as a non-refundable deposit (paid) |
| $100,000 by October 15, 2022 (paid) |
| $475,000 by December 15, 2022 |

---

At September 30, 2022, the Company paid $100,000 towards the purchase as a non-refundable deposit.

*New Sprott Financing*

 

On November 17, 2022, the Company announced that it received investment committee approval from Sprott for a new $5,000,000 loan facility, and that the loan facility would be utilized for the payment of (a) $3,500,000 to the Environmental Protection Agency (the "**EPA**") for currently outstanding water treatment services for the 2019-2021 period, (b) $560,000 to the Idaho Department of Environmental Quality ("**IDEQ**") for monthly water treatment payments to be made from November 2022 through February 2023, and (c) $940,000 for cost and working capital requirements for the Bunker Hill Mine.

The loan facility was to be secured by the security package currently in place between Bunker Hill and Sprott, would bear interest at a rate of 10.5% per annum, and would mature at the earlier of (i) the advance of the multi-metals stream (the "**Stream**") to be advanced pursuant to the Stream Agreement, or (ii) June 30, 2024. In addition, the minimum quantity of metal delivered under the Stream, if advanced, would increase by 5% relative to amounts previously announced. The advance of the loan facility was conditional on the completion of definitive documentation relating to the Stream and the launch of the Offering.

Furthermore, the Company announced that it was finalizing discussions with Sprott regarding the advance of the Stream. Following satisfactory conclusion of the definitive documentation relating to the Stream, full project funding for the Bunker Hill Mine and certain other conditions precedent, the Company expects the advance of the Stream to take place in the first quarter of 2023.

On December 6, 2022, the Company announced the closing of the aforementioned loan facility with Sprott. The key terms of the facility are as described in the Company's announcement of November 17, 2022.

*Concentrate Offtake Financing*

On November 17, 2022, the Company also announced that it was in discussions with Sprott and Teck, as holder of the exclusive option to acquire 100% of zinc and lead concentrate produced in the first five years at the Bunker Hill Mine, to facilitate the potential provision of concentrate offtake financing from third parties as the final tranche of capital to finance the restart of the Bunker Hill Mine (the "**Offtake Financing**"), alongside the Stream and Offering. The Company further announced that it was evaluating several non-binding term sheets from metals traders envisaging the provision of up to $15 million of offtake finance.

**Smaller Reporting Company**

Additionally, Bunker Hill is a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. Bunker Hill will remain a smaller reporting company until the last day of the fiscal year in which (i) the market value of Bunker Hill Common Stock held by non-affiliates exceeds $250 million as of the prior June 30, or (ii) Bunker Hill's annual revenues exceeded $100 million during such completed fiscal year and the market value of Common Stock held by non-affiliates exceeds $700 million as of the prior June 30.

**Corporate Information**

The mailing address of Bunker Hill is 82 Richmond Street East, Toronto, Ontario M5C 1P1, Canada, and its telephone number is (416) 477-7771. Our website is www.bunkerhillmining.com. Information contained on or accessible through our website is not a part of this prospectus or the registration statement of which it forms a part, and the inclusion of our website address in this prospectus is an inactive textual reference only.

**SUMMARY OF THE OFFERING**

---

| | |
|:---|:---|
| **Securities Offered by Us** | A minimum offering of____________ Common Shares<br> A maximum offering of ___________ Common Shares, which may be increased by up to 15% if the Placement Agents' over-allotment option is exercised<br> Up to ● Common Shares Underlying Placement Agent Warrants |
| **Concurrent Offering** | The offering is being made concurrently in the United States and in each of the provinces in Canada, other than Québec. Pursuant to a placement agency agreement, dated as of &nbsp;&nbsp;&nbsp;&nbsp; , 2023 (the "Agency Agreement"), we have engaged Roth Capital Partners, LLC (the "U.S. Placement Agent"), to act as our exclusive placement agent to solicit offers to purchase the securities offered by this prospectus on a commercially reasonable best efforts basis in the U.S. Also pursuant to the Agency Agreement, we have engaged Echelon Wealth Partners and Laurentian Securities (together, the "Canadian Placement Agents" and together with the U.S. Placement Agent, the "Placement Agents"), to act as our exclusive placement agents to solicit offers to purchase securities on a commercially reasonable best efforts basis in Canada. Any sales of securities in Canada will reduce the amount offered in the United States and accordingly any sales of securities in the United States will reduce the amount offered in Canada, Sales of securities in the United States and Canada will be aggregated for the purposes of determining the Minimum Offering and the Maximum Offering. |
| **Common** **Shares outstanding before the offering** | 235,878,932 Common Shares as of the date hereof (not including shares issuable upon exercisable warrants). |
| **Offering Price** | $&nbsp;&nbsp;&nbsp;&nbsp; per Common Share. |
| **Common Stock outstanding after this offering** | ● Shares (assuming the maximum amount of Common Shares are sold, none of the Placement Agent Warrants issued in this offering are exercised, none of the other outstanding warrants are exercised, none of the outstanding convertible securities are converted, and no exercise of the Placement Agents' overallotment option). |
| **Use of proceeds** | Assuming we sell the maximum of shares offered by this prospectus, we estimate that we will receive net proceeds from this offering of approximately $___________ based upon an assumed offering price of $________ per Common Share, after deducting Placement Agent fees and estimated offering expenses payable by us. We currently intend to use the net proceeds we receive from this offering to provide funding for the restart and development of the Bunker Hill mine, and fund working capital and general corporate purposes using any remaining amounts. Because this is a best efforts offering, we may not sell all or any of the securities offered hereby. As a result, we may receive significantly less in net proceeds than we currently estimate. See "Use of Proceeds" on page 28. |
| **Risk Factors** | You should carefully consider the risk factors described in the section of this prospectus entitled "*Risk Factors*," together with all of the other information included in this prospectus, before deciding to purchase our Common Shares. |
| **Trading Symbols** | OTC QB- BHLL <br> CSE- BNKR |

---

**Assumptions Used Throughout This Prospectus**

Unless otherwise stated in this prospectus, the total number of Common Shares outstanding as of the date of this prospectus and after this offering is based on 235,878,932 shares outstanding as of the date of this prospectus, assumes the sale of Common Shares based on an assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, and excludes the following other securities:

● 37,713,701 Common Shares reserved for issuance under our equity incentive plans, of which there are (i) outstanding options to purchase 9,555,636 Common Shares at a weighted average exercise price of C$0.51 per share, (ii) 4,822,741 Common Shares underlying outstanding restricted share units, or RSUs, and (iii) 23,335,324 Common Shares available for future grant;

● 162,129,064 Common Shares reserved for issuance pursuant to outstanding warrants; 5,470,799 Common Shares reserved for issuance pursuant to broker warrants;

● 98,312,276 Common Shares reserved for issuance under the Series 1 Convertible Debenture and Series 2 Convertible Debenture;

● No exercise of the Placement Agents' overallotment option; and

● &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares issuable upon the exercise of the Placement Agents' warrants with an exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to be issued to a Placement Agents or its designees in connection with this offering.

Except as otherwise noted, all information in this prospectus reflects and assumes (i) no exercise of outstanding options issued under our equity incentive plans and (ii) no exercise of the Placement Agents' warrants.

**SUMMARY OF FINANCIAL INFORMATION**

The following selected financial information is derived from the Financial Statements appearing elsewhere in this Prospectus and should be read in conjunction with the Financial Statements, including the notes thereto, appearing elsewhere in this Prospectus. The amounts below are expressed in United States dollars.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended**<br>**30-Sep-22**<br>**($)** | **Nine Months Ended**<br>**30-Sep-21**<br>**($)** | **Year <br> Ended**<br>**31-Dec-21**<br>**($)** | **Year (Six Months) <br> Ended**<br>**31-Dec-20**<br>**($)** | **(As restated)Year Ended**<br>**30-Jun-20**<br>**($)** |
| **Operating Statement Data:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues | Nil | Nil | Nil | Nil | Nil |
| &nbsp;&nbsp;&nbsp;Loss from operations | 13291484 | 12384474 | 18752504 | 9454396 | 10793823 |
| &nbsp;&nbsp;&nbsp;Net income (loss) | 12864248 | 9843495 | (6402277) | (2164454) | (31321791) |
| &nbsp;&nbsp;&nbsp;Net income (loss) per common share <br>– basic | 0.07 | 0.06 | (0.04) | (0.02) | (0.47) |
| &nbsp;&nbsp;&nbsp;–fully diluted | 0.05 | 0.06 | (0.04) | (0.02) | (0.47) |
| **Balance Sheet Data:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | 33586588 | 4071796 | 4071796 | 6709016 | 732884 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 48321757 | 38314164 | 38314164 | 38246613 | 33974803 |
| &nbsp;&nbsp;&nbsp;Total shareholders' deficiency | 14735169 | 34242368 | 34242368 | 31537597 | 33241919 |
| &nbsp;&nbsp;&nbsp;Total number of common shares issued and outstanding | 219649187 | 164435442 | 164435442 | 143117068 | 79259940 |

---

As described in the notes to the Financial Statements, the Financial Statements for the year ended June 30, 2020 have been restated.

**RISK FACTORS**

 

*The following risk factors are not exhaustive and investors are encouraged to perform their own investigation with respect to the business, prospects, financial condition and operating results of Bunker Hill and our business, prospects, financial condition and operating results. You should carefully consider the following risk factors in addition to the other information included in this prospectus, including matters addressed in the section titled "Cautionary Note Regarding Forward-Looking Statements." We may face additional risks and uncertainties that are not presently known to us, or that we currently deem immaterial, which may also impair our business, prospects, financial condition or operating results. The following discussion should be read in conjunction with our financial statements and notes to the financial statements herein.*

**Risks Related to this Offering**

***We have broad discretion in the use of the net proceeds from this offering and may not use them effectively.***

Our management will have broad discretion in the application of the net proceeds, including for any of the purposes described in the section of this prospectus entitled "Use of Proceeds". You will be relying on the judgment of our management with regard to the use of these net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the net proceeds are being used appropriately. The failure by our management to apply these funds effectively could result in financial losses that could have a material adverse effect on our business, cause the price of our securities to decline and delay the development of our product candidates. Pending the application of these funds, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value.

**There must be a current state blue sky registration or exemption from such registration for you to purchase or sell these securities.**

Each state has its own securities laws, often called "blue sky" laws, which (i) limit sales of securities to a state's residents unless the securities are registered in that state or qualify for an exemption from registration, and (ii) govern the reporting requirements for broker-dealers doing business directly or indirectly in the state. Before a security is sold in a state, there must be a registration in place to cover the transaction, or the transaction must be exempt from registration. The applicable broker of such transaction must also be registered in that state.

We cannot guarantee that we will be able to effect any required blue sky registrations or qualifications. You will have the ability to purchase these securities only if such securities have been qualified for sale under the laws of the state where the offer and sale is to occur, or if they fall within an exemption from registration. We will not knowingly sell any securities to purchasers in jurisdictions in which such sales are not registered or otherwise qualified for issuance or exempt from registration. As a result, there may be significant state blue sky law restrictions on the ability of investors to sell, and on purchasers to buy, our securities.

***You will experience immediate and substantial dilution in the net tangible book value of the shares you purchase in this offering and may experience additional dilution in the future.***

The combined public offering price per Common Share will be substantially higher than the pro forma as adjusted net tangible book value per share of our common stock after giving effect to this offering. Assuming the sale of the maximum amount of shares of our common stock at an assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share, the closing sale price per share of our common stock on the OTC QB on&nbsp;&nbsp;&nbsp;&nbsp; , 2022, and after deducting the placement agent fees and commissions and estimated offering expenses payable by us, you will incur immediate dilution of approximately $&nbsp;&nbsp;&nbsp;&nbsp; per share. Assuming the sale of the minimum amount of shares of our common stock at an assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share, the closing sale price per share of our common stock on the OTC QB on&nbsp;&nbsp;&nbsp;&nbsp; , 2022, and after deducting the placement agent fees and commissions and estimated offering expenses payable by us, you will incur immediate dilution of approximately $&nbsp;&nbsp;&nbsp;&nbsp; per share As a result of the dilution to investors purchasing securities in this offering, investors may receive significantly less than the purchase price paid in this offering, if anything, in the event of the liquidation of our company. See the section entitled "Dilution" below for a more detailed discussion of the dilution you will incur if you participate in this offering. To the extent shares are issued under outstanding options and warrants at exercise prices lower than the public offering price of our common stock in this offering, you will incur further dilution.

***This is a best efforts offering and we may not raise the amount of capital we believe is required for our business plans, including our near-term business plans.***

 ****

The Placement Agents have agreed to use their commercially reasonable best efforts to solicit offers to purchase the securities in this offering and the concurrent Canadian offering. The placement agents have no obligation to buy any of the securities from us or to arrange for the purchase or sale of any specific number or dollar amount of the securities. Because this is a best efforts offering, the actual offering amount, placement agent fees and proceeds to us are not presently determinable and may be substantially less than the maximum amounts set forth above. We may sell fewer than all of the securities offered hereby, which may significantly reduce the amount of proceeds received by us, and investors in this offering will not receive a refund in the event that we do not sell an amount of securities sufficient to support our continued operations, including our near-term continued operations. Thus, we may not raise the amount of capital we believe is required for our operations in the short-term and may need to raise additional funds, which may not be available or available on terms acceptable to us.

**General Risk Factors**

***The Company's ability to operate as a going concern is in doubt.***

 **

The audit opinion and notes that accompany the Company's Financial Statements disclose a going concern qualification to its ability to continue in business. The accompanying Financial Statements have been prepared under the assumption that the Company will continue as a going concern. The Company is an exploration and development stage company and has incurred losses since its inception. The Company has incurred losses resulting in an accumulated deficit of $59,626,902 as of September 30, 2022 and further losses are anticipated in the development of its business.

The Company currently has no historical recurring source of revenue and its ability to continue as a going concern is dependent on its ability to raise capital to fund its future exploration and working capital requirements or its ability to profitably execute its business plan. The Company's plans for the long-term return to and continuation as a going concern include financing its future operations through sales of its Common Shares and/or debt and the eventual profitable exploitation of the Mine. Additionally, the volatility in capital markets and general economic conditions in the U.S. and elsewhere can pose significant challenges to raising the required funds. These factors raise substantial doubt about the Company's ability to continue as a going concern.

The Company's consolidated financial statements do not give effect to any adjustments required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying Financial Statements.

***Teck may not exercise its option to acquire 100% of zinc and lead concentrate produced in the first five years at the Bunker Hill Mine which could result in less favourable commercial terms for the sale of these concentrates, and could also impact the Company's ability to secure offtake financing. Regardless of actions taken by Teck, there can be no assurance that the Company will be able to secure or close offtake financing, which could have an adverse effect on the Company's financial position.***

 ****

Teck may not elect to exercise its option to acquire 100% of zinc and lead concentrate produced in the first five years at the Bunker Hill Mine. If Teck does not elect to exercise such option, the Company may not be able to sell its zinc and lead concentrate to Teck, which could result in difficulties securing alternative commercial arrangements for the sale of concentrate, less favourable commercial terms in the event that alternative commercial arrangements can be secured, and/or higher transportation and other costs. In addition, the Company may not be able to secure or close the Offtake Financing, regardless of whether Teck elects to exercise its option, the terms of any offtake financing might not be favourable to the Company and the Company may incur substantial fees and costs related to such financing. The Company's inability to secure or close the Offtake Financing or arrange suitable alternative offtake financing may have an adverse effect on the Company's operations and financial position.

***The Company will require significant additional capital to fund its business plan.***

 ****

The Company will be required to expend significant funds to determine whether proven and probable mineral reserves exist at its properties, to continue exploration and, if warranted, to develop its existing properties, and to identify and acquire additional properties to diversify its property portfolio. The Company anticipates that it will be required to make substantial capital expenditures for the continued exploration and, if warranted, development of the Mine. The Company has spent and will be required to continue to expend significant amounts of capital for drilling, geological, and geochemical analysis, assaying, and feasibility studies with regard to the results of its exploration at the Mine. The Company may not benefit from some of these investments if it is unable to identify commercially exploitable mineral reserves.

Neither the Company nor any of the directors of the Company nor any other party can provide any guarantee or assurance, that the Company will be able to raise sufficient capital to satisfy the Company's short-term obligations. The Company does not have sufficient funds to satisfy its short-term financial obligations. As at September 30, 2022, the Company has $103,833 in cash and total current liabilities of $11,439,038 and total liabilities of $48,321,757. If the Company cannot raise additional capital, the Company will be in breach of its debt obligations, including under the Royalty Convertible Debenture and all other outstanding convertible debentures of the Company. Further, pursuant to the terms of the Company's agreement with the Environmental Protection Agency (the "EPA"), the Company is required to make certain payments to the EPA in the amount of $17,000,000 for cost recovery. If the Company is unable to raise sufficient capital, the Company may be unable to pay the cost of recovery resulting in a breach of its obligations and the failure to pay may be considered a default under the terms of the Amended Settlement with the EPA and the amended lease and option agreement dated November 1, 2019 with Placer Mining.

Neither the Company nor any of the directors of the Company nor any other party can provide any guarantee or assurance that the full $**66,000,000** project financing package (the "Project Financing Package") will be finalized or close, as the Project Financing Package remains subject to Sprott internal approvals, further technical and other due diligence and satisfactory documentation. Approximately $14,000,000 of the project financing closed in January 2022 and a further $15,000,000 in June 2022, subsequent to the close of the year. If the full Project Financing Package does not close there is no guarantee that capital can be raised on terms favorable to the Company, or at all. Any additional equity funding will dilute existing shareholders.

The Company's ability to obtain necessary funding for these purposes, in turn, depends upon a number of factors, including the status of the national and worldwide economy and the price of metals. Capital markets worldwide were adversely affected by substantial losses by financial institutions, caused by investments in asset-backed securities and remnants from those losses continue to impact the ability for the Company to raise capital. The Company may not be successful in obtaining the required financing or, if it can obtain such financing, such financing may not be on terms that are favorable to us.

The Company's inability to access sufficient capital for its operations could have a material adverse effect on its financial condition, results of operations, or prospects. Sales of substantial amounts of securities may have a highly dilutive effect on the Company's ownership or share structure. Sales of a large number of shares of the Company's Common Shares in the public markets, or the potential for such sales, could decrease the trading price of the Common Shares and could impair the Company's ability to raise capital through future sales of Common Shares. The Company has not yet commenced commercial production at any of its properties and, therefore, has not generated positive cash flows to date and has no reasonable prospects of doing so unless successful commercial production can be achieved at the Bunker Hill Mine. The Company expects to continue to incur negative investing and operating cash flows until such time as it enters into successful commercial production. This will require the Company to deploy its working capital to fund such negative cash flow and to seek additional sources of financing. There is no assurance that any such financing sources will be available or sufficient to meet the Company's requirements, or if available, available upon terms acceptable to the Company. There is no assurance that the Company will be able to continue to raise equity capital or to secure additional debt financing, or that the Company will not continue to incur losses.

***Negative Operating Cash Flow.***

 ****

The Company has no history of earnings and has negative cash flow from operating activities since inception. The Company's mineral properties are in the exploration stage and there are no known mineral resources or reserves and the proposed exploration programs on the Company's mineral properties are exploratory in nature. Significant capital investment will be required to achieve commercial production from the Company's existing projects. There is no assurance that any of the Company's mineral properties will generate earnings, operate profitably or provide a return on investment in the future. Accordingly, the Company will be required to obtain additional financing in order to meet its future cash commitments.

***The Company has a limited operating history on which to base an evaluation of its business and prospects.***

 ****

Since its inception, the Company has had no revenue from operations. The Company has no history of producing products from the Bunker Hill property. The Mine is a historic, past producing mine with very little recent exploration work. Advancing the Mine into the development stage will require significant capital and time, and successful commercial production from the Mine will be subject to completing feasibility studies, permitting and re-commissioning of the Mine, constructing processing plants, and other related works and infrastructure. As a result, the Company is subject to all of the risks associated with developing and establishing new mining operations and business enterprises, including:

● completion of feasibility studies to verify reserves and commercial viability, including the ability to find sufficient ore reserves to support a commercial mining operation;

● the timing and cost, which can be considerable, of further exploration, preparing feasibility studies, permitting and construction of infrastructure, mining and processing facilities;

● the availability and costs of drill equipment, exploration personnel, skilled labor, and mining and processing equipment, if required;

● the availability and cost of appropriate smelting and/or refining arrangements, if required;

● compliance with stringent environmental and other governmental approval and permit requirements;

● the availability of funds to finance exploration, development, and construction activities, as warranted;

● potential opposition from non-governmental organizations, local groups or local inhabitants that may delay or prevent development activities;

● potential increases in exploration, construction, and operating costs due to changes in the cost of fuel, power, materials, and supplies; and

● potential shortages of mineral processing, construction, and other facilities related supplies.

The costs, timing, and complexities of exploration, development, and construction activities may be increased by the location of its properties and demand by other mineral exploration and mining companies. It is common in exploration programs to experience unexpected problems and delays during drill programs and, if commenced, development, construction, and mine start-up. In addition, the Company's management and workforce will need to be expanded, and sufficient housing and other support systems for its workforce will have to be established. This could result in delays in the commencement of mineral production and increased costs of production. Accordingly, the Company's activities may not result in profitable mining operations and it may not succeed in establishing mining operations or profitably producing metals at any of its current or future properties, including the Mine.

***The Company has a history of losses and expects to continue to incur losses in the future.***

 ****

The Company has incurred losses since inception, has had negative cash flow from operating activities, and expects to continue to incur losses in the future. The Company has incurred the following losses from operations during each of the following periods:

● $13,291,484 for the nine months ended September 30, 2022;

● $18,752,504 for the year ended December 31, 2021;

● $9,454,396 for the transition period ended December 31, 2020 and

● $10,793,823 for the year ended June 30, 2020

The Company expects to continue to incur losses unless and until such time as the Mine enters into commercial production and generates sufficient revenues to fund continuing operations. The Company recognizes that if it is unable to generate significant revenues from mining operations and dispositions of its properties, the Company will not be able to earn profits or continue operations. At this early stage of its operation, the Company also expects to face the risks, uncertainties, expenses, and difficulties frequently encountered by smaller reporting companies. The Company cannot be sure that it will be successful in addressing these risks and uncertainties and its failure to do so could have a materially adverse effect on its financial condition.

 **

***Epidemics, pandemics or other public health crises, including COVID-19, could adversely affect the Company's business.***

 **

The Company's operations could be significantly adversely affected by the effects of a widespread outbreak of epidemics, pandemics or other health crises, including the recent outbreak of respiratory illness caused by the novel coronavirus ("**COVID-19**"), which was declared a pandemic by the World Health Organization on March 12, 2020. The Company cannot accurately predict the impact COVID-19 will have on its operations and the ability of others to meet their obligations with the Company, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect the Company's operations and ability to finance its operations.

***The Russia/Ukraine crisis, including the impact of sanctions or retributions thereto, could adversely affect the Company's business.***

The Company's operations could be adversely affected by the effects of the escalating Russia/Ukraine crisis and the effects of sanctions imposed against Russia or that country's retributions against those sanctions, embargos or further-reaching impacts upon energy prices, food prices and market disruptions. The Company cannot accurately predict the impact the crisis will have on its operations and the ability of contractors to meet their obligations with the Company, including uncertainties relating the severity of its effects, the duration of the conflict, and the length and magnitude of energy bans, embargos and restrictions imposed by governments. In addition, the crisis could adversely affect the economies and financial markets of the United States in general, resulting in an economic downturn that could further affect the Company's operations and ability to finance its operations. Additionally, the Company cannot predict changes in precious metals pricing or changes in commodities pricing which may alternately affect the Company either positively or negatively.

**Risks Related to Mining and Exploration**

The Mine is in the exploration stage. There is no assurance that the Company can establish the existence of any mineral reserve on the Mine or any other properties the Company may acquire in commercially exploitable quantities. Unless and until the Company does so, the Company cannot earn any revenues from these properties and if the Company does not do so, the Company will lose all of the funds that it expends on exploration. If the Company does not discover any mineral reserve in a commercially exploitable quantity, the exploration component of its business could fail.

***The Company has not established that any of its mineral properties contain any mineral reserve according to recognized reserve guidelines, nor can there be any assurance that the Company will be able to do so.***

 ****

The Company has not established that any of its mineral properties contain any mineral reserve according to recognized reserve guidelines, nor can there be any assurance that the Company will be able to do so. In general, the probability of any individual prospect having a "reserve" that meets the requirements of the SEC is small, and the Mine may not contain any "reserves" and any funds that the Company spends on exploration could be lost. Even if the Company does eventually discover a mineral reserve on the Mine, there can be no assurance that it can be developed into a producing mine and that the Company can extract those minerals. Both mineral exploration and development involve a high degree of risk, and few mineral properties that are explored are ultimately developed into producing mines.

The commercial viability of an established mineral deposit will depend on a number of factors including, by way of example, the size, grade, and other attributes of the mineral deposit, the proximity of the mineral deposit to infrastructure such as processing facilities, roads, rail, power, and a point for shipping, government regulation, and market prices. Most of these factors will be beyond its control, and any of them could increase costs and make extraction of any identified mineral deposit unprofitable.

***The nature of mineral exploration and production activities involves a high degree of risk and the possibility of uninsured losses.***

 ****

Exploration for and the production of minerals is highly speculative and involves much greater risk than many other businesses. Most exploration programs do not result in the discovery of mineralization, and any mineralization discovered may not be of sufficient quantity or quality to be profitably mined. The Company's operations are, and any future development or mining operations the Company may conduct will be, subject to all of the operating hazards and risks normally incidental to exploring for and development of mineral properties, including, but not limited to:

● economically insufficient mineralized material;

● fluctuation in production costs that make mining uneconomical;

● labor disputes;

● unanticipated variations in grade and other geologic problems;

● environmental hazards;

● water conditions;

● difficult surface or underground conditions;

● industrial accidents;

● metallurgic and other processing problems;

● mechanical and equipment performance problems;

● failure of dams, stockpiles, wastewater transportation systems, or impoundments;

● unusual or unexpected rock formations; and

● personal injury, fire, flooding, cave-ins and landslides.

Any of these risks can materially and adversely affect, among other things, the development of properties, production quantities and rates, costs and expenditures, potential revenues, and production dates. If the Company determines that capitalized costs associated with any of its mineral interests are not likely to be recovered, the Company would incur a write-down of its investment in these interests. All of these factors may result in losses in relation to amounts spent that are not recoverable, or that result in additional expenses.

***Commodity price volatility could have dramatic effects on the results of operations and the Company's ability to execute its business plan.***

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The price of commodities varies on a daily basis. The Company's future revenues, if any, will likely be derived from the extraction and sale of base and precious metals. The price of those commodities has fluctuated widely, particularly in recent years, and is affected by numerous factors beyond its control including economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates, global and regional consumptive patterns, speculative activities and increased production due to new extraction developments and improved extraction and production methods. The effect of these factors on the price of base and precious metals, and therefore the economic viability of the Company's business, could negatively affect its ability to secure financing or its results of operations.

***Costs charged to the Company by the Idaho Department of Environmental Quality ("IDEQ") for treatment of waste water fluctuate a great deal and are not within the Company's control.***

The Company is billed annually for water treatment activities performed by the IDEQ for the EPA. The water treatment costs that Bunker Hill is billed for are partially related to the EPA's direct cost of treating the water emanating from the Bunker Hill Mine, which are comprised of lime and flocculant usage, electricity consumption, maintenance and repair, labor and some overhead. Rate of discharge of effluent from the Bunker Hill Mine is largely dependent on the level of precipitation within a given year and how close in the calendar year the Company is to the spring run-off. Increases in water infiltrations and gravity flows within the mine generally increase after winter and result in a peak discharge rate in May. Increases in gravity flow and consequently the rate of water discharged by the mine have a highly robust correlation with metal concentrations and consequently metals loads of effluent.

Hydraulic loads (quantities of water per unit of time) and metal loads (quantities of metals per unit of volume of effluent per unit of time) are the two main determinants of cost of water treatment by the EPA in the relationship with the Bunker Hill Mine because greater metal loads consume more lime and more flocculent and more electricity to remove the increased levels of metals and make the water clean. The scale of the treatment plant is determined by how much total water can be processed (hydraulic load) at any one point in time. This determines how much labor is required to operate the plant and generally determine the amount of overhead required to run the EPA business.

The EPA has completed significant upgrades to the water treatment capabilities of the CTP and is now capable of producing treated water than can meet a much higher discharge standard (which Bunker Hill will be forced to meet beyond May 2023). While it was understood that improved performance capability would increase the cost of operating the plant, it was unclear to EPA, and consequently to Bunker Hill, how much the costs would increase by.

These elements described above, and others, impact the direct costs of water treatment. A significant portion of the total amount invoiced by EPA each year is indirect cost that is determined as a percentage of the direct cost. Each year the indirect costs percentage changes within each region of the EPA. Bunker Hill has no ability to impact the percentage of indirect cost that is set by the EPA regional office. Bunker Hill also has no advanced notice of what the percentage of indirect cost will be until it receives its invoice in June of the year following the billing period. The Company remains unable to estimate EPA billings to a high degree of accuracy.

***Estimates of mineralized material and resources are subject to evaluation uncertainties that could result in project failure.***

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Its exploration and future mining operations, if any, are and would be faced with risks associated with being able to accurately predict the quantity and quality of mineralized material and resources/reserves within the earth using statistical sampling techniques. Estimates of any mineralized material or resource/reserve on the Mine would be made using samples obtained from appropriately placed trenches, test pits, underground workings, and intelligently designed drilling. There is an inherent variability of assays between check and duplicate samples taken adjacent to each other and between sampling points that cannot be reasonably eliminated. Additionally, there also may be unknown geologic details that have not been identified or correctly appreciated at the current level of accumulated knowledge about the Mine. This could result in uncertainties that cannot be reasonably eliminated from the process of estimating mineralized material and resources/reserves. If these estimates were to prove to be unreliable, the Company could implement an exploitation plan that may not lead to commercially viable operations in the future.

***Any material changes in mineral resource/reserve estimates and grades of mineralization will affect the economic viability of placing a property into production and a property's return on capital.***

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As the Company has not commenced actual production, mineralization resource estimates may require adjustments or downward revisions. In addition, the grade of ore ultimately mined, if any, may differ from that indicated by future feasibility studies and drill results. Minerals recovered in small scale tests may not be duplicated in large scale tests under on-site conditions or in production scale.

***The Company's exploration activities may not be commercially successful, which could lead the Company to abandon its plans to develop the Mine and its investments in exploration.***

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The Company's long-term success depends on its ability to identify mineral deposits on the Mine and other properties the Company may acquire, if any, that the Company can then develop into commercially viable mining operations. Mineral exploration is highly speculative in nature, involves many risks, and is frequently non-productive. These risks include unusual or unexpected geologic formations, and the inability to obtain suitable or adequate machinery, equipment, or labor. The success of commodity exploration is determined in part by the following factors:

● the identification of potential mineralization based on surficial analysis;

● availability of government-granted exploration permits;

● the quality of its management and its geological and technical expertise; and

● the capital available for exploration and development work.

Substantial expenditures are required to establish proven and probable reserves through drilling and analysis, to develop metallurgical processes to extract metal, and to develop the mining and processing facilities and infrastructure at any site chosen for mining. Whether a mineral deposit will be commercially viable depends on a number of factors that include, without limitation, the particular attributes of the deposit, such as size, grade, and proximity to infrastructure; commodity prices, which can fluctuate widely; and government regulations, including, without limitation, regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals, and environmental protection. The Company may invest significant capital and resources in exploration activities and may abandon such investments if the Company is unable to identify commercially exploitable mineral reserves. The decision to abandon a project may have an adverse effect on the market value of the Company's securities and the ability to raise future financing.

***The Company is subject to significant governmental regulations that affect its operations and costs of conducting its business and may not be able to obtain all required permits and licenses to place its properties into production.***

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The Company's current and future operations, including exploration and, if warranted, development of the Mine, do and will require permits from governmental authorities and will be governed by laws and regulations, including:

● laws and regulations governing mineral concession acquisition, prospecting, development, mining, and production;

● laws and regulations related to exports, taxes, and fees;

● labor standards and regulations related to occupational health and mine safety; and

● environmental standards and regulations related to waste disposal, toxic substances, land use reclamation, and environmental protection.

Companies engaged in exploration activities often experience increased costs and delays in production and other schedules as a result of the need to comply with applicable laws, regulations, and permits. Failure to comply with applicable laws, regulations, and permits may result in enforcement actions, including the forfeiture of mineral claims or other mineral tenures, orders issued by regulatory or judicial authorities requiring operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or costly remedial actions. The Company cannot predict if all permits that it may require for continued exploration, development, or construction of mining facilities and conduct of mining operations will be obtainable on reasonable terms, if at all. Costs related to applying for and obtaining permits and licenses may be prohibitive and could delay its planned exploration and development activities. The Company may be required to compensate those suffering loss or damage by reason of the mineral exploration or its mining activities, if any, and may have civil or criminal fines or penalties imposed for violations of, or its failure to comply with, such laws, regulations, and permits.

Existing and possible future laws, regulations, and permits governing operations and activities of exploration companies, or more stringent implementation of such laws, regulations and permits, could have a material adverse impact on the Company's business and cause increases in capital expenditures or require abandonment or delays in exploration. The Mine is located in Northern Idaho and has numerous clearly defined regulations with respect to permitting mines, which could potentially impact the total time to market for the project.

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***The Company's activities are subject to environmental laws and regulations that may increase its costs of doing business and restrict its operations.***

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Both mineral exploration and extraction require permits from various federal, state, and local governmental authorities and are governed by laws and regulations, including those with respect to prospecting, mine development, mineral production, transport, export, taxation, labor standards, occupational health, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters. There can be no assurance that the Company will be able to obtain or maintain any of the permits required for the exploration of the mineral properties or for the construction and operation of the Mine at economically viable costs. If the Company cannot accomplish these objectives, its business could fail. The Company believes that it is in compliance with all material laws and regulations that currently apply to its activities but there can be no assurance that the Company can continue to remain in compliance. Current laws and regulations could be amended, and the Company might not be able to comply with them, as amended. Further, there can be no assurance that the Company will be able to obtain or maintain all permits necessary for its future operations, or that it will be able to obtain them on reasonable terms. To the extent such approvals are required and are not obtained, the Company may be delayed or prohibited from proceeding with planned exploration or development of the mineral properties.

The Company's activities are subject to extensive laws and regulations governing environment protection. The Company is also subject to various reclamation related conditions. Although the Company closely follows and believes it is operating in compliance with all applicable environmental regulations, there can be no assurance that all future requirements will be obtainable on reasonable terms. Failure to comply may result in enforcement actions causing operations to cease or be curtailed and may include corrective measures requiring capital expenditures. Intense lobbying over environmental concerns by non-governmental organizations has caused some governments to cancel or restrict development of mining projects. Current publicized concern over climate change may lead to carbon taxes, requirements for carbon offset purchases or new regulation. The costs or likelihood of such potential issues to the Company cannot be estimated at this time.

The legal framework governing this area is constantly developing, therefore the Company is unable to fully ascertain any future liability that may arise from the implementation of any new laws or regulations, although such laws and regulations are typically strict and may impose severe penalties (financial or otherwise). The proposed activities of the Company, as with any exploration company, may have an environmental impact which may result in unbudgeted delays, damage, loss and other costs and obligations including, without limitation, rehabilitation and/or compensation. There is also a risk that the Company's operations and financial position may be adversely affected by the actions of environmental groups or any other group or person opposed in general to the Company's activities and, in particular, the proposed exploration and mining by the Company within the state of Idaho and the United States.

Environmental hazards unknown to the Company, which have been caused by previous or existing owners or operators of the Mine, may exist on the properties in which the Company holds an interest. Many of its properties in which the Company has ownership rights are located within the Coeur d'Alene Mining District, which is currently the site of a Federal Superfund cleanup project. It is possible that environmental cleanup or other environmental restoration procedures could remain to be completed or mandated by law, causing unpredictable and unexpected liabilities to arise.

***Regulations and pending legislation governing issues involving climate change could result in increased operating costs, which could have a material adverse effect on the Company's business.***

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A number of governments or governmental bodies have introduced or are contemplating legislative and/or regulatory changes in response to concerns about the potential impact of climate change. Legislation and increased regulation regarding climate change could impose significant costs on the Company, on its future venture partners, if any, and on its suppliers, including costs related to increased energy requirements, capital equipment, environmental monitoring and reporting, and other costs necessary to comply with such regulations. Any adopted future climate change regulations could also negatively impact the Company's ability to compete with companies situated in areas not subject to such limitations. Given the emotional and political significance and uncertainty surrounding the impact of climate change and how it should be dealt with, the Company cannot predict how legislation and regulation will ultimately affect its financial condition, operating performance, and ability to compete. Furthermore, even without such regulation, increased awareness and any adverse publicity in the global marketplace about potential impacts on climate change by the Company or other companies in its industry could harm the Company's reputation. The potential physical impacts of climate change on its operations are highly uncertain, could be particular to the geographic circumstances in areas in which the Company operates and may include changes in rainfall and storm patterns and intensities, water shortages, changing sea levels, and changing temperatures. These impacts may adversely impact the cost, production, and financial performance of the Company's operations.

There are several governmental regulations that materially restrict mineral exploration. The Company will be subject to the federal regulations (environmental) and the laws of the State of Idaho as the Company carries out its exploration program. The Company may be required to obtain additional work permits, post bonds and perform remediation work for any physical disturbance to the land in order to comply with these laws. While the Company's planned exploration program budgets for regulatory compliance, there is a risk that new regulations could increase its costs of doing business and prevent it from carrying out its exploration program.

***Land reclamation requirements for the Company's properties may be burdensome and expensive.***

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Although variable depending on location and the governing authority, land reclamation requirements are generally imposed on mineral exploration companies (as well as companies with mining operations) in order to minimize long term effects of land disturbance.

Reclamation may include requirements to:

● control dispersion of potentially deleterious effluents;

● treat ground and surface water to drinking water standards; and

● reasonably re-establish pre-disturbance landforms and vegetation.

In order to carry out reclamation obligations imposed on the Company in connection with its potential development activities, the Company must allocate financial resources that might otherwise be spent on further exploration and development programs. The Company plans to set up a provision for its reclamation obligations on its properties, as appropriate, but this provision may not be adequate. If the Company is required to carry out unanticipated reclamation work, its financial position could be adversely affected.

***Social and environmental activism may have an adverse effect on the reputation and financial condition of the Company or its relationship with the communities in which it operates.***

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There is an increasing level of public concern relating to the effects of mining on the nature landscape, in communities and on the environment. Certain non-governmental organizations, public interest groups and reporting organizations ("**NGOs**") who oppose resource development can be vocal critics of the mining industry. In addition, there have been many instances in which local community groups have opposed resource extraction activities, which have resulted in disruption and delays to the relevant operation. While the Company seeks to operate in a socially responsible manner and believes it has good relationships with local communities in the regions in which it operates, NGOs or local community organizations could direct adverse publicity against and/or disrupt the operations of the Company in respect to one or more of its properties, regardless of its successful compliance with social and environmental best practices, due to political factors, activities of unrelated third parties on lands in which the Company has an interest or the Company's operations specifically. Any such actions and the resulting media coverage could have an adverse effect on the reputation and financial condition of the Company or its relationships with the communities in which it operates, which could have a material adverse effect on the Company's business, financial condition, results of operations, cash flows or prospects.

***The mineral exploration and mining industry is highly competitive.***

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The mining industry is intensely competitive in all of its phases. As a result of this competition, some of which is with large established mining companies with substantial capabilities and with greater financial and technical resources than the Company's, the Company may be unable to acquire additional properties, if any, or financing on terms it considers acceptable. The Company also competes with other mining companies in the recruitment and retention of qualified managerial and technical employees. If the Company is unable to successfully compete for qualified employees, its exploration and development programs may be slowed down or suspended. The Company competes with other companies that produce its planned commercial products for capital. If the Company is unable to raise sufficient capital, its exploration and development programs may be jeopardized or it may not be able to acquire, develop, or operate additional mining projects.

The silver industry is highly competitive, and the Company is required to compete with other corporations and business entities, many of which have greater resources than its does. Such corporations and other business entities could outbid the Company for potential projects or produce minerals at lower costs, which would have a negative effect on the Company's operations.

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***Metal prices are highly volatile. If a profitable market for its metals does not exist, the Company may have to cease operations.***

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Mineral prices have been highly volatile and are affected by numerous international economic and political factors over which the Company has no control. The Company's long-term success is highly dependent upon the price of silver, as the economic feasibility of any ore body discovered on its current property, or on other properties the Company may acquire in the future, would, in large part, be determined by the prevailing market price of the minerals. If a profitable market does not exist, the Company may have to cease operations.

***A shortage of equipment and supplies could adversely affect the Company's ability to operate its business.***

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The Company is dependent on various supplies and equipment to carry out its mining exploration and, if warranted, development operations. Any shortage of such supplies, equipment, and parts could have a material adverse effect on the Company's ability to carry out its operations and could therefore limit, or increase the cost of, production.

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***Joint ventures and other partnerships, including offtake arrangements, may expose the Company to risks.***

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The Company may enter into joint ventures, partnership arrangements, or offtake agreements, with other parties in relation to the exploration, development, and production of the properties in which the Company has an interest. Any failure of such other companies to meet their obligations to the Company or to third parties, or any disputes with respect to the parties' respective rights and obligations, could have a material adverse effect on the Company, the development and production at its properties, including the Mine, and on future joint ventures, if any, or their properties, and therefore could have a material adverse effect on its results of operations, financial performance, cash flows and the price of its Common Shares.

***The Company may experience difficulty attracting and retaining qualified management to meet the needs of its anticipated growth, and the failure to manage its growth effectively could have a material adverse effect on its business and financial condition.***

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The success of the Company is currently largely dependent on the performance of its directors and officers. The loss of the services of any of these persons could have a materially adverse effect on the Company's business and prospects. There is no assurance the Company can maintain the services of its directors, officers or other qualified personnel required to operate its business. As the Company's business activity grows, the Company will require additional key financial, administrative and mining personnel as well as additional operations staff. There can be no assurance that these efforts will be successful in attracting, training and retaining qualified personnel as competition for persons with these skill sets increase. If the Company is not successful in attracting, training and retaining qualified personnel, the efficiency of its operations could be impaired, which could have an adverse impact on the Company's operations and financial condition. In addition, the COVID-19 pandemic may cause the Company to have inadequate access to an available skilled workforce and qualified personnel, which could have an adverse impact on the Company's financial performance and financial condition.

The Company is dependent on a relatively small number of key employees, including its Chief Executive Officer (the "**CEO**") and Chief Financial Officer (the "**CFO**"). The loss of any officer could have an adverse effect on the Company. The Company has no life insurance on any individual, and the Company may be unable to hire a suitable replacement for them on favorable terms, should that become necessary.

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***The Company may be subject to potential conflicts of interest with its directors and/or officers.***

Certain directors and officers of the Company are or may become associated with other mining and/or mineral exploration and development companies which may give rise to conflicts of interest. Directors who have a material interest in any person who is a party to a material contract or a proposed material contract with the Company are required, subject to certain exceptions, to disclose that interest and generally abstain from voting on any resolution to approve such a contract. In addition, directors and officers are required to act honestly and in good faith with a view to the best interests of the Company. Some of the directors and officers of the Company have either other full-time employment or other business or time restrictions placed on them and accordingly, the Company will not be the only business enterprise of these directors and officers. Further, any failure of the directors or officers of the Company to address these conflicts in an appropriate manner or to allocate opportunities that they become aware of to the Company could have a material adverse effect on the Company's business, financial condition, results of operations, cash flows or prospects.

***The Company's results of operations could be affected by currency fluctuations.***

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The Company's properties are currently all located in the U.S. and while most costs associated with these properties are paid in U.S. dollars, a significant amount of its administrative expenses are payable in Canadian dollars. There can be significant swings in the exchange rate between the U.S. dollar and the Canadian dollar. There are no plans at this time to hedge against any exchange rate fluctuations in currencies.

***Title to the Company's properties may be subject to other claims that could affect its property rights and claims.***

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There are risks that title to the Company's properties may be challenged or impugned. The Mine is located in Northern Idaho and may be subject to prior unrecorded agreements or transfers and title may be affected by undetected defects.

***The Company may be unable to secure surface access or purchase required surface rights.***

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Although the Company obtains the rights to some or all of the minerals in the ground subject to the mineral tenures that the Company acquires, or has the right to acquire, in some cases the Company may not acquire any rights to, or ownership of, the surface to the areas covered by such mineral tenures. In such cases, applicable mining laws usually provide for rights of access to the surface for the purpose of carrying on mining activities; however, the enforcement of such rights through the courts can be costly and time consuming. It is necessary to negotiate surface access or to purchase the surface rights if long-term access is required. There can be no guarantee that, despite having the right at law to access the surface and carry on mining activities, the Company will be able to negotiate satisfactory agreements with any such existing landowners/occupiers for such access or purchase of such surface rights, and therefore the Company may be unable to carry out planned mining activities. In addition, in circumstances where such access is denied, or no agreement can be reached, the Company may need to rely on the assistance of local officials or the courts in such jurisdiction, the outcomes of which cannot be predicted with any certainty. The Company's inability to secure surface access or purchase required surface rights could materially and adversely affect its timing, cost, or overall ability to develop any mineral deposits the Company may locate.

***The Company's properties and operations may be subject to litigation or other claims.***

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From time to time the Company's properties or operations may be subject to disputes that may result in litigation or other legal claims. The Company may be required to take countermeasures or defend against these claims, which will divert resources and management time from operations. The costs of these claims or adverse filings may have a material effect on its business and results of operations.

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***There are amounts due and owing under the Company's agreement with the EPA that have not been paid in accordance with the agreed upon payment schedule. In the event that the EPA or Placer Mining assert default under the terms of the agreement or the Amended Agreement, respectively, the Company may lose its ability to exercise its right to purchase the Mine, which would have a material adverse impact on the Company.***

Pursuant to the terms of the Company's agreement with the EPA, the Company is required to make certain payments to the EPA on behalf of Placer Mining in the amount of $20,000,000 for cost recovery. The Company has made one payment of $1,000,000 but has not paid the other payments as they have become due.

The Company entered into an amended Settlement Agreement between the Company, Idaho Department of Environmental Quality, US Department of Justice and the EPA. The Company is now fully compliant with its payment obligations to these parties. The Amended Settlement modified the payment schedule and payment terms for recovery of historical environmental response costs at Bunker Hill Mine by the EPA. A total of $17,000,000 remains to be paid by the Company following the payment of $2,000,000 by the Company in January 2022. The remaining $17,000,000 is to be paid in annual instalments until November 1, 2029.

Failure to pay could be considered a default under the terms of the Amended Settlement with the EPA.

***Mineral exploration and development is subject to extraordinary operating risks. The Company currently insures against these risks on a limited basis. In the event of a cave-in or similar occurrence, the Company's liability may exceed its resources and insurance coverage, which would have an adverse impact on the Company.***

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Mineral exploration, development and production involve many risks. The Company's operations will be subject to all the hazards and risks inherent in the exploration for mineral resources and, if the Company discovers a mineral resource in commercially exploitable quantity, its operations could be subject to all of the hazards and risks inherent in the development and production of resources, including liability for pollution, cave-ins or similar hazards against which the Company cannot insure or against which the Company may elect not to insure. Any such event could result in work stoppages and damage to property, including damage to the environment. As of the date hereof, the Company currently maintains commercial general liability insurance and umbrella liability insurance against these operating hazards, in connection with its exploration program. The payment of any liabilities that arise from any such occurrence that would not otherwise be covered under the current insurance policies would have a material adverse impact on the Company.

***Mineral exploration and development are depended on adequate infrastructure.***

Exploration, development and processing activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important elements of infrastructure, which affect access, capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploration or development of the Company's mineral properties. If adequate infrastructure is not available in a timely manner, there can be no assurance that the exploration or development of the Company's mineral properties will be commenced or completed on a timely basis, if at all. Furthermore, unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of necessary infrastructure could adversely affect its operations.

Exploration operations depend on adequate infrastructure. In particular, reliable power sources, water supply, transportation and surface facilities are necessary to explore and develop mineral projects. Failure to adequately meet these infrastructure requirements or changes in the cost of such requirements could affect the Company's ability to carry out exploration and future development operations and could have a material adverse effect on the Company's business, financial condition, results of operations, cash flows or prospects

***The Company may purchase additional mining properties.***

If the Company loses or abandons its interests in its mineral properties, there is no assurance that it will be able to acquire another mineral property of merit or that such an acquisition would be approved by the CSE, OTCQB or any other applicable security exchanges. There is also no guarantee that the CSE, OTCQB or any other applicable security exchanges, will approve the acquisition of any additional properties by the Company, whether by way of an option or otherwise, should the Company wish to acquire any additional properties.

***The Company's operations are dependent on information technology systems that may be subject to network disruptions***

The Company's operations depend on information technology ("**IT**") systems. These IT systems could be subject to network disruptions caused by a variety of sources, including computer viruses, security breaches and cyber-attacks, as well as disruptions resulting from incidents such as cable cuts, damage to physical plants, natural disasters, terrorism, fire, power loss, vandalism and theft. The Company's operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems and software, as well as pre-emptive expenses to mitigate the risks of failures. Any of these and other events could result in information system failures, delays and/or increase in capital expenses. The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact the Company's reputation and results of operations.

Although to date the Company has not experienced any material losses relating to cyber-attacks or other information security breaches, there can be no assurance that the Company will not incur such losses in the future. The Company's risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

***The Company is a reporting issuer and reporting requirements under applicable securities laws may increase legal and financial compliance costs***

The Company is subject to reporting requirements under applicable securities law, the listing requirements of the CSE, the OTCQB, the SEC and other applicable securities rules and regulations. Compliance with these requirements can increase legal and financial compliance costs, make some activities more difficult, time consuming or costly, and increase demand on existing systems and resources. Among other things, the Company is required to file annual, quarterly and current reports with respect to its business and results of operations and maintain effective disclosure controls and procedures and internal controls over financial reporting. In order to maintain and, if required, improve disclosure controls and procedures and internal controls over financial reporting to meet this standard, significant resources and management oversight is required. As a result, management's attention may be diverted from other business concerns, which could harm the Company's business and results of operations. The Company may need to hire additional employees to comply with these requirements in the future, which would increase its costs and expenses.

R**isks Related to the Common Shares**

***The Company's Common Share price may be volatile and as a result investor could lose all or part of their investment.***

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In addition to volatility associated with equity securities in general, the value of an investor's investment could decline due to the impact of any of the following factors upon the market price of the Common Shares:

● disappointing results from the Company's exploration efforts;

● decline in demand for its Common Shares;

● downward revisions in securities analysts' estimates or changes in general market conditions;

● technological innovations by competitors or in competing technologies;

● investor perception of the Company's industry or its prospects; and

● general economic trends.

The Company's Common Share price on the CSE has experienced significant price and volume fluctuations. Stock markets in general have experienced extreme price and volume fluctuations, and the market prices of securities have been highly volatile. These fluctuations are often unrelated to operating performance and may adversely affect the market price of the Common Shares. As a result, an investor may be unable to sell any Common Shares such investor acquires at a desired price.

***Potential future sales under Rule 144 may depress the market price for the Company's Common Shares.***

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In general, under Rule 144, a person who has satisfied a minimum holding period of between six months and one-year and any other applicable requirements of Rule 144, may thereafter sell such shares publicly. A significant number of the Company's currently issued and outstanding Common Shares held by existing shareholders, including officers and directors and other principal shareholders, are currently eligible for resale pursuant to and in accordance with the provisions of Rule 144. The possible future sale of the Company's Common Shares by its existing shareholders, pursuant to and in accordance with the provisions of Rule 144, may have a depressive effect on the price of its Common Shares in the over-the-counter market.

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***The Company's Common Shares currently deemed a "penny stock", which may make it more difficult for investors to sell their Common Shares.***

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The SEC has adopted regulations which generally define "penny stock" to be any equity security that has a market price less than $5.00 per Common Share or an exercise price of less than $5.00 per Common Share, subject to certain exceptions. The Company's s securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors". The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000, exclusive of their principal residence, or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade its securities. The Company believes that the penny stock rules may discourage investor interest in and limit the marketability of its Common Shares.

***The Company has never paid dividends on its Common Shares.***

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The Company has not paid dividends on its Common Shares to date, and it does not expect to pay dividends for the foreseeable future. The Company intends to retain its initial earnings, if any, to finance its operations. Any future dividends on Common Shares will depend upon the Company's earnings, its then-existing financial requirements, and other factors, and will be at the discretion of the Board.

***FINRA has adopted sales practice requirements, which may also limit an investor's ability to buy and sell the Company's Common Shares.***

 ****

In addition to the "penny stock" rules described above, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy the Company's Common Shares, which may limit an investor's ability to buy and sell its stock and have an adverse effect on the market for the Common Shares.

 **

***Investors' interests in the Company will be diluted and investors may suffer dilution in their net book value per share of Common Shares if the Company issues additional employee/director/consultant options or if the Company sells additional Common Shares and/or warrants to finance its operations.***

 **

In order to further expand the Company's operations and meet its objectives, any additional growth and/or expanded exploration activity will likely need to be financed through sale of and issuance of additional Common Shares, including, but not limited to, raising funds to explore the Mine. Furthermore, to finance any acquisition activity, should that activity be properly approved, and depending on the outcome of its exploration programs, the Company likely will also need to issue additional Common Shares to finance future acquisitions, growth, and/or additional exploration programs of any or all of its projects or to acquire additional properties. The Company will also in the future grant to some or all of its directors, officers, and key employees and/or consultants options to purchase Common Shares as non-cash incentives. The issuance of any equity securities could, and the issuance of any additional Common Shares will, cause the Company's existing shareholders to experience dilution of their ownership interests.

If the Company issues additional Common Shares or decides to enter into joint ventures with other parties in order to raise financing through the sale of equity securities, investors' interests in the Company will be diluted and investors may suffer dilution in their net book value per share of Common Shares depending on the price at which such securities are sold.

***The issuance of additional shares of Common Shares may negatively impact the trading price of the Company's securities.***

 ****

The Company has issued Common Shares in the past and will continue to issue Common Shares to finance its activities in the future. In addition, newly issued or outstanding options, warrants, and broker warrants to purchase Common Shares may be exercised, resulting in the issuance of additional Common Shares. Any such issuance of additional Common Shares would result in dilution to the Company's shareholders, and even the perception that such an issuance may occur could have a negative impact on the trading price of the Common Shares.

***The Common Shares could be influenced by research and reports that industry or securities analyst may be published.***

The trading market for the Common Shares could be influenced by research and reports that industry and/or securities analysts may publish about the Company, its business, the market or its competitors. The Company does not have any control over these analysts and cannot assure that such analysts will cover the Company or provide favorable coverage. If any of the analysts who may cover the Company's business change their recommendation regarding the Company's stock adversely, or provide more favorable relative recommendations about its competitors, the stock price would likely decline. If any analysts who may cover the Company's business were to cease coverage or fail to regularly publish reports on the Company, it could lose visibility in the financial markets, which in turn could cause the stock price or trading volume to decline.

***The Company is subject to the continued listing criteria of the CSE and the OTC QB, and its failure to satisfy these criteria may result in delisting of its Common Shares from the CSE and the OTC QB.***

 ****

The Company's Common Shares are currently listed for trading on the CSE and quoted on the OTC QB. In order to maintain the listing on the CSE and the quotation on the OTC QB or any other securities exchange the Company may trade on, the Company must maintain certain financial and share distribution targets, including maintaining a minimum number of public shareholders. In addition to objective standards, these exchanges may delist the securities of any issuer if, in the exchange's opinion: its financial condition and/or operating results appear unsatisfactory; if it appears that the extent of public distribution or the aggregate market value of the security has become so reduced as to make continued listing inadvisable; if the Company sells or disposes of its principal operating assets or ceases to be an operating company; if the Company fails to comply with the listing requirements; or if any other event occurs or any condition exists which, in their opinion, makes continued listing on the exchange inadvisable.

If the CSE, the OTC QB or any other exchange or quotation service were to delist the Common Shares, investors may face material adverse consequences, including, but not limited to, a lack of trading market for the Common Shares, reduced liquidity, decreased analyst coverage, and/or an inability for the Company to obtain additional financing to fund its operations.

***The Company faces risks related to compliance with corporate governance laws and financial reporting standards.***

 ****

The Sarbanes-Oxley Act of 2002, as well as related new rules and regulations implemented by the SEC and the Public Company Accounting Oversight Board, require changes in the corporate governance practices and financial reporting standards for public companies. These laws, rules and regulations, including compliance with Section 404 of the Sarbanes-Oxley Act of 2002 relating to internal control over financial reporting, referred to as Section 404, materially increase the Company's legal and financial compliance costs and make certain activities more time-consuming and burdensome.

**DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS**

*Except for statements of historical facts, this Prospectus contains forward-looking statements involving risks and uncertainties, including but not limited to, those described in the Risk Factor section hereof. The words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan" or the negative of these terms and similar expressions or variations thereof are intended to forward looking statements. Such statements reflect the current view of the Registrant with respect to future events and are subject to risks, uncertainties, assumptions and other factors (including the risks contained in the section of this registration statement on Form S-1 entitled "Risk Factors") relating to the Registrant's industry, the Registrant's operations and results of operations and any businesses that may be acquired by the Registrant. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.*

*Although the Registrant believes that the expectations reflected in the forward-looking statements are reasonable, the Registrant cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the Registrant does not intend to update any of the forward-looking statements to conform these statements to actual results. The following discussion should be read in conjunction with the Registrant's financial statements and the related notes included in this registration statement on Form S-1. This Prospectus should be read in conjunction with our financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022, and September 30, 2022.*

**USE OF PROCEEDS**

Assuming we sell the maximum amount of Common Shares offered pursuant to this prospectus, we estimate that the net proceeds from this offering will be between approximately $4.5 million based on the minimum offering and $9.2 million based on the maximum offering based on an assumed public offering price of $________ per Common Share, and after deducting estimated Placement Agent fees and estimated offering expenses payable by us. Because this is a best efforts offering, the actual offering amount, Placement Agents' fees and net proceeds to us are not presently determinable.

We currently intend to use the net proceeds we receive from this offering to advance the restart and development of the Bunker Hill Mine, and for general corporate purposes.

---

| | | |
|:---|:---|:---|
| **Purpose** | **Approximate Use of Net Proceeds** | **Approximate Use of Net Proceeds** |
|  | **Minimum Offering** | **Maximum Offering** |
| Restart and development of Bunker Hill Mine – key milestones | $2.8 million | $4.3 million |
| Restart and development of Bunker Hill Mine – other | $0.4 million | $3.4 million |
| General corporate purposes | $1.3 million | $1.5 million |
| **Total** | $**4.5 million** | $**9.2 million** |

---

"Restart and development of Bunker Hill Mine – key milestones" is envisaged to include (i) completion of the ramp decline connecting the 5 and 6 levels of the mine; (ii) completion of demolition of the existing mill building; (iii) completion of plant engineering and civil works for installation of the process plant; and (iv) finalization of the purchase of the new ball mill, the key anticipated remaining component of the process plant required for the mine restart. "Restart and development of Bunker Hill Mine – other" is envisaged to include the procurement of long-lead time equipment and instrumentation, underground development activities, refurbishment of mill components acquired to date and other mine-site activities. "General corporate purposes" includes water treatment costs, other operations and administration costs, and legal and accounting costs. No amounts are envisaged to be paid to affiliates or promoters from either the minimum or maximum offering.

Based on our planned use of the net proceeds and assuming we sell the maximum amount of Common Shares offered by this prospectus, we estimate such funds, together with our existing cash and cash equivalents, will be sufficient for us to fund our operating expenses and capital expenditure requirements through at least April 1, 2023. In the event we sell the minimum amount of Common Shares, we estimate that such funds will fund our operations through April 1, 2023. We have based this estimate on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we expect.

The expected use of the net proceeds from the offering represents our intentions based upon our current plans and business conditions. The amounts we actually expend in these areas, and the timing thereof, may vary significantly from our current intentions and will depend on a number of factors, including the success of our mine restart program, cash generated from future operations and actual expenses to operate our business. See "*Risk Factors*".

**MARKET PRICE OF OUR COMMON SHARES AND RELATED STOCKHOLDER MATTERS**

The Common Shares are listed for trading on the CSE under the trading symbol "BNKR" and on the OTCQB under the symbol "BHLL". The closing price of the Common Shares on ●, 2022, being the last trading day of the Common Shares prior to filing this Prospectus, was C$● on the CSE, and $● on the OTCQB. Although our Common Shares are quoted on the CSE and OTCQB, there is a limited trading market for our Common Shares. Because our Common Shares are is thinly traded, any reported sale prices may not be a true market-based valuation of our Common Shares. The following table sets forth the range of high and low closing bid prices per Common Share since January 1, 2020. The quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | CSE C$ | CSE C$ | OTC $ | OTC $ |
| Period | High | Low | High | Low |
| First Quarter 2020 | 0.78 | 0.10 | Not Quoted | Not Quoted |
| Second Quarter 2020 | 1.01 | 0.50 | Not Quoted | Not Quoted |
| Third Quarter 2020 | 0.80 | 0.30 | Not Quoted | Not Quoted |
| Fourth Quarter 2020 | 0.60 | 0.42 | Not Quoted | Not Quoted |
| First Quarter 2021 | 0.61 | 0.28 | Not Quoted | Not Quoted |
| Second Quarter 2021 | 0.36 | 0.26 | 0.32 | 0.21 |
| Third Quarter 2021 | 0.28 | 0.18 | 0.2503 | 0.1439 |
| Fourth Quarter 2021 | 0.42 | 0.17 | 0.3214 | 0.1436 |
| First Quarter 2022 | 0.375 | 0.255 | 0.33 | 0.20 |
| Second Quarter 2022 | 0.30 | 0.20 | 0.2471 | 0.15 |
| Third Quarter 2022 | 0.225 | 0.115 | 0.169 | 0.085 |
| Fourth Quarter 2022 (Through November __, 2022) | 0.20 | 0.085 | 0.15 | 0.0659 |

---

**Holders**

As of January 3, 2023, we had 157 registered holders of record of our Common Shares. A substantially greater number of holders of our Common Shares are "street name" or beneficial holders, whose shares of record are held through banks, brokers, other financial institutions and registered clearing agencies.

**DILUTION**

If you invest in our securities in this offering, your interest will be diluted to the extent of the difference between the assumed public offering price per Common Share and the as adjusted net tangible book value per Common Share immediately after this offering.

Our net tangible book value is the amount of our total tangible assets less our total liabilities. We had a net tangible book value as of September 30, 2022 of $(14,735,169), or approximately $(0.07) per Common Share.

As adjusted net tangible book value is our net tangible book value, plus the effect of the sale of our Common Shares in this offering at the public offering price of approximately $_____ per Common Share and after deducting the Placement Agent fees and commissions and other estimated offering expenses payable by us.

Assuming we sell the maximum number of shares offered by this prospectus, our as adjusted net tangible book value as of September 30, 2022 would have been approximately $__________, or approximately $________ per share. Assuming we sell the maximum number of shares offered by this prospectus, this amount represents an immediate increase in as adjusted net tangible book value of approximately $______ per share to our existing stockholders, and an immediate dilution of $_______ per share to new investors participating in this offering. Dilution per share to new investors is determined by subtracting pro forma as adjusted net tangible book value per share after this offering from the public offering price per share paid by new investors.

The following table illustrates this per share dilution (assuming we sell the maximum number of shares offered by this prospectus):

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| | |
|:---|:---|
| Assumed public offering price per Common Share | $|
| Net tangible book value per share as of September 30, 2022 | $|
| Increase in as adjusted net tangible book value per share after this offering | $|
| Pro forma as adjusted net tangible book value per share after giving effect of this offering | $|
| Dilution in pro forma as adjusted net tangible book value per share to new investors | $|

---

Each $0.01 increase (decrease) in the public offering price of $______ per share would increase (decrease) the as adjusted net tangible book value per share by $_____, and the dilution per share to new investors in this offering by $_____, assuming the maximum number of Common Shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the Placement Agent fees and commissions and estimated offering expenses payable by us. Each increase of 1,000,000 Common Shares sold in this offering would increase (decrease) our as adjusted net tangible book value by approximately $____ and the dilution per share to new investors in this offering by $_______, assuming that the public offering price per share remains the same and after deducting Placement Agent fees and commissions and estimated offering expenses payable by us.

The above discussion and table is based on 219,649,187 shares outstanding as of September 30, 2022, assumes the sale of Common Shares based on an assumed public offering price of $____, and excludes the following other securities as of September 30, 2022:

● 29,214,197 Common Shares reserved for issuance under our equity incentive plans, of which there were (i) outstanding options to purchase 9,305,636 Common Shares at a weighted average exercise price of C$0.52 per share, (ii) 426,000 Common Shares underlying unvested restricted share units, or RSUs, and (iii) 19,482,561 Common Shares available for future grant;

● 9,852,090 additional Common Shares which were issued after September 30, 2022 but before the date of this prospectus

● 6,876,530 additional Common Shares reserved for issuance as a result of an increase in the maximum number of restricted share units issuable under the Company's RSU Plan after September 30, 2022;

● 4,396,741 Common Shares reserved for issuance for additional RSUs which were issued after September 30, 2022;

● 162,129,064 Common Shares reserved for issuance pursuant to outstanding warrants; 5,470,799 Common Shares reserved for issuance pursuant to broker warrants;

● 98,312,276 Common Shares reserved for issuance under the Series 1 Convertible Debenture and Series 2 Convertible Debenture

● &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares issuable upon the exercise of the placement agent's warrants with an exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to be issued to the placement agents or their designees in connection with this offering.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

 

**SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS**

*Certain statements in this prospectus, including statements in the following discussion, are what are known as "forward looking statements", which are basically statements about the future. For that reason, these statements involve risk and uncertainty since no one can accurately predict the future. Words such as "plans," "intends," "will," "hopes," "seeks," "anticipates," "expects "and the like often identify such forward looking statements, but are not the only indication that a statement is a forward-looking statement. Such forward looking statements include statements concerning the company's plans and objectives with respect to the present and future operations of the company, and statements which express or imply that such present and future operations will or may produce revenues, income or profits. Numerous factors and future events could cause the company to change such plans and objectives or fail to successfully implement such plans or achieve such objectives, or cause such present and future operations to fail to produce revenues, income or profits. Therefore, the reader is advised that the following discussion should be considered in light of the discussion of risks and other factors contained in this prospectus and in the company's other filings with the SEC. No statements contained in the following discussion should be construed as a guarantee or assurance of future performance or future results.*

**Background and Overview**

*Overview*

The Company's sole focus is the development and restart of its 100% owned flagship asset, the Bunker Hill mine (the "Mine"). The Mine remains the largest single producing mine by tonnage in the Silver Valley region of northwest Idaho, producing over 165 million ounces of silver and 5 million tons of base metals between 1885 and 1981. The Bunker Hill Mine is located within Operable Unit 2 of the Bunker Hill Superfund site (EPA National Priorities Listing IDD048340921), where cleanup activities have been completed.

In early 2020, a new management team comprised of former executives from Barrick Gold Corp. assumed leadership of the Company. Since that time, the Company has conducted multiple exploration campaigns, published multiple economic studies, purchased the Bunker Hill Mine, purchased a process plant, and advanced the rehabilitation and development of the Mine. The Company is focused on completing the financing for, and execution of, a potential restart of operations at the Mine.

*Lease and Purchase of the Bunker Hill Mine*

The Company purchased the Bunker Hill Mine in January 2022, as described below.

Prior to purchasing the Mine, the Company had entered into a series of agreements with Placer Mining Corporation ("Placer Mining"), the prior owner, for the lease and option to purchase the Mine. The first of these agreements was announced on August 28, 2017, with subsequent amendments and/or extensions announced on November 1, 2019, July 7, 2020, and November 20, 2020.

Under the terms of the November 20, 2020 amended agreement (the "Amended Agreement"), a purchase price of $7,700,000 was agreed, with $5,700,000 payable in cash (with an aggregate of $300,000 to be credited toward the purchase price of the Mine as having been previously paid by the Company) and $2,000,000 in Common Shares of the Company. The Company agreed to make an advance payment of $2,000,000, credited toward the purchase price of the Mine, which had the effect of decreasing the remaining amount payable to purchase the Mine to an aggregate of $3,400,000 payable in cash and $2,000,000 in Common Shares of the Company.

The Amended Agreement also required payments pursuant to an agreement with the U.S. Environmental Protection Agency ("EPA") whereby for so long as the Company leases, owns and/or occupies the Mine, the Company would make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA's claim for historical water treatment cost recovery in accordance with the Settlement Agreement reached with the EPA in 2018. Immediately prior to the purchase of the Mine, the Company's liability to EPA in this regard totaled $11,000,000.

The Company completed the purchase of the Bunker Hill Mine on January 7, 2022. The terms of the purchase price were modified to $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of Common Shares. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see "EPA 2018 Settlement Agreement & 2021 Amended Settlement Agreement" section below).

*EPA 2018 Settlement Agreement & 2021 Amended Settlement Agreement*

Bunker Hill entered into a Settlement Agreement and Order on Consent with the EPA on May 15, 2018. This agreement limits the Company's exposure to the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") liability for past environmental damage to the mine site and surrounding area to obligations that include:

● Payment of $20,000,000 for historical water treatment cost recovery for amounts paid by the EPA from 1995 to 2017

● Payment for water treatment services provided by the EPA at the Central Treatment Plant ("CTP") in Kellogg, Idaho until such time that Bunker Hill either purchases or leases the CTP or builds a separate EPA-approved water treatment facility

● Conducting a work program as described in the Ongoing Environmental Activities section of this study

In December 2021, in conjunction with its intention to purchase the mine complex, the Company entered into an amended Settlement Agreement (the "Amendment") between the Company, Idaho Department of Environmental Quality, US Department of Justice and the EPA modifying the payment schedule and payment terms for recovery of historical environmental response costs at Bunker Hill Mine incurred by the EPA. With the purchase of the mine subsequent to the end of the period, the remaining payments of the EPA cost recovery liability would be assumed by the Company, resulting in a total of $19,000,000 liability to the Company, an increase of $8,000,000. The new payment schedule included a $2,000,000 payment to the EPA within 30 days of execution of this amendment, which was made.

The remaining $17,000,000 will be paid on the following dates:

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| | |
|:---|:---|
| **Date** | **Amount** |
| November 1, 2024 | $3000000 |
| November 1, 2025 | $3000000 |
| November 1, 2026 | $3000000 |
| November 1, 2027 | $3000000 |
| November 1, 2028 | $3000000 |
| November 1, 2029 | $2,000,000 plus accrued interest |

---

The resumption of payments in 2024 were agreed in order to allow the Company to generate sufficient revenue from mining activities at the Bunker Hill Mine to address remaining payment obligations from free cash flow.

The changes in payment terms and schedule were contingent upon the Company securing financial assurance in the form of performance bonds or letters of credit deemed acceptable to the EPA totaling $17,000,000, corresponding to the Company's cost recovery obligations to be paid in 2024 through 2029 as outlined above. Should the Company fail to make its scheduled payment, the EPA can draw against this financial assurance. The amount of the bonds or letters of credit will decrease over time as individual payments are made. If the Company failed to post the final financial assurance within 180 days of the execution of the Amendment, the terms of the original agreement would be reinstated.

During the quarter ended June 30, 2022, the Company was successful in obtaining the financial assurance. Specifically, a $9,999,000 payment bond and a $7,001,000 letter of credit were secured and provided to the EPA. This milestone provides for the Company to recognize the effects of the change in terms of the EPA liability as outlined in the December 20, 2021, agreement. Once the financial assurance was put into place, the restructuring of the payment stream under the Amendment occurred with the entire $17,000,000 liability being recognized as long-term in nature. The aforementioned payment bond and letter of credit were secured by $2,475,000 and $7,001,000 of cash deposits, respectively as of September 30, 2022.

During October 2022, the Company reported that it had been successful in securing a new payment bond to replace the aforementioned $7,001,000 letter of credit, in two stages. Initially, the letter of credit was reduced to $2,000,001 as a result of a new $5,000,000 payment bond obtained through an insurance company. The collateral for the new payment bond is comprised of a $2,000,000 letter of credit and land pledged by third parties, with whom the Company has entered into a financing cooperation agreement that contemplates a monthly fee of $20,000 (payable in cash or common shares of the Company, at the Company's election). The new payment bond is scheduled to increase to $7,001,000 (from $5,000,000) upon the advance of the multi-metals Stream from Sprott Private Resource Streaming & Royalty Corp.

*Project Finance Package with Sprott Private Resource Streaming & Royalty Corp.*

On December 20, 2021, the Company executed a non-binding term sheet outlining a $50,000,000 project finance package with Sprott Private Resource Streaming and Royalty Corp. ("SRSR"). The non-binding term sheet with SRSR outlined a project financing package that the Company expects to fulfill the majority of its funding requirements to restart the Mine. The term sheet consisted of an $8,000,000 royalty convertible debenture (the "RCD"), a $5,000,000 convertible debenture (the "CD1"), and a multi-metals stream of up to $37,000,000 (the "Stream"). The CD1 was subsequently increased to $6,000,000, increasing the project financing package to $51,000,000.

On June 17, 2022, the Company consummated a new $15,000,000 convertible debenture (the "CD2"). As a result, total potential funding from SRSR was further increased to $66,000,000 including the RCD, CD1, CD2 and the Stream (together, the "Project Financing Package").

The Company closed the $8,000,000 RCD on January 7, 2022. The RCD bears interest at an annual rate of 9.0%, payable in cash or Common Shares at the Company's option, until such time that SRSR elects to convert a royalty, with such conversion option expiring at the earlier of advancement of the Stream or July 7, 2023 (subsequently amended as described below). In the event of conversion, the RCD will cease to exist and the Company will grant a royalty for 1.85% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company's 2021 ground geophysical survey (the "SRSR Royalty"). A 1.35% rate will apply to claims outside of these areas. The RCD was initially secured by a share pledge of the Company's operating subsidiary, Silver Valley, until a full security package was put in place concurrent with the consummation of the CD1. In the event of non-conversion, the principal of the RCD will be repayable in cash.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the RCD, including an amendment of the maturity date from July 7, 2023, to March 31, 2025. The parties also agreed to a Royalty Put Option such that in the event the RCD is converted into a royalty as described above, the holder of the royalty will be entitled to resell the royalty to the Company for $8,000,000 upon default under the CD1 or CD2 until such time that the CD1 and CD2 are paid in full.

The Company closed the $6,000,000 CD1 on January 28, 2022, which was increased from the previously announced $5,000,000. The CD1 bears interest at an annual rate of 7.5%, payable in cash or shares at the Company's option, and matures on July 7, 2023 (subsequently amended, as described below). The CD1 is secured by a pledge of the Company's properties and assets. Until the closing of the Stream, the CD1 was to be convertible into Common Shares at a price of C$0.30 per Common Share, subject to stock exchange approval (subsequently amended, as described below). Alternatively, SRSR may elect to retire the CD1 with the cash proceeds from the Stream. The Company may elect to repay the CD1 early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the CD1, including that the maturity date would be amended from July 7, 2023, to March 31, 2025, and that the CD1 would remain outstanding until the new maturity date regardless of whether the Stream is advanced, unless the Company elects to exercise its option of early repayment. The Company determined that amendments to the terms should not be treated as an extinguishment of CD1, but as a debt modification.

The Company closed the $15,000,000 CD2 on June 17, 2022. The CD2 bears interest at an annual rate of 10.5%, payable in cash or shares at the Company's option, and matures on March 31, 2025. The CD2 is secured by a pledge of the Company's properties and assets. The repayment terms include 3 quarterly payments of $2,000,000 each beginning June 30, 2024, and $9,000,000 on the maturity date.

In light of the Series 2 Convertible Debenture financing, the previously permitted additional senior secured indebtedness of up to $15 million for project finance has been removed.

A minimum of $27,000,000 and a maximum of $37,000,000 (the "Stream Amount") will be made available under the Stream, at the Company's option, once the conditions of availability of the Stream have been satisfied including confirmation of full project funding by an independent engineer appointed by SRSR. If the Company draws the maximum funding of $37,000,000, the Stream would apply to 10% of payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 55 million pounds of zinc, 35 million pounds of lead, and 1 million ounces of silver (subsequently amended, as described below). Thereafter, the Stream would apply to 2% of payable metals sold. If the Company elects to draw less than $37,000,000 under the Stream, the percentage and quantities of payable metals streamed will adjust pro-rata. The delivery price of streamed metals will be 20% of the applicable spot price. The Company may buy back 50% of the Stream Amount at a 1.40x multiple of the Stream Amount between the second and third anniversary of the date of funding, and at a 1.65x multiple of the Stream Amount between the third and fourth anniversary of the date of funding. As of September 30, 2022, the Stream had not been advanced.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed that the minimum quantity of metal delivered under the Stream, if advanced, will increase by 10% relative to the amounts noted above.

*Process Plant*

On January 25, 2022, the Company announced that it had entered into a non-binding Memorandum of Understanding ("MOU") with Teck Resources Limited ("Teck") for the purchase of a comprehensive package of equipment and parts inventory from its Pend Oreille site (the "Process Plant") in eastern Washington State, approximately 145 miles from the Bunker Hill Mine by road. The package comprises substantially all processing equipment of value located at the site, including complete crushing, grinding and flotation circuits suitable for a planned ~1,500 ton-per-day operation at Bunker Hill, and total inventory of nearly 10,000 components and parts for mill, assay lab, conveyer, field instruments, and electrical spares. The Company paid a $500,000 non-refundable deposit in January 2022.

On March 31, 2022, the Company announced that it had reached an agreement with a subsidiary of Teck to satisfy the remaining purchase price for the Process Plant by way of an equity issuance of the Company. Teck will receive 10,416,667 units of the Company (the "Teck Units") at a deemed issue price of C$0.30 per unit. Each Teck Unit consists of one Common Share and one Common Share purchase warrant (the "Teck Warrants"). Each whole Teck Warrant entitles the holder to acquire one Common Share at a price of C$0.37 per Common Share for a period of three years. The equity issuance and purchase of the Process Plant occurred on May 13, 2022.

 

*Ball Mill upgrade*

 

On August 30, 2022, the Company entered into an agreement to purchase a ball mill from D'Angelo International LLC for $675,000. The purchase of the mill is to be made in three cash payments:

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| |
|:---|
| $100,000 by September 15, 2022 as a non-refundable deposit (paid) |
| $100,000 by October 15, 2022 (paid) |
| $475,000 by December 15, 2022 |

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At September 30, 2022, the Company paid $100,000 towards the purchase as a non-refundable deposit.

**Results of Operations**

The following discussion and analysis provide information that is believed to be relevant to an assessment and understanding of the results of operation and financial condition of the Company for the year ended December 31, 2021, the six-month period ended December 31, 2020, and the fiscal year ended June 30, 2020, and the three and nine-month periods ended September 30, 2022 and September 30, 2021. Unless otherwise stated, all figures herein are expressed in U.S. dollars, which is the Company's functional currency.

***Comparison of the year ended December 31, 2021 and the six months ended December 31, 2020***

Revenue

During the year ended December 31, 2021 the Company generated no revenue (six months ended December 31, 2020 - $nil).

Expenses

During the year ended December 31, 2021, the Company reported total operating expenses of $18,752,504 (six months ended December 31, 2020 - $9,454,396).

The increase in total operating expenses is due to an increase in operation and administration expenses, exploration expenses, legal and accounting expenses and consulting expenses when compared to the six-month period ended December 31, 2020.

For financial accounting purposes, the Company reports all direct exploration expenses under the exploration expense line item of the statement of operations. Certain indirect expenses may be reported as operation and administration expense or consulting expense on the statement of operations.

Net Loss and Comprehensive Loss

The Company had a net loss and comprehensive loss of $6,402,277 for the year ended December 31, 2021 (six months ended December 31, 2020 - $2,164,454). The increase in net loss compared to the six-month period ended December 31, 2020 was a result of increased operating expenses during the twelve-month period when compared to the six-month period. Additionally, there was accretion and interest from debt and a loss on debt settlement during the year ended December 31, 2021.

Special note should be made of the fact that the period ended December 31, 2021 was a twelve-month year, while the comparative transition period ended December 31, 2020 was a six-month period, with variations in all categories of expense varying as a natural function of the differences in length of time periods.

***Comparison of the six months ended December 31, 2020 and the year ended June 30, 2020***

Revenue

During the six months ended December 31, 2020 and June 30, 2020, the Company generated no revenue.

Expenses

During the six months ended December 31, 2020, the Company reported total operating expenses of $9,454,396 as compared to $10,793,823 during the year ended June 30, 2020. Increases in operation and admin expenses, legal and accounting expenses and consulting expenses for the six-month period was offset by a decrease in exploration expenses and recognition of a gain on settlement of accounts payable.

Net Loss and Comprehensive Loss

The Company had a net loss and comprehensive loss of $2,164,454 for the six months ended December 31, 2020, as compared to a net loss and comprehensive loss of $31,321,791 for the year ended June 30, 2020. The change in net loss between the two periods was largely affected by the change in derivative liabilities. A gain related to the change in derivative liability for the six-month period ended December 31, 2020 was $10,503,941 compared to a loss related to the change in derivative liability for the year ended June 30, 2020 of $18,843,947, a total change of $29,347,888 between the two comparative periods.

Special note should be made of the fact that the transition period ended December 31, 2020 was a six-month period, while the comparative period ended June 30, 2020 was a twelve-month year, with variations in all categories of expense varying as a natural function of the differences in length of time periods.

***Comparison of the three and nine months ended September 30, 2022 and 2021***

Revenue

During the nine months ended September 30, 2022 and 2021, respectively, the Company generated no revenue.

Expenses

During the three and nine months ended September 30, 2022, the Company reported total operating expenses of $3,824,948 and $13,291,484, respectively. Compared to the three and nine months ended September 30, 2021, the Company reported total operating expenses of $2,464,945 and $12,384,474, respectively.

The increase in total operating expenses is primarily due to an increase in mine preparation legal and consulting fees when compared to the three and nine-month periods ended September 30, 2021. The Company was engaged in an active exploration campaign during the three and nine-month periods ended September 30, 2021, whereas the Company's primary focus during the three and nine-month periods ended September 30, 2022 was on advancing mine restart efforts including underground development and process plant demobilization activities

The significant increase in consulting fees reflects the engagement of numerous engineering, geological and other professional firms to assist the Company in consummating several complex debt and equity financings, the purchases of the Mine, the EPA financial assurance requirements, fair value measurements of complex instruments, and advancement of project activities. These fees were somewhat offset by a decrease in operational and administration expenses.

For financial accounting purposes, the Company reports all direct exploration expenses under the exploration expense line item of the condensed interim consolidated statements of income (loss) and comprehensive income (loss). Management determined that costs of the mine in the most recent quarter constituted mine preparation costs rather than exploration costs, since it was not focused on expanding the mineral resources but was invested to execute on the tasks and projects required to get the mine into shape for production activities. Certain indirect expenses may be reported as operation and administration expense or consulting expense on the unaudited condensed interim consolidated statements of income and comprehensive income.

**Liquidity and Capital Resources**

***Going Concern***

These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $59,626,902 as of September 30, 2022 and further losses are anticipated in the development of its business. Additionally, the Company owes a total of $7,420,024 net of discount to the EPA (see Note 6) that is classified as long-term debt. The Company does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Company's ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying condensed interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets, debt and multi-metals stream financings. These unaudited condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

The ability of the Company to emerge from the exploration stage is dependent upon, among other things, closing on the multi-metals stream transaction (see note 7), obtaining additional financing to continue operations, explore and developing the mineral properties and the discovery, development, and sale of reserves.

***Debt and Equity Financings, EPA obligations, and Mine Purchase***

As described above, during the nine months ended September 30, 2022, the Company closed on three convertible debentures totaling $29,000,000 and equity financings (net of issuance costs) totaling $7,769,745 and used the proceeds to purchase the Bunker Hill Mine, as well as satisfy short-term obligations to the EPA including satisfaction of its financial assurance commitments, cost recovery and water treatment payments, advancement of mine restart activities and the funding of working capital requirements.

***Current Assets and Total Assets***

As of September 30, 2022, the Company's balance sheet reflects that the Company had: i) total current assets of $11,787,942, compared to total current assets of $3,622,548 at December 31, 2021 – an increase of $8,165,394; and ii) total assets of $33,586,588, compared to total assets of $4,071,796 at December 31, 2021 – an increase of $29,568,792. The increase in current assets was primarily due to an increase in restricted cash as a result of the proceeds from the convertible debentures and equity financings. Total assets increased principally due to the increase in cash from financings and the purchase of the Bunker Hill Mine, and process plan.

***Current Liabilities and Total Liabilities***

As of September 30, 2022, the Company's balance sheet reflects that the Company had total current liabilities of $11,439,038 and total liabilities of $48,321,757, compared to total current liabilities of $22,795,277 and total liabilities of $38,314,164 at December 31, 2021. The decrease in the current liabilities is primarily reflective of the EPA cost recovery liability being moved from current to long term liabilities. Total liabilities increased as a result of the closing of the three convertible debentures, offset by the decrease in the long-term derivative warrant liability, promissory note.

***Working Capital and Shareholders' Deficit***

On September 30, 2022, the Company had working capital of $384,904 and a shareholders' deficiency of $14,735,169 compared to negative working capital of $19,172,729 and a shareholders' deficiency of $34,242,368 for the year ended December 31, 2021. Working capital increased during the nine months ended September 30, 2022 primarily due to funding from debt and equity financings, and the reclassification of cost recovery liabilities from current to long-term. Shareholders' equity increased due to net income of $3,690,353 and $12,864,248 for the three and nine month periods ended September 30, 2022, driven by decreases in the fair value of the derivative warrant liability.

***Cash Flow***

During the nine months ended September 30, 2022, the Company had a net cash decrease of $382,230, which represents cash provided from convertible debentures and equity financings, with proceeds used to satisfy short-term obligations with the EPA, purchase of the Bunker Hill Mine and a processing plant, partial repayment of the outstanding promissory note, advancement of mine restart activities, and funding of working capital requirements.

During the nine months ended September 30, 2022, cash of $26,531,674 was used in operating activities, primarily due to the usage of $9,476,000 to secure the Company's financial assurance obligations with the EPA, $3,000,000 of payments against EPA cost recovery and water treatment payables, funding of mine restart activities, and other working capital requirements. This compares with cash used in operating activities of $9,372,253 for the nine months ended September 30, 2021.

During the nine months ended September 30, 2022, cash of $9,555,473 was used in investing activities for the purchase of the Bunker Hill Mine, a process plant, equipment, and real estate, compared with $94,693 used for investing activities in the nine months ended September 30, 2021

During the nine months ended September 30, 2022, cash of $35,704,917 was provided by financing activities by the three convertible debentures and the equity financings, offset by cash used for lease payments and repayment of a promissory note, compared with cash of $8,411,534 provided by financing activities in the nine months ended September 30, 2021.

**Subsequent Events**

During October 2022, the Company issued 8,252,940 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ending September 30, 2022.

During October 2022, the Company reported that it has been successful in securing a new payment bond to secure a portion of its cost recovery obligations to the US Environmental Protection Agency (the "US EPA"), resulting in a $3,000,000 improvement in liquidity. As reported in the Company's financial statements for the period ending September 30, 2022, the Company held restricted cash of $9,476,000 as of September 30, 2022 which included $7,001,000 as collateral for a letter of credit to the US EPA. This letter of credit has been reduced to $2,000,001 as a result of a new $5,000,000 payment bond obtained through an insurance company. The collateral for the new payment bond is comprised of a $2,000,000 letter of credit and land pledged by third parties, with whom the company has entered into a financing cooperation agreement that contemplates a monthly fee of $20,000 (payable in cash or common shares of the Company, at the Company's election).

The new payment bond is scheduled to increase to $7,001,000 (from $5,000,000) upon the advance of the multi-metals Stream from Sprott Private Resource Streaming & Royalty Corp. (see the Company's news release of December 20, 2021 for further detail), which would result in a further $2,001,000 improvement in liquidity for the Company from the release of restricted cash.

In October 2022, the Company reported that it awarded a new water management consulting services contract to MineWater LLC ("MineWater") for strategic environmental support at the Bunker Hill Mine through September 30, 2023. Pursuant to the contract, the Company agreed to pay MineWater $60,000 in cash and issue 1,599,150 Restricted Share Units, which were issued and vested immediately to common shares of the Company that are subject to customary resale restrictions in Canada and the United States.

In November 2022, the Company awarded 4,391,815 Restricted Share Units to certain executives in relation to an annual grant under its Long-Term Incentive Plan. The RSUs vest in one-third increments on March 31 of 2023, 2024, and 2025.

**Critical accounting estimates**

The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Estimates and judgments are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes can differ from these estimates. The key sources of estimation uncertainty that have a significant risk of causing material adjustment to the amounts recognized in the financial statements are:

***Share-based payments***

Management determines costs for share-based payments using market-based valuation techniques. The fair value of the share awards and warrant liabilities are determined at the date of grant using generally accepted valuation techniques and for warrant liabilities at each balance sheet date thereafter. Assumptions are made and judgment used in applying valuation techniques. These assumptions and judgments include estimating the future volatility of the stock price and expected dividend yield. Such judgments and assumptions are inherently uncertain. Changes in these assumptions affect the fair value estimates.

***Warrants and accrued liabilities***

Estimating the fair value of derivative warrant liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the warrants and conversion feature derivative liability, volatility and dividend yield and making assumptions about them.

The Company has to make estimates to accrue for certain expenditures due to delay in receipt of third-party vendor invoices. These accruals are made based on trends, history and knowledge of activities. Actual results may be different.

The Company makes monthly estimates of its water treatment costs, with a true-up to the annual invoice received from the IDEQ. Using the actual costs in the annual invoice, the Company will then reassess its estimate for future periods. Given the nature, complexity and variability of the various actual cost items included in the invoice, the Company has used the most recent invoice as its estimate of the water treatment costs for future periods.

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements.

**DESCRIPTION OF THE COMPANY'S BUSINESS AND PROPERTIES**

The Company's sole focus is the development and restart of its 100% owned flagship asset, the Bunker Hill mine (the "Mine"). The Mine remains the largest single producing mine by tonnage in the Silver Valley region of northwest Idaho, producing over 165 million ounces of silver and 5 million tons of base metals between 1885 and 1981. The Bunker Hill Mine is located within Operable Unit 2 of the Bunker Hill Superfund site (EPA National Priorities Listing IDD048340921), where cleanup activities have been completed.

*The Bunker Hill Mine*

The Mine is one of the most well-known base metal and silver mines in American history. Initial discovery and development of the Mine property began in 1885, and from that time until the Mine closed in 1981 it produced over 35.8 million tons of ore at an average mined grade of 8.76% lead, 4.52 ounces per ton silver, and 3.67% zinc, which represented 162Moz of silver, 3.16M lbs. of lead and 1.35M lbs. of zinc (Bunker Limited Partnership, 1985). Throughout the 95-year operating history of the mine, there were over 40 different orebodies discovered and mined, consisting of lead-silver-zinc mineralization. Although known for its significant lead and zinc production, 45-50% of the Net Smelter Value of its historical production came from its silver. The Company and Sullivan Mining Company had a strong history of regular dividend payments to shareholders from the time the Company went public in 1905 until it was acquired in a hostile takeover by Gulf Resources in 1968.

When the Mine first closed in 1981, it was estimated to still contain significant resources (Bunker Limited Partnership, 1985). The Mine and Smelter Complex were closed in 1981 when Gulf Resources was not able to continue to comply with new regulatory structures brought on by the passage of environmental statutes and as then enforced by the EPA. The Bunker Hill Lead Smelter, Electrolytic Zinc Plant and historic milling facilities were demolished about 25 years ago, and the area became part of the "National Priority List" for cleanup under EPA regulations, thereby pausing development of the Mine for over 30 years. The cleanup of the old smelter, zinc plant, and associated sites has been completed and management believes the Mine is well positioned for development and an eventual return to production.

A more detailed description of the Mine can be found in the "Technical Report Summary" section of this prospectus, including the current Mineral Resource Estimate, Mineral Reserves, an economic summary, property description and ownership, geology and mineralization, environmental studies and permitting, metallurgical testing, mining method, recovery methods, and current exploration and development.

*Restart Project Activities*

In early 2020, a new management team comprised of former executives from Barrick Gold Corp. assumed leadership of the Company. Thereafter and through 2021, the Company conducted multiple exploration campaigns, published multiple economic studies and Mineral Resource Estimates, and advanced the rehabilitation and development of the Mine. In December 2021, it announced a project finance package with Sprott Private Resource Streaming & Royalty Corp., an amended Settlement Agreement with the EPA, and the purchase of the Bunker Hill Mine, setting the stage for a rapid restart of the Mine.

In January 2022, with the closing of the purchase of the Bunker Hill Mine, the funding of the $8,000,000 Royalty Convertible Debenture and $6,000,000 Series Convertible Debenture, and the announcement of an MOU for the purchase of the Pend Oreille process plant from a subsidiary of Teck Resources Limited, the Company embarked on a program of activities with the goal of achieving a restart of the Mine at the end of 2023. Key milestones and achievements between January 2022 and the date of this prospectus have included the closing of the purchase of the Pend Oreille process plant, the demobilization of the process plant to the Bunker Hill site, the completion of demolition activities at the Pend Oreille site, a Prefeasibility Study envisaging the restart of the Mine by the end of 2023, and the completion of the primary portion of the ramp decline connecting the 5 and 6 Levels of the Bunker Hill Mine.

The Company's planned development timeline through 2022 and 2023 is shown in Figure 1.

**Figure 1: Bunker Hill Planned Development Timeline**

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*Technical Report Summary*

The following summary is extracted from the Technical Report and Pre-Feasibility Study for Underground Mining, Milling and Concentration of Lead, Silver and Zinc at the Bunker Hill Mine Coeur D' Alene Mining District Shoshone County, Idaho, USA with a Report Date of November 21, 2022 and an Effective Date of August 29, 2022 (the "Technical Report"). The following information does not purport to be a complete summary of the Technical Report, is subject to all the assumptions, qualifications and procedures set out in the Technical Report and is qualified in its entirety with reference to the full text of the Technical Report. Each of the authors of the Technical Report is an independent qualified person under NI 43-101 (each a "Qualified Person", and together the "Qualified Persons") and have approved the summary of the Technical Report below.

**Summary**

The Technical Report describes the mining and processing operations at the Company's 100% owned Bunker Hill Mine located near the town of Kellogg, Idaho.

The Technical Report considers a processing approach at Bunker where Pb, Ag and Zn mineralization is mined underground. Mineralized material will be conventionally milled and then concentrated by flotation of lead and silver (Pb/Ag) followed by flotation of zinc (Zn). Metal rich concentrates will then be sold to smelters in North America or overseas. Mill tailings will be deposited underground in the historic mining voids located throughout the Project.

Economic and Life of Mine highlights of the Technical Report are listed in Table 1-3 and Table 1-4. Table 1-1 lists the Mineral Resource Estimate for the Bunker Hill Mine and Table 1-2 lists the Mineral Reserves for the Bunker Hill Mine. Mineral Resources are reported according to the CIM Definition Standards of May 10, 2014 ("**CIM**"). The guidance and definitions of CIM are incorporated by reference in NI 43-101. Mineral Resources are geologically constrained and defined at economic cutoff grades that demonstrate reasonable prospects of eventual economic extraction. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

 

**Mineral Resource Estimate**

Geostatistics and estimates of mineralization were prepared by Mr. Scott Wilson, C.P.G., SME. Industry accepted grade estimation techniques were used to develop global mineralization block models for the Newgard, Quill and UTZ zones. The Mineral Resource Estimate considers underground mining and mill processing as a basis for reasonable prospects of eventual economic extraction. The total Mineral Resource estimate for the Bunker Hill Mine is listed in Table 1-1 at a cutoff grade of NSR 70 $/ton.

**1 Bunker Hill Mine Mineral Resource Estimate, Inclusive of Mineral Reserves, – NSR $70/ton cut off – Ag selling price of $20/oz (troy), Lead selling price of $1.00/lb, Zn selling price of $1.20/lb. Effective date of August 29, 2022)**

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(1) The Qualified Person for the above estimate is Scott Wilson, C.P.G., SME; effective August 29, 2022

(2) Measured, Indicated and Inferred classifications are based on the 2014 CIM Definition Standards.

(3) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability

(4) Net smelter return (NSR) is defined as the return from sales of concentrates, expressed in US$/t, i.e.: NSR = (Contained metal) \* (Metallurgical recoveries) \* (Metal Payability %) \* (Metal prices) – (Treatment, refining, transport and other selling costs). For the Mineral Resource Estimate, NSR values were calculated using updated open-cycle metallurgical results including recoveries of 85.1%, 84.2% and 88.2% for Zn, Ag and Pb respectively, and concentrate grades of 58% Zn in zinc concentrate, and 67% Pb and 12.13 oz/ton Ag in lead concentrate.

(5) Mineral Resources are estimated using a zinc price of $1.20 per pound, silver price of $20.00 per ounce, and lead price of $1.00 per pound.

(6) Historic mining voids, stopes and development drifting have been depleted from the Mineral Resource Estimate

(7) Totals may not add up due to rounding

**Mineral Reserves**

 

Mineral Reserves have been estimated for the Quill, Newgard and UTZ sections of the Project. Measured and Indicated (M & I) Mineral Resources were converted to Probable Mineral Reserves for the mine. Measured Mineral Resources were converted to Probable Mineral Reserves because of uncertainties associated with modifying factors that were taken into account in the conversion from Mineral Resources to Mineral Reserves.

Measured and Indicated Resources were converted to Probable Mineral Reserves by evaluating operating cost, projected metal revenues and estimated stope shapes and geometries. The general widths, plunge and shape of the Quill and Newgard mineralization lends itself well to transverse (perpendicular to strike) long hole open stoping (LHOS) with fill utilizing rubber tire equipment. The UTZ deposit is more amenable to cut-and-fill (CF) methods due to its shape and geometry. Extraction of the planned mine shapes is assumed to be 100% of the NSR $80/ton plan. Breakeven NSR is $70/ton for LHOS and $75/ton for cut-and-fill stopes.

Mineral Reserves were classified using the 2014 CIM Definition Standards. The mineral reserve statement is presented in Table 1-2. Mineral Reserves are estimated at an NSR value cutoff of $80/short ton at the reference point of saleable mill concentrates with an effective date of August 29, 2022.

**Table 1-2 Bunker Hill Mineral Reserve Estimate**

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(1) Plan Dilution is zero grade waste included in the designed stope shapes and probable tonnages

(2) Unplanned dilution is 5% external dilution added at zero grade

(3) Mineral Reserves stated are inclusive of all above mentioned dilutions and are factored for ore loss due to mining activities

(4) Net smelter return (NSR) is defined as the return from sales of concentrates, expressed in US$/t, i.e.: NSR = (Contained metal) \* (Metallurgical recoveries) \* (Metal Payability %) \* (Metal prices) – (Treatment, refining, transport and other selling costs). For the Mineral Reserve Estimate, NSR values were calculated using updated open-cycle metallurgical results including recoveries of 85.1%, 84.2% and 88.2% for Zn, Ag and Pb respectively, and concentrate grades of 58% Zn in zinc concentrate, and 67% Pb and 12.13 oz/ton Ag in lead concentrate.

(5) Mineral Reserves are estimated using a zinc price of $1.20 per pound, silver price of $20.00 per ounce, and lead price of $1.00 per pound.

(6) Historic mining voids, stopes and development drifting have been depleted from the Mineral Reserve Estimate

(7) Totals may not add up due to rounding

 

 

**Economic Summary**

The summary of the current projected financial performance of the Bunker Hill Mine is listed in Table 1-3. Sensitivities are summarized in Table 1-4.

**Table 1-3 Bunker Hill Project Economic Summary**

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**Table 1-4 Sensitivity Analysis**

 

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**Property Description and Ownership**

The Bunker Hill Mine is located in Shoshone County, Idaho with portions of the mine located within the cities of Kellogg and Wardner, Idaho in northwestern USA. The Kellogg Tunnel, which is the main access to the mine, is located at 47.53611°N latitude, 116.1381W longitude. The approximate elevation for the above cited coordinates is 2366 ft.

On December 15, 2021 BHMC signed a Purchase and Sale Agreement (PSA) with Placer Mining Corporation and both William and Shirley Pangburn to acquire full ownership of the subsequently listed mineral titles in addition to other Surface Rights and Real Property associated with land and structures of the Bunker Hill Mine.

On January 7, 2022, the Company closed the purchase of the Bunker Hill Mine. Mine assets were purchased for $7,700,000, with $300,000 of previous lease payments and a deposit of $2,000,000 applied to the purchase, resulting in cash paid at closing of approximately $5,400,000. The EPA obligation of $19,000,000 was assumed by Bunker Hill as part of the acquisition.

**Geology and Mineralization**

The Northern Idaho Panhandle Region in which the Bunker Hill Mine is located is underlain by the Middle Proterozoic-aged Belt-Purcell Supergroup of fine-grained, dominantly siliciclastic sedimentary rocks which extends from western Montana (locally named the Belt Supergroup) to southern British Columbia (locally named the Purcell Supergroup) and is collectively over 23,000 feet in total stratigraphic thickness.

Mineralization at the Bunker Hill Mine is hosted almost exclusively in the Upper Revett formation of the Ravalli Group, a part of the Belt Supergroup of Middle Proterozoic-aged, fine-grained sediments. Geologic mapping and interpretation progressed by leaps and bounds following the recognition of a predictable stratigraphic section at the Bunker Hill Mine and enabled the measurement of specific offsets across major faults, discussed in the following section. From an exploration and mining perspective, there were two critical conclusions from this research: all significant mineralized shoots are hosted in quartzite units where they are cut by vein structures, and the location of the quartzite units can be projected up and down section, and across fault offsets, to target extensions and offsets of known mineralized shoots and veins.

Mineralization at Bunker Hill Mine falls in four categories, described below from oldest to youngest events:

**Bluebird Veins (BB):** W—NW striking, SW-dipping (Fig. 7-11), variable ratio of sphalerite-pyrite-siderite mineralization. Thick, tabular cores with gradational margins bleeding out along bedding and fractures. Detailed description in Section 7.2.2.

**Stringer/Disseminated Zones:** Disseminated, fracture controlled and bedding controlled blebs and stringer mineralization associated with Bluebird Structures, commonly as halos to vein-like bodies or as isolated areas where brecciated quartzite beds are intersected by the W-NW structure and fold fabrics.

**Galena-Quartz Veins (GQ):** E to NE striking, S to SE dipping (Fig. 7-11), quartz-argentiferous galena +/-siderite-sphalerite-chalcopyrite-tetrahedrite veins, sinuous-planar with sharp margins, cross-cut Bluebird Veins. Detailed description in Section 7.2.2.

**Hybrid Zones:** Formed at intersections where GQ veins cut BB veins (Fig. 7-11), with open space deposition of sulfides and quartz in the vein refraction in quartzite beds, and replacement of siderite in the BB vein structure by argentiferous galena from the GQ Vein.

**Environmental Studies and Permitting**

Because the mine is on patented mining claims (privately-owned land), only a limited number of permits are required for mining and milling operations. These relate to: (1) air quality and emissions from crushing, milling and processing and (2) any refurbishment of surface buildings that may require construction permits.

The Bunker Hill Mine is located within the Bunker Hill Superfund site (EPA National Priorities Listing IDD048340921). Cleanup activities have been completed in Operable Unit 2 of the Bunker Hill Superfund Site where the mine is located though water treatment continues at the Central Treatment Plant (the "**CTP**") located near Bunker Hill Mine. The CTP is owned by the EPA and is operated by its contractors.

BHMC entered into a Settlement Agreement and Order on Consent with the US Environmental Protection Agency ("US EPA") and the US Department of Justice ("DOJ") on May 14, 2018. Section 9, Paragraph 33 of that agreement stipulates that BHMC must obtain a National Pollutant Discharge Elimination System ("NPDES") permit for effluent discharged by Bunker Hill Mine by May 14, 2023. This obligation exists and the deadline will occur at a point in time where restart activities are planned to occur.

BHMC will initiate a voluntary Environmental, Social and Health Impact Assessment ("ESHIA") for the activities described in this PFS and for its business model as a whole. This study is projected for completion in 2024 and will conform to ISO, IFC and GRI standards.

**Metallurgical Testing**

RDi initiated metallurgical test work on three samples designated Newgard, Quill and Utz with the primary objective of determining the process flowsheet and the metal recoveries and concentrate grades. Flotation testing was completed through locked-cycle testing, the results of which are displayed in table 1-5

**Table 1-5 Summary of Locked-Cycle Flotation Test Results**

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The open-cycle and locked-cycle tests were completed at a primary grind of P<sub>80</sub> 270 mesh for rougher flotation. Rougher scavenger flotation was included in both the lead and zinc circuits to increase the amount of value sent to the cleaner stages. Regrind of the lead rougher concentrate with a pebble mill was completed to a particle size of approximately P<sub>80</sub> 400 mesh for cleaner flotation. No regrind was completed with the zinc rougher concentrate.

**Figure 1-1 Locked-Cycle Test Process Flowsheet**

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BHMC has contracted SGS Canada Inc (SGS) to conduct a metallurgical study to further evaluate and optimize metal recovery for the Bunker Hill Project. The primary objective of the test program is to complete metallurgical test work to improve met results over the Pre-feasibility Study (PFS) performed by Resource Development Inc. (RDi) for the Bunker Hill Project.

**Mining Method**

Long-hole stoping with fill (LHOS), cut-and-fill and possibly room-and-pillar mining with fill are the only methods viable for sustained operations today. LHOS is the preferred mining method with limited cut-and-fill mining at Bunker Hill Mine. Room-and-pillar mining is not in the current plan. Timbered ground support has been replaced with newer ground support technology of rock bolts, mesh, shotcrete and steel sets as required.

Beginning in October of 2021 and completed in April of 2022, BHMC conducted a geotechnical investigation of the underground conditions at the Bunker Hill Mine. Data collection involved a data analysis of RQD values logged with previous exploration drilling, geotechnical logging of recently drilled rock cores and an extensive investigation of pre-existing underground excavations and development. Ground conditions are generally good to excellent at Bunker Hill Mine and the rest of the mines in the Silver Valley. Bunker Hill Mine does not have a history of rock burst events that are frequent in the deeper mines to the east.

 

**Recovery Methods**

Bunker Hill plans to re-construct a crush-grind-flotation-concentration mill from the nearby Pend Oreille (PO) mine in northern Washington on the Bunker Hill Kellogg Mine Yard. There currently is a large building that housed the historic machine shop at the Bunker Hill mine that will first need to be dismantled and removed for access to the existing slab. The future structures to house the grind-flotation-concentration circuit, as well as the secondary crushing circuit and concentrate storage facilities will need to be constructed.

The process consists of a primary and secondary ore crushing circuit, then a primary grinding circuit followed by two separate flotation circuits to recover lead, zinc, silver and gold into two separate concentrate products; a lead, silver, gold concentrate and a zinc concentrate. Approximately 648,000, short tons of ore will be processed a year at a rate of 1,800 stpd, or 79 stph at 95% availability.

**Figure 1-2 Bunker Hill Process Flowsheet**

 

 

**Current Exploration and Development**

Bunker Hill has a rare exploration opportunity available at the Bunker Hill Mine and has embarked on a new path to fully maximize the potential. A treasure trove of geologic and production data has been organized and preserved in good condition in the mine office since the shutdown of major mine operations in the early 1980s. This data represents 70+ years of proper scientific data and sample collection, with high standards of accuracy and precision that were generally at or above industry standards at the time.

The Company saw the wealth of information that was available but not readily usable and embarked on a scanning and digitizing program. From this they were able to build a 3D digital model of the mine workings and 3D surfaces and solids of important geologic features. To add to this, all of the historic drill core lithology logs and assay data (>2900 holes) was entered into a database and imported with the other data into Maptek Vulcan 3D software.

In addition to both continued geologic digitization and the completed 2021 exploration drill program, the Company has performed a geophysical survey over the summer of 2021. The survey was conducted as a ground geophysical 3DIP survey through DIAS Geophysical Ltd out of Saskatoon, SK.

**Conclusions**

The Pre-Feasibility Study demonstrates that the restart of the Bunker Hill mine can reasonably be expected to generate a positive return on investment with an after-tax IRR of 36% based on the reserves presented. It is reasonable to expect the conversion of Inferred resources to Indicated resources and indicated resources to measured resources to continue. Inferred Mineral Resources are considered too geologically speculative to have economic considerations applied to them to be classified as a Mineral Reserve.

The Technical Report is based on all available technical and scientific data available as of August 29, 2022. Mineral Resources are considered by the QP to meet the reasonable prospects of eventual economic extraction due two main factors; 1) cut-off grades are based on scientific data and assumptions related to the project and 2) Mineral Resources are estimated only within blocks of mineralization that have been accessible in the past by mining operations as well as by using generally accepted mining and processing costs that are similar to many projects in Idaho.

**Recommendations**

Exploration programs should focus on the definition of additional silver and other base metal resources. Resources that demonstrate the reasonable prospects of eventual economic extraction have been identified within the current mineral resource estimate. Specifically. significant silver mineralization encountered through exploration and past production suggests that these zones should be given as much weight as past Pb and Zn exploration and resource definition programs.

Metallurgical test work should be continued to include full variability testing through various sections of mineralization as development progresses.

Digitization of nearly 100 years of paper maps is constantly being updated. In addition to unlocking the understanding of the geometry of the mineral deposit much of the information describes the mined-out portion of the Project. This will be critical for future mineral resource estimates as mined out voids need to be accounted for.

Continued engineering and design work on the milling, process and backfill plants and systems are recommended. Backfill mix designs should be optimized. Construction level design and equipment bid packages are required to initiate construction and further define project economics and timelines.

Additional geotechnical work is recommended to optimize stope and pillar dimensions, as well as ground support standards. A mine ventilation survey should be completed once the 5 to 6-level breakthrough is completed and main fan installed. Regular ventilation surveys are recommended throughout development and operations.

Successive phases of work are not recommended for the advancement of the project.

**Table 1-6 Proposed Work Program to Advance Bunker Hill**

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| | |
|:---|:---|
| **Activity** | **Amount** |
| Geophysical Interpretation and Additional Geophysics | $0.05M |
| Environmental Studies | $0.03M |
| Geotechnical Studies | $0.15M |
| Mill and Process Plant Engineering | $1.70M |
| Hydraulic Backfill and Tailing Placement Engineering | $0.50M |
| **Total Recommended Budget** | $**2.43M** |

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*Project Infrastructure*

The Bunker Hill complex is a mature mine with much of the underground infrastructure and development still in place. The mill, smelter and tailing impoundment have been removed and these sites have been reclaimed. Part of the reclamation included surface water diversion structures which are still in use and are maintained in good condition. The original Bunker Hill mine offices, car and maintenance shops, and change house are located near the Kellogg Tunnel (KT) portal and are in serviceable condition.

Bunker Hill is located in Kellogg Idaho along the Interstate 90 corridor on the west side of what is traditionally known as the Silver Valley. It is 60 miles from the Spokane, WA airport to the west and 125 miles to the Missoula, MT airport to the east. The Silver Valley of north Idaho is a desirable place to live and is home to an enthusiastic and talented underground mining work force.

Mine power requirements will be met with the Avista Kellogg substation, located next to the Bunker Hill main offices supplying power to the mine and other local consumers. There are two existing distribution lines now supplying the mine from the Kellogg Avista substation. One feeds the surface mine facilities and the underground loads from the Kellogg side, the other feeds the Wardner mine yard and facilities. The current 3-phase 2.5kV mine distribution system on the Kellogg side is in the process of being upgraded to 3-phase 13.2kV.

Mine discharge water now gravity drains out the 9-level through the Kellogg Tunnel via a ditch adjacent to the rail line to the portal. It is then routed to a water treatment plant constructed by the EPA and currently operated by the Idaho Department of Environmental Quality (IDEQ).

BHMC commissioned Patterson & Cooke North America to perform tradeoff studies for costing and operating the mine backfill and tailing placement facilities. Results from the tradeoff studies led to the location of the plant on surface, both adjacent to the mill and at Wardner. Tailings thickening will take place inside the mill/process facility building, with the underflow being pumped to the tailings filtration plant located adjacent to the mill/process building. Vacuum filtration will take the thickened tailings and produce a filter cake material which will be deposited and stored in a load-out facility at the plant. A surface loader will transfer the filter cake tailings into overland haul trucks to deliver the material up to the Wardner side of operations along the return route from ROM ore haulage. Once delivered to the storage facility at Wardner, material will be loaded into the paste plant, combined with an ordinary cement binder, and subsequently pumped underground via a reticulated piping system.

**Employees**

We are an exploration company and currently have 6 full-time employees. Management engages independent consultants under contract arrangements as necessary and expects to hire staff and additional management as necessary for implementation of our business plan.

**Regulation**

The exploration and mining industries operate in a legal environment that requires permits to conduct virtually all operations. These permits are required by local, state, and federal government agencies. Federal agencies that may be involved include: the U.S. Forest Service (USFS), Bureau of Land Management (BLM), Environmental Protection Agency (EPA), National Institute for Occupational Safety and Health (NIOSH), the Mine Safety and Health Administration (MSHA), and the Fish and Wildlife Service (FWS). Individual states also have various environmental regulatory bodies, such as Departments of Ecology. Local authorities, usually counties, also have control over mining activity. The various permits address such issues as prospecting, development, production, labor standards, taxes, occupational health and safety, toxic substances, air quality, water use, water discharge, water quality, noise, dust, wildlife impacts, as well as other environmental and socioeconomic issues.

Prior to receiving the necessary permits to explore or mine, a mine operator must comply with all regulatory requirements imposed by all governmental authorities having jurisdiction over the project area. Very often, in order to obtain the requisite permits, the operator must have its land reclamation, restoration, or replacement plans pre-approved. Specifically, the operator must present its plan as to how it intends to restore or replace the affected area. Often all or any of these requirements can cause delays or involve costly studies or alterations of the proposed activity or time frame of operations, in order to mitigate impacts. All of these factors make it more difficult and costlier to operate and have a negative and sometimes fatal impact on the viability of the exploration or mining operation. Finally, it is possible that future changes in these laws or regulations could have a significant impact on our business, causing those activities to be economically re-evaluated at that time. A detailed description of how these regulations impact the Company's business is in the description of the pre-feasibility study above.

**Legal Proceedings**

Other than as described below, neither the Company nor its property is the subject of any current, pending, or threatened legal proceedings. The Company is not aware of any other legal proceedings in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of the Company's voting securities, or any associate of any such director, officer, affiliate or security holder of the Company, is a party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company or any of its subsidiaries.

On July 28, 2021, a lawsuit was filed in the US District Court for the District of Idaho brought by Crescent Mining, LLC ("Crescent"). The named defendants include Placer Mining, Robert Hopper Jr., and the Company. The lawsuit alleges that Placer Mining and Robert Hopper Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable with the other defendants for unspecified past and future costs associated with the presence of AMD in the Crescent Mine. The plaintiff has requested unspecified damages. On September 20, 2021, the Company filed a motion to dismiss Crescent's claims against it, contending that such claims are facially deficient. On March 2, 2022, Chief US District Court Judge, David C. Nye granted in part and denied in part the Company's motion to dismiss. The court granted the Company's motion to dismiss Crescent's Cost Recovery claim under CERCLA Section 107(a), Declaratory Judgment, Tortious Interference, Trespass, Nuisance and Negligence claims. These claims were dismissed without prejudice. The court denied the motion to dismiss filed by Placer Mining Corp. for Crescent's trespass, nuisance and negligence claims. Crescent later filed an amended complaint on April 1, 2022. Placer Mining Corp. and Bunker Hill Mining Corp are named as co-defendants. Bunker Hill responded to the amended filing, refuting and denying all allegations made in the complaint except those that are assertions of fact as a matter of public record. The Company believes Crescent's lawsuit is without merit and intends to vigorously defend itself, as well as Placer Mining Corp. pursuant to the Company's indemnification of Placer Mining Corp in the Sale and Purchase agreement executed between the companies for the Mine on December 15, 2021.

On October 26, 2021, the Company asserted claims against Crescent in a separate lawsuit. Bunker Hill Mining Corporation v. Venzee Technologies Inc. et al, Case No. 2:21-cv-209-REP, filed in the same court on May 14, 2021. The Company has subsequently executed a tolling agreement with Venzee in exchange for dropping its lawsuit. The Company originally filed this lawsuit on May 14, 2021 against other parties but has since filed an amended complaint to include its claims against Crescent.

**DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE**

**<u>Directors and Executive Officers</u>**

The following table sets forth the directors, executive officers, their ages, and all offices and positions held within the Company as of September 30, 2022. Directors are elected for a period of one year and thereafter serve until their successor is duly elected by the stockholders and qualified. Officers and other employees serve at the will of the Board.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Position Held with the Company** | **Age** | **Date First Elected or Appointed** |
| Sam Ash | President, CEO and Director | 44 | April 14, 2020 |
| Richard Williams | Executive Chairman and Director | 56 | March 27, 2020 |
| David Wiens | CFO and Corporate Secretary | 43 | January 12, 2021 |
| Mark Cruise | Director | 52 | June 30, 2022 |
| Cassandra Joseph | Director | 51 | November 2, 2020 |
| Dickson Hall | Director | 70 | January 5, 2018 |
| Pamela Saxton | Director | 70 | October 30, 2020 |

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**Biographical Information**

***Sam Ash*** was a Partner from 2015 at Barrick Gold Corp. ("**Barrick**") and held various roles over the nine years employed there. This includes three years as General Manager of the Lumwana Copper Mine in Zambia, Technical Support Manager to Barrick's Copper Business Unit, General Support Manager on the Cortez Mine in Nevada and Chief Engineer leading the roll-out of new Underground Mining standards in the USA and Tanzania. Prior to his time at Barrick, Mr. Ash served as Manager of New Operations for Veris Gold Corp. (formerly, Yukon-Nevada Gold Corp.) primarily on the Jerritt Canyon Mine in Nevada, and also as an Underground Mine Supervisor with Drummond Company, Inc. He has recently completed his Masters' Degree in Leadership and Strategy at the London Business School and has a BS in Mining Engineering from the University of Missouri Rolla. Mr. Ash is qualified to serve on the Board by virtue of his extensive mining industry experience.

***Richard Williams*** is an executive with an established track-record of transformational leadership within the mining industry and other demanding environments. He is an advisor to companies facing complex operational, political or ESG challenges. Formerly the Chief Operating Officer of Barrick and the company's Executive Envoy to Tanzania, he has also served as Chief Executive Officer of the Afghan Gold and Minerals Company and as a Non-Executive Director of Trevali Mining Corporation and Gem Diamonds Limited. Prior to his commercial mining experience, Mr. Williams served as the Commanding Officer of the British Army's Special Forces Regiment, the SAS. He holds an MBA from Cranfield University, a BSc in Economics from University College London and an MA in Security Studies from Kings College London. Mr. Williams is qualified to serve on the Board by virtue of his extensive mining industry experience.

 ****

***David Wiens*** is the Company's Chief Financial Officer and Corporate Secretary. Mr. Wiens is an experienced mining executive with over 18 years' experience in corporate finance, financial planning & analysis, treasury and investor relations. Mr. Wiens spent the last eight years with Americas-focused precious metals companies, including over six years at SSR Mining Inc. where he was part of a team that transformed the company from a single asset silver producer with limited mine life to a diversified long-life precious metals company, while meeting production and cost guidance seven years in a row. As Director, Corporate Finance, he led a number of functions including corporate finance, FP&A, treasury, investor relations, concentrate marketing and gold dore sales. SSR Mining Inc. completed a $5 billion merger with Alacer Gold Corp. in September 2020. Prior to his corporate roles, he was an investment banker at a number of financial institutions, including Deutsche Bank AG in London, United Kingdom. Mr. Wiens earned his Bachelor of Commerce with a Finance specialization at the University of British Columbia in Canada, is a CFA® Charterholder, and is completing the CPA designation.

***Mark Cruise*** is a professional geologist with over 27 years of international mining experience, in Europe, the Americas and Africa. A former polymetallic commodity specialist with Anglo American plc, Dr Cruise founded and was Chief Executive Officer of Trevali Mining Corporation. Under his leadership, the company grew from an initial discovery into a top-ten global zinc producer with operations in the Americas and Africa. He has previously served as Vice President Business Development and Exploration, COO and CEO for several TSX, TSX-Venture and NYSE-Americas listed exploration and development Companies. Mark has Served on 9 Public Company Boards over 14 years for TSX-V; TSX and NYSE-Americas listed Exploration, Development and Producing Companies with market capitalizations ranging from tens of millions to in-excess of US$1 billion. Mr. Cruise is qualified to serve on the Board by virtue of his extensive mining industry experience.

***Cassandra Joseph*** is an American lawyer with extensive experience managing the commercial relationship between mining companies and environmental regulators. She is currently Senior Vice President, General Counsel and Corporate Secretary for Nevada Copper Corp., having previously been Associate General Counsel for Tahoe Resources Inc. until it was acquired by Pan American Silver Corp. in 2019. Before this, she worked for the Attorney Generals of California and Nevada, as Deputy and Senior Deputy Attorney General, and as a partner in Watson Rounds PLC (now Brownstein Hyatt Farber Schreck LLP). Educated at Santa Clara University, and University of California at Berkeley, she was called to the State Bar of California in 1999; the US Court of Appeals, Ninth Circuit in 2001; State Bar of Nevada in 2005; and the US Supreme Court, US Court of Appeals and Federal Circuit in 2007. Ms. Joseph is qualified to serve on the Board by virtue of her with extensive experience managing the commercial relationship between mining companies and environmental regulators.

***Dickson Hall*** currently serves as a Director. He is a partner in Valuestone Advisory Limited and manager of Valuestone Global Resources Fund 1, a mining fund associated with Jiangxi Copper Corporation and China Construction Bank International. Mr. Hall has more than 40 years' experience in the resource field, much of it in Asia. From 2005 to 2016 he directed corporate development efforts in Asia for Hunter Dickinson Inc. (HDI) raising capital, establishing strategic partnerships and broadening the Asian shareholder base for HDI public companies. He was Senior Vice President of Continental Minerals Corporation which developed the Xietongmen copper-gold project in Tibet, China before selling to China's Jinchuan Group in 2011 for $446 million. Mr. Hall is also a director and Investment Committee member of Can-China Global Resources Fund, an energy and mining fund backed by the Export-Import Bank of China. He is or has been a director of various resource and non-resource companies. Mr. Hall is a graduate of the University of British Columbia (BA, MA) and has diplomas from Beijing University and Beijing Language Institute. Mr. Hall is qualified to serve on the Board by virtue of his extensive mining investment experience.

***Pam Saxton*** is an experienced mining company executive and Director. She is currently on the Board of Aquila Resources Inc. and serving on a North American Advisory Board for Damstra Technology – Damstra Holdings Limited and was previously a Board Member and Audit Committee Chair at Pershing Gold Corporation. As an Executive, she has served as CFO for Thompson Creek Metals Company and NewWest Gold Corporation, both in Colorado. Having started her professional life working as an auditor for Arthur Anderson LLP in Denver, her career has included senior finance appointments in the American Natural Resources Industry including serving as VP Finance for Franco-Nevada Corporation's U.S. Operations. Ms. Saxton is qualified to serve on the Board by virtue of her expertise in finance, accounting and auditing matters.

**<u>Corporate Governance</u>**

The Board and the Company's management are committed to sound corporate governance practices which are both in the interest of its shareholders and contribute to effective and efficient decision-making. Canadian National Policy 58-201 – *Corporate Governance Guidelines*, to which the Company is subject by virtue of its CSE listing, establishes corporate governance practices which apply to all publicly-listed companies in Canada. These guidelines are not intended to be prescriptive but to be used by issuers in developing their own corporate governance practices.

Bunker Hill's corporate governance practices are in compliance in all material respects with applicable securities regulatory requirements, and it continually monitors applicable legal requirements and developments across the mining industry to ensure that it follows best practice.

***Board Independence***

 ****

The Company is listed on the CSE and the OTCQB. Because the OTCQB does not have any requirement regarding Board independence, the Company follows the rules of the CSE with respect to director independence. NI 58-101 – *Disclosure of Corporate Governance Practices* ("**NI 58-101**") defines an "independent director" as a director who has no direct or indirect "material relationship" with the issuer. A "material relationship" is a relationship which could, in the view of the Board, be reasonably expected to interfere with the exercise of a member's independent judgment.

The Company's Common Shares are currently traded on the Canadian Stock Exchange, under the symbol BNKR, and as such, is not subject to the independence rules of any national securities exchange which requires that a majority of a listed company's directors and specified committees of its board of directors meet independence standards prescribed by such rules.

The Board is committed to acting independently and in the interests of the Company's shareholders and other stakeholders. In order to ensure that the Board is able to function independently of management the Board adheres to the following structures and processes:

● Cassandra Joseph is appointed as Lead Independent Director.

● The Articles of the Company provide that any director may call a meeting of the Board.

● Non-management directors have regularly scheduled meetings in the absence of management

● Three of the Directors (50%) are independent within the meaning of NI 58-101.

***Board Diversity***

 ****

Along with many companies in the mining industry Bunker Hill advocates the value of diversity in outlook, governance, performance and decision-making. 33.33% of the Company's directors, including the lead independent director, are female.

***Majority Voting Policy***

 ****

Voting for director elections is on an individual basis, and the Company has adopted a majority voting policy in order to promote enhanced director accountability.

 ****

**Nomination of Directors**

The Board has established a Corporate Governance and Nominating Committee (CGNC) which is charged with performing an annual evaluation of the effectiveness of the board of directors as a whole, the committees of the board and the contributions of individual directors. The Corporate Governance and Nominating Committee is currently comprised of Mses. Joseph (Chair) and Saxton and Mr. Hall.

The Board seeks to achieve a balance of knowledge, experience and capability on the Board. When considering candidates for director, the Board takes into account a number of factors, including the following (although candidates need not possess all of the following characteristics and not all factors are weighted equally):

● Ability to attend regular and special board and committee meetings and willingness to perform the duties of a director

● Fine moral character, good personal and business reputation

● Industry knowledge and contacts in industries served by the Company

● Ability to be responsible, fair-minded, reliable, ethical and possess high integrity

● Prior experience on boards of directors

● Senior-level management experience

● Possession of specific skills in electronic data processing, internal auditing, accounting, personnel, finance, etc., and/or demonstrated business or financial institution consulting expertise and experience

The Board will periodically assess the appropriate size of the Board and whether any vacancies on the Board are expected due to retirement or otherwise. If vacancies are anticipated, or otherwise arise, or the size of the Board is expanded, the Board will consider various potential candidates for director. Candidates may come to the attention of the Board through current Board members or management, stockholders or other persons. These candidates will be evaluated at regular or special meetings of the Board and may be considered at any point during the year.

**Compensation Committee**

The Board established in 2020 a Compensation Committee to review and approve the compensation of executive officers. This is chaired by Ms. Joseph, who also acts as the Lead Independent Director

**Audit Committee**

The Company has an Audit Committee that consists of Mr. Hall, Mr. Cruise, and Ms. Saxton. Ms. Saxton serves as the Chair of the Audit Committee of the Company. The Audit Committee is responsible for monitoring the Corporation's accounting and financial reporting practices and procedures, the adequacy of internal accounting controls and procedures, the quality and integrity of financial statements and for directing the auditors' examination of specific areas.

Although pursuant to section 6.1 of National Instrument 52-110 – *Audit Committees* ("**NI 52-110**"), the Company as a venture issuer is exempt from the requirement that each audit committee member be independent, all members of the Audit Committee are independent.

Each member of the Audit Committee is considered to be "financially literate" within the meaning of NI 52-110, which includes the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the Company's financial statements.

**Family Relationships**

There are no family relationships between any of the current directors or officers of the Company.

**Involvement in Certain Legal Proceedings**

The Company is not aware of any other legal proceedings in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of the Company's voting securities, or any associate of any such director, officer, affiliate or security holder of the Company, is a party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company or any of its subsidiaries.

**Directorships**

None of the Company's executive officers or directors is a director of any company with a class of equity securities registered pursuant to Section 12 of the Exchange Act or subject to the requirements of the Exchange Act or any company registered as an investment company under the Investment Company Act of 1940.

**Code of Ethics**

The Company's Board has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer or controller and to persons performing similar functions. The code of ethics is designed to deter wrongdoing and to promote honest and ethical conduct, full, fair, accurate, timely and understandable disclosure, compliance with applicable laws, rules and regulations, prompt internal reporting of violations of the code and accountability for adherence to the code. The Company will provide a copy of its code of ethics, without charge, to any person upon receipt of written request for such, delivered to our corporate headquarters. All such requests should be sent care of Bunker Hill Mining Corp., Attn: Corporate Secretary, 82 Richmond Street East, Toronto, Ontario, Canada, M5C 1P1. Any amendment to, or waiver from, a provision of the codes of ethics applicable to our directors and executive officers will be disclosed in a current report on Form 8-K within four business days following the date of the amendment or waiver.

**Role of Board in Risk Oversight Process**

Risk assessment and oversight are an integral part of our governance and management processes. Our board of directors encourages management to promote a culture that incorporates risk management into our corporate strategy and day-to-day business operations. Management discusses strategic and operational risks at regular management meetings, and conducts specific strategic planning and review sessions during the year that include a focused discussion and analysis of the risks facing us. Throughout the year, senior management reviews these risks with the board of directors at regular board meetings as part of management presentations that focus on particular business functions, operations or strategies, and presents the steps taken by management to mitigate or eliminate such risks.

Our board of directors does not have a standing risk management committee, but rather administers this oversight function directly through our board of directors as a whole, as well as through various standing committees of our board of directors that address risks inherent in their respective areas of oversight. While our board of directors is responsible for monitoring and assessing strategic risk exposure, our audit committee is responsible for overseeing our major financial risk exposures and the steps our management has taken to monitor and control these exposures. The audit committee also approves or disapproves any related person transactions. Our nominating and corporate governance committee monitors the effectiveness of our corporate governance guidelines. Our compensation committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage excessive risk-taking.

**EXECUTIVE COMPENSATION**.

Figures relating to the fiscal year ending December 31, 2022 in this prospectus are presented on an unaudited basis.

**Summary Compensation Table**

The following table sets forth, for the years indicated, all compensation paid, distributed or accrued for services, including salary and bonus amounts, rendered in all capacities by the Company's principal executive officer, chief financial officer and all other executive officers; the information contained below represents compensation paid, distributed or accrued to the Company's officers for their work related to the Company.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and**<br> **Principal Position** | <br> **Year**<sup>(1)</sup> | **Salary**<br> **($)** | **Bonus**<br> **($)** | **Stock**<br> **Awards**<br> **($)** | **Option**<br> **Awards** <sup>(2)</sup>**($)** | **Non-Equity**<br> **Incentive**<br> **Plan**<br> **Compensation**<br> **(#)** | **Non-qualified**<br> **Deferred**<br> **Compensation**<br> **Earnings**<br> **($)** | **All other**<br> **Compensation**<br> **($)** | **Total**<br> **($)** |
| David Wiens<sup>(3)</sup> | December 31, 2022 | 219848 | 163467 | 118217<sup>(8)</sup> |  | – |  | – | 501532 |
| Chief Financial Officer | December 31, 2021 | 210315 | 66000<sup>(4)</sup> |  | 204213 | – |  | – | 480528 |
|  | December 31, 2020 |  |  |  |  | – |  | – |  |
| John Ryan <sup>(5)</sup> | December 31, 2022 |  |  |  |  | – |  | – |  |
| Former Chief | December 31, 2021 |  |  |  |  | – |  | – |  |
| Executive Officer | December 31, 2020 | 13500 |  |  |  | – |  | – | 13500 |
| Richard Williams | December 31, 2022 | 240000 | 132084 | 128964<sup>(8)</sup> |  | – |  | – | 501048 |
| Executive Chairman | December 31, 2021 | 180000 |  |  |  | – |  | – | 180000 |
|  | December 31, 2020 | 78201 |  |  |  | – |  | – | 78201 |
| Sam Ash<sup>(6)</sup> | December 31, 2022 | 270000 | 168600 | 145085<sup>(8)</sup> |  | – |  | – | 583685 |
| Chief Executive Officer | December 31, 2021 | 250000 |  |  |  | – |  | – | 250000 |
|  | December 31, 2020 | 125000 |  |  |  | – |  | – | 125000 |

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<sup>(1)</sup> The period ended December 31, 2020 refers to the six-month period ended December 31, 2020.

<sup>(2)</sup> Option awards reflect the aggregate grant date fair value computed using the Black-Scholes model; for a discussion, please refer to Note 10 in the Notes to the Financial Statements herein.

<sup>(3)</sup> David Wiens appointed as the Company's CFO on January 1, 2021. On February 19, 2021, 1,037,977 stock options were issued to David Wiens, of which 273,271 stock options vested immediately and the balance of 764,706 stock options vested on December 31, 2021. These options have a 5-year life and are exercisable at C$0.335 per common share. The grant date fair value of the options was estimated at $204,213.

<sup>(4)</sup> In February 2021, the Company issued 208,860 February 2021 Units at a deemed price of $0.45 to settle $66,000 (C$83,544) of bonus owed to David Wiens. Each February 2021 Unit consisted of one common share and one common share purchase warrant, which entitles the holder to acquire a common share of the Company at C$0.60 per common share for a period of five years until February 16, 2026.

<sup>(5)</sup> John Ryan was the Company's CEO from October 12, 2018 to April 14, 2020.

<sup>(6)</sup> Sam Ash became the Company's CEO on April 14, 2020.

<sup>(7)</sup> Restricted share units ("RSUs") granted to Mr. Ryan are calculated using a share price of C$0.50 on the applicable grant date.

<sup>(8)</sup> On November 17, 2022, 3,378,548 RSU's were issued to officers of the Company. These RSU's are calculated using a share price of C$.0155 on the applicable grant date and will vest in one third increments on March 31, 2023, March 31, 2024, and March 31, 2025.

**Grant of Plan Based Awards**

On October 24, 2019, 1,575,000 stock options were issued to directors and officers of the Company. These options have a 5-year life and are exercisable at C$0.60 per Common Share.

On April 20, 2020, 5,957,659 stock options were issued to certain directors of the Company. Each stock option entitles the holder to acquire one Common Share of the Company at an exercise price of C$0.55. The stock options vest in one fourth increments upon each anniversary of the grant date and expire in 5 years.

On September 30, 2020, 200,000 stock options were issued to a consultant of the Company. These options have a 3-year life and are exercisable at C$0.60 per Common Share.

On October 30, 2020, 235,000 stock options were issued to a consultant of the Company. These options expire on December 31, 2022 and are exercisable at C$0.50 per Common Share.

On February 19, 2021, 1,037,977 stock options were issued to an officer of the Company, of which 273,271 stock options vest immediately and the balance of 764,706 stock options shall vest on December 31, 2021. These options have a 5-year life and are exercisable at C$0.335 per Common Share.

On November 17, 2022, 3,378,548 RSU's were issued to officers of the Company. These RSU's will vest in one third increments on March 31, 2023, March 31, 2024, and March 31, 2025.

**Outstanding Equity Awards At Fiscal Year End**

The following table provides a summary of equity awards outstanding at December 31, 2022, for each of the named executive officers.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | |
| <br>**Name** | **Number of Securities Underlying Unexercised Options (#) Exercisable** | **Number of Securities Underlying Unexercised Options (#) Unexercisable** | **Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)** | **Option Exercise Price**<br> **(C$)** | **Option**<br> **Expiration**<br> **Date** | **Number of Shares or Common Shares of Stock That Have Not Vested<br> (#)** | **Market Value of Shares or Common Shares of Stock That Have Not Vested<br> ($)** | **Equity Incentive Plan Awards: Number of Unearned Shares, Common Shares or Other Rights That Have Not Vested**<br> **(#)** | **Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Common Shares or Other Rights That Have Not Vested<br> ($)** |
| John Ryan | 390000 |  |  | 0.60 | October 24, 2024 |  |  | 100000 | 12552 |
| Sam Ash |  |  |  |  |  |  |  | 1449600 | 181949 |
| Richard Williams | 989415 | 2968244 |  | 0.55 | April 20, 2025 |  |  | 1110756 | 139419 |
| David Wiens | 1037977 |  |  | 0.335 | February 19, 2026 |  |  | 1018193 | 127800 |

---

<sup>(1)</sup> As of December 31, 2022, Richard Williams held 2,500,000 vested DSU's and 2,500,000 unvested DSU's.

**Long-Term Incentive and Compensation Plans**

In May 2020, and as part of its overall compensation planning, the Board introduced a long term incentive plan (the "**Long Term Incentive Plan**" or "**LTIP**") that provides for time-based RSUs, DSUs, options ("**Options**") and performance-based share unit awards ("**PSUs**", and collectively with RSUs, DSUs and Options, "**Awards**") that may be granted to employees, officers and eligible consultants and directors of the Company and its affiliates. Recipients of Awards are defined as "Participants".

The aim of the Company's compensation program is to attract and retain highly qualified executives and to link compensation to performance and shareholder value. This must ensure that the compensation is sufficiently competitive to achieve this objective. The Board considers a number of factors in order to determine compensation, including the Company's contractual obligations, the individual's performance and other qualitative aspects of the individual's performance and achievements, the amount of time and effort the individual will devote to the Company and the Company's financial resources.

The Company's compensation program is comprised of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **A base salary or management fee arrangement and benefits**. The base salaries or management fee arrangements and benefits paid to the key executives are not
 based on any specific formula and are set so as to be competitive with other companies of similar size and state of development in
 the mineral industry. This base salary also includes sign-on incentives, which may be issued in the form of cash, RSUs, DSUs or Options.

(b) **A short-term incentive program in the form of bonuses**. Bonuses are paid to key executives based on individual, team and Company performance and the
 executive's position in the Company. Any bonus awards are at the sole discretion of the Board.

(c) **Long Term Incentive Plan**. The LTIP consists of DSUs, RSUs, PSUs, and Options which provide the Board with additional long term incentive mechanisms
 to align the interests of the directors, officers, employees or consultants of the Company with shareholder interests. The LTIP also
 provides for, among other things, an accelerated vesting of awards in the event of a change in control, thereby aligning the Company's
 practices with current corporate governance best practices respecting a change in control.

The Board believe that equity-based compensation plans are the most effective way to align the interests of management with those of shareholders. Long-term incentives must also be competitive and align with the Company's compensation philosophy.

The Company does not have a pension plan that provides for payments or benefits to its executive officers.

**Change of Control Agreements**

The Company has provided change of control benefits to certain senior officers to encourage them to continue their employment in the event of a purchase, sale, reorganization, or other significant change in the business. These benefits have a "double trigger" meaning that an event of termination is also required in a change of control to trigger a severance payment.

If the employment agreement of the senior officer is terminated by the (a) Company without just cause, or (b) senior officer for good reason pursuant to the terms of the employment agreement, at any time within 12 months of a change of control, the Company is required to make a lump sum severance payment equal to 24 months of base salary. In addition, at such time all Awards shall be deemed to have vested, and all restrictions and conditions applicable to such Awards shall be deemed to have lapsed and the Awards shall be issued and delivered.

**Employment Agreements**

The Company has various employment agreements with certain executives, which provide for compensation and certain other benefits and for severance payments under certain circumstances. Certain employment agreements also contain clauses that become effective upon a change of control of the Company, as described above. The Company may be obligated to pay certain amounts to such employees upon the occurrence of any of the defined events in the various employment agreements.

**Equity Compensation Plan Information**

On April 19, 2011, subject to shareholder approval, which was obtained at the Company's annual and special meeting of shareholders held on December 21, 2012, the Board approved the adoption of the Liberty Silver Corp. Incentive Share Plan (the "Plan") under which Common Shares of the Company's common stock have been reserved for purposes of possible future issuance of incentive stock options, non-qualified stock options, and stock grants to employees, directors and certain key individuals. Under the Plan, the maximum number of Common Shares reserved for issuance shall not exceed 10% of the Common Shares of the Company outstanding from time to time. The purpose of the Plan shall be to advance the interests of the Company by encouraging equity participation in the Company through the acquisition of Common Shares of the Company. In order to maintain flexibility in the award of stock benefits, the Plan constitutes a single plan, but is composed of two parts. The first part is the Share Option Plan which provides grants of both incentive stock options under Section 422A of the Internal Revenue Code of 1986, as amended, and nonqualified stock options. The second part is the Share Bonus Plan which provides grants of shares of Company common stock. The following is intended to be a summary of some of the material terms of the Plan, and is subject to, and qualified in its entirety, by the full text of the Plan.

The Plan

The Plan is a rolling plan, under which the maximum number of Common Shares reserved for issuance under the Share Option Plan, together with the Share Bonus Plan, shall not exceed 10% of the Common Shares outstanding (on a non-diluted basis) at any given time. The purpose of the Plan is to advance the interests of the Company by: (i) providing certain employees, senior officers, directors, or consultants of the Company (collectively, the "**Optionees**") with additional performance incentives; (ii) encouraging share ownership by the Optionees; (iii) increasing the proprietary interest of the Optionees in the success of the Company; (iv) encouraging the Optionees to remain with the Company; and (v) attracting new employees, officers, directors and consultants to the Company.

Share Option Plan

The following information is intended to be a brief description and summary of the material features of the Share Option Plan:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The aggregate maximum number
 of Common Shares available for issuance from treasury under the Share Option Plan, together with the Share Bonus Plan, at any given
 time is 10% of the outstanding Common Shares as at the date of grant of an option under the Plan, subject to adjustment or increase
 of such number pursuant to the terms of the Plan. Any Common Shares subject to an option which has been granted under the Share Option
 Plan and which has been surrendered, terminated, or expired without being exercised, in whole or in part, will again be available
 under the Plan.

(b) The exercise price of an
 option shall be determined by the Board at the time each option is granted, provided that such price shall not be less than the closing
 price of the Common Shares on the principal stock exchange(s) upon which the Common Shares are listed and posted for trading on the
 trading day immediately preceding the day of the grant of the option.

(c) Options granted to persons
 conducting Investor Relations Activities (as defined in the Plan) for the Company must vest in stages over twelve months with no
 more than ¼ of the options vesting in any three-month period.

(d) In the event an Optionee
 ceases to be eligible for the grant of options under the Share Option Plan, options previously granted to such person will cease
 to be exercisable within a period of 12 months following the date such person ceases to be eligible under the Plan.

(e) In the event that a take-over
 bid or issuer bid is made for all or any of the issued and outstanding Shares, then the Board may, by resolution, permit all options
 outstanding to become immediately exercisable in order to permit Common Shares issuable under such options to be tendered to such
 bid.

Share Bonus Plan

The following information is intended to be a brief description and summary of the material features of the Share Bonus Plan:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Participants in the Share
 Bonus Plan shall be directors, officers, employees, or consultants of the Company who, by the nature of their positions are, in the
 opinion of the Board and upon the recommendation of the President of the Company, in a position to contribute to the success of the
 Company.

(b) The determination regarding
 the amount of bonus Common Shares issued pursuant to the Share Bonus Plan will take into consideration the Optionee's present
 and potential contribution to the success of the Company and shall be determined from time to time by the Board. However, in no event
 shall the number of bonus Common Shares pursuant to the Share Bonus Plan, together with the Share Option Plan, exceed 10% of the
 issued and outstanding Common Shares in the aggregate.

General Features of the Plan

In addition to the above summaries of the Share Option Plan and the Share Bonus Plan, the following is intended to be a brief description and summary of some of the general features of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The aggregate number of
 Common Shares reserved pursuant to the Plan for issuance to insiders of the Company within any twelve-month period, under all security-based
 compensation arrangements of the Company, shall not exceed 10% of the total number of Common Shares then outstanding.

(b) The aggregate number of
 Common Shares reserved for issuance pursuant to the Plan to any one person in any twelve-month period shall not exceed 5% of the
 total number of Common Shares outstanding from time to time, unless disinterested shareholder approval is obtained pursuant to the
 policies of the Company's principal stock exchange(s) upon which the Common Shares are listed and posted for trading or any
 stock exchange or regulatory authority having jurisdiction over the securities of the Company. No more than 2% of the outstanding
 Common Shares may be granted to any one Consultant (as defined in the Plan) in any twelve-month period, or to persons conducting
 Investor Relations Activities (as defined in the Plan) in any twelve-month period.

**RSU Plan**

On November 15, 2022, the Board of the Company approved the adoption of the Company's Restricted Stock Unit Incentive Plan (the "**RSU Plan**") under which RSUs of the Company, whereby each RSU represents the right to receive one Common Share, have been reserved for purposes of possible future issuances of RSUs. The RSU Plan is intended to enhance the Company's ability to attract and retain highly qualified officers, directors, key employees, consultants and other persons, and to motivate such officers, directors, key employees, consultants and other persons to serve the Company and to expend maximum effort to improve the business results and earnings of the Company by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the RSU Plan provides for the grant of RSUs and any of these awards of RSUs ("**RSU Awards**") may, but need not, be made as performance incentives to reward attainment of annual or long-term performance goals of the Company.

The following information is intended to be a brief description and summary of the material features of the RSU Plan:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 maximum number of Common Shares available for issuance under the RSU Plan shall be 14,125,808, subject to adjustment or increase
 of such number pursuant to the terms of the RSU Plan.

(b) The number of Common Shares
 to be issued under the RSU Plan shall not exceed 10% of the total number of the issued and outstanding Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that an RSU
 Award is exercised for Common Shares, the Common Shares reserved for issuance in connection with such RSU Award will be returned
 to the pool of available Common Shares authorized for issuance under the RSU Plan and will be available for reservation pursuant
 to a new RSU Award grant.

(d) RSU Awards may be made
 under the RSU Plan to any employee, director or consultant of the Company, as the Board shall determine and designate from time to
 time.

(e) RSU Awards granted under
 the RSU Plan may, in the discretion of the Board, be granted either alone or in addition to, in tandem with, or in substitution or
 exchange for, any other RSU Award or any award granted under another plan of the Company.

(f) At the time a grant of
 RSUs is made, the Board may, in its sole discretion, establish a vesting period applicable to such RSUs, and each RSU Award may be
 subject to a different vesting period.

**DSU Plan**

On April 21, 2020, the Board approved the adoption of the Company's Deferred Share Unit Plan (the "**DSU Plan**"), pursuant to which the Board may grant DSUs to eligible persons under the DSU Plan. Each DSU entitles the grantee to receive on vesting an amount equal to: (A) the number of vested DSUs elected to be redeemed multiplied by (B) the fair market value of the Common Shares less (C) any applicable withholdings pursuant to the DSU Plan. The purposes of the DSU Plan are to: (i) align the interests of directors of the Company with the long term interests of shareholders of the Company; and (ii) allow the Company to attract and retain high quality directors.

The following information is intended to be a brief description and summary of the material features of the DSU Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A committee of directors
 of the Company appointed by the Board to administer the DSU Plan may grant DSUs to any director of the Company in its sole discretion.

(b) Awards may be made under
 the DSU Plan to any director of the Company, as the committee appointed by the Board shall determine and designate from time to time.

(c) Should the Common Shares
 no longer be publicly traded at the relevant time such that the fair market value of the Common Shares cannot be determined in accordance
 with the formula set out in the definition of that term pursuant to the DSU Plan, the fair market value of a Common Share shall be
 determined by the committee appointed by the Board in its sole discretion.

(d) At the time a grant of
 DSUs is made, the committee appointed by the Board may, in its sole discretion, establish a vesting period applicable to such DSUs.

**Director Compensation**

The general policy of the Board is that compensation for independent directors should be a fair mix between cash and equity-based compensation. Additionally, the Company reimburses directors for reasonable expenses incurred during the course of their performance. There are no long-term incentive or medical reimbursement plans. The Company does not pay directors, who are part of management, for Board service in addition to their regular employee compensation. The Board determines the amount of director compensation. The board may appoint a compensation committee to take on this role.

The following table provides a summary of compensation paid to directors during the year ended December 31, 2022.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Director** | **Fees Earned or Paid in Cash<br> ($)** | **Stock**<br> **Awards**<br> **($)** | **Option**<br> **Awards**<br> **($)**  | **Non-Equity**<br> **Incentive Plan**<br> **Compensation**<br> **($)** | **Nonqualified**<br> **Deferred**<br> **Compensation**<br> **Earnings** | **All Other**<br> **Compensation**<br> **($)<sup>1</sup>** | **Total**<br> **($)** |
| Dickson Hall | 40000 | – |  | – |  |  | 40000 |
| Mark Cruise | 15774 | – |  | – |  | 32594 | 48368 |
| Richard Williams | 372084 | – |  | – |  |  | 372084 |
| Pam Saxton | 86129 | – |  | – |  |  | 86129 |
| Cassandra Joseph | 86129 | – |  | – |  |  | 86129 |

---

<sup>(1)</sup> DSUs granted to Mark Cruise are calculated using a share price of C$0.20 on the applicable grant date.

**Equity Compensation Plan**

The following table gives information about the Company's Equity Compensation Plan as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of securities to be issued upon exercise of outstanding options** | **Weighted average exercise price of outstanding options** | **Number of securities remaining available for future issuances under equity compensation plans, excluding securities reflected in column (a)** |
| Plan category |  |  |  |
|  | **(a)** | **(b)** | **(c)** |
| Equity compensation plans approved by security holders | **9320636** | $**0.38** | **13629530** |
| Equity compensation plans not approved by security holders | **-** | **-** | **-** |
| Total | **9320636** | $**0.38** | **13629530** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of securities to be issued upon exercise of outstanding RSUs and DSUs** | **Weighted average grant date price of outstanding RSUs and DSUs** | **Number of securities remaining available for future issuances under equity compensation plans, excluding securities reflected in column (a)** |
| **Plan category** |  |  |  |
|  | **(a)** | **(b)** | **(c)** |
| **RSU Plan** | 4822741 | $0.17 | 9303067 |
| **DSU Plan** | 0<sup>1</sup> | $N/A | N/A |
| **Total** | 4822741 | $0.17 | 9303067 |

---

<sup>(1)</sup> As of December 31, 2022, there are 5,210,000 DSU's outstanding of which 2,500,000 have vested and 2,710,000 remain unvested. Upon the exercise of outstanding DSU's no securities will be issued as the DSU amount shall be paid as a lump-sum by the Company.

**CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

**Certain Relationships and Related Transactions**

There were no material transactions, or series of similar transactions, during the Company's last fiscal year, or any currently proposed transactions, or series of similar transactions, to which the Company was or is to be a party, in which the amount involved exceeded the lesser of $120,000 or one percent of the average of the small business issuer's total assets at year-end for the last three completed fiscal years and in which any director, executive officer or any security holder who is known to the Company to own of record or beneficially more than five percent of any class of the Company's common stock, or any member of the immediate family of any of the foregoing persons, had an interest.

**Director Independence**

The Company's common stock is currently traded on the CSE, under the symbol BNKR, and as such, is not subject to the rules of any national securities exchange which requires that a majority of a listed company's directors and specified committees of its board of directors meet independence standards prescribed by such rules. For the purpose of preparing the disclosures in this document with respect to director independence, the Company has used the definition of "independent director" within the meaning of National Instrument 52-110 – *Audit Committees* adopted by the Canadian Securities Administration and as set forth in the Marketplace Rules of the NASDAQ, which defines an "independent director" generally as being a person, other than an executive officer or employee of the company or any other individual having a relationship which, in the opinion of the company's board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

Pam Saxton, Cassandra Joseph, Dickson Hall, and Mark Cruise are currently the only "independent" directors of the Company.

**DESCRIPTION OF SECURITIES TO BE REGISTERED**

Our authorized capital stock consists of consists of 1,500,000,000 Common Shares with a par value of $0.000001 per Common Share and 10,000,000 preferred shares with a par value of $0.000001 per preferred share. As of the date of this prospectus, there were 235,878,932 Common Shares outstanding.

**COMMON STOCK**

The following description of our Common Shares and provisions of our articles of incorporation and by-laws is only a summary. Investors are directed for a complete description of the terms and provisions of our articles and by-laws, which are exhibits to the registration statement which contains this Prospectus. We encourage you to review complete copies of our articles and by-laws.

**Voting Rights**

Holders of the Common Shares are entitled to one vote per share on all matters to be voted upon by the shareholder.

**Dividend Rights**

Holders of Common Shares are entitled to receive ratably such dividends, if any, as may be declared by the Board out of funds legally available for dividends.

**Liquidation Rights**

Upon the liquidation, dissolution, or winding up of our company, the holders of Common Shares are entitled to share ratably in all of our assets which are legally available for distribution after payment of all debts and other liabilities.

**Conversion and Redemption**

Holders of Common Shares have no preemptive, subscription, redemption or conversion rights.

**Preferred Stock**

 ****

The Articles of Incorporation authorizes the Board to establish one or more series of preferred stock. Unless required by law or by any stock exchange, and subject to the terms of the articles of incorporation, the authorized shares of preferred stock will be available for issuance without further action by holders of Common Shares.

The Board is able to determine, with respect to any series of preferred stock, designations, powers, preferences and relative, participating, optional or other rights, if any, and the qualifications, limitations or restrictions thereof, if any.

The Company could issue a series of preferred stock that could, depending on the terms of the series, impede or discourage an acquisition attempt or other transaction that some, or a majority, of the holders of Common Shares might believe to be in their best interests or in which the holders of Common Shares might receive a premium over the market price of the Common Shares. Additionally, the issuance of preferred stock may adversely affect the rights of holders of Common Shares by restricting dividends on the common stock, diluting the voting power of the common stock or subordinating the rights of the common stock to distributions upon a liquidation, dissolution or winding up or other event. As a result of these or other factors, the issuance of preferred stock could have an adverse impact on the market price of Common Shares.

**PLACEMENT AGENTS' WARRANTS**

We have agreed to issue to the Placement Agents or their designees warrants to purchase&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock, representing 6.0% of the number of Common Shares being sold in this offering (or, representing 3.0% or 2.0% of the Common Shares purchased by certain excluded investors). The Placement Agents' Warrants will have a term of two years from the commencement of sales pursuant to this offering and an exercise price per share equal to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which represents 100% of the public offering price for the Common Shares and warrants sold in this offering

**Change of Control**

Nevada's "Acquisition of Controlling Interest Statute" applies to Nevada corporations that have at least 200 shareholders, with at least 100 shareholders of record being Nevada residents and that do business directly or indirectly in Nevada. Where applicable, the statute prohibits an acquiror from voting shares of a target company's stock after exceeding certain threshold ownership percentages, until the acquiror provides certain information to the company and a majority of the disinterested shareholders vote to restore the voting rights of the acquiror's shares at a meeting called at the request and expense of the acquiror. If the voting rights of such shares are restored, shareholders voting against such restoration may demand payment for the "fair value" of their shares. The Nevada statute also restricts a "business combination" with "interested shareholders", unless certain conditions are met, with respect to corporations which have at least 200 shareholders of record. A "combination" includes:

&nbsp;&nbsp;&nbsp;&nbsp;(i) any merger with an "interested
 shareholder," or any other corporation which is or after the merger would be, an affiliate or associate of the interested shareholder;

(ii) any sale, lease, exchange,
 mortgage, pledge, transfer or other disposition of assets, to an "interested shareholder," having an aggregate market
 value equal to 5% or more of the aggregate market value of the corporation's assets; an aggregate market value equal to 5%
 or more of the aggregate market value of all outstanding shares of the corporation; or representing 10% or more of the earning power
 or net income of the corporation;

(iii) any issuance or transfer
 of shares of the corporation or its subsidiaries, having an aggregate market value equal to 5% or more of the aggregate market value
 of all the outstanding shares of the corporation to the "interested shareholder"

(iv) the adoption of any plan
 or proposal for the liquidation or dissolution of the corporation proposed by the "interested shareholder";

(v) certain transactions which
 would result in increasing the proportionate percentage of shares of the corporation owned by the "interested shareholder";
 or

(vi) the receipt of benefits,
 except proportionately as a shareholder, of any loans, advances or other financial benefits by an "interested shareholder."

An "interested shareholder" is a person who, together with affiliates and associates, beneficially owns (or within the prior three years, did beneficially own) 10% or more of the corporation's voting stock. A corporation to which this statute applies may not engage in a "combination" within three years after the interested shareholder acquired its shares, unless the combination or the interested shareholder's acquisition of shares was approved by the board of directors before the interested shareholder acquired the shares. If this approval was not obtained, then after the three-year period expires, the combination may be consummated if all applicable statutory requirements are met.

Approval of mergers, conversion, amendments to the articles of incorporation, and sales, leases or exchanges of all of the property or assets of a corporation, whether or not in the ordinary course of business, requires the affirmative vote or consent of the holders of a majority of the outstanding shares entitled to vote, except that, unless required by the articles of incorporation, no vote of shareholders of the corporation surviving a merger is necessary if:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the merger does not amend
 the articles of incorporation of the corporation;

(ii) each outstanding share
 immediately prior to the merger is to be an identical share after the merger;

(iii) The number of voting shares
 outstanding immediately after the merger, plus the number of voting issued as a result of the merger, either by the conversion of
 shares securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed
 by more than 20% the total number of voting shares of the surviving domestic corporation outstanding immediately before the merger;
 and

(iv) the number of participating
 shares (i.e. shares that entitle their holders to participate without limitation in distribution) outstanding immediately after the
 merger, plus the number of participating shares issuable as a result of the merger, either by the conversion of securities issued
 pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20% the
 total number of participating shares outstanding immediately before the merger.

**PRINCIPAL ACCOUNTING FEES AND SERVICES**

**Audit Fees**

Effective September 2, 2014, the Company appointed the firm of MNP, LLP, Chartered Professional Accountants, as the Company's independent audit firm.

MNP, LLP, Chartered Professional Accountants, 50 Burnhamthorpe Road West, Mississauga, ON L5B 3C2, served as the Company's independent registered public accounting firm for the year ended December 31, 2022, the year end December 31, 2021 the six months ended December 30, 2020 and is expected to serve in that capacity for the ensuing year 2023. Principal accounting fees for professional services rendered for the Company by MNP, LLP for the year ended December 31, 2022, the year ended December 31, 2021 and six months ended December 31, 2020 are summarized in the following table:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**<br> **December 31, 2022** | **Year** **Ended**<br> **December 31, 2021** | **Six Months** **Ended**<br> **December 31,** **2020** |
| Audit | $92292 | $107129 | $115272 |
| Audit related | 101616 | 36449 | 28432 |
| Tax |  |  | 34118 |
| All other | 95387 | 12841 | 13160 |
| Total | $289295 | $156419 | $190982 |

---

**Audit Related Fees**

The aggregate fees billed by MNP, LLP for assurance and related services that were related to its review of the Company's quarterly financial statements.

**Tax Fees**

The aggregate fees billed by MNP, LLP for tax compliance, advice and planning.

**All Other Fees**

The aggregate fees billed by MNP, LLP for all other professional services.

**Audit Committee's Pre-approval Policies and Procedures**

At the Company's regularly scheduled and special meetings, the Board, or the Board-appointed audit committee, considers and pre-approves any audit and non-audit services to be performed by the Company's independent registered public accounting firm. The audit committee has the authority to grant pre-approvals of non-audit services.

**SECURITIES ACT RESTRICTIONS ON RESALE OF COMMON STOCK**

**Rule 144**

Pursuant to Rule 144 under the Securities Act ("Rule 144"), a person who has beneficially owned restricted Common Shares or Warrants of Bunker Hill for at least six months would be entitled to sell their securities provided that (i) such person is not deemed to have been an affiliate of Bunker Hill at the time of, or at any time during the three months preceding, a sale and (ii) Bunker Hill is subject to the Exchange Act periodic reporting requirements for at least three months before the sale and has filed all required reports under Section 13 or 15(d) of the Exchange Act during the 12 months (or such shorter period as it was required to file reports) preceding the sale.

Persons who have beneficially owned restricted Common Shares or Warrants of Bunker Hill for at least six months but who are affiliates of Bunker Hill at the time of, or at any time during the three months preceding, a sale would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:

● 1% of the total number of Common Shares then outstanding; or

● the average weekly reported trading volume of Common Stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

Sales by affiliates of Bunker Hill under Rule 144 are also limited by manner of sale provisions and notice requirements and by the availability of current public information about Bunker Hill.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS**

The following table sets forth information known to us regarding the beneficial ownership of our Common Shares as of December 31, 2022 by:

● each person who is, or is expected to be, the beneficial owner of more than 5% of the outstanding shares of our Common Shares;

● each of our current officers and directors; and

● all current executive officers and directors of the Company, as a group.

Beneficial ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or exercisable within 60 days. Common Shares issuable pursuant to options or warrants are deemed to be outstanding for purposes of computing the beneficial ownership percentage of the person or group holding such options or warrants but are not deemed to be outstanding for purposes of computing the beneficial ownership percentage of any other person.

The beneficial ownership of our Common Shares is based on 235,878,932 Common Shares issued and outstanding as of December 31, 2022.

Unless otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all Common Shares owned by them.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Number of Shares <br> Beneficially Owned** | **Beneficial <br> Ownership Prior<br> to the Offering (%)** | **Beneficial Ownership <br> After the Offering <br> (%)** |
| ***Directors and Officers of Bunker Hill<sup>(1)</sup>:*** |  |  |  |
| Richard Williams | 6566891 | 2.8% |  |
| Sam Ash | 2177066 | \* |  |
| Cassandra Joseph | 462000 | \* |  |
| Dickson Hall | 636000 |  |  |
| Pam Saxton | 462000 | \* |  |
| Mark Cruise |  | \* |  |
| David Wiens | 2528863 | 1.1% |  |
| **All Directors and Officers as a Group (Seven Individuals)** |  | % |  |
| ***Five Percent Holders (excluding those named above)*** |  |  |  |
| Merk Investments fao ASA Gold and Precious Metals Limited | 38429914 | 15.5% |  |
| Ruffer LLP for and on behalf of LF Ruffer Gold Fund RGF | 25150000 | 10.4% |  |
| Gemstone 102 Ltd., Craigmuir Chambers, PO Box 71, Road Town, Tortola, VG1110, BVI | 17557678 | 7.5% |  |
| Nicholas Grace | 25000000 | 10.3% |  |
| Sebastian Marr | 23230400 | 9.6% |  |
| Teck Resources Limited | 20833334 | 8.7% |  |
| Universal-Investment-GmbH on behalf of Earth Gold Fund UI (081J01) | 20000000 | 8.4% |  |
| Sprott Private Resource Streaming & Royalty (Collector), LP | 97013910 | 30.6% |  |
| Hummingbird Resources PLC | 12285837 | 5.3% |  |

---

\* Less than one percent.

**PLAN OF DISTRIBUTION**

The offering is being made concurrently in the United States and in each of the provinces in Canada, other than Québec. Pursuant to a placement agency agreement, dated as of January [ ], 2023 (the "**Agency Agreement**"), we have engaged Roth Capital Partners, LLC (the "**U.S. Placement Agent**"), to act as our exclusive placement agent to solicit offers to purchase the securities offered by this prospectus on a commercially reasonable best efforts basis in the U.S. Also pursuant to the Agency Agreement, we have engaged Echelon Wealth Partners and Laurentian Securities (together, the "**Canadian Placement Agents**" and together with the U.S. Placement Agent, the "**Placement Agents**"), to act as our exclusive placement agents to solicit offers to purchase securities on a commercially reasonable best efforts basis in Canada.

The Placement Agents are not purchasing or selling any securities, nor are the Placement Agents required to arrange for the purchase and sale of any specific number or dollar amount of securities, other than to use their "commercially reasonable best efforts" to arrange for the sale of the securities by us. This is a best efforts public offering of a minimum of ● Common Shares (the **"Minimum Offering"**), par value $0.00001 per share **(**the **"Common Shares")**, and a maximum of ● Common Shares of Bunker Hill Mining Corp. (**"Bunker Hill" or the "Company"**). Any sales of securities in Canada will reduce the amount offered in the United States and accordingly any sales of securities in the United States will reduce the amount offered in Canada, Sales of securities in the United States and Canada will be aggregated for the purposes of determining the Minimum Offering and the Maximum Offering. This Offering and the Canadian Offering will terminate on the same date. Subscriptions will not be accepted until binding commitments have been received for the Minimum Offering have been received.

No subscriptions will be accepted until the closing of the offering, which will not occur prior to the Minimum Offering being met.

We will enter into a securities purchase agreement directly with the investors, at the investor's option, who purchase our securities in this offering. Investors who do not enter into a securities purchase agreement shall rely solely on this prospectus in connection with the purchase of our securities in this offering.

The Agency Agreement provides that the Placement Agents' obligations are subject to conditions contained in the Agency Agreement. We have granted the Placement Agents a 30-day option to purchase up to ___________ additional shares of common stock on the same terms and conditions as set forth above to cover over-allotments, if any.

We will deliver the securities being issued to the investors upon receipt of investor funds for the purchase of the securities offered pursuant to this prospectus. We expect to deliver the securities being offered pursuant to this prospectus on or about January [ ], 2023. We must sell a minimum number of Common Shares as a condition to closing this offering.

**Placement Agent Fees, Commissions and Expenses**

Upon the closing of this offering, we will pay the Placement Agents a cash transaction fee equal to 6.0% of the aggregate gross proceeds to us from the sale of the securities in the offering, except that the cash fee will be 3% or 2% with respect to certain excluded investors specified in the Agency Agreement. In addition, we will reimburse the Placement Agents (including the U.S. Placement Agent) for their out-of-pocket expenses incurred in connection with this offering, including the fees and expenses of the counsel for the Placement Agents, provided that in the case of the U.S. Placement Agent fees and expenses will not exceed $75,000.

The following table shows the public offering price, Placement Agent fees and proceeds, before expenses, to us, assuming the purchase of all the securities we are offering.

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Common Share (3)** | **Total (Minimum Offering)** | **Total (Maximum Offering)** |
| Public offering price | $| $| $|
| Placement Agent fees (1) | $| $| $|
| Proceeds to us before offering expenses (2) | $| $| $|

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Does
 not reflect additional compensation to the Placement Agents in the form of warrants to purchase Common Shares at an exercise price
 equal to 100% of the public offering price. We have also agreed to reimburse the Placement Agents for certain expenses.

(2) We
 estimate the total expenses of this offering will be approximately C$0.4 million.

(3) Based
 on an assumed offering price of $_______ per Common Share. The final offering price per Common Share will be determined by the
 Company, the Placement Agents and the investors in this offering and may be a discount to the market price of the Common Shares.

We estimate that the total expenses of the offering, including registration, filing and listing fees, printing fees and legal and accounting expenses, but excluding Placement Agent fees, will be approximately C$0.4 million, all of which are payable by us.

**Placement Agent's Warrants**

We have agreed to issue to the Placement Agents or their designees warrants to purchase&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock, representing 6.0% of the number of Common Shares being sold in this offering (or, representing 3.0% or 2.0% of the Common Shares purchased by certain excluded investors). The Placement Agents' Warrants will have a term of two years from the commencement of sales pursuant to this offering and an exercise price per share equal to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which represents 100% of the public offering price for the Common Shares and warrants sold in this offering and shall be in the form of the warrant issued to the investors in this offering, except as required by FINRA. Pursuant to FINRA Rule 5110(c), the U.S. Placement Agent's Warrants and any Common Shares issued upon exercise of the U.S. Placement Agent's Warrants shall not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the date of commencement of sales of this offering, except the transfer of any security: (i) by operation of law or by reason of reorganization of the issuer; (ii) to any FINRA member firm participating in the offering and the officers, partners, registered persons or affiliates thereof, if all securities so transferred remain subject to the lock-up restriction set forth above for the remainder of the time period; (iii) if the aggregate amount of our securities held by the U.S. Placement Agent or related persons does not exceed 1% of the securities being offered; (iv) that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the fund and the participating members in the aggregate do not own more than 10% of the equity in the fund; (v) the exercise or conversion of any security, if all securities remain subject to the lock-up restriction set forth above for the remainder of the time period; (vi) if we meet the registration requirements of Forms S-3, F-3 or F-10; or (vii) back to us in a transaction exempt from registration with the SEC.

**Determination of Offering Price**

The actual public offering price of the securities we are offering were negotiated between us, the Placement Agents and the investors in the offering based on the trading of our common stock prior to the offering, among other things. Other factors considered in determining the public offering price of the securities we are offering include our history and prospects, the stage of development of our business, our business plans for the future and the extent to which they have been implemented, an assessment of our management, the general conditions of the securities markets at the time of the offering and such other factors as were deemed relevant.

**Lock-up Agreements**

We and each of our officers and directors have agreed with the Placement Agents to be subject to a lock-up period of 90 days following the closing date of this offering. This means that, during the applicable lock-up period, we may not offer for sale, contract to sell, or sell any shares of our common stock or any securities convertible into, or exercisable or exchangeable for, shares of our common stock subject to certain customary exceptions. The Placement Agents may, in their sole discretion and without notice, waive the terms of any of these lock-up agreements. In addition, we have agreed to not issue any securities that are subject to a price reset based on trading prices of our common stock or upon a specified or contingent event in the future, or enter into an agreement to issue securities at a future determined price, for nine months after the closing date of the offering.

**Transfer Agent and Registrar and Warrant Agent**

The transfer agent and warrant agent will be Capital Transfer Agency ULC.

**Indemnification**

We have agreed to indemnify the Placement Agents against certain liabilities, including certain liabilities arising under the Securities Act, or to contribute to payments that the Placement Agents may be required to make for these liabilities.

**Regulation M**

The Placement Agents may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act and any fees received by it and any profit realized on the sale of the securities by it while acting as principal might be deemed to be underwriting discounts or commissions under the Securities Act. The Placement Agents will be required to comply with the requirements of the Securities Act and the Exchange Act of 1934, as amended (the "Exchange Act"), including, without limitation, Rule 10b-5 and Regulation M under the Exchange Act. These rules and regulations may limit the timing of purchases and sales of our securities by the Placement Agents. Under these rules and regulations, the Placement Agents may not (i) engage in any stabilization activity in connection with our securities; and (ii) bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until they have completed their participation in the distribution.

**Electronic Distribution**

A prospectus in electronic format may be made available on a website maintained by the U.S. Placement Agent. In connection with the offering, the U.S. Placement Agent or selected dealers may distribute prospectuses electronically. No forms of electronic prospectus other than prospectuses that are printable as Adobe® PDF will be used in connection with this offering.

Other than the prospectus in electronic format, the information on the U.S. Placement Agent's website and any information contained in any other website maintained by the U.S. Placement Agent is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the U.S. Placement Agent in its capacity as placement agent and should not be relied upon by investors.

**INTERESTS OF NAMED EXPERTS AND COUNSEL**

No expert or counsel named in this Prospectus as having prepared or certified any part of this Prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the Common Shares was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.

The Financial Statements included in this Prospectus and in the registration statement have been audited by MNP LLP and are included in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.

The technical information appearing or incorporated by reference in this Prospectus concerning the Bunker Hill Mine, including estimates of mineral resources and mineral reserves, was derived from the Bunker Hill Technical Report prepared by Resource Development Associates, Inc. independent mining consultants. As of the date hereof, Resource Developments Associates, Inc. beneficially owns none of our outstanding common stock.

The validity of the issuance of the Common Shares hereby will be passed upon for us by J.P. Galda & Co., 40 East Montgomery Avenue, LTW 220 Ardmore, PA 19003. DLA Piper LLP (US), San Diego is acting as counsel to the Placement Agent.

**DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT LIABILITIES**

Nevada law allows a corporation to indemnify its directors, officers, employees and agents against all reasonable expenses (including attorneys' fees and amounts paid in settlement) and, provided that such individual, or indemnitee, acted in good faith and for a purpose which he or she reasonably believed to be in, or not opposed to, the best interests of the corporation and, in the case of a criminal proceeding, had reasonable grounds to believe his or her conduct was lawful. Nevada law authorizes a corporation to indemnify its directors, officers, employees and agents against all reasonable expenses including amounts paid in settlement and attorneys' fees in connection with a lawsuit by or in the right of the corporation to procure a judgment in its favor if such person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interest of the corporation, except that no indemnification may be paid as to any claim, issue or matter as to which such person has been adjudged liable to the corporation unless it is determined by the court making such adjudication of liability that, despite such finding, such person is fairly and reasonably entitled for such expenses deemed proper.

Nevada law also provides for discretionary indemnification made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) by the stockholders;

(ii) by the board of directors
 by majority vote of a quorum consisting of directors who were not parties to the actions, suit or proceeding;

(iii) if a majority vote of a
 quorum consisting of directors who were not parties to the actions, suit or proceeding so orders, by independent legal counsel in
 a written opinion; or

(iv) if a quorum consisting
 of directors who were not parties to the actions, suit or proceeding cannot be obtained, by independent legal counsel in a written
 opinion.

The articles of incorporation, the bylaws or an agreement made by the corporation may provide that the expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding must be paid by the corporation as they are incurred and in advance of the final disposition of the actions, suit or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that he is not entitled to be indemnified by the corporation. The provisions do not affect any right to advancement of expenses to which corporate personnel other than directors or officers may be entitled under any contract or otherwise by law. The indemnification and advancement of expenses authorized in or ordered by a court pursuant to Nevada law does not exclude any other rights to which a person seeking indemnification or advancement of expenses may be entitled under the articles of incorporation or any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, for either an action in his official capacity or an action in another capacity while holding office, except that indemnification, unless ordered by a court or for the advancement of expenses, may not be made to or on behalf of any director or officer if his acts or omissions involved intentional misconduct, fraud or a knowing violation of the law and was material to the cause of action. In addition, indemnification continues for a person who has ceased to be a director, officer, employee or agent and inures to the benefit of the heirs, executors and administrators of such a person.

Insofar as indemnification for liabilities arising under the Securities Act, as amended, may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**WHERE YOU CAN FIND MORE INFORMATION**

We are subject to the information requirements of the Exchange Act and we therefore file periodic reports, proxy statements and other information with the SEC relating to our business, financial statements and other matters. The reports, proxy statements and other information we file may be inspected and copied at prescribed rates at the SEC's Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the SEC's Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains web site that contains reports, proxy and information statements and other information regarding issuers like us that file electronically with the SEC. The address of the SEC's web site is <u>http://www.sec.gov</u>.

This Prospectus constitutes part of a registration statement filed under the Securities Act with respect to the Common Shares covered hereby. As permitted by the SEC's rules, this Prospectus omits some of the information, exhibits and undertakings included in the registration statement. You may read and copy the information omitted from this Prospectus but contained in the registration statement, as well as the periodic reports and other information we file with the SEC, at the public reference room and web site of the SEC referred to above. You may also access our filings with the SEC on our web site, which is located at http://www.bunkerhillmining.com/. Except as specifically incorporated by reference into this Prospectus, the information contained on our web site is not part of this Prospectus.

Statements contained in this Prospectus as to the contents of any contract or other document are not necessarily complete, and in each instance we refer you to the copy of the contract or other document filed or incorporated by reference as an exhibit to the registration statement or as an exhibit to our Exchange Act filings, each such statement being qualified in all respects by such reference.

---

| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
|  | Page |
| [Report of Independent Registered Public Accounting Firm –](#GV_003) MNP, LLP PCAOB ID: 1930 | F-2 |
| [Consolidated Balance Sheets, December 31, 2021 and 2020](#GV_004) | F-5 |
| [Consolidated Statements of Operations for the years ended December 31, 2021 and 2020](#GV_005) | F-6 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020](#GV_006) | F-7 |
| [Consolidated Statements of Changes in Stockholders' Deficit for the years ended December 31, 2021 and 2020](#GV_007) | F-8 |
| [Notes to the Consolidated Financial Statements](#GV_008) | F-9 - F-54 |

---

![](form10-k_001.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholders of Bunker Hill Mining Corp.

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Bunker Hill Mining Corp. (the Company) as at December 31, 2021 and 2020, and the related consolidated statements of loss and comprehensive loss, cash flows, and changes in shareholders' deficiency for the year ended December 31, 2021, six-month period ended December 31, 2020 and for the year ended June 30, 2020, and the related notes (collectively referred to as the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2021 and 2020, and the results of its consolidated operations and its consolidated cash flows for the year ended December 31, 2021, six-month period ended December 31, 2020 and for the year ended June 30, 2020, in conformity with accounting principles generally accepted in the United States of America.

**Material Uncertainty Related to Going Concern – See also Critical Audit Matter section below**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered an accumulated deficit and recurring net losses and does not have sufficient working capital which raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

---

| | |
|:---|:---|
| **Critical Audit Matter Description** | **Audit Response** |
| <br> ***Going Concern – see also Material Uncertainty Related to Going Concern above***<br>As described in Note 1 of the consolidated financial statements, the Company has been incurring losses and does not have sufficient working capital needed to meet its current obligations and commitments. In order to continue as a going concern, the Company must seek additional financing.<br>Significant assumptions and judgements on cash flow projections were made by management in estimating future cash flows, which are subject to high degree of uncertainty.<br>Refer to Note 1 Nature and Continuance of Operations and Going Concern. | <br> We responded to this matter by performing audit procedures in relation to the assessment of the ability of the Company to continue as a going concern. Our audit work in relation to this included, but was not restricted to, the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;● Evaluated the impact of the Company's existing financial arrangements and conditions in relation to the ability to continue as a going concern.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained an understanding from management on the Company's future plans on the operations including financing arrangements.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Evaluated the assumptions and estimates on cashflow projections used in the forecast incorporating information established from our understanding above and any materialized arrangements subsequent to the period end.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Assessed the appropriateness of the related disclosures.<br>|
| <br> ***Completeness of Accounts Payables and Accrued Liabilities*** <br> The Company had significant exploration expenditures during the year ended December 31, 2021.<br>Invoices and reconciliation from vendors are not received on a timely basis. Estimates may be required to accrue for liabilities.<br>Due to the uncertainty of completeness of accounts payable and accrued liabilities we consider this to be a critical audit matter.<br>Refer to Note 3 Significant Account Policies – Use of Estimates and Assumptions. | <br> We responded to this matter by performing audit procedures in relation to completeness of accounts payable and accrued liabilities. Our audit work in relation to this included, but was not restricted to, the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained an understanding from management of the Company's significant vendors. Obtained confirmations from these vendors of payables outstanding at year end and reconciled any discrepancies from these confirmations.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Examined selective invoices and payments of expenditures subsequent to the year end to determine if they pertain to current year expenditures.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained management's assessment and estimates of accounts payable and accruals and assessed the reasonableness of assumptions made in determining the accruals.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Assessed the appropriateness of the related disclosures.<br>|

---

---

| | |
|:---|:---|
| **Critical Audit Matter Description** | **Audit Response** |
| ****<br> ***Environmental Protection Agency (EPA) Agreement and Accrual***<br>The Company signed an amended settlement agreement with the EPA to modify the terms to settle outstanding amounts under the original agreement and payment amounts related to cost recovery and water treatment costs (the "EPA Costs"). The effectiveness of the amended settlement agreement is subject to the Company obtaining financial assurance within a certain period.<br>Invoices from the EPA are not received on a timely basis and estimates are required to accrue for liabilities.<br>Due to the uncertainty of completeness of the EPA accrual we consider this to be a critical audit matter.<br>Refer to Note 3 Significant Account Policies – Use of Estimates and Assumptions, Note 6 Mining Interests and Note 13 Commitments and contingencies. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> We responded to this matter by performing audit procedures in relation to accounting for the amended settlement agreement and completeness of the EPA accrual. Our audit work in relation to this included, but was not restricted to, the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained and reviewed the amended settlement agreement with the EPA.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained management's assessment of the accounting treatment of the EPA Costs in relation to the amended settlement agreement and assessed evidence obtained and the reasonableness of the assumptions made.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Examined invoices received during the year to ensure the appropriateness of the amount of expenditures being recorded.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Examined selective invoices and payments of expenditures subsequent to the year end to determine if they pertain to current year EPA Costs.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained management's estimate of the EPA accrual for ongoing EPA Costs and assessed the reasonableness of assumptions made in determining the accrued amount, including additional fees that may be charged by the EPA.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Assessed the appropriateness of the related disclosures.<br>|

---

---

| | |
|:---|:---|
| <br> ***Derivative Liability***<br>The Company had a warrant derivative liability of $15,518,887 as at December 31, 2021 which was required to be fair valued at each period end.<br>The calculation of the fair value of the warrant liability requires management to use an appropriate valuation model and assumptions on volatility rate and life of the warrants as inputs into the model.<br>Due to the estimates and assumptions involved in the determination of fair value we consider this to be a critical audit matter.<br>**Refer to Note 3 Significant Accounting Policies – Use of Estimates and Assumptions, Note 8 Promissory Notes Payable and Note 10 Capital Stock, Warrants and Stock Options.** | &nbsp;&nbsp;&nbsp;<br> We responded to this matter by performing audit procedures in relation to the derivative liability. Our audit work in relation to this included, but was not restricted to, the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;● Obtained evidence of the issuance including financing documents, warrant certificates and the terms of the warrants.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Assessed the classification of the warrants issued.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Assessed the appropriateness of the model used by management, the mathematical accuracy of management's valuation models and the appropriateness of the assumptions, including volatility rate and life of the warrants, used in the models.<br>&nbsp;&nbsp;&nbsp;&nbsp;● Assessed the appropriateness of the related disclosures. |

---

![](form10-k_002.jpg)

---

| |
|:---|
| Chartered Professional Accountants<br> Licensed Public Accountants  |
| MNP LLP |
| We have served as the Company's auditor since 2014. |
| Mississauga, Canada |
| March 30, 2022 |

---

**Bunker Hill Mining Corp.**

**Consolidated Balance Sheets**

**(Expressed in United States Dollars)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $486063 | $3568661 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 112630 | 100032 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 300813 | 376925 |
| &nbsp;&nbsp;&nbsp;Short-term deposit | 68939 |  |
| &nbsp;&nbsp;&nbsp;Prepaid mine deposit and acquisition costs (note 6) | 2260463 |  |
| &nbsp;&nbsp;&nbsp;Prepaid finance costs | 393640 | - |
| **Total current assets** | 3622548 | 4045618 |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Equipment (note 4) | 396894 | 435727 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets (note 5) | 52353 | 158731 |
| &nbsp;&nbsp;&nbsp;Long-term deposit (note 6) |  | 2068939 |
| &nbsp;&nbsp;&nbsp;Mining interests (note 6) | 1 | 1 |
| **Total assets** | $4071796 | $6709016 |
| **EQUITY AND LIABILITIES** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable (notes 6 and 15) | $1312062 | $1440837 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities (notes 6 and 13) | 869581 | 214218 |
| &nbsp;&nbsp;&nbsp;EPA water treatment payable (note 6) | 5110706 | 3136050 |
| &nbsp;&nbsp;&nbsp;Interest payable (notes 6 and 8) | 409242 | 162540 |
| &nbsp;&nbsp;&nbsp;DSU liability (note 12) | 1531409 | 1110125 |
| &nbsp;&nbsp;&nbsp;Promissory notes payable (note 8) | 2500000 |  |
| &nbsp;&nbsp;&nbsp;EPA cost recovery payable (note 6) | 11000000 | 8000000 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability (note 9) | 62277 | 114783 |
| **Total current liabilities** | 22795277 | 14178553 |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Lease liability (note 9) |  | 61824 |
| &nbsp;&nbsp;&nbsp;Derivative warrant liability (notes 8 and 10) | 15518887 | 24006236 |
| **Total liabilities** | 38314164 | 38246613 |
| **Shareholders' Deficiency** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred shares, $0.000001 par value, 10,000,000 preferred shares authorized; Nil preferred shares issued and outstanding (note 10) |  |  |
| &nbsp;&nbsp;&nbsp;Common shares, $0.000001 par value, 750,000,000 common shares authorized; 164,435,442 and 143,117,068 common shares issued and outstanding, respectively (note 10) | 164 | 143 |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital (note 10) | 38248618 | 34551133 |
| &nbsp;&nbsp;&nbsp;Shares to be issued |  |  |
| &nbsp;&nbsp;&nbsp;Deficit accumulated during the exploration stage | (72491150) | (66088873) |
| **Total shareholders' deficiency** | (34242368) | (31537597) |
| **Total shareholders' deficiency and liabilities** | $4071796 | $6709016 |

---

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

**Bunker Hill Mining Corp.**

**Consolidated Statements of Loss and Comprehensive Loss**

**(Expressed in United States Dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year**<br>**Ended**<br>**December 31,**<br>**2021** | **Six Months**<br>**Ended**<br>**December 31,**<br>**2020** | **Year**<br>**Ended**<br>**June 30,**<br>**2020** |
| **Operating expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operation and administration (notes 10, 11 and 12) | $2651954 | $1681093 | $1327059 |
| &nbsp;&nbsp;&nbsp;Exploration | 13530819 | 8379845 | 8645431 |
| &nbsp;&nbsp;&nbsp;Legal and accounting | 1035777 | 523106 | 268181 |
| &nbsp;&nbsp;&nbsp;Consulting (note 15) | 1533954 | 657652 | 553152 |
| &nbsp;&nbsp;&nbsp;Gain on settlement of accounts payable (note 6) | - | (1787300) | - |
| **Loss from operations** | (18752504) | (9454396) | (10793823) |
| **Other income or gain (expense or loss)** |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in derivative liability (notes 8 and 10) | 12300453 | 10503941 | (18843947) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on foreign exchange | 208660 | 152063 | (26625) |
| &nbsp;&nbsp;&nbsp;Accretion expense (notes 7 and 8) |  | (118388) | (359267) |
| &nbsp;&nbsp;&nbsp;Interest expense (notes 7 and 8) | (102740) | (124367) | (202426) |
| &nbsp;&nbsp;&nbsp;Financing costs (note 8) |  | (360000) | (30000) |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement (notes 8 and 10) | (56146) | (875861) | (1056296) |
| &nbsp;&nbsp;&nbsp;Loss on private placement (note 10) |  | (940290) |  |
| &nbsp;&nbsp;&nbsp;Share issuance costs (note 10) |  | (947156) |  |
| &nbsp;&nbsp;&nbsp;Loss on loan extinguishment (note 7) | - | - | (9407) |
| **Net loss and comprehensive** |  |  |  |
| &nbsp;&nbsp;&nbsp; **loss for the year** | $(6402277) | $(2164454) | $(31321791) |
| **Net loss per common share** |  |  |  |
| &nbsp;&nbsp;&nbsp;**- basic and fully diluted** | $(0.04) | $(0.02) | $(0.47) |
| **Weighted average number of common shares** |  |  |  |
| &nbsp;&nbsp;&nbsp; **- basic and fully diluted** | 161868334 | 124424407 | 67180554 |

---

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

**Bunker Hill Mining Corp.**

**Consolidated Statements of Cash Flows**

**(Expressed in United States Dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year**<br>**Ended**<br>**December 31,**<br>**2021** | **Six Months**<br>**Ended**<br>**December 31,**<br>**2020** | **Year**<br>**Ended**<br>**June 30,**<br>**2020** |
| **Operating activities** |  |  |  |
| Net loss for the year | $(6402277) | $(2164454) | $(31321791) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 1730308 | 1411657 | 1047388 |
| &nbsp;&nbsp;&nbsp;Depreciation expense | 239904 | 106808 | 123956 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | (12300453) | (10503941) | 18843947 |
| &nbsp;&nbsp;&nbsp;Accretion expense |  | 118388 | 359267 |
| &nbsp;&nbsp;&nbsp;Financing costs |  | 360000 | 30000 |
| &nbsp;&nbsp;&nbsp;Loss on loan extinguishment |  |  | 9407 |
| &nbsp;&nbsp;&nbsp;Imputed interest expense on lease liability (note 9) | 12696 | 10038 | 27062 |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss (gain) on re-translation of lease (Note 9) | 2165 | 13334 | (10766) |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement | 56146 | 875861 | 1056296 |
| &nbsp;&nbsp;&nbsp;Loss on private placement |  | 940290 |  |
| &nbsp;&nbsp;&nbsp;Share issuance costs |  | 947156 |  |
| Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (12598) | (21340) | (35828) |
| &nbsp;&nbsp;&nbsp;Prepaid mine acquisition costs | (260463) |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid finance costs | (393640) |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 76112 | (274211) | (67542) |
| &nbsp;&nbsp;&nbsp;Accounts payable | (128774) | (1775211) | 1403873 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 787363 | (549489) | 300211 |
| &nbsp;&nbsp;&nbsp;EPA water treatment payable | 1974656 | 826662 | 1019878 |
| &nbsp;&nbsp;&nbsp;EPA cost recovery payable | 3000000 | 3000000 | 3000000 |
| &nbsp;&nbsp;&nbsp;Other liabilities |  |  | (11117) |
| &nbsp;&nbsp;&nbsp;Interest payable | 246702 | 197727 | 278545 |
| **Net cash used in operating activities** | (11372153) | (6480725) | (3947214) |
| **Investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposit on mining interest |  | (2000000) |  |
| &nbsp;&nbsp;&nbsp;Purchase of machinery and equipment | (94693) | (280701) | (219528) |
| **Net cash used in investing activities** | (94693) | (2280701) | (219528) |
| **Financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock, net | 6013439 | 13315538 | 2428530 |
| &nbsp;&nbsp;&nbsp;Proceeds from warrants exercised |  |  | 417006 |
| &nbsp;&nbsp;&nbsp;Shares to be issued |  |  | 549363 |
| &nbsp;&nbsp;&nbsp;Lease payments | (129191) | (61504) | (120690) |
| &nbsp;&nbsp;&nbsp;Proceeds from promissory note | 2500000 | 840000 | 1084536 |
| &nbsp;&nbsp;&nbsp;Repayment of promissory note | - | (1825920) | (158094) |
| **Net cash provided by financing activities** | 8384248 | 12268114 | 4200651 |
| **Net change in cash** | (3082598) | 3506688 | 33909 |
| **Cash, beginning of year** | 3568661 | 61973 | 28064 |
| **Cash, end of year** | $486063 | $3568661 | $61973 |
| **Supplemental disclosures** |  |  |  |
| Non-cash activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock issued to settle accounts payable, accrued liabilities, interest payable, and promissory notes | $188146 | $1085115 | $717673 |
| &nbsp;&nbsp;&nbsp;Common stock issued to settle convertible loan |  | 1600000 | 300000 |

---

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

**Bunker Hill Mining Corp.**

**Consolidated Statements of Changes in Shareholders' Deficiency**

**(Expressed in United States Dollars)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Shares** | **Amount** |<br>**Additional**<br>**paid-in-**<br>**capital** |<br><br>**Shares to**<br>**be issued** | **Deficit**<br>**accumulated**<br>**during the**<br>**exploration**<br>**stage** |<br><br>**Total** |
| **Balance, June 30, 2019** | **15811396** | $**16** | $**24284765** | $**107337** | $**(32602628)** | $**(8210510)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 497724 |  |  | 497724 |
| &nbsp;&nbsp;&nbsp;Shares and units issued at $0.04 per share <sup>(i)</sup> | 35008956 | 35 | 1315691 | (107337) |  | 1208389 |
| &nbsp;&nbsp;&nbsp;Units issued for debt settlement at $0.09 per share | 16962846 | 17 | 1499034 |  |  | 1499051 |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement at $0.14 per share | 2033998 | 2 | 274916 |  |  | 274918 |
| &nbsp;&nbsp;&nbsp;Shares issued at $0.42 per share <sup>(ii)</sup> | 3098216 | 3 | 1301522 |  |  | 1301525 |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement at $0.42 per share <sup>(ii)</sup> | 696428 | 1 | 299999 |  |  | 300000 |
| &nbsp;&nbsp;&nbsp;Finder's units issued | 3315200 | 3 | 125177 |  |  | 125180 |
| &nbsp;&nbsp;&nbsp;Finder's warrants issued |  |  | 50223 |  |  | 50223 |
| &nbsp;&nbsp;&nbsp;Warrants exercised at $0.18 per share <sup>(iii)</sup> | 2332900 | 2 | 1288714 |  |  | 1288716 |
| &nbsp;&nbsp;&nbsp;Issue costs |  |  | (336480) |  |  | (336480) |
| &nbsp;&nbsp;&nbsp;Warrant valuation |  |  | (468227) |  |  | (468227) |
| &nbsp;&nbsp;&nbsp;Shares to be issued |  |  |  | 549363 |  | 549363 |
| &nbsp;&nbsp;&nbsp;Net loss for the year | - | - | - | - | (31321791) | (31321791) |
| **Balance, June 30, 2020** | **79259940** | $**79** | $**30133058** | $**549363** | $**(63924419)** | $**(33241919)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 851196 |  |  | 851196 |
| &nbsp;&nbsp;&nbsp;Units issued at $0.26 per unit <sup>(iv)</sup> | 56078434 | 56 | 14812001 | (549363) |  | 14262694 |
| &nbsp;&nbsp;&nbsp;Units issued for debt settlement at $0.67 per unit | 2205714 | 2 | 1484350 |  |  | 1484352 |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement at $0.37 per share <sup>(v)</sup> | 5572980 | 6 | 2076618 |  |  | 2076624 |
| &nbsp;&nbsp;&nbsp;Warrant valuation |  |  | (14806090) |  |  | (14806090) |
| &nbsp;&nbsp;&nbsp;Net loss for the period | - | - | - | - | (2164454) | (2164454) |
| **Balance, December 31, 2020** | **143117068** | $**143** | $**34551133** | $**-** | $**(66088873)** | $**(31537597)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 1309024 |  |  | 1309024 |
| &nbsp;&nbsp;&nbsp;Shares issued at $0.32 per share <sup>(vi)</sup> | 19576360 | 20 | 6168049 |  |  | 6168069 |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement at $0.45 per share <sup>(vii)</sup> | 417720 |  | 188146 |  |  | 188146 |
| &nbsp;&nbsp;&nbsp;Shares issued for RSUs vested | 1324294 | 1 | (1) |  |  |  |
| &nbsp;&nbsp;&nbsp;Issue costs |  |  | (154630) |  |  | (154630) |
| &nbsp;&nbsp;&nbsp;Warrant valuation |  |  | (3813103) |  |  | (3813103) |
| &nbsp;&nbsp;&nbsp;Net loss for the year | - | - | - | - | (6402277) | (6402277) |
| **Balance, December 31, 2021** | **164435442** | $**164** | $**38248618** | $**-** | $**(72491150)** | $**(34242368)** |

---

<sup>(i)</sup> Shares and units issued at C$0.05, converted to US at $0.04 (note 10)

<sup>(ii)</sup> Shares issued at C$0.56, converted to US at $0.42 (note 10)

<sup>(iii)</sup> Shares issued upon warrants exercised at C$0.25, converted to US at $0.18 (note 10)

<sup>(iv)</sup> Units issued at C$0.35, converted to US at $0.26 (note 10)

<sup>(v)</sup> Shares issued at C$0.49, converted to US at $0.37 (note 10)

<sup>(vi)</sup> Units issued at C$0.40, converted to US at $0.32 (note 10)

<sup>(vii)</sup> Units issued at C$0.57, converted to US at $0.45 (note 10)

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

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**1. Nature and continuance of operations and going concern**

Bunker Hill Mining Corp. (the "Company") was incorporated under the laws of the state of Nevada, U.S.A. on February 20, 2007 under the name Lincoln Mining Corp. Pursuant to a Certificate of Amendment dated February 11, 2010, the Company changed its name to Liberty Silver Corp., and on September 29, 2017, the Company changed its name to Bunker Hill Mining Corp. The Company's registered office is located at 1802 N. Carson Street, Suite 212, Carson City Nevada 89701, and its head office is located at 82 Richmond Street East, Toronto, Ontario, Canada, M5C 1P1. As of the date of this Form 10-K, the Company had one subsidiary, Silver Valley Metals Corp. (formerly American Zinc Corp.), an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Idaho.

The Company was incorporated for the purpose of engaging in mineral exploration activities. It continues to work at developing its project with a view towards putting it into production.

**Going Concern:**

These consolidated financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $72,491,150 and further losses are anticipated in the development of its business. Additionally, the Company owes a total of $16,417,208 to the EPA (see Note 6) that is classified as current liability unless the Company can consummate financial assurances that would reclassify $11,000,000 of this liability to long-term debt. The Company does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Company's ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets and debt financing. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development, and sale of reserves.

**COVID-19:**

The Company's operations could be significantly adversely affected by the effects of a widespread global outbreak of epidemics, pandemics, or other health crises, including the recent outbreak of respiratory illness caused by the novel coronavirus ("COVID-19"). The Company cannot accurately predict the impact COVID-19 will have on its operations and the ability of others to meet their obligations with the Company, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect the Company's operations and ability to finance its operations.

***The Russia/Ukraine Crisis:***

The Company's operations could be adversely affected by the effects of the escalating Russia/Ukraine crisis and the effects of sanctions imposed against Russia or that country's retributions against those sanctions, embargos or further-reaching impacts upon energy prices, food prices and market disruptions. The Company cannot accurately predict the impact the crisis will have on its operations and the ability of contractors to meet their obligations with the Company, including uncertainties relating the severity of its effects, the duration of the conflict, and the length and magnitude of energy bans, embargos and restrictions imposed by governments. In addition, the crisis could adversely affect the economies and financial markets of the United States in general, resulting in an economic downturn that could further affect the Company's operations and ability to finance its operations. Additionally, the Company cannot predict changes in precious metals pricing or changes in commodities pricing which may alternately affect the Company either positively or negatively.

**2. Basis of presentation**

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to exploration stage enterprises. The consolidated financial statements are expressed in U.S. dollars, the Company's functional currency.

In February 2021, the Company changed its fiscal year from June 30 to December 31. As a result, in addition to the full calendar year ended December 31, 2021, the Company is reporting financial information for the transition period from July 1, 2020 to December 31, 2020, and the preceding full fiscal year of July 1, 2019 to June 30, 2020.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**3. Significant accounting policies**

The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements.

**Basis of consolidation**

These consolidated financial statements include the assets, liabilities and expenses of the Company and its wholly owned subsidiary, Silver Valley Metals Corp. (formerly American Zinc Corp.). All intercompany transactions and balances have been eliminated on consolidation.

**Cash and cash equivalents**

Cash and cash equivalents may include highly liquid investments with original maturities of three months or less.

**Mineral rights, property and acquisition costs**

The Company has been in the exploration stage since its formation on February 20, 2007 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties.

The Company capitalizes acquisition and option costs of mineral rights as intangible assets when there is sufficient evidence to support probability of generating positive economic returns in the future. Upon commencement of commercial production, the mineral rights will be amortized using the unit-of-production method over the life of the mineral rights. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time.

The costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred to develop and expand the capacity of mines, or to develop mine areas in advance of production, are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current exploration or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (FASB ASC) 360-10-35, Impairment or Disposal of Long-Lived Assets.

**Equipment**

Equipment is stated at cost less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income or gain (expense or loss).

The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful lives of equipment or whether the remaining balance of the equipment should be evaluated for possible impairment. If events and circumstances warrant evaluation, the Company uses an estimate of the related undiscounted cash flows over the remaining life of the equipment in measuring their recoverability.

**Leases**

Operating lease right of use ("ROU") assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in operation and administration expenses in the consolidated statements of loss and comprehensive loss.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

The Company is required to make additional payments for certain variable costs. These costs are expensed and included in operation and administration expenses in the consolidated statements of loss and comprehensive loss. Rental income obtained through subleases is recorded as income over the lease term and is offset against operation and administration expenses.

**Impairment of long-lived assets**

The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360, Property, Plant and Equipment, if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis is performed using the rules of FASB ASC 930-360-35, Extractive Activities – Mining, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets.

Various factors could impact the Company's ability to achieve forecasted production schedules. Additionally, commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions the Company may use in cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically.

**Fair value of financial instruments**

The Company adopted FASB ASC 820-10, Fair Value Measurement. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

● Level
 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level
 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that
 are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

● Level
 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable excluding HST, accounts payable, accrued liabilities, interest payable, convertible loan payable, promissory notes payable, lease liability, and other liabilities, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest. The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs.

**Environmental expenditures**

The operations of the Company have been, and may in the future be, affected from time to time, in varying degrees, by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company's policy is to meet, or if possible, surpass standards set by relevant legislation, by application of technically proven and economically feasible measures.

Environmental expenditures that relate to ongoing environmental and reclamation programs are expensed as incurred or capitalized and amortized depending on their future economic benefits. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries.

**Income taxes**

The Company accounts for income taxes in accordance with Accounting Standard Codification 740, Income Taxes ("FASB ASC 740"), on a tax jurisdictional basis. The Company files income tax returns in the United States.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax bases of assets and liabilities and the consolidated financial statements reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

The Company assesses the likelihood of the consolidated financial statements effect of a tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in jurisdictions such as the United States. Management does not believe that there are any uncertain tax positions that would result in an asset or liability for taxes being recognized in the accompanying consolidated financial statements. The Company recognizes tax-related interest and penalties, if any, as a component of income tax expense.

FSAB ASC 740 prescribes recognition threshold and measurement attributes for the consolidated financial statements recognition and measurement of a tax position taken, or expected to be taken, in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in periods, disclosure and transition. At December 31, 2021, December 31, 2020, and June 30, 2020, the Company has not taken any tax positions that would require disclosure under FASB ASC 740.

**Basic and diluted net loss per share**

The Company computes net loss per share in accordance with FASB ASC 260, Earnings per Share ("FASB ASC 260"). Under the provisions of FASB ASC 260, basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants and the conversion of convertible loan payable. As of December 31, 2021, 9,053,136 stock options, 111,412,712 warrants, and 3,590,907 broker options were considered in the calculation but not included, as they were anti-dilutive (December 31, 2020 – 8,015,159 stock options, 95,777,806 warrants, and 3,239,907 broker options).

**Stock-based compensation**

In December 2004, FASB issued FASB ASC 718, Compensation – Stock Compensation ("FASB ASC 718"), which establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. FASB ASC 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. FASB ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the consolidated financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued.

The Company accounts for stock-based compensation arrangements with non-employees in accordance with ASU 505-50, Equity-Based Payments to Non-Employees, which requires that such equity instruments are recorded at the value on the grant date based on fair value of the equity or goods and services whichever is more reliable.

**Restricted share units ("RSUs")**

The Company estimates the grant date fair value of RSUs using the Company's common shares at the grant date. The Company records the value of the RSUs in paid-in capital.

**Deferred share units ("DSUs")**

The Company estimates the grant date fair value of the DSUs using the trading price of the Company's common shares on the day of grant. The Company records the value of the DSUs owing to its directors as DSU liability and measures the DSU liability at fair value at each reporting date, with changes in fair value recognized as stock-based compensation in profit (loss).

**Use of estimates and assumptions**

Many of the amounts included in the consolidated financial statements require management to make judgments and/or estimates. These judgments and estimates are continuously evaluated and are based on management's experience and knowledge of the relevant facts and circumstances. Actual results may differ from the amounts included in the consolidated financial statements.

 

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

 

Areas of significant judgment and estimates affecting the amounts recognized in the consolidated financial statements include:

 

*Going concern*

The assessment of the Company's ability to continue as a going concern involves judgment regarding future funding available for its operations and working capital requirements as discussed in note 1.

*Accrued liabilities*

The Company has to make estimates to accrue for certain expenditures due to delay in receipt of third-party vendor invoices. These accruals are made based on trends, history and knowledge of activities. Actual results may be different.

 

The Company makes monthly estimates of its water treatment costs, with a true-up to the annual invoice received from the Idaho Department of Environmental Quality ("IDEQ"). Using the actual costs in the annual invoice, the Company then reassesses its estimate for future periods. Given the nature, complexity and variability of the various actual cost items included in the invoice, the Company has used the most recent invoice as its estimate of the water treatment costs for future periods.

 

*Convertible loans, promissory notes and warrants*

Estimating the fair value of derivative warrant liability and conversion feature derivative liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the warrants and conversion feature derivative liability, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value of warrants and conversion feature derivative liability are disclosed in notes 8 and 10.

The fair value estimates may differ from actual fair values and these differences may be significant and could have a material impact on the Company's balance sheets and the consolidated statements of operations. Assets are reviewed for an indication of impairment at each reporting date. This determination requires significant judgment. Factors that could trigger an impairment review include, but are not limited to, significant negative industry or economic trends, interruptions in exploration activities or a significant drop in precious metal prices.

**Reclassifications**

Certain reclassifications have been made to conform prior year's data to the current presentation. The reclassifications have no effect on the results of reported operations or stockholders' deficit or cash flows.

**Concentrations of credit risk**

The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash. The Company places its cash with financial institutions of high credit worthiness. At times, its cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management also routinely assesses the financial strength and credit worthiness of any parties to which it extends funds and as such, it believes that any associated credit risk exposures are limited.

**Risks and uncertainties**

The Company operates in the mineralized material exploration industry that is subject to significant risks and uncertainties, including financial, operational, and other risks associated with operating a mineralized material exploration business, including the potential risk of business failure.

**Foreign currency transactions**

The Company from time to time will receive invoices from service providers that are presenting their invoices using the Canadian dollar. The Company will use its U.S. dollars to settle the Canadian dollar liabilities and any differences resulting from the exchange transaction are reported as gain or loss on foreign exchange.

**Convertible loans and promissory notes payable**

The Company reviews the terms of its convertible loans and promissory notes payable to determine whether there are embedded derivatives, including the embedded conversion option, that are required to be bifurcated and accounted for as individual derivative financial instruments. In circumstances where the convertible debt or the promissory note contains embedded derivatives that are to be separated from the host contracts, the total proceeds received are first allocated to the fair value of the derivative financial instruments determined using the binomial model. The remaining proceeds, if any, are then allocated to the debenture cost contracts, usually resulting in those instruments being recorded at a discount from their principal amount. This discount is accreted over the expected life of the instruments to profit (loss) using the effective interest method.

The debenture host contracts are subsequently recorded at amortized cost at each reporting date, using the effective interest method. The embedded derivatives are subsequently recorded at fair value at each reporting date, with changes in fair value recognized in profit (loss).

The Company presents its embedded derivatives and related debenture host contracts as separate instruments on the consolidated balance sheets.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**4. Equipment**

Equipment consists of the following:

Schedule of Equipment

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Equipment | $603972 | $509279 |
|  | 603972 | 509279 |
| Less accumulated depreciation | (207078) | (73552) |
| Equipment, net | $396894 | $435727 |

---

The total depreciation expense during the year ended December 31, 2021 was $133,526 (six months ended December 31, 2020 - $52,784 and the year ended June 30, 2020 - $17,577).

**5. Right-of-use asset**

Right-of-use asset consists of the following:

Schedule of Right-of-use Asset

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Office lease | $319133 | 319133 |
| Less accumulated depreciation | (266780) | (160402) |
| Right-of-use asset, net | $52353 | $158731 |

---

The total depreciation expense during the year ended December 31, 2021 was $106,378 (six months ended December 31, 2020 - $54,024 and the year ended June 30, 2020 - $106,378).

**6. Mining Interests**

**Bunker Hill Mine Complex**

On November 27, 2016, the Company entered into a non-binding letter of intent with Placer Mining Corp. ("Placer Mining"), which letter of intent was further amended on March 29, 2017, to acquire the Bunker Hill Mine in Idaho and its associated milling facility located in Kellogg, Idaho, in the Coeur d'Alene Basin (as amended, the "Letter of Intent"). Pursuant to the terms and conditions of the Letter of Intent, the acquisition, which was subject to due diligence, would include all mining claims, surface rights, fee parcels, mineral interests, existing infrastructure, machinery and buildings at the Kellogg Tunnel portal in Milo Gulch, or anywhere underground at the Bunker Hill Mine Complex. The acquisition would also include all current and historic data relating to the Bunker Hill Mine Complex, such as drill logs, reports, maps, and similar information located at the mine site or any other location.

During the year ended June 30, 2017, the Company made payments totaling $300,000 as part of this Letter of Intent. These amounts were initially capitalized and subsequently written off during fiscal 2018 and were included in exploration expenses.

On August 28, 2017, the Company announced that it signed a definitive agreement (the "Agreement") for the lease and option to purchase the Bunker Hill Mine assets (the "Bunker Assets"). Under the terms of the Agreement, the Company was required to make a $1,000,000 bonus payment to Placer Mining no later than October 31, 2017, which payment was made, along with two additional $500,000 bonus payments in December 2017. The 24-month lease commenced November 1, 2017. During the term of the lease, the Company was to make $100,000 monthly mining lease payments, paid quarterly.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

The Company had an option to purchase the Bunker Assets at any time before the end of the lease and any extension for a purchase price of $45,000,000 with purchase price payments to be made over a ten-year period to Placer Mining. Under the terms of the agreement, there is a 3% net smelter return royalty ("NSR") on sales during the lease and a 1.5% NSR on the sales after the purchase option is exercised, which post-acquisition NSR is capped at $60,000,000.

On October 2, 2018, the Company announced that it was in default of the Agreement. The default arose as a result of missed lease and operating cost payments, totaling $400,000, which were due at the end of September and on October 1, 2018. As per the Agreement, the Company had 15 days, from the date notice of default was provided (September 28, 2018), to remediate the default by making the outstanding payment. While management worked with urgency to resolve this matter, management was ultimately unsuccessful in remedying the default, resulting in the Agreement being terminated.

On November 13, 2018, the Company announced that it was successful in renewing the Agreement, effectively with the original Agreement intact, except monthly payments were reduced to $60,000 per month for 12 months, with the accumulated reduction in payments of $140,000 per month ("deferred payments") being accrued.

On November 1, 2019, the Agreement was amended (the "Amended Agreement"). The key terms of the Amended Agreement are as follows:

● The
 lease period was extended for an additional period of nine months to August 1, 2020, with the option to extend for a further six
 months based upon payment of a one-time $60,000 extension fee (extended) ;

● The
 Company will make monthly care and maintenance payments to Placer Mining of $60,000 until exercising the option to purchase; and

● The
 purchase price is set at $11,000,000 for 100 % of the Bunker Assets to be paid with $6,200,000 in cash, and $4,800,000 in common shares.
 The purchase price also includes the negotiable United States Environmental Protection Agency ("EPA") costs of $20,000,000 .
 The Amended Agreement provides for the elimination of all royalty payments that were to be paid to the mine owner. Upon signing the
 Amended Agreement, the Company paid a one-time, non-refundable cash payment of $300,000 to the mine owner. This payment will be applied
 to the purchase price upon execution of the purchase option. In the event the Company elects not to exercise the purchase option,
 the payment shall be treated as an additional care and maintenance payment.

On July 27, 2020, the Company extended the lease with Placer Mining for a further 18 months for a $150,000 extension fee. This extension expires on August 1, 2022.

On November 20, 2020, the Company signed a further amendment to the Amended Agreement. Under the terms of this amendment:

● The
 Company will continue to make monthly care and maintenance payments to Placer Mining of $60,000 until exercising the option to purchase ;

● The
 purchase price was reduced to $7,700,000 , with $5,700,000 payable in cash (with an aggregate of $300,000 to be credited toward the
 purchase price of the Bunker Assets as having been previously paid by the Company and an aggregate of $5,400,000 payable in cash
 outstanding) and $2,000,000 in common shares. The reference price for the payment in common shares will be based on the common share
 price of the last equity raise before the option is exercised;

● The
 Company's contingent obligation to settle $1,787,300 of accrued payments due to Placer Mining has been waived. As a result,
 the Company recorded a gain on settlement of accounts payable of $1,787,300 ; and

● The
 Company is to make an advance payment of $2,000,000 (paid) to Placer Mining which shall be credited toward the purchase price if
 and when the Company elects to exercise its purchase right. In the event that the Company irrevocably elects not to exercise its
 purchase right, the advance payment of $2,000,000 will be repaid to the Company within twelve months from the date of such election.
 This payment had the effect of decreasing the remaining amount payable to purchase the Bunker Assets to an aggregate of $3,400,000 payable in cash and $2,000,000 in common shares of the Company.

As at December 31, 2021 and 2020, the Company accrued for a total of $nil for each year (June 30, 2020 - $1,847,300), which was included in accounts payable. These monthly payments will be waived should the Company choose to exercise its option.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**Purchase of the Bunker Hill Mine:**

In December 2021, the Company announced its intention to purchase the mine complex, which was consummated subsequent to the close of the period. With the execution of the EPA settlement agreement amendment described below and the expected receipt of $8,000,000 proceeds from the Royalty Convertible Debenture, the Company has contracted to purchase the Bunker Hill Mine from Placer Mining Corp. and a definitive agreement has been signed by both parties. The terms of the purchase were modified to a purchase price of $7,700,000, with $300,000 of previous lease payments and a deposit of $2,000,000 applied to the purchase, resulting in cash paid at closing of approximately $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of common shares in the Company. Purchase of the mine consists of over 400 patented mining claims and 5,800 acres of private land.

Closing of the transaction occurred in January 2022, concurrent with funding of the Royalty Convertible Debenture, approval of the transaction by Placer Mining Corp. shareholders, and satisfaction of other closing conditions. See Note 16, Subsequent Events.

**Environmental Protection Agency Agreement:**

In addition to the payments to Placer Mining described above, and pursuant to an agreement with the EPA whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPA's claim for cost recovery. These payments, if all are made, will total $20,000,000. The agreement calls for payments starting with $1,000,000 30 days after a fully ratified agreement was signed followed by a payment schedule detailed below:

Schedule of Payments for Mining

---

| | | |
|:---|:---|:---|
| **Date** | **Amount** | **Action** |
| Within 30 days of the effective date | $1000000 | Paid |
| November 1, 2018 | $2000000 | Not paid |
| November 1, 2019 | $3000000 | Not paid |
| November 1, 2020 | $3000000 | Not paid |
| November 1, 2021 | $3000000 | Not paid |
| November 1, 2022 | $3000000 |  |
| November 1, 2023 | $3000000 |  |
| November 1, 2024 | $2000000 |  |

---

The total unpaid EPA cost recovery payments under the agreement was $11,000,000 at December 31, 2021 (December 31, 2020 - $8,000,000 and June 30, 2020 - $5,000,000, respectively).

In addition to these cost recovery payments, the Company is to make semi-annual payments of $480,000 on June 1 and December 1 of each year, to cover the EPA's costs of operating and maintaining the water treatment facility that treats the water being discharged from the Bunker Hill Mine. The Company also has received invoices from the EPA for additional water treatment charges for the periods from December 2017 to May 2021, and has accrued costs for estimated water treatment costs through December 31, 2021. A total of $5,110,706 was outstanding as at December 31, 2021 (December 31, 2020 - $3,136,050 and June 30, 2020 - $2,309,388, respectively). In December 2021, the Company entered into a Settlement Amendment, described below, under which a payment of $2,963,111 would be made toward water treatment liabilities, representing the balance of liabilities owed for the 2020 and earlier invoices, net of payments made through the end of September 2021. In consultation with the EPA, the Company has committed to meet this obligation by 180 days from the effective date of the Amended Settlement Agreement. The unpaid EPA balance is subject to interest at the rate specified for interest on investments of the EPA Hazardous Substance Superfund, which was 0.10% at December 31, 2021. As at December 31, 2021, the interest accrued on the unpaid EPA balance was $306,502 (December 31, 2020 - $162,540 and June 30, 2020 - $89,180, respectively).

During the year ended December 31, 2021, the Company has accrued an estimate for additional water treatment charges based on an invoice received covering the period of November 2019 to October 2020 and a further invoice covering the period of November 2020 to May 2021. The Company believes that the charges in this latter invoice, of approximately $165,000 per month, represent the best estimate of unbilled charges for the period of June 2021 to December 2021, and has accrued for these charges accordingly. Net of a total of $880,000 cash payments made to the EPA during the year, the total accrual for EPA water treatment charges is $5,110,706 as of December 31, 2021, before consideration of unpaid cost recovery payments. The Company has included all unpaid and accrued EPA payments and accrued interest in accounts payable and accrued liabilities, totaling $16,417,208 due to the EPA at December 31, 2021 (December 31, 2020 - $11,298,594 and June 30, 2020 - $7,915,235, respectively). For the year ended December 31, 2021, water treatment costs of $5,998,615 were recognized as part of exploration expense (six months ended December 31, 2020 – $3,873,359, year ended June 30, 2020 – $5,905,235).

**EPA Settlement Agreement Amendment:**

In December 2021, in conjunction with its intention to purchase the mine complex, the Company entered into an amended Settlement Agreement (the "Amendment") between the Company, Idaho Department of Environmental Quality, US Department of Justice and the EPA, modifying the payment schedule and payment terms for recovery of historical environmental response costs at Bunker Hill Mine incurred by the EPA. With the purchase of the mine subsequent to the end of the period, the remaining payments of the EPA cost recovery liability would be assumed by the Company, resulting in a total of $19,000,000 liability to the Company, an increase of $8,000,000. The new payment schedule includes a $2,000,000 payment to the EPA within 30 days of execution of this amendment, which was paid subsequent to December 31, 2021. The remaining $17,000,000 will be paid on the following dates:

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

Schedule of Payments for Mining

---

| | |
|:---|:---|
| **Date** | **Amount** |
| November 1, 2024 | $3000000 |
| November 1, 2025 | $3000000 |
| November 1, 2026 | $3000000 |
| November 1, 2027 | $3000000 |
| November 1, 2028 | $3000000 |
| November 1, 2029 | $2,000,000 plus accrued interest |

---

The resumption of payments in 2024 were agreed in order to allow the Company to generate sufficient revenue from mining activities at the Bunker Hill Mine to address remaining payment obligations from free cash flow.

In addition to the cost recovery payments outlined above, the Amendment includes payment for outstanding water treatment costs that have been incurred over the period from 2018 through October 2020. This approximately $2,900,000 payment would be made within 90 days of the execution of the Amendment. On March 22, 2022, the Company reported that in consultation with the EPA, it has committed to meet the approximately $2,900,000 and Financial Assurance obligations by 180 days from the effective date of the Amended Settlement Agreement.

The changes in payment terms and schedule, are contingent upon the Company securing Financial Assurance in the form of performance bonds or letters of credit deemed acceptable to the EPA totaling $17,000,000. These assurances correspond to the Company's cost recovery obligations to be paid in 2024 through 2029 as outlined above. Should the Company fail to make its scheduled payment, the EPA can draw against this financial assurance. The amount of the bonds or letters of credit will decrease over time as individual payments are made. If the Company fails to post the Final Financial Assurance within 180 days of the execution of the Amendment, the terms of the original agreement as described above will be reinstated.

As at December 31, 2021, the Company had not secured the interim financial assurance, and therefore the contingency had not been removed or satisfied. Further, as of the date of this filing, the financial assurance has not been secured, and as a result, the liability to the EPA is accounted for with no effectivity of the Amendment, with the liabilities each reflected as current liabilities. See Note 16, Subsequent Events.

**7. Convertible loan payable**

On June 13, 2018, the Company entered into a loan and warrant agreement with Hummingbird Resources PLC ("Hummingbird"), an arm's length investor, for an unsecured convertible loan in the aggregate sum of $1,500,000, bearing interest at 10% per annum, maturing in one year. Contemporaneously, the Company agreed to issue 229,464 share purchase warrants, entitling the lender to acquire 229,464 common shares of the Company, at a price of C$8.50 per common share, for two years. Under the terms of the loan agreement, the lender may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon, into common shares of the Company at a price per share equal to C$8.50. In the event that a notice of conversion would result in the lender holding 10% or more of the Company's issued and outstanding shares, then, in the alternative, and under certain circumstances, the Company would be required to pay cash to the lender in an amount equal to C$8.50 multiplied by the number of shares intended to be issued upon conversion. Further, in the event that the lender holds more than 5% of the issued and outstanding shares of the Company subsequent to the exercise of any of its convertible securities held under this placement, it shall have the right to appoint one director to the board of the Company. Lastly, among other things, the loan agreement further provides that for as long as any amount is outstanding under the convertible loan, the investor retains a right of first refusal on any Company financing or joint venture/strategic partnership/disposal of assets.

In August 2018, the amount of the Hummingbird convertible loan payable was increased to $2,000,000 from its original $1,500,000 loan, net of $45,824 of debt issue costs. An additional 116,714 warrants with each warrant exercisable at C$4.50 were issued. Under the terms of the amended and restated loan agreement, Hummingbird may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon, into common shares of Bunker as follows: (i) $1,500,000, being the original principal amount (the "Principal Amount"), may be converted at a price per share equal to C$8.50; (ii) 229,464 common shares may be acquired upon exercise of warrants at a price of C$8.50 per warrant for a period of two years from the date of issuance; (iii) $500,000, being the additional principal amount (the "Additional Amount"), may be converted at a price per share equal to C$4.50; and (iv) 116,714 common shares may be acquired upon exercise of warrants at a price of C$4.50 per warrant for a period of two years from the date issuance. In the event that Hummingbird would acquire common shares in excess of 9.999% through the conversion of the Principal Amount or the Additional Amount, including interest accruing thereon, or on exercise of the warrants as disclosed herein, the Company shall pay to Hummingbird a cash amount equal to the common shares exercised in excess of 9.999%, multiplied by the conversion price.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

During the year ended June 30, 2019, Hummingbird agreed to extend the scheduled maturity date of the loan to June 30, 2020. This was accounted for as a loan extinguishment which resulted in the recording of a net loss on loan extinguishment of $1,195,880.

In June 2019, the Company settled $100,000 of the Additional Amount by issuing 2,660,000 common shares, which resulted in the recording of a net loss on loan extinguishment of $8,193.

In February 2020, the Company settled $300,000 of the Additional Amount by issuing 696,428 common shares, which resulted in the recording of a net loss on loan extinguishment of $9,407.

In June 2020, Hummingbird agreed to extend the scheduled maturity date of the loan to July 31, 2020.

In October 2020, the Company settled the full amount of the outstanding loan by issuing 5,572,980 common shares at a deemed price of C$0.49 based on the fair value of the shares issued. As a result, the Company recorded a gain on debt settlement of $23,376 on the consolidated statements of loss and comprehensive loss.

The Company has accounted for the conversion features and warrants in accordance with ASC Topic 815. The conversion features and warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the Company's functional currency of the U.S. dollar. The estimated fair value of the conversion features and warrants was determined on the date of issuance and marks to market at each financial reporting period. As at December 31, 2020, the fair values of the conversion feature and warrants were $nil (June 30, 2020 - $nil).

Accretion expense for the six months ended December 31, 2020 was $nil (year ended June 30, 2020 - $146,266) based on an effective interest rate of 16% after the loan extension.

Interest expense for the six months ended December 31, 2020 was $118,767 (year ended June 30, 2020 - $179,726). As at December 31, 2020, the Company has an outstanding interest payable of $nil (June 30, 2020 - $381,233).

---

| | |
|:---|:---|
|  | **Amount** |
| Balance, June 30, 2019 | $1744327 |
| Accretion expense | 146266 |
| Loss on loan extinguishment | 9407 |
| Partial extinguishment | (300000) |
| Balance, June 30, 2020 | $1600000 |
| Loan extinguishment | (1600000) |
| Balance, December 31, 2020 | $- |

---

**8. Promissory notes payable**

(i) On November 13, 2019, the Company issued a promissory note in the amount of $300,000. The note was unsecured, bore interest of 1% monthly, and is due on demand after 90 days from issuance. In consideration for the loan, the Company issued 400,000 common share purchase warrants to the lender. Each whole warrant entitles the lender to acquire one common share of the Company at a price of C$0.80 per share for a period of two years.

On April 24, 2020, the Company extended the maturity date of the promissory note payable to August 1, 2020. In consideration, the Company issued 400,000 common share purchase warrants to the lender at an exercise price of C$0.50. The warrants expire on November 13, 2021. This was accounted for as a loan modification.

During the six months ended December 31, 2020, the Company repaid $110,658 of the promissory note and settled the remaining balance of $218,281 (C$288,000), which included interest payable of $28,939, in full by issuing 822,857 August 2020 Units (as defined in note 10), recognizing a loss on debt settlement of $335,467.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

The Company has accounted for the warrants in accordance with ASC Topic 815. The warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the Company's functional currency of the US dollar. The estimated fair value of the warrants was determined on the date of issuance and marks to market at each financial reporting period.

---

| | | |
|:---|:---|:---|
| **November 2019 issuance** | **December 31, 2020** | **Maturity at**<br> **November 13, 2021** |
| Expected life | 317 days | 0 days |
| Volatility | 100% | 100% |
| Risk free interest rate | 0.64% | 0.30% |
| Dividend yield | 0% | 0% |
| Share price | $0.41 | $0.18 |
| Fair value | $40999 | Nil |
| Change in derivative liability |  | $(40999) |

---

---

| | | |
|:---|:---|:---|
| **April 2020 issuance** | **December 31, 2020** | **Maturity at**<br> **November 13, 2021** |
| Expected life | 317 days | 0 days |
| Volatility | 100% | 100% |
| Risk free interest rate | 0.27% | 0.30% |
| Dividend yield | 0% | 0% |
| Share price | $0.41 | $0.18 |
| Fair value | $58373 | Nil |
| Change in derivative liability |  | $(58373) |

---

Accretion expense for the year ended December 31, 2021 was $nil compared to $51,522 for the six months ended December 31, 2020 and $155,001 for the year ended June 30, 2020 based on an effective interest rate of 16% after the loan extension.

Interest expense for the year ended December 31, 2021 was $nil compared to $5,600 for the six months ended December 31, 2020 and $22,700 for the year ended June 30, 2020.

---

| | |
|:---|:---|
|  | **Amount** |
| Balance, June 30, 2019 | $- |
| Proceeds on issuance | 300000 |
| Warrant valuation | (206523) |
| Accretion expense | 155001 |
| Balance, June 30, 2020 | $248478 |
| Accretion expense | 51522 |
| Debt settlement | (189342) |
| Repayment | (110658) |
| Balance, December 31, 2020 | $- |

---

(ii) On December 31, 2019, the Company issued a promissory note in the amount of $82,367 (C$107,000). The note bore no interest and was due on demand. This promissory note was repaid during the year ended June 30, 2020.

(iii) On January 29, 2020, the Company issued a promissory note in the amount of $75,727 (C$100,000). The note bore no interest and was due on demand. This promissory note was repaid during the year ended June 30, 2020.

(iv) On May 12, 2020, the Company issued a promissory note in the amount of $362,650 (C$500,000), net of $89,190 of debt issue costs. The note bore no interest and was due on demand after 90 days after the issue date. This promissory note was repaid during the six months ended December 31, 2020. Accretion expense for the six months ended December 31, 2020 was $47,737 (year ended June 30, 2020 - $41,453) based on effective interest rate of 7%.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

(v) On May 12, 2020, the Company issued a promissory note in the amount of $141,704 (C$200,000), net of $35,676 of debt issue costs. The note bore no interest and was due on demand after 90 days after the issue date. During the six months ended December 31, 2020, the Company settled the promissory note in full by issuing 714,285 common shares (see note 10). As a result, the Company recorded a loss on debt settlement of $291,203 on the consolidated statements of loss and comprehensive loss. Accretion expense for the six months ended December 31, 2020 was $19,129 (year ended June 30, 2020 - $16,547) based on an effective interest rate of 8%.

(vi) On June 30, 2020, the Company issued a promissory note in the amount of $75,000, net of $15,000 of debt issue costs. The note bore no interest and was due on demand. This promissory note was repaid in full during the six months ended December 31, 2020. Financing cost for the six months ended December 31, 2020 was $nil (year ended June 30, 2020 - $15,000).

(vii) On June 30, 2020, the Company issued a promissory note in the amount of $75,000 to a director of the Company. The note bore no interest and was due on demand. This promissory note was repaid in full during the six months ended December 31, 2020. Financing cost for the six months ended December 31, 2020 was $nil (year ended June 30, 2020 - $15,000).

(viii) On July 13, 2020, the Company issued a promissory note in the amount of $1,200,000, net of $360,000 debt issue costs. The note bore no interest and was due on August 31, 2020. This promissory note was repaid in full during the six months ended December 31, 2020. Financing cost for the six months ended December 31, 2020 was $360,000 (year ended June 30, 2020 - $nil).

(viii) On September 22, 2021, the Company issued a non-convertible promissory note in the amount of $2,500,000 bearing interest of 15% per annum and payable at maturity. The promissory note was scheduled to mature on the earlier of March 15, 2022; however, the note holder agreed to accept $500,000 payment by April 15, 2022, and the remaining principal and interest was deferred to June 20, 2022. See Note 16 Subsequent Events concerning a financing anticipated to close on March 31, 2022. The Company purchased a land parcel for approximately $200,000 subsequent to December 31, 2021, which may be used as security for the promissory note. Interest expense for the year ended December 31, 2021 was $102,740, which is reflected in Interest payable on the Company's balance sheet at December 31, 2021.

**$50,000,000** **Project Finance Package**

On December 20, 2021, the Company executed a non-binding term sheet with Sprott Resource Streaming and Royalty ("SRSR") and other investors outlining a $50,000,000 project finance package that the Company expects to fulfill the majority of its funding requirements to restart the mine and reach commercial production in mid-2023. The package consists of an $8,000,000 Royalty Convertible Debenture, a $5,000,000 Convertible Debenture, and a multi-metals stream of up to $37,000,000 (collectively, the "Stream").

Subject to settlement of definitive documentation with SRSR, the $8,000,000 was advanced under the Royalty Convertible Debenture in January 2022. These proceeds funded the purchase of the Bunker Hill Mine and near-term working capital requirements, including a $2,000,000 payment to the EPA in January 2022. The Royalty Convertible Debenture will initially bear interest at an annual rate of 9.0%, payable in cash or shares at the Company's option, until such time that SRSR elects to convert it into a Royalty, with such conversion option expiring at the earlier of advancement of the Stream or 18 months. In the event of conversion, the Royalty Convertible Debenture will cease to exist and the Company will grant a Royalty for 1.85% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company's 2021 ground geophysical survey. A 1.35% rate will apply to claims outside of these areas. The Royalty Convertible Debenture will initially be secured by a share pledge of the Company's operating subsidiary, until such time that a full security package is put in place. In the event of non-conversion, the principal of the Royalty Convertible Debenture will be repayable in cash.

Subject to settlement of definitive documentation with SRSR and other investors, the $5,000,000 was increased to $6,000,000, and was advanced under the Convertible Debenture, also in January 2022. These proceeds will fund capital expenditures and working capital requirements in Q1 2022. The Convertible Debenture will bear interest at an annual rate of 7.5%, payable in cash or shares at the Company's option, and a maturity of 18 months from the closing of the Royalty Convertible Debenture. Until the closing of the Stream, the Convertible Debenture is convertible into shares of the Company at a share price of CAD 0.30 per share. Alternatively, SRSR may elect to retire the Convertible Debenture with the cash proceeds of the Stream. The Company may elect to re-pay the Convertible Debenture early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.

Subject to SRSR internal approvals, further technical and other diligence (including confirmation of full project funding by an independent engineer appointed by SRSR), and satisfactory definitive documentation, the Company expects to close the Stream concurrent with a formal construction decision being made by Q2 2022. A minimum of $27,000,000 and a maximum of $37,000,000 (the "Stream Amount") will be made available under the Stream, at the Company's option, once the conditions for availability of the Stream have been satisfied. Assuming the maximum funding of $37,000,000 is drawn, the Stream would apply to 10% of payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 55 million pounds of zinc, 35 million pounds of lead, and 1 million ounces of silver. Thereafter, the Stream would apply to 2% of payable metals sold. If the Company elects to draw less than $37,000,000 under the Stream, the percentage and quantities of payable metals streamed will adjust pro-rata. The delivery price of streamed metals will be 20% of the applicable spot price.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

The Company may buy back 50% of the Stream Amount at a 1.40x multiple of the Stream Amount between the second and third anniversary of the date of funding, and at a 1.65x multiple of the Stream Amount between the third and fourth anniversary of the date of funding. The Company will be permitted to incur additional indebtedness of $15,000,000 and a cost over-run facility of $13,000,000 from other financing counterparties.

The Royalty Convertible Debenture and Convertible Debenture closed subsequent to the end of the year. See Note 16 Subsequent Events.

In support of plans to rapidly restart the Mine, the Company worked systematically through 2020 and 2021 to delineate mineral resources and conduct various technical studies. Executing this strategy may require securing additional financing, which may include additional indebtedness of $15,000,000 and a cost over-run facility of $13,000,000.

**9. Lease liability**

The Company has an operating lease for office space that expires in 2022. Below is a summary of the Company's lease liability as of December 31, 2021:

---

| | |
|:---|:---|
|  | **Office lease** |
| Balance, December 31, 2019 | $274981 |
| Addition |  |
| Interest expense | 22156 |
| Lease payments | (123098) |
| Foreign exchange gain | 2568 |
| Balance, December 31, 2020 | 176607 |
| Addition |  |
| Interest expense | 12696 |
| Lease payments | (129191) |
| Foreign exchange loss | 2165 |
| Balance, December 31, 2021 | 62277 |

---

In addition to the minimum monthly lease payments of C$13,504, the Company is required to make additional monthly payments amounting to C$12,505 for certain variable costs. The schedule below represents the Company's obligations under the lease agreement in Canadian dollars.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Less than 1 year** | **1-2 years** | **2-3 years** | **Total** |
| Base rent | $81025 | $- | $- | $81025 |
| Additional rent | 75030 | - | - | 75030 |
|  | $156055 | $- | $- | $156055 |

---

The monthly rental expenses are offset by rental income obtained through a series of short-term subleases held by the Company.

**10. Capital stock, warrants and stock options**

**Authorized**

The total authorized capital is as follows:

● 750,000,000 common shares with a par value of $0.000001 per common share; and

● 10,000,000 preferred shares with a par value of $0.000001 per preferred share

On July 19, 2019, the Company amended its articles of incorporation to change the total authorized capital and the par values, which have been retrospectively applied in these consolidated financial statements.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**Issued and outstanding**

On February 26, 2020, the Company closed a non-brokered private placement, issuing 2,991,073 common shares of the Company at C$0.56 per common share for gross proceeds of C$1,675,000 ($1,256,854) and incurring financing costs of $95,763, and issuing 239,284 broker warrants. Each broker warrant entitles the holder to acquire one common share at a price of C$0.70 per common share for a period of two years. The Company also issued 696,428 common shares for $300,000 which was applied to reduce the principal amount owing under the convertible loan facility (see note 7).

On May 12, 2020, the Company closed a non-brokered private placement, issuing 107,143 common shares of the Company at C$0.56 per common share for gross proceeds of C$60,000 ($44,671).

On August 14, 2020, the Company closed the first tranche of a brokered private placement of units of the Company (the "August 2020 Offering"), issuing 35,212,142 units of the Company ("August 2020 Units") at C$0.35 per August 2020 Unit for gross proceeds of $9,301,321 (C$12,324,250). Each August 2020 Unit consisted of one common share of the Company and one common share purchase warrant of the Company (each, an "August 2020 Warrant"), which entitles the holder to acquire a common share of the Company at C$0.50 per common share until August 31, 2023. In connection with the first tranche of the August 2020 Offering, the Company incurred share issuance costs of $709,488 (C$849,978) and issued 2,112,729 compensation options (the "August 2020 Compensation Options"). Each August 2020 Compensation Option is exercisable into one August 2020 Unit at an exercise price of C$0.35 until August 31, 2023.

On August 25, 2020, the Company closed the second tranche of the August 2020 Offering, issuing 20,866,292 August 2020 Units at C$0.35 per August 2020 Unit for gross proceeds of $5,510,736 (C$7,303,202). In connection with the second tranche of the August 2020 Offering, the Company incurred share issuance costs of $237,668 (C$314,512) and issued 1,127,178 August 2020 Compensation Options.

In the August 2020 Offering, the fair value of warrants, which are treated as a liability and fair value accounted for, were greater than gross proceeds. As a result, a loss of $940,290 has been recognized in the consolidated statements of loss and $947,156 of total share issue costs were also expensed.

The Company also issued 2,205,714 August 2020 Units to settle $177,353 of accounts payable, $55,676 of accrued liabilities, $28,300 of interest payable, and $344,185 of promissory notes payable at a deemed price of $0.67 based on the fair value of the units issued. As a result, the Company recorded a loss on debt settlement of $899,237.

On October 9, 2020, the Company issued 5,572,980 common shares at a deemed price of C$0.49 based on the fair value of the common shares issued to settle $1,600,000 of convertible loan payable and $500,000 of interest payable. As a result, the Company recorded a gain on debt settlement of $23,376.

In February 2021, the Company closed a non-brokered private placement of units of the Company (the "February 2021 Offering"), issuing 19,576,360 units of the Company ("February 2021 Units") at C$0.40 per February 2021 Unit for gross proceeds of $6,168,069 (C$7,830,544. Each February 2021 Unit consisted of one common share of the Company and one common share purchase warrant of the Company (each, "February 2021 Warrant"), which entitles the holder to acquire a common share of the Company at C$0.60 per common share for a period of five years. In connection with the February 2021 Offering, the Company incurred share issuance costs of $154,630 and issued 351,000 compensation options (the "February 2021 Compensation Options"). Each February 2021 Compensation Option is exercisable into one February 2021 Unit at an exercise price of C$0.40 for a period of three years.

The Company also issued 417,720 February 2021 Units to settle $132,000 of accrued liabilities at a deemed price of $0.45 based on the fair value of the units issued. As a result, the Company recorded a loss on debt settlement of $56,146.

For each financing, the Company has accounted for the warrants in accordance with ASC Topic 815. The warrants are considered derivative instruments as they were issued in a currency other than the Company's functional currency of the U.S. dollar. The estimated fair value of warrants accounted for as liabilities was determined on the date of issue and marks to market at each financial reporting period. The change in fair value of the warrant is recorded in the consolidated statement of operations and comprehensive loss as a gain or loss and is estimated using the Binomial model.

The fair value of the warrant liabilities related to the various tranches of warrants issued during the period were estimated using the Binomial model to determine the fair value using the following assumptions on the day of issuance and as at December 31, 2021:

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

---

| | | |
|:---|:---|:---|
| **February 2021 issuance** | **February 9 and 16<br> 2021** | **December 31, 2021** |
| Expected life | 1,826 days | 1,501 days |
| Volatility | 100% | 100% |
| Risk free interest rate | 0.49% | 1.25% |
| Dividend yield | 0% | 0% |
| Share price | $0.27 and $0.29 | $0.37 |
| Fair value | $3813103 | $3483745 |
| Change in derivative liability |  | $(329358) |

---

The warrant liabilities as a result of the August 2018, November 2018, June 2019, August 2019, and August 2020 private placements were revalued as at December 31, 2021 and December 31, 2020 using the Binomial model and the following assumptions:

---

| | | |
|:---|:---|:---|
| **August 2020 issuance** | **December 31, 2020** | **December 31, 2021** |
| Expected life | 973 days | 608 days |
| Volatility | 100% | 100% |
| Risk free interest rate | 1.31% | 0.95% |
| Dividend yield | 0% | 0% |
| Share price | $0.41 | $0.37 |
| Fair value | $14493215 | $6790163 |
| Change in derivative liability |  | $(7703052) |

---

---

| | | |
|:---|:---|:---|
| **August 2018 issuance** | **December 31, 2020** | **December 31, 2021** |
| Expected life | 221 days | expired |
| Volatility | 100% | Nil% |
| Risk free interest rate | 1.23% | Nil% |
| Dividend yield | 0% | Nil% |
| Share price | $0.41 | $Nil |
| Fair value | $0 | $Nil |
| Change in derivative liability |  | $Nil |

---

---

| | | |
|:---|:---|:---|
| **November 2018 issuance** | **December 31, 2020** | **December 31, 2021** |
| Expected life | 332 days | expired |
| Volatility | 100% | Nil% |
| Risk free interest rate | 1.09% | Nil% |
| Dividend yield | 0% | Nil% |
| Share price | $0.41 | $Nil |
| Fair value | $52540 | $Nil |
| Change in derivative liability |  | $(52540) |

---

---

| | | |
|:---|:---|:---|
| **June 2019 issuance (i)** | **December 31, 2020** | **December 31, 2021** |
| Expected life | 1,826 days | 1,461 days |
| Volatility | 100% | 100% |
| Risk free interest rate | 0.85% | 1.02% |
| Dividend yield | 0% | 0% |
| Share price | $0.41 | $0.37 |
| Fair value | $3438839 | $2067493 |
| Change in derivative liability |  | $(1371346) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) During the six
months ended December 31, 2020, the Company amended the exercise price to C$0.59 per common share and extended the expiry date to December
31, 2025 for 11,660,000 warrants.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

---

| | | |
|:---|:---|:---|
| **August 2019 issuance (ii)** | **December 31, 2020** | **December 31, 2021** |
| Expected life | 213-1,826 days | 1,461 days |
| Volatility | 100% | 100% |
| Risk free interest rate | 0.81% | 1.02% |
| Dividend yield | 0% | 0% |
| Share price | $0.41 | $0.37 |
| Fair value | $5922270 | $3177485 |
| Change in derivative liability |  | $(2744785) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the six
months ended December 31, 2020, the Company amended the exercise price to C$0.59 per common share and extended the expiry date to December
31, 2025 for 17,920,000 warrants. The terms of the remaining 2,752,900 warrants remain unchanged.

**Warrants**

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Number of**<br>**warrants** | **Weighted**<br>**average**<br>**exercise price**<br>**(C$)** | **Weighted**<br>**average**<br>**grant date**<br>**value ($)** |
| Balance, June 30, 2019 | 13046484 | $0.88 | $0.28 |
| Issued | 27360284 | 0.27 | 0.03 |
| Expired | (229464) | 8.50 | 3.54 |
| Exercised (i) | (2332900) | 0.25 | 0.02 |
| Balance, June 30, 2020 | 37844404 | $0.43 | $0.10 |
| Issued | 58284148 | 0.50 | 0.27 |
| Expired | (350746) | 14.84 | 5.97 |
| Balance, December 31, 2020 | 95777806 | $0.54 | $0.18 |
| Issued | 19994080 | 0.60 | 0.19 |
| Expired | (4359174) | 0.59 | 0.19 |
| Balance, December 31, 2021 | 111412712 | $0.54 | $0.18 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) During the year
ended June 30, 2020, 2,332,900 warrants were exercised at C$0.25 per warrant for gross proceeds of C$583,225 ($417,006). In conjunction
with the exercise of warrants, the Company recognized a change in derivative liability of $871,710 .

&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the six
months ended December 31, 2020, the Company amended the exercise price to C$0.59 per share and extended the expiry date to December 31,
2025 for 3,315,200 finder's warrants. As a result, the Company recognized stock-based compensation of $210,839 , which is included
in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

At December 31, 2021, the following warrants were outstanding:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Expiry date** |<br>**Exercise**<br>**price (C$)** |<br>**Number of**<br>**warrants** | **Number of**<br>**warrants**<br>**exercisable** |
| February 26, 2022 | 0.70 | 239284 | 239284 |
| August 31, 2023 | 0.50 | 58284148 | 58284148 |
| December 31, 2025 | 0.59 | 32895200 | 32895200 |
| February 9, 2026 | 0.60 | 17112500 | 17112500 |
| February 16, 2026 | 0.60 | 2881580 | 2881580 |
|  |  | 111412712 | 111412712 |

---

During the year ended December 31, 2021, 160,408 August 2018 warrants expired, 2,752,900 August 2019 warrants expired, 645,866 November 2018 warrants expired, 400,000 November 2019 warrants expired, and 400,000 April 2020 loan extension warrants expired.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**Broker options**

At December 31, 2021, the following broker options were outstanding:

---

| | | |
|:---|:---|:---|
|  |<br>**Number of**<br>**broker**<br>**options** | **Weighted**<br>**average**<br>**exercise price**<br>**(C$)** |
| Balance, June 30, 2020 |  | $- |
| Issued - August 2020 Compensation Options | 3239907 | 0.35 |
| Balance, December 31, 2020 | 3239907 | $0.35 |
| Issued – February 2021 Compensation Options | 351000 | 0.40 |
| Balance, December 31, 2021 | 3590907 | 0.35 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) The grant date
fair value of the August 2020 and February 2021 Compensation Options were estimated at $521,993 and $68,078 , respectively, using the
Black-Scholes valuation model with the following underlying assumptions:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Grant Date** | **Risk free<br> interest rate** | **Dividend yield** | **Volatility** | **Stock price** | **Weighted<br> average life** |
| August 2020 | 0.31% | 0% | 100% | C$0.35 | 3 years |
| February 2021 | 0.26% | 0% | 100% | C$0.40 | 3 years |

---

Schedule of Warrants Outstanding Broker Option Exercise Prices

---

| | | | |
|:---|:---|:---|:---|
| <br>**Expiry date** | **Exercise**<br>**price (C$)** | **Number of**<br>**broker options** |<br>**Fair value ($)** |
| August 31, 2023 <sup>(i)</sup> | $0.35 | 3239907 | $521993 |
| February 16, 2024 <sup>(ii)</sup> | $0.40 | 351000 | $68078 |
|  |  | 3590907 | $590071 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) Exercisable into
one August 2020 Unit

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Exercisable into
one February 2021 Unit

**Stock options**

The following table summarizes the stock option activity during the year ended December 31, 2021, the six months ended December 31, 2020 and the year ended June 30, 2020:

---

| | | |
|:---|:---|:---|
|  |<br>**Number of**<br>**stock options** | **Weighted**<br>**average**<br>**exercise price**<br>**(C$)** |
| Balance, June 30, 2019 | 287100 | $7.50 |
| Granted (i)(ii) | 7532659 | 0.56 |
| Forfeited | (239600) | 9.78 |
| Balance, June 30, 2020 | 7580159 | $0.62 |
| Granted (iii)(iv) | 435000 | 0.55 |
| Balance, December 31, 2020 | 8015159 | $0.62 |
| Granted (v) | 1037977 | 0.34 |
| Balance, December 31, 2021 | 9053136 | $0.58 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) On October 24,
2019, 1,575,000 stock options were issued to directors and officers of the Company. These options have a 5 -year life and are exercisable
at C$0.60 per share. The grant date fair value of the stock options was estimated at $435,069 . The vesting of these options resulted
in stock-based compensation of $50,909 for the year ended December 31, 2021, $74,949 for the six months ended December 31, 2020 and $309,211 for the year ended June 30, 2020, which is included in operation and administration expenses on the consolidated statements of loss and
comprehensive loss.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;(ii) On April 20, 2020, 5,957,659 stock options were issued to certain directors of the Company. Each stock option entitles the holder to acquire one common
share of the Company at an exercise price of C$0.55 . The stock options vest in one fourth increments upon each anniversary of the grant
date and expire in 5 years. The grant date fair value of the stock options was estimated at $1,536,764 . The vesting of these options
results in stock-based compensation of $531,925 for the year ended December 31, 2021, $403,456 for the six months ended December 31,
2020 and $162,855 for the year ended June 30, 2020, which is included in operation and administration expenses on the consolidated statements
of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) On September 30,
2020, 200,000 stock options were issued to a consultant. Each stock option entitles the holder to acquire one common share of the Company
at an exercise price of C$0.60 . The stock options vest 50 % at 6 months and 50 % at 12 months from the grant date and expire in 3 years.
The grant date fair value of the options was estimated at $52,909 . The vesting of these options resulted in stock-based compensation
of $32,651 for the year ended December 31, 2021, $20,259 for the six months ended December 31, 2020, and $ nil for the year ended June
30, 2020, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) On October 30,
2020, 235,000 stock options were issued to a former director. Each stock option entitles the holder to acquire one common share of the
Company at an exercise price of C$0.50 . The stock options vested immediately and expire on December 31, 2022 . The grant date fair value
of the options was estimated at $46,277 . The vesting of these options resulted in stock-based compensation of $46,277 for the six months
ended December 31, 2020, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive
loss.

&nbsp;&nbsp;&nbsp;&nbsp;(v) On
 February 19, 2021, 1,037,977 stock
 options were issued to an officer of the Company, of which 273,271 stock
 options vested immediately and the balance of 764,706 stock
 options vested on December 31, 2021. These options have a 5 -year
 life and are exercisable at C$0.335 per
 common share. The grant date fair value of the options was estimated at $204,213 .
 The vesting of these options resulted in stock-based compensation of $204,213 for
 the year ended December 31, 2021, which is included in operation and administration expenses
 on the consolidated statements of income (loss) and comprehensive income (loss).

The fair value of these stock options was determined on the date of grant using the Black-Scholes valuation model, and using the following underlying assumptions:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Risk free interest rate | Dividend yield | Volatility | Stock price | Weighted<br> average life |
| (i) | 1.54% | 0% | 100% | C$0.50 | 5 years |
| (ii) | 0.44% | 0% | 100% | C$0.50 | 5 years |
| (iii) | 0.25% | 0% | 100% | C$0.58 | 3 years |
| (iv) | 0.26% | 0% | 100% | C$0.49 | 2.2 years |
| (v) | 0.64% | 0% | 100% | C$0.34 | 5 years |

---

The following table reflects the actual stock options issued and outstanding as of December 31, 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|<br>**Exercise**<br>**price (C$)** | **Weighted average**<br>**remaining**<br>**contractual**<br>**life (years)** |<br>**Number of**<br>**options**<br>**outstanding** | **Number of**<br>**options**<br>**vested**<br>**(exercisable)** |<br>**Grant date**<br>**fair value ($)** |
| $10.00 | 0.00 | 47500 | 47500 | $258013 |
| 0.50 | 0.03 | 235000 | 235000 | 46277 |
| 0.60 | 0.04 | 200000 | 200000 | 52909 |
| 0.60 | 0.49 | 1575000 | 1575000 | 435069 |
| 0.55 | 2.17 | 5957659 | 1489415 | 1536764 |
| 0.335 | 0.47 | 1037977 | 1037977 | 204213 |
|  |  | 9053136 | 4584892 | $2533245 |

---

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**11. Restricted share units**

Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit ("RSU") Plan to grant RSUs to its officers, directors, key employees and consultants.

The following table summarizes the RSU activity during the year ended December 31, 2021, the six months ended December 31, 2020, and the year ended June 30, 2020:

Schedule of Restricted Share Units

---

| | | |
|:---|:---|:---|
|  |<br><br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**grant date**<br>**fair value**<br>**per share**<br>**(C$)** |
| Unvested as at June 30, 2019 |  | $- |
| Granted (i)(ii) | 600000 | 0.40 |
| Unvested as at June 30, 2020 | 600000 | $0.40 |
| Granted (iii)(iv) | 388990 | 0.39 |
| Unvested as at December 31, 2020 | 988990 | $0.39 |
| Granted | 1348434 | 0.38 |
| Vested | (1516299) | 0.41 |
| Forfeited | (245125) | 0.52 |
| Unvested as at December 31, 2021 | 576000 | $0.62 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) On April 14, 2020,
the Company granted 400,000 RSUs to a certain officer of the Company. The RSUs vest in one fourth increments upon each anniversary of
the grant date. The vesting of these RSUs resulted in stock-based compensation of $71,829 for the year ended December 31, 2021, $55,135 for the six months ended December 31, 2020, and $23,073 for the year ended June 30, which is included in operation and administration
expenses on the consolidated statements of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) On April 20, 2020,
the Company granted 200,000 RSUs to a certain director of the Company. The RSUs vest in one fourth increments upon each anniversary of
the grant date. The vesting of these RSUs resulted in stock-based compensation of $24,659 for the year ended December 31, 2021, $18,703 for the six months ended December 31, 2020, and $7,217 for the year ended June 30, 2020, which is included in operation and administration
expenses on the consolidated statements of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) On November 16,
2020, the Company granted 168,000 RSUs to certain directors of the Company. The RSUs vest in one fourth increments upon each anniversary
of the grant date. The vesting of these RSUs resulted in stock-based compensation of $30,510 for the year ended December 31, 2021, and
$3,998 for the six months ended December 31, 2020, which is included in operation and administration expenses on the consolidated statements
of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) On December 6,
2020, the Company granted 220,990 RSUs to a consultant of the Company. The RSUs vest in one sixth increments per month. The vesting of
these RSUs resulted in stock-based compensation of $58,740 for the year ended December 31, 2021, and $29,304 for the six months ended
December 31, 2020, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive
loss.

&nbsp;&nbsp;&nbsp;&nbsp;(v) On
 January 1, 2021, the Company granted 735,383 RSUs to a consultant of the Company. 245,128 RSUs vested immediately with the remaining RSUs vesting in one twelfth increments per month. During the year ended 2021, a total of 490,258 RSUs vested, and in July 2021, the consultant forfeited the remaining 245,125 unvested RSUs, resulting in a reversal of share-based compensation of $64,870 . The vesting of these RSUs resulted in stock-based
 compensation of $199,542 for the year ended December 31, 2021, which is included in operation and administration expenses on the consolidated statements of
 loss and comprehensive loss.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;(vi) On July 1, 2021,
the Company granted 17,823 RSUs to a consultant of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based
compensation of $4,026 for the year ended December 31, 2021, which is included in operation and administration expenses on the consolidated
statements of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;(vii) On August 5, 2021,
the Company granted 595,228 RSUs to consultants of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based
compensation of $100,022 for the year ended December 31, 2021, which is included in operation and administration expenses on the consolidated
statements of loss and comprehensive loss.

**12. Deferred share units**

Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit ("DSU") Plan to grant DSUs to its directors. The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time.

Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company's common share on the date of redemption in exchange for cash.

The following table summarizes the DSU activity during the years ended December 31, 2021 and 2020:

Schedule of Deferred Share Units

---

| | | |
|:---|:---|:---|
|  |<br><br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**grant date**<br>**fair value**<br>**per share**<br>**(C$)** |
| Unvested as at June 30, 2019 |  | $- |
| Granted (i) | 7500000 | 1.03 |
| Unvested as at June 30, 2020 and December 31, 2020 | 7500000 | $1.03 |
| Vested | (1875000) | 1.03 |
| Unvested as at December 31, 2021 | 5625000 | $1.03 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) On April 21, 2020, the Company granted 7,500,000 DSUs. The DSUs vest in one fourth increments
 upon each anniversary of the grant date and expire in 5 years. During the year ended December
 31, 2021, the Company recognized $421,284 stock-based compensation related to the DSUs (six
 months ended December 31, 2020 - $560,461 and the year ended June 30, 2020 - $549,664), which
 is included in operation and administration expenses on the consolidated statements of loss
 and comprehensive loss. The fair value at December 31, 2021 was $1,531,409

**13. Commitments and contingencies**

As stipulated by the agreements with Placer Mining as described in note 6, the Company is required to make a monthly payment of $60,000 for care and maintenance for the mine, up to the date of acquisition.

As stipulated in the agreement with the EPA and as described in Note 6, the Company is required to make two types of payments to the EPA, one for cost-recovery, and the other for water treatment. The EPA invoices the Company on an annual basis for the actual water treatment costs, which may exceed the recognized estimated costs significantly. When the Company receives the water treatment invoices, it records any liability for actual costs over and above any estimates made, and adjusts future estimates as required based on these actual invoices received. The Company is required to pay for the actual costs regardless of the periodic required estimated accruals and payments made each year. As at December 31, 2021, $16,417,208 payable to the EPA has been included in accounts payable and accrued liabilities (December 31, 2020 - $11,298,594 and June 30, 2021 – $7,915,235, respectively). An amended agreement has been signed to modify the payment amounts and terms to settle amounts outstanding under the original agreement.

The Company has entered into a lease agreement which expires in May 2022. Monthly rental expenses are approximately C$26,000 and are offset by rental income obtained through a series of short-term subleases held by the Company. See note 9.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

On or about June 14, 2021, a lawsuit was filed in the US District Court for the District of Idaho brought by a purported personal representative of the estate of a minority shareholder of Placer Mining. The named defendants include Placer Mining, certain of Placer Mining's shareholders, the Company, and certain of the Company's shareholders. The lawsuit alleges that Placer Mining entered into a series of transactions, including amendments to the Company's lease with Placer Mining, in breach of an agreement dated August 31, 2018, which allegedly restricted the sale of shares in Placer Mining by certain shareholders. On August 13, 2021, the Company filed a motion to dismiss the claim for lack of jurisdiction and standing. On September 3, 2021, the plaintiff responded to the motion to dismiss and agreed that Placer Mining should be dismissed for lack of jurisdiction. The Company, as well as other named defendants, filed replies in support of the motions to dismiss and argued that Placer Mining is an indispensable party and with dismissal of Placer Mining the lawsuit should be dismissed. The US District Court has not ruled on the motions to dismiss but the Company believes the motion to dismiss will be granted and the lawsuit dismissed.

On July 28, 2021, a lawsuit was filed in the US District Court for the District of Idaho brought by Crescent Mining, LLC ("Crescent"). The named defendants include Placer Mining, Robert Hopper Jr., and the Company. The lawsuit alleges that Placer Mining and Robert Hopper Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable with the other defendants for unspecified past and future costs associated with the presence of acid mine drainage ("AMD") in the Crescent Mine. The plaintiff has requested unspecified damages. On September 20, 2021, the Company filed a motion to dismiss Crescent's claims against it, contending that such claims are facially deficient. On March 2, 2022, Chief US District Court Judge, David C. Nye granted in part and denied in part the Company's motion to dismiss. The court granted the Company's motion to dismiss Crescent's Cost Recovery claim under CERCLA Section 107(a), Declaratory Judgment, Tortious Interference, Trespass, Nuisance and Negligence claims. These claims were dismissed without prejudice. The court demined the motion to dismiss filed by Placer Mining Corp. for Crescent's trespass, nuisance and negligence claims. If Crescent seeks to amend its complaint, it must do so within 30 days of the court's judgement on March 2, 2022. The Company believes Crescent Mining LLC's lawsuit against Placer Mining Corp. is without merit and intends to defend Placer Mining Corp. vigorously pursuant to the Company's indemnification of Placer Mining Corp in the Sale and Purchase agreement executed between the companies for Bunker Hill Mine on December 15, 2021.

The Company believes the claims in both lawsuits, as they relate to Bunker Hill, are without merit and intends to defend them vigorously.

**14. Income taxes**

As at December 31, 2021, December 31, 2020, and June 30, 2020, the Company had no accrued interest and penalties related to uncertain tax positions. The income tax provision differs from the amount of income tax determined by applying the U.S. federal tax rate of 21.0% (December 31, 2020 – 21.0%) to pretax loss from operations for the periods ended December 31, 2021 and December 31, 2020 and year ended June 30, 2020 due to the following:

**** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year**<br>**Ended**<br>**December 31,**<br>**2021** | **Six Months**<br>**Ended**<br>**December 31,**<br>**2020** | **Year**<br>**Ended**<br>**June 30,**<br>**2020** |
| Loss before income taxes | $6402277 | $2164454 | $31321791 |
| Expected income tax recovery | (1344478) | (454535) | (6577576) |
| Change in estimates in respect of prior periods | 837195 | - | - |
| Change in tax rate | 274477 | 181332 | - |
| Change in fair value of derivative liability | (2583095) | - | - |
| State and local taxes, net of federal benefit | (960296) | 17632 | (1576384) |
| Share issuance costs | - | 198903 | - |
| Accretion | - | 24862 | 81746 |
| Stock based compensation | - | 296448 | 219952 |
| Loss on loan extinguishment |  |  | 223798 |
| Other | 5033 | 2006 | 980 |
| Change in valuation allowance | 3771164 | (266647) | 7627485 |
| **Total** | $- | $- | $- |

---

Deferred tax assets and the valuation account are as follows:

Schedule of Deferred Tax Assets

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** | **June 30,**<br>**2020** |
| Deferred tax asset: |  |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carry forwards | $6724313 | $5547502 | $6148029 |
| &nbsp;&nbsp;&nbsp;Mineral interest purchase option | 10707362 | 7101619 | 5068605 |
| &nbsp;&nbsp;&nbsp;Other deferred tax assets | 454499 | 1453133 | 3600101 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (17886174) | (14115010) | (14832531) |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss | - | 12756 | 15796 |
| **Total** | $- | $- | $- |

---

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

**** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** | **June 30,**<br>**2020** |
| Deferred tax asset: |  |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $59955 | $16241 | $9910 |
| &nbsp;&nbsp;&nbsp;Lease liabilities |  |  | 56322 |
| Deferred tax liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Equipment | (18809) | (16241) | (9910) |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange gain | (41146) |  | - |
| &nbsp;&nbsp;&nbsp;Right of use assets and lease obligations | - | - | (56322) |
| **Net deferred tax asset** | $- | $- | $- |

---

The potential income tax benefit of these losses has been offset by a full valuation allowance.

As of December 31, 2021, December 31, 2020 and June 30, 2020, the Company has an unused net operating loss carryforward balance of $26,356,908, $21,310,259 and $19,775,710, respectively, that is available to offset future taxable income. The net operating loss carryforwards generated before 2018 expire between 2031 and 2037. The losses generated in 2018 and later tax years do not expire.

The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

The tax years that remain subject to examination by major taxing jurisdictions are those for the year ended December 31, 2021, period ended December 31, 2020 and years ended June 30, 2020, 2019, 2018, 2017, 2016, 2015, and 2014.

**15. Related party transactions**

(i) During the year ended December 31, 2021, John Ryan (Director and former CEO) billed $nil (six months ended December 31, 2020 - $13,500, year ended June 30, 2020 - $51,500, respectively) for consulting services to the Company.

(ii) During the year ended December 31, 2021, Wayne Parsons (Director and former CFO) billed $120,127 (six months ended December 31, 2020 - $71,390, year ended June 30, 2020 - $136,045, respectively) for consulting services to the Company.

(iii) During the year ended December 31, 2021, Hugh Aird (former Director) billed $nil (six months ended December 31, 2020 - $18,223, year ended June 30, 2020 - $9,774, respectively) for consulting services to the Company.

(iv) During the year ended December 31, 2021, Richard Williams (Director and Executive Chairman) billed $179,605 (six months ended December 31, 2020 - $78,201, year ended June 30, 2020 - $134,927, respectively) for consulting services to the Company. At December 31, 2021, $108,719 is owed to Mr. Williams (December 31, 2020 - $45,000 and June 30, 2020 - $121,161, respectively) with all amounts included in accounts payable and accrued liabilities.

During the six months ended December 31, 2020, the Company issued 214,286 August 2020 Units at $0.67 to settle $56,925 of debt owed to Mr. Williams.

On June 30, 2020, the Company issued a promissory note in the amount of $75,000, net of $15,000 debt issue costs, to Mr. Williams. The promissory note has been repaid in full. See Note 8(vii).

(v) During the year ended December 31, 2021, the Company incurred $250,000 in payroll expense for Sam Ash (President and CEO) (six months ended December 31, 2020 - $125,000, year ended June 30, 2020 - $60,000, respectively) for services to the Company. At December 31, 2021, $62,500 is payable and included in accrued liabilities.

**Bunker Hill Mining Corp.**

**Notes to Consolidated Financial Statements**

**Year Ended December 31, 2021, Six Months Ended December 31, 2020 and Year Ended June 30, 2020**

**(Expressed in United States Dollars)**

During the six months ended December 31, 2020, the Company issued 77,143 August 2020 Units at a deemed price of $0.67 to settle $20,000 of debt owed to Mr. Ash.

(vi) During the year ended December 31, 2021, Pam Saxton (Director) billed $37,669 (six months ended December 31, 2020 - $7,000, year ended June 30, 2020 - $nil) for consulting services to the Company.

(vii) During the year ended December 31, 2021, Cassandra Joseph (Director) billed $37,494 (six months ended December 31, 2020 - $11,290, year ended June 30, 2020 - $nil) for consulting services to the Company.

(viii) During the six months ended December 31, 2020, the Company issued 300,000 August 2020 Units at a deemed price of $0.67 to settle $77,696 (C$105,000) of debt owed to a shareholder of the Company.

(ix) During the year ended December 31, 2021, the Company incurred $276,315 in payroll expense for David Wiens (CFO) (six months ended December 31, 2021, $nil, year ended June 30, 2020 - $nil) for services to the Company. At December 31, 2021, $108,335 is payable, including reimbursable expenses, and included in accrued liabilities.

During the year ended December 31, 2021, 1,037,977 stock options were issued to Mr. Wiens, of which 273,271 stock options vested immediately and the balance of 764,706 stock options vested on December 31, 2021. These options have a 5-year life and are exercisable at C$0.335 per common share. The grant date fair value of the options was estimated at $204,213. The vesting of these options resulted in stock-based compensation of $204,213 for the year ended December 31, 2021.

Schedule of Related Party Transactions

**16. Subsequent events**

Following the approval of the transaction by Placer Mining Corp. shareholders and satisfaction of other closing conditions, the purchase of the Bunker Hill Mine closed on January 7, 2022. Concurrently, definitive documentation and all closing conditions were met for the $8,000,000 Royalty Convertible Debenture. The Royalty Convertible Debenture funds the purchase of the Bunker Hill Mine, a $2,000,000 payment to the EPA, and near-term working capital requirements.

The $8,000,000 Royalty Convertible Debenture will initially bear interest at an annual rate of 9.0% payable in cash or Common Shares at the Company's option, until such time that SRSR elects to convert to a royalty, with such conversion option expiring at the earlier of advancement of the Stream or 18 months. In the event of conversion, the Royalty Convertible Debenture will cease to exist and the Company will grant a royalty for 1.85% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company's 2021 ground geophysical survey. A 1.35% rate will apply to claims outside of these areas. The Royalty Convertible Debenture will initially be secured by a share pledge of the Company's operating subsidiary, Silver Valley, until such time that a full security package is put in place. In the event of non-conversion, the principal of the Royalty Convertible Debenture will be repayable in cash.

In January 2022, the Company also closed the $6,000,000 Convertible Debenture, which was increased from a previously-announced $5,000,000.The Convertible Debenture funds near-term working capital requirements, mine development, and the advancement of its Prefeasibility Study, including engineering studies for the demobilization and construction of the Pend Oreille Process Plant at Bunker Hill. The $6,000,000 Convertible Debenture will initially bear interest at an annual rate of 7.5%, payable in cash or shares at the Company's option, and a maturity of 18 months from the closing of the Royalty Convertible Debenture. Until the closing of the Stream, the Convertible Debenture is convertible into Common Shares at a price of C$0.30 per Common Share, subject to stock exchange approval. Alternatively, SRSR may elect to retire the Convertible Debenture with the cash proceeds from the Stream. The Company may elect to repay the Convertible Debenture early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.

On January 7, 2022, the Company closed the purchase of the Bunker Hill Mine. See Note 6 Mining Interests. Mine assets were purchased for $7,700,000, with $300,000 of previous lease payments and a deposit of $2,000,000 applied to the purchase, resulting in cash paid at closing of approximately $5,400,000. The EPA obligation of $19,000,000 was assumed by Bunker Hill as part of the acquisition. The restructuring of the EPA Settlement payment stream under the Amendment does not occur unless and until the Company puts the financial assurances in place. On March 22, 2022, the Company reported that in consultation with the EPA, it has committed to meet the approximately $2,900,000 and Financial Assurance obligations by 180 days from the effective date of the Amended Settlement Agreement.

On January 31, 2022, the Company entered into a non-binding Memorandum of Understanding ("MOU") with Teck Resources Limited ("Teck") for the purchase of a comprehensive package of equipment and parts inventory from its Pend Oreille site (the "Pend Oreille Process Plant") in eastern Washington State. The package comprises substantially all processing equipment of value located at the site, including complete crushing, grinding and flotation circuits The MOU outlines a purchase price under two scenarios, at Teck's option: an all-cash $2,750,000 purchase price, or a $3,000,000 purchase price comprised of cash and Bunker Hill shares. Each option includes a $500,000 non-refundable deposit, which has been paid by the Company subsequent to the end of the year. On March 7, 2022, the Company announced the signing of an Asset Purchase agreement for the purchase of the Pend Oreille Process Plant. Closing of the transaction remains subject to certain conditions, including payment of the remaining purchase price by May 15, 2022.

On March 3, 2022, the Company closed the purchase of a 225-acre surface land parcel for a cash payment of approximately $200,000.

On March 9, 2022, the Company entered into an agreement with a syndicate of agents led by Echelon Wealth Partners Inc. (collectively, the "Agents"), which have agreed to act as agents for and on behalf of the Company, on a commercially reasonable "best efforts" agency basis, without underwriter liability, in connection with a proposed private placement (the "Offering") of up to C$15,000,000 of special warrants of the Company (the "Special Warrants") which will entitle the holders to receive up to 50,000,000 units of the Company at a price of C$0.30 (the "Issue Price") per Special Warrant, subject to adjustment in certain events.

Each Special Warrant shall be exercisable, for no additional consideration and with no further action on the part of the holder thereof, into one unit (each, a "Unit") of the Company, subject to adjustment described below, on the earlier of: (i) the third business day after the date upon which both (A) a receipt for a (final) prospectus (the "Qualification Prospectus") qualifying the distribution of the Units issuable upon exercise of the Special Warrants has been issued by the applicable securities regulatory authorities in the Canadian jurisdictions in which purchasers of the Special Warrants are resident (the "Canadian Jurisdictions"), and (B) the registration statement (the "Registration Statement") of the Company filed with the Securities and Exchange Commission (the "SEC") registering the Units issuable upon exercise of the Special Warrants has been declared effective by the SEC; and (ii) the date that is six months following the Closing Date, which is expected to close on March 31, 2022.

Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share for C$0.37 for a period of 36 months following the Closing Date. The Warrants shall also be exercisable on a cashless basis in the event the Registration Statement has not been made effective by the SEC prior to the date of exercise. In the event that a receipt for the Qualification Prospectus has not been obtained and the Registration Statement has not been deemed effective on or before 5:00 p.m. (EST) on the date that is 60 days following the Closing Date, each unexercised Special Warrant will thereafter entitle the holder thereof to receive, upon the exercise thereof, at no additional cost, 1.1 Units (instead of one Unit).

The Company has also granted to the Agents an option (the "Agents' Option") which shall allow the Agents to sell up to an additional 15.0% of the Special Warrants sold pursuant to the Offering at the Issue Price. The Agent's Option may be exercised in whole or in part as determined by the Agents upon written notice to the Company at any time up to 48 hours prior to the Closing Date. In consideration for their services, subject to the terms of the agreement with the Agents and adjustments in certain circumstances, the Agents will receive a cash commission equal to 6.0% of the gross proceeds of the Offering (including the Agents' Option), and shall be issued that number of compensation options (the "Compensation Options") as is equal to 6.0% of the number of Special Warrants sold pursuant to the Offering (including the Agents' Option). Each Compensation Option shall be exercisable to acquire one Unit at the Issue Price for a period of 24 months from the closing date of the Offering, subject to adjustment in certain events.

**Bunker Hill Mining Corp.**

**Condensed Interim Consolidated Balance Sheets**

**(Expressed in United States Dollars)**

**Unaudited**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $103833 | $486063 |
| &nbsp;&nbsp;&nbsp;Restricted Cash (note 6) | 9476000 |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable and prepaid expenses (note 6) | 1208109 | 413443 |
| &nbsp;&nbsp;&nbsp;Short-term deposit (note 3) | 1000000 | 68939 |
| &nbsp;&nbsp;&nbsp;Prepaid mine deposit and acquisition costs (note 5) |  | 2260463 |
| &nbsp;&nbsp;&nbsp;Prepaid finance costs | - | 393640 |
| **Total current assets** | 11787942 | 3622548 |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Spare parts inventory | 341004 |  |
| &nbsp;&nbsp;&nbsp;Equipment (note 3) | 593588 | 396894 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets (note 4) |  | 52353 |
| &nbsp;&nbsp;&nbsp;Bunker Hill Mine and mining interests (note 5) | 14805360 | 1 |
| &nbsp;&nbsp;&nbsp;Process plant (note 3) | 6058694 | - |
| **Total assets** | $33586588 | $4071796 |
| **EQUITY AND LIABILITIES** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $2877593 | $1312062 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 1694461 | 869581 |
| &nbsp;&nbsp;&nbsp;EPA water treatment payable (note 6) | 3847141 | 5110706 |
| &nbsp;&nbsp;&nbsp;Interest payable (notes 6 and 7) | 1156195 | 409242 |
| &nbsp;&nbsp;&nbsp;DSU liability (note 12) | 363648 | 1531409 |
| &nbsp;&nbsp;&nbsp;Promissory notes payable (note 7) | 1500000 | 2500000 |
| &nbsp;&nbsp;&nbsp;EPA cost recovery payable - short-term (note 6) |  | 11000000 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability (note 8) | - | 62277 |
| **Total current liabilities** | 11439038 | 22795277 |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Series 1 convertible debenture (note 7) | 4892435 |  |
| &nbsp;&nbsp;&nbsp;Series 2 convertible debenture (note 7) | 12710097 |  |
| &nbsp;&nbsp;&nbsp;Royalty convertible debenture (note 7) | 7359776 |  |
| &nbsp;&nbsp;&nbsp;EPA cost recovery liability - long-term, net of discount (note 6) | 7420024 |  |
| &nbsp;&nbsp;&nbsp;Derivative warrant liability (note 9) | 4500387 | 15518887 |
| **Total liabilities** | 48321757 | 38314164 |
| **Shareholders' Deficiency** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred shares, $0.000001 par value, 10,000,000 preferred shares authorized; Nil preferred shares issued and outstanding (note 9) |  |  |
| &nbsp;&nbsp;&nbsp;Common shares, $0.000001 par value, 1,500,000,000 common shares authorized; 219,649,187 and 164,435,442 common shares issued and outstanding, respectively (note 9) | 219 | 164 |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital (note 9) | 43894878 | 38248618 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (note 7) | 996636 |  |
| &nbsp;&nbsp;&nbsp;Deficit accumulated during the exploration stage | (59626902) | (72491150) |
| **Total shareholders' deficiency** | (14735169) | (34242368) |
| **Total shareholders' deficiency and liabilities** | $33586588 | $4071796 |

---

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements,

**Bunker Hill Mining Corp.**

**Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)**

**(Expressed in United States Dollars)**

**Unaudited**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operation and administration | $150910 | $221451 | $587514 | $1506859 |
| &nbsp;&nbsp;&nbsp;Exploration |  | 1465157 |  | 8677194 |
| &nbsp;&nbsp;&nbsp;Mine preparation | 2533101 |  | 6861403 |  |
| &nbsp;&nbsp;&nbsp;Legal and accounting | 210960 | 335431 | 975014 | 872647 |
| &nbsp;&nbsp;&nbsp;Consulting | 929977 | 442906 | 4867553 | 1327774 |
| **Loss from operations** | (3824948) | (2464945) | (13291484) | (12384474) |
| **Other income or gain (expense or loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in derivative liability (note 9) | 7315161 | 6460513 | 18538380 | 22172679 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on foreign exchange | (12453) | (26719) | (233777) | 119655 |
| &nbsp;&nbsp;&nbsp;Gain on fair value of convertible debentures | 1301069 |  | 3041056 |  |
| &nbsp;&nbsp;&nbsp;Gain on EPA debt extinguishment (note 6) |  |  | 8614103 |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (1026233) | (8219) | (2143840) | (8219) |
| &nbsp;&nbsp;&nbsp;Debenture finance costs | (64054) |  | (1230539) |  |
| &nbsp;&nbsp;&nbsp;Finance costs |  |  | (455653) |  |
| &nbsp;&nbsp;&nbsp;Other income | 1811 |  | 26002 |  |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement | - | - | - | (56146) |
| **Net income for the period** | $3690353 | $3960630 | $12864248 | $9843495 |
| **Other comprehensive income, net of tax:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gain on change in FV on own credit risk | 625050 | - | 996636 | - |
| **Other comprehensive income** | 625050 | - | 996636 | - |
| **Comprehensive income** | $4315403 | $3960630 | $13860884 | $9843495 |
| Net income per common share – basic | $0.02 | $0.02 | $0.07 | $0.06 |
| Net income per common share – fully diluted | $0.01 | $0.02 | $0.05 | $0.06 |
| Weighted average common shares – basic | 219466235 | 164179999 | 198364188 | 160690371 |
| Weighted average common shares – fully diluted | 318204510 | 164329999 | 250681393 | 160840371 |

---

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

**Bunker Hill Mining Corp.**

**Condensed Interim Consolidated Statements of Cash Flows**

**(Expressed in United States Dollars)**

**Unaudited**

---

| | | |
|:---|:---|:---|
|  | **Nine Months**<br>**Ended**<br>**September 30,**<br>**2022** | **Nine Months**<br>**Ended**<br>**September 30,**<br>**2021** |
| **Operating activities** |  |  |
| Net income (loss) for the period | $12864248 | $9843495 |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | (300475) | 793357 |
| &nbsp;&nbsp;&nbsp;Depreciation expense | 172259 | 178744 |
| &nbsp;&nbsp;&nbsp;Change in derivative liability | (18538380) | (22172679) |
| &nbsp;&nbsp;&nbsp;Units issued for services | 1060858 |  |
| &nbsp;&nbsp;&nbsp;Imputed interest expense on lease liability | 1834 | 10632 |
| &nbsp;&nbsp;&nbsp;Interest expense | 2143840 | 8219 |
| &nbsp;&nbsp;&nbsp;Finance costs | 264435 |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss (gain) | 233059 |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss (gain) on re-translation of lease (Note 8) | 718 | 1434 |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement |  | 56146 |
| &nbsp;&nbsp;&nbsp;Amortization of EPA discount | 631701 |  |
| &nbsp;&nbsp;&nbsp;Gain on fair value of convertible debt derivatives | (3041056) |  |
| &nbsp;&nbsp;&nbsp;Gain on EPA debt extinguishment | (8614103) |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | (9476000) |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (81618) | (13632) |
| &nbsp;&nbsp;&nbsp;Deposit on plant demobilization | (1000000) |  |
| &nbsp;&nbsp;&nbsp;Prepaid finance costs | 393640 |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | (1064109) | 72933 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 947699 | 606056 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 526322 | 1243042 |
| &nbsp;&nbsp;&nbsp;Accrued EPA water treatment | (903565) |  |
| &nbsp;&nbsp;&nbsp;EPA cost recovery payable | (2000000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable – EPA | (113579) |  |
| &nbsp;&nbsp;&nbsp;Interest payable | (639402) | - |
| **Net cash used in operating activities** | (26531674) | (9372253) |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of spare inventory | (341004) |  |
| &nbsp;&nbsp;&nbsp;Land purchase | (202000) |  |
| &nbsp;&nbsp;&nbsp;Bunker Hill mine purchase | (5524322) |  |
| &nbsp;&nbsp;&nbsp;Mine improvements | (356149) |  |
| &nbsp;&nbsp;&nbsp;Purchase of Process plant | (2815398) |  |
| &nbsp;&nbsp;&nbsp;Purchase of machinery and equipment | (316600) | (94693) |
| **Net cash used in investing activities** | (9555473) | (94693) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible debentures | 29000000 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of shares, net of issue costs | 7769745 | 6008672 |
| &nbsp;&nbsp;&nbsp;Proceeds from promissory note |  | 2500000 |
| &nbsp;&nbsp;&nbsp;Repayment of promissory note | (1000000) |  |
| &nbsp;&nbsp;&nbsp;Lease payments | (64828) | (97138) |
| **Net cash provided by financing activities** | 35704917 | 8411534 |
| **Net change in cash** | (382230) | (1055412) |
| **Cash, beginning of period** | 486063 | 3568661 |
| **Cash, end of period** | $103833 | $2513249 |
| **Supplemental disclosures** |  |  |
| Non-cash activities |  |  |
| &nbsp;&nbsp;&nbsp;Units issued to settle accounts payable and accrued liabilities | $228421 | $188607 |
| &nbsp;&nbsp;&nbsp;Units issued to settle interest payable | 643906 |  |
| &nbsp;&nbsp;&nbsp;Mill purchase for shares and warrants | 3243296 |  |
| &nbsp;&nbsp;&nbsp;Units issued to settle DSU/RSU/Bonuses | 872399 | - |

---

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

**Bunker Hill Mining Corp.**

**Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency**

**(Expressed in United States Dollars)**

**Unaudited**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** |<br>**Additional**<br>**paid-in**- | | | | |
|  | **Shares** | **Amount** | **capital** |<br>**Stock**<br>**subscriptions**<br>**payable** | **Accumulated**<br>**other**<br>**comprehensive**<br>**loss** |<br>**Accumulated**<br>**deficit** |<br><br>**Total** |
| **Balance, December 31, 2021** | **164435442** | $**164** | $**38248618** | $**-** | $**-** | $**(72491150)** | $**(34242368)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 145186 |  |  |  | 145186 |
| &nbsp;&nbsp;&nbsp;Stock subscription payable |  |  |  | 1775790 |  |  | 1775790 |
| &nbsp;&nbsp;&nbsp;Net loss for the period | - | - | - | - | - | (2880886) | (2880886) |
| **Balance, March 31, 2022** | **164435442** | $**164** | $**38393804** | $**1775790** | $**-** | $**(75372036)** | $**(35202278)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 15922 |  |  |  | 15922 |
| &nbsp;&nbsp;&nbsp;Compensation options |  |  | 264435 |  |  |  | 264435 |
| &nbsp;&nbsp;&nbsp;Shares issued for interest payable | 1315857 | 1 | 269749 |  |  |  | 269750 |
| &nbsp;&nbsp;&nbsp;Shares issued for RSUs vested | 933750 | 1 | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non brokered shares issued for C$0.30 | 1471664 | 1 | 352854 |  |  |  | 352855 |
| &nbsp;&nbsp;&nbsp;Special warrant shares issued for C$0.30 | 37849325 | 38 | 9083719 | (1775790) |  |  | 7307967 |
| &nbsp;&nbsp;&nbsp;Contractor shares issued for C$0.30 | 1218000 | 1 | 289999 |  |  |  | 290000 |
| &nbsp;&nbsp;&nbsp;Shares issued for Process plant purchase | 10416667 | 10 | 1970254 |  |  |  | 1970264 |
| Issue costs |  |  | (896009) |  |  |  | (896009) |
| &nbsp;&nbsp;&nbsp;Warrant valuation |  |  | (6246848) |  |  |  | (6246848) |
| &nbsp;&nbsp;&nbsp;Gain on fair value from change in credit risk |  |  |  |  | 371586 |  | 371586 |
| &nbsp;&nbsp;&nbsp;Net income for the period | - | - | - | - | - | 12054781 | 12054781 |
| **Balance, June 30, 2022** | **217640705** | $**216** | $**43497878** | $**-** | $**371586** | $**(63317255)** | $**(19447575)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 27369 |  |  |  | 27369 |
| &nbsp;&nbsp;&nbsp;Shares issued for RSUs vested | 33000 | 1 | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Issue costs |  |  | (4522) |  |  |  | (4522) |
| &nbsp;&nbsp;&nbsp;Shares issued for interest payable | 1975482 | 2 | 374154 |  |  |  | 374156 |
| &nbsp;&nbsp;&nbsp;Gain on fair value from change in credit risk |  |  |  |  | 625050 |  | 625050 |
| &nbsp;&nbsp;&nbsp;Net income for the period | - | - | - | - | - | 3690353 | 3690353 |
| **Balance, September 30, 2022** | **219649187** | $**219** | $**43894878** | $**-** | $**996636** | $**(59626902)** | $**(14735169)** |
| **Balance, December 31, 2020** | **143117068** | $**143** | $**34551133** | $**-** | $**-** | $**(66088873)** | $**(31537597)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 620063 |  |  |  | 620063 |
| &nbsp;&nbsp;&nbsp;Shares issued at C $0.40 per share | 19576360 | 20 | 6168049 |  |  |  | 6168069 |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement at C$0.58 | 417720 |  | 188145 |  |  |  | 188145 |
| &nbsp;&nbsp;&nbsp;Shares issued for RSUs vested | 437332 |  |  |  |  |  |  |
| Issue costs |  |  | (159397) |  |  |  | (159397) |
| &nbsp;&nbsp;&nbsp;Warrant valuation |  |  | (3813103) |  |  |  | (3813103) |
| &nbsp;&nbsp;&nbsp;Net income for the period | - | - | - | - | - | 5837809 | 5837809 |
| **Balance, March 31, 2021** | **163548480** | $**163** | $**37554890** | $**-** | $**-** | $**(60251064)** | $**(22696011)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 280720 |  |  |  | 280720 |
| &nbsp;&nbsp;&nbsp;Shares issued for RSUs vested | 233057 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income for the period | - | - | - | - | - | 45056 | 45056 |
| **Balance, June 30, 2021** | **163781537** | $**163** | $**37835610** | $**-** | $**-** | $**(60206008)** | $**(22370235)** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 323538 |  |  |  | 323538 |
| &nbsp;&nbsp;&nbsp;Shares issued for RSUs vested | 653905 | 1 | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income for the period | - | - | - | - | - | 3960630 | 3960630 |
| **Balance, September 30, 2021** | **164435442** | $**164** | $**38159147** | $**-** | $**-** | $**(56245378)** | $**(18086067)** |

---

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

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

**1. Nature and Continuance of Operations and Going Concern**

Bunker Hill Mining Corp. (the "Company") was incorporated under the laws of the state of Nevada, U.S.A. on February 20, 2007, under the name Lincoln Mining Corp. Pursuant to a Certificate of Amendment dated February 11, 2010, the Company changed its name to Liberty Silver Corp., and on September 29, 2017, the Company changed its name to Bunker Hill Mining Corp. The Company's registered office is located at 1802 N. Carson Street, Suite 212, Carson City, Nevada 89701, and its head office is located at 82 Richmond Street East, Toronto, Ontario, Canada, M5C 1P1. As of the date of this Form 10-Q, the Company had one subsidiary, Silver Valley Metals Corp. ("Silver Valley", formerly American Zinc Corp.), an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Kellogg, Idaho.

The Company was incorporated for the purpose of engaging in mineral exploration activities. It continues to work at developing its project with a view towards putting it into production.

**Going Concern:**

These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $59,626,902 and further losses are anticipated in the development of its business. Additionally, the Company owes a total of $3,847,141 to the Environmental Protection Agency ("EPA") (see Note 6) for water treatment that is classified as current. The Company also owes a total of $7,420,024, net of discount, to the EPA that is classified as long-term debt. The Company does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Company's ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying unaudited condensed interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets, debt, and closing on the multi-metals stream transaction (see note 7). These unaudited condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

**COVID-19:**

The Company's operations could be significantly adversely affected by the effects of a widespread global outbreak of epidemics, pandemics, or other health crises, including the recent outbreak of respiratory illness caused by the novel coronavirus ("COVID-19"). Although the pandemic has subsided significantly, the Company cannot accurately predict the impact a COVID-19 resurgence would have on its operations and the ability of others to meet their obligations with the Company, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect the Company's operations and ability to finance its operations.

**The Russia/Ukraine Crisis:**

The Company's operations could be adversely affected by the effects of the Russia/Ukraine crisis and the effects of sanctions imposed against Russia or that country's retributions against those sanctions, embargos or further-reaching impacts upon energy prices, food prices and market disruptions. The Company cannot accurately predict the impact the crisis will have on its operations and the ability of contractors to meet their obligations with the Company, including uncertainties relating the severity of its effects, the duration of the conflict, and the length and magnitude of energy bans, embargos and restrictions imposed by governments. In addition, the crisis could adversely affect the economies and financial markets of the United States in general, resulting in an economic downturn that could further affect the Company's operations and ability to finance its operations. Additionally, the Company cannot predict changes in precious metals pricing or changes in commodities pricing which may alternately affect the Company either positively or negatively.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

**2. Basis of Presentation**

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, shareholders' deficiency, or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The unaudited condensed interim consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K, which contains the annual audited consolidated financial statements and notes thereto, together with the Management's Discussion and Analysis, for the year ended December 31, 2021. The financial results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results for the full fiscal year. The unaudited interim condensed consolidated financial statements are presented in United States dollars, which is the Company's functional currency.

**3. Plant & Equipment**

Equipment consists of the following:

Schedule of Equipment

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
| Equipment | $920571 | $603972 |
|  | 920571 | 603972 |
| Less accumulated depreciation | (326983) | (207078) |
| Equipment, net | $593588 | $396894 |

---

The total depreciation expense for equipment during the three and nine months ended September 30, 2022 was $42,814 and $119,905, respectively. Compared to the three and nine months ended September 30, 2021 was $34,565 and $98,961, respectively. See Note 4 for additional depreciation on the right-of-use asset.

Process Plant Purchase from Teck Resources Limited

On May 13, 2022, the Company completed purchase of a comprehensive package of equipment and parts inventory from Teck Resources Limited ("Teck"). The package comprises substantially all processing equipment of value located at the Pend Oreille mine site, including complete crushing, grinding and flotation circuits suitable for a planned ~1,500 ton-per-day operation at the Bunker Hill site, and total inventory of nearly 10,000 components and parts for mill, assay lab, conveyer, field instruments, and electrical spares.

- The purchase of the mill has been valued at:

---

| |
|:---|
| Cash consideration given, comprised of $500,000 nonrefundable deposit remitted on January 7, 2022 and $231,000 sales tax remitted on May 13, 2022, a total of $731,000 cash remitted. |
| Value of common shares issued on May 13, 2022 at the market price of that day, a value of $1,970,264. |
| Fair value of the warrants issued together with the inputs, as determined by a binomial model, resulted in a fair value of $1,273,032. See note 9. |
| As a result, the total value of the mill purchase was determined to be $3,974,296. |

---

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

The process plant was purchased in an assembled state in the seller's location, and included major processing systems, significant components, and a large inventory of spare parts. The Company has disassembled and transported it to the Bunker Hill site, and will be reassembling it as an integral part of the Company's future operations. The Company determined that the transaction should be accounted for as an asset acquisition, with the process plant representing a single asset, with the exception of the inventory of spare parts, which has been separated out and appears on the balance sheet as a current asset in accordance with a preliminary purchase price allocation. As the plant is demobilized, transported and reassembled, installation and other costs associated with these activities will be captured and capitalized as components of the asset.

At September 30, 2022, the asset consists of the following:

Schedule of Plant Asset Consists

---

| | |
|:---|:---|
|  | September 30,<br> 2022 |
| Deposit paid | $500000 |
| Sales tax paid | 231000 |
| Value of shares issued | 1970264 |
| Value of warrants issued | 1273032 |
| &nbsp;&nbsp;&nbsp;Total plant & inventory purchased | 3974296 |
| Site preparation costs | 619172 |
| Demobilization | 1806229 |
| Less spare parts inventory | (341003) |
| Pend Oreille plant asset, net | $6058694 |

---

Additionally, at September 30, 2022, the Company has paid a refundable deposit of $1,000,000 to Teck as security while demobilization activities are ongoing. This is classified as a short-term deposit on the balance sheet.

Ball Mill upgrade

On August 30, 2022, the Company entered into an agreement to purchase a ball mill from D'Angelo International LLC for $675,000. The purchase of the mill is to be made in three cash payments:

$100,000 by September 15, 2022 as a non-refundable deposit (paid)

$100,000 by October 15, 2022 (paid)

$475,000 by December 15, 2022

At September 30, 2022, the Company paid $100,000 towards the purchase as a non-refundable deposit.

**4. Right-of-Use Asset**

Right-of-use asset consists of the following:

Schedule of Right-of-use Asset

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
| Office lease | $319133 | 319133 |
| Less accumulated depreciation | (319133) | (266780) |
| Right-of-use asset, net | $- | $52353 |

---

The total depreciation expense for the right-of-use asset during the three and nine months ended September 30, 2022 was $nil and $52,353, respectively. Compared to the three and nine months ended September 30, 2021 was $26,594 and $79,783, respectively.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

**5. Mining Interests**

Bunker Hill Mine Complex

The Company purchased the Bunker Hill Mine (the "Mine") in January 2022, as described below.

Prior to purchasing the Mine, the Company had entered into a series of agreements with Placer Mining Corporation ("Placer Mining"), the prior owner, for the lease and option to purchase the Mine. The first of these agreements was announced on August 28, 2017, with subsequent amendments and/or extensions announced on November 1, 2019, July 7, 2020, and November 20, 2020.

Under the terms of the November 20, 2020 amended agreement (the "Amended Agreement"), a purchase price of $7,700,000 was agreed, with $5,700,000 payable in cash (with an aggregate of $300,000 to be credited toward the purchase price of the Mine as having been previously paid by the Company) and $2,000,000 in Common Shares of the Company. The Company agreed to make an advance payment of $2,000,000, credited towards the purchase price of the Mine, which had the effect of decreasing the remaining amount payable to purchase the Mine to an aggregate of $3,400,000 payable in cash and $2,000,000 in Common Shares of the Company.

The Amended Agreement also required payments pursuant to an agreement with the EPA whereby for so long as the Company leases, owns and/or occupies the Mine, the Company would make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA's claim for historical water treatment cost recovery in accordance with the Settlement Agreement reached with the EPA in 2018. Immediately prior to the purchase of the Mine, the Company's liability to EPA in this regard totaled $11,000,000. (See also Note 6 Environmental Protection Agency Agreement and Water Treatment Liabilities).

The Company completed the purchase of the Mine on January 7, 2022. The terms of the purchase price were modified to $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of Common Shares. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see "EPA Settlement Agreement" section below).

The $5,400,000 contract cash paid at purchase was the $7,700,000 less the $2,000,000 deposit and $300,000 credit given by the seller for prior years' maintenance payments. The carrying cost of the Mine is comprised of the following:

Schedule of Mining Interests

---

| | |
|:---|:---|
|  | **January 7,**<br>**2022** |
| Contract purchase price | $7700000 |
| Less: Credit by seller for prior maintenance payments | (300000) |
| Net present value of water treatment cost recovery liability assumed | 6402425 |
| Closing costs capitalized | 2638 |
| Mine acquisition costs - legal | 442147 |
| &nbsp;&nbsp;&nbsp;Total carrying cost of mine | $14247210 |

---

Management has determined the purchase to be an acquisition of a single asset as guided by ASU 805-10. During the three and nine months ended September 30, 2022, the Company has spent an additional $356,149 and $356,149, respectively, in mine improvements.

Land Purchase

On March 3, 2022, the Company purchased a 225-acre surface land parcel for $202,000 which includes the surface rights to portions of 24 patented mining claims, for which the Company already owns the mineral rights.

**6. Environmental Protection Agency Agreement and Water Treatment Liabilities**

Historical Cost Recovery Payables

As a part of the lease of the Mine, the Company was required to make payments pursuant to an agreement with the Environmental Protection Agency (the "EPA") whereby for so long as the Company leases, owns and/or occupies the Mine, the Company was required to make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA's claim for cost recovery related to historical treatment costs paid by the EPA from 1995 to 2017. These payments, if all are made, will total $20,000,000. The agreement called for payments starting with $1,000,000 30 days after a fully ratified agreement was signed (which payment was made) followed by $2,000,000 on November 1, 2018, and $3,000,000 on each of the next five anniversaries with a final $2,000,000 payment on November 1, 2024. The November 1, 2018, November 1, 2019, November 1, 2020, and November 1, 2021, payments were not made. As a result, a total of $11,000,000 was outstanding as of December 31, 2021, accounted for within current liabilities. As the purchase of the Bunker Hill Mine (which would trigger the immediate recognition of the remaining liabilities due through November 1, 2024) had not yet taken place, the remaining $8,000,000 cost recovery liabilities were not recognized on the Company's balance sheet as of December 31, 2021.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

Through 2021, the Company engaged in discussions with the EPA to reschedule these payments in ways that enable the sustainable operation of the Mine as a viable long-term business.

Effective December 19, 2021, the Company entered into an amended Settlement Agreement between the Company, Idaho Department of Environmental Quality, US Department of Justice, and the EPA (the "Amended Settlement"). Upon the effectivity of the Amended Settlement, the Company would become fully compliant with its payment obligations to these parties. The Amended Settlement modified the payment schedule and payment terms for recovery of the aforementioned historical environmental response costs. Pursuant to the terms of the Amended Settlement, upon purchase of the Bunker Hill Mine and the satisfaction of financial assurance commitments (as described below), the $19,000,000 of cost recovery liabilities will be paid by the Company to the EPA on the following dates:

Schedule of Amended Settlement Environmental Protection Agency Agreement

---

| | |
|:---|:---|
| **Date** | **Amount** |
| Within 30 days of Settlement Agreement | $2000000 |
| November 1, 2024 | $3000000 |
| November 1, 2025 | $3000000 |
| November 1, 2026 | $3000000 |
| November 1, 2027 | $3000000 |
| November 1, 2028 | $3000000 |
| November 1, 2029 | $2,000,000 plus accrued interest |

---

In addition to the changes in payment terms and schedule, the Amended Settlement included a commitment by the Company to secure $17,000,000 of financial assurance in the form of performance bonds or letters of credit deemed acceptable to the EPA within 180 days from the effective date of the Amended Settlement Agreement. Once put in place, the financial assurance can be drawn on by the EPA in the event of non-performance by the Company of its payment obligations under the Amended Settlement (the "Financial Assurance"). The amount of the bonds will decrease over time as individual payments are made.

The Company completed the purchase of the Mine (see note 5) and made the initial $2,000,000 cost recovery payment on January 7, 2022. Concurrent with the purchase of the Mine, the Company assumed the balance of the EPA liability totaling $17,000,000, an increase of $8,000,000.

As of March 31, 2022, the financial assurance had not yet been secured, and as such the Company accounted for the $17,000,000 liabilities according to the previous payment schedule, resulting in $12,000,000 classified as a current liability and $5,000,000 as a long-term liability. The long-term portion was discounted at an interest rate of 16.5% to arrive at a net present value of $3,402,425 after discount.

During the quarter ended June 30, 2022, the Company was successful in obtaining the final financial assurance. Specifically, a $9,999,000 payment bond and a $7,001,000 letter of credit were secured and provided to the EPA. This milestone provides for the Company to recognize the effects of the change in terms of the EPA liability as outlined in the December 19, 2021 agreement. Once the financial assurance was put into place, the restructuring of the payment stream under the Amendment occurred with the entire $17,000,000 liability being recognized as long-term in nature. The aforementioned payment bond is secured by a $2,475,000 letter of credit. The $2,475,000 and $7,001,000 letters of credit are secured by $9,476,000 of cash deposits under an agreement with a commercial bank. These cash deposits comprise the $9,476,000 of restricted cash shown within current assets as of September 30, 2022.

Under ASC 470-50, Debt Modifications and Extinguishments, the Company performed a comparison of NPV's of the pre-settlement Cost Recovery obligation to the post-settlement schedule of Cost Recovery obligation to determine this was an extinguishment of debt. The Company recorded a gain on extinguishment of debt totaling $8,614,103. The old debt, including any discount, was written off and the new payment stream of the amended $17,000,000 table, including the new discount of $9,927,590, using the effective interest rate of 19.95%, was recorded to result in a net liability of $7,072,410, which is due long-term. During the three and nine months ended September 30, 2022, the Company recorded combined discount amortization expense of $347,614 and $631,701 on the discounted pre- and post-extinguishment liability, respectively, bringing the net liability to $7,420,024 as of September 30, 2022. As at September 30, 2022 interest of $192,923 ($306,501 at December 31, 2021) is included in interest payable on the condensed consolidated balance sheet.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

*Water Treatment Charges – EPA*

Separate to the cost recovery liabilities outlined above, the Company is responsible for the payment of ongoing water treatment charges. Water treatment charges incurred through December 31, 2021 are payable to the EPA, and charges thereafter are payable to the Idaho Department of Environmental Quality ("IDEQ") given a handover of responsibilities for the Central Treatment Plant from the EPA to the IDEQ as of that date. The Company previously estimated a balance due to the EPA of $5,110,706 for ongoing water treatment through December 31, 2021. During the six months ended June 30, 2022, the Company received an invoice from the EPA for water treatment through October 2021. As a result, the Company reversed its previous accruals for this period and adjusted its estimated charges for November and December 2021. Through recent discussions with the EPA, the Company has confirmed that payments to the IDEQ for water treatment charges cannot be netted against invoices payable to the EPA. After taking this into account, the additional invoice received from the EPA, and a $1,000,000 payment made in April 2022, the Company has estimated water treatment payables to the EPA of $3,847,141 as of September 30, 2022 and $5,110,706 at December 31, 2021, which is reflected in current liabilities.

*Water Treatment Charges – IDEQ*

For water treatment charges beginning January 2022, the Company makes a monthly accrual of $80,000 to cover the IDEQ's estimated costs of treating water at the water treatment facility. The Company also pays an agreed-upon monthly amount of $140,000, with a true-up to be recorded and credited to or paid by the Company once the actual annual costs are determined each year. At September 30, 2022, the Company has accrued $720,000 for water treatment costs to IDEQ and has prepaid $1,260,000, leaving a net prepaid of $540,000 ($nil at December 31, 2021) which is included in prepaid expenses on the unaudited condensed interim consolidated balance sheet.

**7. Promissory Note Payable and Convertible Debentures**

On September 22, 2021, the Company issued a non-convertible promissory note in the amount of $2,500,000 bearing interest of 15% per annum and payable at maturity. The promissory note was scheduled to mature on March 15, 2022; however, the note holder agreed to accept $500,000 payment, which the Company paid, by April 15, 2022, and the remaining principal and interest was deferred to June 20, 2022. Prior to the revised maturity of June 20, 2022, the note holder agreed to accept a further $500,000 payment by June 30, 2022, which the Company paid, and the remaining principal and interest was deferred to November 30, 2022. The Company purchased a land parcel for approximately $202,000 on March 3, 2022, which may be used as security for the promissory note. At September 30, 2022, the Company owes $1,500,000 in promissory notes payable, which is included in current liabilities on the condensed consolidated balance sheet. Interest expense for the three and nine months ended September 30, 2022 was $56,712 and $224,589, respectively. For the three and nine months ended September 30, 2021, interest expense was $8,219 and $8,219, respectively. At September 30, 2022 interest of $327,329 ($102,740 at December 31, 2021) is included in interest payable on the condensed consolidated balance sheet.

**Project Finance Package with Sprott Private Resource Streaming & Royalty Corp.**

On December 20, 2021, the Company executed a non-binding term sheet outlining a $50,000,000 project finance package with Sprott Private Resource Streaming and Royalty Corp. ("SRSR").

The non-binding term sheet with SRSR outlined a $50,000,000 project financing package that the Company expects to fulfill the majority of its funding requirements to restart the Mine. The term sheet consisted of an $8,000,000 royalty convertible debenture (the "RCD"), a $5,000,000 convertible debenture (the "CD1"), and a multi-metals stream of up to $37,000,000 (the "Stream"). The CD1 was subsequently increased to $6,000,000, increasing the project financing package to $51,000,000.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

On June 17, 2022, the Company consummated a new $15,000,000 convertible debenture (the "CD2"). As a result, total potential funding from SRSR was further increased to $66,000,000 including the RCD, CD1, CD2 and the Stream (together, the "Project Financing Package").

*<u>$8,000,000 Royalty Convertible Debenture (RCD)</u>*

The Company closed the $8,000,000 RCD on January 7, 2022. The RCD bears interest at an annual rate of 9.0%, payable in cash or Common Shares at the Company's option, until such time that SRSR elects to convert a royalty, with such conversion option expiring at the earlier of advancement of the Stream or July 7, 2023 (subsequently amended as described below). In the event of conversion, the RCD will cease to exist and the Company will grant a royalty for 1.85% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company's 2021 ground geophysical survey (the "SRSR Royalty"). A 1.35% rate will apply to claims outside of these areas. The RCD was initially secured by a share pledge of the Company's operating subsidiary, Silver Valley, until a full security package was put in place concurrent with the consummation of the CD1. In the event of non-conversion, the principal of the RCD will be repayable in cash.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the RCD, including an amendment of the maturity date from July 7, 2023 to March 31, 2025. The parties also agreed to enter into a Royalty Put Option such that in the event the RCD is converted into a royalty as described above, the holder of the royalty will be entitled to resell the royalty to the Company for $8,000,000 upon default under the CD1 or CD2 until such time that the CD1 and CD2 are paid in full. The Company determined that the amendments in the terms of the RCD should not be treated as an extinguishment of the RCD, and have therefore been accounted for as a modification as a result of the treatment the Company reported a gain of $607,261 in the statement of operations for the period ended September 30, 2022.

*<u>$6,000,000 Series 1 Convertible Debenture (CD1))</u>*

The Company closed the $6,000,000 CD1 on January 28, 2022, which was increased from the previously-announced $5,000,000. The CD1 bears interest at an annual rate of 7.5%, payable in cash or shares at the Company's option, and matures on July 7, 2023 (subsequently amended, as described below). The CD1 is secured by a pledge of the Company's properties and assets. Until the closing of the Stream, the CD1 was to be convertible into Common Shares at a price of C$0.30 per Common Share, subject to stock exchange approval (subsequently amended, as described below). Alternatively, SRSR may elect to retire the CD1 with the cash proceeds from the Stream. The Company may elect to repay the CD1 early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the CD1, including that the maturity date would be amended from July 7, 2023 to March 31, 2025, and that the CD1 would remain outstanding until the new maturity date regardless of whether the Stream is advanced, unless the Company elects to exercise its option of early repayment. The Company determined that the amendments in the terms of the RCD should not be treated as an extinguishment of the CD1, and have therefore been accounted for as a modification as a result of the treatment the Company reported a gain of $179,046 in the statement of operations for the period ended September 30, 2022

 

*<u>$15,000,000 Series 2 Convertible Debenture (CD2)</u>*

The Company closed the $15,000,000 CD2 on June 17, 2022. The CD2 bears interest at an annual rate of 10.5%, payable in cash or shares at the Company's option, and matures on March 31, 2025. The CD2 is secured by a pledge of the Company's properties and assets. The repayment terms include 3 quarterly payments of $2,000,000 each beginning June 30, 2024 and $9,000,000 on the maturity date.

In light of the Series 2 Convertible Debenture financing, the previously permitted additional senior secured indebtedness of up to $15 million for project finance has been removed.

The Company determined that in accordance with ASC 815, each debenture will be valued and carried as a single instrument, with the periodic changes to fair value accounted through earnings, profit and loss.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

Schedule of Key Valuation Inputs

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Reference (2)(4) (5) | Valuation<br> date | Maturity<br> date | Contractual <br> Interest rate | Stock price (US$) | Expected equity volatility | Credit spread | Risk-free rate | Risk-<br> adjusted rate |
| CD1 note (1)(3) | 01-28-22 | 07-07-23 | 7.50% | 0.230 | 120% | 8.70% | 0.92% | 16.18% |
| RCD note (stream not advanced scenario) | 01-07-22 | 07-07-23 | 9.00% | 0.242 | 130% | 9.21% | 0.65% | 16.39% |
| RCD note (stream advanced) scenario | 01-07-22 | 06-30-22 | 9.00% | 0.242 | 130% | 9.16% | 0.23% | 15.96% |
| CD1 note (1)(3) | 03-31-22 | 07-07-23 | 7.50% | 0.235 | 120% | 8.85% | 1.80% | 17.12% |
| RCD note (stream not advanced scenario) | 03-31-22 | 07-07-23 | 9.00% | 0.235 | 120% | 8.85% | 1.80% | 17.12% |
| RCD note (stream advanced) scenario | 03-31-22 | 06-30-22 | 9.00% | 0.235 | 120% | 8.78% | 0.52% | 15.88% |
| CD2 note | 06-17-22 | 03-31-25 | 10.50% | 0.222 | 120% | 9.45% | 3.28% | 20.95% |
| CD2 note | 06-30-22 | 03-31-25 | 10.50% | 0.225 | 120% | 10.71% | 2.95% | 21.78% |
| CD1 note | 06-30-22 | 03-31-25 | 7.50% | 0.233 | 120% | 10.71% | 2.95% | 19.89% |
| RCD note (stream not advanced scenario) | 06-30-22 | 03-31-25 | 9.00% |  | 120% | 10.71% | 2.95% | 19.89% |
| RCD note (stream advanced) scenario | 06-30-22 | 09-30-22 | 9.00% |  | 120% | 10.85% | 1.72% | 18.89% |
| CD1 note | 09-30-22 | 03-31-25 | 7.50% | 0.085 | 120% | 13.31% | 4.19% | 23.35% |
| RCD note (stream not advanced) | 09-30-22 | 03-31-25 | 9.00% | 0.085 | 120% | 13.31% | 4.19% | 23.35% |
| RCD note (stream advanced) | 09-30-22 | 11-30-22 | 9.00% | 0.085 | 120% | 13.85% | 3.04% | 22.79% |
| CD2 note | 09-30-22 | 03-31-25 | 10.50% | 0.085 | 120% | 13.31% | 4.19% | 25.21% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 CD's carries a Discount for Lack of Marketability ("DLOM") of 5.0 %.

(2) CD1
 and RCD carry an instrument-specific spread of 7.23 %, CD2 carries an instrument-specific spread of 9.32 %

(3) The
 conversion price of the CD1 is $0.219 and CD2 is $0.212

(4) A
 project risk rate of 13.0 % was used for all scenarios of the RCD fair value computations

(5) The
 probabilities for the stream being advanced and the stream not being advanced is 59 % and 41 %, respectively.

The resulting fair values of the CD1, RCD, and CD2 at the issuance dates, June 30, 2022, and as of September 30, 2022 were as follows:

Schedule of Fair Value Derivative Liability

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Instrument Description** | **Issuance date CD1 and RCD** | **Issuance date CD2** | **March 31,<br> 2022** | **June 30,<br> 2022** | **September 30, <br> 2022** |
| CD1 | $6320807 | $- | $6303567 | $5633253 | $4892435 |
| RCD | 7679193 |  | 7886743 | 7078596 | 7359776 |
| CD2 | - | 15000000 | - | 14176578 | 12710097 |
| Total | $14000000 | $15000000 | $14190310 | $26888427 | $24962308 |

---

The total gain on fair value of debentures recognized during the three and nine months ended September 30, 2022 was $1,301,069 and $3,041,056, respectively. The portion of changes in fair value that is attributable to changes in the Company's credit risk is accounted for within other comprehensive income. During the three and nine months ended September, 2022, the Company recognized $625,050 and $996,636, respectively, within other comprehensive income.

The Company performs quarterly testing of the covenants in the RCD, CD1 and CD2, and was in compliance with all such covenants as of September 30, 2022.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

*<u>The Stream</u>*

A minimum of $27,000,000 and a maximum of $37,000,000 (the "Stream Amount") will be made available under the Stream, at the Company's option, once the conditions of availability of the Stream have been satisfied, including confirmation of full project funding by an independent engineer appointed by SRSR. If the Company draws the maximum funding of $37,000,000, the Stream would apply to 10% of payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 55 million pounds of zinc, 35 million pounds of lead, and 1 million ounces of silver (subsequently amended, as described below). Thereafter, the Stream would apply to 2% of payable metals sold. If the Company elects to draw less than $37,000,000 under the Stream, the percentage and quantities of payable metals streamed will adjust pro-rata. The delivery price of streamed metals will be 20% of the applicable spot price. The Company may buy back 50% of the Stream Amount at a 1.40x multiple of the Stream Amount between the second and third anniversary of the date of funding, and at a 1.65x multiple of the Stream Amount between the third and fourth anniversary of the date of funding. As of September 30, 2022, the Stream had not been advanced.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed that the minimum quantity of metal delivered under the Stream, if advanced, will increase by 10% relative to the amounts noted above.

**8. Lease Liability**

The Company had an operating lease for office space that expired in May 2022. Below is a summary of the Company's lease liability as of September 30, 2022:

---

| | |
|:---|:---|
|  | **Office lease** |
| Balance, December 31, 2020 | $176607 |
| Addition |  |
| Interest expense | 12696 |
| Lease payments | (129191) |
| Foreign exchange loss | 2165 |
| Balance, December 31, 2021 | 62277 |
| Addition |  |
| Interest expense | 1834 |
| Lease payments | (64828) |
| Foreign exchange loss | 717 |
| Balance, September 30, 2022 | $- |

---

**9. Capital Stock, Warrants and Stock Options**

**Authorized**

The total authorized capital is as follows:

● An increase to 1,500,000,000 common shares, as approved in the July 29, 2022 annual meeting of shareholders, with a par value of $0.000001 per common share; and

● 10,000,000 preferred shares with a par value of $0.000001 per preferred share

**Issued and outstanding**

In February 2021, the Company closed a non-brokered private placement of units of the Company (the "February 2021 Offering"), issuing 19,576,360 units of the Company ("February 2021 Units") at C$0.40 per February 2021 Unit for gross proceeds of $6,168,069 (C$7,830,544). Each February 2021 Unit consisted of one common share of the Company and one common share purchase warrant of the Company (each, "February 2021 Warrant"), which entitles the holder to acquire a common share of the Company at C$0.60 per common share for a period of five years. In connection with the February 2021 Offering, the Company incurred share issuance costs of $154,630 and issued 351,000 compensation options (the "February 2021 Compensation Options"). Each February 2021 Compensation Option is exercisable into one February 2021 Unit at an exercise price of C$0.40 for a period of three years.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

The Company also issued 417,720 February 2021 Units to settle $132,000 of accrued liabilities at a deemed price of $0.45 based on the fair value of the units issued. As a result, the Company recorded a loss on debt settlement of $56,146.

In April 2022, the Company closed a private placement of 37,849,325 Special Warrants and a non-brokered private placement of 1,471,664 units of the Company for aggregate gross proceeds of approximately $9,384,622 (C$11,796,297). Related parties, including management, directors, and consultants, participated in the Special Warrant private placement for a total of 4,809,160 shares (included in the total above).

The Special Warrants were issued at a price of C$0.30 per special warrant. Each Special Warrant shall be automatically exercisable (without payment of any further consideration and subject to customary anti-dilution adjustments) into one unit of the Company (a "Brokered Unit") on the date that is the earlier of: (i) the date that is three (3) business days following the date on which the Company has obtained both (A) a receipt from the Canadian security commission in each of the each of the provinces of Canada which the purchasers and Agents (as defined herein) are residents where the Special Warrants are sold (the "Qualifying Jurisdictions") for a (final) short-form prospectus qualifying the distribution of the common stock of the Company ("Common Shares") and common stock purchase warrants of the Company (the "Warrants") issuable upon exercise of the Special Warrants (the "Qualification Prospectus"); and (B) notification that the registration statement, under U.S. securities laws, of the Company filed with the United States Securities and Exchange Commission (the "SEC") has been declared effective by the SEC (the "Registration Statement"); and (ii) the date that is six months following April 1, 2022 (the "Closing ‎Date"). Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one common share for C$0.37 until April 1, 2025. The warrants shall also be exercisable on a cashless basis in the event the Registration Statement has not been made effective by the SEC prior to the date of exercise.

On May 31, 2022, the Company announced that it had received a receipt from the Ontario Securities Commission for its final short-form Canadian prospectus qualifying the distribution of the common stock of the Company and common stock purchase warrants of the Company issuable upon exercise of the special warrants of the Company that were issued on April 1, 2022. The Company also announced that it received notice from the United States Securities and Exchange Commission that its Form S-1 has been declared effective as of May 27, 2022. As a result of obtaining the receipt for the Canadian prospectus and the declaration of effectiveness for the Form S-1, each unexercised Special Warrant was automatically exercised into one Common Share and one Warrant without further action on the part of the holders.

The non-brokered 1,471,664 units were issued at a price of C$0.30 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one warrant share for C$0.37 until April 1, 2025.

In connection with the special warrants offering, the agents earned a cash commission in the amount of C$563,968 and compensation options exercisable to acquire an aggregate of 1,879,892 units of the Company at C$0.30 a unit until April 1, 2024. Each compensation unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one warrant share for C$0.37 until April 1, 2024.

In April 2022, the Company issued 1,315,856 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended March 31, 2022.

In May 2022, the Company issued 10,416,667 units to Teck Resources Limited in consideration towards the purchase of the Pend Oreille Processing Plant at C$0.245 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one warrant share for C$0.37 until May 13, 2025.

In June 2022, the Company issued 1,218,000 units to contractors for bonuses accrued during the three months ended March 31, 2022. Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one warrant share for C$0.37 until April 1, 2025.

In July 2022, the Company issued 1,975,482 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended June 30, 2022.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

For each financing, the Company has accounted for the warrants in accordance with ASC Topic 815. The warrants are considered derivative instruments as they were issued in a currency other than the Company's functional currency of the U.S. dollar. The estimated fair value of warrants accounted for as liabilities was determined on the date of issue and marks to market at each financial reporting period. The change in fair value of the warrant is recorded in the unaudited condensed interim consolidated statements of income and comprehensive income as a gain or loss and is estimated using the Binomial model.

The warrant liabilities as a result of the June 2019, August 2019, August 2020, February 2021, April 2022 special warrants, April 2022 non-brokered, May 2022 Teck purchase, and June 2022 contractor private placements were revalued as at September 30, 2022, issuance date in 2022, and December 31, 2021 using the Binomial model and the following assumptions:

---

| | | |
|:---|:---|:---|
| **April 2022 special warrants issuance** | **September 30, <br> 2022** | **April 1, <br> 2022** |
| Expected life | 914 days | 1,096 days |
| Volatility | 120% | 120% |
| Risk free interest rate | 3.72% | 2.35% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.29 |
| Fair value | $1488348 | $5947232 |
| Change in derivative liability | $(4458884) | $- |

---

---

| | | |
|:---|:---|:---|
| **April 2022 non-brokered issuance** | **September 30,<br> 2022** | **April 1, <br> 2022** |
| Expected life | 914 days | 1,096 days |
| Volatility | 120% | 120% |
| Risk free interest rate | 3.72% | 2.35% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.29 |
| Fair value | $57869 | $186190 |
| Change in derivative liability | $(128321) | $- |

---

---

| | | |
|:---|:---|:---|
| **May 2022 Teck issuance** | **September 30, <br> 2022** | **May 13, <br> 2022** |
| Expected life | 956 days | 1,096 days |
| Volatility | 120% | 120% |
| Risk free interest rate | 3.72% | 2.68% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.25 |
| Fair value | $424053 | $1273032 |
| Change in derivative liability | $(848979) | $- |

---

---

| | | |
|:---|:---|:---|
| **June 2022 issuance** | **September 30, <br> 2022** | **June 30, <br> 2022** |
| Expected life | 914 days | 1,006 days |
| Volatility | 120% | 120% |
| Risk free interest rate | 3.72% | 3.14% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.20 |
| Fair value | $47895 | $113425 |
| Change in derivative liability | $(65530) | $- |

---

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

---

| | | |
|:---|:---|:---|
| **February 2021 issuance** | **September 30, <br> 2022** | **December 31, <br> 2021** |
| Expected life | 1,228 days | 1,501 days |
| Volatility | 120% | 100% |
| Risk free interest rate | 3.72% | 1.25% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.37 |
| Fair value | $829987 | $3483745 |
| Change in derivative liability | $(2653758) | $(329358) |

---

---

| | | |
|:---|:---|:---|
| **August 2020 issuance** | **September 30, <br> 2022** | **December 31, <br> 2021** |
| Expected life | 335 days | 608 days |
| Volatility | 120% | 100% |
| Risk free interest rate | 3.79% | 0.95% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.37 |
| Fair value | $484745 | $6790163 |
| Change in derivative liability | $(6305419) | $(7703052) |

---

---

| | | |
|:---|:---|:---|
| **June 2019 issuance (i)** | **September 30, <br> 2022** | **December 31, <br> 2021** |
| Expected life | 1,188 days | 1,461 days |
| Volatility | 120% | 100% |
| Risk free interest rate | 3.72% | 1.02% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.37 |
| Fair value | $460207 | $2067493 |
| Change in derivative liability | $(1607286) | $(1371346) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) During the six
months ended December 31, 2020, the Company amended the exercise price to C$0.59 per common share and extended the expiry date to December
31, 2025 for 11,660,000 warrants.

---

| | | |
|:---|:---|:---|
| **August 2019 issuance (ii)** | **September 30, <br> 2022** | **December 31, <br> 2021** |
| Expected life | 1,188 days | 1,461 days |
| Volatility | 120% | 100% |
| Risk free interest rate | 3.72% | 1.02% |
| Dividend yield | 0% | 0% |
| Share price (C$) | $0.115 | $0.37 |
| Fair value | $707282 | $3177485 |
| Change in derivative liability | $(2470203) | $(2744785) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the six
months ended December 31, 2020, the Company amended the exercise price to C$0.59 per common share and extended the expiry date to December
31, 2025 for 17,920,000 warrants. The terms of the remaining 2,752,900 warrants remain unchanged.

**Warrants**

Schedule of Warrant Activity

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Number of**<br>**warrants** | **Weighted**<br>**average**<br>**exercise price**<br>**(C$)** | **Weighted**<br>**average**<br>**grant date**<br>**value ($)** |
| Balance, December 31, 2020 | 95777806 | $0.54 | $0.08 |
| Issued | 19994080 | 0.60 | 0.19 |
| Expired | (2913308) | 0.48 | 0.14 |
| Balance, September 30, 2021 | 112858578 | $0.55 | $0.19 |
| Balance, December 31, 2021 | 111412712 | $0.54 | $0.18 |
| Issued | 50955636 | 0.37 | 0.15 |
| Expired | (239284) | 0.70 | 0.21 |
| Balance, September 30, 2022 | 162129064 | $0.49 | $0.17 |

---

During the nine months ended September 30, 2022, 239,284 February 2020 broker warrants expired.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

At September 30, 2022, the following warrants were outstanding:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Expiry date** |<br>**Exercise**<br>**price (C$)** |<br>**Number of**<br>**warrants** | **Number of**<br>**warrants**<br>**exercisable** |
| August 31, 2023 | 0.50 | 58284148 | 58284148 |
| December 31, 2025 | 0.59 | 32895200 | 32895200 |
| February 9, 2026 | 0.60 | 17112500 | 17112500 |
| February 16, 2026 | 0.60 | 2881580 | 2881580 |
| April 1, 2025 | 0.37 | 40358969 | 40358969 |
| May 13, 2025 | 0.37 | 10416667 | 10416667 |
|  |  | 162129064 | 162129064 |

---

**Compensation options**

At September 30, 2022, the following compensation options were outstanding:

Schedule of Compensation Options

---

| | | |
|:---|:---|:---|
|  |<br>**Number of**<br>**compensation**<br>**options** | **Weighted**<br>**average**<br>**exercise price**<br>**(C$)** |
| Issued - August 2020 Compensation Options | 3239907 | $0.35 |
| Balance, December 31, 2020 | 3239907 | 0.35 |
| Issued – February 2021 Compensation Options | 351000 | 0.35 |
| Balance, December 31, 2021 | 3590907 | 0.35 |
| Issued – April 2022 Compensation Options | 1879892 | 0.30 |
| Balance, September 30, 2022 | 5470799 | $0.34 |

---

The grant date fair value of the August 2020 and February 2021, and April 2022 Compensation Options were estimated at $521,993, $68,078 and $264,435 respectively, using the Black-Scholes valuation model with the following underlying assumptions:

Schedule of Estimated Using Black-Scholes Valuation Model for Fair Value of Broker Options

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Grant Date** | **Risk free**<br> **interest rate** | **Dividend yield** | **Volatility** | **Stock price** | **Weighted average life** |
| August 2020 | 0.31% | 0% | 100% | C$0.35 | 3 years |
| February 2021 | 0.26% | 0% | 100% | C$0.40 | 3 years |
| April 2022 | 2.34% | 0% | 100% | C$0.30 | 2 years |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>**Expiry date** | **Exercise**<br>**price (C$)** | **Number of**<br>**broker options** | **Fair value**<br>**($)** |
| August 31, 2023 <sup>(i)</sup> | $0.35 | 3239907 | $521993 |
| February 16, 2024 <sup>(ii)</sup> | $0.40 | 351000 | $68078 |
| April 1, 2024 <sup>(iii)</sup> | $0.30 | 1879892 | $264435 |
|  |  | 5470799 | $854506 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) Exercisable into
one August 2020 Unit

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Exercisable into
one February 2021 Unit

&nbsp;&nbsp;&nbsp;&nbsp;(iii) Exercisable into
one April 2022 Unit

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

**Stock options**

The following table summarizes the stock option activity during the nine months ended September 30, 2022:

---

| | | |
|:---|:---|:---|
|  |<br>**Number of**<br>**stock options** | **Weighted**<br>**average**<br>**exercise price**<br>**(C$)** |
| Balance, December 31, 2020 | 8015159 | $0.62 |
| Granted (i) | 1037977 | 0.34 |
| Balance, December 31, 2021 | 9053136 | $0.58 |
| Granted (ii) | 300000 | 0.15 |
| Expired May 01, 2022 | (47500) |  |
| Balance, September 30, 2022 | 9305636 | $0.52 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On
 February 19, 2021, 1,037,977 stock options were issued to an officer of the Company, of which 273,271 stock options vested immediately
 and the balance of 764,706 stock options vested on December 31, 2021. These options have a 5 -year life and are exercisable at C$0.335 per common share. The grant date fair value of the options was estimated at $204,213 . The vesting of these options resulted in stock-based
 compensation of $nil for the three and nine months ended September 30, 2022, compared to $43,941 and $160,750 for the three and nine
 months ended September 30, 2021, respectively, which is included in operation and administration expenses on the consolidated statements
 of income (loss) and comprehensive income (loss).

(ii) On
 August 24, 2022, 300,000 stock options were issued to an employee of the Company, of which 150,000 vested immediately and the remaining balance of outstanding options to vest equally over the next two anniversaries of the grant date. These
 options have a 5 -year
 life and are exercisable at C$0.15 per common share. The grant fair value of the options was estimated at $28,930 .
 The vesting of these options resulted in stock-based compensation of $14,465 for the three and nine months ended September 30, 2022, which is included in the operation and administration expense of the
 consolidated statements of income (loss) and comprehensive income (loss).

The fair value of these stock options was determined on the date of grant using the Black-Scholes valuation model, and using the following underlying assumptions:

Schedule of Estimated Using Black-Scholes Valuation Model for Fair value of Stock Options

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Risk free**<br> **interest rate** | **Dividend yield** | **Volatility** | **Stock price** | **Weighted**<br> **average life** |
| (i) | 0.64% | 0% | 100% | C$0.34 | 5 years |

---

&nbsp;&nbsp;&nbsp;&nbsp;(ii) On August 24, 2022, 300,000 stock options were issued to an employee of the Company, of which 150,000 stock options vested immediately and the balance
of 150,000 stock options will vest equally over two years on the anniversary date of issuance. These options have a 5 -year life and are
exercisable at C$0.15 per common share. The grant date fair value of the options was estimated at $28,930 . The vesting of these options
resulted in stock-based compensation of $14,465 for the period ended September 30, 2022, which is included in operation and administration
expenses on the consolidated statements of income (loss) and comprehensive income (loss).

The fair value of these stock options was determined on the date of grant using the Black-Scholes valuation model, and using the following underlying assumptions:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Risk free**<br> **interest rate** | **Dividend yield** | **Volatility** | **Stock price** | **Weighted**<br> **average life** |
| (ii) | 3.27% | 0% | 120% | C$0.15 | 5 years |

---

The following table reflects the actual stock options issued and outstanding as of September 30, 2022:

Schedule of Actual Stock Options Issued and Outstanding

---

| | | | | |
|:---|:---|:---|:---|:---|
|<br>**Exercise**<br>**price (C$)** |<br>**remaining**<br>**contractual**<br>**life (years)** |<br>**Number of**<br>**options**<br>**outstanding** | **Number of**<br>**options**<br>**vested**<br>**(exercisable)** |<br>**Grant date**<br>**fair value ($)** |
| 0.50 | 0.5 | 235000 | 235000 | 46277 |
| 0.60 | 1.25 | 200000 | 200000 | 52909 |
| 0.60 | 2.35 | 1575000 | 1575000 | 435069 |
| 0.55 | 2.81 | 5957659 | 1489415 | 1536764 |
| 0.335 | 3.64 | 1037977 | 1037977 | 204213 |
| 0.15 | 4.90 | 300000 | 150000 | 28930 |
|  |  | 9305636 | 4687392 | $2304162 |

---

**10. Income per Share**

Potentially dilutive securities include convertible loan payable, warrants, broker options, stock options, and unvested restricted share units ("RSU"). Diluted income per share reflects the assumed exercise or conversion of all dilutive securities using the treasury stock method.

Schedule of Income Per Share

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months<br> ended<br> September 30,<br> 2022** | **Three Months<br> ended<br> September 30,<br> 2021** | **Nine Months<br> ended<br> September 30,<br> 2022** | **Nine Months<br> ended<br> September 30,<br> 2021** |
| Net income (loss) and comprehensive income (loss) for the period | **4315403** | 3960630 | **13860884** | 9843495 |
| Basic income (loss) per share Weighted average number of common shares - basic | **219466235** | 164179999 | **198364188** | 160690371 |
| Net income (loss) per share – basic | 0.02 | 0.02 | 0.07 | 0.06 |
| Net income (loss) and comprehensive income (loss) for the period | **4315403** | 3960630 | **13860884** | 9843495 |
| Dilutive effect of convertible debentures | **(502389)** |  | **(1945686)** |  |
| Dilutive effect of warrants on net income | **-** | - | **-** | - |
| Diluted net income (loss) and comprehensive income (loss) for the period | **3813014** | 3960630 | **11915198** | 9843495 |
| Diluted income (loss) per share | **219466234** | 164179999 | **198364188** | 160690371 |
| Weighted average number of common shares - basic |  |  |  |  |
| Diluted effect: |  |  |  |  |
| Warrants, broker options, and stock options, convertible debentures, and RSUs | **98738276** | 150000 | **52317205** | 150000 |
| Weighted average number of common shares - fully diluted | **318204510** | 164329999 | **250681393** | 160840371 |
| Net income (loss) per share - fully diluted | **0.01** | 0.02 | **0.05** | 0.06 |

---

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

**11. Restricted Share Units**

Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit ("RSU") Plan to grant RSUs to its officers, directors, key employees, and consultants.

The following table summarizes the RSU activity during the nine months ended September 30, 2022:

Schedule of Restricted Share Units

---

| | | |
|:---|:---|:---|
|  |<br><br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**grant date**<br>**fair value**<br>**per share**<br>**(C$)** |
| Unvested as at December 31, 2020 | 988990 | $0.39 |
| Granted | 1348434 | 0.38 |
| Vested | (1516299) | 0.41 |
| Forfeited | (245125) | 0.52 |
| Unvested as at December 31, 2021 | 576000 | $0.62 |
| Granted | 624750 | 0.29 |
| Vested | (774750) | 0.40 |
| Unvested as at September 30, 2022 | 426000 | $0.60 |

---

(i) On April 14, 2020, the Company granted 400,000 RSUs to a certain officer of the Company. The RSUs vest in one fourth increments upon each anniversary of the grant date. The vesting of these RSUs resulted in stock-based compensation of $30,380 and $57,495 for the nine months ended September 30, 2022 and 2021, respectively, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

(ii) On April 20, 2020, the Company granted 200,000 RSUs to a certain director of the Company. The RSUs vest in one fourth increments upon each anniversary of the grant date. The vesting of these RSUs resulted in stock-based compensation of $10,452 and $19,796 for the nine months ended September 30, 2022 and 2021, respectively, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

(iii) On November 16, 2020, the Company granted 168,000 RSUs to certain directors of the Company. The RSUs vest in one fourth increments upon each anniversary of the grant date. The vesting of these RSUs resulted in stock-based compensation of $12,612 and $24,255 for the nine months ended September 30, 2022 and 2021, respectively, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

(iv) On December 6, 2020, the Company granted 220,990 RSUs to a consultant of the Company. The RSUs vest in one sixth increments per month. The vesting of these RSUs resulted in stock-based compensation of $nil and $58,740 for the nine months ended September 30, 2022 and 2021, respectively, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

(v) On January 1, 2021, the Company granted 735,383 RSUs to a consultant of the Company. 245,128 RSUs vested immediately with the remaining RSUs vesting in one twelfth increments per month. During the year ended 2021, a total of 490,258 RSUs vested, and in July 2021, the consultant forfeited the remaining 245,125 unvested RSUs, resulting in a reversal of share-based compensation of $64,870. The vesting of these RSUs resulted in stock-based compensation of $nil and $265,101 for the nine months ended September 30, 2022 and 2021, respectively.

(vi) On July 1, 2021, the Company granted 17,823 RSUs to a consultant of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based compensation of $nil and $4,026 for the nine months ended September 30, 2022 and 2021, respectively.

(vii) On August 5, 2021, the Company granted 595,228 RSUs to consultants of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based compensation of $nil and $100,022 for the nine months ended September 30, 2022 and 2021, respectively.

(viii) On January 10, 2022, the Company granted 500,000 RSUs to a consultant of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based compensation of $122,249 for the nine months ended September 30, 2022, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

(ix) On April 29, 2022, the Company granted 76,750 RSUs to certain consultants of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based compensation of $16,800 for the nine months ended September 30, 2022, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

(x) On June 30, 2022, the Company granted 15,000 RSUs to a consultant of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based compensation of $2,328 for the nine months ended September 30, 2022, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

(xi) On September 29, 2022 the Company granted 33,000 RSUs to two consultants of the Company, vesting immediately. The vesting of these RSUs resulted in stock-based compensation of $2,889 for the nine months ended September 30, 2022, which is included in operation and administration expenses on the condensed interim consolidated statements of income (loss) and comprehensive income (loss).

**12. Deferred Share Units**

Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit ("DSU") Plan to grant DSUs to its directors. The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time.

Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company's common share on the date of redemption in exchange for cash.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

The following table summarizes the DSU activity during the nine months ended September 30, 2022 and 2021:

Schedule of Deferred Share Units

---

| | | |
|:---|:---|:---|
|  |<br><br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**grant date**<br>**fair value**<br>**per share**<br>**(C$)** |
| Unvested as at December 31, 2020 and September 30, 2021 (i) | 7500000 | $1.03 |
| Unvested as at December 31, 2021 | 5625000 | $1.03 |
| Granted (i) | 210000 | 0.20 |
| Vested (ii)(iii) | (3125000) | 1.03 |
| Unvested as at September 30, 2022 | 2710000 | $1.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On
 April 21, 2020, the Company granted 7,500,000 DSUs. The DSUs vest in one fourth increments upon each anniversary of the grant date
 and expire in 5 years. On July 1, 2022 the Company granted 210,000 DSU's, these DSU's vest after 12 months of the issuance
 date. During the nine months ended September 30, 2022, and 2021 the Company recognized $493,060 and $430,964 , respectively, recovery
 of stock-based compensation related to the DSUs, which is included in operation and administration expenses on the condensed interim
 consolidated statements of income (loss) and comprehensive income (loss), as DSU's were settled in cash during the 9 months
 ended September 30, 2022. Upon redemption of the 2,500,000 DSUs (see (iii)) the fair value of the remaining DSU liability at September
 30, 2022 was $363,648 .

(ii) On
 March 31, 2022, the Board approved the early vesting of 625,000 DSUs for one of the Company's Directors.

(iii) During
 the nine months ended September 30, 2022, the director redeemed 2,500,000 DSUs for C$750,000 , and elected to use net proceeds to
 subscribe for 375,000 units in the Company's April 2022 special warrant issuance at C$0.30 per unit, with the balance of the
 redeemed amount payable in cash after applicable withholding tax deductions. The DSU's were therefore all accelerated to vest.

**13. Commitments and Contingencies**

As stipulated in the agreement with the EPA and as described in Note 6, the Company is required to make two types of payments to the EPA and IDEQ, one for historical water treatment cost-recovery to the EPA, and the other for ongoing water treatment. Water treatment costs incurred through December 2021 are payable to the EPA, and water treatment costs incurred thereafter are payable to the IDEQ. The IDEQ (as done formerly by the EPA) invoices the Company on an annual basis for the actual water treatment costs, which may exceed the recognized estimated costs significantly. When the Company receives the water treatment invoices, it records any liability for actual costs over and above any estimates made and adjusts future estimates as required based on these actual invoices received. The Company is required to pay for the actual costs regardless of the periodic required estimated accruals and payments made each year.

On July 28, 2021, a lawsuit was filed in the US District Court for the District of Idaho brought by Crescent Mining, LLC ("Crescent"). The named defendants include Placer Mining, Robert Hopper Jr., and the Company. The lawsuit alleges that Placer Mining and Robert Hopper Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable with the other defendants for unspecified past and future costs associated with the presence of acid mine drainage ("AMD") in the Crescent Mine. The plaintiff has requested unspecified damages. On September 20, 2021, the Company filed a motion to dismiss Crescent's claims against it, contending that such claims are facially deficient. On March 2, 2022, Chief US District Court Judge, David C. Nye granted in part and denied in part the Company's motion to dismiss. The court granted the Company's motion to dismiss Crescent's Cost Recovery claim under CERCLA Section 107(a), Declaratory Judgment, Tortious Interference, Trespass, Nuisance and Negligence claims. These claims were dismissed without prejudice. The court denied the motion to dismiss filed by Placer Mining Corp. for Crescent's trespass, nuisance and negligence claims. Crescent later filed an amended complaint on April 1, 2022. Placer Mining Corp. and Bunker Hill Mining Corp are named as co-defendants. Bunker Hill responded to the amended filing, refuting and denying all allegations made in the complaint except those that are assertions of fact as a matter of public record. The Company believes Crescent's is without merit and intends to vigorously defend itself, as well as Placer Mining Corp. pursuant to the Company's indemnification of Placer Mining Corp in the Sale and Purchase agreement executed between the companies for the Mine on December 15, 2021.

**Bunker Hill Mining Corp.**

**Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)**

**Three and Nine Months Ended September 30, 2022**

**(Expressed in United States Dollars)**

**14. Related party transactions**

The Company's key management personnel have the authority and responsibility for planning, directing and controlling the activities of the Company and consists of the Company's executive management team and management directors.

Schedule of Related Party Transactions

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three<br> Months<br> Ended<br>September 30,<br>2022 | Three<br> Months<br> Ended<br>September 30,<br>2021 | Nine Months<br> Ended<br>September 30,<br>2022 | Nine Months<br> Ended<br>September 30,<br>2021 |
| Consulting fees and wages | $248472 | $276049 | $1832323 | $846604 |

---

At September 30, 2022 and September 30, 2021, $15,000 and $102,235, respectively is owed to key management personnel with all amounts included in accounts payable and accrued liabilities.

On July 1, 2022 the Company issued 210,000 DSU's to a director of the Company.

**15. Subsequent Events**

In October 2022, the Company issued 8,252,940 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ending September 30, 2022.

During October 2022, the Company reported that it has been successful in securing a new payment bond to secure a portion of its cost recovery obligations to the US Environmental Protection Agency (the "US EPA"), resulting in a $3,000,000 improvement in liquidity. As reported in the Company's financial statements for the period ending September 30, 2022, the Company held restricted cash of $9,476,000 as of September 30, 2022 which included $7,001,000 as collateral for a letter of credit to the US EPA. This letter of credit has been reduced to $2,000,001 as a result of a new $5,000,000 payment bond obtained through an insurance company. The collateral for the new payment bond is comprised of a $2,000,000 letter of credit and land pledged by third parties, with whom the Company has entered into a financing cooperation agreement that contemplates a monthly fee of $20,000 (payable in cash or common shares of the Company, at the Company's election). The new payment bond is scheduled to increase to $7,001,000 (from $5,000,000) upon the advance of the multi-metals Stream from Sprott Private Resource Streaming & Royalty Corp. (see the Company's news release of December 20, 2021 for further detail), which would result in a further $2,001,000 improvement in liquidity for the Company from the release of restricted cash.

In October 2022, the Company reported that it awarded a new water management consulting services contract to MineWater LLC ("MineWater") for strategic environmental support at the Bunker Hill Mine through September 30, 2023. Pursuant to the contract, the Company agreed to pay MineWater $60,000 in cash and issue 1,599,150 Restricted Share Units, which were issued and vested immediately to common shares of the Company that are subject to customary resale restrictions in Canada and the United States.

In November 2022, the Company awarded 4,396,741 Restricted Share Units to certain executives in relation to an annual grant under its Long-Term Incentive Plan. The RSUs vest in one-third increments on March 31 of 2023, 2024, and 2025.

*Common Shares*

![](forms-1a_009.jpg)

*PROSPECTUS*

**Roth Capital Partners**

&nbsp;&nbsp;&nbsp;&nbsp; *, 2023*

Through and including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2023 (25 days after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus.

**PART II. INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution.**

The estimated expenses of the offering (assuming all shares are sold), all of which are to be paid by the Registrant, are as follows:

---

| | | |
|:---|:---|:---|
| SEC Registration Fee | US$ | 3000 |
| FINRA Filing Fee | US$ | 2000 |
| Printing Expenses | US$ | 10000 |
| Accounting Fees and Expenses | US$ | 30000 |
| Legal Fees and Expenses | US$ | 260000 |
| Blue Sky Fees/Expenses | US$ | 125000 |
| Transfer Agent Fees | US$ | 10000 |
| **TOTAL** | US$ | 440000 |

---

**Item 14. Indemnification of Directors and Officers.**

The only statute, charter provision, bylaw, contract, or other arrangement under which any controlling person, director or officer of the Registrant is insured or indemnified in any manner against any liability which he may incur in his capacity as such, is as follows:

**Nevada Law**

Section 78.7502 of the Nevada Revised Statutes permits a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he:

&nbsp;&nbsp;&nbsp;&nbsp;(a) is
 not liable pursuant to Nevada Revised Statute 78.138, or

(b) acted
 in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and,
 with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

In addition, Section 78.7502 permits a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he:

&nbsp;&nbsp;&nbsp;&nbsp;(a) is
 not liable pursuant to Nevada Revised Statute 78.138; or

(b) acted
 in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation.

To the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to above, or in defense of any claim, issue or matter, the corporation is required to indemnify him against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense.

Section 78.751 of the Nevada Revised Statutes provides that such indemnification may also include payment by the Company of expenses incurred in defending a civil or criminal action or proceeding in advance of the final disposition of such action or proceeding upon receipt of an undertaking by the person indemnified to repay such payment if he shall be ultimately found not to be entitled to indemnification under Section 78.751. Indemnification may be provided even though the person to be indemnified is no longer a director, officer, employee or agent of the Company or such other entities.

Section 78.752 of the Nevada Revised Statutes allows a corporation to purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise for any liability asserted against him and liability and expenses incurred by him in his capacity as a director, officer, employee or agent, or arising out of his status as such, whether or not the corporation has the authority to indemnify him against such liability and expenses.

Other financial arrangements made by the corporation pursuant to Section 78.752 may include the following:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 creation of a trust fund;

(b) the
 establishment of a program of self-insurance;

(c) the
 securing of its obligation of indemnification by granting a security interest or other lien on any assets of the corporation; and

(d) the
 establishment of a letter of credit, guaranty or surety

No financial arrangement made pursuant to Section 78.752 may provide protection for a person adjudged by a court of competent jurisdiction, after exhaustion of all appeals, to be liable for intentional misconduct, fraud or a knowing violation of law, except with respect to the advancement of expenses or indemnification ordered by a court.

Any discretionary indemnification pursuant to NRS 78.7502, unless ordered by a court or advanced pursuant to an undertaking to repay the amount if it is determined by a court that the indemnified party is not entitled to be indemnified by the corporation, may be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made:

&nbsp;&nbsp;&nbsp;&nbsp;(a) by
 the stockholders;

(b) by
 the board of directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding;

(c) if
 a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent
 legal counsel in a written opinion, or

(d) if
 a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal
 counsel in a written opinion.

The articles of incorporation and bylaws limit director liability and provide for indemnification to the fullest extent provided by Nevada law.

**Item 15 Recent Sales of Unregistered Securities**

On February 25, 2020, the Company issued 3,687,501 shares in a private placement transaction at a purchase price of C $0.56 per share in a transaction that was exempt from registration under Regulation S for transactions outside of the United States.

On May 12, 2020, the Company issued 107,143 shares in a private placement transaction at a purchase price of C $0.56 per share in a transaction that was exempt from registration under Regulation S for transactions outside of the United States.

On August 14, 2020, the Company issued 35,212,142 shares and 35,212,142 warrants in a private placement transaction at a purchase price of C $0.35 per share in a transaction that was exempt from registration under Regulation D for section 4 (a) (2) of the Securities Act of 1933 or Regulation S for transactions outside of the United States.

On August 25, 2020, the Company issued 20,866,292 shares and 20,866,292 warrants in a private placement transaction at a purchase price of C $0.35 per share in a transaction that was exempt from registration under Regulation D for section 4 (a) (2) of the Securities Act of 1933 or Regulation S for transactions outside of the United States.

Sprott Capital Partners LP and Cormark Securities Inc. (the "Agents") acted as agents in connection with the latter two placements and were paid a cash commission, and reimbursed for legal and other expenses, of C$1,164,490 in the aggregate and were issued 3,239,907 compensation warrants ("Broker Warrants") as compensation for their services. Broker Warrants are exercisable into Units at an exercise price equal to C$0.35 until August 31, 2023.

Also, in connection with the placement on August 25, 2020, the Company issued 2,205,714 shares and 2,205,714 warrants in a private placement transaction at a purchase price of C $0.35 per share in a transaction that was exempt from registration under Regulation D for section 4 (a) (2) of the Securities Act of 1933 or Regulation S for transactions outside of the United States to settle $170,093 of accounts payable, $55,676 of accrued liabilities, $28,300 of interest payable, and $331,046 of promissory notes payable.

On October 9, 2020, the Company issued 5,572,980 shares at a deemed price of C$0.50 based on the fair value of the share issued to settle $1,600,000 of convertible loan payable and $500,000 of interest payable.

On February 24, 2021, the Company closed a non-brokered private placement of 19,994,080 Units of the Company at $0.40 per Unit for gross proceeds of approximately C$8,000,000 in a transaction that was exempt from registration under Regulation D for section 4 (a) (2) of the Securities Act of 1933 or Regulation S for transactions outside of the United States. Each Unit consists of one Common Share of the Company and one Common Share purchase warrant. Each whole warrant entitles the holder to acquire one Common Share of the Company at a price of C$0.60 per Common Share for a period of five years.

On March 10, 2021, the Company issued 437,334 shares at a deemed price of C$0.37 for the settlement of RSU's.

On April 22, 2021, the Company issued 77,685 shares at a deemed price of C$0.34 for the settlement of RSU's.

On May 3, 2021, the Company issued 40,854 shares at a deemed price of C$0.30 for the settlement of RSU's.

On May 6, 2021, the Company issued 36,831 shares at a deemed price of C$0.28 for the settlement of RSU's.

On June 2, 2021, the Company issued 40,854 shares at a deemed price of C$0.32 for the settlement of RSU's.

On June 7, 2021, the Company issued 36,831 shares at a deemed price of C$0.33 for the settlement of RSU's.

On July 21, 2021, the Company issued 17,823 shares at a deemed price of C$0.25 for the settlement of RSU's.

On July 27, 2021, the Company issued 40,854 shares at a deemed price of C$0.26 for the settlement of RSU's.

On August 6, 2021, the Company issued 595,228 shares at a deemed price of C$0.25 for the settlement of RSU's.

The Company issued the $6,000,000 Series 1 Convertible Debenture in January 2022 to an institutional investor exempt from registration under the Securities Act by virtue of Section 4(a)(2) thereof. The Convertible Debenture bears interest at an annual rate of 7.5%, payable in cash or shares at the Company's option, matures on March 31, 2025, and is convertible into Common Shares at a price of C$0.30 per Common Share, subject to stock exchange approval.

On April 1, 2022, the Company closed a private placement of 37,849,325 Special Warrants, and concurrent non-brokered private placement of 1,471,644 units of the Company (the "Non-Brokered Units") for aggregate gross proceeds of approximately $11,796,297 (the "Offering"). Pursuant to the Offering, the Company issued 37,849,325 Special Warrants at a price of $0.30 per Special Warrant. Each Special Warrant is automatically exercisable (without payment of any further consideration and subject to customary anti-dilution adjustments) into one unit of the Company (a "Brokered Unit") on the date that is the earlier of: (i) the date that is three business days following the date on which the Company has obtained both (A) a receipt from the Canadian security commission in each of the each of the provinces of Canada in which the purchasers of the Special Warrants were sold for a (final) short-form Prospectus qualifying the distribution of the common stock of the Company ("Common Shares") and common stock purchase warrants of the Company (the "Warrants") issuable upon exercise of the Special Warrants (the "Final Qualification Prospectus"); and (B) notification that the registration statement, of which this Prospectus is a part, has been declared effective by the SEC; and (ii) October 1, 2022. This transaction was exempt from registration pursuant Section 4(a)(2) of the Securities act and/or Regulation S thereunder.

Each Brokered Unit consists of one Common Share and one Warrant. Each whole Warrant will entitle the holder to acquire one Common Share (a "**Warrant Share**") for C$0.37 until April 1, 2025. The Warrants shall also be exercisable on a cashless basis in the event the Registration ‎Statement has not been made effective by the SEC prior to the date of exercise.

In addition, pursuant to the Offering the Company issued 1,471,644 Non-Brokered Units at a price of $0.30 per Non-Brokered Units. Each Non-Brokered Unit consists of one Common Share and one Warrant. Each whole Warrant will entitle the holder to acquire one Warrant Share for C$0.37 until April 1, 2025.

On April 5, 2022, the Company issued 1,315,856 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended March 31, 2022.

On April 29, 2022, the Company issued 768,750 shares at a deemed price of C$0.29 for the settlement of RSU's.

On May 13, 2022, the Company issued 10,416,667 units to Teck Resources Limited in consideration towards the purchase of the Pend Oreille Processing Plant at C$0.245 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one warrant share for C$0.37 until May 13, 2025.

The Company issued the $15,000,000 Series 2 Convertible Debenture in June 2022 to an institutional investor exempt from registration under the Securities Act by virtue of Section 4(a)(2) thereof. The Convertible Debenture bears interest at an annual rate of 10.5%, payable in cash or shares at the Company's option, matures on March 31, 2025, and is convertible into Common Shares at a price of C$0.29 per Common Share, subject to stock exchange approval.

On June 30, 2022, the Company issued 165,000 shares at a deemed price of C$0.20 for the settlement of RSU's.

On June 30, 2022, the Company issued 1,218,000 units to contractors for bonuses. Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one warrant share for C$0.37 until April 1, 2025.

On July 7, 2022, the Company issued 1,975,482 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended June 30, 2022.

On September 29, 2022, the Company issued 33,000 shares at a deemed price of C$0.12 for the settlement of RSU's.

On October 5, 2022, the Company issued 8,252,940 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended September 30, 2022.

On November 3, 2022, the Company issued 1,599,150 shares at a deemed price of C$0.09 for the settlement of RSU's.

On January 10, 2023, the Company issued 6,377,271 common shares in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended December 31, 2022.

During the past three years, the Company issued 8,958,065 RSUs and 8,130,636 options to purchase Common Shares to directors, employees and consultants under our equity incentive plans. These securities were exempt from registration under Section 4(a)(2) of the Securities Act and/or Regulation D or Regulation S thereunder.

**Item 16. Exhibits.**

---

| | |
|:---|:---|
| 3.1 | [Amended and Restated Articles of Incorporation of Liberty Silver Corp. (incorporated by reference to Form S-1 filed on October 27, 2020)](https://www.sec.gov/Archives/edgar/data/1407583/000149315220019971/ex3-8.htm) |
| 3.2 | [Certificate of Change dated May 1, 2019 (incorporated by reference to Form S-1 filed on October 27, 2020)](https://www.sec.gov/Archives/edgar/data/1407583/000149315220019971/ex3-10.htm) |
| 3.3 | [Certificate of Amendment dated September 11, 2020 (incorporated by reference to Form S-1 filed on October 27, 2020)](https://www.sec.gov/Archives/edgar/data/1407583/000149315220019971/ex3-11.htm) |
| 3.4\*\*\* | [Certificate of Amendment dated November 17, 2022](https://www.sec.gov/Archives/edgar/data/1407583/000149315222036378/ex3-4.htm) |
| 3.5\*\*\* | [Certificate of Correction dated December 6, 2022](https://www.sec.gov/Archives/edgar/data/1407583/000149315222036378/ex3-5.htm) |
| 3.6 | [Amended and Restated Bylaws of Liberty Silver Corp., dated December 21, 2012. (included as exhibit to Form 8-K filed with the Securities and Exchange Commission on December 28, 2012)](https://www.sec.gov/Archives/edgar/data/1407583/000113705012000501/exhibit36libertysilveramende.htm) |
| 4.1 | [Warrant Indenture dated as of August 14, 2020 (incorporated by reference to Form S-1 filed on October 27, 2020)](https://www.sec.gov/Archives/edgar/data/1407583/000149315220019971/ex4-1.htm) |
| 4.2\* | [Form of Warrant Certificate dated February 2021](ex4-2.htm) |
| 4.3 | [Underlying Warrant Indenture between the Company and Capital Transfer Agency dated April 1, 2022 (incorporated by reference to the Form S-1 filed on May 2, 2022)](https://www.sec.gov/Archives/edgar/data/1407583/000149315222011674/ex10-13.htm) |
| 5.1\*\* | Opinion regarding Legality |
| 10.1 | [Settlement Agreement with EPA (incorporated by reference to Form 8-K dated January 3, 2022).](https://www.sec.gov/Archives/edgar/data/1407583/000149315222000142/ex10-1.htm) |
| 10.2 | [Purchase Agreement with respect to the Bunker Hill Mine (incorporated by reference to Form 8-K dated January 3, 2022).](https://www.sec.gov/Archives/edgar/data/1407583/000149315222000142/ex10-2.htm) |

---

---

| | |
|:---|:---|
| 10.3 | [Form of Secured Convertible Note (incorporated by reference to the Form 8-K filed on February 3, 2022)](https://www.sec.gov/Archives/edgar/data/1407583/000149315222003146/ex10-1.htm) |
| 10.4 | [Secured Royalty Convertible Debenture (incorporated by reference to the Form 8-K filed on February 3, 2022)](https://www.sec.gov/Archives/edgar/data/1407583/000149315222003146/ex10-2.htm) |
| 10.5\*\*\* | [Series 2 Convertible Debenture](https://www.sec.gov/Archives/edgar/data/1407583/000149315222036378/ex10-5.htm) |
| 10.6\*\*\* | [Sprott Loan Facility](https://www.sec.gov/Archives/edgar/data/1407583/000149315222036378/ex10-6.htm) |
| 10.7\*\*\* | [Second Omnibus Amendment](https://www.sec.gov/Archives/edgar/data/1407583/000149315222036378/ex10-7.htm) |
| 10.8\* | [Form of Placement Agency Agreement](ex10-8.htm) |
| 10.9\* | [Form of Placement Agent's Warrant](ex10-9.htm) |
| 23.1\* | [Consent of MNP LLP](ex23-1.htm) |
| 23.2\* | Consent of J.P. Galda & Co. (Included in Exhibit 5) |
| 23.3\* | [Consent of Peter Kondos.](ex23-3.htm) |
| 23.4\* | [Consent of Robert H. Todd](ex23-4.htm) |
| 23.5\* | [Consent of Scott E. Wilson](ex23-5.htm) |
| 96.1 | [Technical Report and Pre-Feasibility Study for Underground Mining, Milling and Concentration of Lead, Silver and Zinc at the Bunker Hill Mine, Coeur d'Alene Mining District, Shoshone County, Idaho, USA (incorporated by reference to Current Report on Form 8-K filed on November 21, 2022)](https://www.sec.gov/Archives/edgar/data/1407583/000149315222033026/ex99-1.htm) |
| 107\*\*\* | [Filing Fee Table](https://www.sec.gov/Archives/edgar/data/1407583/000149315222033159/ex107.htm) |

---

\* Filed herewith

\*\* To be filed by Amendment

\*\*\* Previously Filed

**Item 17. Undertakings.**

&nbsp;&nbsp;&nbsp;&nbsp;**A.** The
 undersigned Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To
 file, during any period in which offers or sales are being made, a posteffective amendment to this Registration Statement to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) include
 any prospectus required by Section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) reflect
 in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post effective
 amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration
 Statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value
 of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum
 offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) under the Securities
 Act if, in the aggregate, the changes in volume and price represent no more than a 20% change in maximum aggregate offering price
 set forth in the "Calculation of Registration Fee" table in the effective Registration Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) include
 any additional or changed material information with respect to the plan of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That,
 for the purpose of determining any liability under the Securities Act, each such posteffective amendment shall be deemed to be a
 new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed
 to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To
 remove from registration by means of a posteffective amendment any of the securities being registered which remain unsold at the
 termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) For
 purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part
 of a registration statement in reliance upon Rule 430A and contained in the form of prospectus filed by the Registrant pursuant to
 Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of the Registration Statement as of the time
 it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) For
 the purpose of determining any liability under the Securities Act, each posteffective amendment that contains a form of prospectus
 shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities
 at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) For
 the purpose of determining liability under the Securities Act to any purchaser:

Each prospectus filed pursuant to Rule 424(b) under the Securities Act as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A (§§230.430A of this chapter), shall be deemed to be part of and included in the Registration Statement as of the date it is first used after effectiveness. Provided however, that no statement made in a registration statement or prospectus that is part of the Registration Statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the Registration Statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the Registration Statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) For
 the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of securities:

The Registrant undertakes that in a primary offering of securities of the Registrant pursuant to this Registration Statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 preliminary prospectus or prospectus of the Registrant relating to the offering required to be filed pursuant to Rule 424 of this
 chapter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 free writing prospectus relating to the offering prepared by or on behalf of the Registrant or used or referred to by the Registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 portion of any other free writing prospectus relating to the offering containing material information about the Registrant or its
 securities provided by or on behalf of the Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 other communication that is an offer in the offering made by the Registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Insofar
 as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
 of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities
 and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
 In the event that a claim for indemnification against such liabilities (other than the payment by the small business issuer of expenses
 incurred or paid by a director, officer or controlling person of the small business issuer in the successful defense of any action,
 suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
 the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of
 appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
 Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** The
 undersigned Registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For
 purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed
 as part of this Registration Statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant
 to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this Registration Statement as of the time
 it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For
 the purpose of determining any liability under the Securities Act of 1933, each posteffective amendment that contains a form of prospectus
 shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
 at that time shall be deemed to be the initial *bona fide* offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Amendment to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Toronto, Province of Ontario, on January 13, 2023.

---

| | |
|:---|:---|
| Bunker Hill Mining Corp. | Bunker Hill Mining Corp. |
| By: | */s/ Sam Ash\** |
|  | Sam Ash<br> Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed, as of January 13, 2023, by the following persons in the capacities indicated below.

---

| | |
|:---|:---|
| BY: | */s/ Sam Ash\** |
|  | Chief Executive Officer |
| BY: | */s/ Richard Williams\** |
|  | Chairman and Director |
| BY: | */s/ David Wiens* |
|  | Chief Financial Officer and Principal Accounting Officer |
| BY: | */s/ Pamela Saxton\** |
|  | Director |
| BY: | */s/ Mark Cruise\** |
|  | Director |
| BY: | */s/ Dickson Hall\** |
|  | Director |
| BY: | */s/ Cassandra Joseph\** |
|  | Director |

---

---

| | |
|:---|:---|
| \*By: | */s/ David Wiens, Attorney-in-Fact* |

---

## Exhibit 4.2

**Exhibit 4.2** 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE JUNE [10], 2021

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OR UNDER ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD, HEDGED, OR OTHERWISE TRANSFERRED ONLY (A) TO BUNKER HILL MINING CORP., (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 OR 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (C) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER U.S. SECURITIES LAWS, PROVIDED THAT AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO BUNKER HILL MINING CORP. IS PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE US. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS. THE PRESENCE OF THIS LEGEND MAY IMPAIR THE ABILITY OF THE HOLDER HEREOF TO EFFECT "GOOD DELIVERY" OF THE SECURITIES REPRESENTED HEREBY ON A CANADIAN STOCK EXCHANGE.

THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THAT THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT) UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE

**WARRANT certificate**

**BUNKER HILL MINING CORP.**

<br> (incorporated under the laws of State of Nevada)

Warrant Certificate No. W21-I-[●] [●] Warrants to Purchase Common Shares

This warrant (the "**Warrant**") will be void and of no value unless exercised prior to 5:00 p.m. (Toronto time) on the Expiry Time (as defined below).

THIS IS TO CERTIFY THAT, for value received, [**NAME, ADDRESS]** (the "**Holder**"), is entitled to purchase, at any time and from time to time, up to [●] fully paid and non-assessable common shares without par value (the "**Shares**") in the capital of Bunker Hill Mining Corp. (the "**Company**"), upon and subject to the terms and conditions hereinafter referred to. The Holder is entitled to purchase the Shares at and for a price (the "**Exercise Price**") of CAD$0.60 per Share at any time until 5:00 p.m. (Toronto time) on February [9], 2026 (the "**Expiry Time**").

Such right to purchase the Shares may only be exercised by the Holder within the time hereinbefore set out by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) duly
 completing, in the manner indicated, and executing the Subscription Form attached hereto; and

(ii) surrendering
 this Warrant to the Company at the offices of the Company, at 82 Richmond Street East, Suite 200, Toronto, ON M5C 1P1, together with
 cash or a certified cheque payable to the order of the Company in the amount of the aggregate exercise price of the Shares subscribed
 for.

This Warrant and such certified cheque or cash will be deemed to be so surrendered and exercised only upon actual receipt thereof by the Company (the "**Exercise Date**").

Any Shares issued on the exercise of this Warrant will be issued effective on the Exercise Date. Unless otherwise directed, the Company will, within three business days of the Exercise Date, mail or caused to be mailed to the Holder at the address indicated on the Subscription Form attached hereto a certificate or certificates representing such Shares.

The Holder may subscribe for and purchase any lesser number than the whole number of Shares purchasable under this Warrant and, in such event, will be entitled to receive a new Warrant with respect to the remaining balance of the Shares purchasable under this Warrant.

In the event of any alteration of the Shares, including any subdivision, consolidation or reclassification, or in the event of any form of reorganization of the Company, including any amalgamation, merger or arrangement (collectively, a "**Reorganization**"), an adjustment will be made to the terms of the Warrants such that the Holder, upon exercise of any Warrants following the completion of the Reorganization, will be entitled to receive the same number and kind of securities that it would have been entitled to receive as a result of the Reorganization had it exercised its Warrants immediately prior to the Reorganization.

The Company will not effect any Reorganization which could result in a successor to the Company unless prior to or simultaneously with the consummation thereof, the entity succeeding the Company acknowledges in writing that it is bound by and will comply with the provisions set forth in this Warrant Certificate.

If, in case at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Company pays any dividend payable in stock upon the Shares or makes any distribution to the holders of the Shares;

(b) the
 Company offers for subscription pro rata to the holders of its Shares any additional shares of stock of any class or other rights;

(c) there
 is a voluntary or involuntary dissolution, liquidation or winding-up of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 case of any Reorganization;

then, and in any one or more of such cases, the Company will give to the Holder at least 20 days' prior written notice of the date on which the books of the Company will close or a record will be taken for such dividend, distribution or offer of subscription rights, or for determining rights to vote with respect to such dissolution, liquidation or winding-up or Reorganization and, in the case of such dissolution, liquidation or winding-up or Reorganization, at least 20 days' prior written notice of the date when the same will take place. Such notice in accordance with the foregoing clause will also specify, in the case of any such dividend, distribution or offer of subscriptions rights, the date on which the holders of the Shares will be entitled thereto, and such notice in accordance with the foregoing will also specify the date on which the holders of the Shares will be entitled to exchange the Shares for securities or other property deliverable upon such dissolution, liquidation or winding-up or Reorganization, as the case may be. Each such written notice will be given by first class registered mail, postage prepaid, addressed to the Holder at the address of such Holder, as shown on the books of the Company.

In accordance with this certificate, the Company will make adjustments as it considers necessary and equitable acting in good faith. If at any time a dispute arises with respect to adjustments provided for herein, such dispute will be conclusively determined by the auditors of the Company or if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by the directors of the Company and any such determination, absent manifest error, will be binding upon the Company, the Holder and shareholders of the Company. The Company will provide such auditors or accountants with access to all necessary records of the Company and fees payable to such accountants or auditors will be paid by the Company.

To the extent that this Warrant confers the right to purchase a fraction of a Share, such right may be exercised in respect of such fraction only in combination with another Warrant or other Warrants which in the aggregate entitle the Holder to purchase a whole number of Shares. No fractional Shares will be issued or consideration given in lieu thereof.

The Holder may, at any time prior to the Expiry Time, upon surrender hereof to the Company and upon payment of such applicable transfer charges as may be required by the Company from time to time, exchange this Warrant for other Warrants entitling the Holder to subscribe in the aggregate for the same number of Shares as are purchasable under this Warrant at the time of such exchange.

The terms and holding of this Warrant do not constitute the Holder to be a shareholder of the Company or entitle the Holder to any right or interest with respect thereto except as herein expressly provided.

The Company will reserve and set aside sufficient shares in its authorized capital to issue the Shares which may be issued from time to time on exercise of the Warrant.

Any notice to be given hereunder to the Holder will be given in writing and either sent by telecopier, delivered or mailed by prepaid post to the Holder at the address indicated on the Warrant, or at such other address as the Holder may hereafter designate by notice in writing. If such notice is sent by telecopier or is delivered, it will be deemed to have been given at the time of delivery; if such notice is sent by mail, it will be deemed to have been given 48 hours following the date of mailing thereof. In the event of a mail strike or disruption in postal service at or prior to the time a notice is deemed to have been received by mail, such notice will be delivered or sent by telecopier.

This Warrant and the Shares underlying this Warrant have not been and will not be registered under the *United States Securities Act or 1933*, as amended (the "**U.S. Securities Act**") and applicable state securities laws and the Company has no current intention to effect such registration. Warrants may only be exercised within the United States or by or on behalf of a U.S. Person (as defined in Regulation S of the U.S. Securities Act), or a person within the United States and the Shares issued upon exercise of Warrants may be delivered to an address in the United States only if the Warrants and the Shares are registered under the U.S. Securities Act and applicable state securities laws or such exercise is made in accordance with an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws, such exemption to be evidenced by such certificates and other evidence reasonably satisfactory to the Company and the Company shall be entitled to rely upon such confirmation.

This Warrant will be governed by and construed in accordance with the laws of the Province of Ontario.

The Company may execute this Warrant Certificate by electronic signature. To the extent that this Warrant Certificate or any agreement subject to the terms hereof or any amendment hereto is executed, recorded or delivered electronically, it shall be binding to the same extent as though it had been executed on paper with an original ink signature. The fact that this Warrant Certificate is executed, signed, stored or delivered electronically shall not prevent the enforcement of the terms hereof. Physical possession of the original of this Warrant Certificate or any paper copy thereof shall confer no special status to the bearer thereof.

Time will be of the essence hereof.

***[The remainder of this page has been left intentionally blank. Signature page follows.]***

IN WITNESS WHEREOF the Company has caused this Warrant to be signed by its duly authorized officer as of the _____ day of ___________________, 2021.

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| | |
|:---|:---|
| BUNKER HILL MINING CORP. | BUNKER HILL MINING CORP. |
| By: |  |
|  | Authorized Signatory |

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SUBSCRIPTION FORM

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| | |
|:---|:---|
| TO: | **BUNKER HILL MINING CORP.** |
|  | 82 Richmond Street East, Suite 200 |
|  | Toronto, ON M5C 1P1 |

---

_____________________________________________, the holder of the within Warrant, does hereby subscribe for _______________ Shares according to the conditions thereof and herewith makes payment in the amount of CADS$______________ as the purchase price in full for the said number of Shares at the price of CAD$.0.60 per Share until the February [9], 2026. The holder exercising this Warrant certifies that (chose one):

________ (a) It is not a U.S. Person (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and the Warrant is not being exercised on behalf of a U.S. Person.

________ (b) Accompanying this Subscription Form is a written opinion of counsel to the effect that the Warrant and the securities delivered upon exercise thereof have been registered under the U.S Securities Act or are exempt from registration thereunder.

_____________________________________________ hereby directs that the Shares hereby subscribed for be issued and delivered as follows:

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| | | |
|:---|:---|:---|
| **Name(s) in full** | **Address** | **Number of Shares** |

---

DATED this _______ day of ________________________, _________.

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| | |
|:---|:---|
|  | Authorized Signatory |
| Mailing Address |  |

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## Exhibit 10.8

**Exhibit 10.8**

January ♦, 2023

**AGENCY AGREEMENT**

Bunker Hill Mining Corp.

82 Richmond Street East

Toronto, Ontario M5C 1P1

**Attention: Richard Williams, Executive Chairman**

Dear Sir:

The undersigned, Echelon Wealth Partners Inc. ("**Echelon**") and Roth Capital Partners, LLC ("**Roth**" and together with Echelon, the "**Lead Agents**"), as co-lead agents and co-bookrunners, and Laurentian Bank Securities Inc. ("**Laurentian**" and together with the Lead Agents, the "**Agents**") understand that Bunker Hill Mining Corp. (the "**Corporation**") proposes to issue a minimum (the "**Minimum Offering**") of ♦ shares of common stock of the Corporation (the "**Initial Shares**") and up to a maximum (the "**Maximum Offering**") of ♦ Initial Shares at a price of $♦ per Initial Share (the "**Purchase Price**") for aggregate gross proceeds of approximately $7,000,000 in the case of the Minimum Offering and up to approximately $12,000,000 in the case of the Maximum Offering, pursuant to the terms of this agency agreement (this "**Agreement**").

Upon and subject to the terms and conditions herein set forth and in reliance upon the representations and warranties herein contained, the Corporation hereby grants to the Agents an over-allotment option (the "**Over-Allotment Option**") to sell up to an additional 15% of the number of Initial Shares sold pursuant to the Offering (the "**Additional Shares**") at a price equal to the Purchase Price, that is exercisable in whole or in part, and at any time and from time to time, on or before 8:00 a.m. (PST) on the date that is 30 days after and including the Closing Date (as defined below).

Delivery of and payment for any Additional Shares will be made at the time and on the date (each an "**Option Closing Date**") as set out in a written notice of Echelon referred to below, which Option Closing Date may occur on the Closing Date but will in no event occur earlier than the Closing Date, nor earlier than two (2) Business Days (as defined below) or later than five (5) Business Days after the date upon which the Corporation receives a written notice from Echelon setting out the number of Additional Shares to be purchased by the Agents. Any such notice must be received by the Corporation not later than 8:00 a.m. (PST) on the date that is 30 days after the Closing Date. Upon the furnishing of such a notice, the Corporation will be committed to sell and deliver to the Agents in accordance with and subject to the provisions of this Agreement, the number of Additional Shares indicated in such notice.

Upon and subject to the terms and conditions set forth herein, the Corporation hereby appoints the Agents, and the Agents hereby agree to act, as exclusive agents to the Corporation to arrange for the sale of the Offered Shares, on a commercially reasonable "best efforts" agency basis, to Purchasers (as hereinafter defined) resident in the Qualifying Jurisdictions (as hereinafter defined) and in such other jurisdictions outside of Canada and the United States as may be agreed to by the Corporation and the Agents, provided that the Offered Shares are lawfully offered and sold on a basis exempt from the prospectus, registration or similar requirements of such jurisdictions. The offer and sale of the Offered Shares is referred to as the "**Offering**".

Unless the context otherwise requires or unless otherwise specifically stated, all references ‎in this Agreement to (i) the "**Offering**" shall be deemed to include the Over-Allotment ‎Option, and (ii) the "**Offered Shares**" shall mean, collectively, the Initial Shares and the ‎Additional Shares. ‎

The Agents further understand that the Corporation has prepared and filed the Preliminary Prospectus (as hereinafter defined) and that the Corporation has prepared and will file, concurrently with the execution of this Agreement, the Final Prospectus (as hereinafter defined) with respect to the qualification of the Offered Shares for distribution to the public in each of the Qualifying Jurisdictions (as hereinafter defined) and all other necessary documents in order to qualify the Offered Shares for distribution to the public in each of the Qualifying Jurisdictions. It is understood and agreed that the Agents are under no obligation to purchase any of the Offered Shares, although the Agents may subscribe for Offered Shares if they so desire.

The Corporation has prepared and filed with the Commission under the U.S. Securities Act a registration statement on Form S-1 (File No. 333-268505), including a prospectus, registering the Offered Shares. Such registration statement, as amended at the time it becomes effective, including the information (if any) deemed pursuant to Rule 430A under the Securities Act to be part of the registration statement at the time of its effectiveness ("**Rule 430 Information**"), is referred to herein as the "**U.S. Registration Statement**;" and as used herein, the term "**U.S. Preliminary Prospectus**" means each prospectus included in such U.S. Registration Statement (and any amendments thereto) before it becomes effective, any prospectus filed with the Commission pursuant to Rule 424(a) under the U.S. Securities Act and the prospectus included in the U.S. Registration Statement at the time of its effectiveness that omits Rule 430A Information, and the term "**U.S. Final Prospectus**" means the prospectus in the form first used to confirm sales of the Offered Shares. If the Corporation has filed or files an abbreviated registration statement pursuant to Rule 462(b) under the U.S. Securities Act (the "**Rule 462 Registration Statement**"), then any reference herein to the term U.S. Registration Statement shall include such Rule 462 Registration Statement.

For purposes of this Agreement, all references to the U.S. Registration Statement, the U.S. Final Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to its EDGAR. All references in this Agreement to amendments or supplements to the U.S. Registration Statement or the Prospectus shall be deemed to mean and include the subsequent filing of any document under the U.S. Exchange Act. which is deemed to be incorporated therein by reference therein or otherwise deemed by the rules and regulations thereof to be a part thereof.

In consideration of the services to be rendered by the Agents in connection with the Offering hereunder, the Corporation agrees to pay to the Agents at the Closing Time (as hereinafter defined) a cash commission equal to 6.0% of the gross proceeds of the Offering at the Closing Time (the "**Agents' Fee**"). As additional compensation for the services rendered by the Agents in connection with the Offering, the Corporation shall issue to the Agents broker's warrants (the "**Broker's Warrants**") exercisable to purchase that number of shares of common stock of the Corporation (each, a "**Broker Share**") as is equal to 6.0% of the aggregate number of Offered Shares issued pursuant to the Offering. Each Broker's Warrant will entitle the holder thereof to acquire one Broker Share at $♦ per Broker Share, subject to adjustment in certain customary events, at any time prior to 5:00 p.m. (PST) on the date which is 24 months from the Closing Date. At the Closing Time, the Corporation shall execute and deliver to the Agents certificates evidencing the Broker's Warrants (the "**Broker Warrant Certificates**") to which the Agents is entitled, in a form to be agreed upon by the Agents and the Corporation, each acting reasonably.

The Corporation shall be entitled to designate in writing a list of purchasers (the "**President's List**") who may purchase Offered Shares under the Offering. Notwithstanding the foregoing, the Agents' Fee payable by the Corporation to the Agents for subscriptions received from the President's List Purchasers shall be reduced to 3.0% of the aggregate gross proceeds from President's List Purchasers and the number of Broker's Warrants shall be reduced to 3.0% of the number of Special Warrants sold to the President's List Purchasers. Additionally, the Corporation shall be entitled to sell Offered Shares to Valuestone Global Resources Fund I LP (or an affiliate of), management, the board and insiders of the Corporation (the "**Company Purchasers**"). Notwithstanding the foregoing, the Agents' Fee payable by the Corporation to the Agents for subscriptions received from the Company Purchasers shall be reduced to 2.0% of the aggregate gross proceeds from Company Purchasers and the number of Broker's Warrants shall be reduced to 2.0% of the number of Offered Shares sold to the Company Purchasers.

The terms and conditions relating to the purchase and sale of the Offered Shares are as follows:

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| | |
|:---|:---|
| **1** | **<u>Definitions and Interpretation</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 this Agreement:

"**affiliate**" shall have the meaning ascribed thereto in the *Business Corporations Act* (Ontario);

"**Agents' Counsel**" means DLA Piper (Canada) LLP;

"**Agents' Expenses**" has the meaning given to the term in Section 11;

"**Agents' Fee**" has the meaning ascribed to such term on the second page of this Agreement;

"**Agreement**" means this agency agreement, including all schedules hereto, as it may be amended, restated or supplemented;

"**Applicable Securities Laws**" means the Securities Laws in each of the Qualifying Provinces, the federal laws of the United States, and laws of the states of the United States where the securities are offered, as applicable;

"**Auditors**" means MNP LLP, the auditors of the Corporation, or such other duly appointed and qualified auditor appointed by the Corporation from time-to-time;

"**Blue Sky Registration**" has the meaning given to the term in Section 2(d);

"**Broker Share**" has the meaning ascribed to such term on the second page of this Agreement;

"**Broker Warrant Certificates**" has the meaning ascribed to such term on the second page of this Agreement;

"**Broker's Warrants**" has the meaning ascribed to such term on the second page of this Agreement;

"‎**Bunker Hill Mine**" means the mine located near the town of Kellogg, Idaho, as described in the Bunker Hill Technical Report;

"**Bunker Hill Project**" means the mining and processing operations at the Bunker Hill Mine located near the town of Kellogg, Idaho; ‎

‎"**Bunker Hill Technical Report**" means the amended and restated technical report dated September 30, 2022 and filed on SEDAR on November 21, 2022, titled "Technical Report and Pre-Feasibility Study for Underground Mining, Milling and Concentration of Lead, Silver and Zinc at the Bunker Hill Mine, Coeur d'Alene Mining District, Shoshone County, Idaho, USA", effective August 29, 2022, prepared by Scott Wilson, C.P.G., of Resource Development Associates Inc., Robert Todd, P.E., of Minetech USA LLC, and Peter Kondos, Ph.D., of YaKum Consulting Inc.; ‎

"**Business**" means the business carried on by the Corporation and the Subsidiary as described in the Final Prospectus, including the restart and development of the Bunker Hill Mine;

"**Business Data**" means all data and personal information accessed, processed, collected, stored or disseminated by the Corporation or the Subsidiary;

"**Business Day**" means a day, other than a Saturday, a Sunday or a day on which chartered banks are not open for business in Toronto, Ontario;

"**Closing**" means the completion of the issue and sale by the Corporation of the Offered Shares pursuant to this Agreement;

"**Closing Date**" means the date of Closing;

"**Closing Time**" means 5:00 a.m. (Vancouver time) on the Closing Date or Option Closing Date, as applicable, or any other time on the Closing Date or Option Closing Date, as applicable, as may be agreed to by the Corporation and the Lead Agents, each acting reasonably;

"**Commission**" means the United Stated Securities and Exchange Commission;

"**Common Share**" means one share of common stock in the capital of the Corporation as presently constituted;

"**Company Purchaser**" has the meaning ascribed to such term on the second page of this Agreement;

"**Corporation**" means Bunker Hill Mining Corp. and includes any successor corporation to or of the Corporation;

"**CSE**" means the Canadian Securities Exchange;

"**Debt Instrument**" means any loan, bond, debenture, promissory note or other instrument evidencing indebtedness (demand or otherwise) for borrowed money or other liability, including any convertible debentures issued by the Corporation;

"**distribution**", "**material change**", "**material fact**" and "**misrepresentation**" shall have the respective meanings ascribed thereto in the *Securities Act* (Ontario);

"**Documents Incorporated by Reference**" means all financial statements, management information circulars, annual information forms, material change reports, Marketing Materials, business acquisition reports or other documents issued by the Corporation, whether before or after the date of this Agreement, that are required by Applicable Securities Laws to be incorporated by reference into the Final Prospectus;

"**EDGAR**" means Electronic Data Gathering, Analysis and Retrieval System;

"**Engagement Letter**" means the letter agreement dated as of November 18, 2022 between the Corporation and Echelon relating to the Offering;

"**Environmental Laws**" means all applicable federal, provincial, state, local, municipal or foreign statute, law, rule, regulation, ordinance, code, legally binding policy or rule of common law or civil law or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, occupational health and safety, product safety or liability, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of Hazardous Materials or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials;

"**Environmental Permits**" includes all orders, permits, certificates, approvals, consents, registrations and licences issued by any authority of competent jurisdiction under any Environmental Law;

"**Exempt Plans**" means trusts governed by registered retirement savings plans, registered retirement income funds, registered disability savings plans, deferred profit sharing plans, registered education savings plans and tax-free savings accounts, each as defined in the *Income Tax Act* (Canada);

"**Final Prospectus**" means the (final) short form prospectus, including all of the Documents Incorporated by Reference, prepared by the Corporation and qualifying the distribution of the Offered Shares and the Broker's Warrants in the Qualifying Provinces;

"**Financial Statements**" has the meaning given to the term in Section 6(bb);

"**Governmental Body**" means any federal, provincial, state, municipal, county or regional governmental or quasi-governmental authority, domestic or foreign, and includes any ministry, department, court, tribunal, arbitral body, commission, bureau, board, administrative or other agency or regulatory body or instrumentality thereof, any quasi-governmental body or private body exercising regulatory, expropriation or taxing authority under or for the account, if any, of the foregoing and any self-regulatory authority and, for greater certainty, includes the Securities Commissions;

"**Hazardous Materials**" means chemicals, pollutants, contaminants, asbestos, wastes, toxic substances, hazardous substances, petroleum or petroleum products;

"**including**" means including, without limitation;

"**Intellectual Property**" means all trade or brand names, business names, trademarks, service marks, copyrights, patents, patent rights, licenses, industrial designs, know-how (including trade secrets and other unpatented or unpatentable proprietary or confidential information, systems or procedures), computer software, inventions, designs and other industrial or intellectual property of any nature whatsoever;

"**Investor Presentation**" means the investor presentation of the Corporation dated November 21, 2022 and filed on SEDAR by the Corporation on November 21, 2022;

"**Laws**" means any and all applicable: (i) laws, constitutions, treaties, statutes, codes, ordinances, orders, decrees, rules, regulations and by-laws; (ii) judgments, orders, writs, injunctions, decisions, awards and directives of any Governmental Body; and (iii) to the extent that they have the force of law, policies, guidelines, notices and protocols of any Governmental Body;

"**Leased Premises**" means each premises which the Corporation or the Subsidiary occupies as tenant;

"**Liens**" means any encumbrance or title defect of whatever kind or nature, regardless of form, whether or not registered or registrable and whether or not consensual or arising by law (statutory or otherwise), including any mortgage, lien, charge, pledge or security interest, whether fixed or floating, or any assignment, lease, option, right of pre-emption, privilege, encumbrance, easement, servitude, right of way, restrictive covenant, right of use or any other right or claim of any kind or nature whatever which affects ownership or possession of, or title to, any interest in, or the right to use or occupy such property or assets;

"**Marketing Materials**" has the meaning ascribed thereto in National Instrument 41-101 – *General Prospectus Requirements*;

"**Material Adverse Effect**" means any change (including a decision to implement such a change made by the board of directors or by senior management who believe that confirmation of the decision of the board of directors is probable), event, violation, inaccuracy, circumstance, development or effect that is materially adverse to the business, assets (including intangible assets), capitalization, liabilities (contingent or otherwise), condition (financial or otherwise), prospects or results of operations of the Corporation and the Subsidiary, taken as a whole, whether or not arising in the ordinary course of business;

"**Material Contract**" means any material Debt Instrument, indenture, contract, commitment, agreement (written or oral), instrument, lease, joint operating agreement, option, joint venture agreement or other document, including license agreements and agreements relating to real property or the Intellectual Property, to which the Corporation or the Subsidiary are a party or by which any one of them are bound;

"**NI 43-101**" means National Instrument 43-101 – *Standards of Disclosure for Mineral Projects*;

"**Offered Shares**" has the meaning ascribed to such term on the first page of this Agreement;

"**Offering**" has the meaning ascribed to such term on the first page of this Agreement;

"**Offering Documents**" means, collectively, the Preliminary Prospectus, the Final Prospectus, the U.S. Preliminary Prospectus, the U.S. Final Prospectus, the U.S. Registration Statement, the Blue Sky Registrations, the Marketing Materials and any Supplementary Material;

"**OTC**" means the U.S. financial trading market managed by the OTC Markets Group;

"**Passport System**" means the system for review of prospectus filings set out in Multilateral Instrument 11-102 – *Passport System* and National Policy 11-202 – *Process for Prospectus Reviews in Multiple Jurisdictions*;

"**Permitted Liens**" means any of the following that do not adversely affect the present use or value of the property affected thereby: (i) liens for taxes not yet due, (ii) other assessments and governmental charges not yet due, (iii) liens that can be (but have not yet been) filed by builders, mechanics, repairers or similar Persons in respect of services performed or goods provided in the ordinary course of business, (iv) easements, covenants, rights of way and other restrictions that are registered as of the date of this Agreement, and (v) transfer restrictions imposed on securities by applicable Law;

"**Person**" means an individual, a firm, a corporation, a syndicate, a partnership, a trust, an association, an unincorporated organization, a joint venture, an investment club, a government or an agency or political subdivision thereof and every other form of legal or business entity of any nature or kind whatsoever;

"**Personnel**" has the meaning given to that term in Section 13(a);

"**Preliminary Prospectus**" means the preliminary short form prospectus of the Corporation dated November 21, 2022, including all of the Documents Incorporated by Reference, prepared by the Corporation and relating to the distribution of the Offered Shares and for which a receipt has been issued by the Principal Regulator and a deemed receipt has been issued by the Securities Regulators in each of the Qualifying Provinces pursuant to the Passport System;

"**President's List**" has the meaning ascribed to such term on the second page of this Agreement;

"**President's List Purchaser**" means a Purchaser designated by the Corporation as belonging to the President's List;

"**Principal Regulator**" means the Ontario Securities Commission;

‎"**Project Rights**" has the meaning ascribed thereto in Section (vv);‎

‎"**Properties**" means all mineral properties in which the Corporation or the ‎Subsidiary has a direct or indirect ownership interest, including, without limitation, the ‎Bunker Hill Project;‎

"**Public Record**" means all information filed by or on behalf of the Corporation with a securities commission that is accessible to the public on <u>www.sedar.com</u>;

"**Purchasers**" means, collectively, each of the purchasers of the Offered Shares pursuant to the Offering including, if applicable, the Agents;

"**Qualifying Provinces**" means, collectively, all of the provinces of Canada, other than Quebec;

"**Qualifying Jurisdictions**" means the Qualifying Provinces, the United States, and the U.S. Registration States;

"**Regulation S**" means Regulation S adopted by the SEC under the U.S. Securities Act;

**"Rule 430 Information"** has the meaning ascribed to such term on the second page of this Agreement;

**"Rule 462 Registration Statement"** has the meaning ascribed to such term on the second page of this Agreement;

"**SEC**" means the United States Securities and Exchange Commission;

"**Securities Commissions**" means, collectively, the Principal Regulator and the securities regulatory authorities in the Qualifying Provinces, the SEC, and the state regulatory securities authorities in the United States;

"**Securities Laws**" means, unless the context otherwise requires, all applicable securities laws in each of the Qualifying Provinces, each of the federal securities laws of the United States under the U.S. Securities Act and U.S. Exchange Act, including the rules and regulations thereunder, U.S. state securities laws and blue sky laws (including of the U.S. Registration States) or otherwise and the applicable securities laws of all other jurisdictions in which the Offered Shares are offered for sale, as applicable, and the respective regulations made thereunder, together with applicable published fee schedules, prescribed forms, policy statements, national or multilateral instruments, orders, blanket rulings and other regulatory instruments of the securities regulatory authorities in such jurisdictions;

"**Securities Regulators**" means, collectively, the Securities Commissions and the securities regulators or other securities regulatory authorities in any jurisdictions in which the Offered Shares are offered for sale;

"**Selling Firm**" has the meaning given to the term in Section 2(b);

"**Sprott**" means Sprott Private Resource Streaming and Royalty Corp.;

"**Standard Listing Filings**" has the meaning given to the term in Section 4(a)(iv);

"**Subsequent Disclosure Documents**" means any financial statements, management information circulars, annual information forms, material change reports, Marketing Materials, business acquisition reports or other documents issued by the Corporation after the date of this Agreement that are required by Applicable Securities Laws to be incorporated by reference in the Final Prospectus;

"**Subsidiary**" has the meaning given to the term in Section 6(b);

"**Supplementary Material**" means, collectively, any amendment to the Final Prospectus, U.S. Final Prospectus and any amendment or supplemental prospectus or ancillary materials that may be filed by or on behalf of the Corporation under Applicable Securities Laws relating to the distribution of the Offered Shares;

"**Taxes**" has the meaning given to the term in Section 6(ee);

"**Term Sheet**" means the term sheet for the Offering dated November 21, 2022;

"**Transaction Documents**" has the meaning given to the term in Section 6(bbb);

"**United States**" or "**U.S.**" means the United States of America, its territories and possessions and any State of the United States;

‎"**U.S. Affiliate**" of the Agent means the U.S. registered broker-deal affiliate of the Agent;‎

‎"**U.S. Exchange Act**" means the United States Exchange Act of 1934, as amended;‎

"**U.S. Final Prospectus**" has the meaning ascribed to such term on the second page of this Agreement.

"**U.S. GAAP**" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board and rules promulgated by the SEC and its related interpretations or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination;

"**U.S. Person**" means a U.S. person as that term is defined in Rule 902(k) of Regulation S of the U.S. Securities Act‎;

"**U.S. Preliminary Prospectus**" has the meaning ascribed to such term on the second page of this Agreement;

"**U.S. Registration Statement**" has the meaning ascribed to such term on the second page of this Agreement; and

"**U.S. Securities Act**" means the United States' Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder‎.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Prospectus Defined Terms.* Capitalized terms used but not defined herein have the meanings ascribed to them in the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Divisions and Headings.* The division of this Agreement into Sections, subsections, paragraphs and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. Unless something in the subject matter or context is inconsistent therewith, references herein to Sections, subsections, paragraphs and other subdivisions are to Sections, subsections, paragraphs and other subdivisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Number and Gender.* All words and personal pronouns relating thereto shall be read and construed as the number and gender of the party or parties referred to in each case required and the verb shall be construed as agreeing with the required word and/or pronoun.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Currency.* Any reference in this Agreement to $ or to dollars shall refer to the lawful currency of Canada, unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Knowledge.* The phrases "knowledge of the Corporation" or "to the Corporation's knowledge" or similar expressions, mean the actual knowledge of Richard Williams, Executive Chairman, Sam Ash, Chief Executive Officer and/or David Wiens, Chief Financial Officer of the Corporation after due inquiry.

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| | |
|:---|:---|
| **2** | **<u>The Offering</u>** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 sale of the Offered Shares to the Purchasers shall be effected in a manner that is in compliance
 with Securities Laws and upon the terms set out in the Final Prospectus, U.S. Final Prospectus,
 the Blue Sky Registrations (as defined below), and in this Agreement. The Agents will use
 commercially reasonable best efforts to arrange for Purchasers for the Offered Shares in
 the Qualifying Jurisdictions and in those jurisdictions outside of Canada and United States
 as may be agreed upon by the Corporation and the Agents, each acting reasonably, in connection
 with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation agrees that the Agents shall have the right to invite one or more investment
 dealers (each, a "**Selling Firm**") to form a selling group to participate
 in the soliciting of offers to purchase the Offered Shares. The Agents have the exclusive
 right to control all compensation arrangements between the members of the selling group.
 The Corporation grants all of the rights and benefits of this Agreement to any Selling Firm
 so appointed by the Agents and appoints the Agents as trustee of such rights and benefits
 for such Selling Firms, and the Agents hereby accept such trust and agree to hold such rights
 and benefits for and on behalf of such Selling Firms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Agents shall ensure that any Selling Firm appointed pursuant to the provisions of subsection
 2(b), if any, shall: (i) be compensated by the Agents from their compensation hereunder;
 and (ii) agree to comply with the covenants and obligations given by the Agents herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Corporation represents and warrants to the Agents that the Corporation has prepared and filed
 the Preliminary Prospectus, U.S. Preliminary Prospectus, Blue Sky Registrations and
 other related documents (including, without limitation, any Marketing Materials) and has
 obtained pursuant to the Passport System a receipt or deemed receipt therefor in each of
 the Qualifying Provinces and acceptance of the U.S. Preliminary Prospectus on EDGAR or
 the applicable state security regulator in the case of the Blue Sky Registrations. Further,
 the Corporation represents and warrants that the Corporation has prepared and filed the Registration
 Statement in conformity with the requirements of applicable United States federal securities
 laws, including the U.S. Preliminary Prospectus and such amendments and supplements thereto
 as may have been required to the date of this Agreement. The Corporation represents and
 warrants that the Corporation has taken such action as the Corporation has reasonably determined
 is necessary in order to obtain an exemption for, or to qualify the Offered Shares and
 the Broker Shares, under applicable securities or the blue sky laws of the states of the
 United States set forth on <u>Exhibit A</u> hereto (each such state, a "**U.S. Registration State** "). The Corporation shall promptly
 notify the Agents of the effectiveness of registration or exemption of each U.S. Registration
 State as such is obtained (each, a "**Blue Sky Registration** ").
 The Corporation has prepared and will promptly, after the execution and delivery of this
 Agreement, file the Final Prospectus in each of the Qualifying Provinces, the U.S. Final
 Prospectus with the SEC, and the U.S. Final Prospectus and Blue Sky Registrations and all
 necessary other materials with the SEC and U.S. Registration States, as applicable. Further,
 the Corporation will use its best efforts to obtain a receipt under the Passport System for
 the Final Prospectus and effectiveness of the Registration Statement in the U.S. and the
 effectiveness of the Blue Sky Registrations in order to qualify the Offered Shares and the
 Broker's Warrants for distribution in each of the Qualifying Provinces and in the United
 States and the U.S. Registration States, as applicable and until the day on which the distribution
 of the Offered Shares and the Broker's Warrants is completed, the Corporation will
 promptly take, or cause to be taken, all additional steps and proceedings that may from time
 to time be required under Applicable Securities Laws to qualify the distribution of the Offered
 Shares and the Broker's Warrants in the Qualifying Provinces and with the SEC and in
 the U.S. Registration States, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Agents shall, upon the Corporation obtaining a receipt for the Final Prospectus and upon
 the filing of the U.S. Final Prospectus, deliver one copy of the Final Prospectus and U.S.
 Final Prospectus (together with any Supplementary Material and materials related to Blue
 Sky Registrations, if any) to all persons resident in the Qualifying Provinces, the United
 States, and the U.S. Registration States, as applicable, who are to acquire the Offered Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Corporation has permitted the Agents to review the Final Prospectus and U.S. Final Prospectus
 and to conduct such due diligence investigations necessary to fulfil its obligations as agents
 under applicable Securities Laws and in order to enable the Agents to responsibly execute
 the certificate in the Final Prospectus required to be executed by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Corporation and the Agents covenant and agree:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 to provide any potential investor of Offered Shares with any Marketing Materials unless a
 template version of such Marketing Materials has been filed by the Corporation with the Securities
 Commissions on or before the day such Marketing Materials are first provided to any potential
 investor of Offered Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not
 to provide any potential investor with any materials or information in relation to the Offering
 or the Corporation other than: (A) such Marketing Materials that have been approved and filed
 in accordance with this Section 2; (B) the Preliminary Prospectus, the Final Prospectus,
 the U.S. Preliminary Prospectus, the U.S. Final Prospectus or any Supplementary Material;
 and (C) any "standard term sheets", as defined in NI 41-101, approved in writing
 by the Corporation and the Agents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that
 any Marketing Materials approved and filed in accordance with this Section 2 and any standard
 term sheets approved in writing by the Corporation and the Agents shall only be provided
 to potential investors in the Qualifying Jurisdictions where the provision of such Marketing
 Materials or standard term sheets does not contravene Applicable Securities Laws.

---

| | |
|:---|:---|
| **3** | **<u>Distribution and Certain Obligations of the Agents.</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Agents have complied with and shall, and shall require any Selling Firm to agree to, comply
 with the Securities Laws in connection with the distribution of the Offered Shares and shall
 offer the Offered Shares upon the terms and conditions set out in the Final Prospectus, U.S.
 Final Prospectus, the Blue Sky Registrations, and this Agreement. The Agents have and shall,
 and shall require any Selling Firm to, directly offer for sale to the public and sell the
 Offered Shares only in those jurisdictions where they may be lawfully offered for sale. The
 Agents shall (i) use commercially reasonably best efforts to complete and cause each Selling
 Form to complete the distribution of the Offered Shares as soon as reasonably practicable;
 and (ii) promptly notify the Corporation when, in their opinion, the Agents and the Selling
 Firms have ceased distribution of the Offered Shares and provide a breakdown of the number
 of Offered Shares distributed in each of the Qualifying Jurisdictions (and any other applicable
 jurisdiction where the Offered Shares have been distributed) where such breakdown is required
 for the purpose of calculating fees payable to Securities Regulators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Agents shall, and shall require any Selling Firm to agree to, distribute the Offered Shares
 in a manner which complies with and observes all Applicable Securities Laws and any other
 applicable laws and regulations, including, for greater certainty, all Securities Laws in
 each jurisdiction into and from which they may offer to sell the Offered Shares or distribute
 the Final Prospectus, U.S. Final Prospectus, Blue Sky Registrations, or any Supplementary
 Material in connection with the distribution of the Offered Shares and will not, directly
 or indirectly, offer, sell or deliver any Offered Shares or deliver the Final Prospectus,
 U.S. Final Prospectus, Blue Sky Registrations, or any Supplementary Material to any person
 in any jurisdiction other than, subject to Section 1(d) below, in the Qualifying Jurisdictions,
 unless agreed to in accordance with Section 3(a) hereof and completed in a manner which will
 not require the Corporation to comply with the registration, prospectus, filing, continuous
 disclosure or other similar requirements under the applicable Securities Laws of such other
 jurisdictions or pay any additional governmental filing fees which relate to such other jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For
 the purposes of this Section 3, the Agents and any Selling Firm shall be entitled to assume
 that the Offered Shares are qualified for distribution in any Qualifying Jurisdictions where
 a receipt or similar document for the Final Prospectus, U.S. Final Prospectus, or Blue Sky
 Registrations, as applicable shall have been obtained or deemed to have been obtained from
 the applicable Securities Regulators (including a receipt from the Principal Regulator issued
 under the Passport System evidencing that a deemed receipt has been issued for the Final
 Prospectus by each of the Securities Regulators in the Qualifying Provinces and effectiveness
 of the Registration Statement has been obtained from the SEC and any U.S. Registration States
 securities regulators) following the filing of the Final Prospectus unless otherwise notified
 in writing.

---

| | |
|:---|:---|
| **4** | **<u>Deliveries on Filing and Related Matters</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation shall deliver to the Agents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 copy of the Final Prospectus, the U.S. Final Prospectus, the Registration Statement, and
 the Blue Sky Registrations signed and certified by the Corporation and Agents as required
 by Applicable Securities Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 copy of any other document filed with, or delivered to, Securities Regulators under applicable
 Securities Laws in connection with the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 "long-form" comfort letter dated the date of the Final Prospectus and U.S. Final
 Prospectus, in form and substance satisfactory to the Agents, acting reasonably, addressed
 to the Agents and the directors of the Corporation from the Auditors with respect to financial
 and accounting information relating to the Corporation contained in the Final Prospectus
 and U.S. Final Prospectus, which letter shall be based on a review by the Auditors within
 a cut-off date of not more than two Business Days prior to the date of the letter and which
 letter shall be in addition to the Auditors' consent letter and any comfort letter
 addressed to the Securities Regulators in the Qualifying Jurisdictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) prior
 to filing of the Final Prospectus, U.S. Final Prospectus, and Blue Sky Registrations with
 Securities Regulators, copies of correspondence indicating that the application for the listing
 and posting for trading on the CSE of (i) the Offered Shares, and (ii) the Broker Shares
 issuable upon exercise of the Broker's Warrants, has been made, subject only to satisfaction
 by the Corporation of customary post-closing filings required by the CSE and OTC (the "**Standard Listing Filings** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation has delivered to the Agents signed copies of all Supplementary Material, if any.
 The Corporation has delivered to the Agents, with respect to such Supplementary Material
 or Subsequent Disclosure Document, to the extent that such Supplementary Material contains
 any financial and accounting information, a comfort letter substantially similar to that
 referred to in subsection 4(a)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Corporation confirms that it has or will deliver to the Agents copies of the Preliminary
 Prospectus, the U.S. Preliminary Prospectus, the Final Prospectus, the U.S. Final Prospectus,
 the Registration Statement, and Blue Sky Registrations signed as required by Applicable Securities
 Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During
 the period commencing on the date hereof and until completion of the distribution of the
 Offered Shares, the Corporation will promptly provide to the Agents drafts of any press releases
 of the Corporation for review by the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Corporation has filed with the CSE, OTC, SEC and state securities regulators, as applicable,
 all necessary documents and shall take or cause to be taken all necessary steps to ensure
 that, prior to the filing of the Final Prospectus and U.S. Final Prospectus with Securities
 Regulators, the Corporation has obtained all necessary approvals for: (i) the Offered Shares;
 and (ii) the Broker Shares issuable upon exercise of the Broker's Warrants, to be conditionally
 listed on the CSE, subject only to the Standard Listing Filings and proper registration of
 the Offered Shares with the SEC, as applicable.

---

| | |
|:---|:---|
| **5** | **<u>Material Changes</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation will promptly inform the Agents in writing during the period prior to the completion
 of the distribution of the Offered Shares of the full particulars of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 material change (actual, anticipated, threatened, contemplated, or proposed by, to, or against)
 in the condition (financial or otherwise), assets, liabilities (contingent or otherwise),
 business, affairs, operations, properties, capital or prospects of the Corporation and the
 Subsidiary, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 material fact that has arisen or has been discovered and would have been required to have
 been stated in any of the Offering Documents had that fact arisen or been discovered on,
 or prior to, the date of the Offering Documents, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 legislative, regulatory or administrative policy or guideline changes which, if implemented
 could have a material effect upon the Corporation's operations or the manner in which
 the Corporation carries on business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 change in any material fact or any misstatement of any material fact contained in any of
 the Offering Documents, or the existence of any new material fact, in each case which is
 of a nature as to render any of the Offering Documents misleading or untrue in any material
 respect or would result in a misrepresentation therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation shall comply with the prospectus amendment requirements of Section 6.6 of National
 Instrument 41-101 – *General Prospectus Requirements* and Section 57 of the *Securities Act* (Ontario), and the Corporation will prepare and file promptly any Supplementary Material
 which may be necessary and will otherwise comply with all legal requirements necessary to
 continue to qualify the Offered Shares for distribution in each of the Qualifying Jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 addition to the provisions of subsections 5(a) and 5(b) hereof, the Corporation shall in
 good faith discuss with the Agents any change, event or fact contemplated in subsections
 5(a) and 5(b) which is of such a nature that there is or could be reasonable doubt as to
 whether notice should be given to the Agents under subsection 5(a) hereof and shall consult
 with the Agents with respect to the form and content of any Supplementary Material proposed
 to be filed by the Corporation, it being understood and agreed that no such amendment or
 other Supplementary Material shall be filed with any Securities Regulator prior to the review
 thereof by the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 during the period of distribution of the Offered Shares there shall be any change in applicable
 Securities Laws which, in the opinion of the Agents, acting reasonably, requires the filing
 of any Supplementary Material, upon written notice from the Agents, the Corporation shall,
 to the satisfaction of the Agents, acting reasonably, promptly prepare and file any such
 Supplementary Material with the appropriate Securities Regulators where such filing is required.

---

| | |
|:---|:---|
| **6** | **<u>Representations and Warranties of the Corporation</u>** |

---

The Corporation represents and warrants to the Agents and the Purchasers, and acknowledges that they are relying upon such representations and warranties and covenants in purchasing the Offered Shares, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Corporation is a corporation duly incorporated and validly existing under the laws of the
 Nevada and has all necessary corporate power and authority to own, lease and operate its
 properties and assets, to carry on the Business as it is currently conducted and proposed
 to be conducted, to enter into and perform its obligations under this Agreement, and any
 other material agreement to which it is a party, to undertake the Offering and all other
 transactions contemplated herein and is not in default of its corporate filings, and, to
 the knowledge of the Corporation, no steps or proceedings have been taken by any person,
 voluntary or otherwise, requiring or authorizing its dissolution or winding-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Corporation has no direct or indirect subsidiaries (as such term is defined in the *Securities Act* (Ontario)) other than the following (the "**Subsidiary** "), which
 is duly incorporated and validly existing under the laws of the jurisdiction in which it
 is incorporated and has all necessary corporate power and authority to own, lease and operate
 its properties and assets, to carry on the Business as it is currently conducted and proposed
 to be conducted, to perform its obligations under each material agreement to which it is
 a party and is not in default of its corporate filings:

---

| | | |
|:---|:---|:---|
| **<u>Subsidiary</u>** | **<u>Corporate Jurisdiction</u>** | **<u>Percentage Ownership</u>** |
| Silver Valley Metals Corp. | Idaho | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Corporation owns all of the issued and outstanding shares of the Subsidiary, such shares
 are free and clear of all encumbrances, claims or demands whatsoever and no person has any
 agreement, option, right or privilege (whether pre-emptive or contractual) capable of becoming
 an agreement, for the purchase from the Corporation or the Subsidiary of any interest in
 any of the shares in the capital of the Subsidiary. All of the issued and outstanding shares
 of the Subsidiary are outstanding as fully paid and non-assessable shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other
 than the Subsidiary, the Corporation does not have material investment or proposed investment
 in any person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 corporate records and minute books of the Corporation and the Subsidiary are complete and
 accurate in all material respects and contain the minutes of all meetings and all resolutions
 of directors and shareholders of the Corporation and the Subsidiary (in each case, subject
 to ordinary course updating to be completed both before and after the Closing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 authorized and issued share capital of the Corporation consists of 1,500,000,000 Common Shares
 with a par value of $0.000001 per Common Share and 10,000,000 shares of preferred shares
 with par value of $0.000001 per preferred share, of which ♦ Common Shares
 and no shares of preferred stock are issued and outstanding as of the date hereof, all of
 which shares are fully paid and non-assessable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) other
 than pursuant to the provisions of this Agreement or as set forth in this Section 6(g), as
 of the date of this Agreement, no person, firm, corporation or other entity holds any securities
 convertible or exchangeable into securities of the Corporation or now has any agreement,
 warrant, option, right or privilege (whether pre-emptive or contractual) being or capable
 of becoming an agreement, option or right for the purchase, subscription or issuance of any
 unissued shares, securities (including convertible securities) or warrants of the Corporation
 other than (i) outstanding stock options and restricted share units issued to directors,
 officers, employees and key consultants of the Corporation under the Corporation's
 stock option plan exercisable into ♦ Common Shares;
 (ii) Common Share purchase warrants exercisable into ♦ Common Shares;
 and (iv) convertible debentures in the aggregate amount of US$21,000,000 issued to Sprott
 Private Resources Streaming and Royalty Corp. ()"**Sprott Streaming**") and
 certain affiliates of Sprott Streaming exercisable into an aggregate of ♦ Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) to
 the knowledge of the Corporation, there are no shareholders' agreements, voting trusts,
 proxy or other agreements governing the rights of shareholders of the Corporation. The holders
 of the outstanding Common Shares of the Corporation are not entitled to pre-emptive or other
 rights to subscribe for the Common Shares, including after exercise or conversion of any
 security or right to acquire any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 of the Corporation and the Subsidiary has conducted and is conducting its Business in compliance
 in all material respects with all applicable Laws of each jurisdiction in which its Business
 is carried on and is duly licensed, registered or qualified in all jurisdictions in which
 it owns, leases or operates its property or carries on business to enable its Business to
 be carried on as it is now conducted and its property and assets to be owned, leased or operated,
 and all such licenses, registrations or qualifications are valid and existing and in good
 standing under the laws of the jurisdiction of incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the
 Corporation is not in default or breach of, and the execution and delivery of, and the compliance
 with the terms of, the Transaction Documents to which it is a party, the fulfillment of the
 terms thereof by it and the completion of the transactions contemplated therein, and the
 grant of the Over-Allotment Option, the issuance, sale and delivery of the Offered Shares,
 the Broker's Warrants and the Broker Shares issuable on exercise of the Broker's
 Warrants by the Corporation hereunder do not and will not result in a material breach of,
 and do not and will not create a state of facts which, after notice or lapse of time or both,
 will result in a material breach of, and do not and will not conflict with: (i) any statute,
 rule or regulation applicable to the Corporation including, without limitation, Securities
 Laws and the policies, rules and regulations of the CSE, OTC, the SEC, and state securities
 regulators; (ii) any of the terms, conditions or provisions of the constating documents or
 by-laws or resolutions of the Corporation; (iii) any Material Contract to which the Corporation
 or the Subsidiary is a party or by which the Corporation or the Subsidiary is or will be
 contractually bound as of the Closing Time; (iv) any judgment, decree or order binding on
 the Corporation or the Subsidiary or any of their respective properties or assets; or (v)
 require any consent, authorization, registration or qualification of or with any Governmental
 Body, Securities Commission or other regulatory commission or agency or any third party except
 those that have been obtained (or will be obtained prior to the Closing Time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all
 Material Contracts to which the Corporation and the Subsidiary is a party are in good standing
 and in full force and effect and no material default or breach exists in respect of any of
 them on the part of any of the parties to them and, to the knowledge of the Corporation,
 no event has occurred which, after the giving of notice or the lapse of time or both would
 constitute such a default or breach and which would have a Material Adverse Effect; the foregoing
 includes all the presently outstanding Material Contracts entered into by the Corporation
 and the Subsidiary in the course of carrying out their operations and all operations related
 thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) there
 has not been any material change in the consolidated assets, liabilities or obligations (absolute,
 contingent or otherwise) of the Corporation from the position set forth in the Financial
 Statements (as hereinafter defined), except as disclosed in the Final Prospectus, and there
 has not been any adverse material change in the business, operations, capital or condition
 (financial or otherwise) or results of the operations of the Corporation since September
 30, 2022, and since that date, except as publicly disclosed, there have been no material
 facts, transactions, events or occurrences relating directly to the Corporation which could
 reasonably be expected to materially adversely affect the capital, assets, liabilities (absolute,
 accrued, contingent or otherwise), business, operations or condition (financial or otherwise)
 or results of the operations of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the
 Bunker Hill Project is the only material property to ‎the Corporation for the purposes
 of NI 43-101 and all material information with ‎respect thereto is completely and accurately
 described in the Prospectus;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the
 Corporation or the Subsidiary, as applicable, made available to the authors ‎thereof
 prior to the issuance of the Bunker Hill Technical Report, for the purpose of preparing such
 report, all information ‎requested, and to the knowledge of the Corporation, no such
 information contained ‎any material misrepresentation as at the relevant time the relevant
 information was ‎made available and the Corporation does not have any knowledge of a
 material ‎adverse change in any production, cost, price, reserves or other relevant information
 ‎provided since the dates that such information was so provided;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the
 Bunker Hill Technical Report ‎complied in all material respects with the requirements
 of NI 43-101 as at the date ‎of such report; since the date of preparation of such report
 there has been no change ‎that would disaffirm or change any aspect of such report in
 any material respect;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the
 Corporation is in compliance with NI 43-101 in all material respects and has filed within
 the ‎prescribed time periods all technical reports required thereby;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) ‎other
 than the Leased Premises and except as disclosed in the Public Record, each of the Corporation
 and the Subsidiary is the absolute legal and beneficial owner of, and has good and marketable
 title to, all of the material properties and assets thereof as described in the Public Record,
 and no other property or assets are necessary for the conduct of the business of the Corporation
 and the Subsidiary as currently conducted. Any and all of the agreements and other documents
 and instruments pursuant to which each of the Corporation or the Subsidiary holds the property
 and assets thereof (including any interest in, or right to earn an interest in, any Intellectual
 Property) are valid and subsisting agreements, documents and instruments in full force and
 effect, enforceable in accordance with the terms thereof, and such properties and assets
 are in good standing under the applicable statutes and regulations of the jurisdictions in
 which they are situated, and all material leases, licenses and other agreements pursuant
 to which the Corporation or any Subsidiary derives the interests thereof in such property
 are in good standing. The Corporation does not know of any claim or the basis for any claim
 that might or could materially and adversely affect the right of the Corporation or any Subsidiary
 to use, transfer or otherwise exploit their respective assets, none of the properties (or
 any interest in, or right to earn an interest in, any property) of the Corporation or any
 Subsidiary is subject to any right of first refusal or purchase or acquisition right, and
 neither the Corporation nor any Subsidiary has a responsibility or obligation to pay any
 commission, royalty, licence fee or similar payment to any person with respect to the property
 and assets thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) other
 than the Bunker Hill Mine, neither the Corporation nor the Subsidiary owns ‎any real
 property; ‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) the
 Corporation has not approved, is not contemplating, has not entered into, and has no knowledge
 of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 change of control (by sale or transfer of shares or sale of all or substantially all of the
 assets or otherwise) of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 proposed or planned disposition of any securities by any insider or any shareholder who owns,
 directly or indirectly, 5% or more of the issued and outstanding securities of the Corporation;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 written or oral agreement, option, understanding or commitment or any right or privilege
 capable of becoming such, for the purchase, sale, transfer or other disposition of any material
 property or assets or any interest therein owned directly or indirectly by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) no
 acquisitions or dispositions have been made by the Corporation or the Subsidiary in the three
 most recently completed fiscal years that are "significant acquisitions" or "significant
 dispositions", except for the Corporation's acquisition of (i) the Bunker Hill
 Mine as described in the Public Record, and (ii) the Pend Oreille mill as described in the
 Public Record, and the Corporation is not a party to and has not approved the entering into
 of any contract or agreement with respect to any acquisition or disposition of material property
 or assets which would require disclosure under Securities Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) as
 at the date hereof the Corporation has no reason to believe that any Person intends to cease
 dealing with the Corporation or the Subsidiary on substantially the same terms as such Person
 presently deals with the Corporation, which may have or result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Corporation and the Subsidiary have good title to all real, immovable, personal and movable
 properties owned by it, free and clear of all Liens of any kind except for Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) other
 than as disclosed in the Public Record, there are no actions, suits, judgements, proceedings,
 investigations or inquiries of any kind whatsoever outstanding, pending or to the best of
 the Corporation's knowledge, threatened against or affecting the Corporation or the
 Subsidiary at law or in equity or before or by any federal, provincial, municipal or other
 governmental department, commission, board, bureau, agency or instrumentality, which could
 have a Material Adverse Effect, and the Corporation has no knowledge of any basis on which
 any such matter might be commenced with any reasonable likelihood of success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the
 Corporation has not, directly or indirectly, declared or paid any dividend or declared or
 made any other distribution on any of its securities of any class, and has not directly or
 indirectly, redeemed, purchased or otherwise acquired any of its Common Shares or securities
 or agreed to do so. Other than restrictions under Securities Laws, there is no restriction
 on or impediment to the declaration or payment of any dividend or other distribution on the
 shares in the constating documents of the Corporation or in any agreement, mortgage, note,
 debenture, indenture or other instrument or document to which the Corporation is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) other
 than as disclosed in the Public Record, the Corporation does not owe any material amount
 to, nor has the Corporation made any present loans to, or borrowed any amount from or is
 otherwise indebted to, any officer, director, employee or security holder of the Corporation
 or any of its affiliates or any Person not dealing at "arm's-length" (as
 such term is defined in the *Income Tax Act* (Canada)) with any of them except for usual
 employee reimbursements and compensation paid in the ordinary and normal course of the Business.
 Except for usual arrangements made in the ordinary and normal course of the Business, the
 Corporation is not a party to any material contract, agreement or understanding with any
 officer, director, employee or security holder of the Corporation or any of its affiliates
 or any other Person not dealing at arm's-length with the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) policies
 of insurance issued by insurers of recognized financial responsibility are maintained in
 respect of the operations, properties and assets, employees, directors and officers of the
 Corporation in such amounts and covering such risks as are prudent and customary in the Business.
 All such policies of insurance are in full force and effect and no material default exists
 under such policies of insurance as to the payment of premiums or otherwise under the terms
 of any such policy, there are no material claims by the Corporation under any such policy
 or instrument as to which any insurance company is denying liability or defending under a
 reservation of rights clause; to the knowledge of the Corporation, the Corporation will be
 able to renew its existing insurance coverage as and when such coverage expires or to obtain
 similar coverage from similar insurers as may be necessary to continue its Business. The
 Corporation has not been denied any insurance coverage which it has sought or for which it
 has applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) the
 Corporation is in compliance in all respects with its timely and continuous disclosure obligations
 under the securities laws of the Provinces of the Qualifying Jurisdictions, and the policies,
 rules and regulations of the CSE, OTC and the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) the
 audited consolidated financial statements of the Corporation as at and for the financial
 period ended December 31, 2021 and the unaudited condensed consolidated interim financial
 statements of the Corporation as at and for the financial period ended September 30, 2022
 (collectively, the "**Financial Statements** "): (i) are, in all material respects,
 consistent with the books and records of the Corporation; (ii) have been prepared in accordance
 with U.S. GAAP consistently applied throughout the periods referred to therein; and (iii)
 present fairly, in all material respects, the financial position (including the assets and
 liabilities, whether absolute, contingent or otherwise as required by U.S. GAAP) of the Corporation
 as at such dates and the results of its operations and its cash flows for the periods then
 ended and contain and reflect adequate provisions or allowance for all reasonably anticipated
 liabilities, expenses and losses of the Corporation in accordance with U.S. GAAP and, there
 has been no change in accounting policies or practices of the Corporation since December
 31, 2021. The Corporation is not aware of any fact or circumstance presently existing that
 would render such Financial Statements and financial information materially incorrect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) the
 Corporation maintains a system of internal accounting controls sufficient to provide reasonable
 assurances that transactions are executed in accordance with management's general or
 specific authorization, and transactions are recorded as necessary to permit preparation
 of financial statements in conformity with U.S. GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) the
 Auditors of the Corporation are, and were during the period covered by their report, independent
 public accountants as required under applicable Securities Laws and there has never been
 a reportable disagreement within the meaning of National Instrument 51-102 between the Corporation
 and the Auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) all
 taxes (including income tax, capital tax, payroll taxes, employer health tax, workers'
 compensation payments, property taxes and land transfer taxes), duties, royalties, levies,
 imposts, assessments, deductions, charges or withholdings and all liabilities with respect
 thereto including any penalty and interest payable with respect thereto (collectively, "**Taxes** ")
 due and payable or required to be collected or withheld and remitted, by the Corporation
 and the Subsidiary have been paid, collected or withheld and remitted as applicable, except
 for where the failure to pay such Taxes would not have a Material Adverse Effect. The Corporation
 has established on its books and records reserves that are adequate for the payment of all
 material Taxes not yet due and payable and there are no liens for Taxes on the assets of
 the Corporation or the Subsidiary that are material, and there are no audits pending of the
 tax returns of the Corporation or the Subsidiary (whether federal, state, provincial, local
 or foreign). Except to the extent that failure to do so would not have a Material Adverse
 Effect, all tax returns, declarations, remittances and filings required to be filed by the
 Corporation have been filed with all appropriate Governmental Body and all such returns,
 declarations, remittances and filings are complete and accurate and no material fact or facts
 have been omitted therefrom which would make any of them misleading. To the knowledge of
 the Corporation, no examination of any tax return of the Corporation is currently in progress
 and there are no issues or disputes outstanding with any Governmental Body respecting any
 taxes that have been paid, or may be payable, by the Corporation. There are no agreements,
 waivers or other arrangements with any taxation authority providing for an extension of time
 for any assessment or reassessment of taxes with respect to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) there
 are no off-balance sheet transactions, arrangements, obligations (including contingent obligations)
 or other relationships of the Corporation or the Subsidiary with unconsolidated entities
 or other persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) the
 Corporation and the Subsidiary do not have any liabilities, obligations, indebtedness or
 commitments, whether accrued, absolute, contingent or otherwise, which are not disclosed
 or referred to in the Public Record, including in the financial statements of the Corporation
 contained in the Public Record and the notes thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) except
 as mandated by an applicable regulatory or governmental authority, which mandates have not
 materially affected the Corporation, as at the date hereof, and except as disclosed in the
 Final Prospectus, there has been no material effect on the operations of the Corporation
 or the Subsidiary as a result of the novel coronavirus disease (COVID-19) outbreak (the "**COVID-19 Outbreak** "). The Corporation has been monitoring the COVID-19 Outbreak and the potential
 impact at all of its operations, and management believes it has implemented appropriate measures
 to support the wellness of its employees where the Corporation and the Subsidiary operate
 while continuing to operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) ‎(i)
 the Corporation and its Subsidiary own, free and clear of any Liens or encumbrances, ‎or
 possesses sufficient legal rights to use, all Intellectual Property used by it in ‎connection
 with the Corporation's Business, which represents all intellectual ‎property rights
 necessary to the conduct of the Corporation's Business as now ‎conducted and as
 presently contemplated to be conducted, without any conflict ‎with, or infringement of,
 in any material respect, the intellectual property rights of ‎others; (ii) the Corporation
 or the Subsidiary have not received any ‎communications alleging that they have violated
 or, by conducting its Business, ‎would violate any of the patents, trademarks, service
 marks, tradenames, copyrights, ‎rights of privacy, rights in personal data, moral rights,
 trade secrets or other ‎proprietary rights or processes of any other person or entity.
 To the Corporation's ‎knowledge, no product or service marketed or sold (or presently
 contemplated to be ‎marketed or sold) by the Corporation or the Subsidiary violate any
 license to which ‎they are a party or infringes any intellectual property rights of any
 other person or ‎entity. No claim is pending or, to the Corporation's knowledge,
 threatened to the ‎effect that any operations of the Corporation or the Subsidiary infringe
 upon or ‎conflict with the asserted rights of any other person to any Intellectual Property
 and, ‎to the Corporation's knowledge, there is no basis for any such claim (whether
 or not ‎pending or threatened); (iii) all persons then involved in the development of
 the ‎Corporation or the Subsidiary's owned Intellectual Property were at the time
 ‎employees, consultants or independent contractors of the Corporation or its ‎Subsidiary
 and, for greater certainty, the Corporation owns the Intellectual ‎Property arising from
 their work. All persons involved in the development of the ‎Corporation or the Subsidiary's
 owned Intellectual Property will be employees, ‎consultants or independent contractors
 of the Corporation, and the Corporation will ‎own all such Intellectual Property arising
 from their work. The Corporation does ‎not believe it is or will be necessary to use
 any inventions of any of its employees ‎‎(or persons it currently intends to hire)
 made prior to their employment by the ‎Corporation‎; ‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) all
 testing, product research and development activities, including quality assurance, quality
 control, testing, and research and analysis activities, conducted by the Corporation or the
 Subsidiary in connection with their Business is being conducted in compliance, in all respects,
 with all industry, laboratory safety, management and training standards applicable to its
 current and proposed Business and all such processes, procedures and practices, required
 in connection with such activities are in place as necessary and are being complied with,
 in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) no
 union has been accredited or otherwise designated to represent any employees of the Corporation
 or the Subsidiary and, to the knowledge of the Corporation, no accreditation request or other
 representation question is pending with respect to the employees of the Corporation or the
 Subsidiary and no collective agreement or collective bargaining agreement or modification
 thereof has expired or is in effect in any of the Corporation's facilities and none
 is currently being negotiated by the Corporation or the Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) the
 Corporation and the Subsidiary have satisfied all obligations under, and there are no outstanding
 defaults or violations with respect to, and no taxes, penalties, or fees are owing or eligible
 under or in respect of, any employee benefit, incentive, pension, retirement, stock option,
 stock purchase, stock appreciation, health, welfare, medical, dental, disability, life insurance
 and similar plans, arrangements or practices relating to the current or former employees,
 officers or directors of the Corporation maintained, sponsored or funded by them, whether
 written or oral, funded or unfunded, insured or self-insured, registered or unregistered
 and all contributions or premiums required to be paid thereunder have been made in a timely
 fashion and any such plan or arrangement which is a funded plan or arrangement is fully funded
 on an ongoing and termination basis, except for any default, violation, tax, penalty or fee
 which, whether individually or in the aggregate, has not resulted in and would not reasonably
 be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) there
 has not been and there is not currently any pending labour disruption, grievance, arbitration
 proceeding or other conflict by any current or former employee, consultant or agent of the
 Corporation or the Subsidiary which could reasonably be expected to have a Material Adverse
 Effect and each of the Corporation and the Subsidiary is in compliance with all provisions
 of all laws and regulations respecting employment and employment practices, terms and conditions
 of employment and wages and hours, except for noncompliance with any such provisions that
 would not have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) (A)
 the Corporation, its assets and properties and the operation of the Business, have been and
 are, to the knowledge of the Corporation, in compliance in all material respects with all
 Environmental Laws; (B) the Corporation has complied in all material respects with all reporting
 and monitoring requirements under all Environmental Laws; and (C) the Corporation has never
 received any notice of any material non-compliance in respect of any Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) without
 limiting the generality of the subparagraph immediately above, neither the Corporation nor
 the Subsidiary is aware of, nor has received any notice of, any material claim, judicial
 or administrative proceeding, pending, threatened against or contemplated, or which may affect,
 the Corporation, the Subsidiary or any of the respective properties, assets or operations
 thereof, relating to, or alleging any violation of any Environmental Laws, the Corporation
 is not aware of any facts which could give rise to any such claim or judicial or administrative
 proceeding and the Corporation is not aware of any investigation, evaluation, audit or review
 by any Governmental Body of the Corporation, the Subsidiary or any of the respective properties,
 assets or operations thereof to determine whether any violation of any Environmental Laws
 has occurred or is occurring or whether any remedial action is needed in connection with
 a release of any contaminant into the environment, except for compliance investigations conducted
 in the normal course by any Governmental Body, in each case which could reasonably be expected
 to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) there
 are no orders, rulings or directives issued, pending or, to the knowledge of the Corporation,
 threatened against the Corporation or the Subsidiary under or pursuant to any Environmental
 Laws requiring any work, repairs, construction or capital expenditures with respect to the
 property or assets of the Corporation or the Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) neither
 the Corporation nor the Subsidiary is subject to any contingent or other liability relating
 to the restoration or rehabilitation of land, water or any other part of the environment
 (except for those derived from normal production and exploration activities) or non-compliance
 with Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) other
 than as ‎described in the Public Record, neither the Corporation nor the Subsidiary has
 ever been in violation of, in connection with the ownership, use, maintenance or operation
 of the property and assets thereof, any applicable federal, provincial, state, municipal
 or local laws, by-laws, regulations, orders, policies, permits having the force of law, domestic
 or foreign, relating to environmental, health or safety matters which could reasonably be
 expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) each
 of the Corporation and the Subsidiary has all applicable Environmental Permits and is in
 compliance with any material requirements thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) neither
 the Corporation nor the Subsidiary has used, except in compliance ‎with all ‎Environmental
 Laws, any property or facility ‎which it owns or leases or previously ‎owned or leased,
 to generate, manufacture, ‎process, distribute, use, treat, store, ‎dispose of, transport
 or handle any Hazardous ‎Material; ‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) the
 Properties are the only properties in which the Corporation or the Subsidiary has an ‎interest;
 the Corporation or the Subsidiary holds either freehold title, mining ‎leases, mining
 concessions, mining claims, exploration permits, prospecting permits ‎or participant
 interests or other conventional property or proprietary interests or ‎rights, recognized
 in the jurisdiction in which the Properties are located, in respect of ‎the ore bodies
 and minerals located on the Properties in which the Corporation or ‎the Subsidiary has
 an interest under valid, subsisting and enforceable title ‎documents or other recognized
 and enforceable agreements or instruments, ‎sufficient to permit the Corporation or the
 Subsidiary to explore for and exploit the ‎minerals relating thereto, all leases or claims
 and permits relating to the Properties in ‎which the Corporation or the Subsidiary has
 an interest or right have been ‎validly located and recorded in accordance with all applicable
 laws and are valid ‎and subsisting, the Corporation or the Subsidiary has all necessary
 surface ‎rights, access rights and other necessary rights and interests relating to the
 Properties ‎in which the Corporation or the Subsidiary has an interest granting the ‎Corporation
 or the Subsidiary the right and ability to explore for and exploit ‎minerals, ore and
 metals for development purposes as are appropriate in view of the ‎rights and interest
 therein of the Corporation or the Subsidiary, as ‎applicable, with only such exceptions
 as do not materially interfere with the use ‎made by the Corporation or the Subsidiary
 of the rights or interest so held, ‎and each of the proprietary interests or rights and
 each of the documents, ‎agreements and instruments and obligations relating thereto referred
 to above is ‎currently in good standing in all material respects in the name of the Corporation
 or ‎the Subsidiary; neither the Corporation nor the Subsidiary has any ‎responsibility
 or obligation to pay any commission, royalty, licence, fee or similar ‎payment to any
 person with respect to the property rights thereof other than as ‎described in the Public
 Record, which includes, but is not limited to, disclosure regarding the royalty convertible
 ‎debenture (the "**Royalty Convertible Debenture**") between the Corporation's
 wholly-‎owned subsidiary, Silver Valley Metals Corp. and Sprott Private Resource Streaming
 and ‎Royalty (Collector), LP and the conversion of the Royalty Convertible Debenture
 into a ‎royalty agreement as described therein‎;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) the
 Corporation or the Subsidiary holds direct interests in the Properties, as ‎described
 in the Public Record (the "**Project Rights** "), free of all mortgages, liens,
 ‎charges, pledges, security interests, encumbrances, claims or demands whatsoever, ‎except
 as disclosed to the Agents and no other property rights are necessary for the ‎conduct
 of the business of the Corporation as currently conducted; the Corporation ‎does not
 know of any claim or the basis for any claim that might or could adversely ‎affect the
 right thereof to use, transfer or otherwise exploit such property rights, ‎under valid,
 subsisting and enforceable agreements or instruments, and all such ‎agreements and instruments
 in connection with the Project Rights are valid and ‎subsisting and enforceable in accordance
 with their terms.‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) the
 Corporation has identified all the material permits, certificates, and approvals ‎‎(collectively,
 the "**Permits**") which are or will be required for the exploration, ‎development
 and eventual operation of the Properties, which Permits include but are ‎not limited
 to environmental assessment certificates, water licenses, land tenures, ‎rezoning or
 zoning variances and other necessary local, provincial and federal ‎approvals; and the
 appropriate Permits have either been received, applied for, or the ‎processes to obtain
 such Permits have been or will in due course be initiated by the ‎Corporation; and, except
 as disclosed to the Agents, the Corporation does not know ‎of any issue or reason why
 the Permits should not be approved and obtained in the ‎ordinary course;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) all
 assessments or other work required to be performed in relation to the material mining ‎claims
 and the mining rights of the Corporation in order to maintain its interests ‎therein,
 if any, have been performed to date and the Corporation has complied in all ‎material
 respects with all applicable governmental laws, regulations and policies in ‎this regard
 as well as with regard to legal, contractual obligations to third parties in ‎this regard
 except in respect of mining claims and mining rights that the Corporation ‎intends to
 abandon or relinquish and except for any non-compliance which would ‎not either individually
 or in the aggregate have a material adverse effect; all such ‎mining claims and mining
 rights are in good standing in all respects as of the date of ‎this Agreement;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) there
 are no environmental audits, evaluations, assessments, studies or tests relating to the ‎Corporation
 except for ongoing assessments conducted by or on behalf of the ‎Corporation in the ordinary
 course;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) with
 respect to each of the Leased Premises, the Corporation and the Subsidiary, as applicable,
 occupies the Leased Premises and has the exclusive right to occupy and use the Leased Premises
 and each of the leases pursuant to which the Corporation or the Subsidiary, as applicable,
 occupies the Leased Premises is in good standing and in full force and effect. The performance
 of obligations pursuant to and in compliance with the terms of this Agreement and the completion
 of the transactions described herein by the Corporation, will not afford any of the parties
 to such leases or any other person the right to terminate such leases or result in any additional
 or more onerous obligations under such leases. The Corporation has provided the Agents with
 true and complete copies of all leases in respect of the Leased Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) the
 Corporation is not aware of any licensing or legislation, regulation, by-law or other lawful
 ‎requirement of any Governmental Body having lawful jurisdiction over the ‎Corporation
 presently in force or, to its knowledge, proposed to be brought into force, ‎or any pending
 or contemplated change to any licensing or legislation, regulation, by-law ‎or other
 lawful requirement of any Governmental Body having lawful jurisdiction over ‎the Corporation
 or any Subsidiary presently in force, that the Corporation anticipates the ‎Corporation
 or any Subsidiary will be unable to comply with or which could reasonably ‎be expected
 to materially adversely affect the business of the Corporation or any ‎Subsidiary or
 the business environment or legal environment under which such entity ‎operates;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) at
 the Closing Time each of this Agreement and the Broker Warrant Certificates (collectively,
 the "**Transaction Documents**") will have been duly authorized, executed
 and delivered by the Corporation, and upon such execution and delivery will constitute a
 legal, valid and binding obligation of the Corporation enforceable in accordance with its
 terms except that: (i) the enforcement thereof may be limited by bankruptcy, insolvency and
 other laws affecting the enforcement of creditors' rights generally, (ii) rights of
 indemnity, contribution and waiver of contribution thereunder may be limited under applicable
 law; and (iii) equitable remedies, including, without limitation, specific performance and
 injunctive relief, may be granted only in the discretion of a court of competent jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) (A)
 the Corporation has full corporate power and authority to issue the applicable Offered Shares
 and the Broker's Warrants on the Closing Date or Option Closing Date, as applicable,
 and thereafter; (B) the Offered Shares will be duly and validly authorized, allotted and
 issued as fully paid and non-assessable Common Shares by the Corporation on the Closing Date
 or Option Closing Date, as applicable; (C) the Broker's Warrants will be validly created
 and issued by the Corporation on the Closing Date or Option Closing Date, as applicable;
 and (D) upon exercise of the Broker's Warrants, the Broker Shares, will be duly and
 validly authorized, allotted and issued as fully paid and non-assessable Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) the
 Corporation is, upon the filing of the Final Prospectus, a reporting issuer in good standing
 in each of the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New
 Brunswick, Nova Scotia, Price Edward Island and Newfoundland, and (i) has no reasonable grounds
 to believe that it will not continue to be a reporting issuer in good standing in each such
 jurisdiction for at least 12 months following the Closing; (ii) is in compliance, including
 with respect to its Public Record, with all applicable Securities Laws in all respects, except
 where any such non-compliance, whether individually or in the aggregate, would not constitute
 a Material Adverse Effect; (iii) it is not included on a list of defaulting reporting issuers
 maintained by the Securities Commissions of each such jurisdiction; (iv) the Public Record,
 as of each document's respective filing date, does not contain any untrue statement
 of a material fact or omit to state a material fact required to be stated therein or necessary
 to make the statements therein, in light of the circumstances under which they were made,
 not misleading as of the date made; and (v) has no current confidential material change reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) no
 order ceasing or suspending trading in securities of the Corporation or prohibiting the sale
 of securities by the Corporation has been issued that remains outstanding, and, to its knowledge,
 no proceedings for this purpose have been instituted, are pending, contemplated or threatened
 by any securities commission or self-regulatory organization; the Corporation is not in default
 of any material requirement of any applicable securities legislation, and the Corporation
 is entitled to avail themselves of the applicable prospectus exemptions available under such
 securities legislation in respect of the trades in its securities to Purchasers as contemplated
 in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) to
 the knowledge of the Corporation, none of the Corporation, its officers or directors is aware
 of any circumstances presently existing under which liability is or could reasonably be expected
 to be incurred under Part 16.1 – Civil Liability for Secondary Market Disclosure of
 the *Securities Act* (British Columbia);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) the
 currently outstanding Common Shares are listed and posted for trading on the CSE and OTC
 and all necessary notices and filings have been made with, and all necessary consents, approvals
 and authorizations obtained by, the Corporation from the CSE, OTC, SEC, and state securities
 regulators to ensure that (i) the Offered Shares; and (ii) the Broker Shares issuable upon
 exercise of the Broker's Warrants; will be listed and posted for trading on the CSE
 and OTC upon their issuance, subject only to the Standard Listing Filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) the
 Corporation has not withheld, and will not withhold from the Agents prior to the Closing
 Time, any material facts relating to the Corporation, the Subsidiary or the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Capital
 Transfer Agency ULC is the duly appointed registrar and transfer agent of the Corporation
 with respect to the Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) other
 than the Investor Presentation and the Term Sheet filed by the Corporation on SEDAR on November
 21, 2022 the Corporation has not and will not provide to prospective purchasers any document
 or other material that would constitute an offering memorandum or future oriented financial
 information within the meaning of Securities Laws. The Corporation has and will not engage
 in any form of general solicitation or general advertising in connection with the offer and
 sale of the Offered Shares, including but not limited to, causing the sale of the Offered
 Shares to be advertised in any newspaper, magazine, printed public media, printed media or
 similar medium of general and regular paid circulation, broadcast over radio, television
 or telecommunications, including electronic display, or conduct any seminar or meeting relating
 to the offer and sale of the Offered Shares whose attendees have been invited by general
 solicitation or advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) other
 than the Agents, there is no person, firm or company acting or purporting to act at the request
 of the Corporation who is entitled to any finder's fee in connection with the transactions
 contemplated herein and in the event that any person, firm or company acting for the Corporation
 at the request of the Corporation establishes a claim for any fee from the Agents, except
 as identified in writing to the Corporation and the Agents prior to Closing, the Corporation
 covenants to indemnify and hold harmless the Agents with respect thereto and with respect
 to all costs reasonably incurred in the defence thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) the
 Corporation has provided the Agents with all information requested by the Agents in connection
 with the sale of the Offered Shares and such information is true and correct in all material
 respects and no material fact or material facts have been omitted therefrom which would make
 such information misleading. There is no material fact known to the Corporation that has
 not been disclosed herein, or to the Agents, or in any other agreement, document or written
 instrument furnished by the Corporation to the Agents in connection with the transactions
 contemplated hereby and thereby and which has resulted in or would reasonably be expected
 to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm) all
 information which has been prepared by the Corporation relating to the Corporation and its
 business, properties and liabilities and made available to the Agents, including the Investor
 Presentation and all financial, marketing, sales and operational information provided to
 the Agents was, as of the date of such information, true and correct in all material respects,
 taken as a whole, and no fact or facts have been omitted therefrom which would make such
 information materially misleading and did not contain a misrepresentation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnn) as
 of the date of the delivery of an Offering Document by the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 information and statements (except information and statements relating to the Agents and
 provided in writing by the Agents for inclusion therein) contained or incorporated by reference
 in any of the Offering Documents, as the case may be, are true and correct, in all material
 respects, and contain no misrepresentation and constitute full, true and plain disclosure
 of all material facts relating to the Corporation and the Offered Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 material fact or information has been omitted therefrom (except for facts or information
 relating to the Agents) which is required to be stated in such disclosure or is necessary
 to make the statements or information contained in such disclosure not misleading in light
 of the circumstances in which they were made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) except
 with respect to any information relating solely to the Agents and provided by the Agents
 for inclusion therein, the Offering Documents comply in all material respects with the requirements
 of Applicable Securities Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except
 as set forth or contemplated in the Offering Documents, there has been no adverse material
 change (actual, anticipated, contemplated, proposed or threatened) in the business, affairs,
 prospects, operations, properties, assets, liabilities (contingent or otherwise) or capital
 of the Corporation since the end of the period covered by the Financial Statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ooo) the
 delivery of each Offering Document by the Corporation shall constitute the Corporation's
 consent to the Agents' use of the Offering Documents in connection with the distribution
 of the Offered Shares in the Qualifying Jurisdictions in compliance with this Agreement unless
 otherwise advised in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppp) no
 order preventing or suspending the use of any of the Offering Documents has been issued by
 any Securities Commission and each Offering Document, at the time of filing or the time of
 first use within the meaning of the Securities Laws, complied in all material respects with
 the requirements of the Securities Act and the Securities Laws and did not contain an untrue
 statement of a material fact or omit to state a material fact required to be stated therein
 or necessary to make the statements therein, in the light of the circumstances under which
 they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqq) the
 Corporation has complied to the Securities Regulators satisfaction with all requests of the
 Securities Regulators for additional or supplemental information. No stop order suspending
 the effectiveness of the U.S. Registration Statement or Blue Sky Registrations is in effect
 and no proceedings for such purpose have been instituted or are pending or, to the best knowledge
 of the Corporation, are contemplated or threatened by the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rrr) each
 part of the U.S. Registration Statement, Blue Sky Registrations, and any Supplemental Materials,
 at the time such part became effective, at all other subsequent times until the expiration
 of the delivery period of the U.S. Final Prospectus, and at the Closing Date, and the U.S.
 Final Prospectus and Blue Sky Registrations (or any amendment or supplement to the U.S. Final
 Prospectus or Blue Sky Registrations, as applicable, including with respect to U.S. state
 filings), at the time of filing or the time of first use within the meaning of the Securities
 Laws, at all subsequent times until expiration of the delivery period for the U.S. Final
 Prospectus, and at the Closing Date, complied and will comply in all material respects with
 the applicable requirements and provisions of the Securities Act, the Applicable Securities
 Law and the U.S. Exchange Act and did not and will not contain any untrue statement of a
 material fact or omit to state a material fact required to be stated therein or necessary
 to make the statements therein not misleading. The U.S. Final Prospectus and Blue Sky Registrations,
 in each case as amended or supplemented, as of its date, or the time of first use within
 the meaning of the Applicable Securities Laws, at all subsequent times until the expiration
 of the delivery period for the U.S. Final Prospectus, and at the Closing Date, did not and
 will not contain any untrue statement of a material fact or omit to state a material fact
 necessary in order to make the statements therein, in the light of the circumstances under
 which they were made, not misleading. The representations and warranties set forth in the
 two immediately preceding sentences do not apply to statements in or omissions from the U.S.
 Registration Statement, Blue Sky Registrations, or any post-effective amendment thereto,
 or the U.S. Final Prospectus, or any amendments or supplements thereto, made in reliance
 upon and in conformity with written information furnished to the Corporation by the Agents,
 specifically for use in the preparation thereof; ‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(sss) the
 offering of the Offered Shares in the United States or to or for the account or ‎benefit
 of a U.S. Person or a person in the United States by the Corporation is not ‎prohibited
 pursuant to a court order issued pursuant to Section 12(j) of the U.S. ‎Exchange Act
 and any rules or regulations promulgated thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ttt) the
 Corporation and its Subsidiary are in compliance with any and all applicable requirements
 of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all
 applicable rules and regulations promulgated by the Commission thereunder that are effective
 as of the date hereof and as of the Closing Date. The Corporation and the Subsidiary maintain
 a system of internal accounting controls sufficient to provide reasonable assurance that:
 (i) transactions are executed in accordance with management's general or specific authorizations,
 (ii) transactions are recorded as necessary to permit preparation of financial statements
 in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
 only in accordance with management's general or specific authorization, and (iv) the
 recorded accountability for assets is compared with the existing assets at reasonable intervals
 and appropriate action is taken with respect to any differences. The Corporation and the
 Subsidiary have established disclosure controls and procedures (as defined in U.S. Exchange
 Act Rules 13a-15(e) and 15d-15(e)) for the Corporation and the Subsidiary and designed such
 disclosure controls and procedures to ensure that information required to be disclosed by
 the Corporation in the reports it files or submits under the U.S. Exchange Act is recorded,
 processed, summarized and reported, within the time periods specified in the SEC's
 rules and forms. The Corporation's certifying officers have evaluated the effectiveness
 of the disclosure controls and procedures of the Corporation and the Subsidiary as of the
 end of the period covered by the most recently filed periodic report under the Exchange Act
 (such date, the "Evaluation Date"). The Corporation presented in its most recently
 filed periodic report under the U.S. Exchange Act the conclusions of the certifying officers
 about the effectiveness of the disclosure controls and procedures based on their evaluations
 as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal
 control over financial reporting (as such term is defined in the Exchange Act) of the Company
 and its Subsidiary that have materially affected, or is reasonably likely to materially affect,
 the internal control over financial reporting of the Corporation and its Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uuu) the
 Corporation is not, and is not an Affiliate of, and immediately after receipt of payment
 for the Securities, will not be or be an Affiliate of, an "investment company"
 within the meaning of the U.S. Investment Company Act of 1940, as amended. The Company shall
 conduct its business in a manner so that it will not become an "investment company"
 subject to registration under the Investment Company Act of 1940, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vvv) neither
 the Corporation, nor any of its Affiliates, nor any Person acting on its or their behalf
 has, directly or indirectly, made any offers or sales of any security or solicited any offers
 to buy any security, under circumstances that would cause this offering of the Securities
 to be integrated with prior offerings by the Corporation for purposes of any applicable shareholder
 approval provisions of any trading market on which any of the securities of the Corporation
 are listed or designated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(www) The
 Corporation has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
 or indirectly, any action designed to cause or to result in the stabilization or manipulation
 of the price of any security of the Corporation to facilitate the sale or resale of any of
 the Offered Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting
 purchases of, any of the Offered Shares, or (iii) paid or agreed to pay to any Person any
 compensation for soliciting another to purchase any other securities of the Corporation,
 other than, in the case of clauses (ii) and (iii), compensation paid to the Agents in connection
 with the placement of the Offered Shares.

Notwithstanding any contrary provision in this Agreement including any schedule hereto, no investigation or opportunity afforded to the Agents or its advisors to conduct due diligence shall in any way affect, or limit liability for, any representation, warranty or covenant of the Corporation contained in this Agreement and the Agents will be deemed to have relied solely upon the representations, warranties and covenants contained in this Agreement, notwithstanding any contrary information that may have been provided or made available to the Agents or any of the Agents' representatives or that the Agents discovered in the course of any such investigation either prior to or subsequent to the date of this Agreement.

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| | |
|:---|:---|
| **7** | **<u>Covenants of the Corporation</u>** |

---

The Corporation hereby covenants to the Agents that the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) will
 advise the Agents, promptly after receiving notice or obtaining knowledge thereof, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 issuance by any Securities Regulators in any Qualifying Jurisdiction of any order suspending
 or preventing the use of any of the Offering Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 suspension of the qualification of the Offered Shares and the Broker's Warrants in
 any of the Qualifying Jurisdictions or the institution, threatening or contemplation of any
 proceeding for any such purposes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 requests made by any Securities Regulators in the Qualifying Jurisdictions, for amending
 or supplementing the Preliminary Prospectus, U.S. Preliminary Prospectus, the Final Prospectus,
 the U.S. Final Prospectus, any Blue Sky Registration, or the U.S. Registration Statement
 or for additional information, and will use its best efforts to prevent the issuance of any
 order referred to in (i) above and, if any such order is issued, to obtain the withdrawal
 thereof as quickly as possible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) will
 use commercially reasonable efforts to maintain its status as a "reporting issuer"
 (or the equivalent thereof) not in default of the requirements of the Applicable Securities
 Laws in the Qualifying Jurisdictions, for a period of 24 months following the Closing Date,
 provided that the foregoing requirement shall not prevent the Corporation from completing
 a sale of all or substantially all of its assets or any transaction which would result in
 the Corporation ceasing to be a "reporting issuer" pursuant to a take-over bid
 or other transaction that requires a vote by shareholders of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) will
 use its commercially reasonable efforts to maintain the listing of (i) the Offered Shares;
 and (ii) the Broker Shares issuable upon exercise of the Broker's Warrants on the CSE,
 OTC or another recognized stock exchange or quotation system for a period of at least 24
 months following the Closing Date, provided that the foregoing requirement shall not prevent
 the Corporation from completing a sale of all or substantially all of its assets or any transaction
 which would result in the Corporation ceasing to be a "reporting issuer" pursuant
 to a take-over bid or other transaction that requires a vote by shareholders of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) will
 duly execute and deliver the Broker Warrant Certificates at the Closing Time and comply with
 and satisfy all terms, conditions and covenants therein contained to be complied with or
 satisfied by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) will
 ensure that, at the Closing Time, the Offered Shares shall be duly issued as fully paid and
 non-assessable Common Shares on payment of the purchase price therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) will
 ensure that, at the Closing Time, the Broker's Warrants shall be duly and validly created
 and issued and shall have attributes corresponding in all material respects to the description
 set forth in this Agreement and the Broker's Warrants Certificates, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) will
 ensure that at all times following the grant of the Broker's Warrants and prior to
 the expiry of the Broker's Warrants, a sufficient number of Broker Shares are allotted
 and reserved for issuance upon the due exercise of the Broker's Warrants in accordance
 with their terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) will
 ensure that, upon due exercise of the Broker's Warrants in accordance with their terms,
 the Broker Shares shall be duly issued as fully paid and non-assessable shares in the capital
 of the Corporation on payment of the purchase price therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will
 ensure that the Offered Shares and the Broker Shares are listed and posted for trading on
 the CSE and OTC upon their respective dates of issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) will
 use the net proceeds of the Offering in the manner specified in the Final Prospectus, subject
 to the qualifications contained therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) use
 its commercially reasonable efforts to cause its directors and senior officers to enter into
 the Form of Lock-Up Agreement attached hereto as Schedule "A";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) from
 the date hereof until 90 days following the Closing Date, not to, without the prior written
 consent of the Echelon, such consent not to be unreasonably withheld, issue, agree to issue
 or announce any intention to issue Common Shares or any securities convertible into or exchangeable
 for Common Shares, other than in conjunction with: (i) the exchange, transfer, conversion
 or exercise rights of existing outstanding securities; (ii) the issuance of options under
 the Corporation's stock option plan, provided that the exercise price of any such options
 is not less than the Purchase Price; (iii) the issuance of deferred share units or restricted
 share units under the Corporation's deferred share unit plan or restricted share unit
 plan; (iv) existing commitments to issue securities; (v) an arm's length acquisition
 (including to acquire assets or intellectual property rights); (vi) under the Offering; (vii)
 the issuance of securities to Sprott or affiliates of Sprott in accordance with the applicable
 agreements with Sprott; or (viii) the issuance of securities in connection with any offtake-related
 debt financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the
 Corporation shall not sell, offer for sale or solicit offers to buy or otherwise negotiate
 in respect of any security (as defined in Section 2 of the U.S. Securities Act) that would
 be integrated with the offer or sale of the Securities for purposes of the rules and regulations
 of any trading market such that it would require shareholder approval prior to the closing
 of such other transaction unless shareholder approval is obtained before the closing of such
 subsequent transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) shall
 take such action as the Corporation shall reasonably determine is necessary in order to obtain
 an exemption for, or to qualify the Offered Shares and Broker Warrants (including the shares
 issuable upon exercise thereof) for, sale to the Purchasers and the Brokers, as applicable,
 under applicable securities or the blue sky laws of the states of the United States, and
 shall provide evidence of any such actions taken promptly upon the written request of any
 Purchaser or any Broker.

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| | |
|:---|:---|
| **8** | **<u>Representations and Warranties of the Agents</u>** |

---

Each of the Agents hereby severally (and not jointly or jointly and severally) represents, warrants and covenants to the Corporation, and acknowledges that the Corporation is relying upon each of such representations, warranties and covenants in entering into the transactions contemplated hereby, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is, and will remain, until the completion of the Offering, appropriately registered under
 Applicable Securities Laws so as to permit it to lawfully fulfil its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has all requisite corporate power and authority to enter into this Agreement and to carry
 out the transactions contemplated under this Agreement on the terms and conditions set forth
 herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this
 Agreement has been duly authorized, executed and delivered by it and constitutes a legal,
 valid and binding obligation of it enforceable against it in accordance with its terms, except
 as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
 or similar laws affecting the rights of creditors generally, except as limited by the application
 of equitable principles when equitable remedies are sought and except as rights to indemnity,
 contribution and waiver of contribution may be limited by applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as
 to Echelon and Laurentian only, it will offer the Offered Shares for sale to the public in
 the Qualifying Jurisdictions, directly and through sub-agents, if any, in compliance with
 Applicable Securities Laws and upon the terms and conditions set forth in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 will conduct activities in connection with the Offering in compliance with all Applicable
 Securities Laws and upon the terms and conditions set forth in the Final Prospectus and this
 Agreement and cause a similar covenant to be obtained from sub-agents, if any, in connection
 with the distribution of the Offered Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) it
 will refrain from advertising the Offering by (A) printed public media of general and regular
 paid circulation, (B) radio, (C) television or (D) telecommunications, including electronic
 display and not make use of any green sheet or other internal marketing document without
 the prior written consent of the Corporation, such consent to be promptly considered and
 not to be unreasonably withheld; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) it
 will comply with, and ensure that its directors, officers, employees and affiliates comply
 with all applicable market stabilization rules and requirements of the Securities Commissions
 and Applicable Securities Laws.

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| | |
|:---|:---|
| **9** | **<u>Conditions of Closing</u>** |

---

The following are conditions precedent to the obligations of the Agents to complete the Closing and of the Purchasers to purchase the Offered Shares at the Closing Time, which conditions the Corporation covenants and agrees to use its best efforts to fulfil within the time set out herein therefor, and which conditions may be waived in writing in whole or in part by the Agents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Corporation shall have caused its counsel, Blake, Cassels & Graydon LLP, to deliver to
 the Agents legal opinions dated and delivered on the Closing Date or Option Closing Date,
 as applicable, addressed to the Agents, in form and substance satisfactory to the Agents
 acting reasonably. In connection with such opinions, counsel to the Corporation may rely
 on the opinions of local counsel in the Qualifying Provinces acceptable to counsel to the
 Agents, acting reasonably, as to qualification for distribution of the Offered Shares and
 the Broker's Warrants or opinions may be given directly by local counsel of the Corporation
 with respect to those items and as to other matters governed by the laws of jurisdictions
 other than the province in which they are qualified to practise and may rely, to the extent
 appropriate in the circumstances, as to matters of fact on certificates of officers of the
 Corporation and others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Corporation shall have caused its U.S. counsel, J.P. Galda & Co., to deliver to the Agents
 legal opinions dated and delivered on the Closing Date or Option Closing Date, as applicable,
 addressed to the Agents and the Purchasers, in form and substance satisfactory to the Agents
 acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Agents shall have received favourable legal opinions addressed to the Agents from counsel
 to the Corporation, as applicable, dated as of the Closing Date or Option Closing Date, as
 applicable, in the form and substance satisfactory to the Agents and their counsel, acting
 reasonably, as to: (i) the Subsidiary having been incorporated or otherwise organized and
 existing under the laws of its jurisdiction of incorporation or organization, as applicable;
 (ii) the Subsidiary having the corporate capacity and power to own and lease its properties
 and assets and to conduct its business as described in the Prospectus; and (iii) as to the
 authorized and issued share capital of the Subsidiary and to the ownership thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Agents shall have received a favourable legal opinion addressed to the Agents from counsel
 to the Corporation, as applicable, dated as of the Closing Date or Option Closing Date, as
 applicable, in the form and substance satisfactory to the Agents and their counsel, acting
 reasonably, as to title of the Properties and the Corporation's or the Subsidiary's
 interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Agents shall have received a certificate, dated as of the Closing Date or Option Closing
 Date, as applicable, signed by the Chief Executive Officer and the Chief Financial Officer
 of the Corporation, or such other officer(s) of the Corporation as the Agents may agree,
 certifying for and on behalf of the Corporation with respect to: (i) the constating documents
 of the Corporation; (ii) the resolutions of the Corporation's board of directors relevant
 to the Offering and the authorization of the other agreements and transactions contemplated
 herein; and (iii) the incumbency and signatures of signing officers of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Corporation shall cause the Auditors to deliver to the Agents a comfort letter, dated as
 of the Closing Date or Option Closing Date, as applicable, in form and substance satisfactory
 to the Agents, acting reasonably, bringing forward to a date not more than two Business Days
 prior to the Closing Date or Option Closing Date, as applicable, the information contained
 in the comfort letter referred to in subsection 4(a)(iii) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Agents shall have received a certificate, dated as of the Closing Date or Option Closing
 Date, as applicable, signed by the Chief Executive Officer and Chief Financial Officer of
 the Corporation, or such other officers of the Corporation as the Agents may request, certifying
 for and on behalf of the Corporation, after having made due enquiry and after having carefully
 examined the Final Prospectus and any Supplementary Material, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Corporation has complied in all material respects (except where already qualified by a materiality
 or Material ‎Adverse Effect qualification, in which case the Corporation has ‎complied
 in all respects) ‎with all of the covenants and satisfied in all material respects (except
 where already qualified by materiality, in ‎which case the Corporation has complied in
 all respects)‎ all of the terms and conditions of this Agreement on its part to be complied
 with and satisfied at or prior to the Closing Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 order, ruling or determination having the effect of ceasing or suspending the trading in
 the Common Shares or prohibiting the sale of the Offered Shares or any other securities of
 the Corporation has been issued by any regulatory authority and continuing in effect and
 no proceedings for such purpose having been instituted or being pending or, to the knowledge
 of such officers, contemplated or threatened under any relevant securities laws (including
 Applicable Securities Laws) or by any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subsequent
 to the respective dates as at which information is given in the Final Prospectus, there has
 not occurred a Material Adverse Effect or any change or development involving a prospective
 Material Adverse Effect, other than as disclosed in the Final Prospectus or any Supplementary
 Material, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no
 material change relating to the Corporation and the Subsidiary, taken as a whole, has occurred
 since the date hereof with respect to which the requisite material change report has not
 been filed and no such disclosure having been made on a confidential basis that remains confidential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the
 Corporation shall have taken such action as the Corporation has reasonably determined is
 necessary in order to obtain an exemption for, or to qualify the Offered Shares and the Broker
 Warrants (including the shares issuable upon exercise thereof) for, sale to the Purchasers
 or Brokers, as applicable, under applicable securities or the blue sky laws of the states
 of the United States, and shall provide evidence of any such actions taken promptly upon
 the written request of any Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 representations and warranties of the Corporation contained in this Agreement and in any
 certificates of the Corporation delivered pursuant to or in connection with this Agreement,
 are true and correct as at the Closing Time in all material respects (or, ‎in the case
 of any representation or warranty containing a materiality or Material ‎Adverse Effect
 qualification, in all respects) as if such ‎representations and warranties were made
 as at the Closing Time of Closing, after giving ‎effect to the transactions contemplated
 hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all
 consents, approvals, permits, authorizations or filings as may be required to be made or
 obtained by the Corporation under Applicable Securities Laws in the Qualifying Jurisdictions
 necessary for the offer and sale of the Offered Shares, the execution and delivery of this
 Agreement and the consummation of the transactions contemplated hereby, will have been made
 or obtained, as applicable (other than, in respect of the Offering, the filing of reports
 required under Applicable Securities Laws in the Qualifying Jurisdictions within the prescribed
 time periods and the filing of standard documents with the CSE, OTC, SEC, and U.S. Registration
 States which documents will be filed as soon as practicable after the Closing Date or Option
 Closing Date, as applicable, and, in any event, within such deadline as may be imposed by
 such Securities Laws or the CSE, OTC, SEC, and U.S. Registration States) and the Agents will
 have received copies of correspondence indicating that the Corporation has made all of the
 necessary filings for the issuance and listing of (i) the Offered Shares; and (ii) the Broker
 Shares issuable upon exercise of the Broker's Warrants, subject only to the Standard
 Listing Filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the
 Agents shall have completed and be satisfied, in their sole discretion, with the results
 of its due diligence investigations regarding the Corporation, its business, operations and
 financial condition and market conditions at the Closing Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the
 Agents shall have received a certificate from Capital Transfer Agency ULC as to the number
 of Common Shares issued and outstanding as at the date immediately prior to the Closing Date
 or Option Closing Date, as applicable,;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the
 Agents shall have received a certificate of status (or the equivalent) in respect of the
 Corporation and the Subsidiary issued by the appropriate regulatory authority in each jurisdiction
 in which the Corporation and the Subsidiary are incorporated, amalgamated or continued, as
 the case may be, which certificate shall be dated no more than two Business Days prior to
 the Closing Date or Option Closing Date, as applicable,;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the
 Agents shall have received duly executed copies of the Broker Warrant Certificates in form
 and substance satisfactory to the Agents, acting reasonably; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) each
 of the directors and executive officers of the Corporation shall have delivered to the Agents
 a signed copy of the Form of Lock-Up Agreement attached hereto as Schedule "A".

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| | |
|:---|:---|
| **10** | **<u>Closing and Post-Closing Obligations</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Closing shall be completed via electronic exchange of documents unless otherwise agreed to
 by the Corporation and the Lead Agents.

At or prior to the Closing Time, the Corporation shall duly and validly deliver to the Agents one or more certificate(s) in definitive form (including such other form of evidence of ownership) or in the form of an electronic deposit pursuant to the non-certificated issue system maintained by CDS Clearing and Depository Services Inc. and Depository Trust Company representing the Offered Shares registered in such name or names as the Agents may notify the Corporation in writing, against payment by the Agents to the Corporation, at the direction of the Corporation, in the lawful money of either (i) Canada by wire transfer or, if permitted by applicable law, by certified cheque or bank draft, payable at par in Vancouver, British Columbia, or (ii) United States by wire transfer or, if permitted by applicable law, by certified cheque or bank draft, payable at par in United States Dollars, in each case, of an amount equal to the proceeds of the Offering net of the Agents' Fees and estimated Agents' Expenses in accordance with Section 11 hereof.

The obligation of the Agents to complete the purchase of any Additional ‎Shares under this Agreement, upon the exercise of ‎the Over-Allotment Option, is subject to the receipt by the Agents of those ‎documents contemplated, and the satisfaction of those conditions set forth, ‎in Section 9 as the Agents may request. In the event that the Corporation ‎shall subdivide, consolidate, reclassify or otherwise change its Common ‎Shares during the period in which the Over-Allotment Option is exercisable, ‎appropriate adjustments will be made to the exercise price and to the number ‎of the Additional Shares issuable on exercise thereof such that the Agents are ‎entitled to arrange for the sale of the same number and type of securities that ‎the Agents would have otherwise arranged for had they exercised such Over-‎Allotment Option immediately prior to such subdivision, consolidation, ‎reclassification or change‎.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation shall, during the Effectiveness Period (as hereinafter defined):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepare
 and file with the SEC and state securities regulators such amendments and supplements to
 each Blue Sky Registration, the U.S. Registration Statement and the U.S. Final Prospectus
 used in connection therewith as may be necessary or advisable to keep the Blue Sky Registration
 and the U.S. Registration Statement current and effective for the Offered Shares held by
 a Purchaser and the Broker Shares issuable upon exercise of the Broker Warrants for a period
 ending on the earlier of (i) the second anniversary of the Closing Date, (ii) the date on
 which all Offered Shares and Broker Shares may be sold pursuant to Rule 144 under the Securities
 Act or any successor rule ()"**Rule 144**") and the blue sky laws of any state
 during any three-month period without the requirement for the Corporation to be in compliance
 with the current public information required under Rule 144(c)(1) or (iii) such time as all
 Offered Shares and Broker Shares have been sold pursuant to a registration statement or Rule
 144 and any applicable blue sky exemption for resale (collectively, the "**Effectiveness Period** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) make
 any necessary blue sky filings in addition to the Blue Sky Registrations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay
 the expenses incurred by the Corporation and the Purchasers and the Brokers in complying
 with Section 10(b), including, all registration and filing fees, FINRA fees, exchange listing
 fees, printing expenses, fees and disbursements of counsel for the Corporation, blue sky
 fees and expenses and the expense of any special audits incident to or required by any such
 registration (but excluding attorneys' fees of the Purchasers and any and all underwriting
 discounts and selling commissions applicable to the sale of the Offered Shares by the Purchasers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) advise
 the Purchasers and Brokers, promptly after it shall receive notice or obtain knowledge of
 the issuance of any stop order by the SEC or any state securities regulator delaying or suspending
 the effectiveness of the U.S. Registration Statement or any Blue Sky Registration or of the
 initiation of any proceeding for that purpose; and it will promptly use its commercially
 reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal
 at the earliest possible moment if such stop order should be issued; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) with
 a view to making available to the Purchasers and Brokers the benefits of Rule 144 and any
 other rule or regulation of the SEC that may at any time permit the Purchasers and Brokers
 to sell Offered Shares and Broker Shares, as applicable, to the public without registration,
 the Corporation covenants and agrees to: (i) make and keep public information available,
 as such term is understood and defined in Rule 144, until the earlier of (A) such date as
 all of the Offered Shares and Broker Shares qualify to be resold immediately pursuant to
 Rule 144 or any other rule of similar effect and all blue sky laws during any three-month
 period without the requirement for the Corporation to be in compliance with the current public
 information required under Rule 144(c)(1) or (B) such date as all of the Offered Shares and
 Broker Shares shall have been resold pursuant to Rule 144 and applicable blue sky laws (and
 may be further resold without restriction); (ii) file with the SEC in a timely manner all
 reports and other documents required of the Corporation under the U.S. Securities Act and
 under the U.S. Exchange Act; and (iii) furnish to the Purchasers and Brokers upon request,
 as long as such party owns any Offered Shares or Broker Shares, as applicable, (A) a written
 statement by the Corporation as to whether it has complied with the reporting requirements
 of the U.S. Securities Act and the U.S. Exchange Act, (B) a copy of the Corporation's
 most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other
 information as may be reasonably requested in order to avail the Purchasers and Brokers of
 any rule or regulation of the SEC that permits the selling of any such Offered Share and
 Broker Shares without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Transfer
 of Shares; Suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Corporation shall during the Effectiveness Period: (i) if deemed necessary or advisable by
 the Corporation, prepare and file from time to time with the SEC or appropriate state regulator,
 as applicable, a post-effective amendment to any Blue Sky Registration, the U.S. Registration
 Statement or a supplement to the related Final Prospectus or a supplement or amendment to
 any document incorporated therein by reference or file any other required document so that
 such Blue Sky Registration or such U.S. Registration Statement will not contain an untrue
 statement of a material fact or omit to state a material fact required to be stated therein
 or necessary to make the statements therein not misleading, and so that, as thereafter delivered
 to purchasers of the Offered Shares being sold thereunder, such U.S. Final Prospectus will
 not contain an untrue statement of a material fact or omit to state a material fact required
 to be stated therein or necessary to make the statements therein, in light of the circumstances
 under which they were made, not misleading; (ii) provide the Purchasers copies of any documents
 filed pursuant to this section; and (iii) inform the Purchasers that the Corporation has
 complied with its obligations herein (or that, if the Corporation has filed a post-effective
 amendment to the U.S. Registration Statement or any Blue Sky Registration which has not yet
 been declared effective, the Corporation will notify the Purchasers to that effect, will
 use its commercially reasonable efforts to secure the effectiveness of such post-effective
 amendment as promptly as possible and will promptly notify the Purchasers when the amendment
 has become effective).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In
 the event: (i) of any request by the SEC or any other federal or state governmental authority
 during the period of effectiveness of any Blue Sky Registration or the Registration Statement
 for amendments or supplements to such Blue Sky Registration, the U.S. Registration Statement
 or related U.S. Fina; Prospectus or for additional information; (ii) of the issuance by the
 SEC or any other federal or state governmental authority of any stop order suspending the
 effectiveness of such Blue Sky Registration, the Registration Statement or the initiation
 of any proceedings for that purpose; (iii) of the receipt by the Corporation of any notification
 with respect to the suspension of the qualification or exemption from qualification of any
 of the Offered Shares or Broker Shares for sale in any jurisdiction or the initiation of
 any proceeding for such purpose; or (iv) of any event or circumstance which necessitates
 the making of any changes in any Blue Sky Registration, the U.S. Registration Statement or
 U.S. Final Prospectus, or any document incorporated or deemed to be incorporated therein
 by reference, so that, in the case of any Blue Sky Registration or the U.S. Registration
 Statement, it will not contain any untrue statement of a material fact or omit to state a
 material fact required to be stated therein or necessary to make the statements therein not
 misleading, and that in the case of the U.S. Final Prospectus, it will not contain any untrue
 statement of a material fact or omit to state a material fact required to be stated therein
 or necessary to make the statements therein, in the light of the circumstances under which
 they were made, not misleading; then the Corporation shall promptly deliver a certificate
 in writing to the Purchasers and the Brokers (the "**Suspension Notice** ")
 to the effect of the foregoing and, upon receipt of such Suspension Notice, the Purchasers
 and Brokers will refrain from selling any Offered Shares and Broker Shares pursuant to such
 Blue Sky Registration or the Registration Statement (a "**Suspension**") until
 the Purchasers and Brokers are advised in writing by the Corporation that the current Blue
 Sky Registration or the U.S. Final Prospectus may be used, and have received copies from
 the Corporation of any additional or supplemental filings that are incorporated or deemed
 incorporated by reference in any such Blue Sky Registration or U.S. Final Prospectus. In
 the event of any Suspension, the Corporation will use its commercially reasonable efforts
 to cause the use of the Blue Sky Registration or U.S. Final Prospectus so suspended to be
 resumed as soon as reasonably practicable after delivery of a Suspension Notice to the Purchasers
 and Brokers. In addition to and without limiting any other remedies (including, without limitation,
 at law or at equity) available to the Corporation and the Purchasers and Brokers, the Corporation
 and the Purchasers and Brokers shall be entitled to specific performance in the event that
 the other party fails to comply with the provisions of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding
 the foregoing paragraphs of this section the Corporation shall use its commercially reasonable
 efforts to ensure that (i) a Suspension shall not exceed 30 days individually, (ii) Suspensions
 covering no more than 45 days, in the aggregate, shall occur during any twelve month period
 and (iii) each Suspension shall be separated by a period of at least 30 days from a prior
 Suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During
 the Effectiveness Period, the Corporation shall not require certificates evidencing the Registrable
 Securities not to contain any legend: (i) upon the effectiveness of a registration statement
 (including the Registration Statement and any Blue Sky Registration) covering such Offered
 Shares or Broker Shares, or (ii) following a sale of such Offered Shares of Broker Shares
 pursuant to Rule 144 and all applicable blue sky laws, or (iii) while such securities are
 eligible for sale under Rule 144, or (iv) if such legend is not required under applicable
 requirements of the U.S. Securities Act or any blue sky law (including judicial interpretations
 and pronouncements issued by the Staff of the SEC). Following such time as restrictive legends
 are not required to be placed on certificates representing Offered Shares or Broker Shares,
 the Corporation will, no later than five trading days following the delivery by a Purchaser
 or Broker to the Corporation or the Corporation's transfer agent of a certificate representing
 the Offered Shares or Broker Shares containing a restrictive legend, deliver or cause to
 be delivered to such Purchaser or Broker a certificate representing such securities that
 is free from all restrictive and other legends.

---

| | |
|:---|:---|
| **11** | **<u>Expenses</u>** |

---

**The Corporation shall pay all reasonable expenses and fees in connection with the Offering including, without limitation: (i) all expenses of or incidental to the creation, issue, sale or distribution of the Offered Shares; (ii) the fees and expenses of the Corporation's legal counsel, auditors and other advisors; (iii) all costs incurred in connection with the preparation of documentation related to the Offering, including filing fees and fees related to Blue Sky; (iv) the fees and disbursements of the Agents' legal counsel and all applicable taxes thereon; and (v) all reasonable "out-of-pocket expenses" of the Agents (plus all taxes thereon) ((iv) and (v) collectively, the "Agents' Expenses") ; provided that in the case of the Roth only, in no event shall Roth's Agent's Expenses exceed US$75,000. All expenses payable by the Corporation to the Agents in accordance with this Agreement shall be payable whether or not the Offering is completed. Such fees and expenses shall be deducted from the gross proceeds otherwise payable to the Corporation at the Closing Time. Where taxes are applicable and payable by the Agents under the terms of this Agreement, an additional amount will be charged to and shall be payable by the Corporation to the Agents at the Closing Time from the gross proceeds of the Offering to reimburse the Agents for such taxes.**

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| | |
|:---|:---|
| **12** | **<u>Agents' Obligations and Agents' Authority</u>** |

---

The Agents' obligations under this Agreement will be several and not joint, and the Agents' respective obligations and rights and benefits hereunder will be as to the following percentages:

Echelon Wealth Partners Inc. 52.5%

Roth Capital Partners, LLC 35.0%

Laurentian Bank Securities Inc. 12.5%

The Corporation will be entitled to and will act on any notice, request, direction, consent, waiver, extension and other communication given or agreement entered into by or on behalf of the Agents by the Lead Agents who will represent the Agents and have authority to bind the Agents hereunder, other than with respect to any of the matters contemplated by Sections 12, 13, 14, and 19 hereof. In all cases, the Lead Agents will use their best efforts to consult with the other Agents prior to taking any action contemplated herein.

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| | |
|:---|:---|
| **13** | **<u>Indemnities</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation agrees to indemnify and hold harmless each Agent and its respective affiliates,
 directors, officers, partners, agents, employees, advisors, shareholders, successors and
 assigns of the Agents (hereinafter referred to as the "**Personnel**") from
 and against any and all expenses, losses (other than loss of profits), claims, actions, suits,
 proceedings, court costs, contingencies, damages or liabilities, whether joint or several
 (including the aggregate amount paid in reasonable settlement of any actions, suits, proceedings
 or claims and costs of investigation) , and the reasonable fees and expenses of its counsel
 that may be incurred in advising with respect to and/or defending any claim (including, without
 limitation, securityholder or derivative actions, arbitration proceedings or otherwise) that
 may be made or threatened against the Agents and/or the Personnel, to which the Agents and/or
 their Personnel ‎may become subject or otherwise involved in any capacity under any statute
 or common law or otherwise, ‎insofar as such expenses, losses, claims, damages, liabilities
 or actions arise out of or are based, directly or ‎indirectly, upon (a) the performance
 of professional services rendered to the Corporation by the Agents and ‎their Personnel
 hereunder (b) any untrue statement or alleged untrue statement of a material fact ‎contained
 in the U.S. Preliminary Prospectus, U.S. Final Prospectus, U.S. Registration Statement, or
 Blue Sky Registrations used to offer securities of the Corporation in a transaction subject
 to the ‎engagement as such materials may be amended or supplemented (and including but
 not limited to any ‎documents deemed to be incorporated therein by reference) (collectively,
 the "**Offering Materials** "), or any ‎omission or alleged omission to
 state therein a material fact necessary in order to make the statements therein, ‎in
 the light of the circumstances under which they were made, not misleading, or (c) otherwise
 in connection ‎with the matters referred to in this Agreement, whether performed before
 or after the Corporation's execution of this Agreement, together with any expenses,
 losses, claims, damages or liabilities that are incurred in enforcing this indemnity.

In addition, the Corporation shall indemnify and save harmless the Agents from any and all losses or expenses relating to sales to investors on the President's List and investors that are Company Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 anything to the contrary contained herein, the indemnity contemplated in this Section 13
 shall not apply to the extent that a court of competent jurisdiction in a final judgment
 that has become non-appealable shall determine that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Agents or its Personnel have been grossly negligent or committed any fraudulent act or acted
 in wilful misconduct in the course of the performance of professional services rendered to
 the Corporation by the Agents and/or their Personnel or otherwise in connection with the
 matters referred to in this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 expenses, losses, claims, damages or liabilities, as to which indemnification is claimed,
 were caused by the gross negligence, fraudulent act or wilful misconduct referred to in Section
 13(b)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 for any reason (other than the occurrence of any of the events itemized in Sections 13(b)(i)
 and (ii) above), the indemnification contemplated in this Section 13 is unavailable to the
 Agents or insufficient to hold them harmless, then the Corporation shall contribute to the
 amount paid or payable by the Agents as a result of such expense, loss, claim, damage or
 liability in such proportion as is appropriate to reflect not only the relative benefits
 received by the Corporation on the one hand and the Agents on the other hand but also the
 relative fault of the Corporation and the Agents, as well as any relevant equitable considerations;
 provided that the Corporation shall, in any event, contribute to the amount paid or payable
 by the Agents as a result of such expense, loss, claim, damage or liability, any excess of
 such amount over the amount of the Agents' Fee received by the Agents hereunder pursuant
 to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Corporation agrees that in case any legal proceeding shall be brought against the Corporation
 and/or the Agents by any governmental commission or regulatory authority or any stock exchange
 or other entity having regulatory authority, either domestic or foreign, or any such entity
 shall investigate the Corporation and/or the Agents and any Personnel of the Agents shall
 be required to testify in connection therewith or shall be required to respond to procedures
 designed to discover information regarding, in connection with, or by reason of the performance
 of professional services rendered to the Corporation by the Agents, the Agents shall have
 the right to employ one firm of its own counsel in connection therewith, and the reasonable
 fees and expenses of such counsel as well as the reasonable and documented costs (including
 an amount to reimburse the Agents for time spent by its Personnel in connection therewith)
 and out-of-pocket expenses incurred by its Personnel in connection therewith shall, be paid
 by the Corporation as they occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Promptly
 after receipt of notice of the commencement of any legal proceeding against the Agents or
 any of their Personnel or after receipt of notice of the commencement of any investigation,
 which is based, directly or indirectly, upon any matter in respect of which indemnification
 may be sought from the Corporation, the Agents will notify the Corporation in writing of
 the commencement thereof and, throughout the course thereof, will provide copies of all relevant
 documentation to the Corporation, will keep the Corporation advised of the progress thereof
 and will discuss with the Corporation all significant actions proposed. The omission so to
 notify the Corporation shall not relieve the Corporation of any liability which the Corporation
 may have to the Agents except only to the extent that any such delay in giving or failure
 to give notice as herein required materially prejudices the defence of such action, suit,
 proceeding, claim or investigation or results in any material increase in the liability which
 the Corporation would otherwise have under this indemnity had the Agents not so delayed in
 giving or failed to give the notice required hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Corporation shall be entitled, within 14 days after the receipt of the notice, at its own
 expense, to participate in and, to the extent it may wish to do so, assume the defence thereof,
 provided such defence is conducted by experienced and competent counsel. If the Corporation
 undertakes, conducts and controls the settlement or defences, the relevant Personnel shall
 have the right to participate in such settlement or defence. Upon the Corporation notifying
 the Agents in writing of its election to assume the defence and retaining counsel, the Corporation
 shall not be liable to the Agents for any legal expenses subsequently incurred by it in connection
 with such defence. If such defence is assumed by the Corporation, the Corporation throughout
 the course thereof will provide copies of all relevant documentation to the Agents, will
 keep the Agents advised of the progress thereof and will discuss with the Agents all significant
 actions proposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding
 Section 13(f), the Agents shall have the right, at the Corporation's expense, to employ
 counsel of such Agents' choice, in respect of the defence of any action, suit, proceeding,
 claim or investigation if: (i) the employment of such counsel has been authorized by the
 Corporation; or (ii) the Corporation has not assumed the defence and employed counsel therefor
 within a reasonable time after receiving notice of such action, suit, proceeding, claim or
 investigation; or (iii) counsel retained by the Corporation or the Agents have advised the
 Agents that representation of both parties by the same counsel would be inappropriate for
 any reason, including without limitation, because there may be legal defences available to
 the Agents or to any of the Agents, which are different from or in addition to those available
 to the Corporation (in which event and to that extent, the Corporation shall not have the
 right to assume or direct the defence on the Agents' behalf) or that there is an actual
 or potential conflict of interest between the Corporation and the Agents or between the Agents
 or the subject matter of the action, suit, proceeding, claim or investigation may not fall
 within the indemnity set forth herein (in either of which events the Corporation shall not
 have the right to assume or direct the defence on the Agents' behalf).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No
 admission of liability and no settlement of any action, suit, proceeding, claim or investigation
 shall be made without the consent of the Agents. No admission of liability shall be made
 and the Corporation shall not be liable for any settlement of any action, suit, proceeding,
 claim or investigation made without its consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 indemnity and contribution obligations of the Corporation shall be in addition to any liability
 which the Corporation may otherwise have, shall extend upon the same terms and conditions
 to the Personnel of the Agents and shall be binding upon and enure to the benefit of any
 successors, assigns, heirs and personal representatives of the Corporation, the Agents and
 any of the Personnel of the Agents. The foregoing provisions shall survive the completion
 of professional services rendered under this Agreement or any termination of this Agreement.

---

| | |
|:---|:---|
| **14** | **<u>Termination Rights</u>** |

---

In addition to any other remedies which may be available to the Agents, each Agent shall be entitled to terminate and cancel, without any liability on its part, all of its obligations under this Agreement and the obligations of any Person whom such Agent(s) have solicited to purchase the Offered Shares, by notice in writing to that effect delivered to the Corporation prior to the Closing Time if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Material Change Out* - there shall occur or come into effect any material change in the business,
 affairs or financial condition or financial prospects of the Corporation or the Subsidiary,
 or any change in a material fact or new material fact shall arise, or there should be discovered
 any previously undisclosed material fact which, in each case, in the reasonable opinion of
 the Agents has or would be expected to have a significant adverse effect on the market price
 or value or marketability of the Offered Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Disaster Out* - there should develop, occur or come into effect or existence any event, action,
 state or condition (including without limitation, terrorism or accident) or major financial,
 political or economic occurrence of national or international consequence, any declared pandemic
 of a serious contagious disease (including the COVID-19 pandemic, to the extent that there
 is any material adverse development related thereto after the date hereof, or similar event
 or the escalation thereof), or any action, government, law, regulation, inquiry or other
 occurrence of any nature, which in the sole opinion of the Agent, seriously adversely affects
 or involves or may seriously adversely affect or involve the financial markets in Canada
 or the United States or the business, operations or affairs of the Corporation and or the
 Subsidiary taken as a whole or the marketability of the Offered Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Regulatory Proceedings Out* - (i) any inquiry, action, suit, proceeding or investigation (whether
 formal or informal) (including matters of regulatory transgression or unlawful conduct) is
 commenced, announced or threatened in relation to the Corporation or any one of the officers,
 directors or principal shareholders of the Corporation where wrong-doing is alleged or any
 order made by any federal, provincial, state, municipal or other governmental department,
 commission, board, bureau, agency or instrumentality including, without limitation, the CSE,
 OTC, SEC or any securities regulatory authority which involves a finding of wrong doing;
 or (ii) any order, action, proceeding, law or regulation is made, threatened, enacted or
 changed which ceases trading in the Corporation's securities or, in the opinion of
 the Agents, acting reasonably, operates to prevent or restrict the trading of the common
 shares of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Market Out* - the state of the financial markets in Canada, the United States or elsewhere where
 it is planned to market the Offered Shares is such that in the reasonable opinion of the
 Agents, the Offered Shares cannot be marketed profitably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Due Diligence Out* – The Agents are not satisfied in its sole discretion with its due
 diligence review and investigations in respect of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Breach Out* - the Corporation is in breach of any material term, condition or covenant of this
 Agreement that may not be reasonably expected to be remedied prior to the closing time of
 the Offering or any representation or warranty given by the Corporation in this Agreement
 becomes or is false.

If any of the Agents terminate this Agreement pursuant to this Section there shall be no further liability on the part of such Agents or of the Corporation to such Agent except in respect of any liability which may have arisen or may thereafter arise under Sections 11, 13 or 14 hereof.

---

| | |
|:---|:---|
| **15** | **<u>Breach of Agreement</u>** |

---

All terms and conditions of this Agreement to be performed or satisfied by the Corporation shall be constituted as conditions and any material breach of, or failure by the Corporation to comply with, any term or condition of this Agreement shall entitle the Agents, acting reasonably, on behalf of the Purchasers of the Offered Shares, to terminate their respective obligations to purchase the Offered Shares by notice to that effect given to the Corporation prior to the Closing Time. In the event of any such termination, there shall be no further liability on the part of the Corporation or the Agents except in respect of any liability which may have arisen or may thereafter arise under Section 11, 13 or 14 hereof. The Agents may waive, in whole or in part, or extend the time for compliance with, any terms and conditions without prejudice to its rights in respect of any other terms and conditions or any other or subsequent breach or non-compliance provided, however, that any waiver or extension must be in writing and signed by the Agents in order to be binding upon it.

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| | |
|:---|:---|
| **16** | **<u>Over-Allotment</u>** |

---

In connection with the distribution of the Offered Shares, the Agents and members of their selling group (if any) may over-allot or effect transactions which stabilize or maintain the market price of the Common Shares at levels above those which might otherwise prevail in the open market, in compliance with Applicable Securities Laws. Those stabilizing transactions, if any, may be discontinued at any time.

---

| | |
|:---|:---|
| **17** | **<u>Notices</u>** |

---

Any notice under this Agreement shall be given in writing and either delivered or telecopied to the party to receive such notice at the address or telecopy numbers indicated below:

To the Corporation:

Bunker Hill Mining Corp.

82 Richmond Street East

Toronto, ON M5C 1P1

Attention: David Wiens

Email: <u>david.wiens@bunkerhillmining.com</u>

with a copy to:

Blake, Cassels & Graydon LLP

595 Burrard Street, Suite 2600

Vancouver, BC V7X 1L3

Attention: Jamie Kariya

Email: <u>jamie.kariya@blakes.com</u>

to the Agents:

Echelon Wealth Partners Inc.

181 Bay Street, Suite 2500

Toronto, ON M5J 2T3

Attention: Jason Yeung

Email: <u>jyeung@echelonpartners.com</u>

Roth Capital Partners, LLC

888 San Clemente Drive

Newport Beach, California 92660

Attention: Joseph Barry

Email: <u>jbarry@roth.com</u>

Laurentian Bank Securities Inc.

1360 Rene-Levesque Blvd. W, Suite 620

Montreal, Quebec H3G 0E8

Attention: Joseph Gallucci

Email: <u>tgalluccij@lb-securities.ca</u>

with a copy (but not as notice) to:

DLA Piper (Canada) LLP

Suite 6000, 1 First Canadian Place

PO Box 367, 100 King St W

Toronto, Ontario M5X 1E2

Attention: Derek Sigel

Email: <u>derek.sigel@dlapiper.com</u>

DLA Piper (US) LLP

4365 Executive Drive, Suite 1100

San Diego, CA 92121

Attention: Larry Nishnick

Email: <u>larry.nishnick@us.dlapiper.com</u>

or to such other address as any of the parties may designate by notice given to the others.

Any notice or other communication required or permitted under this Agreement shall be deemed to have been duly given and made if (a) in writing and served by personal delivery upon the party for whom it is intended; (b) if delivered by email upon the earlier of (i) with receipt confirmed or (ii) one Business Day following sending by email; or (c) if delivered by certified mail, registered mail or courier service, upon the earlier of (i) return receipt received to the party at the address set forth below, to the persons indicated or (ii) one Business Day following sending such certified mail, registered mail or courier service.

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| | |
|:---|:---|
| **18** | **<u>Relationship between the Corporation and the Agents</u>** |

---

In connection with the services described herein, the Agents shall act as independent contractor, and any duties of the Agents arising out of this Agreement shall be owed solely to the Corporation. The Corporation acknowledges that each of the Agents is a securities firm that is engaged in securities trading and brokerage activities, as well as providing investment banking and financial advisory services, which may involve services provided to other companies engaged in businesses similar or competitive to the Business and that the Agents shall have no obligation to disclose such activities and services to the Corporation. The Corporation acknowledges and agrees that in connection with all aspects of the engagement contemplated hereby, and any communications in connection therewith, the Corporation, on the one hand, and the Agents and any of their respective affiliates through which they may be acting, on the other hand, will have a business relationship that does not create, by implication or otherwise, any fiduciary duty on the part of the Agents or such affiliates, and each party hereto agrees that no such duty will he deemed to have arisen in connection with any such transactions or communications. The Corporation acknowledges and agrees that it waives, to the fullest extent permitted by law, any claims the Corporation and its affiliates may have against any of the Agents for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Agents shall have no liability (whether direct or indirect) to the Corporation or any of its affiliates in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Corporation, including stockholders, employees or creditors of the Corporation. Information which is held elsewhere within any of the Agents, but of which none of the individuals in the investment banking department or division of any of the Agents involved in providing the services contemplated by this Agreement actually has knowledge (or without breach of internal procedures can properly obtain) will not for any purpose he taken into account in determining any of the responsibilities of the Agents to the Corporation under this Agreement.

---

| | |
|:---|:---|
| **19** | **<u>Survival</u>** |

---

The obligations of the Corporation set out in Sections 11, 13 or 14 shall survive the purchase of the Offered Shares by the Purchasers and shall continue in full force and effect unaffected by any subsequent disposition of the Offered Shares, and the Agents shall not be limited or prejudiced by any investigation made by or on behalf of the Agents in the course of the distribution of the Offered Shares. All other representations, warranties, covenants, and agreements of the Corporation contained herein or contained in any document submitted pursuant to this Agreement or in connection with the purchase of the Offered Shares shall survive the purchase of the Offered Shares by the Purchasers and shall continue in full force and effect unaffected by any subsequent disposition of the Offered Shares, for a period of three years from the Closing Date, and the Agents shall not be limited or prejudiced by any investigation made by or on behalf of the Agents in the course of the distribution of the Offered Shares.

---

| | |
|:---|:---|
| **20** | **<u>Entire Agreement</u>** |

---

This Agreement constitutes the entire agreement between the parties pertaining to the Offering and the transactions contemplated thereby and supersedes any and all prior negotiations, agreements and understandings between the parties pertaining to the Offering and the transactions contemplated thereby, including the Engagement Letter. There are no representations, warranties, covenants, agreements, conditions, indemnities or other provisions, whether oral or written, express or implied, collateral, statutory or otherwise, relating to the Offering or the transactions contemplated thereby except as expressly contained in this Agreement. No reliance is placed on any representation, warranty, opinion, advice or assertion of fact made either prior to, contemporaneous with, or after entering into this Agreement by any party or its directors, officers, employees, partners or agents, to any other party or its directors, officers, employees, partners or agents, except to the extent that the same has been reduced to writing and included as a term of this Agreement, and none of the parties has been induced to enter into this Agreement by reason of any such representation, warranty, opinion, advice or assertion of fact.

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| | |
|:---|:---|
| **21** | **<u>Further Assurances.</u>** |

---

Each of the parties hereto shall do or cause to be done all such acts and things and shall execute or cause to be executed all such documents, agreements and other instruments as may reasonably be necessary or desirable for the purpose of carrying out the provisions and intent of this Agreement.

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| | |
|:---|:---|
| **22** | **<u>Severability</u>** |

---

If any provision of this Agreement is determined to be void or unenforceable, in whole or in part, such void or unenforceable provision shall not affect or impair the validity of any other provision of this Agreement and shall be severable from this Agreement.

---

| | |
|:---|:---|
| **23** | **<u>Counterparts</u>** |

---

This Agreement may be executed in any number of counterparts and by fax or email all of which when taken together shall be deemed to be one and the same document and not withstanding its actual date of execution shall be deemed to be dated as of the date first above written.

---

| | |
|:---|:---|
| **24** | **<u>General</u>** |

---

The Agreement shall be governed by and interpreted in accordance with the laws of British Columbia and the federal laws of Canada applicable therein and time shall be of the essence hereof. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the courts of British Columbia with respect to any matter arising hereunder or related thereto.

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| | |
|:---|:---|
| **25** | **<u>Successors and Assigns</u>** |

---

The terms and provisions of this Agreement shall be binding upon and enure to the benefit of the Corporation and the Agents and their respective successors and permitted assigns.

---

| | |
|:---|:---|
| **26** | **<u>Effective Date.</u>** |

---

This Agreement is intended to and shall take effect as of the date first set forth above, notwithstanding its actual date of execution or delivery.

***[Signature Page Follows]***

 ****

If the above is in accordance with your understanding, please sign and return to the Agents a copy of this letter, whereupon this letter and your acceptance shall constitute a binding agreement between the Corporation and the Agents.

---

| |
|:---|
| **ECHELON WEALTH PARTNERS INC.** |
| Per: |
| Name: |
| Title: |
| **ROTH CAPITAL PARTNERS, LLC** |
| Per: |
| Name: |
| Title: |
| **LAURENTIAN BANK SECURITIES INC.** |
| Per: |
| Name: |
| Title: |

---

The above offer is hereby accepted and agreed to as of the date first above written.

---

| |
|:---|
| **BUNKER HILL MINING CORP.** |
| Per: |
| Name: |
| Title: |

---

**SCHEDULE "A"**

**FORM OF LOCK-UP AGREEMENT**

---

| | |
|:---|:---|
| **TO:** | **ECHELON WEALTH PARTNERS INC.** |
|  | **ROTH CAPITAL PARTNERS, LLC** |
|  | **LAURENTIAN BANK SECURITIES INC.** |
|  | (collectively, the "**Agents**") |

---

Dear Sirs and Mesdames:

**Re: Bunker Hill Mining Corp.**

The undersigned understands that Echelon Wealth Partners Inc. ("**Echelon**"), Roth Capital Partners, LLC and Laurentian Bank Securities Inc. (collectively, the "**Agents**") have entered into an agency agreement (the "**Agency Agreement**") with Bunker Hill Mining Corp. (the "**Corporation**") providing for the offering (the "**Offering**") of shares of common stock of the Corporation ("**Common Shares**") at the purchase price of $♦ per Common Share (the "**Issue Price**").

The undersigned, being a director and/or executive officer of the Corporation, recognizes that the Offering contemplated by the Agency Agreement will be of benefit to the undersigned and the Corporation and acknowledges that the Agents are and will be relying on the representations and agreements of the undersigned contained herein in carrying out the Offering.

To induce the Agents to continue their efforts in connection with the Offering and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agrees that the undersigned will not directly or indirectly, offer, issue, sell, grant, secure, pledge, or otherwise transfer, dispose of or monetize, or engage in any hedging transaction, or enter into any form of agreement or arrangement the consequence of which is to alter economic exposure to, or announce any intention to do so, in any manner whatsoever, any Common Shares or securities convertible into, exchangeable for, or otherwise exercisable to acquire Common Shares or other equity securities of the Corporation (collectively, the "**Securities**"), whether currently owned or hereafter acquired, directly or indirectly, either of record or beneficially by the undersigned, for a period of 90 days after the closing date of the Offering, without the prior written consent of Echelon, on behalf of the Agents, such consent not to be unreasonably withheld or delayed.

Nothing in this letter agreement shall prohibit or otherwise restrict the transfer, sale or tender of any or all of the Securities owned by the undersigned (i) to the undersigned's affiliates (as such term is defined in the *Securities Act* (Ontario)) for tax or other *bona fide* tax or estate planning purposes, provided that each transferee shall, as a condition precedent to such transfer, agree to enter into a substantially similar lock-up letter agreement in favour of the Agents; (ii) pursuant to a take-over bid (as defined in the *Securities Act* (Ontario)) or any other similar business combination transaction, including, without limitation, a merger, arrangement or amalgamation (*provided,* that all Securities owned by the undersigned that are not so transferred, sold or tendered remain subject to this letter agreement; and *provided, further,* that it shall be a condition of transfer that if such take-over bid or other transaction is not completed, any Securities owned by the undersigned subject to this letter agreement shall remain subject to the restrictions herein). For greater certainty, nothing in this letter agreement shall prevent: (i) the receipt of a grant of share options, restricted stock units and deferred share units (collectively, "**Incentive Securities**") pursuant to the Corporation's incentive share plan, restricted stock unit incentive plan and deferred share unit plan, respectively, provided that the exercise price of each Incentive Security shall not be less than the Issue Price, (ii) the conversion, exercise or exchange of any convertible, exercisable or exchangeable securities existing on the date of this letter agreement or upon exercise of stock options granted in accordance with (i) above; or (iii) the receipt of Common Shares or other Securities from the Corporation (collectively, "**Compensation Securities**") as bonuses or for services rendered by the undersigned provided that the deemed issue price of each Compensation Security shall not be less than the Issue Price, and provided that any Common Shares or other Securities received will also be subject to this letter agreement.

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this letter agreement and that, upon the reasonable request of the Agents, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof.

This letter agreement is irrevocable and will be binding on the undersigned and the respective successors, heirs, personal representatives, and assigns of the undersigned, provided however that the undersigned shall not assign this letter agreement without the prior written consent of Echelon, on behalf of the Agents.

This letter agreement and the rights and obligations of the undersigned shall be governed and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. All matters relating hereto shall be submitted to the court of appropriate jurisdiction in the Province of British Columbia, Canada, for the purpose of this letter agreement and for all related proceedings.

This letter agreement may be executed in any number of counterparts, each of which when delivered, either in original, recorded electronic transmission or facsimile form, shall be deemed to be an original and all of which together shall constitute one and the same document.

*[Remainder of page intentionally left blank.]*

 

**DATED** this<u> </u> day of ________________, 2022.

---

| |
|:---|
| **Print Name** |
| **Signature** |

---

**Exhibit A**

**U.S. Registration States**

Arizona

Arkansas

California

Colorado

Connecticut

District of Columbia

Florida

Georgia

Idaho

Illinois

Indiana

Iowa

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

Oregon

Pennsylvania

Puerto Rico

South Carolina

Tennessee

Texas

Utah

Vermont

Virginia

Washington

Wisconsin

Wyoming

## Exhibit 10.9

**Exhibit 10.9**

**BUNKER HILL MINING CORP.<br> (the "Corporation")**

**COMPENSATION OPTION NO. 2023 - [●]**

**ENTITLING THE HOLDER TO PURCHASE SHARES**

This is to certify that for value received, **[Registered Holder]**, **[Address of Registered Holder]** (the "**Holder**") is the registered holder of a compensation option ("**Compensation Option**"), entitling the Holder to subscribe for and purchase **[●]** shares of common stock of the Corporation (each, a "**Common Share**"), at an exercise price of C$♦ per Common Share (as adjusted pursuant to the provisions hereof, the "**Exercise Price**") upon the terms and conditions as hereinafter set forth. This Compensation Option is to remain exercisable from the date hereof until the Expiry Date (as hereinafter defined).

As used herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Board** "
 means the board of directors of the Corporation;

(ii) "**Business Day**" means any day other than a Saturday, Sunday or other day on which commercial banks in the City of Toronto are authorized
 or required by law to close; and

(iii) "**Issue Date**" means ♦, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Exercise Period</u>**

This Compensation Option is exercisable, in whole or in part, at any time and from time to time during the period from the date hereof and prior to 5:00 p.m. (PST) on ♦, 2025 (the "**Expiry Date**") and in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Payment</u>**

The Common Shares subscribed for must be paid in full at the time of subscription, by certified cheque or bank draft payable in Canadian funds or wire transfer of immediately available funds to or to the order of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Exercise of Compensation Option</u>**

This Compensation Option may be exercised, in whole or in part, at any time prior to the Expiry Date by the Holder hereof completing the subscription form attached as Schedule A hereto (the "**Subscription Form**") and made a part hereof and delivering same to the Chief Financial Officer at the Corporation, at its head office at 82 Richmond Street East, Toronto, Ontario M5C 1P1 or by email at david.wiens@bunkerhillmining.com (or such other address as may be designated in writing by the Corporation to the Holder), together with this Compensation Option and the amount, payable to the order of the Corporation, equal to the Exercise Price subscribed for upon exercise of this Compensation Option. The Corporation will promptly notify the Holder in writing of any change of address of its head office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Common Share Certificates</u>**

Upon valid exercise of this Compensation Option, the Corporation will cause to be issued to the person or persons in whose name or names the Common Shares so subscribed for the number of fully paid and non-assessable Common Shares subscribed for, and such person or persons will be deemed upon presentation and payment as aforesaid, to be the holder or holders of record of such Common Shares. Within three (3) Business Days after receipt of the executed Subscription Form and payment of the Exercise Price, the Corporation will cause to be mailed or delivered to the holder at the address or addresses specified in the attached Subscription Form, certificates evidencing the number of Common Shares subscribed for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Exercise in Whole or in Part</u>**

This Compensation Option may be exercised in whole or in part, and if exercised in part, the Corporation will issue another Compensation Option without charge to the Holder, in substantially the same form, evidencing the remaining rights to purchase Common Shares, provided that any such right will terminate on the Expiry Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Non-Transferability</u>**

This Compensation Option is not transferable by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>No Fractional Common Shares</u>**

No fractional Common Shares will be issued upon exercise of this Compensation Option, nor will any compensation be made for such fractional Common Shares, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Adjustments</u>**

The Exercise Price in effect and the number and type of securities purchasable under this Compensation Option at any date will be subject to adjustment from time to time as follows:

(a) If
 and whenever at any time prior to the Expiry Date, the Corporation will (i) subdivide or redivide the outstanding Common Shares into
 a greater number of Common Shares, (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common
 Shares, or (iii) issue Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock
 dividend, the Exercise Price in effect on the effective date of any such event will be adjusted immediately after such event or on
 the record date for such issue of Common Shares by way of stock dividend, as the case may be, so that it will equal the amount determined
 by multiplying the Exercise Price in effect immediately prior to such event by a fraction, of which the numerator will be the total
 number of Common Shares outstanding immediately prior to such event and of which the denominator will be the total number of Common
 Shares outstanding immediately after such event. The number of Common Shares which the Holder is entitled to purchase for this Compensation
 Option will be adjusted at the same time by multiplying the number by the inverse of the aforesaid fraction. Any such adjustments
 will be made successively whenever any event referred to in this subparagraph (a) will occur and any such issue of Common Shares
 by way of a stock dividend will be deemed to have been made on the record date for the stock dividend for the purpose of calculating
 the number of outstanding Common Shares immediately after such event;

(b) If
 and whenever at any time prior to the Expiry Date there is a reclassification of the Common Shares at any time outstanding or a capital
 reorganization of the Corporation not covered in subparagraph (a) or a consolidation, amalgamation, arrangement or merger of the
 Corporation with or into any other corporation or a sale of the property and assets of the Corporation as or substantially as an
 entirety to any other person, a Holder of this Compensation Option which has not been exercised prior to the effective date of such
 reclassification, capital reorganization, consolidation, amalgamation, merger or sale will therein or, upon the exercise of such
 Compensation Option, be entitled to receive and will accept in lieu of the number of Common Shares, as then constituted, to which
 the Holder was previously entitled upon exercise of this Compensation Option, but for the same aggregate consideration payable therefor,
 the number of Common Shares or other securities or property of the Corporation or of the company resulting from such reclassification,
 capital reorganization, consolidation, amalgamation or merger or of the person to which such sale may be made, as the case may be,
 that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation,
 merger or sale on the effective date thereof, if the Holder had been the registered holder of the number of Common Shares to which
 the Holder was previously entitled upon due exercise of this Compensation Option; and in any case, if necessary, appropriate adjustment
 will be made in the application of the provisions set forth herein with respect to the rights and interests thereafter of the Holder
 of this Compensation Option to the end that the provisions set forth herein will thereafter correspondingly be made applicable, as
 nearly as may reasonably be, in relation to any Common Shares or securities or property to which the Holder may be entitled upon
 the exercise of such Compensation Option thereafter;

(c) In
 any case in which this section requires that an adjustment become effective immediately after a record date for an event referred
 to herein, the Corporation may defer, until the occurrence of such event, issuing to the Holder of the Compensation Option exercised
 after such record date and before the occurrence of such event the kind and amount of Common Shares, other securities or property
 to which he would be entitled upon such exercise by reason of the adjustment required by such event; provided that the Corporation
 will deliver to such Holder an appropriate instrument evidencing such Holder's right to receive the kind and amount of Common
 Shares, other securities or property to which he or she would be entitled upon the occurrence of the event requiring such adjustment
 and the right to receive any distributions made or declared in favour of holders of record of Common Shares as constituted from time
 to time on and after such date as such Holder would, but for the provisions of this subparagraph (c), have received, or become entitled
 to receive, on such exercise;

(d) The
 adjustments provided for in this Section 8 are cumulative and will apply to successive subdivisions, redivisions, reductions, combinations,
 consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this paragraph; provided
 that notwithstanding any other provision of this paragraph, (i) no adjustment of the Exercise Price or number of Common Shares, as
 then constituted, purchasable will be required unless such adjustment would require an increase or decrease of at least 2% in the
 Exercise Price then in effect or the number of Common Shares, as then constituted, purchasable, and (ii) any adjustments which by
 reason of this subparagraph (d) are not required to be made will be carried forward and taken into account in any subsequent adjustment;

(e) In
 the event of any question arising with respect to the adjustments provided in this paragraph, such question will be conclusively
 determined by the auditors of the Corporation, or if they are unable or unwilling to act, by such other firm of independent chartered
 or public accountants as may be selected by action by the Board. Such auditors will have access to all necessary records of the Corporation
 and such determination will be binding upon the Corporation and the Holder. In the event that any such determination is made, the
 Corporation shall deliver a certificate to the Holder signed by such auditors or accountants describing such determination;

(f) As
 a condition precedent to the taking of any action which would require an adjustment in any of the subscription rights pursuant to
 this Compensation Option, including the number of Common Shares which are to be received upon the exercise thereof, the Corporation
 will take any action which may, in the opinion of counsel, be necessary in order that the Corporation, any successor to the Corporation,
 or any successor to the Corporation's property and assets may validly and legally issue as fully paid and non-assessable all
 the Common Shares which the Holder of such Compensation Option is entitled to receive on the full exercise thereof in accordance
 with the provisions hereof;

(g) No
 adjustment will be made in the acquisition rights attached to this Compensation Option, if the issue of Common Shares is being made
 pursuant to any Board approved stock option, stock purchase plan or other equity incentive plan or program in force from time to
 time for directors, officers, employees or consultants of the Corporation;

(h) No
 adjustment will be made pursuant to this paragraph if the Holder is entitled to participate in any event described in this paragraph
 on the same terms, *mutatis mutandis,* as if the Holder had exercised this Compensation Option prior to, or on the effective
 date or record date of, such event, subject to regulatory approval; and

(i) In
 case the Corporation will take any action affecting the Common Shares other than action described in this Section 8, which in the
 opinion of the Board would materially affect the rights of the Holder, the Exercise Price and/or the number of Common Shares which
 may be acquired upon exercise of the Compensation Option, an appropriate adjustment will be made by action of the Board in such manner
 and at such time, in their sole discretion, as they may determine to be equitable in the circumstances. Failure of the Board to make
 such an adjustment will be conclusive evidence that the Board has determined that it is equitable to make no adjustment in the circumstances.

Immediately after the occurrence of any event which requires an adjustment pursuant to this Section 8, other than an adjustment pursuant to Section 8(a), in the Exercise Price or in any of the subscription rights pursuant to this Compensation Option, including the number of Common Shares, as then constituted, which are to be received upon the exercise thereof, the Corporation will forthwith deliver to the Holder a certificate of the Corporation specifying the particulars of such event and the required adjustment and the computation of such adjustment and give at least 10 Business Days' notice to the Holder of this Compensation Option of the record date or effective date of such event, as the case may be, and such notice will include particulars of such event and the required adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **<u>General Covenants, Representations and Warranties of the Corporation</u>**

(a) The Corporation represents and warrants that it is duly authorized to enter into and perform its obligations under this Compensation Option.

(b) The Corporation will at all times reserve and keep available free from pre-emptive rights, out of the aggregate of its authorized unissued Common Shares, for the purpose of enabling it to satisfy any obligation to issue Common Shares upon exercise of this Compensation Option, the full number of Common Shares deliverable upon the exercise of the Compensation Option.

(c) The Corporation covenants that all Common Shares that may be issued on exercise of this Compensation Option will, upon issue, be fully paid and non-assessable.

(d) Subject to applicable laws, the Corporation will from time to time take all action which may be necessary to obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and will make all securities' acts filings under Canadian federal, state or provincial laws, which may be or become requisite in connection with the issuance and exercise of this Compensation Option.

(e) The Corporation will give written notice of the issue of Common Shares pursuant to the exercise of this Compensation Option, in such detail as may be required, to each exchange and to applicable securities commissions or similar regulatory authorities.

(f) Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this Compensation Option, and (in the case of loss, theft or destruction) of indemnification satisfactory to the Corporation, and upon surrender and cancellation of this Compensation Option, if mutilated, the Corporation will promptly execute and deliver a new Compensation Option of like tenor and date.

(g) The Corporation represents and warrants that all necessary corporate actions have been done and performed to create this Compensation Option and to make this Compensation Option a legal, valid and binding obligation of the Corporation. The Corporation will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all other acts, deeds and assurances in law as may be reasonably required for the better accomplishing and effecting of the intentions and provisions of this Compensation Option.

(h) Subject
 to the express provisions hereof, the Corporation will carry on and conduct and will cause to be carried on and conducted its business
 in a proper and efficient manner and will cause to be kept proper books of account in accordance with generally accepted accounting
 practice; and, subject to the express provisions hereof, it will do or cause to be done, all things necessary to preserve and keep
 in full force and effect its corporate existence, provided, however, that nothing herein contained will prevent the amalgamation,
 consolidation, merger, sale, winding up or liquidation of the Corporation or any subsidiary of the Corporation or the abandonment
 of any rights and franchises of the Corporation or any subsidiary of the Corporation if, in the opinion of the Board or officers
 of the Corporation, it would be advisable and in the best interests of the Corporation or of such subsidiary of the Corporation to
 do so.

(i) The
 Corporation will issue certificates representing the number of Common Shares issuable following the exercise of this Compensation
 Option and immediately upon issue of the Common Shares, as evidenced by a duly executed Subscription Form and payment therefor in
 accordance with Section 2 hereof and subject to adjustment set forth herein within three (3) Business Days of receipt of the Subscription
 Form and payment by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Miscellaneous</u>**

(a) The
 Corporation will not, by amendment of its articles or through any reorganization, transfer of assets, consolidation, merger, dissolution,
 issue or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this
 Compensation Option, but will at all times in good faith assist in carrying out of all such terms and in the taking of all such action
 as may be necessary or appropriate in order to protect the rights of the Holder under this Compensation Option.

(b) The
 holding of this Compensation Option shall not be construed as conferring upon the holder thereof any right or interest whatsoever
 as a shareholder of the Corporation, including but not limited to the right to vote at, to receive notice of, or to attend meetings
 of shareholders or any other proceedings of the Corporation, nor entitle the holder to any right or interest in respect thereof except
 as provided herein.

(c) [NTD:
 to be added to the Compensation Options issued to Roth and any other FINRA members, but <u>not to</u> Echelon or other Canadian agents]
 Without limiting the foregoing, this Compensation Option and the underlying Common Shares will be deemed compensation by the Financial
 Industry Regulatory Authority ()"**FINRA**") and will therefore, pursuant to FINRA Rule 5110(e), be subject to a lock-up
 for a period of 180 days immediately following the date of effectiveness or commencement of sales in the public offering of the Corporation
 (the "**Public Offering** "), subject to certain limited exceptions to permitted transferees hereunder and in accordance
 with FINRA Rule 5110(e)(2). Specifically, this Compensation Option and the underlying Common Shares may not be sold, transferred,
 assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result
 in the economic disposition of such securities during the 180 day period following the commencement of sales in the Public Offering,
 except in accordance with FINRA Rule 5110(e)(2).

(d) Neither
 this Compensation Option nor any term hereof may be waived, discharged or terminated other than by an instrument in writing signed
 by the Corporation and by the Holder hereof.

(e) This
 Compensation Option will be governed by the laws in force in the Province of Ontario and the federal laws of Canada, as applicable.

(f) Time
 will be of the essence.

*[Signature page follows.]*

 

**IN WITNESS WHEREOF** the Corporation has this certificate to be signed by the signature of its duly authorized officer this _______ day of _________, 2023.

---

| | |
|:---|:---|
| **Bunker Hill Mining Corp.** | **Bunker Hill Mining Corp.** |
| Per: | |
| Name: | David Wiens |
| Title: | Chief Financial Officer |

---

*Bunker Hill - Agents' Compensation Option Certificate*

**SCHEDULE A**

**SUBSCRIPTION FORM**

---

| | |
|:---|:---|
| **TO:** | **BUNKER HILL MINING CORP.** |
|  | 82 Richmond Street East |
|  | Toronto, Ontario |
|  | M5C 1P1 |

---

The undersigned holder of the attached compensation option (the "**Compensation Option**") hereby irrevocably elects to subscribe for _______________ Common Shares of Bunker Hill Mining Corp. (the "**Corporation**") at an aggregate subscription price of $__________, subject to adjustment, evidenced by and on the terms specified in this Compensation Option and encloses herewith a certified cheque or money order payable to the Corporation.

---

| | |
|:---|:---|
| **Name & Address** | **Number of Common Shares** |

---

(Please print full name in which Common Share certificates are to be issued.)

**DATED** this________ day of ___________________, _______.

---

| | |
|:---|:---|
|  | Name of Compensation Option Holder (to be the same as appears on the face of the Compensation Option) |
| Per: | |
|  | Authorized Signing Officer |

---

*Bunker Hill - Agents' Compensation Option Certificate*

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the reference to our firm under the caption "Interests of Named Experts and Counsel" and to the use of our report dated March 30, 2022 relating to the consolidated financial statements of Bunker Hill Mining Corp. in Amendment No. 2 to the Registration Statement (Form S-1) and the related Prospectus of Bunker Hill Mining Corp. dated January 13, 2023.

---

| | |
|:---|:---|
| January 13, 2023 | /s/ MNP LLP |
|  | Chartered Professional Accountants |
| Mississauga, Canada | Licensed Public Accountants |

---

## Exhibit 23.3

**Exhibit 23.3**

CONSENT

This letter is provided in connection with the Registration Statement on Form S-1 (the "Registration Statement") of Bunker Hill Mining Corp.

I, Peter Kondos, hereby consent to the use of my name, in the Registration Statement, in connection with reference to my involvement in the preparation of the following technical report (the "Technical Report"):

Technical Report and Pre-Feasibility Study for Underground Mining, Milling and Concentration of Lead, Silver and Zinc at the Bunker Hill Mine, November 21, 2022.

and to references to the Technical Report, or portions thereof, in the Registration Statement, and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Registration Statement.

---

| |
|:---|
| Yours truly, |
| ![](ex23-3_001.jpg) |
| January 13, 2023 |

---

## Exhibit 23.4

**Exhibit 23.4**

CONSENT

This letter is provided in connection with the Registration Statement on Form S-1 (the "Registration Statement") of Bunker Hill Mining Corp.

I, Robert Todd, P.E., hereby consent to the use of my name, in the Registration Statement, in connection with reference to my involvement in the preparation of the following technical report (the "Technical Report"):

Technical Report and Pre-Feasibility Study for Underground Mining, Milling and Concentration of Lead, Silver and Zinc at the Bunker Hill Mine, November 21, 2022.

and to references to the Technical Report, or portions thereof, in the Registration Statement, and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Registration Statement.

---

| |
|:---|
| Yours truly, |
| */s/ Robert Todd* |
| January 13, 2023 |

---

## Exhibit 23.5

**Exhibit 23.5**

CONSENT

This letter is provided in connection with the Registration Statement on Form S-1 (the "Registration Statement") of Bunker Hill Mining Corp.

I, Scott Wilson, hereby consent to the use of my name, in the Registration Statement, in connection with reference to my involvement in the preparation of the following technical report (the "Technical Report"):

Technical Report and Pre-Feasibility Study for Underground Mining, Milling and Concentration of Lead, Silver and Zinc at the Bunker Hill Mine, November 21, 2022.

and to references to the Technical Report, or portions thereof, in the Registration Statement, and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Registration Statement.

---

| |
|:---|
| Yours truly, |
| <br> ![](ex23-5_001.jpg) |
| January 13, 2023 |

---