# EDGAR Filing Document

**Accession Number:** 0002080073
**File Stem:** 0001062993-25-015651
**Filing Date:** 2025-9
**Character Count:** 1738074
**Document Hash:** 736658ba676a4b17ea9df4e95c97fa4c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-25-015651.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001062993-25-015651

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 23

**FILED AS OF DATE**: 20250916

**DATE AS OF CHANGE**: 20250916

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Versamet Royalties Corp
- **CENTRAL INDEX KEY:** 0002080073
- **STANDARD INDUSTRIAL CLASSIFICATION:** MINERAL ROYALTY TRADERS [6795]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08295
- **FILM NUMBER:** 251316680

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SUITE 3200, 733 SEYMOUR STREET
- **CITY:** VANCOUVER
- **NON US STATE TERRITORY:** BRITISH COLUMBIA
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6B 0S6
- **BUSINESS PHONE:** 778-945-3948

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SUITE 3200, 733 SEYMOUR STREET
- **CITY:** VANCOUVER
- **NON US STATE TERRITORY:** BRITISH COLUMBIA
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6B 0S6

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

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**AMENDMENT NO. 1<br>TO<br>FORM 20-F**

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**☒ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR** 

**☐ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended** __________________

**OR**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

**☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934**

Date of event requiring this shell company report __________________

**For the transition period from _________ to _________________**

Commission file number: <u>**N/A**</u>

<u>**VERSAMET ROYALTIES CORPORATION**</u>

*(Exact name of Registrant as specified in its charter)*

<u>**N/A**</u>

*(Translation of Registrant's name into English)*

<u>**British Columbia, Canada**</u><br>*(Jurisdiction of incorporation or organization)*

**Suite 3200, 733 Seymour Street**<br><u>**Vancouver, British Columbia V6B 0S6 Canada**</u>

*(Address of principal executive offices)* 

------

**Craig Rollins**

**Suite 3200, 733 Seymour Street**<br>**Vancouver, British Columbia V6B 0S6 Canada**

**<u>778-945-3948</u>**<br> *(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)*

Securities registered or to be registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| <u>Title of Each Class:</u> | <u>Trading Symbol(s)</u> | <u>Name of Each Exchange On Which Registered:</u> |
| **Common Shares, no par value** | **To be registered** | **NYSE American, to be applied for** |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act:

<u>**None**</u>

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

<u>**None**</u>

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: <u>**N/A**</u>

Indicate by check mark whether the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes ☒ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. ☐ Yes ☐ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☐ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☐ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company.

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☒ <br> Emerging Growth Company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, 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 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report: ☐

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If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐<br>International Financial Reporting Standards as issued by the International Accounting Standards Board ☒<br>Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☐

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**TABLE OF CONTENTS**

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| | | | |
|:---|:---|:---|:---|
|  |  |  | **Page** |
| [PRESENTATION OF FINANCIAL INFORMATION](#page_7) | [PRESENTATION OF FINANCIAL INFORMATION](#page_7) | [PRESENTATION OF FINANCIAL INFORMATION](#page_7) | [7](#page_7) |
| [TECHNICAL AND THIRD-PARTY INFORMATION](#page_7) | [TECHNICAL AND THIRD-PARTY INFORMATION](#page_7) | [TECHNICAL AND THIRD-PARTY INFORMATION](#page_7) | [7](#page_7) |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#page_8) | [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#page_8) | [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#page_8) | [8](#page_8) |
| [PART I](#page_12) | [](#page_12) |  | [12](#page_12) |
| [ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS.](#page_12) | [ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS.](#page_12) | [ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS.](#page_12) | [12](#page_12) |
|  | [A.](#page_12) | [Directors and Senior Management](#page_12) | [12](#page_12) |
|  | [B.](#page_12) | [Advisers](#page_12) | [12](#page_12) |
|  | [C.](#page_13) | [Auditors](#page_13) | [13](#page_13) |
| [ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE](#page_13) | [ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE](#page_13) | [ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE](#page_13) | [13](#page_13) |
| [ITEM 3: KEY INFORMATION](#page_13) | [ITEM 3: KEY INFORMATION](#page_13) | [ITEM 3: KEY INFORMATION](#page_13) | [13](#page_13) |
|  | [A.](#page_13) | [Selected Financial Data](#page_13) | [13](#page_13) |
|  | [B.](#page_13) | [Capitalization and Indebtedness](#page_13) | [13](#page_13) |
|  | [C.](#page_13) | [Reasons for the Offer and Use of Proceeds](#page_13) | [13](#page_13) |
|  | [D.](#page_14) | [Risk Factors](#page_14) | [14](#page_14) |
| [ITEM 4: INFORMATION ON THE COMPANY](#page_37) | [ITEM 4: INFORMATION ON THE COMPANY](#page_37) | [ITEM 4: INFORMATION ON THE COMPANY](#page_37) | [37](#page_37) |
|  | [A.](#page_37) | [History and Development of the Company](#page_37) | [37](#page_37) |
|  | [B.](#page_43) | [Business Overview](#page_43) | [43](#page_43) |
|  | [C.](#page_53) | [Organizational Structure](#page_53) | [53](#page_53) |
|  | [D.](#page_54) | [Property, Plants and Equipment](#page_54) | [54](#page_54) |
| [ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#page_78) | [ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#page_78) | [ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#page_78) | [78](#page_78) |
|  | [A.](#page_78) | [Operating Results](#page_78) | [78](#page_78) |
|  | [B.](#page_89) | [Liquidity and Capital Resources](#page_89) | [89](#page_89) |
|  | [C.](#page_91) | [Research and Development, Patents and Licenses](#page_91) | [91](#page_91) |
|  | [D.](#page_91) | [Trend Information](#page_91) | [91](#page_91) |
|  | [E.](#page_92) | [Critical Accounting Estimates](#page_92) | [92](#page_92) |
| [ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#page_95) | [ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#page_95) | [ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#page_95) | [95](#page_95) |
|  | [A.](#page_95) | [Directors and Senior Management](#page_95) | [95](#page_95) |
|  | [B.](#page_97) | [Compensation](#page_97) | [97](#page_97) |
|  | [C.](#page_110) | [Board Practices](#page_110) | [110](#page_110) |
|  | [D.](#page_114) | [Employees](#page_114) | [114](#page_114) |
|  | [E.](#page_114) | [Share Ownership](#page_114) | [114](#page_114) |
|  | [F.](#page_115) | [Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation](#page_115) | [115](#page_115) |
| [ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#page_115) | [ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#page_115) | [ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#page_115) | [115](#page_115) |
|  | [A.](#page_115) | [Major Shareholders](#page_115) | [115](#page_115) |
|  | [B.](#page_116) | [Related Party Transactions](#page_116) | [116](#page_116) |
|  | [C.](#page_117) | [Interest of experts and counsel](#page_117) | [117](#page_117) |

---

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- 5 - <br>

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| | | | |
|:---|:---|:---|:---|
| [ITEM 8: FINANCIAL INFORMATION](#page_117) | [ITEM 8: FINANCIAL INFORMATION](#page_117) | [ITEM 8: FINANCIAL INFORMATION](#page_117) | [117](#page_117) |
|  | [A.](#page_117) | [Consolidated Statements and Other Financial Information](#page_117) | [117](#page_117) |
|  | [B.](#page_117) | [Significant Changes](#page_117) | [117](#page_117) |
| [ITEM 9: THE OFFER AND LISTING](#page_118) | [ITEM 9: THE OFFER AND LISTING](#page_118) | [ITEM 9: THE OFFER AND LISTING](#page_118) | [118](#page_118) |
|  | [A.](#page_118) | [Offer and Listing Details](#page_118) | [118](#page_118) |
|  | [B.](#page_118) | [Plan of Distribution](#page_118) | [118](#page_118) |
|  | [C.](#page_118) | [Markets](#page_118) | [118](#page_118) |
|  | [D.](#page_118) | [Selling Shareholders](#page_118) | [118](#page_118) |
|  | [E.](#page_118) | [Dilution](#page_118) | [118](#page_118) |
|  | [F.](#page_118) | [Expenses of the issue](#page_118) | [118](#page_118) |
| [ITEM 10: ADDITIONAL INFORMATION](#page_118) | [ITEM 10: ADDITIONAL INFORMATION](#page_118) | [ITEM 10: ADDITIONAL INFORMATION](#page_118) | [118](#page_118) |
|  | [A.](#page_118) | [Share Capital](#page_118) | [118](#page_118) |
|  | [B.](#page_122) | [Memorandum and Articles of Association](#page_122) | [122](#page_122) |
|  | [C.](#page_125) | [Material Contracts](#page_125) | [125](#page_125) |
|  | [D.](#page_125) | [Exchange Controls](#page_125) | [125](#page_125) |
|  | [E.](#page_126) | [Taxation](#page_126) | [126](#page_126) |
|  | [F.](#page_133) | [Dividends and Paying Agents](#page_133) | [133](#page_133) |
|  | [G.](#page_133) | [Statements by Experts](#page_133) | [133](#page_133) |
|  | [H.](#page_133) | [Documents on Display](#page_133) | [133](#page_133) |
|  | [I.](#page_134) | [Subsidiary Information](#page_134) | [134](#page_134) |
|  | [J.](#page_134) | [Annual Report to Security Holders](#page_134) | [134](#page_134) |
| [ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#page_134) | [ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#page_134) | [ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#page_134) | [134](#page_134) |
|  | [A.](#page_134) | [Commodity Price Risks](#page_134) | [134](#page_134) |
|  | [B.](#page_134) | [Currency Risk](#page_134) | [134](#page_134) |
|  | [C.](#page_134) | [Interest Rate Risk](#page_134) | [134](#page_134) |
|  | [D.](#page_134) | [Equity Price Risk](#page_134) | [134](#page_134) |
| [ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#page_135) | [ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#page_135) | [ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#page_135) | [135](#page_135) |
| [PART II](#page_135) | [](#page_135) |  | [135](#page_135) |
| [ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#page_135) | [ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#page_135) | [ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#page_135) | [135](#page_135) |
| [ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#page_135) | [ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#page_135) | [ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#page_135) | [135](#page_135) |
| [ITEM 15: CONTROLS AND PROCEDURES](#page_135) | [ITEM 15: CONTROLS AND PROCEDURES](#page_135) | [ITEM 15: CONTROLS AND PROCEDURES](#page_135) | [135](#page_135) |
| [ITEM 16: \[RESERVED\]](#page_135) | [ITEM 16: \[RESERVED\]](#page_135) | [ITEM 16: \[RESERVED\]](#page_135) | [135](#page_135) |
|  | [A.](#page_135) | [AUDIT COMMITTEE FINANCIAL EXPERT](#page_135) | [135](#page_135) |
|  | [B.](#page_135) | [CODE OF ETHICS](#page_135) | [135](#page_135) |
|  | [C.](#page_135) | [PRINCIPAL ACCOUNTANT FEES AND SERVICES](#page_135) | [135](#page_135) |
|  | [D.](#page_135) | [EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#page_135) | [135](#page_135) |
|  | [E.](#page_135) | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#page_135) | [135](#page_135) |
|  | [F.](#page_135) | [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#page_135) | [135](#page_135) |
|  | [G.](#page_135) | [CORPORATE GOVERNANCE](#page_135) | [135](#page_135) |
|  | [H.](#page_136) | [MINE SAFETY DISCLOSURE](#page_136) | [136](#page_136) |
|  | [I.](#page_136) | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#page_136) | [136](#page_136) |
|  | [J.](#page_136) | [INSIDER TRADING POLICIES](#page_136) | [136](#page_136) |
|  | [K.](#page_136) | [CYBERSECURITY](#page_136) | [136](#page_136) |

---

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- 6 - <br>

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| | | |
|:---|:---|:---|
| [PART III](#page_136) | [](#page_136) | [136](#page_136) |
| [ITEM 17: FINANCIAL STATEMENTS](#page_136) | [ITEM 17: FINANCIAL STATEMENTS](#page_136) | [136](#page_136) |
| [ITEM 18: FINANCIAL STATEMENTS](#page_136) | [ITEM 18: FINANCIAL STATEMENTS](#page_136) | [136](#page_136) |
| [ITEM 19: EXHIBITS](#page_136) | [ITEM 19: EXHIBITS](#page_136) | [136](#page_136) |
| [GLOSSARY OF CERTAIN TECHNICAL TERMS](#page_137) | [GLOSSARY OF CERTAIN TECHNICAL TERMS](#page_137) | [137](#page_137) |
| [FINANCIAL STATEMENTS](#page_142) | [FINANCIAL STATEMENTS](#page_142) | [142](#page_142) |

---

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Unless otherwise stated or the context requires otherwise, references in this registration statement on Form 20-F (the "**Registration Statement**") to the "Company", "Versamet", "we", "us" or "our" refer to Versamet Royalties Corporation and its subsidiaries on a consolidated basis.

**PRESENTATION OF FINANCIAL INFORMATION**

We prepare our financial statements in accordance with International Financial Reporting Standards ("**IFRS**") as issued by the International Accounting Standards Board ("**IASB**"). Readers should be aware that financial statements prepared in accordance with IFRS may differ in certain respects from financial statements prepared in accordance with U.S. generally accepted accounting principles, which we refer to as U.S. GAAP.

We present our financial statements in United States dollars but certain amounts in this Registration Statement, including but not limited to the prices of securities, are presented in Canadian dollars. Except where otherwise indicated, all dollar amounts are expressed in Canadian dollars, references to "$" or "dollars" are to Canadian dollars and references to "US$" are to United States dollars.

Refer to the audited consolidated financial statements and the accompanying notes included elsewhere in this Registration Statement for disclosure of matters in response to changes in significant accounting policies inclusive of future pronouncements and measurement assumptions, subsequent events, related party transactions, financial instruments and material changes in estimates and accounting methods.

On September 12, 2025 we completed a consolidation, or a reverse stock split, of our issued and outstanding common shares on the basis of one (1) new common share for five (5) old common shares. Unless otherwise stated, the share and per share information in our financial statements and the notes thereto do not reflect such consolidation or reverse stock split. Unless otherwise stated as "Pre-Split", the share and per share information in the rest of this Registration Statement reflect such consolidation or reverse stock split.

**TECHNICAL AND THIRD-PARTY INFORMATION**

The disclosure contained herein respecting the projects underlying our royalty and other interests has been prepared in accordance with the exemption set forth in Items 1303(a)(3) and 1304(a)(2) of subpart 1300 of Regulation S-K ("SK1300"), in the U.S., and where applicable, Section 9.2 of National Instrument 43-101 - *Standards of Disclosure for Mineral Projects* ("**NI 43-101**"), in Canada, and is based on information publicly disclosed by the owners and operators of such properties.

As a holder of royalties, streams or similar interests, we have limited, if any, access to properties underlying the royalties or streams included in our asset portfolio. Additionally, we may from time to time receive operating information from the owners and operators of the properties, which we are not permitted to disclose to the public. We are dependent on the operators of the properties to provide information to us or on publicly available information to prepare disclosure pertaining to properties and operations on the properties on which we hold interests and generally will have limited or no ability to independently verify such information. Although we do not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate.

We are relying on the exemption for royalty companies set forth Section 1302(b)(3)(ii) of SK1300, which provides that a stream, royalty or similar company is not required to file a technical report summary with the Securities and Exchange Commission ("**SEC**") with respect to an underlying property where either (a) obtaining the information would result in an unreasonable burden or expense, or (b) the technical report summary has been requested from the applicable owner, operator or other person possessing the technical report summary, who is not affiliated with the registrant, and who denied the request. The summary and individual mineral property disclosures contained herein are also provided in accordance with Sections 1303(a)(3) and 1304(a)(2) of SK1300, respectively, which provide that a registrant with a stream, royalty or other similar right may omit certain information required by the summary and individual property disclosure requirements if the registrant specifies the information to which it lacks access, explains the reason it lacks the required information and provides all required information that it does possess or which it can acquire without incurring an unreasonable burden or expense.

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Based on relevant factors, we consider our interest in the Greenstone Mine and our royalty interest on the Kiaka Mine to be our only mineral projects on properties material to us for the purposes of SK1300. Information included in this Registration Statement with respect to the Greenstone Mine and Kiaka Mine has been prepared in accordance with the exemption set forth in Sections 1303(a)(3) and 1304(a)(2) of SK1300. We will continue to assess the materiality of our assets as new assets are acquired or move into production.

Our agreements governing our royalty, streaming, or similar interests generally do not require the operators to prepare technical report summaries or permit us the access and information sufficient to prepare our own technical report summaries under SK1300. See "Item 4. Information on the Company - D. Property, Plants and Equipment".

Unless otherwise noted, the disclosure contained herein of a scientific or technical nature relating to the Greenstone Mine has been derived from the technical report titled "*Technical Report on the Greenstone Gold Mine, Geraldton, Ontario*" with an effective date of June 30, 2024 and report date of October 1, 2024 (the "**Greenstone Technical Report**"), which was prepared in accordance with NI 43-101 for Equinox Gold Corp. ("**Equinox**"), and filed under Equinox's profile on the System for Electronic Data Analysis and Retrieval + ("**SEDAR+**") on October 1, 2024, and on additional publicly disclosed information related to the Greenstone Mine. The disclosure contained herein of a scientific or technical nature relating to the Kiaka Mine has been derived from the report titled on "*The Kiaka Feasibility Study Update*" prepared by West African Resources Limited ("**WAF**") with contributions by various third-party consultancies and published July 2, 2024 (the "**Kiaka FS Update**") on WAF's website at www.westafricanresources.com, and on additional publicly disclosed information relating to the Kiaka Mine after the date of the Kiaka FS Update.

The scientific and technical information contained herein relating to our royalty, streaming, and similar interests has been reviewed and approved by Diego Airo, P.Eng., and Vice President, Project Evaluation of Versamet and a qualified person as such term is defined under NI 43-101 and SK1300.

We obtained certain statistical data, market data and other industry data and forecasts used or incorporated by reference into this Registration Statement from publicly available information. While we believe that the statistical data, industry data, forecasts and market research are reliable, we have not independently verified the data, and do not make any representation as to the accuracy of the information.

All websites referred to herein are inactive textual references only, meaning that the information contained on such websites is not incorporated by reference herein and you should not consider information contained on such websites as part of this document unless expressly specified herein.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Certain statements and information contained in this Registration Statement may constitute "forward-looking statements" or "forward-looking information" (collectively, "**forward-looking statements"**).

Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our business, financial position, business strategy, growth plans, the reorganization of our corporate structure and strategies, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or variations of such words and phrases or terminology which states that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding possible future events or circumstances. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this Registration Statement. In addition to the forward-looking information set out in the sections above, forward-looking information in this Registration Statement includes statements relating to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• related business objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• agreements to be entered into with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expectations regarding industry trends, commodity prices, overall market growth rates and our growth rates and growth plans, strategies and opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business plans and strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our portfolio of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global and local changes in economic and market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mine life of our royalties, streams or other interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing and amount of estimated future production from our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• statements with respect to mineral resources and mineral reserves in respect of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash flow projections in respect of the Greenstone Mine and Kiaka Mine (each as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• funding and the commercial terms of the Credit Facility (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimated future cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expectations regarding compensation levels and plans for directors and executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expectations with respect to future revenues and financial performance.

Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this Registration Statement including, without limitation, assumptions about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimates of near, medium and long-term commodity prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the properties in respect of which we hold an interest, the operation continues as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the accuracy of public statements and disclosures made by the owners or operators of such underlying properties, including with respect to mineral resources, mineral reserves, construction timelines, production estimates and other related matters, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that each counterparty will satisfy its obligations in accordance with the contract to which it is a party with Versamet, and that each such contract will be enforceable in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no adverse development relating to any property in respect of which we hold an interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that the Greenstone Mine and Kiaka Mine included in our asset portfolio will continue operations as described in this Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that projects not yet in production or in development included in our asset portfolio will be developed, transitioned into production or development and successfully achieve production and commercial ramp-up, in each case, in accordance with our expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of an outbreak or escalation of infectious diseases or other similar health threats that could result in the suspension, shutdown or delay of the operations in the properties in which we hold an interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no material changes will occur with respect to our existing and anticipated tax treatment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied.

Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause our actual plans, intentions, activities, results, performance or achievements to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limited operating history and uncertainty of future revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in commodity prices will affect the revenues generated from our portfolio and our profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have no or limited control over the operation of the properties in respect of which we hold an interest and the operators' failure to perform or decision to cease or suspend operations will affect our revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to our status as a "foreign private issuer";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Greenstone Mine and the Kiaka Mine are material to us. Other assets and properties may become material to us from time to time and any adverse development related to any such assets will affect the revenue derived from such assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased competition for royalties, streams and other interests could adversely affect our ability to acquire additional interests in mineral properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• some of the properties in respect of which we hold an interest may never achieve commercial production, and we may lose our entire investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to health epidemics, pandemics and other outbreaks of communicable diseases, which could significantly disrupt our operations and may materially and adversely affect our business, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of assets in respect of which we hold an interest may result in a new operator and any failure of such operator to perform could affect our revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may acquire royalties, streams or other interests in respect of properties that are speculative and there can be no guarantee that mineable deposits will be discovered, developed or mined;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have limited access to data and disclosure regarding the operation of properties in respect of which we hold an interest, which affects our ability to assess and predict the performance of such interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we depend on the operators for the calculation of certain payments, and it may not be possible to detect errors in payment calculations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are dependent on the payment or delivery by the owners and operators of the properties in respect of which we have an interest, and any delay in or failure of such payments affects the revenues generated by the asset portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global financial conditions may destabilize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• royalties, streams and other interests may not be honored by operators of a project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not all of our interests are secured, our security interests, if any, may be subordinated, and security interests may be difficult to enforce;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our profitability, results of operations and financial condition are subject to variations in foreign exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operators of mines may not be able to replace depleted Mineral Reserves and Mineral Resources, which would reduce our revenue from royalties or other interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we can provide no assurance that we will be able to obtain adequate financing in the future or that the terms of such financing will be on terms acceptable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may experience difficulty attracting and retaining qualified management and technical personnel to efficiently operate our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain of our directors serve in similar positions with other public companies, which could put them in a conflict position from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in or in the interpretation of tax legislation or accounting rules could affect our profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have a history of losses and we may be unable to achieve profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our operations depend on information systems that may be vulnerable to cyber security threats;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be exposed to counterparty and liquidity risk, and any delay or failure of counterparties to make payments could affect our revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• some of the agreements governing our interests contain terms that reduce the revenue generated from those interests upon the achievement of certain milestones;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may enter into acquisitions or other transactions at any time, which may be material, may involve the issuance of Versamet securities or the incurrence of indebtedness and will be subject to transaction-specific risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we expand our business beyond the acquisition of streams, royalties or other similar interests, we may face new challenges and risks which could affect our profitability, results of operations and financial condition;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be subject to reputational damage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to repay indebtedness and comply with our obligations under the Credit Facility (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to our status as an "emerging growth company";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may seek exemptions from certain requirements of the NYSE American that would allow us to hold shareholder meetings with a reduced quorum and issue additional shares without shareholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are indirectly exposed to many of the same risk factors as the owners and operators of properties in respect of which we hold an interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• production at mines and projects in respect of which we hold royalty, stream or other interests is dependent on operators' employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mineral reserves and mineral resources are estimates based on interpretation and assumptions and actual production may differ from amounts identified in such estimates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• production forecasts may not prove to be accurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exploration and development of mineral resource properties is inherently dangerous and subject to risks beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• defects in title to properties underlying our interests may result in a loss of entitlement by the operator and a loss of our interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future litigation affecting the properties in respect of which we hold an interest could have an adverse effect on us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• defects or disputes relating to our interests could have an adverse effect on us

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operations in respect of which we hold an interest require various property rights, permits and licenses to be held by the operator in order to conduct current and future operations, and delays or a failure to obtain or maintain such property rights, permits and licenses, or a failure to comply with the terms of any of such property rights, permits and licenses could result in interruption or closure of operations or exploration on the properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exposed to risks related to the construction, development, expansion, and/or exploration in relation to the mines, projects and properties in respect of which it holds an interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operations in respect of which we hold an interest are subject to environmental laws and regulations that may increase the costs of doing business and may restrict operations, which could reduce our revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additional costs may be incurred by mineral property operators as a result of international climate change initiatives and may affect the availability of resources and cause business disruptions, which could reduce our revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain operators are subject to risks relating to foreign jurisdictions and developing economies which could negatively impact us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Burkina Faso, which is where the Kiaka Mine is located, is subject to foreign and developing economic risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in government free carry positions could materially affect our interests in certain projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in government regulation could inhibit exploration, construction and development on, or production from, the mineral properties underlying our interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to risks related to certain operations in developing economies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anti-corruption and bribery laws could subject us to liability and require it to incur additional costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may become a party to litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adequate infrastructure may not be available to develop the properties in respect of which we hold an interest, which could inhibit operations at such properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain operators depend on international trade and other conditions in key export markets for their products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in U.S. laws and policies regulating international trade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors may lose their entire investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an active, liquid and orderly trading market for our common shares (each, a "**Common Share**") may not develop, and you may not be able to resell your Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are a passive foreign investment company for U.S. federal income tax purposes in any year, certain adverse tax rules could apply to U.S. Holders of the Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market price of our Common Shares may be volatile, which could result in substantial losses for investors purchasing our Common Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future sales or issuance of debt or equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will incur increased expenses as a result of listing on the NYSE American or such other stock exchange in the United States (the "**Listing**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to pay dividends will be dependent on our financial condition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if securities or industry analysts do not publish research or publish unfavourable research about our business, our Common Share price and trading volume could decline.

Although we have attempted to identify important factors that could cause actual actions, events, conditions, results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, conditions, results, performance or achievements to differ from those anticipated, estimated or intended. See Item 3.D, "*Risk Factors*" for a discussion of certain factors investors should carefully consider.

*We caution that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained herein. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking statements.*

Forward-looking statements contained herein are made as of the date of this Registration Statement and we disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

**PART I**

**ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS.**

**A. Directors and Senior Management**

The following table lists the names of our directors and senior management. The business address for each director and member of senior management is Suite 3200 - 733 Seymour Street, Vancouver, British Columbia, Canada V6B 0S6.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;**Age** | &nbsp;&nbsp;**Position** |
| &nbsp;&nbsp;Gregory Smith | &nbsp;&nbsp;49 | &nbsp;&nbsp;Non-Executive Chair and Director |
| &nbsp;&nbsp;Daniel O'Flaherty | &nbsp;&nbsp;43 | &nbsp;&nbsp;Chief Executive Officer and Director |
| &nbsp;&nbsp;Victoria McMillan | &nbsp;&nbsp;44 | &nbsp;&nbsp;Chief Financial Officer |
| &nbsp;&nbsp;Marcel de Groot | &nbsp;&nbsp;52 | &nbsp;&nbsp;Director |
| &nbsp;&nbsp;Michael McDonald | &nbsp;&nbsp;40 | &nbsp;&nbsp;Director |
| &nbsp;&nbsp;Elizabeth McGregor | &nbsp;&nbsp;48 | &nbsp;&nbsp;Director |
| &nbsp;&nbsp;Mark Backens | &nbsp;&nbsp;63 | &nbsp;&nbsp;Director |
| &nbsp;&nbsp;Craig Rollins | &nbsp;&nbsp;44 | &nbsp;&nbsp;General Counsel and Corporate Secretary |

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**B. Advisers**

Our principal Canadian legal advisers are Blake, Cassels & Graydon LLP, located at 1133 Melville Street, Suite 3500, Vancouver, British Columbia V6E 4E5, Canada. Our principal United States legal advisors are Cozen O'Connor LLP, located at Bentall 5, 550 Burrard Street, Suite 2501, Vancouver, British Columbia V6C 2B5, Canada.

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**C. Auditors**

KMPG LLP, Chartered Professional Accountants, is our current auditor and audited our financial statements for the years ended December 31, 2024, December 31, 2023, and December 31, 2022. The address of KMPG LLP is 777 Dunsmuir Street, 11<sup>th</sup> Floor, Vancouver, British Columbia V7Y 1K3, Canada. KMPG LLP is registered with the Public Company Accounting Oversight Board.

**ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3: KEY INFORMATION**

**A. Selected Financial Data**

Reserved.

**B. Capitalization and Indebtedness**

Our authorized capital consists of an unlimited number of common shares without par value. As of ♦, 2025, we had 93,367,339 Common Shares issued and outstanding.

The table below sets forth our total indebtedness and shows the capitalization of our company as of June 30, 2025, based on our unaudited financial statements for the three and six months ended June 30, 2025. You should read this table in conjunction with our audited financial statements for the year ended December 31, 2024, together with the accompanying notes and the other information appearing under the heading "Operating and Financial Review and Prospects".

<u>**As at June 30, 2025**</u>

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| | |
|:---|:---|
| all amounts in U.S dollars |  |
| **Liabilities** |  |
| **Current** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 151064 |
| **Non-current** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revolving Credit Facility | 53000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liabilities | 2646945 |
| **Shareholders' equity** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share capital | 217334892 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation reserve | 4210345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deficit | (6011946) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1501364) |
| **Total Shareholders' Equity** | **214031927** |
| **Total Liabilities and Shareholder's Equity** | **269829966** |

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As at September [3], 2025, we had $51,000,000 outstanding on the BMO Credit Facility, and the Accounts payable and accrued liabilities and the Deferred income tax liabilities as well as the capitalization of our Company had not changed materially since June 30, 2025.

**C. Reasons for the Offer and Use of Proceeds**

Not applicable.

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**D. Risk Factors**

*The following risks, as well as risks currently unknown to us, could adversely affect our current or future business, properties, operations, results, cash flows, financial condition and prospects and could cause future results, cash flows, financial condition, prospects, events or circumstances to differ materially from those currently expected, including the estimates and projections contained in this Registration Statement. Investors should carefully consider the risks described below and elsewhere in this Registration Statement. The risks described below and elsewhere in this Registration Statement do not purport to be an exhaustive summary of the risks affecting us and additional risks and uncertainties not currently known to us or not currently perceived as being material may have an adverse effect on us.*

**Risks Related to Our Business and Industry**

**Limited Operating History and Uncertainty of Future Revenues**

We have a limited operating history and, accordingly, potential investors will have a limited basis on which to evaluate our ability to achieve our business objectives. Our future success is dependent on management's ability to implement its strategy. Although management is optimistic about our prospects, there is no certainty that anticipated outcomes and sustainable revenue streams will be achieved and there is no certainty that we will successfully make profitable acquisition of royalties, streams or other interests. In particular, our future growth and prospects will depend on our ability to expand our operations and gain additional revenue streams whilst at the same time maintaining effective cost controls. Any failure to expand is likely to have a material adverse effect on our business, financial condition and results of operations.

**Changes in commodity prices will affect our revenues generated from our portfolio and our profitability**

The revenue derived by us from our asset portfolio will be significantly affected by changes in the price of the commodities underlying the royalties, streams and other interests. Commodity prices, including those to which we are exposed, fluctuate on a daily basis and are affected by numerous factors beyond our control, including levels of supply and demand, industrial investment levels, inflation and the level of interest rates, the strength of the US dollar and geopolitical events. Such external economic factors are in turn influenced by changes in international investment patterns, monetary systems and political developments.

Future material price declines may result in a decrease in revenue or, in the case of severe declines that cause a suspension or termination of production by relevant operators, a complete cessation of revenue from royalties, streams or other interests applicable to one or more relevant commodities. Moreover, despite our commodity diversification, the broader commodity market tends to be cyclical, and a general downturn in overall commodity prices could result in a significant decrease in overall revenue. Any such price decline may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**We have no or limited control over the operation of the properties in respect of which we hold a royalty, stream or other interest and the operators' failure to perform or decision to cease or suspend operations will affect our revenues** 

We are not directly involved in the operation of mines. The revenue derived from our asset portfolio is primarily based on production by third-party property owners and operators. The owners and operators generally will have the power to determine the manner in which the properties are exploited, including decisions to expand, continue or reduce, suspend or discontinue production from a property, decisions about the marketing of products extracted from the property and decisions to advance exploration efforts and conduct development of non-producing properties. The interests of third-party owners and operators and those of Versamet on the relevant properties may not always be aligned. As an example, it will usually be in our interest to advance development and production on properties as rapidly as possible in order to maximize near-term cash flow, while third-party owners and operators may take a more cautious approach to development as they are at risk on the cost of development and operations. Likewise, it may be in the interest of property owners to invest in the development of and emphasize production from projects or areas of a project that are not subject to royalty, stream or other interests. Our inability to control the operations for the properties in respect of which we have a royalty, stream or other interest may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities. In addition, the owners or operators may take action contrary to our policies or objectives, be unable or unwilling to fulfill their obligations under their contracts with us, have difficulty obtaining or be unable to obtain the financing necessary to advance projects or experience financial, operational or other difficulties, including insolvency, which could limit the owner or operator's ability to perform its obligations under arrangements with us.

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At any time, any of the operators of the properties in respect of which we hold a royalty, stream or other interest or their successors may decide to suspend or discontinue operations. We may not be entitled to any material compensation if any of the properties in respect of which it holds a royalty, stream or other interest shuts down or discontinues their operations on a temporary or permanent basis.

In addition, an operators' failure to perform or decision to cease or suspend operations may have a negative impact on the value of our royalty and other interests and result in us having to record an impairment in future sets of financial statements with respect to these royalty and other interests. Such impairments may reduce the net income and comprehensive net income for the period in question.

**The Greenstone Mine and the Kiaka Mine are material to Versamet. Other assets and properties may become material to us from time to time and any adverse development related to any such assets will affect the revenue derived from such assets.**

The Greenstone Gold Interest (as defined below) and the NSR on the Kiaka Mine are currently the only material assets for Versamet. As new assets are acquired or move into production, the materiality of each of our assets will be reconsidered. Any adverse development affecting the financial capability of the operators, the development or operation of, production from or recoverability of Mineral Reserves from the Greenstone Mine or the Kiaka Mine or any other material property in the asset portfolio from time to time, such as, but not limited to, unusual and unexpected geologic formations, seismic activity, rock bursts, cave-ins, pit wall failures, equipment failures, fires, tailings dam failures, flooding and other conditions involved in the removal and processing of material, any of which could result in damage to, or destruction of, mines and other producing facilities, damage to life or property, environmental damage, or the inability to hire suitable personnel and engineering contractors or secure supply agreements on commercially suitable terms, may have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities. Any adverse decision made by the owners and operators, including for example, alterations to development or mine plans or production schedules, may impact the timing and amount of revenue that we receive and may have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Increased competition for royalties, streams and other interests could adversely affect our ability to acquire additional or new royalties, streams and other interests in mineral properties**

Many companies are engaged in the search for and the acquisition of investments including royalties, streams and other interests, and there is a limited supply of desirable mineral interests. The mineral exploration and mining businesses are competitive in all phases. Many companies are engaged in the acquisition of mineral interests, including large, established companies with substantial financial resources, operational capabilities and long earnings records. We may be at a competitive disadvantage in acquiring those interests, whether by way of royalty, stream or other form of investment, as competitors may have greater financial resources and technical staffs. There can be no assurance that we will be able to compete successfully against other companies in acquiring new royalties, streams or other interests. In addition, we may be unable to acquire royalties, streams or other interests at acceptable valuations which may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

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**Our major shareholders can exert significant influence over our company and may have interests that differ from other shareholders**

As of the date hereof, B2Gold, Sandstorm, Equinox, and Regal own approximately 77.81% of our outstanding shares. As a result, these shareholders, acting individually or together, are able to significantly influence, and in some cases determine, the outcome of matters requiring shareholder approval, including the appointment and removal of directors, amendments to our charter documents, the approval of mergers, acquisitions or dispositions, issuances of equity, and other corporate transactions. This concentration of ownership may delay, defer or prevent a change of control that other shareholders may view as beneficial and may also discourage potential acquirers from making an offer. In addition, these shareholders' interests may conflict with the interests of our other shareholders, and they may vote their shares in a manner that advances their own interests and not necessarily those of other shareholders.

**Some of the properties in respect of which we hold an interest may never achieve commercial production, and we may lose our entire investment**

Some of the projects or properties in respect of which we hold an interest are in the construction, development, expansion or exploration stage. There can be no assurance that construction, development, expansion or exploration will be completed on a timely basis or at all. If such properties do not reach commercial production, we will not be able to secure repayment of any upfront deposit paid to the counterparty under the terms of the applicable contract, which may have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

In addition, due to the early-stage or development nature of certain of the properties in respect of which we hold an interest, the owners or operators of some of such properties have experienced financial difficulties and, in some cases, required covenant waivers pursuant to their credit and other financing documents. To the extent that any of the owners or operators of properties in respect of which we hold a royalty, stream or other interest default under their credit and other financing documents, this could delay or inhibit operations at the relevant properties, which may have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities. Although we undertake a due diligence process for every investment, mining exploration and development are subject to many risks and it is possible that the value realized by us be less than the original investment.

**We face risks related to health epidemics and pandemics and other outbreaks of communicable diseases, which could significantly disrupt our operations and may materially and adversely affect our business, financial condition and results of operations** 

We face risks related to health epidemics and other outbreaks of communicable diseases, which could significantly disrupt our operations and may materially and adversely affect our business, financial condition and results of operations. There can be no assurance that our personnel will not be impacted by these pandemic diseases and ultimately see our workforce productivity reduced or incur increased medical costs / insurance premiums as a result of these health risks. Such future developments include the duration, severity and scope of the outbreak and the actions taken to contain or treat the outbreak. As such, there are potentially significant economic and social impacts of infectious disease risks, including the inability of our operations to operate as intended due to a shortage of skilled employees, shortages or disruptions in supply chains, inability of employees to access sufficient healthcare, significant social upheavals and government or regulatory actions.

**Sale of assets in respect of which we hold an interest may result in a new operator and any failure of such operator to perform could affect our revenues**

The owners or operators of the projects or mines in respect of which we hold an interest may from time to time announce transactions, including the sale or transfer of the projects or mines or of the operator itself, over which we have little or no control. If such transactions are completed it may result in a new operator controlling the project or mine, who may or may not operate the project or mine in a similar manner to the current operator which may positively or negatively impact us. If any such transaction is announced, there is no certainty that such transaction will be completed, or completed as announced, and any consequences of such non-completion on us may be difficult or impossible to predict.

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**We may acquire royalties, streams or other interests in respect of properties that are speculative and there can be no guarantee that mineable deposits will be discovered, developed or mined**

Exploration for metals and minerals is a speculative venture necessarily involving substantial risk. There is no certainty that the expenditures made by the operator of any given project will result in discoveries of commercial quantities of minerals on lands where we hold royalties, streams or other interests.

If mineable deposits are discovered, substantial expenditures are required to establish Mineral Reserves through drilling, to develop processes to extract the resources and, in the case of new properties, to develop the extraction and processing facilities and infrastructure at any site chosen for extraction. Although substantial benefits may be derived from the discovery of a major deposit, no assurance can be given that resources will be discovered in sufficient quantities to justify commercial operations or that the funding required for development can be obtained on terms acceptable to the operator or at all. Although, in respect of these properties, we intend to hold only royalty, stream or other interests and not be responsible for these expenditures, the operator may not be in a financial position to obtain the necessary funding to advance the project.

**We have limited access to data and disclosure regarding the operation of properties in respect of which we hold interests, which will affect our ability to assess and predict the performance of our royalties, streams or other interests**

As a holder of royalty, stream or other interests, we generally have limited access to data on the operations or to the actual properties themselves. Accordingly, we must rely on the accuracy and timeliness of the public disclosure and other information we receive from the owners and operators of the properties in respect of which we hold royalty, stream or other interests. We use such information, including production estimates, in our analyses, forecasts and assessments relating to our own business. If such information contains material inaccuracies or omissions, our ability to assess and accurately forecast performance or achieve our stated objectives may be materially impaired. In addition, some royalty, stream or other interests may be subject to confidentiality arrangements which govern the disclosure of information with regard to the royalties, streams or other interests and, as such, we may not be in a position to publicly disclose such information with respect to certain royalty, stream or other interests. The limited access to data and disclosure regarding the operations of the properties in respect of which we hold an interest may restrict our ability to enhance our performance which may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**We depend on our operators for the calculation of certain payments, and it may not be possible to detect errors in payment calculations**

Payments and deliveries to Versamet for royalties, streams or other interests are calculated by the operators of the relevant properties based on the reported production. Each operator's calculations are subject to and dependent upon the adequacy and accuracy of its production and accounting functions, and errors may occur from time to time in the calculations made by an operator. Certain contracts for royalties, streams or other interests require the operators to provide us with production and operating information that may, depending on the completeness and accuracy of such information, enable us to detect errors in such calculations. We do not, however, have the contractual right to receive production information for all of our royalties, streams and other interests. As a result, our ability to detect payment errors in respect of royalties, streams or other interests through our monitoring program of our interests and our associated internal controls and procedures is limited, and the possibility exists that we will need to make retroactive revenue adjustments in respect of royalties or streams. Some of our contracts for royalties, streams or other interests provide the right to audit the operational calculations and production data for the associated payments and deliveries in respect of such royalties, streams and other interests; however, such audits may occur many months following our recognition of the revenue in respect of the royalties, streams or other interests and may require us to adjust our revenue in later periods.

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**We are dependent on the payment or delivery by the owners and operators of the properties in respect of which we have a royalty, stream or other interest, and any delay in or failure of such payments will affect the revenues generated by the asset portfolio**

We are dependent to a large extent upon the financial viability of owners and operators of the relevant properties in respect of which we hold royalties, streams or other interests. Payments and deliveries from production generally flow through the operator and there is a risk of delay and additional expense in receiving such payments or deliveries. Payments and deliveries may be delayed by restrictions imposed by lenders, delays in the sale or delivery of products, the ability or willingness of smelters and refiners to process mine products, delays in the connection of wells to a gathering system, blowouts or other accidents, recovery by the operators of expenses incurred in the operation of the properties, the establishment by the operators of reserves for such expenses or the insolvency of the operator. Our rights to payment or delivery for royalties, streams or other interests must, in some cases, be enforced by contract without the protection of the ability to liquidate a property. This inhibits our ability to collect outstanding payments or deliveries in respect of such royalties, streams or other interests upon a default. Additionally, some contracts may provide limited recourse in particular circumstances which may further inhibit our ability to recover or obtain equitable relief in the event of a default under such contracts. In the event of a bankruptcy of an operator or owner, it is possible that an operator may claim that we should be treated as an unsecured creditor and, therefore, have a limited prospect for full recovery of revenue; there is also a possibility that a creditor or the owner or operator may claim that the royalty, stream or other interest contract should be terminated in the insolvency proceeding. Alternatively, in order to preserve our interest in a royalty, stream or other interests in the context of an insolvency or similar proceeding, we may be required to make additional investments in, or provide funding to, owners or operators, which would increase our exposure to the relevant interest and counterparty risk. Failure to receive payments or deliveries from the owners and operators of the relevant properties or termination of our rights may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Global financial conditions may destabilize**

Global financial conditions could suddenly and rapidly destabilize in response to future events, as government authorities may have limited resources to respond to future crises. Future crises may be precipitated by any number of causes, including natural disasters, geopolitical instability, changes to energy prices or sovereign defaults. Any sudden or rapid destabilization of global economic conditions could negatively impact our ability, or the ability of the owners or operators of the properties in respect of which we hold royalties, streams or other interests obtain equity or debt financing or make other suitable arrangements to finance their projects. In the event of increased levels of volatility or a rapid destabilization of global economic conditions, our profitability, results of operations and financial condition and the trading price of our securities could be adversely affected.

**Royalties, streams and other interests may not be honored by operators of a project**

Royalties, streams and other interests in respect of natural resource properties are largely contractual in nature. Parties to contracts do not always honor contractual terms and contracts themselves may be subject to interpretation or technical defects. To the extent grantors of royalties, streams and other interests do not abide by their contractual obligations, we would be forced to take legal action to enforce our contractual rights. Such legal action may be time consuming and costly and there is no guarantee of success. Any pending proceedings or actions or any decisions determined adversely to us, may have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

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**Not all of our royalties, streams and other interests are secured, our security interests, if any, may be subordinated, and security interests may be difficult to enforce** 

Although certain of our royalties, streams and other interests are secured, certain are unsecured. In a default, liquidation or realization situation, any of our unsecured interests will be satisfied pro rata with all other unsecured claims after all secured claims, property claims and prior ranking claims are satisfied in full. Absent a security interest, our likely potential recourse against a defaulting property owner or mining operator is for breach of the applicable contract which will result in an unsecured damages claim for which, recovery is remote and time-consuming. In the event that a mining operator or property owner has insufficient funds to pay its liabilities and obligations as they become due, it is possible that other liabilities and obligations will be satisfied prior to the liabilities and obligations owed to us.

Even valid security interests which are held by us may be (i) subordinated, (ii) unenforceable, (iii) difficult to enforce or (iv) subject to attack by other creditors or stakeholders. If our security is subordinated, we may be prohibited from enforcing our security, even if a default has occurred, until steps are undertaken by senior creditors or until otherwise permitted under the applicable subordination agreement. Also, any recovery or distribution in respect of our subordinated obligations may be postponed until senior creditors are indefeasibly paid in full. Even if we are permitted to enforce our security interests, if any, the security may be difficult to enforce because of the nature of the security and issues out of our control, including court orders, restricted access and jurisdiction. We may be unwilling to exercise any rights that we may have if we could become exposed to environmental or other liabilities, such as, successor employer or as a mortgagee-in-possession, by virtue of exercising such rights. Other creditors and stakeholders of the mining operator or property owner of the mining operator or property owner may attack our security interests, royalty and streaming rights and other rights under applicable insolvency, preference or reviewable transaction legislation. If such creditors are successful, the remedies may include unwinding or voiding our interests. If we are unable to enforce our security interests, there may be a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

In addition to the issues relating to enforcing our security, there is no assurance that we will be able to effectively enforce any guarantees, indemnities or other interests, even if they exist. Should an insolvency proceeding or other similar event related to a mining operator or property owner be commenced (whether by it or its creditors), there will likely be a court ordered stay of proceedings that may prevent us from enforcing our security, royalty and streaming rights and other rights. In an insolvency proceeding, a property owner or mining operator may not perform its obligations under a royalty, stream or other agreements with us, it or its creditors may seek to unilaterally terminate, disclaim or resiliate agreements with us, they may seek to sell or vest the property to another party free and clear of our royalty, stream or other obligations or seek other relief with respect to our interests. Any sale or transfer of property in such insolvency proceeding may also be affected by court order notwithstanding any transfer restrictions, options, rights of first refusal or other rights contained in the agreements with us or others. Further, in insolvency proceedings, any security or other interest held by us will likely be primed and further subordinated by court ordered charges or other court ordered relief, including for interim financing.

Also, insolvency proceedings in the mining industry are generally complex and lengthy, the outcome of which may be uncertain and may result in a material adverse effect on our profitability, results of operations and financial condition. In such proceeding, property owners may sell or convey the property free and clear of any obligations owed to us.

In addition, because some of the properties in respect of which we hold royalties, streams and other interests are owned and operated by foreign entities in foreign jurisdictions, our security interests, royalty and streaming rights and other rights may be subject to political interference, as well as, real and personal property, enforcement and insolvency laws of foreign jurisdictions that differ significantly from those in Canada, and may prevent us from enforcing our security, royalty and streaming rights and other rights as anticipated. Further, there can be no assurance that any judgments or orders obtained in Canadian courts will be enforceable in those jurisdictions. If we are unable to enforce our security interests, royalty and streaming rights and other rights, there may be a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

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**Our profitability, results of operations and financial condition are subject to variations in foreign exchange rates**

Certain of our activities and offices are located in Canada and the costs associated with these activities are largely denominated in Canadian dollars. However, certain of our royalties, streams and other interests are denominated in US dollars and, as a result, are subject to foreign currency fluctuations and inflationary pressures, which may have a material adverse effect on our profitability, results of operations and financial condition. There can be no assurance that the steps taken by management to address variations in foreign exchange rates will eliminate all adverse effects and we may suffer losses due to adverse foreign currency rate fluctuations.

**Operators of mines may not be able to replace depleted mineral reserves and mineral resources, which would reduce our revenue from royalties, streams or other interests** 

The revenue generated by Versamet is principally based on the exploitation of Mineral Reserves on assets underlying our royalties, streams and other interests. With respect to these assets, their corresponding mineral resources and mineral reserves are continually being depleted through extraction and the long-term viability of our asset portfolio depends on the replacement of mineral reserves through new producing assets and increases in mineral reserves on existing producing assets. As mines in respect of which we have royalties, streams and other interests mature, it can expect overall declines in production over the years unless operators are able to replace mineral reserves that are mined through mine expansion or successful new exploration. Exploration for minerals is a speculative venture necessarily involving substantial risk. There is no certainty that the expenditures made by the operator of any given project will result in discoveries of commercial quantities of minerals on properties underlying the asset portfolio or that discoveries will be located on properties covered by the relevant royalty, stream or other interest. Even in those cases where a significant mineral deposit is identified and covered by the royalty, stream or other interest, there is no guarantee that the deposit can be economically extracted. Substantial expenditures are required to establish Mineral Reserves through drilling, to develop processes to extract the resources and, in the case of new properties, to develop the extraction and processing facilities and infrastructure at any site chosen for extraction. Although substantial benefits may be derived from the discovery of a major deposit covered by the royalty, stream or other interest, no assurance can be given that new Mineral Reserves will be identified to replace or increase the amount of mineral reserves currently in the asset portfolio. This includes mineral resources, as the resources that have been discovered have not been subjected to sufficient analysis to justify commercial operations or the allocation of funds required for development. The inability by operators to add additional mineral reserves or to replace existing mineral reserves through either the development of existing mineral resources or the acquisition of new mineral producing assets, in each case covered by a royalty, stream or other interests, may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**We can provide no assurance that we will be able to obtain adequate financing in the future or that the terms of such financing will be on terms acceptable to us**

There can be no assurance that we will be able to obtain adequate financing in the future or that the terms of such financing will be on terms acceptable to us. Failure to obtain such additional financing could impede our funding obligations, or result in delay or postponement of further business activities which may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

If additional funds are raised through further issuances of equity or debt securities, existing shareholders (including prospective investors) could suffer significant dilution, and any new equity securities issued could have rights, preferences and privileges superior to those of holders of the Common Shares. In addition, from time to time, the we may enter into transactions to acquire assets or the shares of other corporations. These transactions may be financed wholly or partially with debt and/or equity issuances, which may temporarily increase our debt levels above industry standards and/or further dilute shareholders significantly. Any debt financing secured in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions.

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**We may experience difficulty attracting and retaining qualified management and technical personnel to efficiently operate our business**

We are dependent upon the continued availability and commitment of our key management personnel, whose contributions to immediate and future operations of Versamet are of significant importance. The loss of any such key management personnel could negatively affect business operations. From time to time, we may also need to identify and retain additional skilled management and specialized technical personnel to efficiently operate our business. In addition, we frequently retain third party specialized technical personnel to assess and execute on opportunities. These individuals may have conflicts of interest or scheduling conflicts, which may delay or inhibit our ability to employ such individuals' expertise. The number of persons skilled in the acquisition, exploration and development of royalties, streams and other interests in natural resource properties is limited and competition for such persons is intense. Recruiting and retaining qualified personnel is critical to our success and there can be no assurance that we will be able to recruit and retain such personnel. If we are not successful in recruiting and retaining qualified personnel, our ability to execute our business model and growth strategy could be affected, which could have a material adverse impact on our profitability, results of operations and financial condition and the trading price of our securities. We do not intend to maintain "key man" insurance for any members of our management.

**Certain of our directors serve in similar positions with other public companies, which could put them in a conflict position from time to time**

Certain of our directors also serve as directors or officers of, or have shareholdings in, other companies involved in natural resource exploration, development and production and, to the extent that such other companies may engage in transactions or participate in the same ventures in which we participate, or in transactions or ventures in which we may seek to participate, our directors and officers may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation. Such conflicts of the directors and officers may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Changes in or in the interpretation of tax legislation or accounting rules could affect our profitability**

Changes to, or differing interpretation of, taxation laws or regulations in any of Canada, the United States, Burkina Faso, Mexico, Brazil, Peru, Sweden and Australia or any of the countries in which our assets or relevant contracting parties or underlying properties are located could result in some or all of our profits being subject to additional taxation. No assurance can be given that new taxation rules or accounting policies will not be enacted or that existing rules will not be applied in a manner which could result in our profits being subject to additional taxation or which could otherwise have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities. In addition, the introduction of new tax rules or accounting policies, or changes to, or differing interpretations of, or application of, existing tax rules or accounting policies could make royalties, streams and other interests held by us less attractive to counterparties. Such changes could adversely affect our ability to acquire new assets or make future investments.

**We have a history of losses and we may be unable to achieve profitability** 

We incurred a total comprehensive loss of US$2,253,619 for the year ended December 31, 2024 and total comprehensive loss of US$3,053,841 for the year ended December 31, 2023. At December 31, 2024, we had a deficit of US$7,966,644.

**In preparing our financial statements, we may identify material weaknesses in our internal control over financial reporting and, if we fail to remediate such material weaknesses (and any other ones) or implement and maintain effective internal controls over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud.**

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In connection with the preparation of our financial statements, material weaknesses may be identified in our internal control over financial reporting (including certain previous unremedied material weaknesses). A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. The material weaknesses identified may relate to, among other things: (i) the consolidation process of acquisitions; and (ii) the design and operation of our accounting and financial reporting closing functions, in which required policies and procedures may not be adequately designed or were not operating effectively at period end, resulting in adjustments to our audited consolidated financial statements during the course of the audit. Each material weakness may result in a misstatement of one or more account balances or disclosures that would result in a material misstatement of our audited financial statements that would not be prevented or detected, and accordingly, we determined that these control deficiencies constitute material weaknesses.

**Our operations depend on information systems that may be vulnerable to cyber security threats**

Our operations depend, in part, on our information technology ("**IT**") systems, networks, equipment and software and the security of these systems. We depend on various IT systems to process and record financial and technical data, administer our contracts with our counterparties and communicate with employees and third-parties. These IT systems, and those of our third-party service providers and vendors and the counterparties under our contracts for royalties, streams and other interests may be vulnerable to an increasing number of continually evolving cyber security risks. Unauthorized third parties may be able to penetrate network security and misappropriate or compromise confidential information, create system disruptions or cause shutdowns. Any such breach or compromise may go undetected for an extended period of time.

A significant breach of our IT systems or data security or misuse of data, particularly if such breach or misuse goes undetected for an extended period of time, could result in significant costs, loss of revenue, fines or lawsuits and damage to reputation. The costs to eliminate or alleviate cyber or other security problems, including bugs, viruses, worms, malware and other security vulnerabilities, could be significant, and our efforts to address these problems may not be successful. The significance of any cyber-security breach is difficult to quantify, but may in certain circumstances be material and could have a material adverse effect on our results of operations and financial condition and the trading price of our securities.

**We may be exposed to counterparty and liquidity risk, and any delay or failure of counterparties to make payments could affect our revenues** 

We may be exposed to various counterparty risks including, but not limited to (i) through financial institutions that hold our cash and metals credit inventory, (ii) through our stream, royalty and other similar interest counterparties, (iii) through other companies that have payables due to us, (iv) through our insurance providers and (v) through our lenders. We may also be exposed to liquidity risks in meeting our operating expenditure requirements in instances where cash positions are unable to be maintained or appropriate financing is unavailable. These factors may impact our ability to obtain loans, other credit facilities or equity financing in the future or to obtain them on terms favorable to us.

**Some of the agreements governing our interests contain terms that reduce the revenue generated from those interests upon the achievement of certain milestones** 

Revenue from some of our interests decreases after certain milestones are achieved. As a result, past production and revenue related to these interests may not be indicative of future results.

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**We may enter into acquisitions or other royalty or streaming transactions at any time, which may be material, may involve the issuance of Versamet securities or the incurrence of indebtedness and will be subject to transaction-specific risks** 

We continuously review opportunities to acquire existing streams, royalties and other similar interests, in order to create new streaming, royalty or other arrangements through the financing of mining projects, financing of new acquisitions or to acquire companies that hold streams, royalties or other similar interests in respect of mineral properties. At any given time, we may have various types of transactions and acquisition opportunities in various stages of active review, including submission of indications of interest and participation in discussions or negotiations in respect of such transactions. This process also involves the engagement of consultants and advisors to assist in analyzing particular opportunities. Any such acquisition or transaction could be material to us and may involve the issuance of securities by us or the incurrence of indebtedness to fund any such acquisition. In addition, any such transaction may have other transaction specific risks associated with it, including risks related to the completion of the transaction, the integration of any acquired business with Versamet's existing business, the project operators or the jurisdictions in which assets may be acquired or underlying properties located. In addition, we may consider opportunities to restructure royalties or stream arrangements where we believe such a restructuring may provide a long-term benefit to us, even if such restructuring may reduce near-term revenues or result in us incurring transaction related costs. We may also be unable to achieve any such anticipated long-term benefits of such restructurings. We may be unsuccessful in completing acquisitions and other additional transactions on terms favorable to us, or at all, or in realizing the anticipated growth opportunities and synergies from integrating any acquired business, and our failure to do so may have a material adverse effect on our future results of operations and growth prospects.

**If we expand our business beyond the acquisition of streams, royalties or other similar interests, we may face new challenges and risks which could affect our profitability, results of operations and financial condition** 

Our operations and expertise have been focused on the acquisition and management of streams, royalties and other similar interests. While it is not our current intention, we may in the future pursue acquisitions outside this area. The expansion of our activities into new areas would present challenges and risks that we have not faced in the past. The failure to manage these challenges and risks successfully may result in a material adverse effect on our profitability, results of operations and financial condition.

**We may be subject to reputational damage** 

Reputational damage can be the result of the actual or perceived occurrence of any number of events, and could include negative publicity, whether true or not. While we do not ultimately have direct control over how we are perceived by others, reputational loss could have a material adverse impact on the trading price of our securities.

**We may be unable to repay indebtedness and comply with our obligations under the Credit Facility** 

We may from time to time have amounts outstanding under our Credit Facility, which may be significant. The total availability under our Credit Facility is US$60 million, of which US$53 million is currently drawn as at the date of this Registration Statement; the undrawn balance may be used to fund the acquisition of royalties and the funding of precious metals streams. These acquisitions may result in significant drawings, and we would be required to use a portion of our cash flow to service principal and interest on the debt, which would limit the cash flow available for other business opportunities. Our ability to make scheduled payments of the principal of, to pay interest on, or to refinance indebtedness depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. We may not continue to generate cash flow in the future sufficient to service debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as reducing or eliminating dividends, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.

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The terms of our Credit Facility require us to satisfy various affirmative and negative covenants and to meet certain financial ratios and tests. These covenants limit, among other things, our ability to incur further indebtedness if doing so would cause us to fail to meet certain financial covenants, create certain liens on assets or engage in certain types of transactions. These covenants also limit our ability to amend our stream, royalty and other similar interest contracts without the consent of the lenders. We can provide no assurances that in the future, we will not be limited in our ability to respond to changes in our business or competitive activities or be restricted in our ability to engage in mergers, acquisitions or dispositions of assets. Furthermore, a failure to comply with these covenants, including a failure to meet the financial tests or ratios, would likely result in an event of default under the Credit Facility and would allow the lenders to accelerate the debt, which could materially and adversely affect our business, results of operations and financial condition.

**Risks Related to Mining Operations**

**We are indirectly exposed to many of the same risk factors as the owners and operators of properties in respect of which it holds a royalty, stream or other interests**

To the extent that they relate to the production of minerals from, or the continued operation of, the properties in respect of which we hold a royalty, stream or other interests, we will be subject to the risk factors applicable to the owners and operators of such mines or projects.

**Production at mines and projects in respect of which we hold royalty, stream or other interests is dependent on operators' employees**

Production from the properties in respect of which we hold an interest depends on the efforts of operators' employees. There is competition for geologists and persons with mining expertise. The ability of the owners and operators of such properties to hire and retain geologists and persons with mining expertise is key to those operations. Further, relations with employees may be affected by changes in the scheme of labor relations that may be introduced by the relevant governmental authorities in the jurisdictions in which those operations are conducted. Changes in such legislation or otherwise in the relationships of the owners and operators of such properties with their employees may result in strikes, lockouts or other work stoppages, any of which could have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities. If these factors cause the owners and operators of such properties to decide to cease production at one or more of the properties, such decision could have a material adverse effect on our business and financial condition.

**Mineral reserves and mineral resources are estimates based on interpretation and assumptions and actual production may differ from amounts identified in such estimates**

The mineral reserves and mineral resources on properties underlying our royalties, stream or other interests are estimates only, and no assurance can be given that the estimated mineral reserves and mineral resources are accurate or that the indicated level of minerals will be produced. Mineral reserve and MREs for our royalty, stream or other interests are prepared by the operators of the underlying properties. We do not participate in the preparation or verification of such estimates (or the reports in which they are presented) and we have not independently assessed or verified the accuracy of such estimates. Such estimates are, in large part, based on interpretations of geological data obtained from drill holes and other sampling techniques. Actual mineralization or formations may be different from those predicted. Further, it may take many years from the initial phase of drilling before production is possible and during that time the economic feasibility of exploiting a discovery may change.

Market price fluctuations of the applicable commodity, as well as increased production and capital costs or reduced recovery rates, may render the proven and probable mineral reserves on properties underlying our royalties, streams or other interests unprofitable to develop at a particular site or sites for periods of time or may render mineral reserves containing relatively lower grade mineralization uneconomic. Moreover, short-term operating factors relating to the mineral reserves, such as the need for the orderly development of ore bodies or the processing of new or different ore grades, may cause mineral reserves to be reduced or not extracted. Estimated mineral reserves may have to be recalculated based on actual production experience. The economic viability of a mineral deposit may also be impacted by other attributes of a particular deposit, such as size, grade and proximity to infrastructure, governmental regulations and policy relating to price, taxes, royalties, land tenure, land use permitting, the import and export of minerals and environmental protection and by political and economic stability. While these risks exist for all of our assets, they are heightened in the case of interests in properties which have not yet commenced production.

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MREs in particular must be considered with caution. MREs for properties that have not commenced production are based, in many instances, on limited and widely spaced drill hole or other limited information, which is not necessarily indicative of the conditions between and around drill holes. Such MREs may require revision as more drilling or other exploration information becomes available or as actual production experience is gained. Further, mineral resources may not have demonstrated economic viability and may never be extracted by the operator of a property. It should not be assumed that any part or all of the mineral resources on properties underlying our royalties, streams or other interests constitute or will be converted into mineral reserves.

Any of the foregoing factors may require operators to reduce their mineral reserves and mineral resources, which may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Production forecasts may not prove to be accurate**

We prepare estimates and forecasts of future attributable production from the properties in respect of which we hold royalties, streams or other interests and rely on public disclosure and other information we receive from the owners, operators and independent experts of such properties to prepare such estimates. Such information is necessarily imprecise because it depends upon the judgment of the individuals who operate such properties as well as those who review and assess the geological and engineering information. These production estimates and forecasts are based on existing mine plans and other assumptions with respect to such properties which change from time to time, and over which we have no control, including the availability, accessibility, sufficiency and quality of ore, the costs of production, the operators' ability to determine production levels, the sufficiency of infrastructure, the performance of personnel and equipment, the availability of materials and equipment including reagents and fuel, the ability to maintain and obtain mining interests and permits and compliance with existing and future laws and regulations. Any such information is forward-looking and no assurance can be given that such production estimates and forecasts will be achieved. Actual attributable production may vary from our estimates for a variety of reasons, including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; actual ore mined being less amenable than expected to mining or treatment; lower than expected mill feed grades; operating factors; delays in the commencement of production and ramp up at new mines; revisions to mine plans; unusual or unexpected orebody formations; risks and hazards associated with the properties in respect of which Versamet holds royalties, streams or other interests, including but not limited to cave-ins, rock falls, rock bursts, pit wall failures, seismic activity, weather related complications, fires or flooding or as a result of other operational problems such as production drilling or material removal challenges, power failures or a failure of a key production component such as a hoist, a filter press or a grinding mill; and unexpected labor shortages, strikes, local community opposition or blockades. Occurrences of this nature and other accidents, adverse conditions or operational problems in future years may result in our failure to realize the benefits of our production forecasts anticipated from time to time. If our production forecasts prove to be incorrect, it may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**The exploration and development of mineral resource properties is inherently dangerous and subject to risks beyond our control** 

Companies engaged in mining activities are subject to all of the hazards and risks inherent in exploring for and developing natural resource projects. These risks and uncertainties include, but are not limited to, environmental hazards, industrial accidents, labor disputes, increases in the cost of labor, social unrest, changes in the regulatory environment, permitting and title risks, impact of non-compliance with laws and regulations, fires, explosions, blowouts, cratering, encountering unusual or unexpected geological formations or other geological or grade problems, unanticipated metallurgical characteristics or less than expected mineral recovery, encountering unanticipated ground or water conditions, cave-ins, pit wall failures, flooding, rock bursts, tailings dam failures, periodic interruptions due to inclement or hazardous weather conditions, earthquakes, seismic activity, other natural disasters or unfavorable operating conditions and losses. Should any of these risks or hazards affect a company's exploration or development activities, it may (i) result in an environmental release or environmental pollution and liability; (ii) cause the cost of development or production to increase to a point where it would no longer be economic to produce the metal from the company's mineral resources or expected mineral reserves, (iii) result in a write down or write-off of the carrying value of one or more mineral projects, (iv) cause delays or stoppage of mining or processing, (v) result in the destruction of properties, processing facilities or third-party facilities necessary to the company's operations, (vi) cause personal injury or death and related legal liability, (vii) result in regulatory fines and penalties or the revocation or suspension of licenses; (viii) result in the loss of insurance coverage or (ix) result in the loss of social license to operate. The occurrence of any of above-mentioned risks or hazards could result in an interruption or suspension of operation of the properties in respect of which we hold a royalty, stream or other interest and have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

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**Defects in title to properties underlying our royalty, stream or other interests may result in a loss of entitlement by the operator and a loss of our interest**

A defect in the chain of title to any of the properties underlying one of our royalties or, streams or necessary for the anticipated development or operation of a particular project to which a royalty, stream or other interest relates may arise to defeat or impair the claim of the operator to a property which could in turn result in a loss of our interest in respect of that property. In addition, claims by third parties or aboriginal groups in Canada, the United States, Brazil, Mexico, Ethiopia, Côte d'Ivoire, South Africa, Burkina Faso, Columbia, Peru, Nicaragua, Sweden, Australia and Mongolia and elsewhere may impact on the operator's ability to conduct activities on a property to the detriment of our royalties, streams or other interests. To the extent an owner or operator does not have title to the property, it may be required to cease operations or transfer operational control to another party. Many royalties, streams or other interests are contractual, rather than an interest in land, with the risk that an assignment or bankruptcy or insolvency proceedings by an owner will result in the loss of any effective royalty, stream or other interests in a particular property. Further, even in those jurisdictions where there is a right to record or register royalties, streams or other interests held by us in land registries or mining recorders offices, such registrations may not necessarily provide any protection to us. As a result, known title defects, as well as unforeseen and unknown title defects may impact operations at a project in respect of which we have a royalty, stream or other interest and may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Future litigation affecting the properties in respect of which we hold royalty, stream or other interests could have an adverse effect on Versamet**

Potential litigation may arise on a property on which we hold a royalty, stream or other interest (for example, litigation between joint venture partners or between operators and original property owners or neighboring property owners). As a holder of such interests, we will not generally have any influence on the litigation and will not generally have access to data. Any such litigation that results in the cessation or reduction of production from a property (whether temporary or permanent) or the expropriation or loss of rights to a property could have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

Moreover, the courts in some of the jurisdictions in which we have a royalty, stream or other interests may offer less certainty as to the judicial outcome of legal proceedings or a more protracted judicial process than is the case in more established economies. Accordingly, there can be no assurance that contracts, joint ventures, licenses, license applications or other legal arrangements will not be adversely affected by the actions of government authorities and the effectiveness of and enforcement of such arrangements in these jurisdictions. Moreover, the commitment of local businesses, government officials and agencies and the judicial system in these jurisdictions to abide by legal requirements and negotiated agreements may be more uncertain and may be susceptible to revision or cancellation, and legal redress may be uncertain or delayed. These uncertainties and delays could have a material adverse effect on our financial condition and results of operations.

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**Defects or disputes relating to our royalties, streams or other interests could have an adverse effect on Versamet**

Defects in or disputes relating to the royalty, stream or other interests we hold or acquire may prevent us from realizing the anticipated benefits from these interests. Material changes could also occur that may adversely affect management's estimate of the carrying value of our royalty, stream or other interests and could result in impairment charges. While we seek to confirm the existence, validity, enforceability, terms and geographic extent of the royalty, stream or other interests we acquire, there can be no assurance that disputes or other problems concerning these and other matters or other problems will not arise. Confirming these matters is complex and is subject to the application of the laws of each jurisdiction to the particular circumstances of each parcel of mineral property and to the documents reflecting the royalty, stream or other interest. The discovery of any defects in, or any disputes in respect of, our royalty, stream or other interests, could have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**The operations in respect of which we hold a royalty, stream or other interests require various property rights, permits and licenses to be held by the operator in order to conduct current and future operations, and delays or a failure to obtain or maintain such property rights, permits and licenses, or a failure to comply with the terms of any of such property rights, permits and licenses could result in interruption or closure of operations or exploration on the properties**

Exploration, development and operation of mining properties are subject to laws and regulations governing health and worker safety, employment standards, environmental matters, mine development, project development, mineral production, permitting and maintenance of title, exports, taxes, labor standards, reclamation obligations, heritage, historic and archaeological matters and other matters. The owners and operators of the properties in respect of which we hold a royalty, stream or other interest require licenses and permits from various governmental authorities in order to conduct their operations. Future changes in such laws and regulations or in such licenses and permits could have a material adverse impact on the revenue that we derive from our royalties, streams and other interests. Such licenses and permits are subject to change in various circumstances and are required to be kept in good standing through a variety of means, including cash payments and satisfaction of conditions of issue. Such licenses and permits are subject to expiration, relinquishment and/or termination without notice to, control of or recourse by us. There can be no guarantee that the owners or operators of those properties in respect of which we hold a royalty, stream or other interest, will be able to obtain or maintain all necessary licenses and permits in good standing that may be required to explore, develop and operate the properties, commence construction or operation of mining facilities, or maintain operations that economically justify the cost. Any failure to comply with applicable laws and regulations, permits and licenses, or to maintain permits and licenses in good standing, even if inadvertent, could result in interruption or closure of exploration, development or mining operations or in fines, penalties or other liabilities accruing to the owner or operator of the project. Any such occurrence could substantially decrease production or cause the termination of operations on the property and have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**We are exposed to risks related to the construction, development, expansion, and/or exploration in relation to the mines, projects and properties in respect of which it holds a royalty, stream or other interest**

Many of the projects or properties in respect of which we hold an interest in are in the construction, development, expansion, and/or exploration stage and such projects are subject to numerous risks, including, but not limited to delays in obtaining equipment, materials and services essential to the construction and development of such projects in a timely manner, currency exchange rates, labor shortages, cost escalations and fluctuations in metal prices. There can be no assurance that the owners or operators of such projects will have the financial, technical and operational resources to complete construction, development and/or expansion of such projects in accordance with current expectations or at all.

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**The operations in respect of which we hold an interest are subject to environmental laws and regulations that may increase the costs of doing business and may restrict operations, which could reduce our revenues**

All phases of the mining business present environmental risks and hazards and are subject to environmental regulation pursuant to a variety of government laws and regulations. Compliance with such laws and regulations can require significant expenditures and a breach may result in the imposition of fines and penalties, which may be material. In addition, such laws and regulations can constrain or prohibit the exploration and development of new projects or the development or expansion of existing projects. Any breach of environmental legislation by owners or operators of properties underlying our asset portfolio could have a material impact on the viability of the relevant property and impair the revenue derived from the owned property or applicable royalty, stream or other interest, which could have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Additional costs may be incurred by mineral property operators as a result of international climate change initiatives and may affect the availability of resources and cause business disruptions, which could reduce our revenues**

We acknowledge climate change as an international and community concern. In addition to voluntary actions, governments are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Where legislation already exists, regulation relating to emission levels and energy efficiency is becoming more stringent. Some of the costs associated with reducing emissions can be offset by increased energy efficiency and technological innovation. However, if the current regulatory trend continues, we expect this may result in increased costs at some of the properties underlying our royalties, streams or other interests, which could have a material impact on the viability of the properties and impair the revenue derived from the applicable royalty, stream or other interest, which could have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Certain operators are subject to risks relating to foreign jurisdictions and developing economies, which could negatively impact Versamet**

Some of our royalty, stream or other interests relate to properties outside of the United States and Canada, including Brazil, Mexico, Ethiopia, Côte d'Ivoire, South Africa, Burkina Faso, Columbia, Peru, Nicaragua, Sweden, Australia and Mongolia. In addition, future investments may expose us to new jurisdictions. The ownership, development and operation of properties, mines and projects in foreign jurisdictions by their owners are subject to the risks normally associated with conducting business in foreign jurisdictions. These risks include, depending on the country, nationalization and expropriation, social unrest and political instability, less developed legal and regulatory systems, uncertainties in perfecting mineral titles, trade barriers, exchange controls and material changes in taxation. These risks may, among other things, limit or disrupt the ownership, development or operation of properties, mines or projects in respect of which we hold royalty, stream or other interests, restrict the movement of funds, or result in the deprivation of contractual rights or the taking of property by nationalization or expropriation without fair compensation. If any of these events were to occur, this may result in a write down or write-off of the carrying value of one or more of our assets, which could have a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities. In addition, in the event of a dispute arising from foreign operations, we may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of courts in Canada.

We apply various methods, where practicable, to identify, assess and, where possible, mitigate these risks prior to entering into contracts for royalty, stream or other interests. Such methods generally include: conducting due diligence on the political, social, legal and regulatory systems and on the ownership, title and regulatory compliance of the properties subject to the royalty, stream or other interest, engaging experienced local counsel and other advisors in the applicable jurisdiction; negotiating where possible so that the applicable contract contains appropriate protections, representations, warranties and, in each case as we deem necessary or appropriate in the circumstances, all applied on a risk-adjusted basis. There can be no assurance, however, that we will be able to identify or mitigate all risks relating to holding royalties, streams or other interests in respect of properties, mines and projects located in foreign jurisdictions, and the occurrence of any of the factors and uncertainties described above could have a material adverse effect on our profitability, results of operation and financial condition and the trading price of our securities.

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**Burkina Faso, which is where the Kiaka Mine is located, is subject to such foreign and developing economic risk** 

The Kiaka Mine in Burkina Faso is subject to the risks associated in operating in a foreign country. These risks may include economic, social or political instability or change, hyperinflation, currency non-convertibility or instability and changes of law affecting foreign ownership, government participation, taxation, working conditions, rates of exchange, exchange control, exploration licensing, export duties, repatriation of income or return of capital, environmental protection, mine safety, labor relations as well as government control over mineral properties or government regulations that require the employment of local staff or contractors or require other benefits to be provided to local residents.

Burkina Faso has had a short democratic history with a series of elections, constitutions and coups. A new constitution was adopted by Burkina Faso in 1991. However, the possibility that the government may adopt substantially different policies cannot be ruled out.

WAF may also be hindered or prevented from enforcing its rights with respect to a governmental instrumentality because of the doctrine of sovereign immunity. Any future material adverse changes in government policies or legislation in Burkina Faso that affect foreign ownership, mineral exploration, development or mining activities, may affect the viability and profitability of the Kiaka Mine.

In addition, the legal system operating in Burkina Faso may be less developed than more established countries, which may result in risks such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political difficulties in obtaining effective legal redress in the courts whether in respect of a breach of law or regulation, or in an ownership dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a higher degree of discretion on the part of governmental agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the lack of political or administrative guidance on implementing applicable rules and regulations including, in particular, as regards local taxation and property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inconsistencies or conflicts between and within various laws, regulations, decrees, orders and resolutions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• relative inexperience of the judiciary and court in such matters.

The commitment to local business people, government officials and agencies and the judicial system to abide by legal requirements and negotiated agreements may be more uncertain, creating particular concerns with respect to licenses and agreements for business. These may be susceptible to revision or cancellation and legal redress may be uncertain or delayed. There can be no assurance that joint ventures, licenses, license application or other legal arrangements will not be adversely affected by the actions of the government authorities or others, and the effectiveness of and enforcement of such arrangements cannot be assured.

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**Changes in government free carry positions could materially affect our interests in certain projects**

In certain jurisdictions where our royalty or streaming assets are located, including countries such as Burkina Faso, local governments are entitled to receive a "free carry" interest in mining projects. This typically means the government acquires an ownership stake in the mining property without being required to contribute capital or assume a proportionate share of the operating costs. The percentage of such free carry interests can vary depending on the jurisdiction and may be subject to change based on evolving legal frameworks or government policies.

Government free carry policies are often embedded in national mining codes and can be amended unilaterally by the host government. Any increase in the government's mandatory ownership interest-whether through legislative change, renegotiation of mining conventions, or other policy actions-would result in a corresponding dilution of the project operator's equity interest in the property. Although we do not own the underlying mining properties, the economic terms of our royalty and streaming interests are generally based on the operator's attributable share of production or revenues. A reduction in the operator's equity interest due to an increased government free carry position could lead to (i) lower attributable production to which our royalty or stream applies; (ii) decreased economic returns from the asset over its life; and (iii) reduced willingness of operators to invest in or advance the project, which could impact development timelines or operational performance.

There can be no assurance that current free carry policies will remain unchanged, or that future changes will not materially and adversely affect our business, financial condition or results of operations.

**Changes in government regulation could inhibit exploration, construction and development on, or production from, the mineral properties underlying our royalties, streams or other interests**

The properties on which we hold or will hold a royalty, stream or other interest are located in multiple legal jurisdictions and political systems. There is no assurance that future political and economic conditions in such countries will not result in the adoption of different policies or attitudes respecting the development and ownership of resources. Changes in applicable laws, regulations, or in their enforcement or regulatory interpretation could result in adverse changes to mineral development or operations. Any such changes in policy or attitudes may result in changes in laws affecting ownership of assets, land tenure and resource concessions, licensing fees, taxation, royalties, price controls, exchange rates, export controls, environmental protection, labor relations, foreign investment, nationalization, expropriation, repatriation of income and return of capital, which may affect both the ability to undertake exploration, construction and development on, or production from, the properties in respect of which we hold a royalty, stream or other interest or the payments under such royalties, streams or other interests. In certain areas where we hold a royalty, stream or other interest, the regulatory environment is in a state of continuing change, and new laws, regulations and requirements may be retroactive in their effect and implementation. Any changes in governmental laws, regulations, economic conditions or shifts in political attitudes or stability are beyond our control and the owners and operators of the properties in respect of which we hold an interest and such changes may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**We are subject to risks related to certain operations in developing economies** 

Certain operators are subject to risks normally associated with the conduct of business in developing economies. Risks may include, among others, problems relating to power supply, labor disputes, delays or invalidation of governmental orders and permits, corruption, uncertain political and economic environments, civil disturbances and crime, arbitrary changes in laws or policies, foreign taxation and exchange controls, nationalization of assets, opposition to mining from environmental or other non-governmental organizations or changes in the political attitude towards mining, empowerment of previously disadvantaged people, local ownership requirements, limitations on foreign ownership, power supply issues, limitations on repatriation of earnings, infrastructure limitations and increased financing costs. The above risks may limit, disrupt or negatively impact the operator's business activities.

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**Anti-corruption and bribery laws could subject us to liability and require it to incur additional costs** 

Our business is subject to Canadian laws and other laws which generally prohibit companies and employees from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. In some cases, our assets are located in certain jurisdictions where corruption may be more common, which can increase the risk of unauthorized payments or offers of payments in violation of anti-corruption and anti-bribery laws and regulations and in violation of our policies. In addition, the operators of the mining projects may fail to comply with anti-corruption and anti-bribery laws and regulations. Although we do not operate the mining projects, enforcement authorities could deem us to have some culpability for the operators' actions. Any violations of the applicable anti-corruption and anti-bribery laws could result in significant civil or criminal penalties to us and could have a material adverse effect on our business, financial conditions, results of operation and reputation. an adverse effect on our reputation.

**We may become a party to litigation** 

We may become party to litigation from time to time in the ordinary course of business which could adversely affect our business. Should any litigation in which we become involved be determined against us such a decision could adversely affect our ability to continue operating and the market price for the Common Shares and could use significant resources and demand significant time and attention by management. Even if we are involved in litigation and win, litigation can redirect significant resources.

**Adequate infrastructure may not be available to develop the properties in respect of which we hold an interest, which could inhibit operations at such properties**

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants, which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect or inhibit the operations at the properties in respect of which we hold a royalty, stream or other interest, which may result in a material adverse effect on our profitability, results of operations and financial condition and the trading price of our securities.

**Claims and protests of indigenous people may disrupt or delay activities of the owners/operators of our interests**

Various international and national laws, codes, resolutions, conventions, guidelines, and other materials relate to the rights of indigenous peoples. We hold interests in entities that own and operate mines or mineral properties located in areas presently or previously inhabited or used by indigenous peoples. There may be certain obligations on the government to consult with indigenous people regarding actions which may affect indigenous people, including actions to approve or grant mining rights or permits. The obligations of government and private parties under the various international and national materials pertaining to indigenous people continue to evolve and be defined. From time to time, we may hold interests in entities with properties that are subject to the opposition of one or more groups of indigenous people who oppose the operation, further development, or new development on such project. Such opposition may be directed through legal or administrative proceedings or protests, roadblocks or other forms of public expression against us or the owner/operators' activities. Opposition by indigenous people to such activities may require modification of or preclude operation or development of projects or may require the entering into of agreements with indigenous people. Claims and protests of indigenous people may disrupt or delay activities of the owners/operators of the Company's interests.

**Certain operators depend on international trade and other conditions in key export markets for their products** 

The operators of certain of the properties on which we hold stream, royalty or other similar interests export their commodities and thus depend on economic conditions and regulatory policies in export markets. The ability of these operators to sell their products effectively in these major export markets could be adversely affected by a number of factors that are beyond their control, including the deterioration of macroeconomic conditions, volatility of exchange rates or the imposition of greater tariffs or other trade barriers in those markets.

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**Changes in U.S. laws and policies regulating international trade**

Legislative and regulatory changes relating to international trade in the United States could have a material adverse effect on us and our financial condition. In particular, there is uncertainty regarding U.S. tariffs and support for existing treaty and trade relationships, including with Canada. Although discussions continue between the United States and other countries, there remains significant uncertainty over whether tariffs or other restrictive trade measures or countermeasures will be implemented and, if so, the scope, impact and duration of any such measures. A trade war or new tariffs barriers may potentially lead to increases or decreases in royalties or stream revenues due to higher or lower metal prices, but the overall effect would depend on changes in demand, production strategies, and operational costs. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for development and other costs have become increasingly difficult, if not impossible, to project.

**Risks Related to the Ownership of our Securities**

**Investors may lose their entire investment**

An investment in our securities is speculative and may result in the loss of an investor's entire investment in the Company. Only investors who are experienced in high-risk investments and who can afford to lose their entire investment should consider an investment in the Company.

**An active, liquid and orderly trading market for our Common Shares may not develop, and you may not be able to resell your Common Shares** 

If a market for our Common Shares is not sustained, you may not be able to resell our securities. This may affect the pricing of the securities in the secondary market, the transparency and availability of trading prices, the liquidity of the Common Shares and the extent of issuer regulation. We cannot predict the prices at which our Common Shares will trade.

**The market price of our Common Shares may be volatile, which could result in substantial losses for investors purchasing Common Shares** 

The market price of our Common Shares could be subject to significant fluctuations. The market price of the Common Shares may be subject to wide price fluctuations in response to many factors, including variations in our operating results, divergence in financial results from analysts' expectations, changes in earnings estimates by stock market analysts, changes in our business prospects, general economic conditions, legislative changes and other events and factors outside of our control, including: (i) actual or anticipated fluctuations in our quarterly results of operations; (ii) recommendations by securities research analysts; (iii) changes in the economic performance or market valuations of companies in the industry in which we operates; (iv) addition or departure of our executive officers and other key personnel; (v) sales or perceived sales of additional securities; (vi) operating and financial performance that vary from the expectations of management, securities analysts and investors; (vii) regulatory changes affecting our industry generally and our business and operations; (viii) announcements of developments and other material events by us or our competitors; (ix) changes in global financial markets and global economies and general market conditions, such as commodity prices, currency rates, etc.; (x) significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors; (xi) operating and share price performance of other companies that investors deem comparable to us or from a lack of market comparable companies; (xii) news reports relating to trends, concerns, technological or competitive developments, regulatory changes and other related issues in our industry or target markets; and (xiii) investors' general perception of the Company and the public's reaction to our press releases, our other public announcements and our filings with the Canadian securities regulators.

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Financial markets have recently experienced significant price and volume fluctuations that have particularly affected the market prices of equity securities of companies and that have often been unrelated to the operating performance, underlying asset values or prospects of such companies. Accordingly, the market price of the Common Shares may decline even if our operating results, underlying asset values or prospects have not changed. Additionally, these factors, as well as other related factors, may cause decreases in asset values that are deemed to be other than temporary, which may result in impairment losses. There can be no assurance that continuing fluctuations in price and volume will not occur. If such increased levels of volatility and market turmoil continue, our operations could be adversely impacted, and the trading price of the Common Shares may be materially adversely affected.

**Future sales or issuance of debt or equity securities**

Sales or issuances of a substantial number of our Common Shares in the public market could occur at any time. These sales, or the market perception that the holders of a large number of our securities could significantly reduce the market price of our Common Shares and the market price could decline. We cannot predict the effect, if any, that future public sales of these Common Shares or the availability of our Common Shares for sale will have on the market price of such Common Shares. If the market price of our Common Shares was to drop as a result, this might impede our ability to raise additional capital and might cause remaining shareholders to lose all or part of their investment.

Future offerings of debt securities, which would rank senior to our Common Shares upon our bankruptcy or liquidation, and future offerings of equity securities that may be senior to our Common Shares for the purposes of dividend and liquidating distributions, may adversely affect the market price of our Common Shares.

In the future, we may attempt to increase our capital resources by making offerings of debt instruments or other securities convertible into Common Shares. Upon bankruptcy or liquidation, holders of our debt securities and lenders with respect to other borrowings will receive a distribution of our available assets prior to the holders of our Common Shares. Additional equity offerings may dilute the holdings of our existing shareholders or reduce the market price of our Common Shares. Our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control. As a result, we cannot predict or estimate the amount, timing or nature of our future offerings, and purchasers of our Common Shares bear the risk of our future offerings reducing the market price of our Common Shares and diluting their ownership interest in the Company.

**We will incur increased expenses as a result of being listed on the NYSE American or other such stock exchange in the United States** 

We expect to incur additional legal, accounting, insurance and other expenses as a result of being listed on the NYSE American or other such stock exchange in the United States, which may negatively impact our performance and could cause our results of operations and financial condition to suffer. Compliance with applicable securities legislation, the rules of the TSX Venture Exchange (the "**TSXV**") and the rules of the NYSE American increases our expenses, including our legal and accounting costs, and makes some activities more time-consuming and costly.

We also expect a NYSE American listing to make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our board of directors (the "**Board**") or as officers. As a result of the foregoing, we expect an increase in legal, accounting, insurance and certain other expenses in the future, which will negatively impact our financial performance and could cause our results of operations and financial condition to suffer.

We do not expect that our disclosure controls and procedures and internal controls over financial reporting will prevent all error or fraud. A control system, no matter how well-designed and implemented, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues within an organization are detected. The inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by individual acts of certain persons, by collusion of two or more people or by management override of the controls. Due to the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected in a timely manner or at all. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results could be materially adversely affected, which could also cause investors to lose confidence in our reported financial information, which in turn could have a material adverse effect on our profitability, results of operations, and financial condition and the trading price of our securities.

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**Our ability to pay dividends will be dependent on our financial condition** 

The declaration, timing, amount and payment of dividends are at the discretion of the Board and will depend upon our future earnings, cash flows, acquisition capital requirements and financial condition, and other relevant factors. There can be no assurance that we will declare a dividend on a quarterly, annual or other basis.

**If securities or industry analysts do not publish research or publish unfavourable research about our business, our Common Share price and trading volume could decline** 

The trading market for the Common Shares will depend on the research and reports that securities or industry analysts publish about the us and our business. We do not have any control over these analysts. We cannot assure that analysts will cover us or provide favourable coverage. If one or more of the analysts who cover us downgrades our stock or changes their opinion of the Common Shares, the price of our Common Shares could decline. If one or more of these analysts cease coverage of Versamet or fail to regularly publish reports, we could lose visibility in the financial markets, which could cause the price and trading volume of the Common Shares to decline.

**TSXV and NYSE American Listing**

In the future, we may fail to meet the continued listing requirements for our Common Shares to be listed on the TSXV or the NYSE American, or such other stock exchange in the United States. If the TSXV or the NYSE American, or such other stock exchange in the United States, delists our Common Shares from trading on their exchange, we could face significant material adverse consequences, including: a limited availability of market quotations for our Common Shares; a limited amount of news and analysts coverage for us; and a decreased ability to issue additional securities or obtain additional financing in the future.

**U.S. shareholders may not be able to enforce their civil liabilities against us or our directors, controlling persons and officers**

It may be difficult for security holders in the United States to enforce actions against us on the basis of U.S. securities law liabilities. We are a corporation incorporated in British Columbia, Canada under the *Business Corporations Act (British Columbia)* (the "**BCBCA**"). A majority of our directors and officers are residents of Canada or other countries and the majority of our assets and our subsidiaries are located outside of the U.S. Consequently, it may be difficult for U.S. shareholders to effect service of process in the U.S. upon those directors or officers who are not residents of the U.S., or to realize in the U.S. upon judgments of U.S. courts predicated upon civil liabilities under U.S. securities laws. In addition, you should not assume that the courts of Canada (i) would enforce judgments of U.S. courts obtained in actions against us or such persons predicated upon the civil liability provisions of the U.S. federal securities laws or other laws of the United States, or (ii) would enforce, in original actions, liabilities against us or such persons predicated upon the U.S. federal securities laws or other laws of the United States.

**Our status as a "foreign private issuer"**

We are a "foreign private issuer", under applicable U.S. federal securities laws, and, therefore, are not subject to the same requirements that are imposed upon U.S. domestic issuers by the U.S. Securities and Exchange Commission (the "**SEC**"). Under the U.S. Exchange Act of 1934, as amended (the "**Exchange Act**"), we are subject to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies. As a result, we do not file the same reports that a U.S. domestic issuer would file with the SEC, although we are required to file with or furnish to the SEC the continuous disclosure documents that we are required to file in Canada under Canadian securities laws. In addition, our officers, directors, and principal shareholders are exempt from the reporting and short-swing profit recovery provisions of Section 16 of the Exchange Act. Therefore, our shareholders may not know on as timely a basis when our officers, directors and principal shareholders purchase or sell our Common Shares, as the reporting periods under the corresponding Canadian insider reporting requirements are longer.

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As a foreign private issuer, we are exempt from the rules and regulations under the Exchange Act related to the furnishing and content of proxy statements. We are also exempt from Regulation FD, which prohibits issuers from making selective disclosures of material non-public information. While we comply with the corresponding requirements relating to proxy statements and disclosure of material non-public information under Canadian securities laws, these requirements differ from those under the Exchange Act and Regulation FD and shareholders should not expect to receive the same information at the same time as such information is provided by U.S. domestic companies. In addition, we may not be required under the Exchange Act to file annual and quarterly reports with the SEC as promptly as U.S. domestic companies whose securities are registered under the Exchange Act.

In addition, as a foreign private issuer, we have the option to follow certain Canadian corporate governance practices, except to the extent that such laws would be contrary to U.S. securities laws, and provided that we disclose the requirements we are not following and describe the Canadian practices we follow instead. We may in the future elect to follow home country practices in Canada with regard to certain corporate governance matters. As a result, our shareholders may not have the same protections afforded to shareholders of U.S. domestic companies that are subject to all corporate governance requirements. See "- *We may seek exemptions from certain requirements of the NYSE American that would allow us to hold shareholder meetings with a reduced quorum and issue additional shares without shareholder approval*" below.

**We may seek exemptions from certain requirements of the NYSE American that would allow us to hold shareholder meetings with a reduced quorum and issue additional shares without shareholder approval**

We have applied to list our Common Shares on the NYSE American. Section 110 of the NYSE American Company Guide permits the NYSE American to consider the laws, customs and practices of foreign issuers in relaxing certain NYSE American listing criteria, and to grant exemptions from NYSE American listing criteria based on these considerations. The NYSE American recommends a minimum quorum for a shareholder meeting of at least one third of the outstanding shares of common stock. Our quorum requirement as set forth in our Articles is one person present or represented by proxy. We intend to seek an exemption from the quorum requirement of the NYSE American Company Guide. As a result, we may hold meetings of shareholders and obtain shareholder approval for certain transactions with shareholders holding significantly less than the one-third of the outstanding Common Shares that would generally be recommended for companies listed on the NYSE American. This could result in the approval of matters that are only supported by a small portion of our shareholders.

In addition, the NYSE American Company Guide requires shareholder approval as a prerequisite to approval of applications to list additional shares in certain circumstances. In future transactions, we may seek exemptions from the shareholder approval requirements of the NYSE American Company Guide in order to follow applicable Canadian practices. If the exemptions are granted by the NYSE American, we may be able to issue additional Common Shares and obtain listing approval for these share issuances without seeking approval of shareholders in the manner that would otherwise be applicable to companies listed on the NYSE American. This would provide management with greater discretion to engage in transactions that have not been submitted to the shareholders for their approval.

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**Our status as an "emerging growth company"**

We are an "emerging growth company" as defined in section 3(a) of the Exchange Act (as amended by the JOBS Act, enacted on April 5, 2012), and we will continue to qualify as an emerging growth company until the earliest to occur of: (a) the last day of the fiscal year during which we have total annual gross revenues of U.S.$1,070,000,000 (as such amount is indexed for inflation every five years by the SEC) or more; (b) the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement under the U.S. Securities Act; (c) the date on which we have, during the previous three-year period, issued more than U.S.$1,000,000,000 in non-convertible debt; and (d) the date on which we are deemed to be a "large accelerated filer", as defined in Rule 12b-2 under the Exchange Act. We will qualify as a large accelerated filer (and would cease to be an emerging growth company) at such time when on the last business day of our second fiscal quarter of such year the aggregate worldwide market value of our common equity held by non-affiliates is U.S.$700 million or more.

For so long as we remain an emerging growth company, we are permitted to and intend to rely upon exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include not being required to comply with the auditor attestation requirements of Section 404 of the JOBS Act. We cannot predict whether investors will find our Common Shares less attractive because we rely upon certain of these exemptions. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for our Common Shares and the price of our Common Shares may be more volatile. On the other hand, if we no longer qualify as an emerging growth company, we would be required to divert additional management time and attention from our development and other business activities and incur increased legal and financial costs to comply with the additional associated reporting requirements, which could negatively impact our business, financial condition and results of operations.

**If the Company is a passive foreign investment company for U.S. federal income tax purposes in any year, certain adverse tax rules could apply to U.S. Holders of the Common Shares.**

Because we did not have active business income, for the taxable year ending December 31, 2024, we expect that we may be a passive foreign investment company ("**PFIC"**) for that year and based on the nature of our expected income, may be a PFIC for the foreseeable future.

We will be classified as a PFIC for any taxable year for U.S. federal income tax purposes if for a taxable year, (a) 75% or more of our gross income is passive income or (b) 50% or more of the value of our assets either produce passive income or are held for the production of passive income, based on the quarterly average of the fair market value of such assets.

PFIC status is determined annually and depends upon the composition of a company's income and assets and the market value of its stock from time to time. Therefore, there can be no assurance as to our PFIC status for future taxable years. The value of our assets will be based, in part, on the then market value of common shares, which is subject to change.

If we are a PFIC for any taxable year during which a U.S. Holder (as defined under "*Certain United States Federal Income Tax Consequences for U.S. Holders*" in this Registration Statement) holds Common Shares, such U.S. Holder could be subject to adverse U.S. federal income tax consequences (whether or not we continue to be a PFIC). For example, U.S. Holders may become subject to increased tax liabilities under U.S. federal income tax laws and regulations, and will become subject to burdensome reporting requirements. If we are a PFIC during a taxable year in which a U.S. Holder holds Common Shares, such U.S. Holder may be able to make a "qualified electing fund" election (a "**QEF Election**") or, alternatively, a "mark-to-market" election that could mitigate the adverse U.S. federal income tax consequences that would otherwise apply to such U.S. Holder. Upon request of a U.S. Holder, we intend to provide the information necessary for a U.S. Holder to make applicable QEF Elections. See Item 10.E, "*Taxation - Certain United States Federal Income Tax Consequences for U.S. Holders-Ownership and Disposition of the Common Shares if the Company is a PFIC*" for additional information.

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U.S. Holders are urged to consult their own tax advisers as to whether we may be treated as a PFIC and the tax consequences thereof.

**ITEM 4: INFORMATION ON THE COMPANY**

**A. History and Development of the Company** 

**General**

The Company was formed under BCBCA on January 31, 2022 by way of an amalgamation of Rosedale Resources Ltd. (incorporated October 21, 2011) and Lunde International Corp. (incorporated October 12, 2018), both private royalty companies incorporated under the BCBCA. On June 13, 2022, the Company changed its name from "Rosedale Resources Ltd." to "Sandbox Royalties Corp." in anticipation of acquiring royalty portfolios from each of Sandstorm Gold Ltd. ("**Sandstorm**") and Equinox, which closed on June 28, 2022. On June 5, 2024, the Company changed its name from "Sandbox Royalties Corp." to "Versamet Royalties Corporation" in connection with acquiring a royalty portfolio from B2Gold Corp. ("**B2Gold**").

Our head office is located at Suite 3200, 733 Seymour Street, Vancouver, British Columbia V6B 0S6, Canada and our internet address is https://versamet.com. Our telephone number is 778-945-3948. Our principal Canadian legal advisers are Blake, Cassels & Graydon LLP, located at 1133 Melville Street, Suite 3500, Vancouver, British Columbia V6E 4E5, Canada. Our principal United States legal advisors are Cozen O'Connor LLP, located at Bentall 5, 550 Burrard Street, Suite 2501, Vancouver, British Columbia V6C 2B5, Canada.

Unless and to the extent specifically referred to herein, the information on our website shall not be deemed to be incorporated by reference in this Registration Statement. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov.

**Key Developments** 

The following describes the important events in the development of our business, as well as information concerning our principal capital expenditures and divestitures since the beginning of our last three financial years to the date of this Registration Statement.

**2023**

**Acquisitions**

On October 31, 2023 (El Pilar) and November 30, 2023 (Blackwater), Versamet acquired royalties from Sandstorm on the following two projects:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Project** | **NSR Royalty** | **Metal** | **Location** | **Project Owner** |
| El Pilar | 1.0% | Cu | Mexico | Southern Copper Corp. |
| Blackwater | 0.21% | Au, Ag | Canada | Artemis Gold Inc. |

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(the "**2023 SSL Acquisitions**").

The aggregate purchase price paid to Sandstorm was US$25 million, which was comprised of: (i) a cash payment of US$10 million; and (ii) the issuance of 29,557,436 Pre-Split Common Shares at a price of $0.70 per share. In connection with the El Pilar project acquisition, 1,979,571 of the foregoing Pre-Split Common Shares are held in escrow and will be released to Versamet for cancellation if SCC (as hereinafter defined) has not commenced the sale of mineral products from the project by June 30, 2027. In connection with the 2023 SSL Acquisitions and the transactions noted below, the Company converted US$13,767,677.49 (October 31, 2023) and US$279,681.98 (November 30, 2023) under a secured convertible non-interest bearing promissory note (the "**Sandstorm Note**") that was issued as part of the consideration for the initial royalties acquired from Sandstorm in June 2022 (initial principal amount equal to US$31,436,000 has all subsequently fully converted as described below), by issuing 27,254,101 Pre-Split Common Shares and 542,623 Pre-Split Common Shares, respectively, to Sandstorm at a price of $0.70 per Common Share.

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On October 31, 2023, Versamet also entered into, together with Regal Resources Royalties Fund ("**Regal**"), an amended and restated gold purchase agreement with Equinox (the "**Greenstone GPA**"), pursuant to which, and after taking into consideration the syndication of 30% of the Greenstone GPA to Regal, Versamet paid US$52.5 million (70% of a total US$75 million) to Equinox in exchange for monthly deliveries of gold equal to the greater of: (a) 350 gold ounces, and (b) gold ounces equal to 1.26% of the monthly gold production from the Greenstone Mine at a purchase price per ounce of gold equal to 20% of the then prevailing market price (the "**Greenstone Gold Interest**" and together with the 2023 SSL Acquisitions, the "**2023 Acquisitions**"). Monthly gold delivery obligations commenced upon closing of the Greenstone GPA and will continue until a total of 63,000 ounces of gold have been delivered to Versamet. While gold deliveries are calculated based on Greenstone Mine production, gold deliveries can be sourced from production from any of Equinox's operating mines. Under the Greenstone GPA, Equinox retains the option to buy-down deliveries related to up to 75% of the original delivery obligation at the then current spot gold price, subject to a minimum gold price per ounce of US$2,000 (the "**Greenstone Buydown Option**").

**2023 Financings**

In connection with funding the 2023 Acquisitions, the Company completed the following financings:

**Regal Investment**

In addition to Regal's syndication of 30% of the Greenstone GPA for US$22.5 million, on October 31, 2023, Regal also subscribed for 34,642,500 Pre-Split Common Shares at a price of $0.70 per Common Share for aggregate gross proceeds of US$17,500,000 (based on the Bank of Canada closing exchange rate on October 27, 2023 of $1.3857 to US$1.00).

**Beedie Capital Investment (Convertible Loan and Private Placement)**

On October 31, 2023, Versamet entered into $22,161,600 (US$16 million) secured convertible loan agreement (the "**CLA**") with Beedie Capital. The CLA was denominated in Canadian dollars, had a term of 5 years and a maturity date of October 31, 2028. Interest on the convertible loan consisted of an 8% base interest rate and a 1.5% "paid-in-kind" ("**PIK**") rate, with the PIK rate reducing to 1.0% upon a public listing of the Company. On April 30, 2025, the Company repaid the full amount of the outstanding principal of the CLA, together with all accrued and unpaid interest (including accrued and unpaid PIK Interest) and the Make Whole Fee for an aggregate prepayment amount of $26,084,680.

In addition to the CLA, Beedie Capital also subscribed for 7,918,285 Pre-Split Common Shares at a price of $0.70 per Common Share for aggregate gross proceeds of US$4,000,000 (based on the Bank of Canada closing exchange rate on October 27, 2023 of $1.3857 to US$1.00).

**Revolving Credit Facility Financing** 

On October 31, 2023, we entered into a revolving credit facility (the "**Revolving Loan**" or "**Credit Facility**") with the Bank of Montreal ("**BMO**"), as lead arranger, and National Bank of Canada ("**NBF**"), which allowed us to borrow up to US$30 million (plus a US$15 million accordion feature) and initially expired December 31, 2026, which was extendable by one (1) year at the sole discretion of BMO. On April 30, 2025, we entered into an amending agreement with BMO and NBF to amend and increase the size of the Credit Facility to US$60 million (with a US$15 million accordion feature) with a maturity date of April 30, 2028. See "*First Amending Agreement to Credit Facility*" for more details. The amounts drawn on the Revolving Loan are subject to interest at the Secured Overnight Financing Rate plus 2.25% to 3.50% per annum, and the undrawn portion of the Revolving Loan is subject to a standby fee of 0.5063%-0.7875% per annum, both of which are dependent on our leverage ratio. Our leverage ratio covenant is less than or equal to 5.00x from and including fiscal quarter ended March 31, 2025 and, less than or equal to 3.50x from and including fiscal quarter ended March 31, 2026. Under the terms of the Revolving Loan, we are also subject to an interest coverage ratio of greater than or equal to 2.00x from and including March 31, 2025 and greater than or equal to 3.00x from March 31, 2026 and minimum liquidity covenant (comprising of the sum of cash, cash equivalents and additional advances available under the Revolving Loan) of greater than or equal to $5.0 million as at the last day of each fiscal quarter. In the event that the Greenstone Buydown Option is exercised, the compensation amount received from Equinox shall be applied as a prepayment of outstanding balances under the Credit Facility, with the continuing Credit Facility commitment being reduced to a maximum limit to be agreed. As of the date of this Registration Statement, the balance drawn on or outstanding under the Credit Facility is US$53 million. The payment and performance of the Company's obligations under the Credit Facility is secured by a first priority security interest in all present and after acquired property of the Company and any material subsidiaries.

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**Existing & 2023 Investor Rights Agreements**

In connection with acquiring royalty portfolios from each of Sandstorm and Equinox in June 2022, the Company entered into investor rights agreements with each of Equinox ("**Equinox IRA**") and Sandstorm ("**Sandstorm IRA**", and together with Equinox IRA, the "**2022 IRAs**"). The following is a summary of the principal terms of the 2022 IRAs. This summary does not purport to be complete and is qualified in its entirety by reference to the Equinox IRA and the A&R Sandstorm IRA (as defined herein), as applicable. The term "investor", as such term is used in the summary of the 2022 IRAs below, refers to Equinox or Sandstorm, as applicable under the 2022 IRAs.

**Board Nomination** 

Unless either of the 2022 IRAs is terminated pursuant to its terms, which shall automatically occur on the date the investor's share ownership percentage ceases to be at least 10% for a continuous period of 30 days, the investor shall have the right to designate one investor nominee for election to our Board. If the investor is entitled to nominate a nominee but has not done so, the investor shall be entitled to designate an observer to attend all meetings of our Board.

**Standstill (subsequently expired) and Escrow**

The investor agreed that, during the period commencing on the effective date (June 28, 2022) and ending on the earlier of: (a) the date which is 12 months from the effective date (b) the date on which the investor's ownership percentage ceases to be at least 10%, the investor shall not (subject to certain exceptions), and it shall cause its affiliates not to, in any manner, directly or indirectly, or in concert with any other person: propose or seek to effect any change of control transaction; solicit proxies from shareholders or form, join, support or participate in a group to solicit proxies from shareholders with a view to replacing the members of our Board; or purchase, offer or agree to purchase or negotiate to purchase any securities, or assets of the Company, without the advance written authorization of our Board.

The investor also agreed to comply with and be bound by any escrow requirements imposed by any stock exchange in connection with the closing of a going public transaction.

**Participation and Top-Up Rights**

Subject to certain exceptions, if Versamet proposes to offer or issue any Common Shares or securities convertible or exchangeable into Common Shares, the investor will be entitled to participate in such issuance on a *pro rata* basis. In addition, at any time and from time to time, the investor has a top-up right to maintain its ownership in connection with any security-based compensation arrangement and any other dilutive issuance where the participation right does not apply.

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Concurrently with the closing of the 2023 financings, the Company entered into an investor rights agreements with each of Regal ("**Regal IRA**") and Beedie Capital ("**Beedie Capital IRA**"). The Beedie Capital IRA has been terminated upon the repayment of the CLA on April 30, 2025. See "*Prepayment of CLA*". The following is a summary of the principal terms of the Regal IRA. This summary does not purport to be complete and is qualified in its entirety by reference to the Regal IRA.

**Regal Investor Rights Agreement**

The Regal IRA contains substantially similar terms to the 2022 IRAs except for, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regal has a board observer right for a period of 24 months following the effective date (October 31, 2023) if Regal's ownership percentage is at least 5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There are no standstill requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provided that Regal has at least a 10% ownership percentage, it shall give notice of any proposed transfer of securities to the Company and cooperate in good faith with the Company to find a buyer acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regal's participation rights only include securities issued from treasury of the Company for the purposes of raising capital and includes no top up right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company and Regal agreed to collaborate on future opportunities in good faith.

**December 2023 Private Placement**

On December 13, 2023, the Company completed the first tranche of a non-brokered private placement and issued 10,457,141 Pre-Split Common Shares at a price of $0.70 per Common Share for aggregate gross proceeds of $7,320,000. On December 22, 2023, the Company completed the second tranche of the non-brokered private placement and issued 1,050,000 Pre-Split Common Shares at a price of $0.70 per Common Share for aggregate gross proceeds of $735,000. No finders fees were paid in connection with either tranche of the foregoing.

On December 29, 2023, the Company converted US$3,202,094.74 under the Sandstorm Note by issuing 6,040,523 Pre-Split Common Shares to Sandstorm at a price of $0.70 per Common Share.

**2024**

**Acquisitions**

On June 5, 2024, we entered into a royalty sale and purchase agreement (the "**B2Gold PA**") with B2Gold, pursuant to which Versamet agreed to acquire the following portfolio of royalties from B2Gold for US$89,859,810.78, subject to certain adjustments (the "**B2Gold Transaction**"):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Project** | **NSR Royalty** | **Metal** | **Location** | **Project Owner** |
| Kiaka | 2.7% net smelter returns ("**NSR**") royalty until 2.5Moz of gold produced; 0.45% NSR royalty on next 1.5Moz. | Au | Burkina Faso | West African Resources Ltd. (85%), Government of Burkina Faso (15%) |

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- 41 - <br>

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| | | | | |
|:---|:---|:---|:---|:---|
| Toega | NSR royalty on first 1.5Moz of gold produced. 2.7% until royalty payments total US$22.5 million, and 0.45% thereafter. | Au | Burkina Faso | West African Resources Ltd. (90%), Government of Burkina Faso (10%) |
| Primavera | 1.5% | Au | Nicaragua | Calibre Mining Corp. |
| Midas | 1.0% | Ag, Au | British Columbia | Teuton Resources Corp. |
| Del Norte | 1.0% | Ag, Au | British Columbia | Teuton Resources Corp. |
| (Kiaka together with Toega, Primavera, Midas and Del Norte are the "**First Tranche Royalties**") | (Kiaka together with Toega, Primavera, Midas and Del Norte are the "**First Tranche Royalties**") | (Kiaka together with Toega, Primavera, Midas and Del Norte are the "**First Tranche Royalties**") | (Kiaka together with Toega, Primavera, Midas and Del Norte are the "**First Tranche Royalties**") | (Kiaka together with Toega, Primavera, Midas and Del Norte are the "**First Tranche Royalties**") |
| Golden Sidewalk | 2.0% | Au | Ontario | Prosper Gold Corp. |
| Mocoa | 2.0% | Cu, Mo | Colombia | Libero Copper & Gold Corporation |
| (Golden Sidewalk together with Mocoa, are the "**Second Tranche Royalties**") | (Golden Sidewalk together with Mocoa, are the "**Second Tranche Royalties**") | (Golden Sidewalk together with Mocoa, are the "**Second Tranche Royalties**") | (Golden Sidewalk together with Mocoa, are the "**Second Tranche Royalties**") | (Golden Sidewalk together with Mocoa, are the "**Second Tranche Royalties**") |

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Pursuant to the B2Gold PA, B2Gold was, in its sole discretion, able to elect to have all or a portion of the purchase price paid in Common Shares at a price of $0.80 per Pre-Split Common Share. Concurrent with signing the B2Gold PA, B2Gold elected to receive Common Shares for the First Tranche Royalties and the parties closed the acquisition of the First Tranche Royalties for US$71,609,810.78 by the issuance of 122,049,971 Pre-Split Common Shares. On August 13, 2024, B2Gold elected to receive Common Shares for the Second Tranche Royalties and the parties closed the acquisition of the Second Tranche Royalties for US$10,250,000 by the issuance of 17,469,844 Pre-Split Common Shares at $0.80 per Pre-Split Common Share.

In connection with closing the First Tranche Royalties on June 5, 2024, the Company satisfied the entire remaining principal amount of US$14,186,545.79 under the Sandstorm Note by issuing 24,179,193 Pre-Split Common Shares to Sandstorm at a price of $0.80 per Pre-Split Common Share.

On August 13, 2024, B2Gold also subscribed for 12,782,812 Pre-Split Common Shares at a price of $0.80 per Pre-Split Common Share for total private placement cash proceeds of US$7.5 million.

**B2Gold Investor Rights Agreement & Amended and Restated Sandstorm Investor Rights Agreement**

Concurrently with the closing of the first tranche of the B2Gold Transaction, the Company entered into an investor rights agreement with B2Gold ("**B2Gold IRA**") and an amended and restated the Sandstorm IRA ("**A&R Sandstorm IRA**"). The following is a summary of the principal terms of the B2Gold IRA and A&R Sandstorm IRA. This summary does not purport to be complete and is qualified in its entirety by reference to B2Gold IRA and A&R Sandstorm IRA, as applicable.

**B2Gold Investor Rights Agreement**

The B2Gold IRA is similar to the Regal IRA except for, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• B2Gold has the same standstill provisions as agreed to in the 2022 IRAs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• B2Gold has additional share transfer restrictions such that B2Gold cannot, subject to certain exceptions, sell to competitors of Versamet or where such sale will create a new 10% insider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provided that B2Gold holds at least a 15% ownership of Versamet and subject to standard procedural matters, B2Gold has piggyback registration rights on Registration Statement offerings (except for an initial public offering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There are no cooperation or public listing covenants.

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**Amended and Restated Sandstorm Investor Rights Agreement** 

In connection with the B2Gold Transaction and Sandstorm's most favored nation right, the Sandstorm IRA was amended and restated on June 5, 2024 to add the same piggyback registration right offered to B2Gold.

**2025**

**Kolpa Copper Stream**

On April 1, 2025, we entered into a copper purchase agreement (the "**Kolpa CPA**") with a Kolpa Canada Ltd. (the "**Stream Seller**"), a wholly owned subsidiary of Endeavour Silver Corp. ("**Endeavour**"). The Kolpa CPA was entered into in connection with Endeavour's pending acquisition of the Huachocolpa Uno Mine in Peru (the "**Kolpa Mine**"). The Kolpa CPA applies to minerals from the Stream Properties (as defined in the Kolpa CPA), which include the Kolpa Mine and to minerals processed through the existing and future mineral processing facilities of the Kolpa Mine, other than future mineral processing facilities with nameplate capacity not less than 15,000 tonnes per day. Subject to the terms and conditions of the Kolpa CPA, at the closing date of the Kolpa CPA, which shall be concurrent with the closing of Endeavour's acquisition of the Kolpa Mine, Versamet will provide Endeavour with US$35 million as a prepayment (the "**Deposit**"). Following the closing date of the Kolpa CPA, Versamet agrees to purchase from the Stream Seller the greater of: (i) refined copper equal to 95.8% of produced copper (irrespective of the copper payable under the relevant offtake agreement), and (ii) refined copper equal to 0.03 pounds per pound of produced lead. Once 6,000 tonnes of refined copper have been delivered, Versamet agrees to purchase from the Stream Seller 71.85% of produced copper. Once 10,500 tonnes of refined copper have been delivered, Versamet agrees to purchase from the Stream Seller 47.9% of produced copper. Versamet will purchase LME Warrants (as defined in the Kolpa CPA) from the Stream Seller at a purchase price (the "**Copper Purchase Price**") equal to the spot price of refined copper for each metric tonne delivered. Until the Deposit has been reduced to zero, the Copper Purchase Price will be paid in two parts: (i) 10% of the spot price of refined copper payable in cash (the "**Ongoing Copper Payment**"); and (ii) 90% of the spot price of refined copper which would be paid by a reduction of the Deposit. After the Deposit has been reduced to zero, Versamet will purchase refined copper for a purchase price equal to the Ongoing Copper Payment for each metric tonne of copper delivered.

The Kolpa CPA provides for a right of first refusal in favour of Versamet with respect to the sale or transfer of any royalty, stream or similar interests in respect of minerals from the Stream Properties. The Kolpa CPA would be secured by an equity pledge of the Stream Seller in the Kolpa Mine owner, which Versamet would agree to subordinate in favor of future financiers of the Stream Properties. The Kolpa CPA includes customary stream survival terms in favour of Versamet. The Kolpa CPA also provides Versamet with a right to purchase an additional stream interest equivalent to up to 2.2% of the total revenue in future discoveries of mineral deposits at the Kolpa Mine that are processed through a new mineral processing facility with nameplate capacity of not less than 15,000 tonnes per day. If Versamet does not exercise this right, minerals processed through the new facility are not subject to the Kolpa CPA.

On May 1, 2025, Endeavour's acquisition of the Kolpa Mine and the Kolpa CPA closed. We paid the Deposit with funds from our Credit Facility, as amended.

*First Amending Agreement to Credit Facility*

In connection with the closing of Kolpa CPA, Versamet has entered into an amending agreement with BMO and NBF to amend and increase the size of the Credit Facility to US$60 million with a US$15 million accordion feature. The new Credit Facility included an updated maturity date of April 30, 2028 and an approximate 25 basis point reduction to the drawn interest spread.

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*Prepayment of CLA*

On April 30, 2025, the Company repaid the full amount of the outstanding principal of the CLA, together with all accrued and unpaid interest (including accrued and unpaid PIK Interest) and the Make Whole Fee for an aggregate prepayment amount of $26,084,680. Subsequently the CLA was fully repaid and terminated in accordance with its terms.

On September 12, 2025 we completed a consolidation, or a reverse stock split, of our issued and outstanding common shares on the basis of one (1) new Common Share for five (5) old common shares.

**B. Business Overview**

Versamet's purpose is to provide capital to responsibly produce the resources our world needs to create prosperity, drive economic growth and build a better future. Our vision is to build the world's premier metals and mining investment. Our current portfolio of over 25 metals royalties, streams, and other interests is distinguished by its cash flow generation and growth, the majority of which (approximately 85%) is associated with exposure to gold and the balance associated with exposure to copper. We expect to continue to prioritize precious metals, copper, and other diversified metals as our portfolio grows.

Versamet's competitive strategy is focused on five key elements: i) robust access to capital, ii) versatile investment mandate, iii) asset quality over quantity, iv) growth at pace, and v) strong relationships. Our vision and strategy reflect our belief that size/scale, asset/deal quality, access to capital through business cycles (including internally generated cash flow) and demonstrated ability to grow and repeatedly generate returns above the cost of capital are the key value drivers in the royalty and streaming business model.

**Metals Royalty and Streaming Model**

The royalty and streaming business model is a high-margin, scalable business model that is intended to provide our investors with commodity price exposure as well as upside from mine life extensions, expansion, optimization, and exploration success, but also mitigates the downside risk associated with operating, exploration and development cost inflation and risk as well as the operational risks associated with managing operating mines, projects, and mineral deposits compared to traditional mining companies.

A royalty is a non-dilutable, free carried interest in a mining property which provides payments to a royalty holder by an owner or an operator of a property. The payments are typically calculated based on a percentage of the gross revenue or net proceeds received by the owner of the underlying mineral properties upon the sale of commodities produced on the property. These proceeds are usually subject to deductions or charges for transportation, insurance, smelting and refining costs as set out in the royalty agreement, but may also be subject to other deductions or charges.

A stream is a transaction pursuant to which, in exchange for an initial upfront payment, the stream holder is given the right to purchase a predetermined percentage of future commodity production generated from a mining operation, at a predetermined below-market price. Typically, the up-front payment is applied against future deliveries, together with the predetermined below-market price (which may be fixed or floating) as the commodities are delivered on an ongoing basis.

As a metals royalty and streaming company, Versamet effectively holds a diversified portfolio of exposures to multiple mines and mineral deposits, operators, jurisdictions and commodities.

According to McKinsey & Company, royalty and streaming as an alternative financing source has several advantages when viewed from a mining company's perspective. When compared to debt-based deals, royalty and streaming deals often have a longer payment period; have no fixed obligations in cash, so they present less risk during periods of lower prices; have limited restrictions on the use of cash; have no debt covenants to maintain; and share production and operational risks across the value chain. When compared to equity-based deals, royalty and streaming deals are less dilutive because streaming and royalties are applied to a single asset only; are advantageous when share prices are trading below net asset value; do not have changes in ownership and none are implied on the management team; and usually have no additional costs such as brokerage or market discount fees.[<sup>1</sup>](#_ftn1)

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[<sup>1</sup>](#_ftnref1) McKinsey & Company. (Apr 2021). *Streaming and royalties in mining: Let the music play on*.

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We expect that the royalty and streaming segment will continue to grow given the significant capital required to maintain and grow the supply of mined raw materials the world demands. Wood Mackenzie Limited, a global provider of data and analytics for the energy transition, estimates that mining companies need to invest nearly US$1.7 trillion between 2020 and 2035 to help supply enough copper, nickel, zinc, steel, battery metals, and other materials needed to meet demand.[<sup>2</sup>](#_ftn2) For copper alone, Wood Mackenzie estimates that investment of more than US$23 billion per year will be required over the next 30 years to deliver the copper required to meet demand - a level of investment only previously seen for a limited period following the China-induced commodity super cycle of the previous decade.[<sup>3</sup>](#_ftn3) In a recent analysis of risks facing the mining and metals sector in 2025 published by EY,[<sup>4</sup>](#_ftn4) capital was identified as the number one risk, ranking ahead of environmental stewardship, geopolitics, and license to operate. The authors state that "tough financing and macroeconomic conditions are making it more difficult for miners to raise capital despite the growing need for critical minerals," and "exploration and greenfield projects are not receiving the investment required to head off supply deficits in many commodity markets." As a result, mining companies are "accessing a wider range of capital" from multiple sources. Alternative sources of financing, including royalty and stream financing, are becoming increasingly critical.

![](formdrsaxu002.jpg)

**EY. (Oct. 2024).** ***Top 10 business risks and opportunities for mining and metals in 2025.***

We believe that Versamet is well-positioned given its business model and strategy to benefit from increasing demand for mine financing via royalty, streaming and other arrangements as property owners, developers and operators are increasingly attracted to the lack of shareholder dilution associated with royalty, streaming and other arrangements compared to traditional equity financing and to the non-financial benefits that royalty and stream holders like Versamet are able to provide, including structural flexibility, partner-like alignment and sector experience and expertise.

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[<sup>2</sup>](#_ftnref2) Wood Mackenzie. (Dec 2020). *Faster decarbonisation and mining: a crisis of confidence or capital?*

[<sup>3</sup>](#_ftnref3) Wood Mackenzie. (Oct 2022). *Net zero scenario to require 9.7 Mt of new copper supply over next decade.*

[<sup>4</sup>](#_ftnref4) EY. (Oct 2024). *Top 10 risks and opportunities for mining and metals companies in 2025.*

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We believe that Versamet's investors will be uniquely positioned to benefit from this secular growth of the royalty and streaming segment combined with expected growth in the demand for metals more broadly by virtue of Versamet's royalty and streaming business model combined with Versamet's differentiated strategy, portfolio, sponsorship, and leadership team.

**Our Portfolio**

Our current portfolio of over 25 assets is underpinned by a stable base of cash flow generating assets including our Greenstone, Mercedes, Blackwater, Kolpa and Kiaka assets, complemented by near-term free cash flow growth attributable to assets that are currently in construction such as our Toega asset. Our portfolio is distinguished by its cash flow generation and growth. Versamet's annual revenue for 2024 was approximately US$12 million from two cash flowing assets (Greenstone and Mercedes), equivalent to production of approximately 5,100 GEOs.[<sup>5</sup>](#_ftn5)

Additionally, our portfolio has been designed to grow organically over time through exposure to potential mine life extensions, exploration success, new mine builds, and throughput expansions. Our portfolio is well balanced with approximately 65% of asset value[<sup>6</sup>](#_ftn6) associated with mines in the cash flowing stage of development. Our portfolio contains optionality via large-scale projects with approximately 85% of asset value associated with mines or projects that are being advanced by mining operators with a market capitalization of at least US$1 billion, including Equinox, WAF, Artemis Gold Inc. ("**Artemis**"), Glencore Canada Corporation ("**Glencore**"), HudBay Minerals Inc. ("**HudBay**") and Southern Copper Corp. ("**SCC**").[<sup>7</sup>](#_ftn7)

Our commodity mix is currently tilted toward precious metals and copper assets (approximately 88% of asset value)[<sup>8</sup>](#_ftn8) with complementary exposure to other metals (approximately 12%). Versamet's forecasted revenue in 2026 is expected to be 87% attributable to gold and 13% attributable to copper. The percentage of revenue associated with exposure to gold for the fiscal year ended December 31, 2024 was 83%, and the amount recorded for the six months ended June 30, 2025 was $7.8 million. We expect to continue to prioritize precious metals, copper, and other diversified metals as the portfolio grows. Our portfolio is also well diversified from a geographical perspective with assets in over 10 different countries on six different continents.

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| | |
|:---|:---|
| **STAGE OF DEVELOPMENT** | **PORTFOLIO BREAKDOWN** |
| **Cash Flowing** | 65% |
| **In Construction** | 4% |
| **Near-Term Development** | 13% |
| **Long-Term Development** | 18% |

---

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[<sup>5</sup>](#_ftnref5) Gold Equivalent Ounces for 2024 calculated by dividing total revenue of approximately US$12.0 million by the average realized gold price of US$2,376 per ounce.

[<sup>6</sup>](#_ftnref6) Asset value breakdown by stage based on book value of individual assets as a percentage of total book value of assets as of June 30, 2025. See following page for list of assets by stage. Includes Kolpa at assumed book value of US$35 million.

[<sup>7</sup>](#_ftnref7) Asset value breakdown by operator market capitalization based on book value of individual assets as a percentage of total book value of assets as of June 30, 2025. See following page for list of assets by operator. Market capitalization data from Capital IQ as of June 30, 2025. Non-public operators assumed to have market cap of less than US$1 billion. Includes Kolpa at assumed book value of US$35 million.

[<sup>8</sup>](#_ftnref8) Asset value breakdown by commodity mix is calculated as the commodity mix for each individual asset weighted by the book value for each asset, respectively, as of June 30, 2025. Includes Kolpa at assumed book value of US$35 million. Commodity mix for each individual asset based on the price assumption for each commodity multiplied by the contained amount (in measured, indicated, and inferred resource categories taken together) of each commodity, respectively, as reported in the latest publicly available resource statement for each individual asset, respectively. Commodity price assumptions as follows: US$2,300/oz gold, US$27/oz silver, US$4.25/lb copper, US$1.20/lb zinc, US$0.95/lb lead, US$20/lb molybdenum.

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- 46 - <br>

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| | |
|:---|:---|
| **COMMODITY** | **PORTFOLIO BREAKDOWN** |
| **Gold** | 60% |
| **Silver** | 3% |
| **Copper** | 25% |
| **Other** | 12% |

---

---

| | |
|:---|:---|
| **OPERATOR MARKET CAP** | **PORTFOLIO BREAKDOWN** |
| **+US$10B Market Cap** | 12% |
| **+US$1B Market Cap** | 69% |
|  | 19% |

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In the tables above and table below, our classification of properties in the cash flowing phase includes properties that are producing minerals or metals and are currently contributing to Versamet's revenue stream. Properties classified as in construction are currently in construction. We consider a property to be in the near-term development phase if it has completed feasibility or pre-feasibility development studies, completed or well-advanced permitting, completed or well-advanced construction financing and has a specific timeline to begin construction, typically expected within 1-2 years. Our classification of properties in the long-term development phase includes projects that range from the late stages of pre-construction development to the early stages of grassroots exploration.

The following table summarizes key information with respect to select assets in our portfolio, some assets of which are described in further detail below:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **PROJECT** | **TERMS** | **METAL** | **LOCATION** | **PROJECT OWNER** | **STAGE** |
| **Greenstone** | 1.26% Stream [<sup>9</sup>](#_ftn9) | Au | Canada | Equinox Gold Corp. | Cash Flowing |
| **Mercedes** | 2.0% NSR | Au, Ag | Mexico | Bear Creek Mining Corp | Cash Flowing |
| **Kolpa** | 95.8% Stream [<sup>10</sup>](#_ftn10) | Cu | Peru | Endeavour Silver Corp. | Cash Flowing |
| **Blackwater** | 0.21% NSR [<sup>11</sup>](#_ftn11) | Au | Canada | Artemis Gold Inc. | Cash Flowing |

---

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[<sup>9</sup>](#_ftnref9) Greater of i) 1.26% of monthly production at Greenstone Mine (100%), or ii) 350 koz Au, until 63,000 ounces Au have been delivered; gold deliveries subject to per-ounce payments equal to 20% of the prevailing spot gold price at time of delivery

[<sup>10</sup>](#_ftnref10) Greater of i) 95.8% of produced copper and ii) 0.03 tonnes of copper per tonne of produced lead until 6,000 tonnes of copper delivered; 71.85% of produced copper until 10,500 tonnes of copper delivered; 47.9% of produced copper thereafter; copper deliveries subject to payments equal to 10% of spot price

[<sup>11</sup>](#_ftnref11) 0.21% net smelter returns royalty applicable to approximately 35-50% <br>of production (Versamet management estimate)

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- 47 - <br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Kiaka** | 2.7% NSR [<sup>12</sup>](#_ftn12) | Au | Burkina Faso | West African Resources | Cash Flowing |
| **Toega** | 2.7% NSR [<sup>13</sup>](#_ftn13) | Au | Burkina Faso | West African Resources | In Construction |
| **Vittangi** | 1.0% NSR | Graphite | Sweden | Talga Group Ltd | Near-Term Development |
| **Cuiú Cuiú** | 1.5% NSR | Au | Brazil | Cabral Gold Inc | Near-Term Development |
| **El Pilar** | 1.0% GRR [<sup>14</sup>](#_ftn14) | Cu | Mexico | Southern Copper Corp. | Near-Term Development |
| **Converse** | 1.0% NSR | Au | USA | Axcap Ventures Inc. | Long-Term Development |
| **Hackett River** | 2.0% NSR | Zn, Ag, Cu, Pb, Au | Canada | Glencore Canada Corp | Long-Term Development |
| **Mason** | 0.4% NSR | Cu, Au, Mo, Ag | USA | Hudbay Minerals Inc | Long-Term Development |
| **Pilar** | 1.0% NSR | Au | Brazil | Pilar Gold Inc | Long-Term Development |
| **Prairie Creek** | 1.2% NSR | Zn, Pb, Ag | Canada | NorZinc Ltd | Long-Term Development |
| **Adi Dairo** | 1.0% NSR | Cu, Zn, Au | Ethiopia | Sun Peak Metals Corp | Long-Term Development |
| **Ajax** | 1.5% NSR | Cu, Au, Ag | Canada | KGHM / Abacus Mining & Exploration Co | Long-Term Development |
| **Bobosso** | 1.0% NSR | Au | Cote d'Ivoire | Montage Gold Corp | Long-Term Development |
| **Del Norte** | 1.0% NSR | Au, Ag | Canada | Teuton Resources | Long-Term Development |
| **Golden Sidewalk** | 2.0% NSR | Au | Canada | Prosper Gold Corp | Long-Term Development |
| **Midas** | 1.0% NSR | Au, Ag | Canada | Teuton Resources | Long-Term Development |
| **Mocoa** | 2.0% NSR | Cu, Mo | Colombia | Copper Giant Resources | Long-Term Development |
| **Nefasit** | 1.0% NSR | Cu, Zn, Au | Ethiopia | Sun Peak Metals Corp | Long-Term Development |
| **Pacaska** | 0.5% NSR | Au, Cu | Peru | Pucara Gold Ltd | Long-Term Development |
| **Primavera** | 1.5% NSR | Au, Cu | Nicaragua | Equinox Gold Corp. | Long-Term Development |

---

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[<sup>12</sup>](#_ftnref12) 2.7% NSR royalty (100% basis) until 2.5 Moz Au produced; 0.45% NSR royalty on the next 1.5 Moz Au

[<sup>13</sup>](#_ftnref13) 2.7% NSR royalty (100% basis) until royalty payments total US$22.5 million; 0.45% NSR royalty thereafter until 1.5 Moz produced

[<sup>14</sup>](#_ftnref14) 1.0% gross revenue royalty excludes first 85 Mlbs of payable copper production

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- 48 - <br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Wiluna** | 2.0% NSR | Uranium | Australia | Toro Energy Ltd | Long-Term Development |
| **Zuun Mod** | 1.5% NSR | Mo, Cu | Mongolia | Erdene Resource Development Corp | Long-Term Development |

---

**Greenstone Mine, Ontario, Canada**

One of Versamet's flagship assets is the Greenstone Gold Interest on the Greenstone Mine which is owned 100% by Equinox (the "**Greenstone Mine**" or "**Greenstone**"). The Greenstone GPA entitles Versamet to monthly deliveries of gold equal to the greater of: (a) 350 gold ounces, and (b) gold ounces equal to 1.26% of the monthly gold production from the Greenstone Mine at a purchase price per ounce of gold equal to 20% of the then prevailing market price, until a maximum of 63,000 ounces have been delivered under the agreement. The delivery obligation commenced in November 2023. The gold deliverable under the Greenstone Gold Interest may be sourced from any of Equinox's operating mines. Under the Greenstone GPA, Equinox retains the Greenstone Buydown Option that gives Equinox the option to buy-down deliveries related to up to 75% of the original delivery obligation at the then current spot gold price, subject to a minimum gold price per ounce of US$2,000. See "*Material Properties*" for more information.

**Kiaka Project, Burkina Faso**

Versamet holds a NSR royalty on the Kiaka project ("**Kiaka**" or "**Kiaka Mine**"), owned by WAF (85%) and the Burkina Faso government (15%). Under the terms of the royalty agreement, WAF pays to Versamet 2.7% of all gold produced from Kiaka (100% basis) until 2,500,000 ounces of gold have been produced and 0.45% on the next 1,500,000 ounces of gold production. See "*Material Properties*" for more information about the Kiaka Mine.

**Foreign Operations/Interests**

Versamet holds royalty interests in respect of mines and properties located outside of the jurisdiction of its incorporation, as well as outside of the United States. Foreign operations can be subject to regulation (and changes thereto) in those jurisdictions with respect to land tenure, productions, export controls, taxation, environmental legislation, land and water use, local indigenous people's interests, mine safety, and expropriation of property. Any changes in legislation or regulation are beyond Versamet's control. See "*Risk Factors - Risks Related to Mining Operations - Certain operators are subject to risks relating to foreign jurisdictions and developing economies, which could negatively impact Versamet*".

**Principal Markets** 

Versamet is a royalty and streaming company focused on the mining industry, with a diversified portfolio of royalty, stream, and other mineral interest agreements spanning multiple jurisdictions globally. Our portfolio includes royalty and streaming interests in North America, South America, Africa, Asia and Australia, with key assets located in countries such as Canada, Mexico, Burkina Faso, Sweden, and others. These jurisdictions represent the principal markets in which we conduct our business activities. Our portfolio is diversified by commodity exposure, including gold, silver, copper, and other base and precious metals.

As of the date hereof, our revenue has primarily been generated from royalty and streaming interests in producing properties located in Canada, Mexico, and Peru, being Greenstone, Mercedes, and Kolpa. In addition to these current revenue streams, several other properties in our portfolio, including assets in Canada, Burkina Faso, and Sweden, have recently started or are nearing the cash flow stage as their operators advance development and production activities.

See "*Investment Highlights - Cash flowing, gold-copper centric portfolio with large-scale optionality for a breakdown of our total revenues*" for a more detailed breakdown of total revenues.

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**Regulation** 

Operators of the mines that are subject to our royalty and streaming interests must comply with numerous environmental, mine safety, land use, waste disposal, remediation and public health laws and regulations promulgated by federal, state, provincial and local governments in the United States, Mexico, Brazil, Canada, Colombia, Burkina Faso, Sweden, Ethiopia, Cote d'Ivoire, Nicaragua, Mongolia, and Peru where we hold royalty and streaming interests. Although we, as a royalty and streaming owner, are not responsible for ensuring compliance with these laws and regulations, failure by the operators to comply with applicable laws, regulations and permits can result in injunctive action, orders to suspend or cease operations, damages, and civil and criminal penalties on the operators, which could have a material adverse effect on our results of operations and financial condition.

**Our Strategy and Competitive Strengths** 

Versamet is engaged in the acquisition and management of royalties, streams, and similar interests in metals and mining operations globally. Since our inception in 2022, Versamet has assembled a high-quality, cash-generating portfolio anchored by assets operated by strong counterparties, with a focus on precious metals, copper, and other metals. Versamet's purpose is to provide scalable, partner-oriented capital that enables the responsible production of the metals that drive prosperity and economic growth.

Versamet's vision is to build the next premier mid-tier royalty and streaming company - technically driven, growth-focused, and built for long-term value creation. Versamet's strategy is centered on five key pillars: (i) robust access to capital across market cycles, including internally generated cash flow; (ii) disciplined focus on high-quality assets and counterparties; (iii) accretive growth through the addition of near-term cash flow; (iv) a versatile investment mandate across project stages and structures; and (v) deep sector relationships.

Versamet is purpose-built for scale, and its business model is designed to generate sustainable growth and consistent returns above the cost of capital. Versamet believes it is well-positioned to benefit from growing demand for alternative mine financing, as operators increasingly turn to royalties, streams, and similar structures for their non-dilutive nature, structural flexibility, and the strategic value-add of experienced partners like Versamet.

**Robust access to capital:** We believe that access to capital through business and commodity cycles (including internally generated cash flow) and demonstrated ability to grow and repeatedly generate returns above the cost of capital are interrelated and are key value drivers in the royalty and streaming business model. Our strategic focus on internal free cash flow generation combined with developing and maintaining access to multiple other sources and forms of capital provides Versamet with a differentiated ability to continue to pursue accretive, countercyclical investments through the full business cycle and to grow faster than would otherwise be possible. We believe our financial flexibility is a key differentiating factor and competitive advantage for Versamet relative to other emerging royalty and streaming companies.

**Versatile investment mandate:** Versamet is versatile. We prioritize generating strong risk-adjusted returns and benefitting from the return-enhancing benefits of diversification over adherence to a strict commodity mix and/or a dogmatic approach to structuring royalty, streaming and other agreements. We take pride in our ability to be flexible, thoughtful, and creative while seeking strong risk-adjusted returns in our investments. We intend to grow our portfolio through acquisitions and are actively pursuing acquisitions of precious metals and copper assets. Outside of our core focus on precious metals and copper assets, we will selectively consider opportunities across different commodities where we see appropriate risk-adjusted returns, particularly on metals (e.g., nickel and zinc) which have large, liquid markets, robust supply/demand fundamentals, price transparency, and exposure to compelling long-term global trends. We have a preference for mining-friendly jurisdictions and contracts with full, life-of-mine coverage, but will consider acquisitions of assets globally and/or in non-traditional royalty and stream structures where we see appropriate risk-adjusted returns, where the asset and counterparty quality justifies it, and where we can maintain a balanced, well-diversified portfolio overall. Our versatile investment mandate differentiates us from the majority of other royalty and streaming companies, increases the diversification of our portfolio, and enhances our ability to create shareholder value across a wide range of macroeconomic and commodity price environments.

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**Asset quality over quantity:** We put a strong focus on investment in high quality mines and projects with capable operators and credible paths to production. We seek to invest in mines or projects that we believe will be producing mines within a reasonable time frame and we balance this focus with prudent investments in earlier stage opportunities to maintain a robust exploration and development pipeline. Regardless of stage of development, we place a premium on assets with reputable and well-funded mine operators, robust technical characteristics, long mine lives, and good potential for exploration and/or throughput expansion upside. We have a fundamental belief that prioritizing quality drives superior shareholder returns. We have strong in-house financial, technical, and legal diligence practices which help to identify quality and unlock value.

**Growth at pace:** We measure our actions and our overall performance on a per share basis. We aim to protect and create shareholder value by focusing on meaningfully sized acquisitions, maintaining a lean cost structure, and limiting shareholder dilution to the greatest extent possible. We are focused on acquisitions with a target size of US$30-$100 million, though we may occasionally make exceptions where we see outsized returns and/or strategic value in larger or smaller deals. We believe that we will create more shareholder value (as measured by free cash flow per Common Share and net present value per Common Share) by focusing our resources on large deals. We further believe that we will achieve our vision faster by focusing on large deals. Lastly, we believe that there is generally a positive correlation between deal size and asset/operator quality, so by focusing on large deals we are also focusing on higher quality deals which we expect will lead to superior value creation over time.

**Strong Relationships:** Versamet's rapid growth since its inception is a function of the depth and breadth of our team and our relationships. Our team is well-positioned to attract institutional investors and source accretive deals given its deep technical, financial, legal, capital markets, deal origination/execution and corporate experience. Versamet's strong and enduring relationships with key corporate shareholders including B2Gold, Equinox, and Sandstorm represent a valuable and sustainable competitive advantage for Versamet. Versamet benefits from its relationship with these corporate shareholders by virtue of their deep industry experience, relationships, and technical expertise. These corporate shareholders also represent a potential source of deal flow in the future and the potential to work together on future acquisitions and accretive growth opportunities. Versamet believes that these relationships are a key competitive advantage as it relates to accessing capital, deal flow, and expertise.

Versamet seeks to become a financial partner of choice for the mining industry through adherence to its core values:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Integrity, honesty and trust are the foundation of every relationship we build and maintain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Flexibility and agility for our people, partners and stakeholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Respect for our people, stakeholders, community and environment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shared success among our people, partners and capital providers.

These values are fundamental to every aspect of our business including every transaction we enter into or relationship we have. We firmly believe that adherence to these core values will lead to stronger relationships, stronger reputation, and brand value, repeat business, and sustainable growth for our stakeholders over the long run.

**Investment Highlights**

**Cash flowing, gold-copper centric portfolio with large-scale optionality**

Our current portfolio of over 25 assets is underpinned by a stable base of cash flow generating interests including the Greenstone Mine, Mercedes, Blackwater, Kiaka and Kolpa complemented by near-term free cash flow growth attributable to assets are currently in construction, such as our Toega asset. Our portfolio is distinguished by its cash flow generation and growth. Versamet's annual revenue for 2024 was approximately US$12 million from two cash flowing assets (Greenstone and Mercedes), equivalent to production of approximately 5,100 GEOs.[<sup>15</sup>](#_ftn15) This cash flow generation provides Versamet with a differentiated ability to continue to pursue accretive investments through the full business cycle and at a much faster pace than would otherwise be possible.

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[<sup>15</sup>](#_ftnref15) Gold Equivalent Ounces for 2024 calculated by dividing total revenue of approximately US$12.0 million by the average realized gold price of US$2,376 per ounce.

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Additionally, our portfolio has been designed to grow organically over time through exposure to potential mine life extensions, exploration success, new mine builds, and throughput expansions. Our portfolio is well balanced with approximately 65% of asset value[<sup>16</sup>](#_ftn16) in our portfolio associated with mines in the cash flowing stage of development. Our portfolio contains optionality via large-scale projects with more than 85% of asset value associated with mines or projects that are being advanced by mining operators with a market capitalization of at least US$1 billion, including Equinox, WAF, Artemis, Glencore, HudBay and SCC.[<sup>17</sup>](#_ftn17)

Our commodity mix is currently tilted toward precious metals and copper assets (approximately 88% of asset value)[<sup>18</sup>](#_ftn18) with complementary exposure to other metals (approximately 12%). Versamet's forecasted revenue in 2026 is expected to be 87% attributable to gold and 13% attributable to copper. We expect to continue to prioritize precious metals, copper, and other diversified metals as the portfolio grows. Our portfolio is also well diversified from a geographical perspective with assets in over 10 different countries on six different continents.

**Differentiated leadership team with proven track record of executing large scale acquisitions** 

Since inception in 2022, Versamet has closed over US$285 million worth of large-scale acquisitions[<sup>19</sup>](#_ftn19) and raised over US$125 million in equity and debt capital to grow the business. Our team possesses a unique mix of technical, operational, financial, legal, capital markets, deal origination/execution, senior leadership, governance, and risk management experience stemming from years of prior senior roles in operations, engineering, mergers & acquisitions, corporate finance, investment banking, legal, accounting, and investor relations/capital raising. Our management team and Board collectively represent a rare collection of deep executive level leadership and company building experience, including prior experience building and growing royalty and streaming companies. Several of our team members were instrumental in founding, growing and ultimately selling Maverix Metals Inc. (a precious metals-focused royalty and streaming company) to Triple Flag Precious Metals for over US$700 million. We believe our experience and time spent focused on the mining industry have allowed us to cultivate strong industry relationships, a global asset knowledge base and extensive experience in structuring mining sector financing transactions. We believe the combination of these factors will provide our team with the ability to continue to originate unique investment opportunities to drive accretive portfolio growth and shareholder returns. The Versamet team already has a proven track record of large-scale, accretive acquisitions and has demonstrated an ability to source deals and grow the portfolio.

Our people are the engine of value creation for Versamet and, we believe, a differentiating competitive advantage. Our team is focused on creating value by: i) sourcing and structuring new royalty, streaming and other growth opportunities including corporate M&A opportunities through our broad network of relationships across the mining, natural resource, and finance sectors; ii) managing risk and maximizing the value of new growth opportunities including corporate M&A opportunities through technical, financial, legal, and commercial diligence, all of which is done in-house with external assistance engaged as needed; iii) building and fostering strategic partnerships which can be a source of capital, deal flow, technical expertise, or partnership on large transactions, iv) guiding the Company through the currently volatile economic environment to ensure Versamet is positioned for success and growth in a variety of economic environments, and v) unlocking value and building scale through acquisitions, supporting organic growth from our current portfolio, growing our capital markets profile, and exploring potential consolidation opportunities with the right partners.

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[<sup>16</sup>](#_ftnref16) Asset value breakdown by stage based on book value of individual assets as a percentage of total book value of assets as of June 30, 2025. See page 46 for a list of assets by stage. Includes Kolpa at assumed book value of US$35 million.

[<sup>17</sup>](#_ftnref17) Asset value breakdown by operator market capitalization based on book value of individual assets as a percentage of total book value of assets as of June 30, 2025. See page 46 for list of assets by operator. Includes Kolpa at assumed book value of US$35 million. Market capitalization data from Capital IQ as of June 30, 2025. Non-public operators assumed to have market cap of less than US$1 billion.

[<sup>18</sup>](#_ftnref18) Asset value breakdown by commodity mix is calculated as the commodity mix for each individual asset weighted by the book value for each asset, respectively, as of June 30, 2025. Includes Kolpa at assumed book value of US$35 million. Commodity mix for each individual asset based on the price assumption for each commodity multiplied by the contained amount (in measured, indicated, and inferred resource categories taken together) of each commodity, respectively, as reported in the latest publicly available resource statement for each individual asset, respectively. Commodity price assumptions as follows: US$2,300/oz gold, US$27/oz silver, US$4.25/lb copper, US$1.20/lb zinc, US$0.95/lb lead, US$20/lb molybdenum.

[<sup>19</sup>](#_ftnref19) Including Kolpa transaction announced April 1, 2025.

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**Differentiated stable of corporate sponsors**

Versamet has deliberately sought to create and foster strong and enduring partnerships to unlock access to capital, increase the flow of investment opportunities, and accelerate growth. We are proud of our strong relationships with several major shareholders including B2Gold, Sandstorm, and Equinox. Through these and other future relationships and partnerships, we seek to continue to build strong partnerships and become a financial partner of choice for the mining industry through adherence to our core values of integrity, honesty and trust; flexibility and agility; respect; and shared success.

![](formdrsaxu003.jpg)

**Building a better future at the core of our business**

At Versamet, our purpose is to provide capital to responsibly produce the resources our world needs to create prosperity, drive economic growth and build a better future.

Our values are integral to the way we operate. We believe integrity, honesty and trust are the foundation of every relationship we build and maintain. We believe that providing flexibility and agility for our people, partners and stakeholders allows us to be more creative and competitive. We believe in respect for our people, stakeholders, community, and environment. We recognize that our long-term success relies upon the shared success of the mining companies with whom we have royalty, streaming or other agreements with (our "**Mining Partners**") and the communities in which our Mining Partners' projects (and our investments) are located. We consider responsible mining practices in all our investments and asset management decisions. And most importantly, we are dedicated to shared success for our people, partners, and capital providers.

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Our people are the engine of value creation for Versamet and, we believe, a differentiating competitive advantage. At Versamet, we are committed to promoting health and safety, well-being, diversity and inclusion, and continuous improvement and development of our employee culture and skillset. We aim to be an equal opportunities employer, offering an attractive environment through promoting excellent learning opportunities and celebrating diversity.

Execution of our strategy in line with our purpose and values is enabled by clear, robust, and effective governance. Our Board has adopted formal Board, Chair and Chief Executive Officer mandates, a Global Code of Ethical Conduct (the "**Code**"), and various proposed committee charters and other policies, which are described in more detail in this Registration Statement and that set out the manner in which we intend to conduct ourselves as an organization.

Our team is strongly aligned with its shareholders through meaningful share ownership at the management level. Both management and the majority of the Board have consistently invested in previous financing rounds to ensure alignment with shareholders and equity ownership.

**Metals royalty and streaming company with high-margin cash flows**

Versamet's royalties, streams, and other interests represent a portfolio of high-margin cash flows diversified by operation, counterparty, jurisdiction, and commodity with no direct exposure to operating costs, sustaining capital expenditure, expansionary capital expenditure, or the operational risk associated with operating mines, projects, and mineral deposits. At the same time, our royalties, streams, and other interests typically maintain exposure to potential mine life extensions, exploration success, new mine builds, and throughput expansions.

Compared to exchange traded funds ("**ETF**") or exchange traded notes, commodity-based derivatives (e.g. futures, swaps), or equities of commodity-based companies, our royalty and other interests model offers a low cost and convenient method to gain commodity exposure. A royalty and streaming company also facilitates greater diversification than is typical for mining companies. Royalty and streaming companies generally hold a portfolio of assets (diversified by metal, mine, jurisdiction, and operator), whereas mining companies generally are dependent on only one or a few key mines.

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| | | | |
|:---|:---|:---|:---|
|  | **Versamet** | **Mining Companies** | **Commodities/ETFs** |
| **Commodity price exposure** | X | X | X |
| **No direct operating cost exposure** | X |  | X |
| **No direct capital cost exposure** | X |  | X |
| **No exploration expenses** | X |  | X |
| **No environmental and closure liabilities** | X |  | X |
| **No mining operations management** | X |  | X |
| **Low single operation concentration** | X |  | X |
| **Throughput expansion upside** | X | X |  |
| **Mine life extension upside** | X | X |  |
| **Exploration success upside** | X | X |  |
| **New mine build upside** | X | X |  |

---

We believe the royalty and streaming model is the best way to gain exposure to metal commodities. An investment in Versamet offers the benefits of the royalty and streaming model combined with a portfolio, executive team, corporate sponsors, and growth strategy that we believe will deliver strong shareholder returns.

**C. Organizational Structure**

We have no subsidiaries.

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**D. Property, Plants and Equipment**

As we are not the operator and generally not the owner of the properties underlying our royalty and streaming interests, we have limited or no access to related exploration, development or operational data or to the properties underlying our royalty and streaming interests. As such, the disclosure herein is based on information publicly disclosed by the owners and operators of such properties. Although we do not have any knowledge that such information may be inaccurate, there can be no assurance that such third-party information is complete or accurate.

For the purposes of SK1300, we currently consider our royalty interest on the Greenstone Mine and our royalty interest on the Kiaka Mine to be our only material properties. SK1300 requires a registrant that has mining operations to, among other things: (i) obtain a dated and signed "technical report summary" from a qualified person with respect to each material mining property; and (ii) file such technical report summary as an exhibit to the relevant registration statement or other prescribed filing with the SEC. Because our assets are comprised of royalty and similar interests, for the purposes of this Registration Statement, we have relied on Item 1302(b)(3)(ii) of SK1300 and have not obtained or filed a technical report summary as: (i) obtaining such report would result in an unreasonable burden or expense; and (ii) we requested such technical report summary from the operators of the projects underlying our material royalty interests and were denied the request.

**Geographic Location of Interests**

The following map sets forth the geographic locations of our royalty and streaming interests as of the date hereof:

![](formdrsaxu004.jpg)

**SUMMARY DISCLOSURE**

The table below classifies projects based upon the definitions set forth in SK1300, utilizing the following classifications:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Production Stage Property** - is a property with material extraction of mineral reserves.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Development Stage Propert**y - is a property that has mineral reserves disclosed pursuant to SK1300, but no material extraction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exploration Stage Property** - is a property that has no mineral reserves disclosed compliant with SK1300.

**Readers are advised that the SK1300 classifications used herein may not be comparable to those utilized by issuers under applicable Canadian and other international requirements or those used in our disclosures prepared under applicable Canadian securities laws or under other international jurisdictions, such as JORC.**

**Access to Information**

Versamet does not own or operate the assets and does not have access to information outside of what is publicly disclosed by Equinox and provided to Versamet to calculate monthly gold deliveries. Some items that Versamet lacks access include daily, weekly, monthly operational data, internal reports and estimates, drill hole and assay data bases, topographic surveys, detailed cost reporting, permitting discussions, mineral resource and mineral reserve estimates that are compliant with SK1300, regulatory activities, production forecasts and others. We are unable to obtain such information from the operators of the projects underlying our material royalty interests as they will not comply with the request or obtaining such information would result in an unreasonable burden or expense.

Accordingly, the summary property disclosures contained herein are provided in accordance with Sections 1303(a)(3) of SK1300 which provide that a registrant with a stream, royalty or other similar right may omit certain information required by the summary property disclosure requirements if the registrant specifies the information to which it lacks access, explains the reason it lacks the required information and provides all required information that it does possess or which it can acquire without incurring an unreasonable burden or expense.

The following table sets forth summary information regarding our portfolio of royalty and streaming interest:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Project<br>Name and<br>Metals**  | &nbsp;&nbsp; **Operator<br>and<br>Jurisdiction<br>of Property** | &nbsp;&nbsp; **Interest** | &nbsp;&nbsp; **SK1300<br>Project<br>Stage** | &nbsp;&nbsp; **Mine Types and Mineralization Styles**  | &nbsp;&nbsp; **Process Plant<br>and other<br>available<br>facilities** |
| &nbsp;&nbsp; Greenstone (Au) | &nbsp;&nbsp; Equinox Gold Corp.<br> (Canada)<sup>1</sup> | &nbsp;&nbsp; 1.26% Stream | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Open pit mine, mesothermal deposit, mineralization in quartz-iron carbonate veins, irregular masses of gold-bearing pyrite and arsenopyrite in iron formations, feldspar rich porphyry and thin, irregular veinlets of iron sulphide. | &nbsp;&nbsp; Dedicated gold processing plant |
| &nbsp;&nbsp; Mercedes (Au, Ag) | &nbsp;&nbsp; Bear Creek Mining Corp.<br> (Mexico) | &nbsp;&nbsp; 2.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Underground mine, epithermal deposit, mineralization in zones of veins, stockwork and breccias. | &nbsp;&nbsp; Dedicated gold and silver processing plant |
| &nbsp;&nbsp; Kolpa (Cu) | &nbsp;&nbsp; Endeavour Silver Corp.<br> (Peru)<sup>2</sup> | &nbsp;&nbsp; 95.8% Stream | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Underground and open pit mine, epithermal deposit, mineralization in multiple veins comprised of pyrite, sphalerite, galena, argentiferous galena, chalcopyrite and gray coppers. | &nbsp;&nbsp; Dedicated polymetallic processing plant |
| &nbsp;&nbsp; Blackwater (Au) | &nbsp;&nbsp; Artemis Gold Inc. (Canada) | &nbsp;&nbsp; 0.21% NSR<sup>3</sup> | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Open pit mine, epithermal deposit, mineralization in stockwork-veined and disseminated sulphides. | &nbsp;&nbsp; Dedicated gold processing plant |

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- 56 - <br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Project<br>Name and<br>Metals**  | &nbsp;&nbsp; **Operator<br>and<br>Jurisdiction<br>of Property** | &nbsp;&nbsp; **Interest** | &nbsp;&nbsp; **SK1300<br>Project<br>Stage** | &nbsp;&nbsp; **Mine Types and Mineralization Styles**  | &nbsp;&nbsp; **Process Plant<br>and other<br>available<br>facilities** |
| &nbsp;&nbsp; Kiaka (Au) | &nbsp;&nbsp; West African Resources <br>(Burkina Faso) | &nbsp;&nbsp; 2.7% NSR<sup>4</sup> | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Open pit mine, mineralization in disseminated and vein styles. | &nbsp;&nbsp; Dedicated gold processing plant |
| &nbsp;&nbsp; Toega (Au) | &nbsp;&nbsp; West African Resources<br> (Burkina Faso)<sup>5</sup> | &nbsp;&nbsp; 2.7% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Mineralization in sulphide, quartz veins, planned as an open pit mine. | &nbsp;&nbsp; Satellite deposit to Sanbrado, which has dedicated gold processing plant |
| &nbsp;&nbsp; Vittangi (Graphite) | &nbsp;&nbsp; Talga Group Ltd. (Sweden) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Mineralization in sub-vertical, lithologically continuous units of fine-grained graphite, planned as an open pit mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Converse (Au, Ag) | &nbsp;&nbsp; Waterton Global Resource Management (USA) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Mineralization occurs as skarn deposits and disseminated. Planned as an open pit mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Cuiu Cuiu (Au) | &nbsp;&nbsp; Cabral Gold Inc. (Brazil) | &nbsp;&nbsp; 1.5% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Mineralization in stockwork/sheeted veinlet systems within altered shear zones. Planned as an open pi mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; El Pilar (Cu) | &nbsp;&nbsp; Southern Copper Corp.<br> (Mexico)<sup>6</sup> | &nbsp;&nbsp; 1.0% GRR | &nbsp;&nbsp; Development Stage | &nbsp;&nbsp; Copper oxide mineralization, proposed open pit mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Hackett River (Zn, Ag, Cu, Pb, Au) | &nbsp;&nbsp; Glencore Canada Corp.<br> (Canada) | &nbsp;&nbsp; 2.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Sulphide mineralization occurs in tabular semi-massive to massive lenses. Planned as an open pit mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Mason (Cu, Au, Mo, Ag) | &nbsp;&nbsp; Hudbay Minerals Inc.<br> (USA) | &nbsp;&nbsp; 0.4% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Large tonnage copper-molybdenum porphyry. Planned as an open pit mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Pilar (Au) | &nbsp;&nbsp; Pilar Gold Inc. (Brazil) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Mineralization in narrow fault and fill veins, underground mine. | &nbsp;&nbsp; Dedicated gold processing plant in care and maintenance |
| &nbsp;&nbsp; Prairie Creek (Zn, Pb, Ag) | &nbsp;&nbsp; NorZinc Ltd. (Canada) | &nbsp;&nbsp; 1.2% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Mineralization primarily in quartz veins, along with stratabound and stockwork. Planned as an open pit mine. | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Adi Dairo (Cu, Zn, Au) | &nbsp;&nbsp; Sun Peak Metals Corp.<br> (Ethiopia) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential VMS deposits | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Ajax (Cu, Au, Ag) | &nbsp;&nbsp; KGHM/Abacus Mining & Exploration Co (Canada) | &nbsp;&nbsp; 1.5% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential copper-gold porphyry | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Bobosso (Au) | &nbsp;&nbsp; Montage Gold Corp.<br> (Cote d'Ivoire) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential orogenic gold | &nbsp;&nbsp; None, requires construction |

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- 57 - <br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Project<br>Name and<br>Metals**  | &nbsp;&nbsp; **Operator<br>and<br>Jurisdiction<br>of Property** | &nbsp;&nbsp; **Interest** | &nbsp;&nbsp; **SK1300<br>Project<br>Stage** | &nbsp;&nbsp; **Mine Types and Mineralization Styles**  | &nbsp;&nbsp; **Process Plant<br>and other<br>available<br>facilities** |
| &nbsp;&nbsp; Del Norte (Au, Ag) | &nbsp;&nbsp; Teuton Resources Corp. (Canada) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential gold veins and gold-bearing massive sulphides | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Golden Sidewalk (Au) | &nbsp;&nbsp; Prosper Gold Corp. (Canada) | &nbsp;&nbsp; 2.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential gold veins and gold-bearing massive sulphides | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Midas (Au, Ag) | &nbsp;&nbsp; Teuton Resources Corp.<br> (Canada) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential gold veins and gold-bearing massive sulphides | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Mocoa (Cu, Mo) | &nbsp;&nbsp; Libero Copper (Colombia) | &nbsp;&nbsp; 2.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Large scale copper porphyry | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Nefasit (Cu, Zn, Au) | &nbsp;&nbsp; Sun Peak Metals Corp.<br> (Ethiopia) | &nbsp;&nbsp; 1.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential VMS gossans | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Pacaska (Au, Cu) | &nbsp;&nbsp; Pucara Gold Ltd. (Peru) | &nbsp;&nbsp; 0.5% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential gold-copper porphyry | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Primavera (Au, Cu) | &nbsp;&nbsp; Calibre Mining Corp.<br> (Nicargua) | &nbsp;&nbsp; 1.5% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Gold-copper porphyry | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Wiluna (Uranium) | &nbsp;&nbsp; Toro Energy Ltd. (Australia) | &nbsp;&nbsp; 2.0% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Potential uranium oxide mineralization | &nbsp;&nbsp; None, requires construction |
| &nbsp;&nbsp; Zuun Mod (Mo, Cu) | &nbsp;&nbsp; Erdene Resource Development Corp.<br> (Mongolia) | &nbsp;&nbsp; 1.5% NSR | &nbsp;&nbsp; Exploration Stage | &nbsp;&nbsp; Large scale moly porphyry | &nbsp;&nbsp; None, requires construction |

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Notes:

<sup>(1)</sup> Greater of (i) 1.26% of monthly production at Greenstone Mine (100%); or (ii) 350 koz AU, until 63,000 Au have been delivered; gold deliveries subject to per-ounce payments equal to 20% of the prevailing spot gold price at time of delivery.

<sup>(2)</sup> Greater of (i) 95.8% of produced copper and (ii) 0.03 tonnes of cooper per tonne of produced lead until 6,000 tonnes of cooper delivered; 71.85% of produced cooper until 10,500 tonnes of copper delivered; 47.9% of produced copper thereafter; copper deliveries subject to payments equal to 10% of spot price.

<sup>(3)</sup> 0.21% net smelter returns royalty applicable to approximately 35-50% of production (Versamet management estimate).

<sup>(4)</sup> 2.7% NSR royalty (100% basis) until royalty payments total US$22.5 million; 0.45% NSR royalty thereafter until 1.5 Moz produced.

<sup>(5)</sup> 2.7% NSR royalty (100% basis) until 2.5 Moz Au produced; 0.45% NSR royalty on the next 1.5 Moz Au.

<sup>(6)</sup> 1.0% gross revenue royalty excluded first 85 of payable copper production.

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**Title, Mineral Rights, Leases or Options and Acreage Involved**

The titles, mineral rights, leases, and options involved with our royalty and streaming interests vary depending on the country and include exploitation concessions, unpatented and patented claims, fee lands, mining leases and prospecting and mining licenses. We have an indeterminable number of acres relating to our royalty and streaming interests because our interests do not always cover 100% of each property. See " - Material Property", below, for information about the specific titles, mineral rights, leases, options and acreages involved at our material properties.

**Key Permit Conditions** 

Operators of the mines that are subject to our royalty and streaming interests must comply with environmental, mine safety, land use, waste disposal, remediation and public health laws and regulations promulgated by federal, state, provincial and local governments in the countries where we hold interests. Although we, as a royalty or streaming interest owner, are not responsible for ensuring compliance with these laws and regulations, failure by the operators to comply with applicable laws, regulations and permits can result in injunctive action, orders to suspend or cease operations, damages, and civil and criminal penalties against the operators, which could have a material adverse effect on our results of operations and financial condition.

In general, we have no decision-making authority regarding the development or operation of the mineral properties underlying our royalty and streaming interests. Operators make all development and operating decisions, including decisions about permitting, feasibility analysis, mine design and operation, processing, plant and equipment matters, and temporary or permanent suspension of operations.

**Mineral Resources and Mineral Reserves**

Certain of the owners and operators of the projects underlying our interests have prepared and disclosed mineral resources and mineral reserve estimates which have been estimated with the CIM Definition Standards and NI 43-101 and JORC. In certain cases, SK1300 allows disclosure of such mineral resources and mineral reserves only where we or the owner or operator have prepared and filed a SK1300 technical report summary with the SEC.

Section 1303(a)(3) of SK1300 provides that a registrant with a stream, royalty or other similar right may omit certain information required by the summary disclosure requirements if the registrant specifies the information to which it lacks access, explains the reason it lacks the required information and provides all required information that it does possess or which it can acquire without incurring an unreasonable burden or expense. As a result of the relief provided to royalty holders under SK1300, the disclosure contained herein does not include estimates of mineral resources or mineral reserves that have been prepared by the owners and operators of the projects underlying our interests, where such estimates are not contained in an SK1300 technical report summary.

There is only one project that has a publicly available SK1300 technical report summary, which is presented below:

SK1300 Mineral Resource and Reserve Estimate for the El Pilar project in Sonora, Mexico, owned by Southern Copper Corp.

![](formdrsaxu005.jpg)

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![](formdrsaxu006.jpg)

**MATERIAL PROPERTIES**

The following is a description of our royalty interests on portions of the Greenstone Mine and Kiaka Mine.

Certain information regarding the Greenstone Mine and Kiaka Mine as contemplated under the SK1300 has not been included herein on the basis that it is unavailable to us in our capacity as a royalty holder on the applicable properties and that obtaining such information would result in an unreasonable burden and expense. Such excluded information includes: (a) mineral resources and mineral reserves estimates disclosed in accordance with SK1300, including material assumptions relating to modifying factors; (b) the total cost for or book value of the underlying property and its associated plant and equipment; and (c) descriptions of significant encumbrances on the property.

**GREENSTONE MINE TECHNICAL INFORMATION**

One of Versamet's flagship assets is the Greenstone Gold Interest "**Greenstone GPA**" on the Greenstone Mine which is owned 100% by Equinox (the "**Greenstone Mine**" or "**Greenstone**"). The Greenstone GPA entitles Versamet to monthly deliveries of gold equal to the greater of: (a) 350 gold ounces, and (b) gold ounces equal to 1.26% of the monthly gold production from the Greenstone Mine at a purchase price per ounce of gold equal to 20% of the then prevailing market price, until a maximum of 63,000 ounces have been delivered under the agreement. The delivery obligation commenced in November 2023. The gold deliverable under the Greenstone Gold Interest may be sourced from any of Equinox's operating mines. Under the Greenstone GPA, Equinox retains the Greenstone Buydown Option that gives Equinox the option to buy-down deliveries related to up to 75% of the original delivery obligation at the then current spot gold price, subject to a minimum gold price per ounce of US$2,000. As of the end of June 30, 2025, Versamet has received 7,000 ounces, with 56,000 ounces outstanding for delivery.

**Sources of Information**

The following information is sourced from Equinox's disclosure filed under Equinox's SEDAR+ profile, including, but not limited to the 2024 Annual Information Form and the Greenstone 2024 NI 43-101 Technical Report.

Versamet does not own or operate the asset and does not have access to information outside of what is publicly disclosed by Equinox and provided to Versamet to calculate monthly gold deliveries. Some items that Versamet lacks access include daily, weekly, monthly operational data, internal reports and estimates, drill hole and assay data bases, topographic surveys, detailed cost reporting, permitting discussions, regulatory activities, production forecasts and others.

**Location**

The Greenstone Mine is approximately 275 km northeast of Thunder Bay, Ontario, and approximately 4km south of the town of Geraldton, Ontario. Thunder Bay has a population of around 110,000 and provides support services, equipment and skilled labor for mineral exploration and the mining industry. Rail, national highway, port and international airport services are also available in Thunder Bay, with the national highway and rail passing near the Greenstone Mine. Geraldton has a population of approximately 1,900 and provides support services such as food and lodging. The approximate coordinates of the geographic centre of the Greenstone Mine's deposit areas are 49°40'47"N and 86°56'32"W (UTM Zone 16N coordinates: 504175.9E and 5503024N; NAD 83).

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![](formdrsaxu007.jpg)

**Property Description**

The Greenstone property (the "**Greenstone Property**") is located in Ontario's Thunder Bay Mining Division. The Greenstone Mine, formerly known as the Hardrock project, includes three blocks of claims known as the Hardrock, Brookbank and Viper areas, which are spread over a distance of more than 100 km and are in close proximity to the Trans-Canada Highway between the towns of Beardmore and Longlac, Ontario. The Hardrock claim group includes the Hardrock, Key Lake and Kailey Deposits. The Brookbank claim group hosts the Brookbank, Cherbourg and Foxear targets. The Greenstone Mine is in the southeast portion of the Hardrock claim group.

The Greenstone Mine consists of a contiguous block of cell claims, patented claims, mining leases and licences of occupation, covering 39,072.1 ha, of which 15,862.7 ha relates to Greenstone Mine claims. All claims, leases and licences of occupation are beneficially held by Greenstone Gold Mines GP Inc. ("**GGM**"), subject to terms under several agreements. A leasehold patent of mining rights, surface rights, or both mining rights and surface rights, is a conveyance or grant of possession of land for a set length of time, and usually subject to rent payments. The Greenstone Mine is accessible year-round via paved roads from Geraldton or Highway 11.

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**Royalties and Streams**

The following royalties are in effect on some of the properties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Essar Steel Algoma Inc. (2% NSR royalty);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Griffin Mining Limited (1% NSR);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franco-Nevada (3% NSR);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franco-Nevada (3% NSR) / Essar Steel Algoma Inc. (5% Net Profit Interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Placer Dome Inc. (2.25% NSR / Key Lake Exploration 2% NSR);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unique Broadband Systems (3% NSR); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Argonaut Gold Inc. (3% NSR).

In October 2018, a mining lease was granted over CLM 535, which covers the southern part of the Greenstone Mine area. The lease, LEA-109765, is subject to renewal in 2039. In December 2016, GGM acquired the surface rights for the patented claims in Errington and Ashmore townships - TB 10604 to TB 10608, TB 11879, TB 11885, TB 11886, and TB 11888.

On May 13, 2024, Equinox announced that Equinox had completed its acquisition of the remaining 40% of GGM from certain funds managed by Orion Mine Finance LP, giving Equinox 100% ownership of GGM and the Greenstone Mine (the "**Greenstone Acquisition**").

As part of the Greenstone Acquisition, Equinox assumed obligations under a stream agreement with Nomad Royalty Company Ltd., dated October 28, 2021, as amended ("**Stream Agreement"**). Under the Stream Agreement, Equinox is required to deliver an amount of refined gold equal to 2.375% of the gold produced from Greenstone, until Equinox has delivered a cumulative total of 120,333 ounces, and 1.583% of the gold production from Greenstone thereafter. In exchange for the gold deliveries, Equinox will receive consideration equal to 20% of the spot gold price at the time of delivery.

**History and Exploration**

There are several past producing gold mines on the Greenstone Property, including the Hardrock, MacLeod-Cockshutt, Mosher (all later combined as the consolidated Mosher), Little Long Lac, Bankfield, Jellicoe and Magnet mines which operated between 1934 to 1970.

In 2007, Premier Gold Mines Limited ("**Premier**") began assembling the current property. The results of 1,629 drill holes were included in the 2016 feasibility study. A detailed chronological summary of the historical post-production work carried out on these mines since Premier's acquisition is provided in Table 1.

***Table 1: Summary of Post-Production Exploration Activity since Acquisition by Premier***

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| | | | |
|:---|:---|:---|:---|
|  **Year** | **Company** | **Activity** | **Comments<sup>(1)</sup>** |
| 2009 | Premier Gold Mines Limited | Diamond drilling (346 DDH = 91,802 m); overburden stripping with power washing, mapping and sampling | Diamond drilling program focused on the North Iron Formation area, Porphyry Hill area and East Pit Area; two areas were stripped (GP Zone and TAZ Zone) |

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- 62 - <br>

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| | | | |
|:---|:---|:---|:---|
|  **Year** | **Company** | **Activity** | **Comments<sup>(1)</sup>** |
| 2010 | Premier Gold Mines Limited | Diamond drilling (279 DDH = 114,611 m); overburden stripping with power washing, mapping, and sampling; regional prospecting program | Three areas were stripped (East MacLeod, Headframe, and Portal Zones); diamond drilling focused on the same area as in 2009; main zones drilled were North, F, SP, NN, and K Discovery of the F2 and Z zones; new MRE and a supporting NI 43-101 technical report |
| 2011 | Premier Gold Mines Limited | Diamond drilling (204 DDH = 107,413 m) | Diamond drilling program resulting in the expansion of the SP, F, P and K zones; discovery of the Tenacity South Zone; updated MRE and a supporting NI 43-101 technical report |
| 2012 | Premier Gold Mines Limited | Diamond drilling (125 DDH = 68,549 m) | Diamond drilling program focused on the Fortune, HGN and P Zones; updated MRE and supporting NI 43-101 technical report |
|  2012/13 | Premier Gold Mines Limited | Diamond drilling (153 DDH = 72,776.4 m) (from Oct. 31, 2012 to Aug. 9, 2013) (144 DDH = 66,606.7 m) (from Aug. 10, 2013, to Dec. 31, 2013) | Updated MRE and supporting NI 43-101 technical report |
| 2014 | Premier Gold Mines Limited | Preliminary economic assessment | Using the consistent gold price of $1,250/oz and an exchange rate of CAD/USD 1.00:0.95, the Hardrock project generates an NPV of C$518.70 million (discounted at 5%) and an IRR of 23.02% before taxes; and C$358.97 million (discounted at 5%) and an IRR of 19.02% after taxes. |
| 2014 | Premier Gold Mines Limited | 38 DDH = 12,653,6 m) (from Jan. 01, 2014 to May 26, 2014) | Updated MRE and supporting NI 43-101 Technical Report |
| 2015 | Premier Gold Mines Limited | New NI 43-101 technical report | Formation of a 50/50 Partnership |
| 2016 | Premier Gold Mines Limited | Updated MRE and supporting NI 43-101 technical report | Feasibility Study |
| 2018 | Premier Gold Mines Limited | Updated MRE (not published) | RC Drilling 405 holes = 19,995 m, blasthole drilling 62 holes = 535 m |
| 2019 | Premier Gold Mines Limited | Resource update and project design work | Drilling 76 RC holes = 5,946 m, 54 DDH = 12,108 m |
| 2022 | Greenstone Gold Mines GP Inc. | RCGC Drilling 67 holes = 4,189 m, 56 DDH = 15,421 m | Internal Resource update (not published) |
| 2023 | Greenstone Gold Mines GP Inc. | As and S reviewed and creation of updated block models for these 2 attributes | Internal Block Models Updates (not published) |
|  Sep 2022 to Jun 2024 | Greenstone Gold Mines GP Inc. | RCGC: drilling 496 holes = 28,002 m | Data not used for the 2024 Mineral Resource update. |
| 2024 | Greenstone Gold Mines GP Inc. | Update gold prices, optimisation parameters and resource shells | Updated MRE and NI 43-101 Technical Report |

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<sup>(1)</sup> Unless specifically indicated as reported in a NI 43-101 technical report, all "resources" listed in the table are historical in nature and should not be relied upon. It is unlikely they conform to current SK1300, NI 43-101 criteria or to CIM Definition Standards for Mineral Resources and Mineral Reserves dated May 19, 2014 (the "**CIM Definitions**"), and they have not been verified to determine their relevance or reliability. They are included in this section for illustrative purposes only and should not be disclosed out of context.

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**Geological Setting, Mineralization and Deposit Types**

**Geology**

The Greenstone Mine lies within the granite-greenstone Wabigoon Subprovince of the Archean Superior Craton in eastern Canada. The Wabigoon Subprovince, averaging 100 km wide, is exposed for some 900 km eastward from Manitoba and Minnesota, beneath the Mesoproterozoic cover of the Nipigon Embayment, to the Phanerozoic cover of the James Bay Lowlands. The Wabigoon Subprovince can be subdivided into western greenstone-rich domains in the Lake of the Woods-Savant Lake and Rainy Lake Areas, a central dominantly plutonic domain, and an eastern greenstone-rich domain in the Beardmore-Geraldton Area.

The Hardrock property is located within the Beardmore-Geraldton Greenstone Belt that contains several narrow, east-west striking sequences of volcanic and sedimentary rocks of Archean age. The southern edges of these sequences are spatially related to the through-going, major structural discontinuities thought to be thrust faults that have imbricated the sedimentary sequences. In the Geraldton area, most of the gold mines and a number of gold showings occur within or proximal to the Bankfield-Tombill Deformation Zone (also known as the Barton Bay Deformation Zone), a zone of folding and shearing up to 1 km wide. The southern limit of the Bankfield-Tombill Deformation Zone is marked by the Bankfield-Tombill Fault, a zone of intense shearing up to 12 m wide.

In the immediate Geraldton area, the dominant rock types are clastic sediments (greywacke and arenite), oxide BIF and minor mafic metavolcanics. There are a number of younger intrusives, including an albite-rich porphyry unit that is spatially associated with much of the gold mineralization on the Hardrock, MacLeod-Cockshutt and Mosher mines. Significant gold mineralization is also often spatially associated with BIF. In the case of the Little Long Lac mine, gold mineralization is primarily hosted by an arkosic unit.

Gold mineralization occurs in a variety of host rocks and the style of mineralization is partly a function of the host rock. While the location and overall orientation of the orebodies appear to have been largely structurally controlled, the deformation of the orebodies has not been as intense as that of the host rocks. Nevertheless, there are areas where local folding and boudinage of mineralized veins is apparent. Additionally, there are strong secondary controls that influence the extent and intensity of gold mineralization, such as the competency contrast between host rocks (e.g., the Hardrock Porphyry and its contacts with either wacke or BIF) and the chemical character of the host rocks (e.g., oxide facies BIF being replaced by sulphides).

Intrusive rocks include the Hardrock Porphyry, diorite, gabbro, and diabase dykes. It is of interest that the Hardrock Porphyry seems to be sill-like in nature, even though it is tightly folded and the contacts between it and the sedimentary units are often highly deformed. The general scale and folding pattern of the porphyry very closely match the geometry of the conglomerate unit that occurs in the vicinity of the Hardrock and MacLeod-Cockshutt Mines.

**Mineralization**

Most mineralized occurrences in the Hardrock deposit area lie in a zone of deformation to the immediate north of, and genetically linked to, the Tombill-Bankfield Deformation Zone. This zone of deformation varies from 600 m to 100 m in total width, while the crush zone of the Tombill-Bankfield Fault proper ranges from metres to hundreds of metres in width. Gold mineralization is associated with D3 brittle shear zones and folds overprinting regional F2 folds. The plunge of the mineralized zones is parallel to F3 fold axes and to the intersection of D3 shear zones with F2 and F3 folds. On a sub province scale, regional folds cut by D3 dextral shear zones are promising targets for discovering the next generation of large gold deposits.

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The interpretation of the mineralized zones by GMS is based on a litho-structural model developed by InnovExplo, but greatly simplifies the domains. As compared to the 2016 feasibility block model, some wide domains that encompassed significant amounts of internal dilution have been re- interpreted, such that higher-grade portions have been made more distinct. In the updated model, lithological domains and mineralized zones are located inside three areas.

The North Domain consists of a refolded (F3 overprinting F2) sequence of BIF and greywacke, with minor porphyry and gabbros. A Central Domain consisting mainly of an undifferentiated greywacke sequence and a mineralized portion of this greywacke, defined as the Mineralized Central Wacke, which are both likely sheared and folded. Three mineralized zones have been defined within the Central Domain to constrain zones of higher-grade gold mineralization inside the Mineralized Central Wacke. A South Domain is characterized by a tightly folded (F2) stratigraphic sequence. Five mineralized zones have been defined within the South Domain, in which gold mineralization appears primarily associated with the "main" anticline (Hardrock Anticline) and preferentially within both BIFs.

Zones which are categorized as quartz-carbonate stringer mineralization include F Zone, F2 Zone, A Zone, SP Zone, Central Zone and Tenacity Zone. Mineralization within these zones generally consists of a series of narrow, tightly asymmetrically folded gold-bearing quartz-carbonate stringers, which are usually attenuated, transposed and dislocated in hook-like segments. The stringers are accompanied by a gold-bearing quartz-sericite-pyrite (±arsenopyrite) alteration halo about the stringers. It is the accumulation of a number of stringers and associated alteration halos that constitutes the zones. Individual stringers and their associated alteration haloes within the mineralized zones are often high-grade with minute flecks and clusters of visible gold. Assay results of up to, and often greater than, 30 g/t Au are attainable from some stringers. Overall, zones having average grades of 4 g/t Au as individual stringers are too narrow and discontinuous to consider mining as separate higher-grade zones.

Zones that are categorized as sulphide replacement mineralization include the North 1, North 2 and North 3 zones, and the SP Zone. The nature of the mineralization within these zones is best understood from the historical work completed on the North 1 Zone. Mineralization within these zones occurs as variable pyrite, arsenopyrite and pyrrhotite replacement of iron oxide at the margins of quartz veins, within the hinge zones of folded BIFs. The auriferous sulphide replacement appears to have migrated outwards along the iron oxide bands from gold-bearing quartz-carbonate stringers occupying brittle axial planar tension fractures. This replacement mineralization yields grades of 7 g/t Au or greater.

**Deposit Types**

The gold ore bodies at the Greenstone Mine are one of the type examples for BIF-hosted gold deposits. The Greenstone Mine recognizes and presents the following subtypes: non-stratiform deposits and Greenstone-hosted quartz-carbonate vein deposits.

**Drilling**

**Over 2,778 drill holes of various core sizes have been drilled since 1987, with 2,516 holes existing in the drill hole data base, with a total length of 770,893m and 492,110 assays.**

**Sampling, Analysis and Data Verification**

**Laboratories**

The Geraldton facility belonging to Activation Laboratories Ltd ("**Actlabs Geraldton**") was used for the entire drilling and channelling programs. Actlabs Geraldton has received ISO 9001:2008 certification through Kiwa International Cert GmbH. Actlabs Geraldton was an independent commercial laboratory. GGM purchased the Geraldton facility from Actlabs Geraldton in March 2024 and has been operating it since.

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All re-assaying of batches (pulps) was undertaken at Australian Laboratory Services ("**ALS**") - Chemex in Thunder Bay. ALS-Chemex laboratory is part of the ALS Global Group and has ISO 9001 certification and ISO/IEC 17025 accreditation through the Standards Council of Canada. ALS-Chemex is an independent commercial laboratory.

**Quality Control Sample Preparation by GGM**

All QA/QC samples are prepared and bagged in advance by GGM personnel. The GGM employee in the core-cutting facilities places one half of the ticket into a bag with the sample and staples the other half to the box. One half of each QC sample ticket is placed in the appropriate type of control sample bag, which was prepared beforehand. A list of QC samples and their numbers/locations is posted on the wall in the core logging facility (core shack) and regularly updated by GGM personnel. Five to seven samples are placed in a rice bag and the contents identified on the outside of the bag. Each bag and its contents are recorded on a notepad and placed in a plastic holder once complete. These slips are picked up each morning by a GGM employee and recorded in an Excel spreadsheet. Once the batches are complete, GGM personnel deliver the bags to Actlabs Geraldton; no third party is involved in transportation.

Samples selected for analysis are sent in batches of 34. Each purchase order covers one batch of 34 samples, consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 30 regular samples

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1 field duplicate sample

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1 field blank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1 CRM with a low gold value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1 CRM with a high gold value

As a QC check, Actlabs Geraldton adds a 35th sample to every field batch received - a coarse duplicate of the last regular sample (i.e. the 30th sample), constituting a second pulp prepared from the reject. The quality of the reject is monitored to ensure that proper preparation procedures are used during crushing. For the fusion process, Actlabs Geraldton adds seven more QC samples (two analytical blanks, two CRMs and three pulp duplicates), bringing the fusible batch to 42. The pulp duplicates are necessary to ensure that proper preparation procedures are used during pulverization.

At Actlabs Geraldton, the maximum furnace charge of 42 samples ensures that GGM samples are not mixed with others.

**Data Verification**

A new drilling database export was supplied to GMS on March 23, 2022. The previous database used by GMS was a patchwork of the original 2016 drilling database along with two subsequent drilling campaigns (separated into RC and DDH databases) which became cumbersome and difficult to work with. QC results were reviewed pertaining to the winter 2021-2022 drilling campaign with GGM geologists on site; no material issues were found. Any QC failures resulted in the reanalysis of the batch according to the GGM internal QC protocols.

**Mineral Processing and Metallurgical Testing**

The process design criteria have been established based on test work results, GGM and vendor recommendations or requirements and industry practices.

Between 2011 and 2013, mineralogy, grindability, and gold recovery test work was performed by SGS Lakefield Research Limited ("**SGS Lakefield*****"***) and McClelland Laboratories Inc. ("**McClelland***"*). The SGS Lakefield test work showed that the ore is composed mainly of quartz and plagioclase with minor amounts of pyrite and arsenopyrite; gold occurs mainly as native gold; the ore is in the category of medium hardness to moderately hard; a portion of the gold can be recovered by gravity concentration; and gold can be recovered to a bulk flotation concentrate. The subsequent McClelland test work showed that gold recovery increased with finer grind size and was unaffected by cyanide concentration.

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During the March 2014 preliminary economic assessment and 2016 feasibility study, additional test work was carried out by SGS Lakefield, JKTech Pty Ltd. and FLSmidth. Primarily, HPGR tests confirmed the ore amenability for high-pressure grinding, and facilitated equipment selection and operating cost estimation. Grindability, head grade determination, mineralogy, magnetic separation, gravity recovery, flotation, cyanidation, cyanide destruction, solid-liquid separation, and other tests were completed. Additional thickening and rheology test work was carried out to determine the sizing and operating parameters of a pre-leach thickener.

The HPGR testing program included laboratory-scale tests to determine the amenability of the ore to HPGR milling and yield preliminary sizing data; abrasion tests to predict the service life of the rolls; and a large-scale pilot-plant test to size the equipment. Bond grindability testing was performed to evaluate the Ball Work Index reduction of the HPGR product compared to the feed. A detailed comminution trade off study recommended two-stage crushing followed by HPGR and ball milling over crushing followed by semi-autogenous milling and ball milling, to reduce throughput risk and increase energy efficiency.

In the detailed engineering phase, additional leach test work was carried out on near-surface samples from the 2018 drilling campaign to characterize gold recovery, oxygen consumption, solid-liquid separation, and rheology.

A multivariate linear regression analysis was used to estimate gold recovery based on ore grade and mineralogical composition. The results of the cyanidation tests conducted on composites were used as the basis for the analysis. The residual gold grade from the cyanidation test work was found to be highly correlated to the gold, arsenic, and sulphur head sample grades, and somewhat less on grind size. The gold recovery process consists of a crushing circuit (gyratory and cone), a grinding circuit (HPGR and ball mill), pre-leach thickening and cyanide leaching, a CIP circuit, carbon elution and regeneration, electrowinning and gold refining, cyanide destruction and tailings disposal. The plant is designed to operate at a throughput of 27,000 t/d. The process operation schedule is 24 hours per day, 365 days per year, with an overall availability of 92%.

**Mineral Resource and Mineral Reserve Estimates**

**Mineral Resource Estimates**

Mineral Resources have been prepared under NI 43-101 reporting regime and are not compliant in accordance with Item 1300 of Regulation S-K. Reporting of mineral resources is omitted as per Section 1304(a)(2) of SK1300.

**Mineral Reserve Estimate**

Mineral Reserves have been prepared under NI 43-101 reporting regime and are not compliant in accordance with Item 1300 of Regulation S-K. Reporting of mineral reserves is omitted as per Section 1304(a)(2) of SK1300.

**Mining Operations**

Mining is being carried out using conventional open pit techniques with 10 m benches. An Owner-mined operation is in place, with hydraulic shovels and mining trucks, including outsourcing of certain support activities such as explosives manufacturing and blasting.

Production drilling of the 10 m benches is performed by blasthole drill rigs with both rotary and down-the-hole drilling capability. Blastholes are loaded with bulk emulsion. The majority of the loading in the pit is carried out by two 29 m3 hydraulic face shovels, one 15m<sup>3</sup> hydraulic excavator, and one 30 m<sup>3</sup> front-end wheel loader. Haulage is performed with a combination of 224-tonne (Caterpillar 793-08) and 216-tonne (Caterpillar 793F) mine haul trucks. The presence of historical underground stopes was considered when designing the pit, mainly for the voids in the F Zone. Most of the other underground openings are backfilled with sand fill or rock fill.

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Mining of the Hardrock pit will occur in five main phases. Waste rock will be disposed of in four distinct waste dumps with three located around the pit and one further to the south. The open pit generates 788.6 Mt of overburden and waste rock (inclusive of historical tailings and underground backfill) over the LOM for an average LOM strip ratio of 5.5:1.

The LOM plan provides 15 years of mine production (from the third quarter of 2024 to the second quarter of 2039). Annual mine material movement peaks at 72 Mt in 2025 and is maintained for 10 years until 2034. Material movement gradually declines from 2035 until the end of the mine life in 2039. The maximum processing plant production targets 27,000 t/d (9.86 Mt/a), which is achieved in 2025 and is sustained until 2038.

**Processing and Recovery Operations**

The plant is expected to ramp up to the nameplate capacity of 27,000 t/d. The grinding circuit includes an HPGR, two identical ball mills and two identical gravity concentrators. The mill operation schedule is 24 h/d, 365 d/a with an overall availability of 92%. Crushing plant and processing plant equipment design factors allow for a margin of error in the sizing of the equipment. The key general process design criteria are presented in Table 4.

***Table 4: Key General Process Design Criteria***

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| | | |
|:---|:---|:---|
| **Parameter** | **Units** | **Value** |
| Throughput - Design | t/a | 9855000 |
| Throughput - Design | t/d | 27000 |
| Throughput - Design | t/h | 1223 |
| Design Grind Size (P80) | µm | 90 |
| Crusher Utilization | % | 67 |
| Process Plant Availability | % | 92 |
| Operating Time | d/a | 365 |
| Operating Time - Concentrator | h/d | 24 |
| Au Feed Grade - Average | g/t | 1.34 |
| Au Feed Grade - Design | g/t | 2.10 |
| Ore Moisture | % | 3.0 |
| Ore Specific Gravity |  | 2.81 |
| Gold Recovery | % | 91.0 |
| Elution Vessel Capacity | t | 10 |
| Crushing Plant Equipment Design Factor | % | 20 |
| Process Plant Equipment Design Factor | % | 10 |

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The gold recovery process for the Greenstone Mine consists of a crushing circuit (primary gyratory and secondary cone); an HPGR and ball mill grinding circuit with gravity recovery; pre-leach thickening; cyanide leaching, CIP adsorption; elution and regeneration; electrowinning and refining; cyanide destruction; and tailings deposition.

The service areas include reagent preparation, compressed air, oxygen plant and sulphur dioxide storage and distribution. The water management system covers all the fresh, reclaim, process, potable, fire and gland-water storage and pumping. An on-site sewage treatment plant processes domestic wastewater, discharging to the environment. Tailings reclaim and collected contact water will be used for process water, with excess contact water treated and discharged to the environment.

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**Infrastructure, Permitting and Compliance Activities**

**Infrastructure**

**General**

The Greenstone Mine is within a district that is host to numerous mines and processing facilities and has access to good transportation and regional mining-related infrastructure. The Greenstone Mine is near the Trans-Canada Highway 11, TransCanada PipeLines Limited Canadian Mainline ("**TCPL Mainline**") natural gas pipeline, a Hydro One electrical substation, and the town of Geraldton hosts a municipal airport, which has a 1,500 m runway capable of accommodating small charter aircraft. Geraldton has its own potable water treatment system and water distribution network.

The general infrastructure to support mining and processing activities includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Site access and haul roads

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Workshop and maintenance facility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Warehousing for spare parts and reagents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Administration building, including a dry facility, gatehouse and parking area

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Explosive reagent storage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fuel storage and distribution

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recycling and sorting facility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Potable water and sewage systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fire water systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Site security and fencing.

A length of Trans-Canada Highway 11, a Hydro One 115 kV station, and a Ministry of Transportation Ontario patrol station were relocated to allow development of the Mine. Existing infrastructure within the footprint of the property limits that will need to be relocated in the future includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ontario Provincial Police Station

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Historical MacLeod and Hardrock tailings (portions covering the open pit mine).

The existing Hydro One grid is insufficient for powering the processing facilities and associated infrastructure. A 65 MW natural gas-fired power plant was constructed, with a designed capacity of 46.5 MW, which includes a pipeline originating from the existing TCPL Mainline pipeline directly to the site power plant.

**Water Management**

Two types of effluents will be generated during Greenstone Mine activities: mine effluent and sanitary effluent. The water quality standards applicable to mine effluent are defined in the applicable ECA and MDMER Effluent Criteria. The ECAs identify discharge locations and quality criteria for both mine and sanitary effluents discharging to the Southwest Arm of Kenogamisis Lake which are protective of the receiving environment. The effluent criteria meet and exceed MDMER criteria at the end of the pipe and the Provincial Water Quality Objectives for parameters are met within a small mixing zone in the receiving waterbody.

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Collected mine water, surface runoff water and underground workings water will be directed through various runoff and seepage collection ponds to the centralized mine water Collection Pond M1, which is designed to provide buffer flows for mill make-up water, with excess water sent to the effluent water treatment plant for treatment prior to discharge to the Southwest Arm of Kenogamisis Lake. A seepage collection system was installed to manage seepage from the historical Macleod tailings. Surface water runoff from the exterior of the tailings management facility (the "**TMF**") dams and any seepage through the dams or foundations is collected in a series of ponds and pumped back into the TMF reservoir for reuse in processing.

**Tailings Management Facility**

The TMF is a series of constructed dams with a final maximum height of 35 m and crest length of approximately 7,400 m. The TMF is currently designed to receive approximately 145 million tonnes (Mt) of mill and historical tailings at an average dry density of 1.34 t/m<sup>3</sup>. A cyanide destruction system is used to process all tailings water before it is sent to the TMF. An allowance has been made within the TMF to store the historical tailings and contaminated soils being relocated from the open pit area.

The TMF dams are and will continue to be constructed primarily using waste rock from mining operations. The dams will be constructed in stages and in the downstream direction. Construction of the TMF starter dams was completed in 2023. The first (Stage 1) dam raise will be completed in 2024 to a crest elevation of 344 m, and the planned ultimate crest elevation will be 365 m.

Tailings geochemistry indicates that less than 10% of the ore is considered potentially acid generating. This amount will be reduced through oxidization during ore processing, thereby reducing the overall acid rock drainage potential for the tailings.

Tailings are deposited in the TMF from the dam crests as a conventional slurry to produce a wide exposed beach. This beach will displace the tailings pond away from the dams towards natural ground along the western edge of the facility to enhance long-term dam stability. A barge-mounted pump system, located near the north side of the TMF, reclaims water from the TMF pond and pumps it back to the processing plant.

Closure of the TMF involves lowering of the spillway and vegetating the exposed tailings beaches. Runoff from the pond, when deemed suitable for discharge to the environment, will be directed through the spillway.

**Permitting and Compliance**

Environmental baseline studies were conducted for the Greenstone Mine between 2013 and 2021 and were used to identify environmental constraints during the development of layouts and designs for the Greenstone Mine. This environmental baseline was the basis for determining incremental changes and predicting environmental effects associated with the Mine.

A final EIS/EA was completed and a Notice of Approval was issued by the provincial regulatory agency and a Decision Statement was issued by the federal regulatory agency. GGM submitted a Closure Plan and Financial Assurance to the Ministry of Mines, which received approval on March 30, 2021. Since approval of the initial closure plan, GGM has filed two amendments, one in December 2023 and another in August 2024 to account for detailed design and to address measures implemented to mitigate erosion of the Goldfield Creek diversion channel.

The results of the final EIS/EA, including implementing the identified mitigation measures, supports the conclusion that the Greenstone Mine will not cause significant adverse environmental effects. Since completing the final EIS/EA, GGM has completed slight modifications of Greenstone Mine components, which form the basis for the final mine plan used for the Greenstone Technical Report. Active consultation with stakeholders (community members, agencies and interested parties) and Indigenous communities has been undertaken throughout Greenstone Mine planning, permitting, and detailed engineering and will continue through operation and closure of the Greenstone Mine.

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GGM has established Long Term Relationship Agreements with five local Indigenous communities. The agreements establish increased clarity regarding GGM's ability to develop the Greenstone Mine and the Indigenous communities' opportunity to benefit from future mining opportunities in the region, including the potential to extend the life of the Greenstone Mine.

The GGM Indigenous Relations team meets regularly with local Indigenous communities discussing employment, training, and procurement opportunities through the Implementation Committee ("**IC**"). The IC comprises members of each of the partnering communities and provides an ongoing forum for communication and co-operative measures for supporting Indigenous participation levels in the Mine. This provides an avenue for community members to voice concerns or questions they may have and to receive feedback from GGM.

The Environmental Sub-Committee ("**EAS**") reports to the IC and provides a forum for timely review and consultation and comment on Project Approvals and Environmental Mitigation & Monitoring Plans. The EAS considers and recommends appropriate testing, studies, or programs. Five Environmental Technicians from Aroland First Nation, Animbiigoo Zaagi'igan Anishinaabek, Ginoogaming First Nation, Long Lake #58 First Nation, and Métis Nation of Ontario actively participate in the daily operation of the GGM Environmental Department.

**Exploration, Development, and Production**

**Exploration**

GGM did not undertake any significant exploration work in 2024 and there are no plans to undertake any exploration work in 2025.

**Development** 

In October 2021, Equinox announced groundbreaking for full-scale construction of Greenstone with a construction budget of $1.255 million (100% basis) (at a rate of USD:CAD 1.25). Construction was funded on a pro rata basis with Equinox funding 60% and Orion Resource Partners funding 40%.

At December 31, 2023, $1.210 million (99%) of the $1.225 million construction budget had been spent (100% basis). Construction of the process plant was effectively complete and initial commissioning had commenced. All other site facilities, including the TMF, had been completed and handed over to the operations team by year end.

Commissioning activities continued during the second quarter of 2024. Ore was introduced into the system on April 6, 2024 and first gold pour was achieved on May 22, 2024. Process plant facilities were turned over to the operations team and the construction team demobilization activities were substantially complete by June 30, 2024, with commercial production announced on November 6, 2024.

**Production**

For its first partial year of production, Greenstone produced a total of 111,717 ounces of gold during 2024 at cash costs of $970 per ounce and AISC of $1,025 per ounce.

In Equinox's news release dated June 11, 2025, Equinox updated production guidance for Greenstone on June 11, 2025, estimating 2025 full-year production of 220,000 - 260,000 ounces of gold at an AISC of US$1,700-US$1,800/oz.

**KIAKA MINE TECHNICAL INFORMATION**

Versamet's second flagship asset is the Kiaka royalty. Under the terms of the royalty agreement, WAF pays to Versamet 2.7% of all gold produced from Kiaka (100% basis) until 2,500,000 ounces of gold have been produced and 0.45% on the next 1,500,000 ounces of gold production. The first royalty payment due to Versamet is expected after the third quarter of 2025.

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Kiaka is a newly built, operating gold mine that achieved first gold on June 26, 2025 and is in the process of ramping up. It is expected to operate for 20 years producing 234,000 ounces of gold annually.

**Sources of Information**

The following information is sourced from West African Resource's ASX disclosure, including recent company news releases and the 2024 Kiaka FS Update.

Versamet does not own or operate the operation and has no access to information outside of what is publicly disclosed by WAF. Some items that Versamet lacks access include daily, weekly, monthly operational data, internal reports and estimates, drill hole and assay data bases, topographic surveys, detailed cost reporting, permitting discussions, regulatory activities, production forecasts and others.

**Property Description, Location and Access**

Kiaka is located approximately 140 km southeast of Ouagadougou, the capital of Burkina Faso and is easily accessed via established roads. The project is located within a mining permit covering an area of 54 km<sup>2</sup>, which was granted in 2016 and valid for a period of 20 years with consecutive renewable periods of 5 years.

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![](formdrsaxu008.jpg)

**History**

The Kiaka deposit was discovered by Randgold in the early 2000s. In 2009 Volta Resources acquired Kiaka from Randgold and continued to drill and develop the project, publishing various MREs and technical studies. In 2013 B2Gold acquired Volta Resources and continued developing the project, conducting additional drilling, technical studies and permitting. In late 2021, West African Resources acquired the project. Early construction works commenced in late 2022 and the first gold was poured on June 26, 2025, following the completion of construction.

**Geological Setting, Mineralization and Deposit Types**

**Geology**

The project is located at the intersection of the Tenkodogo belt and the Markoye Fault Zone within Lower Proterozoic rocks of the Birimian Orogeny. Amphibole-rich mafic volcanic rocks are predominant in the lower (southern) portion of the deposit area, overlain by a sequence of clastic sediments. Several quartz-feldspar porphyritic sills intrude through the sequence at the northern end, the most significant of which is 90 m thick, interpreted to be an important rheological barrier to gold mineralisation. At least two generations of post-mineralisation mafic intrusions occur: steeply dipping, medium to coarse grained diorite dykes up to 80 m wide, and fine-grained dolerite dykes 2-3 m wide, with well defined, sharp contacts. Structural patterns are the product of protracted northwest-southeast directed shortening, producing a major F2 antiform several hundred meters wide, that is thought to be a primary control on localisation of gold mineralisation, evidenced by steep north-easterly plunging mineralisation zones. The deposit is covered by up to 20m of saprolite, with the majority of the gold mineralization occurring in fresh rock.

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**Mineralization**

Gold mineralization at Kiaka occurs within a sub-vertical to steeply southwest dipping shear zone, comprising an anastomosing network of brittle-ductile shears, localized along the axial surface of the Kiaka antiform. Gold mineralization ranges from 100 meters to over 400 meters in width over a known strike length of 2.3 km.

Gold mineralization exhibits both disseminated and vein-related characteristics and is associated with fine grained, disseminated pyrrhotite, lesser pyrite and trace chalcopyrite and arsenopyrite. Higher gold grades are frequently associated with the presence of quartz, both a quartz veins and as proximal silicification of the wall rocks to quartz veins.

**Deposit Types**

The Kiaka deposit characterized as a mesothermal (orogenic) gold deposit.

**Exploration**

**Drilling**

WAF and prior operators, Volta and Randgold, had performed over 1,331 drill holes totaling 206,051 meters which were disclosed in the Kiaka FS Update and were used for the resource estimate. The database was reviewed and validated prior to commencing the resource estimation study. The database consists of RC and diamond drilling. Database statistics are provided below.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Drillhole type** | &nbsp;&nbsp;**Number DH** | &nbsp;&nbsp;**Metres** | &nbsp;&nbsp;**% Total** |
| &nbsp;&nbsp;Randgold | &nbsp;&nbsp;Diamond drilling | &nbsp;&nbsp;24 | &nbsp;&nbsp;6,958m | &nbsp;&nbsp;3% |
| &nbsp;&nbsp;Randgold | &nbsp;&nbsp;RC Drilling | &nbsp;&nbsp;11 | &nbsp;&nbsp;1,125m | &nbsp;&nbsp;1% |
| &nbsp;&nbsp;Volta | &nbsp;&nbsp;Diamond drilling | &nbsp;&nbsp;370 | &nbsp;&nbsp;104,483m | &nbsp;&nbsp;51% |
| &nbsp;&nbsp;Volta | &nbsp;&nbsp;RC Drilling | &nbsp;&nbsp;725 | &nbsp;&nbsp;53,162m | &nbsp;&nbsp;26% |
| &nbsp;&nbsp;Volta | &nbsp;&nbsp;Diamond tails | &nbsp;&nbsp;145 | &nbsp;&nbsp;23,649m | &nbsp;&nbsp;11% |
| &nbsp;&nbsp;B2 Gold | &nbsp;&nbsp;Diamond drilling | &nbsp;&nbsp;50 | &nbsp;&nbsp;16,185m | &nbsp;&nbsp;8% |
| &nbsp;&nbsp;B2 Gold | &nbsp;&nbsp;RC Drilling | &nbsp;&nbsp;6 | &nbsp;&nbsp;490m | &nbsp;&nbsp;0.2% |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**1331** | &nbsp;&nbsp;**206,051m** | &nbsp;&nbsp;**100%** |

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**Sampling, Analysis and Data Verification**

All RC samples were weighed to determine recoveries. RC samples were split and sampled at 1m intervals using a cyclone splitter. Diamond core is a combination of HQ and NQ sizes and all diamond ore was logged for lithological, alteration, geotechnical, density and other attributes. Half-core sampling was completed at predominantly 1m intervals. Quality assurance and quality control procedures were completed as per industry standard practices.

Diamond core and RC samples were assayed at the ALS Chemex laboratory in Ouagadougou. SGS (Ouagadougou) and BIGS (Ouagadougou) were also used. A portion of the submissions were prepared in Burkina Faso before being shipped to the ALS laboratory in Johannesburg, South Africa. Diamond core samples were crushed, dried and pulverized to produce a sub sample for analysis of gold by 50g standard fire assay method followed by an atomic absorption spectrometry finish with a detection limit of 0.01 gpt Au.

Sample preparation for all samples follows industry standard practice. Field QC procedures involve the use of certified reference material as assay standards, blanks and duplicates. The insertion rate of these averaged 3:20. Field RC duplicates were taken on 1 m composites at the rig, using a riffle splitter. The sample sizes are considered to be appropriate to correctly represent the style of mineralization, the thickness and consistency of the intersections. The laboratory used a standard 50g fire assay method (FA) followed by an atomic absorption spectrometry (AAS) finish. Sample preparation checks for fineness were carried out by the laboratory as part of their internal procedures to ensure the grind size of 85 % passing 75 micron was being attained. Laboratory QA/QC involves the use of internal lab standards using certified reference material, blanks, splits and duplicates as part of the in-house procedures. Certified reference materials, having a good range of values, were inserted blindly and randomly. Results highlight that sample assay values are accurate and that contamination has been contained. Repeat or duplicate analysis for samples reveals that precision of samples is within acceptable limits. For on-site QA/QC checking, certified standards and blank samples represented 6 % of the total samples submitted for Kiaka Main, and 9 % for Kiaka South.

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**Mineral Processing and Metallurgical Testing**

Extensive metallurgical test work programs were undertaken by Volta Resources Ltd. and B2Gold between 2009 and 2015. The majority of the test work was conducted at SGS Canada Inc. in Lakefield, Ontario, Canada between 2014 and 2015.

The focus of the metallurgical test work programme was on the Kiaka Main open pit area. Within this area there are three spatial domains:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Main Central;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Main North; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Main South.

The Kiaka Main Central and Main North domains are dominated by metasedimentary rocks and the Main South domain comprises mainly of metavolcanic material.

Three comminution and three metallurgical composites were sourced from six diamond drillholes located in the three spatial domains of the Kiaka Main open pit. Comminution composites were whole core contiguous sections from drillholes. Each of the three metallurgical composites were selected from two drillholes from each domain.

Variability samples were selected within the three domains at various elevations within the pit outline, and at different gold grades. Comminution variability test work was carried out for the determination of changes in grinding properties resulting from variations in lithology, mineralisation and alteration intensity. Forty-two comminution variability samples were collected from drillholes in the four domains, including one from the south deposit area. Fifty-eight metallurgical variability samples were compiled, from coarse rejects and ½ NQ core of previous exploration drillholes distributed across the sample domains. The metallurgical test work programme was completed between 2014 and 2015 mostly by SGS Lakefield. The remainder of the programme was completed by either SGS Lakefield under supervision of a consultant or specialist, or at another laboratory facility.

The following conclusions can be drawn from the comminution and metallurgical test programmes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The leach conditions identified as achieving high gold extraction are: 4 hours of pre-aeration followed by 36 hours of cyanide leach; pH 10.5 maintained with lime; 50g/t of initial lead nitrate addition; 0.40g/L NaCN concentration; and at elevated dissolved oxygen levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Overall combined gold recovery for Kiaka Main deposit for the selected flowsheet are expected to range between 89% and 91%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A design gold recovery of 90% has been selected for the study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Based on the indicated adsorption properties and WAF preference an 8 stage CIL adsorption circuit has been selected.

**Mineral Resource Estimate** 

Mineral Resources have been prepared under JORC reporting regime and are not compliant in accordance with Item 1300 of Regulation S-K. Reporting of mineral reserves is omitted as per Section 1304(a)(2) of SK1300.

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**Mineral Reserve Estimate**

Mineral Reserves have been prepared under JORC reporting regime and are not compliant in accordance with Item 1300 of Regulation S-K. Reporting of mineral reserves is omitted as per Section 1304(a)(2) of SK1300.

**Mining Operations**

The mine is operated as a conventional open pit mine, having one main large pit (Kiaka Main) that is mined in three stages and two smaller satellite pits (C2 and Kiaka South). Mining is occurring using conventional large open pit equipment including blast hole drills, 230 t excavators and 140t off-road haul trucks. The mine schedule is based on a processing rate of 10 Mt/yr which drops to 8.75 Mtpa as the ore transitions from oxide into fresh. Total mining rates included material movement averaging 32 Mt/yr over the first twelve years of production, tapering off towards the end.

**Processing and Recovery Operations**

The Kiaka process plant will have a nameplate throughput of 7.0Mtpa, with an availability of 8,000 hours per annum and a nominal capacity of 875 tonnes per hour (tph). A 20% engineering contingency was allowed by Lycopodium Minerals in the design, in particular from a hydraulic capacity through thickening, CIL and tailings pumping. Throughput modelling conducted by OMC show the selected comminution circuit is capable of a throughput of 10Mtpa (1,250 tph) on the design blend of 23% oxide 77% fresh feed.

WAF has adopted an approach of oversizing the comminution circuit to align with the hydraulic design margin of the downstream processing plant, an identical approach to that employed at WAF's Sanbrado mine which was also designed by Lycopodium Minerals. On this basis the Kiaka processing plant will be ramped up post commissioning and handed over from Lycopodium Minerals from the 7 Mtpa nameplate design to 8.75 Mtpa for the long-term operations. Sanbrado has operated continuously above the hydraulic limit since commissioning and handover to date, providing confidence to the approach.

The process flow diagrams were developed from the process design criteria prepared by Lycopodium Minerals. The plant design proposed is simple but robust and broadly comprises the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Primary Gyratory Crushing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Crushed Ore Stockpile and Reclaim System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SAG - Ball Milling with Pebble Crushing and Classification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gravity Circuit to Intensive Leach Reactor to separate gravity recoverable fine gold prior to leaching;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leach Feed Thickening;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pre-oxidation, Leaching and Adsorption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electrowinning; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gold smelting.

It is planned that a majority of the ore will be direct tipped into the primary crusher by the mining fleet. The mine production schedule has assumed that 60% of the ore will be direct tipped with the remaining 40% being rehandled into the crusher by a front-end loader.

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**Infrastructure, Permitting and Compliance Activities**

**Site Development** 

The Kiaka Mine is located 140km southeast of the capital city of Ouagadougou, a city with modern services that has direct air service to Europe. Neighbouring countries can be accessed via a network of roads as well as by regularly scheduled air services.

The Kiaka Mine can be accessed by road in approximately two hours from Ouagadougou. Most road links between Ouagadougou and the Kiaka Mine are good. The initial 100km from Ouagadougou to Manga is the N5 road, which forms the main access between Ouagadougou and Ghana border at the town of Paga. Southeast of Manga, the road changes to a further 20km of laterite gravel road, and finally 20km of laterite gravel road of variable quality. The final 20km of laterite gravel access road requires upgrading to install multiple flood crossings and road re-profiling. Beyond the existing access road, new gravel access roads will be constructed to access the accommodation camp, process plant and mining contractor's area.

**Accommodation Camp** 

WAF has constructed a fully supported 304-person accommodation camp, located 0.5km southwest of the process plant. The accommodation camp is for expat and Burkinabe staff and is in addition to accommodation in nearby existing towns. The camp will be operated by a catering and accommodation service provider on a long-term operating contract. The camp contractor will be responsible for all operations at the accommodation camp including catering and cleaning.

**Power Supply** 

Power is to be supplied by connecting to the national electricity grid (operated by SONABEL) which is expected to be completed in Q3 2025. The mine also has emergency power from diesel generators.

**Tailings Storage Facility** 

Tailings are being stored in a lined tailings storage facility adjacent to the process plant with decanted water returned to process plant for re-use.

**Water Supply** 

Raw water will be sourced from the Bagre dam on the Nakambé River approximately 3 km east of Kiaka. Water will be abstracted using submersible pumps which will transfer water to the WSF via buried HDPE pipeline. The WSF will be located immediately south-west of the TSF. The WSF is the main storage pond for raw water on site, and can store up to 2,000,000m³ of water at the maximum operating level. Water will be pumped from the dam as required following the annual wet season.

**Mine Services** 

Mine services including workshop, warehousing, offices, messing and change rooms will be situated to the southeast of the process plant area. Bulk fuel storage and refuelling facilities for the mine fleet and light vehicles will be in the mine services area. The layout has been designed to separate heavy and light vehicle traffic.

**Permitting, Environment and Social**

An ESIA and RAP were conducted for the Kiaka Mine in 2013 for which an Environmental Certificate was awarded in 2015. WAF completed an update to the ESIA and RAP in 2023 and a renewed Environmental Certificate was awarded in April 2024. Findings from the updated ESIA and RAP were consistent with those from 2013. No significant changes in environmental or social baseline conditions or impacts were identified. Kiaka SA's Environmental and Social Management System is managed by Kiaka's Environment and Community Relations Departments.

------

**Exploration**

WAF commenced a grade control drilling program for Kiaka, completing the first phase in Q1 2025, after drilling a total of 2,636 holes for 79.913 meters. The drilling was conducted on a nominal grid spacing of 12.5 m x 12.5 m targeting the top 20 meters of the mineralization within the Kiaka Main and was designed to improve the confidence level in the geological model and grade estimation in the top 20 meters of the deposit which covers the first 12 months of open pit ore production. The grade control drilling results aligned closely with the MRE, confirming mineralization widths of up to 400 meters at surface.

**Project Development**

In mid-2022, WAF commenced early works at Kiaka. In Q4 2022 WAF awarded the EPCM (engineering, procurement, and construction-management) contract to Lycopodium and the supply of the 18MW SAG mill and 9MW ball mill to Metso Outotec. Lycopodium is a leading international engineering and project management consultancy for West African mineral gold process plants, having completed the construction of more than a dozen gold projects in West Africa since 2009, including West African's Sanbrado gold mine. Metso Outotec were selected due to their overall experience and reliability with supplying grinding mills of this size, and the positive outcome at Sanbrado where WAF's Metso Outotec SAG and ball mills have been performing very reliably above nameplate capacity.

During 2023, construction of the main camp was completed, the security buildings and main entrance gates were erected, earthworks for key areas of the primary crusher, reclaim, mills, and CIL were handed over to the EPCM contractor (Lycopodium), and the first concrete pour was completed.

During 2024, construction of Kiaka continued to progress on schedule and on budget. By end of 2024 all major process equipment was delivered to site, major concrete pours were complete, mills were installed, settlement testing of the carbon-in-leach tanks was successful, structural steel erection was well progressed, most conveyor modules were installed, mechanical equipment installation was advancing well and electrical and instrumentation installation had commenced. Process plant commissioning planning was underway with the EPCM Commissioning Manager appointed.

On June 4, 2025, WAF announced Kiaka ownership is changing to 85% WAF and 15% Government of Burkina Faso, an increase to the Government's stake from 10%, aligning it with the Burkina Faso Mining Code adopted in August 2024.

Construction of Kiaka was completed in the second quarter of 2025 and the first gold was poured on June 26, 2025, ahead of schedule and under budget.

On August 28, 2025, WAF requested the ASX to halt trading of their shares due to a request from the government of Burkina Faso to acquire, for valuable paid consideration, an additional 35% of the subsidiary Kiaka SA which owns the Kiaka mine.

**ITEM 4A: UNRESOLVED STAFF COMMENTS**

Not Applicable.

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**ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

**A. Operating Results**

**Three month period ended June 30, 2025 compared to June 30, 2024**

**Cash flows and financial condition**

During the quarter ended June 30, 2025, our cash balance increased by $0.2 million. This increase is primarily as a result of the factors listed below. We received inflows of $4.8 million in revenue, made cash payments to Equinox and Endeavour Silver included within cost of sales of $0.7 million and incurred $0.7 million in cash operating expenses. In addition, we saw an outflow of $0.9 million relating to working capital. Further, we drew net $53.0 million on the BMO Credit Facility to fund the $35.0 million acquisition of the Kolpa Copper Stream and $16.4 million repayment of the Beedie Convertible Debt. We also incurred $3.6 million of financing costs primarily related to $2.4 million in non-recurring prepayment fees for the early repayment of the Beedie Convertible Debt, $0.8 million of cash interest charges on debt outstanding and $0.3 million of commitment fees related to the BMO Credit Facility. Further, the Company paid $0.1 million in cash taxes.

During the quarter ended June 30, 2024, our cash balance increased by $37,356. This increase is primarily as a result of the factors listed below. We received inflows of $2.9 million in revenue, made cash payments to Equinox included within cost of sales of $0.5 million and incurred $0.5 million in cash operating expenses. We incurred $0.1 million in transaction costs relating to the transaction with B2Gold. We repaid $1.0 million on the revolving credit facility and paid $0.7 million in cash interest charges on debt outstanding. Further, we paid $0.1 million in cash taxes.

**Discussion of Statement of Income (loss)**

We earned net income of $0.2 million in the quarter ended June 30, 2025 as compared to earning a net income of $1.1 million in the prior year. These results are as a result of the following factors:

**Revenue**

We earned total revenue of $4.8 million during the three months ended June 30, 2025 as compared to $2.9 million in the same period in 2024. A discussion of revenue by operating segment is presented below:

We earned revenue of $3.4 million from the sale of gold from Greenstone GPA during the three months ended June 30, 2025 as compared to $2.5 million in the same period of 2024. We received the same number of gold ounces each period (1,050 ounces); the increase in revenue was due to the increase in the spot price of gold received by us in Q2 2024 of $2,345 as compared to Q2 2025 of $3,265.

We earned $0.4 million in royalty revenue from the Blackwater royalty during the three months ended June 30, 2025. No revenue was earned from this royalty in 2024 as the Blackwater mine commenced production during 2025.

We earned $0.5 million in revenue from the sale of copper received under the Kolpa stream during the three months ended June 30, 2025. No revenue was earned under the Kolpa stream in 2024 as the Kolpa stream was acquired during the second quarter of 2025.

We earned $0.5 million in revenue from the Mercedes royalty during the three months ended June 30, 2025 as compared to $0.4 million in prior period. The reason for the increase period-upon-period is due to a significant increase in the realized gold price from the sales from the Mercedes mine period-upon-period; this was offset with a 16% reduction in the number of ounces sold period-on-period, based on lower production from the Mercedes mine.

**Cost of Sales**

------

We incurred total cost of sales of $3.5 million during the three months ended June 30, 2025 as compared to $2.5 million in the same period in 2024. A discussion of cost of sales by operating segment is presented below:

Cost of sales of $3.4 million was incurred during the three months ended June 30, 2025 on the Greenstone GPA as compared to $2.5 million in the prior period. Cost of sales includes: (i) a cash payment to Equinox Gold upon monthly deliveries of gold based on 20% of the value of the gold delivered to us and (ii) a non-cash drawdown against the initial deposit paid for the Greenstone GPA. Both the cash and non-cash portion of cost of sales are impacted by the gold price; the increase in the price of gold period-upon-period led to the increase in cost of sales.

Cost of sales of $49,294 was incurred in the three months ended June 30, 2025 in relation to the Kolpa copper stream. Cost of sales represents a payment of 10% of the value of the copper delivered to Versamet on a monthly basis to the mine operator. The Kolpa stream was acquired in Q2 2025 and as such no cost of sales related to the stream were incurred in prior year.

**Depletion**

We deplete our assets which are classified as Royalty and other interests on the Statement of Financial Position. Total depletion of $0.7 million was recorded in the 3 months ended June 30, 2025 as compared to $0.2 million in the prior period. A discussion of depletion by operating segment is presented below:

Total depletion of $0.1 million was recorded on the Blackwater royalty during the three months ended June 30, 2025. Depletion is a factor of the level of sales (as a result of production) at the Blackwater mine and the carrying value of the asset on our Statement of Financial Position. No depletion was recorded in the prior period as the Blackwater mine only commenced production during 2025.

Total depletion of $0.3 million was recorded on the Kolpa stream the three months ended June 30, 2025. Depletion is a factor of the level of copper production at the Kolpa mine and the carrying value of the asset on the our Statement of Financial Position. No depletion was recorded in the prior period as the Kolpa stream was acquired in the second quarter of 2025.

Total depletion of $0.2 million was recorded on the Mercedes royalty during the three months ended June 30, 2025 as compared to $0.2 million in the prior period. Depletion is a factor of the level of sales (as a result of production) at the Mercedes mine and the carrying value of the asset on our Statement of Financial Position. Although sales decreased period-upon-period, we also impaired the carrying value of the Mercedes asset over this time period, resulting in a consistent depletion charge when comparing the two periods.

**Gross Profit**

We earned total gross profit of $0.7 million in the three months ended June 30, 2025 as compared to $0.3 million in the same period in prior year. Gross profit is the sum of revenue less cost of sales and depletion; a discussion of each factor is above. A comparison of gross profit by operating segment is presented below:

We earned gross profit of $0.2 million from the Blackwater royalty in the three months ended June 30, 2025 as compared to nil in the comparative period. No gross profit was earned from this royalty in 2024 as the Blackwater mine commenced production during 2025.

We earned gross profit of $0.1 million from the Kolpa copper stream in the three months ended June 30, 2025 as compared to nil in the comparative period. No gross profit was earned from this stream in 2024 as the Kolpa stream was acquired during 2025.

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We earned gross profit of $0.3 million from the Mercedes royalty in the three months ended June 30, 2025 as compared to $0.3 million in the comparative period. The consistent gross profit period-upon-period is as a result of an increase in the gold price offset by a decrease in sales by the mine operator (as discussed above).

**Other income and expenditures:**

The table below details the changes in the expenditures for the quarter ended June 30, 2025 <br>as compared to the quarter ended June 30, 2024. With the exception of the change in the fair value of the Greenstone gold interest, the line items below are considered corporate income / expenses and are not allocated to the segments which the Chief Operating Decision Maker (being the CEO) reviews.

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| | | |
|:---|:---|:---|
| **Expense/Other income** | **Increase/Decrease from prior year** | **Explanation for the change** |
| Business development | Increase of $61,725 | The expenses were largely consistent period-on-period. |
| Change in fair value of Greenstone gold interest | Increase of $1,481,710 | This increase relates to the comparative fair value movement in the Greenstone GPA with Equinox during Q2 2025 as compared to Q2 2024. There was an increase during both periods but relatively more of an increase during Q2 2025. The change in value is largely driven by the consensus gold price and the discount rate applied to the valuation of the Greenstone GPA. |
| General and administrative | Increase of $43,468 | The expenses were largely consistent period-on-period. |
| Professional fees | Increase of $80,523 | The expenses were largely consistent period-on-period. |
| Salaries and benefits | Increase of $31,923 | The expenses were largely consistent period-on-period. |
| Share-based compensation | Increase of $209,695 | The increase relates to a higher number of stock options and RSUs outstanding and vesting during the period as compared to the prior period. |
| Foreign exchange loss | Increase of $639,705 | In the current period, a foreign exchange loss of $527,157 was recorded as compared to a foreign exchange gain in the prior period. The foreign exchange loss in the current period is primarily recorded as a result of revaluing the Canadian denominated Beedie Convertible Loan (see "Item 5.B. Liquidity and capital resources") into US dollars, the Company's functional currency. The weakening of the US dollar as compared to the Canadian dollar prior to repayment on April 30, 2025 lead to a foreign exchange loss, compared to a strengthening of the US dollar in the prior period. |
| Finance and interest expense | Increase of $5,596,797 | The increase primarily relates to prepayment of the Beedie Convertible Loan. As a result of the revised repayment date, the Company recognized $3.3 million of finance expense due to the accelerated recording of the accretion expense and $2.4 million of non-recurring prepayment fees. |
| Change in fair value of convertible debt derivative liability | Increase of $3,850,255 | In the current period, the Beedie Convertible Loan was fully repaid and the convertible debt derivative liability related to the conversion option was derecognized resulting in a gain of $3.2 million. |
| Interest income | Decrease of $1,883 | The income was largely consistent period-on-period. |

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In addition, we recognized a current tax expense of $0.1 million during the quarter ended June 30, 2025 (2024 - $0.1 million); the current tax expense relates to withholding taxes payable on royalty revenue earned from the Mercedes Mine. Deferred tax expense of $0.5 million was recognized in the current period (2024 - $0.5 million); the deferred tax expense is primarily driven by an increase in the value of the Greenstone gold interest during the period, resulting in a future income tax expense.

**Six months ended June 30, 2025 compared to June 30, 2024**

**Cash flows and financial condition** 

During the six months ended June 30, 2025, our cash balance decreased by $0.4 million. This decrease is primarily as a result of the factors listed below. We received inflows of $8.3 million in revenue, made cash payments to Equinox and Endeavour Silver included within cost of sales of $1.3 million and incurred $2.1 million in cash operating expenses. We also saw an outflow of $1.7 million relating to working capital. Further, we drew net $52.0 million on the Amended RCF to fund the $35.0 million acquisition of the Kolpa Copper Stream and $16.4 million repayment of the Beedie Convertible Debt in full. We also incurred $3.8 million of financing costs related to $2.4 million in non-recurring prepayment fees related to early repayment of the Beedie Convertible Debt, $1.1 million of cash interest charges on debt outstanding and $0.3 million of commitment fees related to the Amended RCF. Further, we paid $0.3 million in cash taxes.

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During the six months ended June 30, 2024, our cash balance decreased by $5.6 million. This decrease is primarily as a result of the factors listed below. We received inflows of $5.6 million in revenue, made cash payments to Equinox included within cost of sales of $0.9 million and incurred $1.0 million in cash operating expenses. In addition, we had a cash inflow of $1.0 million on the investments sold. Further, we incurred $0.1 million in transaction costs relating to the transaction with B2Gold, repaid $8.5 million on its revolving credit facility and paid $1.4 million in cash interest charges on debt outstanding. Further, we paid $0.2 million in cash taxes.

**Discussion of Statement of Income (loss)**

We earned net income of $2.0 million in the six months ended June 30, 2025 as compared to earning a net income of $1.0 million in the same period in 2024. These results are as a result of the following factors:

**Revenue**

We earned total revenue of $8.3 million during the six months ended June 30, 2025 as compared to $5.6 million in the same period in 2024. A discussion of revenue by operating segment is presented below:

We earned revenue of $6.4 million from the sale of gold from Greenstone GPA during the six months ended June 30, 2025 as compared to $4.6 million in the same period of 2024. We received the same number of gold ounces each period (2,100 ounces); the increase in revenue was due to the increase in the spot price of gold received by our Company in the first half of 2024 of $2,204 as compared to the first half of 2025 of $3,059.

We earned $0.4 million in royalty revenue from the Blackwater royalty during the six months ended June 30, 2025. No revenue was earned from this royalty in 2024 as the Blackwater mine commenced production during 2025.

We earned $0.5 million in revenue from the sale of copper received under the Kolpa stream during the six months ended June 30, 2025. No revenue was earned under the Kolpa stream in 2024 as the Kolpa stream was acquired during the second quarter of 2025.

We earned $1.0 million in revenue from the Mercedes royalty during the six months ended June 30, 2025 as compared to $1.0 million in prior period. The reason for the increase period-upon-period is due to a significant increase in the realized gold price from the sales from the Mercedes mine period-upon-period; this was offset with a 27% reduction in the number of ounces sold period-on-period, based on lower production from the Mercedes mine.

**Cost of Sales**

We incurred total cost of sales of $6.5 million during the six months ended June 30, 2025 as compared to $4.6 million in the same period in 2024. A discussion of cost of sales by operating segment is presented below:

Cost of sales of $6.4 million was incurred during the six months ended June 30, 2025 on the Greenstone GPA as compared to $4.6 million in the prior period. Cost of sales includes: (i) a cash payment to Equinox Gold upon monthly deliveries of gold based on 20% of the value of the gold delivered to our Company and (ii) a non-cash drawdown against the initial deposit paid for the Greenstone GPA. Both the cash and non-cash portion of cost of sales are impacted by the gold price; the increase in the price of gold period-upon-period led to the increase in cost of sales.

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Cost of sales of $49,294 was incurred in the six months ended June 30, 2025 in relation to the Kolpa copper stream. Cost of sales represents a payment of 10% of the value of the copper delivered to Versamet on a monthly basis to the mine operator. The Kolpa stream was acquired in Q2 2025 and as such no cost of sales related to the stream were incurred in prior year.

**Depletion**

We deplete our assets which are classified as Royalty and other interests on the Statement of Financial Position. Total depletion of $0.9 million was recorded in the six months ended June 30, 2025 as compared to $0.4 million in the prior period. A discussion of depletion by operating segment is presented below:

Total depletion of $0.1 million was recorded on the Blackwater royalty during the six months ended June 30, 2025. Depletion is a factor of the level of sales (as a result of production) at the Blackwater mine and the carrying value of the asset on the Company's Statement of Financial Position. No depletion was recorded in the prior period as the Blackwater mine only commenced production during 2025.

Total depletion of $0.3 million was recorded on the Kolpa stream the six months ended June 30, 2025. Depletion is a factor of the level of copper production at the Kolpa mine and the carrying value of the asset on our Company's Statement of Financial Position. No depletion was recorded in the prior period as the Kolpa stream was acquired in the second quarter of 2025.

Total depletion of $0.5 million was recorded on the Mercedes royalty during the six months ended June 30, 2025 as compared to $0.4 million in the prior period. Depletion is a factor of the level of sales (as a result of production) at the Mercedes mine and the carrying value of the asset on our Statement of Financial Position. Although sales decreased period-upon-period, we also impaired the carrying value of the Mercedes asset over this time period, resulting in a consistent depletion charge when comparing the two periods.

**Gross Profit**

We earned total gross profit of $0.9 million in the six months ended June 30, 2025 as compared to $0.5 million in the same period in prior year. Gross profit is the sum of revenue less cost of sales and depletion; a discussion of each factor is above. A comparison of gross profit by operating segment is presented below:

We earned gross profit of $0.2 million from the Blackwater royalty in the six months ended June 30, 2025 as compared to nil in the comparative period. No gross profit was earned from this royalty in 2024 as the Blackwater mine commenced production during 2025.

We earned gross profit of $0.1 million from the Kolpa copper stream in the six months ended June 30, 2025 as compared to nil in the comparative period. No gross profit was earned from this stream in 2024 as the Kolpa stream was acquired during 2025.

We earned gross profit of $0.5 million from the Mercedes royalty in the six months ended June 30, 2025 as compared to $0.5 million in the comparative period. The consistent gross profit period-upon-period is as a result of an increase in the gold price offset by a decrease in sales by the mine operator (as discussed above).

**Other income and expenditures:**

The table below details the changes in the expenditures for the six months ended June 30, 2025 <br>as compared to the six months ended June 30, 2024. With the exception of the change in the fair value of the Greenstone gold interest, the line items below are considered corporate income / expenses and are not allocated to the segments which the Chief Operating Decision Maker (being the CEO) reviews.

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- 83 - <br>

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| | | |
|:---|:---|:---|
| **Expense/Other income** | **Increase/Decrease from prior year** | **Explanation for the change** |
| Business development | Increase of $64,443 | The expenses were largely consistent period-on-period. |
| Change in fair value of Greenstone gold interest | Increase of $3,307,590 | This increase relates to the comparative fair value movement in the GPA with Equinox during Q2 2025 as compared to Q2 2024. There was an increase during both periods but relatively more of an increase during Q2 2025. The change in value is largely driven by the consensus gold price and the discount rate applied to the valuation of the GPA. |
| General and administrative | Increase of $51,844 | The expenses were largely consistent period-on-period. |
| Professional fees | Increase of $97,469 | The expenses were largely consistent period-on-period. |
| Salaries and benefits | Increase of $818,537 | The increase in the expense was due to cash bonuses paid in early 2025. Bonuses in the prior year were paid in share-based compensation to preserve cash for the Company. |
| Share-based compensation | Decrease of $999,949 | The decrease relates to a reversal of share-based compensation expense previously incurred during the period for unvested options, RSUs and PRSUs which were forfeited by the former CEO upon his departure during Q1 2025, partially offset by higher number of stock options and RSUs outstanding and vesting during the current period. |
| Foreign exchange loss | Increase of $757,883 | In the current period a foreign exchange loss of $536,058 was recorded as compared to a foreign exchange gain in the prior period. The foreign exchange is primarily recorded as a result of revaluing the Canadian denominated Beedie Convertible Loan (see "Item 5.B. Liquidity and capital resources") into US dollars, the Company's functional currency. The weakening of the US dollar as compared to the Canadian dollar prior to repayment on April 30, 2025 lead to a foreign exchange loss, compared to a strengthening of the US dollar in the prior period. |
| Finance and interest expense | Increase of $5,112,389 | The increase primarily relates to prepayment of the Beedie Convertible Loan. As a result of the revised repayment date, the Company recognized $3.3 million of finance expense due to the accelerated recording of the accretion expense and $2.4 million of non-recurring prepayment fees. |
| Change in fair value of convertible debt derivative liability | Increase of $3,576,976 | In the current period, the Beedie Convertible Loan was fully repaid and the convertible debt derivative liability related to the conversion option was derecognized resulting in a gain of $3.2 million. |
| Interest income | Decrease of $70,768 | The income was largely consistent period-on-period. |

---

In addition, we recognized a current tax expense of $0.3 million during the six months ended June 30, 2025 (2024 - $0.2 million); the current tax expense relates to withholding taxes payable on royalty revenue earned from the Mercedes Mine. Deferred tax expense of $1.2 million was recognized in the current period (2024 - $0.9 million); the deferred tax expense is primarily driven by an increase in the value of the Greenstone gold interest during the period, resulting in a future income tax expense.

**Year ended December 31, 2024 and December 31, 2023**

**Cash flows and financial position**

During the year ended December 31, 2024, our cash balance decreased by US$5.3 million. This decrease is as a result of the factors listed below. We received inflows of US$12.0 million in revenue, made cash payments to Equinox included within cost of sales of US$2.0 million and incurred US$3.0 million in cash operating expenses. Further, we saw an inflow of US$0.8 million relating to working capital. We had a cash inflow of US$1.0 million on the sale of common shares in Montage. We incurred US$0.1 million in transaction costs relating to the B2Gold Transaction. In addition, we received net proceeds of US$7.5 million from a private placement with B2Gold, repaid US$19.0 million on the Credit Facility and paid US$2.0 million in cash interest charges on debt outstanding net of interest income.

Further, we paid US$0.5 million in cash taxes and incurred a foreign exchange loss on cash balances of US$0.1 million.

------

During the year ended December 31, 2023, our cash balance increased by US$2.6 million. This increase is primarily as a result of the factors listed below. We received inflows of US$3.1 million in revenue, made cash payments to Equinox included within cost of sales of US$0.3 million, and incurred US$1.8 million in cash operating expenses and an inflow of US$2.2 million relating to the repayment of the Sandstorm Convertible Note. We also paid US$0.4 million in withholding taxes on the income from the Mercedes royalty. Our cash inflows related to the Credit Facility and Beedie Convertible Loan were reasonably consistent with the outflows to close the acquisitions of the Greenstone GPA and the two royalties from Sandstorm.

**Discussion of Statement of Income (loss)**

We earned a net loss of $2.4 million in the year ended December 31, 2024 as compared to incurring a net loss of $3.1 million in the prior year. These results are as a result of the following factors:

**Revenue**

We earned total revenue of $12.0 million during the year ended December 31, 2024 as compared to $3.1 million during the year ended December 31, 2023. A discussion of revenue by operating segment is presented below:

We earned revenue of $10.0 million from the sale of gold from Greenstone GPA during the year ended December 31, 2024 as compared to $1.4 million in the same period of 2024. We acquired the Greenstone GPA on October 31, 2023 and as such only received two months of deliveries (or 700 ounces of gold) during 2023 as compared to a full twelve months of deliveries in 2024 (or 4,200 ounces of gold). In addition, our average realized price from the sale of gold increased from $2,000 per ounce in 2023 to $2,378 per ounce in 2024.

We earned $2.0 million in revenue from the Mercedes royalty during the year ended December 31, 2024 as compared to $1.7 million in the same period of 2024. The reason for the increase period-upon-period is due to a significant increase in the realized gold price from the sales of the Mercedes mine period-upon-period; this was offset with a 6% reduction in the number of ounces sold period-on-period, based on lower production from the Mercedes mine.

**Cost of Sales**

We incurred total cost of sales of $10.0 million during the year ended December 31, 2024 as compared to $1.4 million in the same period of 2023. A discussion of cost of sales by operating segment is presented below:

Cost of sales of $10.0 million was incurred during the year ended December 31, 2024 on the Greenstone GPA as compared to $1.4 million in 2023. Cost of sales includes: (i) a cash payment to Equinox Gold upon monthly deliveries of gold based on 20% of the value of the gold delivered to the Company and (ii) a non-cash drawdown against the initial deposit paid for the Greenstone GPA. We acquired the Greenstone GPA on October 31, 2023 and as such only received two months of deliveries (or 700 ounces of gold) during 2023 as compared to a full twelve months of deliveries in 2024 (or 4,200 ounces of gold). In addition, our average realized price from the sale of gold increased from $2,000 per ounce in 2023 to $2,378 per ounce in 2024. Both the cash and non-cash portion of cost of sales are impacted by the gold price.

**Depletion**

We deplete our assets which are classified as Royalty and other interests on the Statement of Financial Position. Total depletion of $0.8 million was recorded during the year ended December 31, 2024 as compared to $0.9 million in the prior period. A discussion of depletion by operating segment is presented below:

Total depletion of $0.8 million was recorded on the Mercedes royalty during the year ended December 31, 2024 as compared to $0.9 million in 2023. Depletion is a factor of the level of sales (as a result of production) at the Mercedes mine and the carrying value of the royalty asset on our Statement of Financial Position. A 6% reduction in the number of ounces sold by the operator of the Mercedes mine led to the reduction in depletion during the period.

------

**Gross Profit**

We earned total gross profit of $1.2 million in the year ended December 31, 2024 as compared to $0.8 million in the same period in the prior year. Gross profit is the sum of revenue less cost of sales and depletion; a discussion of each factor is above. A comparison of gross profit by operating segment is presented below:

We earned gross profit of $1.2 million from the Mercedes royalty in the year ended December 31, 2024 as compared to $0.8 million in the prior year. The increase in the gross profit year-upon-year is primarily as a result of a higher realized gold price by the Mercedes operator for the gold they produced and sold during 2024 as compared to 2023, as described above.

**Other income and expenditures:**

The table below details the changes in the expenditures for the year ended December 31, 2024 as compared to the year ended December 31, 2023. With the exception of the Change in the fair value of the Greenstone gold interest, the line items below are considered corporate income / expenses and are not allocated to the segments which the Chief Operating Decision Maker (being the CEO) reviews.

---

| | | |
|:---|:---|:---|
| **Expense/Other income** | **Increase/Decrease**<br>**from prior year** | **Explanation for the change** |
| Business development | Increase of US$15,493 | The expenses were largely consistent period-on-period. |
| Change in fair value of Greenstone gold interest | Increase of US$9,224,739 | This gain relates to the fair value movement in the Greenstone GPA with Equinox between December 31, 2023 and December 31, 2024; this largely relates to the increase in consensus gold pricing during this period. |
| General and administrative | Increase of US$274,492 | The increase was due to larger insurance premiums in the current period due to increased coverage as the Company grew, as well as higher rent costs in the current period as compared to the prior period as the Company grew in size. Further, certain filing fees were incurred in the current period related to the B2Gold Transaction which were not incurred in the prior period. |
| Professional fees | Decrease of US$266,229 | In prior period, our general counsel was engaged as a consultant, for which expense was included in professional fees. In the current period, general counsel became an employee and his fees are included in salaries and benefits. This is offset by higher audit expense in the current period due to more complex operations as compared to the prior period. |
| Salaries and benefits | Increase of US$1,114,754 | The increase in primarily driven by an accrual for bonuses paid to employees of the Company in January 2025. In addition, in prior period, our general counsel was engaged as a consultant, for which expense was included in professional fees. In the current period, general counsel became an employee and their fees are included in salaries and benefits. |
| Share-based compensation | Increase of US$939,735 | The increase relates to an accrual for bonuses paid to employees in January 2025 in the form of restricted share units. The timing of share-based compensation grants and the vesting schedule of said grants also impacts the expense recorded. |
| Foreign exchange gain | Increase of US$1,166,432 | In the current period a foreign exchange gain was recorded as compared to a foreign exchange loss in the prior period. The foreign exchange is primarily recorded as a result of revaluing the Canadian denominated Beedie Convertible Loan (see "Item 5.B. Liquidity and capital resources") into US dollars, the Company's functional currency. The strengthening of the US dollar as compared to the Canadian dollar, period upon period, has meant this liability has a lower value in the current period when recorded in US dollars. |
| Finance and interest expense | Increase of US$1,568,554 | The finance and interest expense in the current period includes accretion on the Sandstorm Convertible Note, the Beedie Convertible Loan and the Credit Facility. In addition, the interest incurred on both the Beedie Convertible Loan and the Credit Facility is included in finance expense; these two debt facilities were entered into on October 31, 2023 and so not in place for most of the prior period. |
| Change in fair value of convertible debt derivative liability | Increase of US$403,584 | The gain relates to the fair value of the Beedie Derivative Liability. The Derivative Liability is fair valued each period using a number of market and other inputs. |
| Interest income | Increase of US$35,740 | We had a significantly higher cash balance in the first quarter of the current period as compared to the prior year, which led to higher interest income in the current period. Most of the additional cash was used to pay down a portion of the Credit Facility at various intervals during the remainder of the 12 months ended December 31, 2024. |

---

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In addition, we recognized a current tax expense of US$0.5 million during the year ended December 31, 2024 (2023 - US $0.4 million); the current tax expense relates to withholding taxes payable on royalty revenue earned from the Mercedes asset. A deferred tax expense of US$1.1 million was incurred in the current period; this compares to a US$0.2 million deferred tax expense in the prior period. The deferred tax expense in the current period relates the positive change in fair value of the Greenstone Gold Interest which led to greater income in the quarter, offset by the impairment of the Mercedes asset for accounting purposes, which resulted in the reversal of some of the deferred tax liability recognized on royalty and other assets.

**Summary of Quarterly Results**

The following table is a summary of the Company's financial results and position for the 8 most recently completed quarters.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** |
| all amounts in U.S dollars<sup>**1**</sup> | **Jun. 30, 2025** | **Mar. 31, 2025** | **Dec. 31, 2024** | **Sep.30, 2024** | **Jun. 30, 2024** | **Mar. 31, 2024** | **Dec. 31, 2023** | **Sep. 30, 2023** |
| Total revenue | 4825637 | 3453523 | 3248816 | 3178156 | 2900661 | 2697015 | 1918755 | 356476 |
| Net income (loss) | 170487 | 1784211 | (7260771) | 3863746 | 1123370 | (173494) | 2073435 | (1175004) |
| Other comprehensive income (loss) | (325120) | 52257 | (119613) | (55113) | (342278) | 710534 | 249708 | (90755) |
| Basic income (loss) per share | 0.00 | 0.00 | (0.02) | 0.01 | 0.00 | 0.00 | 0.01 | (0.01) |
| Diluted income (loss) per share | 0.00 | 0.00 | (0.02) | 0.01 | 0.00 | 0.00 | 0.00 | (0.01) |
| Weighted average shares (basic) | 465702586 | 462071715 | 461558939 | 447136981 | 326255140 | 284482572 | 234802164 | 168773761 |
| Weighted average shares (diluted) | 474268713 | 470022017 | 461558939 | 453884107 | 340705550 | 284482572 | 234802164 | 168773761 |
| Total assets | 269829966 | 231692758 | 230248545 | 240233714 | 225151605 | 152096795 | 157738602 | 76105304 |
| Long-term liabilities<sup>3</sup> | 55646945 | 2122686 | 2070407 | 5356450 | 12363853 | 20428285 | 27489861 | 16039352 |
| Attributable GEOs<sup>2</sup> | 1475 | 1211 | 1232 | 1288 | 1237 | 1308 | 959 | 185 |
| Average realized gold price per ounce | 3272 | 2853 | 2636 | 2468 | 2346 | 2063 | 2001 | 1928 |
| Average cash cost per attributable GEO<sup>2</sup> | 500 | 495 | 449 | 403 | 398 | 332 | 291 |  |
| Average cash cost margin<sup>2</sup> | 84% | 83% | 83% | 84% | 83% | 84% | 85% |  |
| Operating cash inflows (outflows) before working capital changes<sup>2</sup> | 3208273 | 1410783 | 1137240 | 2003873 | 1779161 | 1620339 | 799820 | (144130) |
| Cash flows per share before working capital changes<sup>2</sup> | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.00 | (0.00) |
| EBITDA<sup>2</sup> | 8072255 | 3414188 | (7847101) | 6682525 | 2912346 | 1652447 | 3937889 | (647443) |
| Adjusted EBITDA<sup>2</sup> | 2219517 | 1486836 | 1418145 | 1638648 | 1607013 | 618352 | 223943 | (647443) |

---

1. Sum of all the quarters may not add up to the annual total due to rounding.

2. See "Non-IFRS measures" directly below.

3. In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendments were effective for annual periods beginning on or after January 1, 2024 and applied retrospectively. The Company adopted the narrow scope amendments on January 1, 2024. These amendments resulted in the Company recognizing the Beedie Convertible Loan as a current liability and a portion of the Sandstorm Convertible Note as a current liability as at December 31, 2023. This is explained in the notes to the financial statements of the Company for the year ended December 31, 2024.

**Non-IFRS Measures**

This Registration Statement contains certain non-IFRS measures, including (i) Attributable Gold Equivalent Ounces ("GEOs"), (ii) Average cash cost per Attributable Gold Equivalent Ounce (iii) Average cash cost margin (iv) Operating cash inflows (outflows) before working capital changes (v) Cash flows per share before working capital changes (vi) EBITDA and (vii) Adjusted EBITDA (the "Non-IFRS Measures"). The Non-IFRS measures are not standard measures under IFRS and our method of calculating the Non-IFRS Measures may differ from the methods used by other issuers. Therefore, our Non-IFRS measures may not be comparable to similar measures presented by other issuers. See below for a description of each non-IFRS measure and a reconciliation to the nearest IFRS measure for the period.

------

**Attributable Gold Equivalent Ounces** is calculated by converting our royalty revenue and copper sales to a GEO basis by dividing the royalty revenue plus copper sales for a period by the average gold price based on the LBMA Gold Price PM Fix per ounce for the same respective period. Total Attributable GEOs sold includes the GEOs from our royalty revenue and copper sales plus the gold ounces sold from the Greenstone gold interest. We present Attributable GEOs as it believes that this is useful information to allow investors to evaluate our performance in comparison to other streaming and royalty companies in the precious metals mining industry that present results on a similar basis.

For the three months ended:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in USD, except Total Attributable<br>GEOs)** | **Jun. 30, 2025** | **Mar. 31, 2025** | **Dec. 31, 2024** | **Sep. 30, 2024** | **Jun. 30, 2024** | **Mar. 31, 2024** | **Dec. 31, 2023** | **Sep. 30, 2023** |
| Revenue | 4825637 | 3453523 | 3248816 | 3178156 | 2900661 | 2697015 | 1918755 | 356476 |
| DIVIDED BY: |  |  |  |  |  |  |  |  |
| Average realized gold price per ounce | 3272 | 2853 | 2636 | 2468 | 2346 | 2063 | 2001 | 1928 |
| **Total Attributable GEOs** | **1475** | **1211** | **1232** | **1288** | **1237** | **1308** | **959** | **185** |

---

**Average cash cost per Attributable GEO** is calculated by dividing the Company's cost of sales, excluding depletion and other non-cash cost of sales by the number of Attributable GEOs (described above). We present average cash cost per Attributable GEO as we believe that this is useful information to allow investors to evaluate our performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry who present results on a similar basis.

**Average cash cost margin** is calculated by dividing the difference between the Average realized gold price per ounce and the Average cash cost per Attributable GEO by the Average realized gold price per ounce. We present average cash cost margin as it believes that this is useful information to allow investors to evaluate our performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry who present results on a similar basis.

For the three months ended:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in USD, except Total Attributable<br>GEOs)** | **Jun. 30, 2025** | **Mar. 31, 2025** | **Dec. 31, 2024** | **Sep. 30, 2024** | **Jun. 30, 2024** | **Mar. 31, 2024** | **Dec. 31, 2023** | **Sep. 30, 2023** |
| Cost of sales (excluding depletion) | 3490318 | 2994723 | 2765245 | 2593325 | 2460325 | 2170543 | 1396675 |  |
| Less: non-cash cost of sales related to GPA | (2752820) | (2395778) | (2212196) | (2074660) | (1968260) | (1736434) | (1117340) |  |
| **Cash cost of sales** | **737498** | **598945** | **553049** | **518665** | **492065** | **434109** | **279335** | **-** |
| DIVIDED BY: |  |  |  |  |  |  |  |  |
| Total Attributable GEO | 1475 | 1211 | 1232 | 1288 | 1237 | 1308 | 959 | 185 |
| **Average cash cost per Attributable GEO** | **500** | **495** | **449** | **403** | **398** | **332** | **291** | **-** |
| **Average cash cost margin** | **84%** | **83%** | **83%** | **84%** | **83%** | **84%** | **85%** | **-** |

---

**Operating Cash inflows (outflows) before working capital changes** is calculated by adding back the decrease or subtracting the increase in changes in non-cash working capital (being trade and other receivables and prepaid assets and trade and other payables) to or from cash provided by (used in) operating activities. We present cash flows from operating activities before changes in non-cash working capital as it believes this presents a useful measure of our ability to generate cash to cover operating expenses from its cash-flowing royalties.

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**Cash flows per share before working capital changes** is calculated by dividing the cash flow from operating activities before working capital changes by the weighted average number of our Common Shares outstanding during the period. We present cash flows from operating activities before changes in non-cash working capital on a per share basis as it believes this presents a useful measure for the shareholders to evaluate our performance.

For the three months ended:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Jun. 30, 2025**<br>**$** | **Mar. 31, 2025**<br>**$** | **Dec. 31, 2024**<br>**$** | **Sep. 30, 2024**<br>**$** | **Jun. 30, 2024**<br>**$** | **Mar. 31, 2024**<br>**$** | **Dec. 31, 2023**<br>**$** | **Sep. 30, 2023**<br>**$** |
| Cash flows provided by (used in) operating activities | 2309888 | 651618 | 2104315 | 1878360 | 1848609 | 1566180 | 678572 | (135502) |
| Working capital changes | 898385 | 759165 | (967075) | 125513 | (69448) | 54159 | 121248 | (8628) |
| **Cash flows from operations before working capital changes** | **3208273** | **1410783** | **1137240** | **2003873** | **1779161** | **1620339** | **799820** | **(144130)** |
| Weighted average ordinary shares outstanding | 465702586 | 462071715 | 461558939 | 447136981 | 326255140 | 284482572 | 234802164 | 168773761 |
| **Cash flows from operations before working capital changes per share** | **0.01** | **0.00** | **0.00** | **0.00** | **0.01** | **0.01** | **0.00** | **(0.00)** |

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**EBITDA** refers to earnings (or loss) determined in accordance with IFRS, before finance and interest expense, interest income, income tax expense (recovery) and depreciation (including depletion) and amortization. This measure is used by management and investors to determine the ability of an issuer to generate cash from operations. Management believes this measure is a useful supplemental measure from which to determine our ability to generate cash available for working capital requirements, investment expenditures and income taxes.

**Adjusted EBITDA** adjusts EBITDA to exclude any non-cash cost of sales, one-off impairment charges and gains/loss on assets and liabilities which are market-to-market each reporting period. Management believes this measure is a useful supplemental measure from which to determine our ability to generate cash available for working capital requirements, investment expenditures and income taxes.

For the three months ended:

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- 89 - <br>

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Jun. 30, 2025**<br>**$** | **Mar. 31, 2025**<br>**$** | **Dec. 31, 2024**<br>**$** | **Sep. 30, 2024**<br>**$** | **Jun. 30, 2024**<br>**$** | **Mar. 31, 2024**<br>**$** | **Dec. 31, 2023**<br>**$** | **Sep. 30, 2023**<br>**$** |
| Net income (loss) | 170487 | 1784211 | (7260771) | 3863746 | 1123370 | (173494) | 2073435 | (1175004) |
| Finance and interest expense | 6592138 | 627944 | 669165 | 802281 | 995341 | 1112352 | 1114101 | 307858 |
| Income taxes | 661511 | 775320 | (1407977) | 1825567 | 620932 | 535195 | 526937 | 89119 |
| Interest income | (12871) | (11443) | (17906) | (35231) | (14754) | (80328) | (40773) | (55002) |
| Depletion | 660990 | 238156 | 170388 | 226162 | 187457 | 258722 | 264189 | 185586 |
| **EBITDA** | **8072255** | **3414188** | **(7847101)** | **6682525** | **2912346** | **1652447** | **3937889** | **(647443)** |
| Non-cash cost of sales - Greenstone gold interest | 2752820 | 2395778 | 2212196 | 2074660 | 1968260 | 1736434 | 1117340 |  |
| Change in fair value of Greenstone gold interest | (5432758) | (4211215) | (1099292) | (6624041) | (3951048) | (2385335) | (4834977) |  |
| Change in fair value of derivative liability | (3172800) | (111915) | (197658) | (494496) | 677455 | (385194) | 3691 |  |
| Adjustment for Impairment of royalty interest |  |  | 8350000 |  |  |  |  |  |
| **Adjusted EBITDA** | **2219517** | **1486836** | **1418145** | **1638648** | **1607013** | **618352** | **223943** | **(647443)** |

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**Select Annual Information**

Selected annual information from the audited financial statements for the years ended December 31, 2024, December 31, 2023 and December 31, 2022 is presented in the table below. The financial data below has been prepared in accordance with IFRS and is reported in US dollars.

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| | | | |
|:---|:---|:---|:---|
| all amounts in U.S dollars | **As at and for the year ended Dec.<br>31, 2024** | **As at and for the year ended Dec.<br>31, 2023** | **As at and for the year ended Dec.<br>31, 2022** |
| Royalty Revenue | 12024648 | 3139677 | 1156019 |
| Operating Income (Loss) | 1377637 | (216652) | (868004) |
| Net loss | (2447150) | (3124148) | (2245013) |
| Total assets | 230248545 | 157738602 | 79210658 |
| Total non-current liabilities | (2070407)<sup>**1**</sup> | (27489861)<sup>**1**</sup> | (15355812) |

---

<sup>1.</sup> In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendments were effective for annual periods beginning on or after January 1, 2024 and applied retrospectively. The Company adopted the narrow scope amendments on January 1, 2024. These amendments resulted in the Company recognizing the Beedie Convertible Loan as a current liability and a portion of the Sandstorm Convertible Note as a current liability as at December 31, 2023. This is explained in the notes to the financial statements of the Company for the year ended December 31, 2024.

**B. Liquidity and Capital Resources**

As at June 30, 2025, we had a cash balance of US$1.1 million. We use excess cash in order to pay down outstanding amounts on the BMO Credit Facility in order to reduce the amount of interest expense which we incur. We aim to maintain a cash balance of approximately $1.0 million in order to meet working capital requirements. Our cash and cash equivalents balance is held in a combination of US dollars and Canadian dollars.

**Sources of liquidity:** As of the date of this Registration Statement, we have two revenue-generating royalties, one revenue-generating stream, and monthly cash flows from the Greenstone GPA, which, together with our working capital, are expected to provide sufficient cash for Versamet to cover all operating expenses and working capital requirements for at least 12 months from June 30, 2025 as well as for the long-term.

As at June 30, 2025, we had $7.0 million undrawn on its BMO Credit Facility which was available for us as a source of liquid asset; undrawn funds on the BMO Credit Facility are currently our only unused source of liquid assets. We intend to grow through the acquisition of additional royalties, streams and other interests, and may raise money in future through equity offerings, however, capital markets may not be receptive to offerings of new equity from treasury or debt, whether by way of private placements or public offerings.

------

**Debt**

**Revolving Credit Facility**

We entered into the US$30 million Credit Facility on October 31, 2023. Transaction costs of US$0.7 million were netted against the initial drawdown for accounting purposes and the carrying balance is accreted to face value over the expected life of the Credit Facility. Interest expense including accretion of discount of US$810,753 was recognized in the six months ended June 30, 2025 (2024 - US$818,681) in relation to the Credit Facility.

On April 30, 2025, we entered into the Credit Facility amending agreement, whereby the facility was increased from US$30 million with a US$15 million accordion to US$60 million with a US$15 million accordion. With the amendment, the maturity was updated to April 30, 2028. Between April 30, 2025 and May 1, 2025, we drew down a total of US$55 million under the Credit Facility (as amended) in order to repay the full amount of the Beedie Convertible Loan (see below) and also to complete the acquisition of the Kolpa stream under the terms of the Kolpa CPA.

The amounts drawn on the Credit Facility (as amended) are subject to interest at the Secured Overnight Financing Rate plus 2.25% to 3.50% per annum (subject to a base rate option), and the undrawn portion of the Credit Facility (as amended) is subject to a commitment fee of 0.5063%-0.7875% per annum, both of which are dependent on our leverage ratio. The principal amount outstanding under the Credit Facility (as amended) at June 30, 2025 was $53 million and the principal outstanding at the date of this Registration Statement is US$51 million.

The Credit Facility (as amended) is secured by a first priority security interest in all of our (and any affiliated entities as defined by the Securities Act (British Columbia)) present and after acquired property.

**Beedie Convertible Loan**

We entered into a US$16.0 million Beedie Convertible Loan on October 31, 2023. The Beedie Convertible Loan has a term of 5 years and matures on October 31, 2028. Interest on the Beedie Convertible Loan consists of an 8% base interest rate and a 1.5% PIK rate, with the PIK rate reducing to 1.0% upon the public listing of our Company. We have the option to pay 25-50% of the base interest rate in Common Shares, subject to certain conditions. Amounts outstanding under the Beedie Convertible Loan can be converted into Common Shares, at the option of Beedie Capital, at a price of $0.84 per Common Share. We may prepay the Beedie Convertible Loan, subject to certain fees. Additionally, we have the right to force the conversion of up to 50% of the convertible loan should the 30-day volume-weighted average price of Versamet (once public) equal or exceed C$1.47 per Common Share.

On April 23, 2025, we exercised our right under the Beedie Convertible Loan to fully repay the principal outstanding. In accordance with the terms of the Beedie Convertible Loan, we were required to pay a Make Whole Fee as a result of prepaying prior to the maturity date. On April 30, 2025, we paid a total of $26.1 million to fully extinguish the convertible note. Commensurate with the repayment of the Beedie Convertible Loan, all of the security held by Beedie over the present and after acquired property was released.

During the six months ended June 30, 2025, PIK interest of US$79,140 (2024 - US$119,635) was added to the principal of the Beedie Convertible Loan. Accretion of US$3,459,533 (2024 - US$268,451) was recorded and added to the carrying value of the Beedie Convertible Loan during the six months ended June 30, 2025.

**Sandstorm Convertible Note**

In conjunction with the purchase of assets from Sandstorm on June 28, 2022, we issued the Sandstorm Convertible Note with a face value of US$31.4 million. The Sandstorm Convertible Note was interest-free and had a maturity date of June 28, 2032.

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The Sandstorm Convertible Note could be prepaid at any time by Versamet in cash or could be prepaid in a variable number of Common Shares as outlined in our Financial Statements. Further, Sandstorm could convert the Sandstorm Convertible Note into Common Shares as outlined in the Company's Financial Statements.

The fair value of the Sandstorm Convertible Note at initial recognition was considered to be US$14.6 million; all of which was recorded as a financial liability. On three occasions during quarter ended December 31, 2023, we exercised our right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note, in whole or in part, at any time, provided no event of default has occurred, by delivering fully paid and non-assessable Common Shares to Sandstorm. During 2023, we satisfied a total of US$17.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 33.8 million Common Shares to Sandstorm at a price of $0.70 per common share. On June 5, 2024, we exercised our right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note by delivering fully paid and non-assessable Common Shares to Sandstorm. We satisfied the remaining principal balance of US$14.2 million by issuing 24.2 million Pre-Split Common Shares to Sandstorm at a price of C$0.80 per Pre-Split Common Share. The remaining principal amount (face value) outstanding under the Sandstorm Convertible Note as at June 30, 2025 is $nil.

**Commitments and contractual obligations**

The following table shows our Company's contractual obligations as they fall due as at June 30, 2025 and December 31, 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Within 1 year**<br>**US$** | **1-5 years**<br>**US$** | **Over 5 years**<br>**US$** | **Total**<br>**Jun. 30, 2025**<br>**US$** | **Total**<br>**Dec. 31, 2024**<br>**US$** |
| Accounts payable and accrued liabilities | 151094 |  |  | 151094 | 1232088 |
| Beedie Convertible Loan <sup>**1**</sup> |  |  |  |  | 21784186 |
| Credit Facility <sup>**1**</sup> | 4068709 | 60468590 |  | 64537299 | 1152948 |
| **Total** | **4219803** | **60468590** | **-** | **64688393** | **24169222** |

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1. The Beedie Convertible Loan and the RCF estimated interest amounts are included in the table above. In accordance with the Beedie Convertible Loan, a proportion of the interest expense included in the table above can be paid in Common Shares. The Company presents the Beedie Convertible Loan as a current liability due to the ability of Beedie Capital to convert all of the outstanding principal into Common Shares any at any time, however, the table above shows contractual cash flow obligations. The Beedie Convertible Loan was fully repaid on April 30, 2025 (see above).

We have no other liabilities other than those presented in the table above or discussed elsewhere in this Registration Statement, and has no commitments for capital expenditures or contractual obligations. We had no commitments for capital expenditures as at December 31, 2024 or as at June 30, 2025. We intend to grow through the acquisition of additional royalties, streams and other interests, however, capital markets may not be receptive to offerings of new equity from treasury or debt, whether by way of private placements or public offerings. The Company's growth and success may be dependent on external sources of financing which may not be available on acceptable terms.

**C. Research and Development, Patents and Licenses**

We did not conduct research and development activities in the last three years.

**D. Trend Information**

We are not aware of any material recent trends in production, sales and inventory, costs, selling prices, or the state of the order book to report, or any known trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily be indicative of future operating results or financial condition.

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**E. Critical Accounting Estimates**

**Accounting for Acquisition of Assets and Stream, Royalty and Other Interests** 

The Company's business is the acquisition of royalties and other interests. Each royalty and other interest has its own unique terms and judgement is required to assess the appropriate accounting treatment. The determination of whether an acquisition should be accounted for as royalty and other interest or a financial instrument requires the consideration of factors such as (i) the terms of the agreement; (ii) the applicability of the own use exemption under IFRS 9 Financial Instruments ("**IFRS 9**"); and (iii) whether there is a contractual commitment to repay amounts under the royalty and other interests. The assessment of whether an acquisition meets the definition of a business or whether assets are acquired is another area of key judgement. If deemed to be a business combination, applying the acquisition method to business combinations requires each identifiable asset and liability to be measured at its acquisition date fair value. The excess, if any, of the fair value of the consideration over the fair value of the net identifiable assets acquired is recognized as goodwill. The determination of the acquisition date fair values often requires management to make assumptions and estimates about future events. The assumptions and estimates with respect to determining the fair value of royalty and other interests generally require a high degree of judgement, and include estimates of Mineral Reserves and Resources acquired, future production, metal prices, discount rates, conversion of Resources and exploration potential, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets and liabilities.

**Fair Value of Greenstone Gold Interest**

The fair value of the Greenstone Gold Interest was determined by calculating the present value of the future gold deliveries under the Greenstone GPA. The determination of the fair value of the Greenstone Gold Interest at period end requires the use of estimates and assumptions for commodity prices, discount rates and the timing of gold receipts received by the Company under the agreement with Equinox. Changes in any of the estimates and/or assumptions used in determining the fair value could impact the fair value of the Greenstone Gold Interest at period end and the associated change in fair value of the Greenstone Gold Interest recorded in the Statement of Loss and Comprehensive Loss during the period. Changes in each of the following key assumptions and estimates would have the following impact on the value of the Greenstone GPA as at December 31, 2024 (with an associated movement in the Statement of Loss and Comprehensive Loss):

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| | | |
|:---|:---|:---|
| **Key assumption** | **Sensitivity applied to key<br>assumption** | **Impact on Greenstone GPA asset<br>value at December 31, 2024** |
| Gold price | +/- 10% | +/- US$6.2 million |
| Discount rate | +/- 1% | + US$2.9 million / - US$3.2 million |

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**Fair Value of Beedie Convertible Loan Derivative Liability**

On October 31, 2023, Versamet entered into Beedie Convertible Loan. The Beedie Convertible Loan contains multiple embedded derivatives which require bifurcation; as all of the embedded derivatives relate to the same risk exposures (foreign exchange on the conversion price and the value of the underlying common shares of the Borrower), they may be combined and accounted for as a single compound embedded derivative. The embedded derivative was fair valued utilizing a combination of the discounted cash flow and partial differential equation modeling approaches. In valuing this embedded derivative, certain estimates and assumptions were used including the Company's share price, volatility, a credit rating, risk-free rate and a credit spread. To the extent that any of these estimates and assumptions changed upon initial recognition, this would have impacted the initial value of the derivative liability and the portion of the Beedie Convertible Loan recorded as a convertible debt liability on the face of the Statement of Financial Position. Such a change in the allocation of value between the derivative liability and the convertible debt liability would also impact the accretion charges and fair value movements in the Statement of Loss and Comprehensive Loss during future periods. Subsequent valuation of the derivative liability each reporting period uses similar estimates and assumptions which could materially impact the value of the derivative liability as at December 31, 2024. Changes in the key assumptions and estimates of the valuation of the derivative liability would have the following impact on the valuation of the derivative liability as at December 31, 2024 (with an associated movement in the Statement of Loss and Comprehensive Loss):

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- 93 - <br>

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| | | |
|:---|:---|:---|
| **Key assumption** | **Sensitivity applied to key<br>assumption** | **Impact on derivative liability value<br>at December 31, 2024** |
| Risk free rate | + 1% | US$305,606 |
| Credit spread | + 1% | US$297,746 |
| Volatility | 10% increase | (US$133,138) |
| Stock price | 10% increase | US =$700,680 |

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**Attributable Reserve and Resource Estimates**

Royalty and other interests are a significant class of assets of the Company, with a carrying value of US$165.4 million at December 31, 2024 (December 31, 2023 - US$92.7 million). This amount represents the capitalized expenditures related to the acquisition of the royalty and other interests net of accumulated depletion and any impairments. Where possible, the Company estimates the Mineral Reserves and Resources relating to each interest. Mineral Reserves and Resources are estimates of the amount of minerals that can be economically and legally extracted from the mining properties at which the Company has royalty interests, adjusted where applicable to reflect the Company's percentage entitlement to minerals produced from such mines. The public disclosures of Mineral Reserves and Resources that are released by the operators of the interests involve assessments of geological and geophysical studies and economic data and the reliance on a number of assumptions, including commodity prices and production costs. The estimates of Mineral Reserves and Resources may change based on additional knowledge gained subsequent to the initial assessment. Changes in the estimates of Mineral Reserves or Resources, or the date of initial production from the mine may impact the carrying value of the Company's royalty and other interests and depletion charges. Stream, royalty and other interests related to producing mines are bifurcated into a depletable and non-depletable balance. The split between the depletable and non-depletable balances is based on a discounted cash flow analysis of the mine plan in question for that royalty or stream. Included in the depletable balance is 100% of Mineral Reserves and a portion of Mineral Resources. Included in the non-depletable balance are the remaining Mineral Resources (not included in the depletable balance) and any exploration potential, if applicable. If estimates of the value of the depletable and non-depletable balances of a mining property prove to be inaccurate, this could increase the amount of future depletion expense which would reduce the Company's net income and net assets. Changes to depletion rates are accounted for prospectively.

**Impairment of Royalty and Other Interests**

Assessment of impairment of royalty and other interests requires the use of judgments, assumptions and estimates when assessing whether there are any indicators that could give rise to the requirement to conduct a formal impairment test as well as in the assessment of their fair values. The assessment of the fair values of royalty and other interests requires the use of estimates and assumptions for Mineral Reserves and Resources, future production, commodity prices, discount rates, conversion of Resources and exploration potential, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may include estimates related to (i) dollar value per unit of mineral reserve/resource; (ii) net asset value multiples (iii) cash-flow multiples; (iv) comparable transactions and (v) market capitalization of comparable assets. Changes in any of the estimates used in determining the fair value of the royalty and other interests could impact the impairment analysis.

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**Functional Currency** 

The functional currency of the Company is the currency of the primary economic environment in which the entity operates. Determination of functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders functional currency if there is a change in events and conditions which determine the primary economic environment.

**Income Taxes** 

The interpretation of new and existing tax laws or regulations in any of the countries in which our royalty and other interests are located or to which shipments of commodities are made or received requires the use of judgment. Differing interpretation or changes to these laws or regulations could result in an increase in the Company's taxes, or other governmental charges, duties or impositions. In addition, the recoverability of deferred income tax assets, including expected periods of reversal of temporary differences and expectations of future taxable income, are assessed by management at the end of each reporting period and adjusted, as necessary, on a prospective basis.

**Share-based Compensation**

**Stock options** 

The Company utilizes the Black-Scholes option pricing model to estimate the fair value of stock options granted to directors, officers, employees and consultants of the Company. The use of the Black-Scholes option pricing model requires management to make various estimates and assumptions that impact the value assigned to the Options including the expected volatility of the stock price, the risk-free interest rate, dividend yield, the expected life of the Options and the number of options expected to vest. The expected term of the Options granted is determined based on historical data of the average hold period before exercise, cancellation or expiry. Volatility is estimated using the historic stock price of similar listed entities, the expected term and the number of equity instruments expected to vest is estimated using management judgement. Expected volatility is estimated with reference to the historical volatility of the share price of a peer group of companies as applicable given that the Company's shares have not been publicly listed. Any changes in these assumptions and estimates could change the amount of share-based compensation recognized in profit or loss and the share-based compensation reserve. Significant assumptions related to share-based payments are disclosed in Note 11 of the Annual Financial Statements.

**Restricted Share Units**

The fair value of RSUs is determined by the market value of the underlying shares at the date of the grant. Under our RSU Plan, the Board of Directors has the discretion to determine upon grant whether the RSUs are to be settled in cash or equity.

Where we do not have a present obligation to settle the issued RSUs in cash, the RSUs issued are treated as equity-settled instruments. The fair value of RSUs is determined using the fair value of the RSU at the date of grant and is adjusted based on the number of equity instruments expected to ultimately vest. The fair value of the RSUs at the date of grant are expensed over the vesting periods with a corresponding increase to equity. At the end of each reporting period, we re-assess our estimates of the number of awards that are expected to vest and recognize the impact of any revisions to this estimate in equity.

**Performance Restricted Share Units** 

We use a Monte Carlo pricing model to estimate the fair value of PRSUs granted to our directors, officers, employees and consultants. The use of the Monte Carlo pricing model requires management to make various estimates and assumptions that impact the value assigned to the PRSUs including assumptions with respect to share price, expected life, share price volatility, correlation assumptions and discount rates. Changes in these assumptions and estimates could change the fair value of the amount of share-based compensation recognized in profit or loss and the share-based compensation reserve. Significant assumptions related to PRSUs are disclosed in Note 11 of the Annual Financial Statements**.**

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**ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. Directors and Senior Management**

The following table sets forth information regarding our directors, senior management, and certain employees upon whose work we are dependent.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;**Age** | &nbsp;&nbsp;**Position** | &nbsp;&nbsp;**First Appointed as<br>Director/Senior Management** |
| &nbsp;&nbsp;Gregory Smith | &nbsp;&nbsp;49 | &nbsp;&nbsp;Non-Executive Chair and Director | &nbsp;&nbsp;June 28, 2022/ November 7, 2022 |
| &nbsp;&nbsp;Daniel O'Flaherty | &nbsp;&nbsp;43 | &nbsp;&nbsp;Chief Executive Officer and Director | &nbsp;&nbsp;April 1, 2025 |
| &nbsp;&nbsp;Victoria McMillan | &nbsp;&nbsp;44 | &nbsp;&nbsp;Chief Financial Officer | &nbsp;&nbsp;June 28, 2022 |
| &nbsp;&nbsp;Marcel de Groot | &nbsp;&nbsp;52 | &nbsp;&nbsp;Director | &nbsp;&nbsp;January 31, 2022 |
| &nbsp;&nbsp;Michael McDonald | &nbsp;&nbsp;40 | &nbsp;&nbsp;Director | &nbsp;&nbsp;July 31, 2024 |
| &nbsp;&nbsp;Elizabeth McGregor | &nbsp;&nbsp;48 | &nbsp;&nbsp;Director | &nbsp;&nbsp;May 12, 2025 |
| &nbsp;&nbsp;Mark Backens | &nbsp;&nbsp;63 | &nbsp;&nbsp;Director | &nbsp;&nbsp;May 12, 2025 |
| &nbsp;&nbsp;Craig Rollins | &nbsp;&nbsp;44 | &nbsp;&nbsp;General Counsel and Corporate Secretary | &nbsp;&nbsp;January 31, 2022/ January 1, 2024 |

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**Gregory Smith.** Mr. Smith was fundamental in the creation and launch of Versamet since its launch in 2022. Mr. Smith was the President, Chief Executive Officer and a director of Equinox until July 21, 2025. Prior to his time at Equinox, Mr. Smith was the Chief Executive Officer of JDL Gold Corp. at the time of its merger with Luna Gold Corp., where he helped to lead the team through four mergers and an asset acquisition to grow the company from a single-asset developer to a multi-asset producer. Prior to his role as Chief Executive Officer of JDL Gold Corp., he held the roles of Chief Executive Officer and founder of Anthem United, President and Chief Executive Officer of Esperanza Resources prior to its sale to Alamos Gold Inc., and Chief Financial Officer of Minefinders Corporation Ltd. prior to its sale to Pan American Silver Corp. Previously Mr. Smith has held management positions at both Goldcorp Inc. and the mining division of KPMG LLP, and he also acted as a director of Premier Royalty prior to its sale to Sandstorm. Mr. Smith is a Canadian Chartered Professional Accountant.

**Daniel O'Flaherty.** Most recently, Mr. O'Flaherty held the position of Chief Executive Officer of Maverix Metals Inc. which he co-founded in 2016. Maverix Metals was sold to Triple Flag Precious Metals Corp. in 2022 for over US$700 million. He has 20 years of investment banking and executive officer experience in the mining industry. Mr. O'Flaherty was previously the Executive Vice President of Corporate Development at Esperanza Resources, which was acquired by Alamos Gold in 2013. In addition to serving as Executive Vice President of two gold development companies, both of which were acquired, Mr. O'Flaherty was formerly a director in the investment banking team of Scotia Capital in Vancouver focused exclusively on the metals and mining sector where he specialized in providing advice to clients on acquisitions, divestitures, mergers, and hostile takeover defenses as well as on equity and debt financings. Mr. O'Flaherty holds a Bachelor of Commerce degree, with honors, from the University of British Columbia.

**Marcel de Groot.** Mr. de Groot is a co-founder and the President of Pathway Capital Ltd. Mr. de Groot has over 20 years of experience in providing strategic support to both private and public companies within the metals and mining space. He has been involved in a number of mergers and acquisitions, financings, and re-organizations including Equinox and Versamet as well as the acquisitions of CIC Resources Inc. (Northern Dynasty Minerals Ltd.), Asanko Gold Inc. acquisition of PMI Gold Corporation, Esperanza Resources Corp. (Alamos Gold Inc.), and Underworld Resources Inc. (Kinross Gold Corp.). Mr. de Groot holds a Bachelor of Commerce degree from the University of British Columbia and is a Chartered Professional Accountant. Mr. de Groot is also currently Director of Copper Standard Resources Inc. (formerly Level 14 Ventures Ltd.) ("Copper Standard").

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**Michael McDonald.** Mr. McDonald, currently Vice President, Investor Relations, Corporate Development & Treasury at B2Gold., has more than 15 years of experience in capital markets and joined B2Gold from Gold Standard Ventures Corp. where he served as Vice President, Corporate Development & Investor Relations from 2021. Prior to joining Gold Standard Ventures Corp., he held corporate development and investor relations roles with SSR Mining Inc. from 2010 to 2017, and from 2019 to 2020. From 2017 to 2019, he was Vice President, Metal Sales for Goldcorp Inc. Mr. McDonald started his career in investment banking with CIBC and holds a B.Com. in Finance from the University of British Columbia. Michael McDonald currently serves on our board pursuant to B2Gold's nomination right. No other shareholder has exercised any such nomination right.

**Elizabeth McGregor.** Ms. McGregor has over 20 years of financial experience and over 15 years of experience in the mining sector. She was most recently the Executive Vice-President and Chief Financial Officer of Tahoe Resources Inc. and was previously at Goldcorp and KPMG earlier in her career. Ms. McGregor has a wide variety of executive financial experience, including debt financing, stakeholder management, board reporting, and corporate, mine site and project management experience. Ms. McGregor currently serves as a director on the board of Kinross Gold Corporation and Orla Mining Ltd. Ms. McGregor has a B.A. (Hons) from Queen's University and is a Canadian Chartered Professional Accountant.

**Mark Backens.** Mr. Backens has over 35 years of global mining experience, most recently serving as Chief Executive Officer of Alio Gold Inc. Previous experience includes directorships with Alio Gold, Timmins Gold, Anthem United, New Strike Capital, Candelaria Mining and Soho Resources. Mr. Backens other experience includes Director of Investment Banking - Mining for Scotia Capital and senior management roles with Meridian Gold, Placer Dome and Goldcorp in areas of engineering, mine construction, mine management and corporate development. Mr. Backens holds a Bachelor of Science Degree in Geological Engineering from South Dakota School of Mines and also holds Partners Directors and Senior Officers Certification. Mr. Backens was formerly a member of AIME, CIM and a Professional Geologist.

**Victoria McMillan.** Ms. McMillan has been the Chief Financial Officer of Versamet since its launch in 2022. Ms. McMillan has over 20 years of financial experience working across a variety of sectors with a focus on mining and the royalty industry. She has led financial reporting, regulatory, tax and risk management functions. Ms. McMillan has also held various other finance roles within the mining sector including at two mid-tier gold mining companies where she was involved in the execution of mergers and acquisitions, a U.S. listing, as well as the establishment and management of a gold sales function. Ms. McMillan's experience includes 8 years with PricewaterhouseCoopers in both London, United Kingdom, and Vancouver, where she was a senior manager within the assurance practice. Ms. McMillan currently serves as a director on the board of Lundin Mining Corporation and recently completed a four year term from 2021- 2024 as a director on the board of BC Hydro, where she chaired the Audit and Finance Committee. Ms. McMillan holds a Bachelor of Management Studies from the University of Nottingham and she is a Chartered Professional Accountant.

**Craig Rollins.** Mr. Rollins was fundamental in the creation and launch of Versamet since its launch in 2022. Mr. Rollins is a corporate and securities lawyer advising companies operating in the mining and natural resource sectors. Mr. Rollins' expertise includes complex corporate and commercial transactions, mergers and acquisitions, options and joint ventures, corporate governance, regulatory and stock exchange compliance, stock exchange listings and public offerings. Mr. Rollins has in-house legal counsel experience with several companies in the mining and natural resource sectors, including Pathway Capital Ltd. and Copper Standard, and also brings experience from a preeminent Vancouver based law firm. Mr. Rollins holds his undergraduate and law degrees from the University of British Columbia and the University of Windsor, respectively, and is a practicing member of the Law Society of British Columbia.

There are no family relationships between any of our directors and officers.

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**Public Company Board Memberships**

The following table identifies other public companies for which members of the Board currently serve as directors.

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| | |
|:---|:---|
| **Director** | **Other Current Board Appointments** |
| Marcel de Groot<br>| Director of Copper Standard Resources Inc. (CSE)<br>Director of Drummond Ventures Ltd. (TSX-V)<br>Green Mountain Resources Ltd. (unlisted)<br>Carbon Streaming Corporation (Cboe Global Markets) |
| Daniel O'Flaherty | Director of Copper Standard Resources Inc. (CSE) |
| Elizabeth McGregor | Director of Kinross Gold Corporation (TSX) (NYSE American)<br>Orla Mining Ltd. (TSX) (NYSE American) |

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**B. Compensation**

The following table sets out the compensation paid to our directors and senior management for the fiscal year ended December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Table of Compensation (excluding compensation securities)** | **Table of Compensation (excluding compensation securities)** | **Table of Compensation (excluding compensation securities)** | **Table of Compensation (excluding compensation securities)** | **Table of Compensation (excluding compensation securities)** |
| **Name and<br>position(s)** | **Year<sup>(1)</sup>** | **Base salary<br>(US$)** | **Bonus**<br>**(US$)** | **Total**<br>**Compensation**<br>**(US$)** |
| **Daniel O'Flaherty**,<br>Chief Executive Officer and Director<sup>(</sup><sup>2</sup><sup>)</sup> | 2024 | Nil | Nil | Nil |
| **Victoria McMillan**,<br>Chief Financial Officer<sup>(</sup><sup>3</sup><sup>)</sup> | 2024 | 145645 | 138696<br> Nil | 284341 |
| **Craig Rollins**,<br>General Counsel and Corporate Secretary<sup>(</sup><sup>4</sup><sup>)</sup> | 2024 | 145645 | 138696<br> Nil | 284341 |
| **Greg Smith**,<br>Non-Executive Chair and Director | 2024 | Nil | Nil | Nil |
| **Marcel de Groot**,<br>Director | 2024 | Nil | Nil | Nil |
| **Michael McDonald**,<br>Director<sup>(</sup><sup>5</sup><sup>)</sup> | 2024 | Nil | Nil | Nil |
| **John Armstrong**<br>Former Chief Executive Officer and Director<sup>(</sup><sup>6</sup><sup>)</sup> | 2024 | 254879 | 277392<br> Nil | 532271 |

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<sup>(1)</sup> All compensation in respect of the directors and senior management is paid out in $ and converted to US$ for reporting purposes using the Bank of Canada daily, monthly or annual average exchange rate.

<sup>(2)</sup> Appointed as Interim Chief Executive Officer on February 28, 2025 and Chief Executive Officer and Director on April 1, 2025. Prior to Mr. O'Flaherty's appointment as Chief Executive Officer, Mr. O'Flaherty was an advisor/consultant to the Company and received only Options in such capacity.

<sup>(3)</sup> Appointed Chief Financial Officer on June 28, 2022.

<sup>(4)</sup> Appointed as Corporate Secretary on January 1, 2024. All compensation received by Mr. Rollins was in his capacity as General Counsel.

<sup>(5)</sup> Appointed on July 31, 2024.

<sup>(6)</sup> Acted as Chief Executive Officer and a Director from November 7, 2022 to February 28, 2025. All compensation received by Mr. Armstrong was in his capacity as Chief Executive Officer.

**Compensation Securities**

The following table sets out all compensation securities granted or issued to the directors and senior management by us in the financial year ended December 31, 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** |
| **Name and position(s)** | **Type of<br>compensation<br>security** | **Number of compensation<br>securities, number of<br>underlying securities** | **Date of<br>issue or<br>grant** | **Issue,<br>conversion or<br>exercise price**<br>**($)** | **Expiry date** |
| **Daniel O'Flaherty**, Chief Executive Officer | Options<br>RSUs | 142,857/142,857<br>Nil | January 15, 2024 | 3.50<br>3.50 | January 15, 2029<br>N/A |
| **Victoria McMillan**, Chief Financial Officer | Options<br>RSUs | 37,768/37,768<br>92,321/92,321 | January 15, 2024 | 3.50<br>3.50 | January 15, 2029<br>N/A |
| **Craig Rollins**, General Counsel and Corporate Secretary | Options<br>RSUs | 37,768/37,768<br>92,321/92,321 | January 15, 2024 | 3.50<br>3.50 | January 15, 2029<br>N/A |

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**Compensation Governance**

**Introduction**

The following discussion describes the significant elements of the compensation program for the "named executive officers" ("**NEOs**") of the Company, as such term is defined in Canada's Form 51-102F6V - *Statement of Executive Compensation - Venture Issuers*. During the Company's most recently completed financial year, the NEOs were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• John Armstrong, Former Chief Executive Officer and Director

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Victoria McMillan, Chief Financial Officer

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Craig Rollins, General Counsel and Corporate Secretary

To achieve our strategic business and financial objectives, we need to attract, retain and motivate a highly talented executive team.

We intend to design our executive compensation program to achieve the following objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide competitive compensation opportunities in order to attract and retain talented, high-performing and experienced executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Motivate our executive team to achieve our strategic and financial objectives, including accretively growing our asset base through the creation and acquisition of royalties, streams and other interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Align the interests of our executive officers with the long-term interests of our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Create a strong pay for performance relationship; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide incentives that encourage appropriate levels of risk-taking by our executive team.

We offer our executive officers cash compensation in the form of a base salary and bonus. Additionally, from time to time we grant equity-based compensation under our omnibus equity incentive plan (the "**Omnibus Plan**"). We believe that equity-based compensation awards motivate our executive officers to achieve our strategic and financial objectives, and also align their interests with the long-term interests of our shareholders. While we anticipate that our proposed executive officer compensation program will be effective at attracting and maintaining executive officer talent, we intend to continue evaluating our compensation practices on an ongoing basis to ensure that we are providing competitive compensation opportunities for our executive team. We intend to review the compensation of our executive team on an annual basis. As part of this review process, we expect to be guided by the philosophy and objectives outlined above, as well as other factors that may become relevant as we compete in the market.

**Compensation-Setting Process**

Our Compensation Committee is responsible for assisting the Board in its oversight responsibilities relating to the compensation, nomination, objectives, evaluation and succession of the executive officers of the Company including the Chief Executive Officer and the Chief Financial Officer. The Compensation Committee shall perform the functions customarily performed by compensation committees and any other functions assigned by the Board. See *"- Other Board Committees*".

Our Board will adopt a written charter for our Compensation Committee setting out its responsibilities for designing and administering our compensation programs and reviewing the level and nature of the compensation payable to our directors and executive officers. Our Compensation Committee's oversight will include reviewing objectives and performance and ensuring that total compensation paid is fair, reasonable and consistent with the objectives and philosophy of our compensation program.

**Trading Restrictions** 

All of our directors, officers and employees will be subject to our securities trading policy. This policy will prohibit trading in our securities while in possession of material undisclosed information about the Company. Further, our securities trading policy will prohibit the communication of material non-public information, from insiders to any person, including family or friends. The insiders will also be prohibited from making any recommendations or express opinions on the basis of material non-public information for the purpose of or in the context of trading in the Company's securities of any other public company when having knowledge that has not been generally disclosed.

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The Company will observe blackout periods prior to quarterly and annual financial statements announcements. Regular Blackout Periods will commence (a) one calendar week before the scheduled release of the Company's quarterly financial statements; or (b) two calendar weeks before the scheduled release of the Company's annual financial statements, and end at the opening of the market on the second full trading day following the date of the public disclosure of the applicable financial statements. In addition, the Company may deem it appropriate to apply an extraordinary Blackout Period by issuing notice instructing specified individuals not to trade in the securities of the Company or any other public company under special circumstances and until otherwise notified.

**Components of Compensation**

Compensation of the majority of our executive officers is expected to include three main components: (i) base salary; (ii) bonus; and (iii) long-term equity incentives granted from time to time under the Omnibus Plan. Executive officers will be entitled to the reimbursement of reasonable expense and benefits but perquisites and benefits are not expected to be a significant element of compensation for our executive officers.

**Base Salaries**

Base salary is provided as a fixed source of compensation for our executive officers. Base salaries will be determined on an individual basis taking into account the scope of the executive officer's responsibilities, their prior experience and their position relative to relevant peers in the market. Base salaries will be reviewed annually and may be increased if warranted, or necessary to maintain market competitiveness. In addition, base salaries can be adjusted upwards throughout the year to reflect promotions or other increases in the scope or breadth of an executive officer's role or responsibilities.

**Bonus**

Executive officers will be considered for participation in an annual bonus which will be payable in cash and/or equity at the ultimate election of the Compensation Committee.

**Omnibus Plan**

The material features of our Omnibus Plan are summarized below.

**Purpose**

The purpose of the Omnibus Plan is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to increase the interest in the Company's Directors, Employees and Consultants ("**Eligible Participants**") who share responsibility for the business management and growth of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to provide an incentive to such Eligible Participants to continue their services to the Company or a subsidiary and to motivate such Eligible Participants whose skills, experience, performance and loyalty to the objectives and interests of the Company or a subsidiary are necessary or essential to its success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to reward Eligible Participants for their performance of services while working for the Company or a subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to provide a means through which the Company or a subsidiary may attract and retain able persons to enter its employment or service.

"**Participant**" means any Eligible Participant that is granted one or more Awards (as defined herein) under the Omnibus Plan.

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**Types of Awards**

The Omnibus Plan provides for the grant of Options, RSUs and performance share units ("**PRSUs**" or together with RSUs, "**Share Units**"), share appreciation rights ("**SARs**"), and deferred share units ("**DSUs**") (each an "**Award**" and, collectively, the "**Awards**"). All Awards are granted by an agreement, certificate or other instrument or document evidencing the Award granted under the Omnibus Plan (an "**Award Agreement**").

**Plan Administration**

The Omnibus Plan is administered and interpreted by the Board or, if the Board by resolution so decides, by a committee appointed by the Board. If such committee is appointed for this purpose, all references to the "Board" in the Omnibus Plan will be deemed references to such committee.

Subject to the provisions of the Omnibus Plan, the Board is authorized, in its sole discretion, to make such determinations under, and such interpretations of, and take such steps and actions in connection with, the proper administration and operation of the Omnibus Plan as it may deem necessary or advisable. The interpretation, administration, construction and application of the Omnibus Plan and any provisions thereof made by the Board will be final and binding on the Company, its subsidiaries and all Eligible Participants.

Nothing contained in the Omnibus Plan prevents the Board from adopting other or additional Share Compensation Arrangements (as defined herein) or other compensation arrangements, subject to any required approvals.

**Shares Available for Awards**

The number of Common Shares reserved for issuance, in the aggregate, pursuant to the settlement or exercise of Awards granted under the Omnibus Plan will be equal to a maximum of 10% of the issued and outstanding Common Shares ("**Issued Shares**") from time to time, less the number of Common Shares reserved for issuance pursuant to any other stock option plan, employee stock purchase plan, long-term incentive plan or other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares from treasury (each, a "**Share Compensation Arrangement**").

**Limits on Grants**

1. In no event will the Omnibus Plan, together with all other previously established and outstanding Share Compensation Arrangements, permit at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the maximum aggregate number of Common Shares that are issuable pursuant to all Awards granted or issued to Insiders (as a group) must not exceed 10% of the Issued Shares at any point in time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the maximum aggregate number of Common Shares that are issuable pursuant to all Awards granted or issued in any 12 month period to Insiders (as a group) must not exceed 10% of the Issued Shares, calculated as at the date any Award is granted or issued to any Insider; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the maximum aggregate number of Issued Shares that are issuable pursuant to all Awards granted or issued in any 12 month period to any one Person (as defined and where permitted under the Omnibus Plan, any companies that are wholly owned by that Person) must not exceed 5% of the Issued Shares, calculated as at the date any Award is granted or issued to the Person,

unless the Company has obtained the requisite disinterested shareholder approval.

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2. The maximum aggregate number of Common Shares that are issuable pursuant to all Awards granted or issued in any 12-month period to any one Consultant must not exceed 2% of the Issued Shares, calculated as at the date any Award is granted or issued to the Consultant.

3. The maximum aggregate number of Issued Shares that are issuable pursuant to all Options granted in any 12 month period to all Investor Relations Service Providers in aggregate must not exceed 2% of the Issued Shares, calculated as at the date any Option is granted to any such Investor Relations Service Provider.

4. Investor Relations Service Providers may not receive any Awards other than Options.

5. Upon authorization by the Board of the exercise of an Option on a "cashless exercise" basis pursuant to Section 3.7(3) of the Omnibus Plan or "net exercise" basis pursuant to Section 3.7(4), the number of Options exercised, surrendered or converted, and not the number of Issued Shares actually issued by the Company, will be included in calculating the Option limits set forth in Section 2.4(1)(b) and Section 2.5 of the Omnibus Plan. Notwithstanding the forgoing, any Award that has been settled in cash, cancelled, terminated, surrendered, forfeited or expired without being exercised, and pursuant to which no securities have been issued, will continue to be issuable under the Omnibus Plan.

**Description of Awards**

**Options**

An Option is an option granted by the Company to a participant entitling such participant to acquire a designated number of Common Shares from treasury at the Option Price. For greater certainty, the Company is obligated to issue and deliver the designated number of Common Shares on the exercise of an Option and shall have no independent discretion to settle an Option in cash or other property other than Common Shares issued from treasury. For the avoidance of doubt, no dividend equivalents shall be granted in connection with an Option.

The price per Common Share to be payable upon the exercise of each Option will be determined and approved by the Board when the applicable Option is granted, and will not be less than the Market Price as of the Grant Date, less any discount permitted by the TSXV or if the Common Shares are not listed and posted for trading on the TSXV at a particular date, such other stock exchange or trading platform upon which the Common Shares are listed and posted for trading and which has been designated by the Board (the "**Exchange**"). Under the Omnibus Plan, "Market Price" means (a) if the Common Shares are then listed on the TSXV, the closing price per Common Share on the TSX-V on the last trading day prior to the particular date as of which the Market Price is required to be determined, (b) if the Common Shares are not listed on the TSXV, the closing price per Common Share on any other Exchange on which the Common Shares are then listed (and, if more than one, will be the Exchange on which the majority of trading in the Common Shares occurs) on the last trading day prior to such date, or (c) if the Common Shares are not listed on any Exchange as of such date, such price as is determined solely by the Board, acting reasonably and in good faith, and such determination will be conclusive and binding on all Persons.

The Board will determine, at the time of granting a particular Option, the period during which such Option is exercisable, which will not be more than 10 years after the Grant Date and which may be shortened in accordance with the Omnibus Plan and the applicable Award Agreement.

Prior to its expiration or earlier termination in accordance with the Omnibus Plan, each Option shall be exercisable at such time or times and/or pursuant to the achievement of such performance criteria and/or other vesting conditions as the Board, at the time of granting the particular Option, may determine in its sole discretion.

The Board may, on terms established by it in its sole discretion and in accordance with Exchange policies, permit an Option to be exercised by way of a "cashless exercise" basis.

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**Restricted and Performance Share Units**

Under the Omnibus Plan, a Share Unit means a right, including a RSU or a PRSU, awarded to a Participant to receive a payment subject to the terms and conditions of the Omnibus Plan, and includes Cash-or-Share Settled Share Units and Share-Settled Share Units.

A "Cash-or-Share Settled Share Unit" is a Share Unit granted by the Company to a Participant, with each such Share Unit entitling the Participant, upon vesting and settlement, to, unless such Share Unit expires prior to being settled, receive a cash payment equal to the Market Price or, in the sole discretion of the Company, one Common Share, subject to customary adjustments as provided in the Omnibus Plan and such restrictions and conditions on vesting as the Board may determine at the time of grant.

A "Share-Settled Share Unit" is a Share Unit granted by the Company to a Participant, with each such Share Unit entitling the Participant, upon vesting and settlement, to acquire, unless such Share Unit expires prior to being settled, one Common Share from treasury, subject to customary adjustments as provided in the Omnibus Plan and such restrictions and conditions on vesting as the Board may determine at the time of grant. For greater certainty, the Company is obligated to issue and deliver a Common Share on the due settlement of a Share-Settled Share Unit and will have no independent discretion to settle any Share-Settled Share Unit in cash or other property.

Subject to the provisions of the Omnibus Plan, restrictions and conditions on vesting of any Share Unit may, without limitation, be based on the passage of time during continued employment or other service relationship (RSU), the achievement of specified Performance Criteria (PRSU), or both.

Subject to the provisions of the Omnibus Plan and any shareholders or regulatory approval which may be required, the Board may, from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive Share Units; (b) fix the number of Share Units, if any, to be granted to each Eligible Participant and the date(s) on which such Share Units will be granted; (c) determine the relevant conditions, vesting provisions (including the applicable Performance Period (as defined in the Omnibus Plan) and Performance Criteria, if any) and the Restriction Period (as defined in the Omnibus Plan) of each Share Unit; and (d) determine any other terms and conditions applicable to each Share Unit, which need not be identical and which may include non-competition provisions, in each case subject to the terms and conditions of the Omnibus Plan, any applicable Share Unit agreement, and the Exchange rules.

Notwithstanding the Board's discretion over vesting provisions, in respect of any Share-Settled Share Unit, a Participant may elect, in advance of the Vesting Date (as defined in the Omnibus Plan) for such Share-Settled Share Unit (as defined in the Omnibus Plan), to defer the Redemption Date by filing with the Company an election.

Each grant of a Share Unit will be evidenced by a Share Unit agreement, which will be subject to all applicable terms and conditions of the Omnibus Plan and any other terms and conditions (including any recoupment, reimbursement or claw-back compensation policy as may be adopted by the Board from time to time) as the Board may deem appropriate, provided that they are consistent with applicable law.

**Share Appreciation Rights**

A SAR is an Award granted to a Participant for future services to be rendered that, upon settlement, entitles such Participant to receive cash and/or Common Shares, as determined by the Company in its sole discretion, equal to the Appreciation Value of such SAR. Under the Omnibus Plan, "Appreciation Value" means, in respect of any SAR, an amount equal to the Market Price on the date the SAR is settled less the base value for the SAR determined by the Board and specified in the applicable Award Agreement (the "**Base Value**"), which Base Value will not be less than the Market Price on the Grant Date.

Subject to the provisions of the Omnibus Plan, the terms of any applicable SAR Agreement, and any shareholder or regulatory approval which may be required, the Board may, from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive SARs; (b) fix the number of SARs, if any, to be granted to each Eligible Participant and the date(s) on which such SARs will be granted; (c) determine whether, on settlement of an SAR, a Participant will be entitled to a payment of cash or Common Shares (or a combination); (d) determine the Base Value of the SARs; and (e) determine the relevant conditions and vesting provisions of each SAR; provided that no such condition or restriction will cause the SAR to constitute a "salary deferral arrangement" within the meaning of Section 248(1) of the *Income Tax Act* (Canada) (the "**ITA**").

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Each SAR shall expire on the earlier of: (a) December 15th of the calendar year in which such Performance Criteria (as defined in the Omnibus Plan) and/or other vesting conditions applicable to such SAR as determined by the Board at the time of grant of the SAR are achieved; and (b) the fifth anniversary of the date such SAR was granted.

**Deferred Share Units**

A DSU is an Award for services rendered, or for future services to be rendered, and that, upon settlement, entitles the recipient Participant to receive cash or acquire Common Shares, as determined by the Board in its sole discretion, unless such DSU expires prior to being settled.

The aggregate of all amounts which may be received in respect of a DSU will depend, at all times, on the fair market value of shares of the capital stock of the Company or of a corporation related (within the meaning of the ITA) thereto at a time that is within the period that commences one year prior to the Participant's Termination Date (as defined in the Omnibus Plan) and ends at the time the amount is received. For greater certainty, no Participant, nor any Person who does not deal at arm's length, within the meaning of the ITA, with such Participant, shall be entitled, either immediately or in the future, either absolutely or contingently, to receive or obtain any amount or benefit granted or to be granted, under the Omnibus Plan or pursuant to any other arrangement, and no additional Awards will be granted to such Participant, for the purpose of reducing the impact, in whole or in part, of any reduction in the fair market value of the Common Shares or the shares of any corporation related, within the meaning of the ITA, to the Company.

Subject to the provisions of the Omnibus Plan, any shareholder or regulatory approval which may be required, the Board may, from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive DSUs; (b) fix the number of DSUs, if any, to be granted to each Eligible Participant and the date(s) on which such DSUs will be granted; and (c) determine the relevant conditions and vesting provisions for such DSUs, in each case subject to the terms and conditions of the Omnibus Plan, any applicable Award Agreement, and the Exchange rules.

Subject to the vesting and other conditions and provisions in the Omnibus Plan and any applicable Award Agreement, each DSU will entitle the Participant to receive, on settlement, a cash payment equal to the Market Price or, in the sole discretion of the Board, one Common Share, or any combination of cash and Common Shares as the Company in its sole discretion may determine. For greater certainty, no Participant will have any right to demand to be paid in, or receive, Common Shares in respect of any DSU, and, notwithstanding any discretion exercised by the Company to settle any DSU, or portion thereof, in the form of Common Shares, the Company reserves the right to change such form of payment at any time until payment is actually made.

Each grant of a DSU will be evidenced by an Award Agreement, which will be subject to all applicable terms and conditions of the Omnibus Plan and any other terms and conditions (including any recoupment, reimbursement or claw-back compensation policy as may be adopted by the Board from time to time) as the Board may deem appropriate, provided that they are consistent with applicable law.

**General Conditions Applicable to Options**

Except as otherwise provided in any Employment Agreement or Consulting Agreement or in any Award Agreement, each Option will be subject to the following conditions:

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**Termination for Cause**. Upon a Participant ceasing to be an Eligible Participant for Cause, any vested or unvested Option granted to such Participant will terminate automatically and become void immediately. For the purposes of the Omnibus Plan, the determination by the Company that a Participant was discharged for Cause will be binding on such Participant. "Cause" will include, among other things, gross misconduct, theft, fraud, breach of confidentiality, breach of the Company's code of conduct and any other reason determined by the Company to be cause for termination.

**Termination not for Cause**. Upon a Participant ceasing to be an Eligible Participant as a result of their employment or service relationship with the Company or a subsidiary being terminated without Cause: (a) each unvested Option granted to such Participant will terminate and become void immediately upon such termination, and (b) each vested Option held by such Participant will cease to be exercisable on the earlier of (i) 90 days after the Participant's Termination Date (or such later date as the Board may, in its sole discretion, determine) and (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

**Resignation**. Upon a Participant ceasing to be an Eligible Participant as a result of their resignation from the Company or a subsidiary: (a) each unvested Option granted to such Participant will terminate and become void immediately upon such resignation, and (b) each vested Option held by such Participant will cease to be exercisable on the earlier of (i) 90 days after the Participant's Termination Date (or such later date as the Board may, in its sole discretion, determine) and (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

**Retirement/Permanent Disability**. Upon a Participant ceasing to be an Eligible Participant by reason of retirement or permanent disability: (a) each unvested Option granted to such Participant will terminate and become void immediately, and (b) each vested Option held by such Participant will cease to be exercisable on the earlier of (i) 90 days from the date of retirement or the date on which the Participant ceases their employment or service relationship with the Company or any subsidiary by reason of permanent disability (or such later date as the Board may, in its sole discretion, determine) and (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

**Death**. Upon a Participant ceasing to be an Eligible Participant by reason of death: (a) each unvested Option granted to such Participant will terminate and become void immediately, and (b) each vested Option held by such Participant at the time of death may be exercised by the legal representative of the Participant, provided that any such vested Option will cease to be exercisable on the earlier of (i) the date that is 12 months after the Participant's death or (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

**Leave of Absence**. Upon a Participant electing a voluntary leave of absence of more than 12 months, including maternity and paternity leaves, the Board may determine, in its sole discretion but subject to applicable laws, that such Participant's participation in the Omnibus Plan will be terminated, provided that all vested Options will remain outstanding and in effect until the applicable exercise date, or such earlier date determined by the Board in its sole discretion. Notwithstanding the foregoing, the Awards granted to such Participant will expire no later than the date that is 12 months from the date that the Participant ceases to be an Eligible Participant.

For greater certainty, in the event of any conflict between the terms of the Omnibus Plan and the terms of any applicable Employment Agreement, Consulting Agreement or Award Agreement with respect to the time of termination of any Option, the terms of such Employment Agreement, Consulting Agreement or Award Agreement will govern unless prohibited by applicable law.

**General Conditions Applicable to Awards other than Options**

Except as otherwise provided in any Employment Agreement or Consulting Agreement or in any Award Agreement, each Award, other than Options, will be subject to the following conditions:

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**Termination for Cause and Resignation**. Upon a Participant ceasing to be an Eligible Participant for Cause or as a result of their resignation from the Company or a subsidiary, the Participant's participation in the Omnibus Plan will be terminated immediately, all Awards, other than Options, credited to such Participant's account that have not vested will be forfeited and cancelled, and the Participant's rights that relate to such participant's unvested Awards will be forfeited and cancelled on the Termination Date.

**Death, Leave of Absence or Termination of Service**. Except as otherwise determined by the Board from time to time, at its sole discretion, upon a Participant electing a voluntary leave of absence of more than 12 months, including maternity and paternity leaves, or upon a Participant ceasing to be an Eligible Participant as a result of such Participant's: (a) death, (b) retirement, (c) Termination of Service for reasons other than for Cause, (d) employment or service relationship with the Company being terminated by reason of injury or disability, or (e) being eligible to receive long-term disability benefits, all unvested Awards, other than Options, in the Participant's account as of such date relating to a Restriction Period in progress will be forfeited and cancelled. Notwithstanding the foregoing, if the Board, in its sole discretion, instead accelerates the vesting or waives vesting conditions with respect to all or some portion of outstanding unvested Awards, other than Options, the date of such action is the Vesting Date, provided that the Awards granted to such Participant will expire no later than the date that is 12 months from the date that the Participant ceases to be an Eligible Participant.

For greater certainty, in the event of any conflict between the terms of the Omnibus Plan and the terms of any applicable Employment Agreement, Consulting Agreement or Award Agreement with respect to the time of termination of any Award, the terms of such Employment Agreement, Consulting Agreement or Award Agreement will govern unless prohibited by applicable law.

**Change of Control**

In the event of a potential Change of Control, the Board will have the power, in its sole discretion, subject to Exchange and shareholder approval, if required, to accelerate the vesting of Options to assist the Participants to tender into a takeover bid or participate in any other transaction leading to a Change of Control. For greater certainty, in the event of a take-over bid or any other transaction leading to a Change of Control, the Board will have the power, in its sole discretion, to (a) provide that any or all Options will thereupon terminate, provided that any such outstanding Options that have vested will remain exercisable until the consummation of such Change of Control, and (b) permit Participants to conditionally exercise their vested Options immediately prior to the consummation of the take-over bid and the Common Shares issuable under such Options to be tendered to such bid, such conditional exercise to be conditional upon the take-up by such offeror of the Common Shares or other securities tendered to such take-over bid in accordance with the terms of such take-over bid (or the effectiveness of such other transaction leading to a Change of Control). If, however, the potential Change of Control referred to in Section 8.2 of the Omnibus Plan is not completed within the time specified therein (as the same may be extended), then notwithstanding Section 8.2 or the definition of "Change of Control": (i) any conditional exercise of vested Options will be deemed to be null, void and of no effect, and such conditionally exercised Options will for all purposes be deemed not to have been exercised, (ii) Common Shares which were issued pursuant to the exercise of Options which vested pursuant to Section 8.2 will be returned by the Participant to the Company and reinstated as authorized but unissued Common Shares, and (iii) the original terms applicable to Options which vested pursuant to Section 8.2 will be reinstated. In the event of a Change of Control, the Board may exercise its discretion to accelerate the vesting of, or waive the Performance Criteria or other vesting conditions applicable to, outstanding Share Units, and the date of such action will be the Vesting Date of such Share Units.

**Assignment**

Each Award granted under the Omnibus Plan is personal to the participant and will not be assignable or transferable by the participant, whether voluntarily or by operation of law, except by will or by the laws of descent and distribution.

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**Amendment**

The Board may amend the Omnibus Plan or any Award at any time without the consent of the Participants (except as permitted by the provisions of the Omnibus Plan), provided that any such amendment will not adversely alter or impair the rights of any Participant and is in compliance with applicable law, including the prior approval of the Exchange or, if required, any other regulatory body having authority over the Company.

Unless such approval is required by law or the requirements of the Exchange or any other regulatory body having authority over the Company, the Board may make the following types of amendments to the Omnibus Plan without seeking approval of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any amendment necessary to comply with applicable law (including taxation laws) or the requirements of the Exchange or any other regulatory body to which the Company is subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any amendment of a "housekeeping" nature, including, without limitation, amending the wording of any provision of the Omnibus Plan for the purpose of clarifying the meaning of existing provisions or to correct or supplement any provision of the Omnibus Plan that is inconsistent with any other provision of the Omnibus Plan, correcting any grammatical or typographical errors, or amending the definitions contained within the Omnibus Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any amendment regarding the administration or implementation of the Omnibus Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other amendment that does not require the approval of shareholders under applicable laws and regulatory requirements.

**Director Compensation**

The Company also has a compensation program for the Company's members of the Board and its committees. The compensation of the directors is designed to attract and retain committed and qualified directors and to align their compensation with the long-term interests of the Company's shareholders.

The Board, on the recommendation of its Compensation Committee, will be responsible for reviewing and approving any changes to the directors' compensation arrangements. In consideration for serving on our Board, each director will be paid an annual retainer consisting of RSUs and/or stock options. All directors will be reimbursed for their reasonable out-of-pocket expenses incurred while serving as directors.

**Exercise of Options and Compensation Securities by NEOs and Directors**

During the year ended December 31, 2024, no compensation securities granted under the Omnibus Plan were exercised by NEOs or directors of the Company.

**External Management Companies**

The Company has not entered into any agreement with any external management company that employs or retains one or more of the NEOs or directors and the Company has not entered into any understanding, arrangement or agreement with any external management company to provide executive management services to the Company, directly or indirectly, in respect of which any compensation was paid by the Company.

**Employment, Consulting and Management Agreements**

**John Armstrong, Former Chief Executive Officer and Director**

Mr. Armstrong served as our Chief Executive Officer from November 2022 until February 2025. Under his employment agreement, Mr. Armstrong received a base salary of C$350,000, was eligible for an annual performance-based cash bonus targeted at 80% of base salary, and participated in our long-term equity incentive plans, including initial grants of stock options, RSUs and PRSUs. The agreement also included customary provisions regarding termination and change of control. Mr. Armstrong's employment agreement terminated upon his departure in February 2025.

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Mr. Armstrong's employment agreement provided for base salary, potential annual cash bonuses and/or potential annual equity-based compensation bonuses, benefits and participation in the Omnibus Plan.

**Daniel O'Flaherty, Chief Executive Officer and Director**

Mr. O'Flaherty's employment agreement provides for base salary, an annual cash and/or equity performance bonus, benefits and participation in the Omnibus Plan.

The employment agreement with Mr. O'Flaherty specifies the amounts or benefits payable, including severance, to Mr. O'Flaherty in the event that his employment is terminated. See "*Termination and Change of Control Benefits*" below for further details. Mr. O'Flaherty's employment agreement also contains customary confidentiality covenants.

**Victoria McMillan, Chief Financial Officer**

Mrs. McMillan receives an annual base salary of C$200,000, is eligible to receive an annual performance-based cash bonus targeted at 70% of base salary, and participates in our equity-based incentive plans with an annual target grant value equal to 90% of base salary. Upon execution of her agreement, she received a grant of 750,000 Pre-Split stock options vesting over three years. If terminated without cause, Mrs. McMillan is entitled to three months' notice, 12 months of base salary, a bonus payment equal to 1.5 times the greater of her average bonus for the prior two years or her target bonus, continuation of benefits for 15 months, and extended exercisability of vested options for 12 months. If terminated within 12 months following a change of control, she is entitled to three months' salary plus two times annual base salary, a bonus equal to two times the greater of her average bonus for the prior two years or her target bonus (plus a prorated bonus), two years of benefits, full vesting of all equity awards, and extended exercisability of options for 12 months.

Mrs. McMillan's employment agreement provides for base salary, potential annual cash bonuses and/or potential annual equity-based compensation bonuses, benefits and participation in the Omnibus Plan.

The employment agreement with Mrs. McMillan specifies the amounts or benefits payable, including severance, to Mrs. McMillan in the event that her employment is terminated. See *"Termination and Change of Control Benefits*" below for further details. Mrs. McMillan's employment agreement also contains customary confidentiality covenants.

**Craig Rollins, General Counsel and Corporate Secretary**

Mr. Rollins receives an annual base salary of C$200,000, is eligible to receive an annual performance-based cash bonus targeted at 70% of base salary, and participates in our equity-based incentive plans with an annual target grant value equal to 90% of base salary. If terminated without cause, Mr. Rollins is entitled to three months' notice, 12 months of base salary, a bonus payment equal to 1.5 times the greater of his average bonus for the prior two years or his target bonus, continuation of benefits for 15 months, and extended exercisability of vested options for 12 months. If terminated within 12 months following a change of control, he is entitled to three months' salary plus two times annual base salary, a bonus equal to two times the greater of his average bonus for the prior two years or his target bonus (plus a prorated bonus), two years of benefits, full vesting of all equity awards, and extended exercisability of options for 12 months.

------

Mr. Rollins' employment agreement provides for base salary, potential annual cash bonuses and/or potential annual equity-based compensation bonuses, benefits and participation in the Omnibus Plan.

The employment agreement with Mr. Rollins specifies the amounts or benefits payable, including severance, to Mr. Rollins in the event that his employment is terminated. See *"Termination and Change of Control Benefits*" below for further details. Mr. Rollins' employment agreement also contains customary confidentiality covenants.

**Termination and Change of Control Benefits**

For a summary of the termination and Change of Control benefits provided under the Omnibus Plan, please refer to the "*Components of Compensation - Omnibus Equity Incentive Plan*" section above. The tables below provide a summary of the termination and Change of Control benefits provided under the NEOs' employment agreements and the anticipated incremental payments associated with various termination events (assuming the termination events occurred on the final receipt of this Registration Statement):

**Chief Executive Officer**

---

| | | | |
|:---|:---|:---|:---|
|  | **Severance** | **Bonus** | **Benefits** |
| ***Involuntary Termination:***<br>Not for Cause | 3 months notice + 18 months base salary | 1.5 times the greater of (i) 2-year average bonus and (ii) short term incentive plan target multiplied by base salary. | 3 months notice plus 18 months severance period, subject to stock exchange rules, vested options remain exercisable until the earlier of (i) the expiry date(s) and (ii) 18 months. |
| Change of Control<sup>(1)</sup> | 3 months notice + 2 times base salary | 2 times the greater of (i) 2-year average bonus and (ii) short term incentive plan target multiplied by base salary. | 2 years<br>All equity compensation fully vests and subject to stock exchange rules, options remain exercisable until the earlier of (i) the expiry date(s) and (ii) 24 months. |

---

<sup>(1)</sup> Eligible if termination without cause occurs within 12 months following the Change of Control event.

**Other Executive Officers**

---

| | | | |
|:---|:---|:---|:---|
|  | **Severance** | **Bonus** | **Benefits** |
| ***Involuntary Termination:***<br>Not for Cause | 3 months notice + 12 months base salary | 1.5 times the greater of (i) 2-year average bonus and (ii) short term incentive plan target multiplied by base salary. | 3 months notice plus 12 months severance period, subject to stock exchange rules, vested options remain exercisable until the earlier of (i) the expiry date(s) and (ii) 12 months. |
| Change of Control<sup>(1)</sup> | 3 months notice + 2 times base salary | 2 times the greater of (i) 2-year average bonus and (ii) short term incentive plan target multiplied by base salary. | 2 years<br>All equity compensation fully vests and subject to stock exchange rules, options remain exercisable until the earlier of (i) the expiry date(s) and (ii) 12 months. |

---

<sup>(1)</sup> Eligible if termination without cause occurs within 12 months following the Change of Control event.

------

**Involuntary Termination**

---

| | | |
|:---|:---|:---|
| **Name** | **Not for Cause** | **Change of Control** |
| Daniel O'Flaherty<sup>(1)</sup> | $1050228 | $1367761 |
| Victoria McMillan | $538063 | $838101 |
| Craig Rollins | $538063 | $838101 |

---

<sup>(1)</sup> Appointed as Chief Executive Officer on April 1, 2025.

**C. Board Practices**

**Corporate Governance**

We recognize that exemplary corporate governance plays an important role in our overall success and in enhancing shareholder value and, accordingly, we have adopted certain corporate governance policies and practices. The disclosure set out below describes our approach to corporate governance in accordance with Canada's National Instrument 58-101 - *Disclosure of Corporate Governance Practices* ("**NI 58-101**").

**Board of Directors and Director Independence**

Our Board consists of six directors, four are considered to be independent under Canadian securities laws. Under the BCBCA, a director may be removed with or without cause by a resolution passed by an ordinary majority of the votes cast by shareholders present in person or by proxy at a meeting of shareholders and who are entitled to vote. The directors will be elected by shareholders at each annual meeting of shareholders, and all directors will hold office for a term expiring at the close of the next annual meeting or until their respective successors are elected or appointed. Our Articles provide that, between annual general meetings of shareholders, the directors may appoint one or more additional directors, but the number of additional directors may not at any time exceed one-third of the number of directors elected at the previous annual meeting of shareholders.

Under NI 58-101, a director is considered to be independent if he or she is independent within the meaning of Section 1.4 of National Instrument 52-110 - *Audit Committees* ("**NI 52-110**"). Pursuant to Section 1.4 of NI 52-110, an independent director is a director who is free from any direct or indirect material relationship which could, in the view of our Board, be reasonably expected to interfere with a director's exercise of independent judgment. Despite the foregoing, an individual who is, or has been within the last three years, an employee or executive officer of an issuer is considered to have a material relationship with an issuer. Based on information provided by each director concerning his or her background, employment and affiliations, our Board has determined that, of the six directors on our Board, three are "independent" and two are not considered "independent" within the meaning of applicable Canadian securities laws as a result of their respective relationships with us. Gregory Smith and Daniel O'Flaherty are not considered to be independent by the Board. Mr. O'Flaherty is not independent because he is currently the Company's Chief Executive Officer and despite Mr. Smith receiving no consideration for his past executive role with the Company, Mr. Smith was Chief Executive Officer of the Company from late June to early November 2022.

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Our Board believes that given its size and structure it is able to facilitate independent judgment in carrying out its responsibilities. To enhance such independent judgment, the independent members of our Board hold *in camera* meetings with members of management and certain non-independent directors not in attendance, as part of regularly scheduled Board meetings. Open and candid discussion among the independent directors is facilitated by the relatively small size of the Board.

**Orientation and Continuing Education**

We do not have a formal orientation and continuing education program; however, new directors meet with the Chair, members of senior management and our secretary. New directors are also informally provided with an orientation and education as to the nature and operation of the Company and our business, the role of our Board and its committees, and the contribution that an individual director is expected to make. Our Board is responsible for overseeing director continuing education designed to maintain or enhance the skills and abilities of the directors and to ensure that their knowledge and understanding of our business remains current. The chair of each committee is responsible for coordinating orientation and continuing director development programs relating to each committee's mandate.

**Ethical Business Conduct / Global Code of Ethical Conduct**

Versamet has adopted a number of policies and guidelines that impart the way directors, officers and employees are expected to conduct themselves and the manner in which they should operate. Our Code provides the foundation of these policies and guidelines and is applicable to all employees, officers, and directors. The Code sets out the ethical rules and standards to which each individual must comply and be accountable. The Code provides the fundamental tenets through which the Company can achieve its commitments to: operate in a responsible manner that complies with applicable laws, rules and regulations; promote the avoidance of conflicts of interest promote the prompt reporting of violations of the Code; provide a safe and inclusive workplace; provide accountability for adherence to the Code; and provide full, fair, true, timely and plain disclosure.

**Nomination of Directors**

The nominees for election by shareholders as directors is determined by our Governance and Nominating Committee ("**GN Committee**") in accordance with the provisions of applicable corporate law and the charter of our GN Committee. See *"- Other Board Committees*".

**Compensation of Directors**

Director compensation is determined by our Compensation Committee ("**Compensation Committee**") in accordance with the provisions of applicable corporate law and the charter of our Compensation Committee. See *"- Other Board Committees*".

**Director Assessment**

The Board is responsible for ensuring that an appropriate system is in place to evaluate the effectiveness of the Board as a whole, the individual committees of the Board, and the individual members of the Board and such committees with a view to ensuring that they are fulfilling their respective responsibilities and duties. In connection with such evaluations, each director may be required to provide an assessment of the effectiveness of the Board and each committee as well as the performance of the individual directors, periodically. Such evaluations take into account the competencies and skills each director is expected to bring to his particular role on the Board or on a committee, as well as any other relevant factors.

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**Board, Chair and Chief Executive Officer Mandates**

Our Board has a responsibility for the stewardship of the Company, including the responsibility to supervise the management of and oversee the conduct of the business of the Company; provide leadership and direction to management and consider management's performance in conjunction with the Company's compensation plans; set policies appropriate for the business of the Company; and approve corporate strategies and goals. The Board's fundamental objective is to protect and preserve shareholder value by fostering strong corporate governance practices through its leadership and direction of management and guidance of the Company's strategic direction.

Our Board has adopted a formal mandate of the Chair, which sets out the Chair's key responsibilities, including, among others, duties relating to Board meetings, information flow to Board members, shareholder meetings and other functions as may be delegated to the Chair by the Board from time to time.

Our Board has adopted a formal mandate of the Chief Executive Officer, which sets out the key responsibilities of our Chief Executive Officer, including, among others, duties relating to: providing corporate strategy and leadership; responsibility for corporate communication; fostering appropriate corporate culture, ethics and integrity; business and risk management; and discussing goals and objectives of senior management and the Chief Executive Officer.

**Other Board Committees**

Our Board has also established three committees: the Compensation Committee, the GN Committee and the audit committee (the "**Audit Committee**").

**Compensation Committee**

Our Compensation Committee is comprised of Gregory Smith (chair), Elizabeth McGregor and Michael McDonald and is to be comprised no less than three directors, at least a majority of whom, together with the committee chair, are persons determined by our Board to be independent directors within the meaning of NI 58-101. The Compensation Committee is responsible for assisting the Board in its oversight responsibilities relating to the compensation, nomination, objectives, evaluation and succession of the executive officers of the Company including the Chief Executive Officer and the Chief Financial Officer. The Compensation Committee performs the functions customarily performed by compensation committees and any other functions assigned by the Board, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Overseeing and recommending for approval by the Board the executive compensation principles, policies, programs, processes and grants of equity-based incentives and processes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Considering and recommending annually or as required for approval by the Board all forms of compensation for the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually reviewing all forms of compensation for executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually reviewing directors' compensation and recommending any changes to the Board for consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing the compensation discussion & analysis and related executive compensation disclosure for inclusion in the Company's public disclosure documents, in accordance with applicable rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing with the Chief Executive Officer any proposed major changes in organization or personnel.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing the annual overall performance of the Chief Executive Officer and reporting annually to the Board on this assessment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Overseeing the implementation and administration of benefit plans and reviewing any proposed major changes in benefit plans and recommending for approval any change requiring Board action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing, monitoring, reporting, and where appropriate, providing recommendations to the Board on the Company's exposure to risks related to executive compensation policies and practices, if any, and identifying compensation policies and practices that mitigate any such risk.

Further particulars of the process by which compensation for our executive officers will be determined is provided under "*Executive Compensation*".

**Governance and Nominating Committee**

Our GN Committee is comprised of Marcel de Groot (chair), Gregory Smith and Mark Backens and is to be comprised of no less than three directors, at least a majority of whom, together with the committee chair, are persons determined by our Board to be independent directors within the meaning of NI 58-101.

The GN Committee is responsible for: (a) developing the Company's approach to governance issues and the Company's response to the corporate governance guidelines; (b) subject to any investor rights agreement or similar agreements which may exist from time to time between the Company and certain shareholders, reviewing the composition and contribution of the Board and its members and recommending Board nominees; (c) overseeing the orientation program for new directors; and (d) helping to maintain an effective working relationship between the Board and management. The GN Committee also assists the Compensation Committee in its oversight responsibilities relating to the nomination, objectives, evaluation and succession of the executive officers of the Company including the Chief Executive Officer and Chief Financial Officer. In addition, the GN Committee is responsible for periodically reviewing the Company's policies with regards to matters relating to disclosure, trading of securities, governance, ethics, the environment, and health and safety and taking steps to resolve issues of compliance with respect to Board members and executive officers.

In addition, pursuant to investor rights agreements entered into with B2Gold Corp., Sandstorm Gold Ltd., Equinox

Gold Corp., and Regal Funds Management Pty Limited (as trustee for the Regal Resources Royalties Fund), each such shareholder is entitled, for so long as it holds at least 10% of our outstanding common shares, to designate one individual for nomination to our board of directors. If a shareholder elects not to nominate a director, in certain cases it may instead appoint an observer to attend board meetings. Our management is required to support and vote in favor of such nominees, provided they meet applicable eligibility criteria.

**Audit Committee**

Our Audit Committee is comprised of Elizabeth McGregor (chair), Marcel de Groot and Michael McDonald and is to be comprised of no less than three directors and, subject to the permitted venture issuer exemptions contemplated by Part 6 of NI 52-110, each member shall be independent and financially literate within the meaning of NI 52-110. Our Audit Committee will initially comprise Elizabeth McGregor, who will act as chair of this committee, Marcel de Groot and Michael McDonald, all of whom have been determined by our Board to be "financially literate" within the meaning of NI 52-110. All three current members of the Audit Committee are considered "independent" within the meaning of NI 52-110.

Our Board has adopted a written charter setting forth the purpose, composition, authority and responsibility of our Audit Committee, consistent with NI 52-110. The purpose of the Audit Committee is to assist the Board in fulfilling its oversight responsibilities with respect to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial reporting and related financial disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• internal control over financial reporting and disclosure controls and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the annual independent audit of the Company's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal and regulatory compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• related party transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with public disclosure requirements.

**Relevant Education and Experience**

Each member of the Audit Committee has adequate education and experience that is relevant to their performance as an Audit Committee member and, in particular, the requisite education and experience that have provided the member with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an understanding of the accounting principles used by the Company to prepare its financial statements and the ability to assess the general application of those principles in connection with estimates, accruals and reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company's financial statements or experience actively supervising individuals engaged in such activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an understanding of internal controls and procedures for financial reporting.

For additional details regarding the relevant education and experience of each member of our Audit Committee, see "*Directors and Executive Officers - Biographical Information Regarding our Directors and Executive Officers*".

**Pre-Approval Policies and Procedures**

The Audit Committee is responsible for the pre-approval of all non-audit services to be provided to the Company or its subsidiaries by the Company's external auditor or the external auditor of any subsidiaries, unless such pre-approval is otherwise appropriately delegated by the Audit Committee, or if the Audit Committee adopts appropriate policies and procedures for the engagement of non-audit services.

**D. Employees**

As at December 21, 2024, we had eight employees, seven of whom are located in Vancouver, Canada and one employee located in the Cayman Islands.

**E. Share Ownership**

The following table sets forth the share ownership of the individuals in Item 6.B at ♦, 2025:

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- 115 - <br>

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;**Number of Shares** | &nbsp;&nbsp;**Percentage<sup>(1)</sup>** |
| &nbsp;&nbsp;Gregory Smith<sup>(2)</sup> | &nbsp;&nbsp;1186267 | &nbsp;&nbsp;1.27% |
| &nbsp;&nbsp;Daniel O'Flaherty<sup>(3)</sup> | &nbsp;&nbsp;2220170 | &nbsp;&nbsp;2.38% |
| &nbsp;&nbsp;Marcel de Groot<sup>(4)</sup> | &nbsp;&nbsp;1807134 | &nbsp;&nbsp;1.94% |
| &nbsp;&nbsp;Michael McDonald<sup>(5)</sup> | &nbsp;&nbsp;Nil | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;Elizabeth McGregor<sup>(6)</sup> | &nbsp;&nbsp;1400 | &nbsp;&nbsp;0.001% |
| &nbsp;&nbsp;Mark Backens<sup>(7)</sup> | &nbsp;&nbsp;Nil | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;Victoria McMillan<sup>(8)</sup> | &nbsp;&nbsp;48684 | &nbsp;&nbsp;0.05% |
| &nbsp;&nbsp;Craig Rollins<sup>(9)</sup> | &nbsp;&nbsp;1907010 | &nbsp;&nbsp;2.04% |

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<sup>(1)</sup> Based on 93,367,339 Common Shares issued and outstanding at date of this registration statement.

<sup>(2)</sup> Mr. Smith holds 280,000 Options (240,000 with an exercise price of $3.50 per share and expiry date of September 1, 2027; 40,000 with an exercise price of $4.00 per share and expiry date of May 12, 2030) and 18,750 RSUs.

<sup>(3)</sup> Mr. O'Flaherty holds 292,763 Options (142,857 with an exercise price of $3.50 per share and expiry date of January 15, 2029; 149,906 with an exercise price of $4.00 per share and expiry date of January 15, 2030), 200,000 RSUs and 400,000 PRSUs.

<sup>(4)</sup> Mr. de Groot holds 190,000 Options (150,000 with an exercise price of $3.50 per share and expiry date of September 1, 2027; 40,000 with an exercise price of $4.00 per share and expiry date of May 12, 2030) and 18,750 RSUs.

<sup>(5)</sup> Mr. McDonald holds 40,000 Options (with an exercise price of $4.00 per share and expiry date of May 12, 2030) and 18,750 RSUs.

<sup>(6)</sup> Ms. McGregor holds 40,000 Options (with an exercise price of $4.00 per share and expiry date of May 12, 2030) and 18,750 RSUs.

<sup>(7)</sup> Mr. Backens holds 40,000 Options (with an exercise price of $4.00 per share and expiry date of May 12, 2030) and 18,750 RSUs.

<sup>(8)</sup> Ms. McMillan holds 267,406 Options (150,000 with an exercise price of $3.50 per share and expiry date of September 1, 2027; 37,768 with an exercise price of $3.50 per share and expiry date of January 15, 2029; and 79,638 with an exercise price of $4.00 per share and expiry date of January 15, 2030) and 124,196 RSUs.

<sup>(9)</sup> Mr. Rollins holds 267,406 Options (150,000 with an exercise price of $3.50 per share and expiry date of September 1, 2027; 37,768 with an exercise price of $3.50 per share and expiry date of January 15, 2029; and 79,638 with an exercise price of $4.00 per share and expiry date of January 15, 2030) and 124,196 RSUs.

See Item 6.B, "*Compensation"* for a description of our Omnibus Plan.

**F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation**

Not applicable.

**ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders**

To the best of our knowledge, other than as noted below, no person, corporation or other entity beneficially owns, directly or indirectly, or controls more than 5% of our Common Shares.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Number and type<br>of securities** | **Type of Ownership** | **Percentage of Class<sup>(1)</sup>** | **Percentage of Class**<br>**(fully diluted)<sup>(2)</sup>** |
| B2Gold | 30460525 | Beneficial and of record | 32.62% | 31.04% |
| Sandstorm | 23654545 | Beneficial and of record | 25.33% | 24.11% |
| Equinox | 11617915 | Beneficial and of record | 12.44% | 11.84% |
| Regal | 6928500 | Beneficial and of record | 7.42% | 7.06% |

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<sup>(1)</sup> Based on 93,367,339 issued and outstanding Common Shares at the date of this Registration Statement.

<sup>(2)</sup> Based on 98,118,885 outstanding Common Shares on a fully diluted basis, assuming the exercise of all outstanding warrants, RSUs, PRSUs and options.

In addition to their shareholdings, our significant shareholders have rights under investor rights agreements that may increase their influence over our affairs. These rights include director nomination and board observer rights, pre-emptive or "top-up" rights to maintain ownership levels in future financings, piggyback registration rights in connection with registered offerings, and certain information rights. The agreements also contain customary transfer restrictions, standstill covenants and termination provisions. Pursuant to the investor rights agreement described under "Item 10.C - Material Contracts," B2Gold Corp. has the right to nominate one member of our board of directors. Michael McDonald currently serves on our board pursuant to B2Gold's nomination right. No other shareholder has exercised any such nomination right.

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To the best of our knowledge, we are not directly or indirectly owned or controlled by another corporation(s), by any foreign government or by any other natural or legal person(s) severally or jointly. To the best of our knowledge, there are no arrangements, the operation of which may at a subsequent date result in a change of control of the Company.

As of ♦, 2025, approximately 0.83% of our Common Shares were beneficially owned by holders in the United States. As of ♦, 2025, there were 40 record holders of our Common Shares in the United States.

**B. Related Party Transactions**

Other than as disclosed below and elsewhere in this Registration Statement, since the beginning of our preceding three financial years ended December 31, 2024 there have been no transactions or loans between our company and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) enterprises that directly or indirectly through one or more intermediaries, control or are controlled by, or are under common control with, our company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) associates, meaning unconsolidated enterprises in which we have a significant influence or which have significant influence over our company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) individuals owning, directly or indirectly, an interest in the voting power of our company that gives them significant influence over our company, and close members of any such individual's family (close members of an individual's family are those that may be expected to influence, or be influenced by, that person in their dealings with our company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) key management personnel, that is, those persons having authority and responsibility for planning, directing and controlling the activities of our company, including directors and senior management of our company and close members of such individuals' families; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) enterprises in which a substantial interest in the voting power is owned, directly or indirectly, by any person described in (c) or (d) or over which such a person is able to exercise significant influence, including enterprises owned by directors or major shareholders of our company and enterprises that have a member of key management in common with our company.

**Sandstorm**

Effective June 28, 2022, Sandstorm is considered to be a related party of the Company as a result of Versamet being an associate of this entity (as a result Sandstorm's share ownership in the Company) and the ability of Sandstorm to nominate a representative to the Board.

We acquired two royalty assets from Sandstorm during the year ended December 31, 2023. We had the Sandstorm Convertible Note outstanding with Sandstorm which was fully converted during the year ended December 31, 2024; as such the balance remaining on the Sandstorm Convertible Note as at December 31, 2024 is $nil.

See Item 4.A, "*History and Development of the Company - Key Developments"* for more information about our transactions with Sandstorm.

------

**Equinox**

Effective June 28, 2022, Equinox is considered to be a related party of the Company as a result of its share ownership in Versamet and the ability of Equinox to nominate a representative to the Board. On October 31, 2023, we also entered into the Greenstone GPA with Regal and Equinox, pursuant to which, after taking into consideration the syndication of 30% of the Greenstone GPA to Regal, Versamet paid US$52.5 million (70% of a total US$75 million) to Equinox in exchange for the Greenstone Gold Interest.

See Item 4.A, "*History and Development of the Company - Key Developments"* for more information about our transactions with Equinox.

**B2Gold**

As a result of the Transaction, effective June 5, 2024, B2Gold is considered to be related party of the Company as a result of Versamet being an associate of this entity (as a result of their share ownership in the Company) and the ability of B2Gold to nominate a representative to the Board.

See Item 4.A, "*History and Development of the Company - Key Developments"* for more information about our transactions with B2Gold.

**Compensation to Key Management Personnel**

Our compensation cost for key management personnel was US$1,984,352, US$1,498,299, and US$824,755 for the years ended December 31, 2024, 2023, and 2022, respectively.

For information regarding compensation for our directors and senior and management, see the information under Item 6.B. "*Compensation*".

**C. Interest of experts and counsel**

Not applicable.

**ITEM 8: FINANCIAL INFORMATION**

**A. Consolidated Statements and Other Financial Information**

See "Item 18. Financial Statements."

**Litigation**

There is no pending, threatened or recently concluded legal or arbitration proceedings, including those relating to bankruptcy, receivership or similar proceedings, or that involve any third party (including any governmental proceedings) which may have, or have had in the recent past, significant adverse effects on our financial position, as described in this document.

**B. Significant Changes**

Other than as disclosed below and elsewhere in this Registration Statement, there have been no significant changes in our financial condition since the most recent financial statements for the year ended December 31, 2024.

On April 30, 2025, we repaid the full amount of the outstanding principal of the CLA, together with all accrued and unpaid interest (including accrued and unpaid PIK Interest) and the Make Whole Fee for an aggregate prepayment amount of $26,084,680.

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In connection with the closing of the Kolpa CPA, we entered into an amending agreement with BMO and NBF to amend and increase the size of the Credit Facility to US$60 million with a US$15 million accordion feature. The new Credit Facility included an updated maturity date of April 30, 2028 and an approximate 25 basis point reduction to the drawn interest spread.

See Item 4.A, "*History and Development of the Company - Key Developments"* for more information about the repayment of the CLA and amendment to the Credit Facility.

**ITEM 9: THE OFFER AND LISTING**

**A. Offer and Listing Details**

The principal trading market for our Common Shares is the TSXV. Our Common Shares are listed on the TSXV under the trading symbol "**VMET**". We are filing this Registration Statement in anticipation of the listing of our Common Shares on the NYSE American.

As of the date of this Registration Statement, our authorized capital consisted of an unlimited number of Common Shares without par value. Our issued and outstanding Common Shares are fully paid.

Our Common Shares are in registered form and the transfer of our Common Shares is managed by our transfer agent, TSX Trust Company. In connection with the Listing, we have appointed Endeavour Trust as our transfer agent in the United States.

For additional details regarding our Common Shares, see Item 10.A, "*Share Capital*".

**B. Plan of Distribution**

Not applicable.

**C. Markets**

Our Common Shares are publicly traded on the TSXV under the symbol "**VMET**". We are filing this Registration Statement in anticipation of the listing of our Common Shares on the NYSE American.

**D. Selling Shareholders**

Not applicable.

**E. Dilution**

Not applicable.

**F. Expenses of the issue**

Not applicable.

**ITEM 10: ADDITIONAL INFORMATION**

**A. Share Capital**

Our authorized share capital consists of an unlimited number of Common Shares without par value. As at June 30, 2025, there were 463,818,617 Common Shares outstanding. As at ♦, 2025 there were 93,367,339 Common Shares issued and outstanding.

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**Common Shares**

All of our Common Shares rank equally as to voting rights, participation in a distribution of our assets on a liquidation, dissolution or winding-up of the Company and entitlement to any dividends declared by us. The holders of our Common Shares are entitled to receive notice of, and to attend and vote at, all meetings of shareholders (other than meetings at which only holders of another class or series of shares are entitled to vote). Each Common Share carries the right to one vote. In the event of the liquidation, dissolution or winding-up of the Company, or any other distribution of our assets among its shareholders for the purpose of winding-up our affairs, the holders of the Common Shares will be entitled to receive, on a pro rata basis, all of the assets remaining after the payment by us of all of our liabilities. The holders of Common Shares are entitled to receive dividends as and when declared by the Board in respect of our Common Shares on a pro rata basis. Our Common Shares do not have pre-emptive rights, conversion rights or exchange rights and are not subject to redemption, retraction purchase for cancellation or surrender provisions. There are no sinking or purchase fund provisions, no provisions permitting or restricting the issuance of additional securities or any other material restrictions, and there are no provisions which are capable of requiring a security holder to contribute additional capital.

Any alteration of the rights, privileges, restrictions and conditions attaching to our Common Shares under our Articles of Incorporation must be approved by at least two-thirds of the Common Shares voted at a meeting of our shareholders.

**Outstanding Options**

As of the date hereof, there are 16,670,154 Options (as defined herein) outstanding entitling the holders, upon vesting of such Options, to acquire one Common Share at exercise prices of $0.70 or $0.80 per Common Share. The following table sets forth the aggregate number of Options which are outstanding as of the date of this Registration Statement:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Holder of Options** | **Number of<br>Options Held** | **Exercise<br>Price ($ per<br>Common<br>Share)** | **Grant Date &<br>Vesting** | **Expiry Date** |
| All executive officers and past executive officers of Versamet, as a group<sup>(1)</sup> | 1056950 | $3.50/$4.00 | Varied | 5 years from Grant Date |
| All directors and past directors (who are not also executive officers) of Versamet, as a group<sup>(2)</sup> | 790000 | $3.50/$4.00 | Varied | 5 years from Grant Date |
| All other employees and past employees of Versamet, as a group | 1097081 | $3.50/$4.00 | Varied | 5 years from Grant Date |
| All consultants of Versamet, as a group | 390000 | $3.50/$4.00 | Varied | 5 years from Grant Date |
| **Total** | **3334031** | **-** | **-** | **-** |

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<sup>(1)</sup> Total of four persons.

<sup>(2)</sup> Total of six persons.

**Outstanding RSUs**

As of the date hereof, there are 1,017,515 RSUs (as defined herein) outstanding entitling the holders, upon vesting of such RSUs, to acquire one Common Share without payment of any additional consideration. The following table sets forth the aggregate number of RSUs which are outstanding as of the date of this Registration Statement:

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- 120 - <br>

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| | | | | |
|:---|:---|:---|:---|:---|
| **Holder of RSUs** | **Number of<br>RSUs Held** | **Value as of<br>the date of<br>Grant ($ per<br>Common<br>Share)** | **Grant Date** | **Final Vesting<br>Date** |
| All executive officers and past executive officers of Versamet, as a group<sup>(1)</sup> | 448393 | $3.50/$4.00 | Varied | Varied |
| All directors and past directors (who are not also executive officers) of Versamet, as a group<sup>(2)</sup> | 93750 | $4.00 | January 15, 2025 | Deferred |
| All other employees and past employees of Versamet, as a group<sup>(3)</sup> | 475372 | $3.50/$4.00 | Varied | Varied |
| **Total** | **1017515** | **-** | **-** | **-** |

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<sup>(1)</sup> Total of three persons.

<sup>(2)</sup> Total of five persons.

<sup>(3)</sup> Total of three persons.

**Outstanding PRSUs**

As of the date hereof, there are 2,000,000 PRSUs (as defined herein) outstanding entitling the holder, upon vesting of such PRSUs, to acquire one Common Share without payment of any additional consideration. The following table sets forth the aggregate number of PRSUs which are outstanding as of the date of this Registration Statement:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Holder of PRSUs** | **Number of<br>PRSUs Held** | **Value as of<br>the date of<br>Grant ($ per<br>Common<br>Share)** | **Grant Date** | **Time Vesting<br>Conditions<sup>(2)</sup>** | **Performance<br>Vesting<br>Conditions<sup>(2)</sup>** |
| All executive officers and past executive officers of Versamet, as a group<sup>(1)</sup> | 400000 | $4.00 | April 1, 2025 | April 1, 2026 | 40-day VWAP greater than or equal to $1.40<sup>(3)</sup> at any time prior to April 1, 2028 |
| **Total** | **400000** | **-** | **-** | **-** | **-** |

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<sup>(1)</sup> Total of one person.

<sup>(2)</sup> Both the Time Vesting Conditions and Performance Vesting Conditions must be satisfied for the PRSUs (as defined herein) to vest.

<sup>(3)</sup> Calculated by dividing the total value by the total volume of the Common Shares traded for 40 consecutive trading days.

For a description of the Company's Omnibus Plan, see "*Executive Compensation - Omnibus Plan*".

**Three-Year Prior Share Issuances**

<u>2023</u>

Concurrent with the transactions which closed on October 31, 2023, Regal Funds Management Pty Limited as trustee for the Regal subscribed for 34,642,500 Pre-Split Common Shares at a price of $0.70 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance) for total proceeds of US$17.5 million. Further, on the same date, Beedie Capital subscribed for 7,918,285 Pre-Split Common Shares at a price of $0.70 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance) for total proceeds of US$4 million.

------

During the fourth quarter of 2023, we acquired two royalty assets from Sandstorm for total consideration of US$25 million comprising US$10 million in cash and US$15 million in Common Shares (29,557,436 Pre-Split Common Shares issued at a price of $0.70 per Pre-Split Common Share, considered to be the fair value of the Common Shares upon issuance). Of the total Pre-Split Common Shares issued, 1,979,571 are held in escrow subject to certain milestones being met; in the event such milestones are not met these Common Shares will be returned to us and cancelled.

On three occasions during the year ended December 31, 2023, we exercised our right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note, in whole or in part, at any time, provided no event of default has occurred, by delivering fully paid and non-assessable Common Shares to Sandstorm. We satisfied a total of US$17.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 33,837,247 Pre-Split Common Shares to Sandstorm at a price of $0.70 per Pre-Split Common Share.

In December 2023, we closed a financing issuing 11,507,141 Pre-Split Common Shares at $0.70 per Pre-Split Common Share for proceeds of US$6.0 million. No costs were incurred in connection with this share issuance.

Interest expense of US$267,513 was recognized for the period from October 31, 2023 to December 31, 2023 in relation to the Beedie Convertible Loan, of which US$115,537 was paid in Common Shares (218,580 Pre-Split Common Shares at a price of $0.70 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance)).

<u>2024</u>

On March 28, 2024, we settled US$163,650 of interest owing to Beedie Capital for the quarter ended March 31, 2024 in Common Shares by issuing 316,544 Pre-Split Common Shares at a price of $0.70 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance).

On June 5, 2024, we issued 122,049,971 Pre-Split Common Shares at $0.80 per Pre-Split Common Share to B2Gold as consideration in connection with the B2Gold Transaction. In addition, on June 5, 2024, we exercised our right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note, in whole or in part, at any time, provided no event of default has occurred, by delivering fully paid and non-assessable Common Shares to Sandstorm. We satisfied a total of US$14.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 24,179,193 Pre-Split Common Shares to Sandstorm at a price of $0.80 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance).

On August 13, 2024, we issued 17,469,844 Pre-Split Common Shares at $0.80 per Pre-Split Common Share to B2Gold as consideration in connection with the B2Gold Transaction. Further, on August 13, 2024, B2Gold subscribed for 12,872,812 Pre-Split Common Shares at $0.80 per Pre-Split Common Share for total gross cash proceeds of US$7.5 million.

On September 30, 2024, we settled US$166,872 of interest owing to Beedie Capital for the quarter ended September 30, 2024 in Common Shares by issuing 282,118 Pre-Split Common Shares at a price of $0.80 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance).

On December 31, 2024, we settled US$157,500 of interest owing to Beedie Capital for the quarter ended December 31, 2024 in Common Shares by issuing 283,185 Pre-Split Common Shares at a price of $0.80 per Pre-Split Common Share (considered to be the fair value of the Common Shares upon issuance).

<u>2025</u>

On March 3, 2025, we issued 93,750 Pre-Split Common Shares in connection with the redemption of 93,750 outstanding Pre-Split RSUs.

------

On March 31, 2025, we issued 278,076 Pre-Split Common Shares at $0.80 per Pre-Split Common Share to Beedie Capital for the quarterly PIK interest payment under the CLA.

On May 9, 2025, we issued 2,646,250 Pre-Split Common Shares in connection with the redemption of 2,646,250 outstanding Pre-Split RSUs.

**B. Memorandum and Articles of Association**

**Incorporation**

The Company was formed under BCBCA on January 31, 2022 by way of an amalgamation of Rosedale (incorporated October 21, 2011) and Lunde (incorporated October 12, 2018), both private royalty companies incorporated under the BCBCA. On June 13, 2022, the Company changed its name from "Rosedale Resources Ltd." to "Sandbox Royalties Corp." in anticipation of acquiring royalty portfolios from each of Sandstorm and Equinox, which closed on June 28, 2022. On June 5, 2024, the Company changed its name from "Sandbox Royalties Corp." to "Versamet Royalties Corporation" in connection with acquiring a royalty portfolio from B2Gold.

The Company's head office and registered and records office is located at Suite 3200, 733 Seymour Street, Vancouver, British Columbia, Canada V6B 0S6. A copy of our Notice of Articles may be obtained from the Registrar of Companies of British Columbia.

**Objects and Purposes of the Company**

Our Notice of Articles and Articles of Incorporation place no restrictions upon our objects and purposes.

**Directors' Powers**

Our Articles of Incorporation do not contain any special provision with respect to a director's power to vote on a proposal, arrangement or contract in which the director is materially interested. Such power of directors will be exercised by our directors in accordance with Sections 147 to 153 of the BCBCA, which provides in part that a director who is a party to, or who is also a director or officer of or has a material interest in any person who is a party to, a material contract or proposed material contract with us shall disclose the nature and extent of his interest at the time and in the manner provided by the BCBCA. The BCBCA also provides that any such contract or proposed contract shall be referred to the board or shareholders for approval and a director whose interest in a contract is so referred to the board shall not vote on any resolution to approve the same.

Section 13.5 of our Articles of Incorporation provides that the directors shall be paid such remuneration for their services as the board may from time to time determine. The directors shall also be entitled to be reimbursed for reasonable expenses that he or she may incur in and about the business of the Company.

No independent quorum is required when the board is making decisions on directors' remuneration.

Section 8.1 of our Articles of Incorporation provides that our directors may from time to time on behalf of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that they consider appropriate,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue bonds, debentures and other debt obligations either outright or as security for any liability or obligation of the Company or any other person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) guarantee the repayment of money by any other person or the performance of any obligation of any other person, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) mortgage or charge, whether by way of specific or floating charge, or give other security on the whole or any part of the present and future undertaking of the Company.

**Qualifications of Directors**

Section 13.4 of our Articles of Incorporation provides that a director is not required to hold a share in the capital of our Company as qualification for his or her office but must be qualified as required by the BCBCA to become, act or continue to act as a director.

There is no provision in our Notice of Articles or Articles of Incorporation imposing a requirement for retirement or non-retirement of directors under an age limit requirement.

**Share Rights**

Our authorized capital consists of an unlimited number of Common Shares without par value. All of the Common Shares rank equally as to voting rights, participation in a distribution of the assets of the Company on a liquidation, dissolution or winding-up of the Company and entitlement to any dividends declared by the Company. The holders of the Common Shares are entitled to receive notice of, and to attend and vote at, all meetings of shareholders (other than meetings at which only holders of another class or series of shares are entitled to vote). Each Common Share carries the right to one vote. In the event of the liquidation, dissolution or winding-up of the Company, or any other distribution of the assets of the Company among its shareholders for the purpose of winding-up its affairs, the holders of the Common Shares will be entitled to receive, on a pro rata basis, all of the assets remaining after the payment by the Company of all of its liabilities. The holders of Common Shares are entitled to receive dividends as and when declared by the Board in respect of the Common Shares on a pro rata basis. The Common Shares do not have pre-emptive rights, conversion rights or exchange rights and are not subject to redemption, retraction purchase for cancellation or surrender provisions. There are no sinking or purchase fund provisions, no provisions permitting or restricting the issuance of additional securities or any other material restrictions, and there are no provisions which are capable of requiring a security holder to contribute additional capital.

**Procedures to Change the Rights of Shareholders**

Our Articles of Incorporation do not contain any special provision with respect to actions necessary to change the rights of our shareholders. The rights of our shareholders may be changed by altering our Notice of Articles and Articles of Incorporation in accordance with procedures set out in Sections 256 to 265 of the BCBCA.

Any alteration of the rights, privileges, restrictions and conditions attaching to the Common Shares under the Company's Articles must be approved by at least two-thirds of the Common Shares voted at a meeting of the Company's shareholders

**Meetings**

Section 10.1 of our Articles of Incorporation provides that, unless an annual general meeting is deferred or waived in accordance with section 182(2)(a) or (c) of the BCBCA, we must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual general meeting. The percentage vote required to pass an ordinary resolution at a shareholder meeting is a simple majority, which is any amount greater than 50%.

According to Section 10.4 of our Articles of Incorporation, notice of the time and place of each meeting of shareholders shall be given not less than 21 days before the date of the meeting to each director, to the auditor and to each shareholder who at the close of business on the record date for notice is entered in the securities register as the holder of one or more shares carrying the right to vote at the meeting. Notice of a meeting of the shareholders called for any purpose other than consideration of the financial statements and auditor's report, election of directors and re-appointment of incumbent auditor shall state the nature of such business in sufficient detail to permit the shareholder to form a reasoned judgment thereon and shall attach to it a copy of the document to be considered, approved, ratified, adopted or authorized at the meeting or state that a copy of the document will be available for inspection by the shareholders at the company's records office or such other reasonably accessible location in British Columbia. A shareholder may in any manner waive notice of or otherwise consent to a meeting of shareholders.

------

According to Section 11.3 of our Articles of Incorporation the number of shareholders that must be present at a meeting to constitute a quorum is one person present or represented by proxy.

**Limitations on Ownership of Securities**

There are no limitations on the right to own securities of our company by non-resident or foreign shareholders imposed either by the BCBCA, our Notice of Articles or Articles of Incorporation.

There are no limitations on the rights of non-resident or foreign shareholders to hold or exercise voting rights.

Except as provided in the *Investment Canada Act* (Canada) (the "**Investment Canada Act**"), there are no limitations under the applicable laws of Canada or by our charter or our other constituent documents on the right of foreigners to hold or vote Common Shares or other securities of our company.

The Investment Canada Act will prohibit implementation, or if necessary, require divestiture of an investment deemed "reviewable" under the Investment Canada Act by an investor that is not a "Canadian" as defined in the Investment Canada Act (a "**non-Canadian**"), unless after review the Minister responsible for the Investment Canada Act (the "**Minister**") is satisfied that the "reviewable" investment is likely to be of net benefit to Canada. An investment in our Common Shares by a non-Canadian, who is not a resident of a World Trade Organization member, would be reviewable under the Investment Canada Act if it was an investment to acquire control of our company and the value of the assets of our company was $5 million or more. An investment in our Common Shares by WTO Investors would be reviewable only if it was an investment to acquire control of our company and the value of the assets of our company was equal to or greater than a specified amount, which is published by the Minister after its determination for any particular year.

A non-Canadian would be deemed to acquire control of our company for the purposes of the Investment Canada Act if the non-Canadian acquired a majority of our outstanding Common Shares (or less than a majority but controlled our company in fact through the ownership of one-third or more of our outstanding Common Shares) unless it could be established that, on the acquisition, we were not controlled in fact by the acquirer through the ownership of such Common Shares. Certain transactions in relation to our Common Shares would be exempt from review under the Investment Canada Act, including, among others, the following:

1. acquisition of Common Shares by a person in the ordinary course of that person's business as a trader or dealer in securities;

2. acquisition of control of our company in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of the Investment Canada Act; and

3. acquisition of control of our company by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control of our company, through the ownership of voting interests, remains unchanged.

**Change in Control**

There are no provisions in our articles or our bylaws that would have the effect of delaying, deferring or preventing a change in control of our company, and that would operate only with respect to a merger, acquisition or corporate restructuring involving our company.

------

The BCBCA does not contain any provisions that would have the effect of delaying, deferring or preventing a change of control of our company.

**Ownership Threshold**

There are no provisions in our articles or our bylaws or in the BCBCA governing the threshold above which shareholder ownership must be disclosed. The *Securities Act* (British Columbia) requires us to disclose, in our annual general meeting proxy statement, holders who beneficially own more than 10% of our issued and outstanding shares.

United States federal securities laws require us to disclose, in our Annual Report on Form 20-F, holders who own more than 5% of our issued and outstanding shares.

**Changes in the Capital of the Company**

There are no conditions imposed by our articles or our bylaws which are more stringent than those required by the BCBCA.

**C. Material Contracts**

Except for material contracts entered into in the ordinary course of business, set out below are material contracts to which we are a party entered into in the two years preceding the date of this Registration Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investor Rights Agreements. We are party to investor rights agreements with each of B2Gold Corp. (June 5, 2024), Sandstorm Gold Ltd. (amended and restated June 5, 2024), Equinox Gold Corp. (June 28, 2022), and Regal Funds Management Pty Limited (October 31, 2023). These agreements were entered into in connection with share issuances or asset acquisition transactions. Each agreement provides the counterparty with certain rights, including board nomination and observer rights (subject to ownership thresholds), participation and top-up rights in future financings, piggyback registration rights, and access to information, as well as customary transfer restrictions and standstill covenants. Copies of these agreements are filed as exhibits to this Annual Report and are incorporated herein by reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Greenstone GPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Kolpa CPA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Escrow Agreement dated May 12, 2025, amongst B2Gold, Sandstorm, Equinox, Gregory Smith, the spouse of Gregory Smith, Daniel O'Flaherty (through Vandelay Industries SEZC, a company wholly-owned by Mr. O'Flaherty), the spouse of Daniel O'Flaherty, Marcel de Groot, the spouse of Marcel de Groot, Craig Rollins and any investment banks that hold shares of the foregoing persons, and TSX Trust Company.

**D. Exchange Controls**

There are no governmental laws, decrees or regulations in Canada relating to restrictions on the export or import of capital, or affecting the remittance of interest, dividends or other payments to non-resident holders of our Common Shares. Any remittances of dividends to United States residents are, however, subject to a 15% withholding tax (5% if the shareholder is a corporation owning at least 10% of our outstanding Common Shares) pursuant to Article X of the reciprocal tax treaty between Canada and the United States.

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Except as provided in the Investment Canada Act, there are no limitations under the laws of Canada, the Province of British Columbia or in the charter or any other constituent documents of the Company on the right of foreigners to hold or vote our Common Shares.

The following discussion summarizes the principal features of the Investment Canada Act for a non-resident who proposes to acquire the Common Shares.

The Investment Canada Act generally prohibits implementation of a reviewable investment by an individual, government or agency thereof, corporation, partnership, trust or joint venture (each an "**entity**") that is not a "Canadian" as defined in the Investment Canada Act (a "**non-Canadian**"), unless after review, the Director of Investments appointed by the minister responsible for the Investment Canada Act is satisfied that the investment is likely to be of net benefit to Canada. An investment in the Common Shares by a non-Canadian other than a "**WTO Investor**" (as that term is defined by the Investment Canada Act, and which term includes entities which are nationals of or are controlled by nationals of member states of the World Trade Organization) when the Company was not controlled by a WTO Investor, would be reviewable under the Investment Canada Act if it was an investment to acquire control of the Company and the value of the assets of the Company, as determined in accordance with the regulations promulgated under the Investment Canada Act, equals or exceeds $5 million for direct acquisition and over $50 million for indirect acquisition, or if an order for review was made by the federal cabinet on the grounds that the investment related to Canada's cultural heritage or national identity, regardless of the value of the assets of the Company. An investment in the Common Shares by a WTO Investor, or by a non-Canadian when the Company was controlled by a WTO Investor, would be reviewable under the Investment Canada Act if it was an investment to acquire control of the Company and the value of the assets of the Company, as determined in accordance with the regulations promulgated under the Investment Canada Act was not less than a specified amount. A non-Canadian would acquire control of the Company for the purposes of the Investment Canada Act if the non-Canadian acquired a majority of the Common Shares. The acquisition of one third or more, but less than a majority of the Common Shares would be presumed to be an acquisition of control of the Company unless it could be established that, on the acquisition, the Company was not controlled in fact by the acquirer through the ownership of the Common Shares. Certain transactions relating to the Common Shares would be exempt from the Investment Canada Act, including: (a) an acquisition of the Common Shares by a person in the ordinary course of that person's business as a trader or dealer in securities; (b) an acquisition of control of the Company in connection with the realization of security granted for a loan or other financial assistance and not for a purpose related to the provisions of the Investment Canada Act; and (c) an acquisition of control of the Company by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control in fact of the Company, through the ownership of the Common Shares, remained unchanged.

**E. Taxation Certain United States Federal Income Tax Consequences for U.S. Holders**

The following discussion is a summary of certain U.S. federal income tax consequences relating to the acquisition, ownership and disposition of the Common Shares that are applicable to U.S. Holders (as defined below). This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "**Code**"), U.S. Treasury Regulations promulgated thereunder ("**Treasury Regulations**"), judicial authorities, published positions of the IRS, and other applicable authorities, all as in effect on the date hereof. Future legislative, judicial, or administrative modifications, revocations, or interpretations, which may or may not be retroactive, may result in U.S. federal income tax consequences significantly different from those discussed herein. This discussion is not binding on the U.S. Internal Revenue Service (the "**IRS**"). No ruling has been or will be sought or obtained from the IRS with respect to any of the U.S. federal tax consequences discussed herein. There can be no assurance that the IRS will not challenge any of the conclusions described herein or that a U.S. court will not sustain such a challenge.

This discussion is of a general nature only, does not address all of the U.S. federal income tax considerations that may be relevant to a U.S. Holder in light of their circumstances and does not constitute tax advice to any particular holder of Common Shares. Moreover, this summary does not address the Medicare tax on net investment income, alternative minimum tax, non-income tax (such as the gift and estate tax) or any state, local, and non-U.S. tax considerations, relating to the ownership and disposition of Common Shares. This discussion only deals with a beneficial owner that holds Common Shares as "capital assets" within the meaning of Section 1221 of the Code (generally, property held for investment purposes), and does not address the special tax rules that may apply to special classes of taxpayers, such as:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) securities broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) persons that hold Common Shares as part of a hedging or integrated financial transaction or a straddle;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) persons whose functional currency is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) U.S. expatriates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) persons that are owners of an interest in a partnership or other pass-through entity that is a holder of Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) partnerships or other pass-through entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) regulated investment companies or real estate investment trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) banks, thrifts, mutual funds and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) traders that have elected a mark-to-market method of accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) tax-exempt organizations and pension funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) controlled foreign corporations, passive foreign investment companies and corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) persons that own, or have owned, directly, indirectly or by attribution, 5% or more of the total combined voting power of all issued and outstanding shares of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) persons who received their Common Shares upon the exercise of employee stock options or otherwise as compensation or through a tax-qualified retirement plan.

**THE SUMMARY OF U.S. FEDERAL INCOME TAX CONSEQUENCES SET OUT BELOW IS FOR GENERAL INFORMATION ONLY. PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR TAX ADVISORS REGARDING THE APPLICATION OF THE U.S. FEDERAL TAX RULES TO THEIR PARTICULAR CIRCUMSTANCES AS WELL AS THE STATE, LOCAL, NON-U.S. AND OTHER TAX CONSEQUENCES TO THEM OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF THE COMMON SHARES.**

As used herein, "U.S. Holder" means a beneficial owner of the Common Shares that is (i) an individual who is a citizen or resident alien of the United States for U.S. federal income tax purposes, (ii) a corporation (or other entity taxable as a corporation for U.S. federal tax purposes) created or organized under the laws of the United States or any political subdivision thereof, (iii) an estate the income of which is subject to U.S. federal income tax regardless of its source, or (iv) a trust (a) that validly elects to be treated as a U.S. person for U.S. federal income tax purposes or (b) the administration over which a U.S. court can exercise primary supervision and all of the substantial decisions of which one or more U.S. persons have the authority to control.

The U.S. federal income tax treatment of a partner in an entity or arrangement treated as a partnership for U.S. federal income tax purposes that holds the Common Shares generally will depend on the status of the partner and the activities of the partnership. Partnerships considering an investment in the Common Shares and partners in such partnerships are urged to consult their tax advisors regarding the specific U.S. federal income tax consequences to them of the acquisition, ownership and disposition of the Common Shares.

**Ownership and Disposition of the Common Shares if the Company is a PFIC**

*PFIC Status of the Company*

The rules governing PFICs can have adverse tax effects on U.S. Holders. In general, a non-U.S. corporation is a PFIC for any taxable year in which either (i) 75% or more of the non-U.S. corporation's gross income is passive income, or (ii) 50% or more of the average quarterly value of the non-U.S. corporation's assets produce or are held for the production of passive income. Passive income includes, for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities and certain gains from commodities transactions, but passive income does not include gains from the sale of commodities that arise in the active conduct of a commodities business by a non-U.S. corporation, provided that certain other requirements are satisfied. In determining whether or not it is classified as a PFIC, a non-U.S. corporation must take into account its pro rata portion of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest by value.

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Because we did not have active business income, for the taxable year ending December 31, 2024, the Company expects that it may be a PFIC for its prior tax years and may be a PFIC for its current tax year. PFIC classification is factual in nature, and generally cannot be determined until the close of the tax year in question. Additionally, the analysis depends, in part, on the application of complex U.S. federal income tax rules, which are subject to differing interpretations. Consequently, there can be no assurances regarding the PFIC status of the Company during the current tax year or any prior tax year. If the Company was a PFIC as to a U.S. Holder at any time during such U.S. Holder's holding period of Common Shares, then (absent certain elections, discussed below under "-*PFIC Consequences*") it would continue to be a PFIC as to such U.S. Holder and as to such Common Shares.

U.S. Holders should consult their own tax advisors regarding the Company's potential PFIC status.

*PFIC Consequences*

A U.S. Holder that holds stock in a non-U.S. corporation during any taxable year in which the corporation qualifies as a PFIC is subject to special tax rules with respect to (a) any gain realized on the sale, exchange or other disposition of the stock and (b) any "excess distribution" by the corporation to the holder, unless the holder elects to treat the PFIC as a "qualified electing fund" ("**QEF**") or makes a "mark-to-market" election, each as discussed below. An "excess distribution" is that portion of a distribution with respect to PFIC stock that exceeds 125% of the average of such distributions over the preceding three-year period or, if shorter, the U.S. Holder's holding period for its shares. Excess distributions and gains on the sale, exchange or other disposition of stock of a corporation which was a PFIC at any time during the U.S. Holder's holding period are allocated rateably to each day of the U.S. Holder's holding period. Amounts allocated to the taxable year in which the disposition occurs and amounts allocated to any period in the shareholder's holding period before the first day of the first taxable year that the corporation was a PFIC will be taxed as ordinary income (rather than capital gain) earned in the taxable year of the disposition. Amounts allocated to each of the other taxable years in the U.S. Holder's holding period are not included in gross income for the year of the disposition, but are subject to a special tax (equal to the highest ordinary income tax rates in effect for those years, and increased by an interest charge at the rate applicable to income tax deficiencies) that is added to the regular tax for the taxable year in which the disposition occurs. The tax liability for amounts allocated to years before the year of disposition or "excess distribution" cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of shares cannot be treated as capital, even if a U.S. Holder held such shares as capital assets. The preferential U.S. federal income tax rates for dividends and long-term capital gain of individual U.S. Holders (as well as certain trusts and estates) would not apply, and special rates would apply for calculating the amount of the foreign tax credit with respect to excess distributions.

If a corporation is a PFIC for any taxable year during which a U.S. Holder holds shares in the corporation, then the corporation generally will continue to be treated as a PFIC with respect to the holder's shares, even if the corporation no longer satisfies either the passive income or passive asset tests described above, unless the U.S. Holder terminates this deemed PFIC status by electing to recognize gain, which will be taxed under the excess distribution rules as if such shares had been sold on the last day of the last taxable year for which the corporation was a PFIC.

The excess distribution rules may be avoided if a U.S. Holder makes a QEF Election effective beginning with the first taxable year in the holder's holding period in which the corporation is a PFIC. A U.S. Holder that makes a QEF Election is required to include in income its pro rata share of the PFIC's ordinary earnings and net capital gain as ordinary income and long-term capital gain, respectively, subject to a separate election to defer payment of taxes, which deferral is subject to an interest charge. A U.S. Holder whose QEF Election is effective after the first taxable year during the holder's holding period in which the corporation is a PFIC will continue to be subject to the excess distribution rules for years beginning with such first taxable year for which the QEF election is effective.

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In general, a U.S. Holder makes a QEF Election by attaching a completed IRS Form 8621 to a timely filed (taking into account any extensions) U.S. federal income tax return for the year beginning with which the QEF election is to be effective. A QEF Election can be revoked only with the consent of the IRS. In order for a U.S. Holder to make a valid QEF Election, the corporation must annually provide or make available to the holder certain information.

As an alternative to making a QEF Election, a U.S. Holder may make a "mark-to-market" election with respect to its PFIC shares if the shares meet certain minimum trading requirements. If a U.S. Holder makes a valid mark-to-market election for the first tax year in which such holder holds (or is deemed to hold) stock in a corporation and for which such corporation is determined to be a PFIC, such holder generally will not be subject to the PFIC rules described above in respect of its stock. Instead, a U.S. Holder that makes a mark-to-market election will be required to include in income each year an amount equal to the excess, if any, of the fair market value of the shares that the holder owns as of the close of the taxable year over the holder's adjusted tax basis in the shares. The U.S. Holder will be entitled to a deduction for the excess, if any, of the holder's adjusted tax basis in the shares over the fair market value of the shares as of the close of the taxable year; provided, however, that the deduction will be limited to the extent of any net mark-to-market gains with respect to the shares included by the U.S. Holder under the election for prior taxable years. The U.S. Holder's basis in the shares will be adjusted to reflect the amounts included or deducted pursuant to the election. Amounts included in income pursuant to a mark-to-market election, as well as gain on the sale, exchange or other taxable disposition of the shares, will be treated as ordinary income. The deductible portion of any mark-to-market loss, as well as loss on a sale, exchange or other disposition of shares to the extent that the amount of such loss does not exceed net mark-to-market gains previously included in income, will be treated as ordinary loss.

The mark-to-market election applies to the taxable year for which the election is made and all subsequent taxable years, unless the shares cease to meet applicable trading requirements (described below) or the IRS consents to its revocation. The excess distribution rules generally do not apply to a U.S. Holder for tax years for which a mark-to-market election is in effect. However, if a U.S. Holder makes a mark-to-market election for PFIC stock after the beginning of the holder's holding period for the stock, a coordination rule applies to ensure that the holder does not avoid the tax and interest charge with respect to amounts attributable to periods before the election.

A mark-to-market election is available only if the shares are considered "marketable" for these purposes. Shares will be marketable if they are regularly traded on a national securities exchange that is registered with the Securities and Exchange Commission or on a non-U.S. exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. For these purposes, shares will be considered regularly traded during any calendar year during which they are traded, other than in de minimis quantities, on at least 15 days during each calendar quarter. Any trades that have as their principal purpose meeting this requirement will be disregarded. Each U.S. Holder should ask its own tax advisor whether a mark-to-market election is available or desirable.

It is also possible that one or more of the subsidiaries of a PFIC is or will become a PFIC. Such determination is made annually at the end of each taxable year and is dependent upon a number of factors, including the amount and nature of a subsidiary's income, as well as the market valuation and nature of a subsidiary's assets. In such case, assuming a U.S. Holder does not receive from such subsidiary the information that the U.S. Holder needs to make a QEF Election with respect such a subsidiary, a U.S. Holder generally will be deemed to own a portion of the shares of such lower-tier PFIC and may incur liability for a deferred tax and interest charge if the first-tier PFIC receives a distribution from, or dispose of all or part of its interest in, or the U.S. Holder otherwise is deemed to have disposed of an interest in, the lower-tier PFIC.

A U.S. Holder who owns Common Shares during any taxable year in which the Company is treated as a PFIC with respect to such U.S. Holder generally would be required to file statements with respect to such shares on IRS Form 8621 with their U.S. federal income tax returns. Failure to file such statements may result in the extension of the period of limitations on assessment and collection of U.S. federal income taxes.

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**Ownership and Disposition of the Common Shares if the Company is Not a PFIC**

The discussion below would apply to a U.S. Holder if the Company is not a PFIC, or if the Company ceases to be a PFIC (and the U.S. Holder is not a Non-Electing U.S. Holder that would continue to be treated as holding stock of a PFIC as described under "-*Default PFIC Rules*").

*Distributions on the Common Shares*

Subject to the discussion under the heading "*Ownership and Disposition of the Common Shares if the Company is a PFIC*," A U.S. Holder that receives a distribution with respect to a Common Share will be required to include the amount of such distribution in gross income as a dividend to the extent of the current or accumulated "earnings and profits" of the Company, as determined for U.S. federal income tax principles. Such amount will be includable in gross income by a U.S. Holder as ordinary income on the date that the U.S. Holder actually or constructively receives the distribution in accordance with its regular method of accounting for U.S. federal income tax purposes. The amount of any distribution made by the Company in property other than cash will be the fair market value of such property on the date of the distribution.

To the extent that a distribution exceeds the amount of our current and accumulated earnings and profits, as determined under U.S. federal income tax principles, such distribution will be treated first as a tax-free return of capital to the extent of a U.S. Holder's adjusted tax basis in the Common Shares, causing a reduction in the U.S. Holder's adjusted tax basis in the Common Shares held by such U.S. Holder (thereby increasing the amount of gain, or decreasing amount of loss, to be recognized by such U.S. Holder upon a subsequent disposition of such Common Shares), with any amount that exceeds the adjusted tax basis being treated as a capital gain recognized on a sale, exchange or other taxable disposition of such Common Shares. See "*Sale, Exchange or Other Taxable Disposition of the Common Shares*" below. The Company, however, does not intend to maintain calculations of its earnings and profits in accordance with U.S. federal income tax principles, and each U.S. Holder should therefore assume that any distribution by the Company with respect to Common Shares will be treated as a dividend for U.S. federal income tax purposes. In the case of a U.S. Holder that is a corporation, dividends paid on the Common Shares generally will not be eligible for the "dividends received deduction." The dividend rules are complex, and each U.S. Holder is urged to consult its own tax advisor regarding the application of such rules.

So long as the Company is eligible for benefits under the Treaty (as defined under "*Certain Canadian Federal Income Tax Consequences for United States Holders*" in this Registration Statement), dividends a U.S. Holder receives from the Company will be "qualified dividend income" if certain holding period and other requirements (including a requirement that the Company is not a PFIC in the year of the dividend or the immediately preceding year) are met. Qualified dividend income of an individual or other non-corporate U.S. Holder will be subject to a reduced maximum U.S. federal income tax rate.

Any dividends the Company pays to U.S. Holders generally will constitute non-U.S. source "passive category" income for U.S. foreign tax credit limitation purposes. Subject to certain limitations, Canadian tax withheld with respect to distributions made on the Common Shares may be treated as foreign taxes eligible for credit against a U.S. Holder's U.S. federal income tax liability. Alternatively, a U.S. Holder may, subject to applicable limitations, elect to deduct the otherwise creditable Canadian withholding taxes for U.S. federal income tax purposes. The rules governing the foreign tax credit are complex and involve the application of rules that depend upon a U.S. Holder's particular circumstances. Accordingly, a U.S. Holder is urged to consult its tax advisor regarding the availability of the foreign tax credit under its particular circumstances.

 *Sale, Exchange or Other Taxable Disposition of the Common Shares*

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Subject to the discussion under the heading "*Ownership and Disposition of the Common Shares if the Company is a PFIC*," a U.S. Holder generally will recognize gain or loss upon the taxable sale, exchange or other disposition of the Common Shares in an amount equal to the difference between (i) the U.S. dollar value of the amount realized upon the sale, exchange or other taxable disposition and (ii) such U.S. Holder's adjusted tax basis in the Common Shares. Generally, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if, on the date of the sale, exchange or other taxable disposition, such U.S. Holder has held the Common Shares for more than one year. If such U.S. Holder is an individual or other non-corporate U.S. Holder, long-term capital gains will be subject to a reduced maximum U.S. federal income tax rate. The deductibility of capital losses is subject to limitations under the Code. Gain or loss, if any, that a U.S. Holder realizes upon a sale, exchange or other taxable disposition of the Common Shares generally will be treated as having a U.S. source for U.S. foreign tax credit limitation purposes.

**Receipt of Foreign Currency**

The amount of any distribution paid to a U.S. Holder in foreign currency or on the sale, exchange or other taxable disposition of Common Shares generally will be equal to the U.S. dollar value of such foreign currency based on the exchange rate applicable on the date of actual or constructive receipt (regardless of whether such foreign currency is converted into U.S. dollars at that time). If the foreign currency received is not converted into U.S. dollars on the date of receipt, a U.S. Holder will have a tax basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Any U.S. Holder that receives payment in foreign currency and engages in a subsequent conversion or other disposition of the foreign currency may have a foreign currency exchange gain or loss that would be treated as ordinary income or loss, and generally will be U.S. source income or loss for foreign tax credit purposes. Different rules apply to U.S. Holders that use the accrual method of tax accounting. Each U.S. Holder is urged to consult its own U.S. tax advisor regarding the U.S. federal income tax consequences of receiving, owning, and disposing of foreign currency.

**Information Reporting; Backup Withholding Tax**

Dividend payments and proceeds paid from the sale or other taxable disposition of ordinary shares may be subject to information reporting to the IRS. In addition, a U.S. Holder (other than exempt holders who establish their exempt status if required) may be subject to backup withholding on cash payments received in connection with dividend payments and proceeds from the sale or other taxable disposition of our ordinary shares made within the United States or through certain U.S.-related financial intermediaries.

Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number, makes other required certification and otherwise complies with the applicable requirements of the backup withholding rules.

Backup withholding is not an additional tax. Rather, any amount withheld under the backup withholding rules will be creditable or refundable against the U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

***The foregoing discussion of certain U.S. federal income tax considerations is a general summary only and should not be considered as income tax advice or relied upon for tax planning purposes. Accordingly, each U.S. Holder should consult with its own tax advisor regarding U.S. federal, state, local and non-U.S. income and other tax consequences of the ownership and disposition of our Common Shares.***

**Certain Canadian Federal Income Tax Consequences for United States Holders**

The following summarizes, as of the date hereof, certain Canadian federal income tax considerations generally applicable under the *Income Tax Act* (Canada) and the regulations thereunder (collectively, the "**Canadian Tax Act**") and the Canada-United States Tax Convention (1980), as amended, (the "**Treaty**") to the holding and disposition of the Common Shares.

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Comment is restricted to beneficial owners of the Common Shares, who, at all relevant times and for purposes of the Canadian Tax Act and the Treaty: (i) are not (and are not deemed to be) resident in Canada; (ii) are resident solely in the United States and are entitled to benefits of the Treaty; (iii) do not use or hold, and are not deemed to use or hold, the Common Shares in, or in the course of, carrying on a business in Canada; (iv) deal at arm's length with and are not affiliated with the Company; (v) hold the Common Shares as capital property; and (vi) are not an "authorized foreign bank" (as defined in the Canadian Tax Act) or an insurer that carries on business in Canada and elsewhere (each such holder, a "**US Resident Holder**"). Generally, a US Resident Holder's Common Shares will be considered to be capital property of the holder provided that the US Resident Holder is not a trader or dealer in securities, does not acquire, hold or dispose of (or is not deemed to have acquired, held or disposed of) the Common Shares in one or more transactions considered to be an adventure or concern in the nature of trade, and does not hold or use (or is not deemed to hold or use) the Common Shares in the course of carrying on a business of trading or dealing in securities.

Certain U.S. resident entities that are fiscally transparent for U.S. federal income tax purposes (including limited liability companies) may not in all circumstances be entitled to benefits under the Treaty. US Resident Holders are urged to consult with their own tax advisors to determine their entitlement to benefits under the Treaty and related compliance requirements based on their particular circumstances.

This summary is based upon the current provisions of the Canadian Tax Act and the Treaty in effect as of the date hereof, the Company's understanding of the current published administrative policies and assessing practices of the Canada Revenue Agency (the "**CRA**") published in writing and publicly available prior to the date hereof and all specific proposals to amend the Canadian Tax Act publicly and officially announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the "**Tax Proposals**"). This summary assumes that the Tax Proposals will be enacted in the form proposed. No assurances can be given that the Tax Proposals will be enacted as proposed or at all, or that legislative, judicial or administrative changes will not modify or change the statements expressed herein. This summary does not otherwise anticipate or take into account any changes in law or in the administrative policies or assessing practices of the CRA, whether by legislative, governmental or judicial decision or action, nor does it take into account any other federal or any provincial, territorial or foreign tax legislation or considerations, which may differ significantly from those set out herein.

***This summary is of a general nature only, is not exhaustive of all possible Canadian federal income tax considerations of acquiring, holding or disposing of Common Shares and is not intended and should not be construed as legal or tax advice to any particular US Resident Holder. No representations with respect to the income tax consequences to any holder of the Common Shares are made herein. The tax consequences of acquiring, holding and disposing of the Common Shares will vary according to the holder's particular circumstances. Accordingly, holders of the Common Shares are urged to consult their own tax advisors with respect to their own particular circumstances. This summary is qualified accordingly.***

**Currency**

For purposes of the Canadian Tax Act, all amounts relating to the acquisition, holding or disposition of Common Shares must be expressed in Canadian dollars. Amounts denominated in any other currency must be converted into Canadian dollars based on the exchange rates determined in accordance with the Canadian Tax Act.

**Dividends**

Under the Canadian Tax Act, dividends paid or credited or deemed to be paid or credited to a US Resident Holder by the Company are subject to Canadian withholding tax at the rate of 25% on the gross amount of the dividend, unless such rate is reduced by the terms of an applicable tax treaty. Under the Treaty, the rate of withholding tax on dividends paid or credited to a US Resident Holder is generally reduced to 15% of the gross amount of the dividend (or 5% in the case of a US Resident Holder that is a company that owns, directly or indirectly, at least 10% of the Company's voting shares). US Resident Holders should consult their own tax advisors to determine their entitlement to benefits under the Treaty based on their particular circumstances.

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**Disposition of Common Shares**

A US Resident Holder generally will not be subject to tax under the Canadian Tax Act in respect of any capital gain realized by such US Resident Holder on the disposition or deemed disposition of a Common Share, nor will capital losses arising therefrom be recognized under the Canadian Tax Act, unless the Common Share constitutes "taxable Canadian property" to the US Resident Holder thereof for purposes of the Canadian Tax Act at the time of the disposition, and the gain is not exempt from tax pursuant to the terms of an applicable tax treaty.

Common Shares generally will not be "taxable Canadian property" to a US Resident Holder provided that, at the time of the disposition or deemed disposition, the Common Shares are listed on a "designated stock exchange" for purposes of the Canadian Tax Act (which currently includes the TSX-V and the NYSE American), unless at any time during the 60-month period immediately preceding the disposition, the following two conditions are met concurrently: (a) (i) the US Resident Holder, (ii) persons with whom the US Resident Holder did not deal at arm's length, (iii) a partnership in which the US Resident Holder or a person described in (ii) holds a membership interest directly or indirectly through one or more partnerships, or (iv) any combination of the persons and partnerships described in (i) through (iii), owned 25% or more of the issued shares of any class or series of the capital stock of the Company; and (b) more than 50% of the fair market value of the Common Shares was derived directly or indirectly, from one or any combination of real or immovable property situated in Canada, "Canadian resource properties", "timber resource properties" (each as defined in the Canadian Tax Act), or options in respect of or interests in, or, for civil law, rights in, any such properties (whether or not such property exists). Notwithstanding the foregoing, in certain circumstances set out in the Canadian Tax Act, the Common Shares may be deemed to be "taxable Canadian property".

Even if a Common Share is taxable Canadian property to a US Resident Holder, any capital gain realized upon the disposition or deemed disposition of such Common Share may not be subject to tax under the Canadian Tax Act if the Common Shares are "treaty-protected property" (as defined in the Canadian Tax Act).

**A US Resident Holder whose Common Shares may constitute taxable Canadian property should consult their own tax advisors regarding the tax and compliance considerations that may be relevant to them.**

**F. Dividends and Paying Agents**

We have not, since the date of our incorporation, declared or paid any dividends or other distributions on our Common Shares, and do not currently have a policy with respect to the payment of dividends or other distributions. We do not currently pay dividends and do not intend to pay dividends in the foreseeable future. The declaration and payment of any dividends in the future is at the discretion of the Board and will depend on numerous factors, including compliance with applicable laws, financial performance, our working capital requirements and such other factors as its directors consider appropriate. There can be no assurance that we will pay dividends under any circumstances. See Item 3.D, "*Risk Factors - Risks Related to the Company - Dividends*".

**G. Statements by Experts**

Certain technical and scientific information contained in this Registration Statement was reviewed or approved by Diego Airo, P. Eng., and Vice President, Project Evaluation of Versamet Royalties and a "qualified person" under NI 43-101 and SK1300.

The financial statements of the Company for the years ended December 31, 2024 and 2023 have been audited by KMPG LLP, independent registered public accounting firm, as stated in their report appearing herein.

**H. Documents on Display**

Upon the effectiveness of this filing, we will be subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and we will thereafter file reports and other information with the SEC. Reports filed with, and other information furnished to, the SEC are available from the SEC's Electronic Data Gathering and Retrieval System (EDGAR) at <u>www.sec.gov</u>. We also file our annual reports and other information with the securities regulatory authorities of Canada via SEDAR+ at <u>www.sedarplus.ca</u>.

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**I. Subsidiary Information**

Not applicable.

**J. Annual Report to Security Holders**

Not applicable.

**ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Market risk is the risk that changes in market prices, such as commodity prices, interest rates and foreign exchange rates will affect our net earnings or the value of financial instruments. Our objective is to manage and mitigate market risk exposures within acceptable limits, while maximizing returns.

**A. Commodity Price Risks**

Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. Our asset portfolio has exposure to commodity prices, predominantly gold. Commodity prices, especially gold, greatly affect our value and the potential value of our property and investments.

**B. Currency Risk**

Financial instruments that impact our net earnings or other comprehensive income due to currency fluctuation include cash accounts and investments denominated in Canadian dollars. Fluctuations in the exchange rate between the US dollar and the Canadian dollar, at December 31, 2024 would not have a material impact on the Company's net earnings and other comprehensive income.

**C. Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. Our short-term investments into fixed rate guaranteed investment certificates with one year maturities or less, and so are not exposed to interest rate risk. Our Credit Facility (as amended) is subject to floating interest rates and depending on the amount drawn down on the Credit Facility (as amended), a movement in the interest rate could have a material impact on our net earnings and comprehensive income.

**D. Equity Price Risk**

Equity price risk is the risk that the fair value of or future cash flows from the Company's financial instruments will significantly fluctuate because of changes in market prices. The Company is exposed to market risk in trading its investments in unfavorable market conditions which could result in dispositions of investments at less than favorable prices. Additionally, the Company adjusts its investments to fair value at the end of each reporting period. This process could result in write-downs of the Company's investments over one or more reporting periods, particularly during periods of overall market instability. The sensitivity of the Company's net income (loss) to changes in market prices at December 31, 2024 would change the Company's net income (loss) by US$66,000 as a result of a 10% change in the market price of its investments.

There have been no changes in management's methods for managing market risks since during the years ended December 31, 2024 and 2023.

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Please also see the information set forth under Note ♦ on pages F-♦ to F-♦ of our financial statements and related notes included in Item 18.

**ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

Not applicable.

**PART II**

**ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

Not applicable.

**ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

Not applicable.

**ITEM 15: CONTROLS AND PROCEDURES**

Not applicable.

**ITEM 16: [RESERVED]**

**A. AUDIT COMMITTEE FINANCIAL EXPERT**

Not applicable.

**B. CODE OF ETHICS**

Not applicable.

**C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

Not applicable.

**D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not Applicable.

**E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

Not Applicable.

**F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

Not Applicable.

**G. CORPORATE GOVERNANCE**

Not applicable.

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**H. MINE SAFETY DISCLOSURE**

Not applicable.

**I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**J. INSIDER TRADING POLICIES**

Not applicable.

**K. CYBERSECURITY**

Not applicable.

**PART III**

**ITEM 17: FINANCIAL STATEMENTS**

Not applicable. See Item 18.

**ITEM 18: FINANCIAL STATEMENTS**

See pages F-1 through F-♦ of this Registration Statement.

**ITEM 19: EXHIBITS**

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description of Exhibit** |
| 1.1 | Notice of Articles |
| 1.2 | Articles |
| 4.1\* | Amended and Restated Gold Purchase Agreement dated October 31, 2023 amongst Equinox Gold Corp., Sandbox Royalties Corp. and Regal Partners Royalties A Pty Limited (CAN 633 203 433) |
| 4.2\* | Investor Rights Agreement, dated June 5, 2024, between Versamet Royalties Corporation and B2Gold Corp. |
| 4.3\* | Amended and Restated Investor Rights Agreement, dated June 5, 2024, between Versamet Royalties Corporation and Sandstorm Gold Ltd. |
| 4.4\* | Investor Rights Agreement, dated June 28, 2022, between Versamet Royalties Corporation and Equinox Gold Corp. |
| 4.5\* | Investor Rights Agreement, dated October 31, 2023, between Versamet Royalties Corporation and Regal Funds Management Pty Limited (as trustee for the Regal Resources Royalties Fund). |
| 4.6\* | Copper Purchase Agreement dated as of April 1, 2025 amongst Versamet Royalties Corporation, Kolpa Canada Ltd. and Endeavour Silver Corp. |
| 4.7\* | Escrow Agreement dated May 12, 2025 amongst Versamet Royalties Corporation, TSX Trust Company, and certain securityholders. |
| 4.8 | Equity Incentive Plan |

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\*Certain confidential information contained in this exhibit has been excluded from this exhibit because it is both not material and is the type that the registrant treats as private or confidential.

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**GLOSSARY OF CERTAIN TECHNICAL TERMS**

The following is a glossary of certain technical terms that appear in this Registration Statement.

"**AA**" means atomic absorption.

"**AISC**" means all-in sustaining costs.

"**BIF**" means facies iron formations.

"**CIP**" means a carbon in pulp.

"**concentration**" means the process by which crushed, and ground ore is separated into metal concentrates and reject material.

"**CRM**" means certified reference material.

"**cut-off grade**" means a calculated minimum metal grade at which material can be mined and processed at break-even cost.

"**DDH**" means diamond drill holes.

"**development**" means the process of constructing a mining operation and the infrastructure to support the operation.

"**dilution**" means the effect of waste or low-grade ore which is unavoidably included in mined ore.

"**ECA**" means Environmental Compliance Approvals.

"**EIS/EA**" means environmental impact statement / environmental assessment.

"**exploration**" means the process of ascertaining the existence, location, extent or quality of a mineral deposit.

"**FS**" means feasibility study.

"**G&A**" means general & administration.

"**GEO**" means Gold Equivalent Ounce.

"**g/t**" means grams per tonne.

"**grade**" means the concentration of an element of interest expressed as relative mass units (percentage, parts per million, grams per tonne, ounces per ton, etc.).

"**ha**" means hectares.

"**HPGR**" means high pressure grinding roll.

"**Indicated Mineral Resource**" means that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.

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"**Inferred Mineral Resource**" means that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

"**JORC**" means the Joint Ore Reserves Committee Code, 2012 Edition, the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

"**km**" means kilometer.

"**koz**" means a thousand ounces.

"**kt**" means a thousand tonnes.

"**LOM**" means life of mine.

"**m**" means meter.

"**MDMER**" means Federal Metal and Diamond Mining Effluent Regulations.

"**Measured Mineral Resource**" means that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.

"**MIK**" means multiple indicator kriging.

"**mill**" means a facility where ore is finely ground and where ore undergoes physical or chemical treatment to extract the valuable commodities.

"**Mineral Reserve**" means the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The reference point at which Mineral Reserves are defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported. The public disclosure of a Mineral Reserve must be demonstrated by a PFS or FS.

"**Mineral Resource**" means a concentration or occurrence of solid material of economic interest in or on the earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.

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"**mineralization**" means the process or processes by which a mineral or minerals are introduced into a rock, resulting in a potentially valuable deposit.

"**Moz**" means million ounces.

"**MRE**" means mineral resource estimate.

"**Mt**" means million tonnes.

"**Mtpa**" means millions of tonnes per annum.

"**open pit**" means the use of surface mining to extract ore from an open pit. The geometry of the open pit may vary with the characteristics of the ore.

"**ore**" means a mineral or aggregate of minerals from which metal can be economically mined or extracted.

"**orebody**" means a sufficiently large amount of ore that is contiguous and can be mined economically.

"**ounce**" or "**oz**" means a troy ounce, being 31.1035 grams.

"**PEA**" means preliminary economic assessment.

"**PFS**" means preliminary feasibility study.

"**Probable Mineral Reserve**" means the economically mineable part of an indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the modifying factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

"**Proven Mineral Reserve**" means the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the modifying factors.

"**QA/QC**" means quality assurance and quality control.

"**RC**" means reverse circulation.

"**RCGC**" means reverse circulation grade control.

"**reclamation**" means the process of stabilizing, contouring, maintaining, conditioning and/or reconstructing the surface of land used or affected by mining activities to a state of equivalent land capability. Reclamation standards vary widely, but usually address issues of ground and surface water, topsoil, final slope gradients, overburden and revegetation.

"**refining**" means the process of purifying an impure metal.

"**SAG**" means semi-autogenous grinding

"**t**" means a tonne.

"**tailings**" means the finely ground rock from which valuable minerals have been extracted from concentration.

"**tonne**" means a metric tonne, being 1 ton equal to 0.9072 tonnes.

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"**waste**" means barren rock in a mine, or mineralized material that is too low in grade to be mined and milled at a profit.

"**WSF**" means water storage facility.

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**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this registration statement on its behalf.

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| | |
|:---|:---|
| **VERSAMET ROYALTIES CORPORATION** | **VERSAMET ROYALTIES CORPORATION** |
| By: |  |
| Name: | Daniel O'Flaherty |
| Title: | Chief Executive Officer<br>(Principal Executive Officer) |

---

Date: ♦, 2025

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![](formdrsaxu009.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Formerly Sandbox Royalties Corp. |
| &nbsp;&nbsp;&nbsp; <br> **Financial Statements**<br> For the years ended December 31, 2024 and 2023 | &nbsp;&nbsp;&nbsp; <br> **Financial Statements**<br> For the years ended December 31, 2024 and 2023 |

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**DRAFT**

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors<br>Versamet Royalties Corporation:

*Opinion on the Financial Statements*

We have audited the accompanying statements of financial position of Versamet Royalties Corporation (the Company) as of December 31, 2024 and 2023, the related statements of loss and comprehensive loss, changes in equity, and cash flows for each of the years in the two-year period ended December 31, 2024 and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the financial performance and its cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

*Change in Accounting Principle* 

As discussed in Notes 2 and 10 to the financial statements, the Company has changed its method of classifying liabilities as current or non-current as of January 1, 2023 due to the adoption of amendments to *IAS 1, Presentation of Financial Statements*, and included the statement of financial position as of January 1, 2023.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

Chartered Professional Accountants

We have served as the Company's auditor since 2022.

Vancouver, Canada

September xx, 2025

Financial Statements <br> F-2

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| | |
|:---|:---|
| **Statements of Financial Position** | &nbsp;&nbsp;(expressed in United States dollars) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Note** | **December 31, 2024**<br>**$** | **Restated (note 2)<br>December 31, 2023**<br>**$** | **Restated (note 2)**<br>**Jan. 1, 2023**<br>**$** |
| Asset |  |  |  |  |
| **Current** |  |  |  |  |
| Cash and cash equivalents |  | 1430897 | 6720217 | 4084448 |
| Note receivable | 8 |  |  | 2213369 |
| Trade and other receivables |  | 369066 | 421462 | 771685 |
| Prepaid and other assets |  | 26795 | 53877 | 7270 |
| Greenstone gold interest | 4 | 7627747 | 5631689 |  |
|  |  | **9454505** | **12827245** | **7076772** |
| **Non-current** |  |  |  |  |
| Investments | 5 | 729981 | 1662499 | 1551732 |
| Greenstone gold interest | 4 | 54658056 | 50585948 |  |
| Royalty and other interests | 6, 7 | 165406003 | 92662910 | 70582154 |
| **Total assets** |  | **230248545** | **157738602** | **79210658** |
| Liabilities |  |  |  |  |
| **Current** |  |  |  |  |
| Accounts payable and accrued liabilities | 16 | 1232088 | 226024 | 111935 |
| Convertible debt | 10 | 12333503 | 12567537 | 8830134 |
| Convertible debt derivative liability | 10 | 3284715 | 3684608 |  |
|  |  | **16850306** | **16478169** | **8942069** |
| **Non-current** |  |  |  |  |
| Revolving credit facility | 9 | 608442 | 19711609 |  |
| Convertible debt | 10 |  | 7380872 | 6312734 |
| Deferred income tax liabilities | 12 | 1461965 | 397380 | 212944 |
| **Total liabilities** |  | **18920713** | **43968030** | **15467747** |
| Shareholders' equity |  |  |  |  |
| Share capital | 11 | 215758347 | 118286517 | 66829405 |
| Share-based compensation reserve | 11 | 4764630 | 2425581 | 801191 |
| Deficit |  | (7966644) | (5519494) | (2395346) |
| Accumulated other comprehensive loss | 5 | (1228501) | (1422032) | (1492339) |
| **Total shareholders' equity** |  | **211327832** | **113770572** | **63742911** |
| **Total liabilities and shareholders' equity** |  | **230248545** | **157738602** | **79210658** |

---

Nature of operations (note 1)

Subsequent events (notes 11 & 18)

Approved by the Board of Directors on March 31, 2025 <br> <br> "Marcel de Groot" "Hayley Thomasen"

The accompanying notes form an integral part of these financial statements.

Financial Statements <br> F-3

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| | |
|:---|:---|
| **Statements of Loss and Comprehensive Loss** | &nbsp;&nbsp;(expressed in United States dollars) |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Note** | **Year ended**<br>**December 31, 2024**<br>**$** | **Year ended**<br>**December 31, 2023**<br>**$** |
| Revenue | 14 | 12024648 | 3139677 |
| Cost of sales | 14 | (9989438) | (1396675) |
| Depletion | 14 | (842729) | (900537) |
| **Gross profit** |  | **1192481** | **842465** |
| Operating expenses |  |  |  |
| Business development expenses |  | (49438) | (33945) |
| Change in fair value of Greenstone gold interest | 4 | 14059716 | 4834977 |
| General and administrative expenses |  | (391206) | (116714) |
| Impairment of accounts receivable | 14 |  | (401557) |
| Impairment of royalty interest | 7, 14 | (8350000) | (2046222) |
| Professional fees |  | (503774) | (770003) |
| Salaries and benefits |  | (2016017) | (901263) |
| Share-based compensation | 11 | (2564125) | (1624390) |
| **Operating income (loss)** |  | **1377637** | **(216652)** |
| Other income and expense |  |  |  |
| Foreign exchange gain (loss) |  | 779957 | (386475) |
| Finance and interest expense | 9, 10 | (3579139) | (2010585) |
| Change in fair value of convertible debt derivative liability | 10 | 399893 | (3691) |
| Interest income |  | 148219 | 112479 |
| **Net loss before income tax expense** |  | **(873433)** | **(2504924)** |
| Current income tax expense | 12 | (509132) | (434788) |
| Deferred income tax expense | 12 | (1064585) | (184436) |
| **Net loss for the year** |  | **(2447150)** | **(3124148)** |
| Net loss per share |  |  |  |
| Basic and diluted | 11 | (0.01) | (0.02) |
| **Weighted average number of common shares outstanding** <br>**(basic and diluted)** | **11** | **381009983** | **185416537** |
| Other comprehensive income for the year |  |  |  |
| Items that will not subsequently be reclassified to net income (loss) |  |  |  |
| Income on investments | 5 | 193531 | 70307 |
| **Other comprehensive income for the year** |  | **193531** | **70307** |
| **Total comprehensive loss for the year** |  | **(2253619)** | **(3053841)** |

---

The accompanying notes form an integral part of these financial statements.

Financial Statements <br> F-4

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| | |
|:---|:---|
| **Statements of Changes in Equity** | &nbsp;&nbsp;(expressed in United States dollars) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Share capital<br>(Number of<br>shares, issued<br>and fully paid)** | **Share capital**<br>**$** | **Share-based<br>compensation<br>reserve**<br>**$** | **Deficit**<br>**$** | **Accumulated<br>other<br>comprehensive<br>income (loss)**<br>**$** | **Total**<br>**$** |
| **Balance - Dec. 31, 2022** |  | **168773761** | **66829405** | **801191** | **(2395346)** | **(1492339)** | **63742911** |
| Shares issued upon conversion of Sandstorm Convertible Note | 10 | 33837247 | 8880711 |  |  |  | 8880711 |
| Shares issued for private placement | 11 | 42560785 | 21500000 |  |  |  | 21500000 |
| Shares issued pursuant to asset acquisitions | 6 | 29557436 | 15000000 |  |  |  | 15000000 |
| Shares issued for private placement | 11 | 11507141 | 5960864 |  |  |  | 5960864 |
| Shares issued as interest payment | 10 | 218580 | 115537 |  |  |  | 115537 |
| Share-based compensation | 11 |  |  | 1624390 |  |  | 1624390 |
| Net loss and comprehensive loss for the year |  |  |  |  | (3124148) | 70307 | (3053841) |
| **Balance - Dec. 31, 2023** |  | **286454950** | **118286517** | **2425581** | **(5519494)** | **(1422032)** | **113770572** |
| Shares issued upon conversion of Sandstorm Convertible Note | 10 | 24179193 | 7629314 |  |  |  | 7629314 |
| Shares issued pursuant to asset acquisitions | 6 | 139519815 | 81859811 |  |  |  | 81859811 |
| Shares issued as interest payment | 10 | 881847 | 488022 |  |  |  | 488022 |
| Shares issued for private placement | 11 | 12782812 | 7494683 |  |  |  | 7494683 |
| Share-based compensation | 11 |  |  | 2339049 |  |  | 2339049 |
| Net income and comprehensive income for the period |  |  |  |  | (2447150) | 193531 | (2253619) |
| **Balance - Dec. 31, 2024** |  | **463818617** | **215758347** | **4764630** | **(7966644)** | **(1228501)** | **211327832** |

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The accompanying notes form an integral part of these financial statements.

Financial Statements <br> F-5

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| | |
|:---|:---|
| **Statements of Cash Flows** | &nbsp;&nbsp;(expressed in United States dollars) |

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| | | | |
|:---|:---|:---|:---|
|  | **Note** | **Year ended**<br>**December. 31, 2024**<br>**$** | **Year ended**<br>**December. 31, 2023**<br>**$** |
| **Cash flows provided by (used in)** |  |  |  |
| **Operating activities** |  |  |  |
| Net loss for the year |  | (2447150) | (3124148) |
| Items not affecting cash: |  |  |  |
| Non-cash cost of sales related to Greenstone gold interest | 4 | 7991550 | 1117340 |
| Depletion | 14 | 842729 | 900537 |
| Share-based compensation | 11 | 2564125 | 1624390 |
| Change in fair value of Greenstone gold interest | 4 | (14059716) | (4834977) |
| Change in fair value of convertible debt derivative liability | 10 | (399893) | 3691 |
| Impairment of accounts receivable | 14 |  | 401557 |
| Impairment of royalty interest | 7, 14 | 8350000 | 2046222 |
| Unrealized foreign exchange (gain) loss |  | (796539) | 382243 |
| Finance and interest expense (net of interest income) | 9, 10 | 3430920 | 1898106 |
| Income tax expense | 12 | 1573717 | 619224 |
| Changes in non-cash working capital: |  |  |  |
| Trade and other receivables and prepaid assets |  | 75863 | (95159) |
| Accounts payable and accrued liabilities |  | 780988 | 117035 |
| Income taxes paid | 12 | (509132) | (434788) |
|  |  | **7397462** | **621273** |
| **Investing activities** |  |  |  |
| Note receivable | 8 |  | 2219592 |
| Acquisition of Greenstone gold interest | 4 |  | (52500000) |
| Asset acquisitions | 6, 7 | (75975) | (10027516) |
| Sale of investment | 5 | 1032070 | - |
|  |  | **956095** | **(60307924)** |
| **Financing activities** |  |  |  |
| Net proceeds from drawdown on BMO credit facility | 9 |  | 25649383 |
| Repayment of BMO revolving credit facility | 9 | (19000000) | (6330172) |
| Net proceeds (repayments) from debt issuances | 10 |  | 15426528 |
| Net proceeds from private placements | 11 | 7494683 | 27460864 |
| Interest (paid) received | 9, 10 | (1987674) | (15113) |
|  |  | **(13492991)** | **62191490** |
| Impact of foreign exchange on cash |  | (149886) | 130930 |
| **(Decrease) Increase in cash for the year** |  | (5289320) | 2635769 |
| Cash - beginning of year |  | 6720217 | 4084448 |
| **Cash and cash equivalents - end of year** |  | **1430897** | **6720217** |

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Supplemental cash flow information (note 15)

The accompanying notes form an integral part of these financial statements.

Financial Statements <br> F-6

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Notes to the Financial Statements** | &nbsp;&nbsp;&nbsp;&nbsp;**Notes to the Financial Statements** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the years ended December 31, 2024 and 2023 | Expressed in United States dollars unless otherwise stated |

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**1.** **Nature of Operations**

Sandbox Royalties Corp. changed its name to Versamet Royalties Corporation. ("Versamet" or "the Company") on June 5, 2024. The Company was incorporated under the British Columbia Business Corporations Act on January 24, 2011. Versamet is the parent entity with no subsidiaries.

Versamet is a diversified metals royalty and streaming company with exposure to a range of resource royalties and streams including gold, silver, copper, zinc, graphite and uranium, across a variety of jurisdictions. Typically, in return for making an upfront payment to acquire a royalty or stream on a mining operation or project, Versamet receives a portion of the revenue generated from the mine on an ongoing basis, usually over the life of the mine or receives metal deliveries over a pre-determined period or up to a pre-determined quantity.

On August 13, 2024, the Company closed the second and final tranche of the acquisition of a portfolio of royalties (the "B2Gold Royalty Portfolio") from B2Gold Corp. ("B2Gold") in exchange for US$81.8 million in Common Shares of the Company ("Common Shares"), being 139.5 million Common Shares at a price of C$0.80 per Common Share (the "Transaction") (note 6). Additionally, in conjunction with the Transaction, Sandstorm Gold Ltd. ("Sandstorm") agreed to convert the remaining principal outstanding on the Sandstorm Convertible Note into Common Shares at a price of C$0.80 per Common Share (note 10). In connection with the Transaction, Sandbox Royalties Corp. changed its name to Versamet Royalties Corporation.

The head office, principal address and registered office of Versamet is located at Suite 3200, 733 Seymour St, Vancouver, British Columbia, V6B 5J3.

These financial statements were approved and authorized for issue by the Board of Directors of the Company on March 31, 2025.

Financial Statements <br> F-7

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**2.** **Basis of Presentation and Material Accounting Policy Information**

Statement of Compliance

These financial statements have been prepared in accordance with IFRS Accounting Standards ("IFRS Accounting Standards" or "IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").

Basis of Presentation

These financial statements have been prepared on a historical cost basis except for certain financial instruments, which are measured at fair value. These financial statements are presented in Untied States dollars, unless otherwise noted.

Material Accounting Policy Information

**Cash and cash equivalents**

Cash and cash equivalents include cash at bank, demand deposits and money market investments with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value.

**Stream, Royalty and other Interests** 

Stream, royalty and other interests consist of acquired royalty and stream metal purchase agreements. These interests are recorded at cost and capitalized as tangible assets with finite lives. They are subsequently measured at cost less accumulated depletion and accumulated impairment losses, if any. Project evaluation costs that are not related to a specific agreement are expensed in the period incurred.

For asset acquisitions of stream, royalty and other interests that do not constitute a business combination, the identifiable assets acquired are recognized at their fair values at the acquisition date. The acquisition date is the date at which the Company obtains control over the assets acquired. Transaction costs are capitalized.

Stream, royalty and other interests related to producing mines are bifurcated into a depletable and non-depletable balance. The split between the depletable and non-depletable balances is based on a discounted cash flow analysis of the mine plan in question for that royalty or stream. Included in the depletable balance is 100% of Mineral Reserves and a portion of Resources. Included in the non-depletable balance are the remaining Resources (not included in the depletable balance) and any exploration potential, if applicable. The depletable balance is depleted using the units-of-production method over the life of the property to which the agreement relates, which is estimated using available information of Proven and Probable Reserves and the portion of Resources expected to be classified as Mineral Reserves at the mine corresponding to the specific interest. The non-depletable balance is not depleted but along with the depletable balance is evaluated for impairments when events or circumstances indicate that the carrying amount may not be recoverable.

Financial Statements <br> F-8

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On acquisition of a stream, royalty or other interest, an allocation of its cost may be attributed to the exploration potential of the interest and is recorded as a non-depletable asset on the acquisition date. The value of the exploration potential is accounted for in accordance with IFRS 6, Exploration and Evaluation of Mineral Resources ("IFRS 6") and is not depleted until such time as the technical feasibility, commercial viability, and a development decision have been established, at which point the value of the asset is reclassified and accounted for in accordance with IAS 16, Property, Plant and Equipment. The asset is subject to an impairment test prior to reclassification in accordance with IFRS 6.

**Impairment of Stream, Royalty and Other Interests** 

Evaluation of the carrying values of each stream, royalty or other interest is undertaken when events or changes in circumstances indicate that the carrying values may not be recoverable. Impairment is assessed at the level of cash-generating units, which is the smallest identifiable group of assets that generates cash inflows and largely independent of the cash inflows from other assets. This is usually at the individual stream, royalty, or other interest level for each property from which cash inflows are generated.

An impairment loss is recognized for the amount by which the asset's carrying value exceeds its recoverable amount, which is the higher of its fair value less costs of disposal ("FVLCD") and its value in use ("VIU"). Estimated future cash flows are calculated using estimated production, sales prices and a discount rate. Estimated future production is determined using current Reserves and the portion of Resources expected to be classified as Mineral Reserves, as well as exploration potential expected to be converted into Resources or Reserves. Estimated sales prices are determined by reference to an average of long-term metal price forecasts by research analysts and management's expectations. The discount rates used are those which are considered appropriate to the mine in question, its risk profile and the type of commodity. All inputs used are those that an independent market participant would consider appropriate. In addition, the Company may use other market approaches for determining the recoverable amount which may include an estimate of (i) dollar value per unit of mineral reserve/resource; (ii) net asset value multiples (iii) cash-flow multiples; (iv) comparable transactions or (v) market capitalization of comparable assets.

An assessment is made at each reporting period if there is any indication that a previous impairment loss may no longer exist or has decreased. If indications are present, the carrying value of the interest is increased to the revised estimate of its recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount net of depletion that would have been determined had no impairment loss been recognized for the interest in previous periods.

Stream, royalty and other interests classified as exploration and evaluation assets are assessed for impairment whenever indicators of impairment exist in accordance with IFRS 6. An impairment loss is recognized for the amount by which the asset's carrying value exceeds its recoverable amount.

**Greenstone Gold Interest**

The Company purchases certain amounts of gold by providing an initial deposit that is recorded as a Greenstone gold interest. The Greenstone gold interest meets the definition of a financial asset in accordance with financial instrument standards and is classified as FVTPL. The Greenstone gold interest is measured initially at fair value and then subsequently at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized as a component of net income. The difference between the fair value of the gold delivered and the ongoing payments for the gold delivered are recorded as a partial settlement of the Greenstone gold interest and recorded in cost of sales.

Financial Statements <br> F-9

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When gold is delivered to the Company under the Greenstone gold purchase agreement with Equinox ("GPA" - note 4), the Company initially records the gold as inventory; upon sale of the inventory, the amount in inventory is recognized in cost of sales.

The current portion of the Greenstone gold interest is determined at each reporting date based on the fair value of the estimated gold to be delivered in the following year.

**Revenue Recognition** 

Revenue is comprised of revenue earned from royalty interests and from the sale of gold under the GPA.

Revenue recognition on royalty interests occurs when control of the relevant commodity is transferred to the end customer by the operator of the royalty property. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the royalty agreement. In some instances, the Company will not have access to sufficient information to make a reasonable estimate of consideration to which it expects to be entitled and, accordingly, revenue recognition is deferred until management can make a reasonable estimate. Differences between estimates and actual amounts are adjusted and recorded in the period that the actual amounts are known.

Revenue recognition from the sale of gold occurs when control of the gold is transferred to a third-party customer. Revenue is measured as the fair value of the consideration received or receivable.

**Financial Instruments**

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

**Financial Assets**

**Classification**

The Company classifies its financial assets in the following measurement categories:

Those to be measured subsequently at fair value (either through Other Comprehensive Income ("OCI"), or through profit or loss), and

Those to be measured at amortized cost.

The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses are either recorded in profit or loss or OCI.

**Measurement**

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss ("FVTPL"), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. Financial assets are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Financial Statements <br> F-10

------

Subsequent measurement of financial assets depends on their classification. There are three measurement categories under which the Company classifies its financial instruments:

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included as finance income using the effective interest rate method.

Fair value through OCI ("FVTOCI"): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVTOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains and losses, interest revenue, and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss. Interest income from these financial assets is included as finance income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVTOCI are measured at FVTPL. A gain or loss on an investment that is subsequently measured at FVTPL is recognized in profit or loss in the period in which is arises. The GPA is held at FVTPL.

Investments in common shares are held for long-term strategic purposes and not for trading. The Company has made an irrevocable election to designate all these investments as fair value through other comprehensive income ("FVTOCI") in order to provide a more meaningful presentation based on management's intention, rather than reflecting changes in fair value in profit or loss. Such investments are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized as a component of other comprehensive income under the classification of gain (loss) on revaluation of investments. Cumulative gains and losses are not subsequently reclassified to profit or loss.

Transaction costs incurred on initial recognition of financial instruments classified as loans and receivables, FVTOCI and other financial liabilities are recognized at their fair value amount and offset against the related loans and receivables or capitalized when appropriate.

**Financial liabilities**

The Company classifies its financial liabilities into the following categories: financial liabilities at FVTPL and amortized cost.

A financial liability is classified as at FVTPL if it is classified as held-for-trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. The fair value changes to financial liabilities at FVTPL are presented as follows: the amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in OCI; and the remaining amount of the change in the fair value is presented in profit or loss. The Company records the derivative liability on the Beedie Convertible Loan at FVTPL.

Other non-derivative financial liabilities are initially measured at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method.

Financial Statements <br> F-11

------

**Foreign Currency Translation**

The Company has a functional currency and presentation currency of the United States dollar. Foreign currency transactions and balances are translated into the functional currency as follows: (i) monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the Statement of Financial Position date; (ii) non-monetary assets denominated in foreign currencies and measured at other than fair value are translated using the rates of exchange at the transaction dates; (iii) non-monetary assets denominated in foreign currencies that are measured at fair value are translated using the rates of exchange at the dates those fair values are determined; and (iv) income statement items denominated in foreign currencies are translated using average exchange rates for the period. Foreign exchange gains and losses are recognized in profit or loss and presented in the Statement of Income (Loss) and Comprehensive Income (Loss) in accordance with the nature of the transactions to which the foreign currency gains and losses relate.

Unrealized foreign exchange gains and losses on cash and cash equivalent balances denominated in foreign currencies are disclosed separately in the Statement of Cash Flows.

**Income Taxes**

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used are those that are substantively enacted by the end of the reporting date.

Deferred income tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting. The change in the net deferred income tax asset or liability is included in income except for deferred income tax relating to equity items which is recognized directly in equity. The income tax effects of differences in the periods when revenue and expenses are recognized, in accordance with Company's accounting practices, and the periods they are recognized for income tax purposes are reflected as deferred income tax assets or liabilities. Deferred income tax assets and liabilities are measured using the substantively enacted statutory income tax rates which are expected to apply to taxable income in the years in which the assets are realized or the liabilities settled. A valuation allowance is recorded against any deferred tax asset if it is not probable to be utilized against future taxable profit.

Deferred income tax assets and liabilities are offset only if a legally enforceable right exists to offset current tax assets against liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity and are intended to be settled on a net basis.

The determination of current and deferred taxes requires interpretations of tax legislation, estimates of expected timing of reversal of deferred tax assets and liabilities, and estimates of future earnings.

**Share-Based Payments**

The Company recognizes share based compensation expense for share purchase options, restricted share units ("RSUs"), performance restricted share units ("PRSUs") and common shares granted to directors, officers, employees and consultants under the Company's equity-based incentive plans.

Financial Statements <br> F-12

------

**Share purchase options**

The fair value of share purchase options is determined using the Black Scholes model, with market related inputs as of the grant date. The use of the Black-Scholes option pricing model requires management to make various estimates and assumptions that impact the value assigned to the stock options including the expected volatility of the stock price, the risk-free interest rate, dividend yield, the expected life of the stock options and the number of options expected to vest. Volatility is estimated using the historic stock price of similar listed entities, the expected term and the number of equity instruments expected to vest is estimated using management judgement. The fair value of share purchase options at the date of grant are expensed over the vesting periods with a corresponding increase to equity. Share purchase options with graded vesting schedules are accounted for as separate grants with different vesting periods and fair values.

**Restricted share units** 

The fair value of RSUs is determined by the market value of the underlying shares at the date of the grant. Under the Company's RSU Plan, the Board of Directors has the discretion to determine upon grant whether the RSUs are to be settled in cash or equity.

Where the Company does not have a present obligation to settle the issued RSUs in cash, the RSUs issued are treated as equity-settled instruments. The fair value of RSUs is determined using the fair value of the RSU at the date of grant and is adjusted based on the number of equity instruments expected to ultimately vest. The fair value of the RSUs at the date of grant are expensed over the vesting periods with a corresponding increase to equity. At the end of each reporting period, the Company re-assesses its estimates of the number of awards that are expected to vest and recognizes the impact of any revisions to this estimate in equity.

**Performance restricted share units**

The fair values of equity-settled PRSUs with market conditions are estimated using the Monte Carlo method to project the performance of the Company and, if applicable, the relevant market index against which the Company's performance is compared. The use of the Monte Carlo pricing model requires management to make various estimates and assumptions that impact the value assigned to the PRSUs including assumptions with respect to share price, expected life, share price volatility, correlation assumptions and discount rates. Share-based compensation expense related to PRSUs that vest based on market conditions is recognized over the vesting period based on the grant date fair value of the award.

**Related Party Transactions** 

Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction when there is a transfer of resources or obligations between related parties.

**Segment Reporting**

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. The Company's operating segments are components of the Company's business for which discrete financial information is available and which are reviewed regularly by the Company's Chief Executive Officer to make decisions about resources to be allocated to the segment and assess its performance.

Financial Statements <br> F-13

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Changes in Accounting Standards

**Adoption of new accounting standards in 2024**

The following amendments to existing standards have been adopted by the Company commencing January 1, 2024:

**Classification of liabilities as current or non-current**

In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendments are effective for annual periods beginning on or after January 1, 2024 and applied retrospectively. The Company has adopted the narrow scope amendments on January 1, 2024. These amendments have resulted in the Company recognizing the Beedie Convertible Loan as a current liability (note 10) and a portion of the Sandstorm Convertible Note as a current liability as at January 1, 2023 (note 10).

**New standards issued and not yet effective**

The International Accounting Standards Board has issued classification and measurement and disclosure amendments to IFRS 9 and IFRS 7 with an effective date for years beginning on or after January 1, 2026 with earlier application permitted. The amendments clarify the date of recognition and derecognition of some financial assets and liabilities and introduce a new exception for some financial liabilities settled through an electronic payment system. Other changes include a clarification of the requirements when assessing whether a financial asset meets the solely payments of principal and interest criteria and new disclosures for certain instruments with contractual terms that can change cash flows (including instruments where cash flows changes are linked to environment, social or governance targets). The Company intends to adopt these amendments for the year beginning January 1, 2026.

IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18) is a new standard that will provide new presentation and disclosure requirements and replace International Accounting Standard 1, Presentation of Financial Statements (IAS 1). IFRS 18 introduces changes to the structure of the income statement; provides required disclosures in financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements; and provides enhanced principles on aggregation and disaggregation in financial statements. Many other existing principles in IAS 1 have been maintained. IFRS 18 is effective for years beginning on or after January 1, 2027, with earlier application permitted. The Company intends to adopt these amendments for the year beginning January 1, 2027.

The Company has not yet commenced the evaluation of the impact of these new standards/amendments.

Financial Statements <br> F-14

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**3.** **Significant Accounting Estimates and Judgments**

The preparation of these financial statements in conformity with IFRS required management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Management believes the estimates and assumptions used in these financial statements are reasonable; however, actual results could differ from those estimates and could impact future results of operations and cash flows.

The Company's significant accounting estimates and judgements applied in these financial statements are as follows:

Accounting for Acquisition of Assets and Stream, Royalty and Other Interests

The Company's business is the acquisition of royalties and other interests. Each royalty and other interest has its own unique terms and judgement is required to assess the appropriate accounting treatment. The determination of whether an acquisition should be accounted for as royalty and other interest or a financial instrument requires the consideration of factors such as (i) the terms of the agreement; (ii) the applicability of the own use exemption under IFRS 9 Financial Instruments ("IFRS 9"); and (iii) whether there is a contractual commitment to repay amounts under the royalty and other interests. The assessment of whether an acquisition meets the definition of a business or whether assets are acquired is another area of key judgement. If deemed to be a business combination, applying the acquisition method to business combinations requires each identifiable asset and liability to be measured at its acquisition date fair value. The excess, if any, of the fair value of the consideration over the fair value of the net identifiable assets acquired is recognized as goodwill. The determination of the acquisition date fair values often requires management to make assumptions and estimates about future events. The assumptions and estimates with respect to determining the fair value of royalty and other interests generally require a high degree of judgement, and include estimates of mineral Reserves and Resources acquired, future production, metal prices, discount rates, conversion of Resources and exploration potential, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets and liabilities.

Fair Value of Greenstone Gold Interest

The fair value of the Greenstone gold interest was determined by calculating the present value of the future gold deliveries under the GPA. The determination of the fair value of the Greenstone gold interest at period end requires the use of estimates and assumptions for commodity prices, discount rates and the timing of gold receipts received by Versamet under the GPA with Equinox. Changes in any of the estimates and/or assumptions used in determining the fair value could impact the fair value of the Greenstone gold interest at period end and the associated change in fair value of the Greenstone gold interest recorded in the Statement of Loss and Comprehensive Loss during the period. Changes in each of the following key assumptions and estimates would have the following impact on the value of the GPA as at December 31, 2024 (with an associated movement in the Statement of Loss and Comprehensive Loss):

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Key assumption** | &nbsp;&nbsp;**Sensitivity applied to key<br>assumption** | &nbsp;&nbsp;**Impact on GPA asset value at <br>December 31, 2024** |
| &nbsp;&nbsp;Gold price | &nbsp;&nbsp;+/- 10% | &nbsp;&nbsp;+/- $6.2 million |
| &nbsp;&nbsp;Discount rate | &nbsp;&nbsp;+/- 1% | &nbsp;&nbsp;+ $2.9 million / - $3.2 million |

---

Financial Statements <br> F-15

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Fair Value of Beedie Convertible Loan Derivative Liability

On October 31, 2023, Versamet entered into a $16 million convertible loan with Beedie Capital (the "Beedie Convertible Loan"). The Beedie Convertible Loan contains multiple embedded derivatives which require bifurcation; as all of the embedded derivatives relate to the same risk exposures (foreign exchange on the conversion price and the value of the underlying common shares of the Borrower), they may be combined and accounted for as a single compound embedded derivative. The embedded derivative was fair valued utilizing a combination of the discounted cash flow and partial differential equation modeling approaches. In valuing this embedded derivative, certain estimates and assumptions were used including the Company's share price, volatility, a credit rating, risk-free rate and a credit spread. To the extent that any of these estimates and assumptions changed upon initial recognition, this would have impacted the initial value of the derivative liability and the portion of the Beedie Convertible Loan recorded as a convertible debt liability on the face of the Statement of Financial Position. Such a change in the allocation of value between the derivative liability and the convertible debt liability would also impact the accretion charges and fair value movements in the Statement of Loss and Comprehensive Loss during future periods. Subsequent valuation of the derivative liability each reporting period uses similar estimates and assumptions which could materially impact the value of the derivative liability as at December 31, 2024. Changes in the key assumptions and estimates of the valuation of the derivative liability would have the following impact on the valuation of the derivative liability as at December 31, 2024 (with an associated movement in the Statement of Loss and Comprehensive Loss:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Key assumption** | &nbsp;&nbsp;**Sensitivity applied to key <br>assumption** | &nbsp;&nbsp;**Impact on derivative liability <br>value at December 31, 2024** |
| &nbsp;&nbsp;Risk free rate | &nbsp;&nbsp;+ 1% | &nbsp;&nbsp; $305606 |
| &nbsp;&nbsp;Credit spread | &nbsp;&nbsp;+ 1% | &nbsp;&nbsp;$297746 |
| &nbsp;&nbsp;Volatility | &nbsp;&nbsp;10% increase | &nbsp;&nbsp;($133138) |
| &nbsp;&nbsp;Stock price | &nbsp;&nbsp;10% increase | &nbsp;&nbsp;$700680 |

---

Attributable Reserve and Resource Estimates

Royalty and other interests are a significant class of assets of the Company, with a carrying value of $165.4 million at December 31, 2024 (December 31, 2023 - $92.7 million). This amount represents the capitalized expenditures related to the acquisition of the royalty and other interests net of accumulated depletion and any impairments. Where possible, the Company estimates the Reserves and Resources relating to each interest. Reserves and Resources are estimates of the amount of minerals that can be economically and legally extracted from the mining properties at which the Company has royalty interests, adjusted where applicable to reflect the Company's percentage entitlement to minerals produced from such mines. The public disclosures of Reserves and Resources that are released by the operators of the interests involve assessments of geological and geophysical studies and economic data and the reliance on a number of assumptions, including commodity prices and production costs. The estimates of Reserves and Resources may change based on additional knowledge gained subsequent to the initial assessment. Changes in the estimates of Reserves or Resources, or the date of initial production from the mine may impact the carrying value of the Company's royalty and other interests and depletion charges. Stream, royalty and other interests related to producing mines are bifurcated into a depletable and non-depletable balance. The split between the depletable and non-depletable balances is based on a discounted cash flow analysis of the mine plan in question for that royalty or stream. Included in the depletable balance is 100% of Mineral Reserves and a portion of Resources. Included in the non-depletable balance are the remaining Resources (not included in the depletable balance) and any exploration potential, if applicable. If estimates of the value of the depletable and non-depletable balances of a mining property prove to be inaccurate, this could increase the amount of future depletion expense which would reduce the Company's net income and net assets. Changes to depletion rates are accounted for prospectively.

Financial Statements <br> F-16

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Impairment of Royalty and Other Interests

Assessment of impairment of royalty and other interests requires the use of judgments, assumptions and estimates when assessing whether there are any indicators that could give rise to the requirement to conduct a formal impairment test as well as in the assessment of their fair values. The assessment of the fair values of royalty and other interests requires the use of estimates and assumptions for Mineral Reserves and Resources, future production, commodity prices, discount rates, conversion of Resources and exploration potential, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may include estimates related to (i) dollar value per unit of mineral reserve/resource; (ii) net asset value multiples (iii) cash-flow multiples; (iv) comparable transactions and (v) market capitalization of comparable assets. Changes in any of the estimates used in determining the fair value of the royalty and other interests could impact the impairment analysis.

Functional Currency

The functional currency of the Company is the currency of the primary economic environment in which the entity operates. Determination of functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders functional currency if there is a change in events and conditions which determine the primary economic environment.

Income Taxes

The interpretation of new and existing tax laws or regulations in any of the countries in which our royalty and other interests are located or to which shipments of commodities are made or received requires the use of judgment. Differing interpretation or changes to these laws or regulations could result in an increase in the Company's taxes, or other governmental charges, duties or impositions. In addition, the recoverability of deferred income tax assets, including expected periods of reversal of temporary differences and expectations of future taxable income, are assessed by management at the end of each reporting period and adjusted, as necessary, on a prospective basis.

Share-based Compensation

**Stock options** 

The Company utilizes the Black-Scholes option pricing model to estimate the fair value of stock options granted to directors, officers, employees and consultants of the Company. The use of the Black-Scholes option pricing model requires management to make various estimates and assumptions that impact the value assigned to the stock options including the expected volatility of the stock price, the risk-free interest rate, dividend yield, the expected life of the stock options and the number of options expected to vest. The expected term of the options granted is determined based on historical data of the average hold period before exercise, cancellation or expiry. Volatility is estimated using the historic stock price of similar listed entities, the expected term and the number of equity instruments expected to vest is estimated using management judgement. Expected volatility is estimated with reference to the historical volatility of the share price of a peer group of companies as applicable given that the Company's shares have not been publicly listed. Any changes in these assumptions and estimates could change the amount of share-based compensation recognized in profit or loss and the share-based compensation reserve. Significant assumptions related to share-based payments are disclosed in Note 11.

Financial Statements <br> F-17

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**PRSUs**

The Company's uses a Monte Carlo pricing model to estimate the fair value of PRSUs granted to directors, officers, employees and consultants of the Company. The use of the Monte Carlo pricing model requires management to make various estimates and assumptions that impact the value assigned to the PRSUs including assumptions with respect to share price, expected life, share price volatility, correlation assumptions and discount rates. Changes in these assumptions and estimates could change the fair value of the amount of share-based compensation recognized in profit or loss and the share-based compensation reserve. Significant assumptions related to PRSUs are disclosed in Note 11.

**4.** **Greenstone Gold Interest**

Greenstone Gold Purchase Agreement

On October 31, 2023, Versamet paid $52.5 million to enter into a gold purchase agreement ("GPA") with Equinox in exchange for monthly deliveries of gold equal to the greater of (a) 350 gold ounces, and (b) gold ounces equal to 1.26% of the monthly gold production from the Greenstone project in Ontario, Canada, ("Greenstone") at a purchase price per ounce of gold equal to 20% of the then prevailing market price. Monthly gold delivery obligations commenced upon closing of the GPA and will continue until a total of 63,000 ounces of gold have been delivered to Versamet. While gold deliveries will be calculated based on Greenstone production, gold deliveries can be sourced from production from any of Equinox's operating mines. Under the GPA, Equinox retains the option to buy-down deliveries related to 75% of the original delivery obligation at the then current spot gold price, subject to a minimum gold price per ounce of $2,000.

Accounting for the Greenstone Gold Purchase Agreement

In accordance with the Company's accounting policy, the Greenstone gold interest was initially measured at fair value, being the purchase price paid by Versamet for the future stream of gold. Each subsequent period end, the Greenstone gold interest is fair valued using a discounted cash flow of the future expected gold deliveries under the GPA. Significant estimates included in this valuation include commodity prices, discount rates and the timing of deliveries expected to be received by Versamet under the GPA with Equinox. Changes in any of the estimates and/or assumptions used in determining the fair value could impact the fair value of the Greenstone gold interest at period end and the associated change in fair value of the Greenstone gold interest recorded in the Statement of Loss and Comprehensive Loss during the period.

In accordance with the Company's accounting policy the Greenstone gold interest was initially measured at fair value, being the purchase price paid by Versamet for the future stream of gold. During the year ended December 31, 2024, the Company received 4,200 oz of gold under the GPA, which was initially recognized in inventory. The Company sold the gold for gross proceeds of $10.0 million; upon the sale, the inventory was recognized in cost of sales. The difference between the $8.0 million fair value of the gold delivered and the $2.0 million payment to Equinox for the gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) was recorded as a partial settlement of the Greenstone gold interest and included in cost of sales for the year ended December 31, 2024 (note 14). During the year ended December 31, 2024 the Company recognized an increase in the fair value of the Greenstone gold interest of $14.3 million; the increase in fair value was driven primarily by an increase in gold consensus pricing between December 31, 2023 and December 31, 2024.

Financial Statements <br> F-18

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During the period between October 31, 2023 and December 31, 2023, the Company received 700 oz of gold under the GPA, which was initially recognized in inventory. The Company sold the gold for gross proceeds of $1.4 million; upon the sale, the inventory was recognized in cost of sales. The difference between the $1.4 million fair value of the gold delivered and the $0.3 million payment to Equinox for the gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) was recorded as a partial settlement of the Greenstone gold interest and included in cost of sales for the year ended December 31, 2023 (note 14). During the period from initial recognition on October 31, 2023 to December 31, 2023, the Company recognized a change in the fair value of the Greenstone gold interest of $4.8 million; the change in fair value was driven by an increase in gold consensus pricing and a decrease in the risk-free rate between October 31, 2023 and December 31, 2023.

Details of the changes in the carrying value of the Greenstone gold interest are as follows:

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| |
|:---|
| Opening balance |
| Gold deliveries (recognized in cost of sales) |
| Change in fair value |
| **Balance December 31, 2023** |
| Gold deliveries (recognized in cost of sales) |
| Change in fair value |
| **Balance December 31, 2024** |
| Less: Current portion, December 31, 2024) |
| **Non-current portion, December 31, 2024** |

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Financial Statements <br> F-19

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**5.** **Investments**

Details of the investments of the Company and the changes in their carrying values are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Sun Peak** <br>**Metals Corp.**<br>**$** | **Montage Gold** <br>**Corp.**<br>**$** | **Total**<br>**$** |
| **Balance - December 31, 2022** | **567176** | **984556** | **1551732** |
| Change in fair value recorded in OCI | 13407 | 56900 | 70307 |
| Change in unrealized foreign exchange (recorded in profit & loss) | 14074 | 26386 | 40460 |
| **Balance - December 31, 2023** | **594657** | **1067842** | **1662499** |
| Change in fair value recorded in OCI | 204257 | (10726) | 193531 |
| Change in unrealized foreign exchange (recorded in profit & loss) | (68933) | (25046) | (93979) |
| Sale of shares |  | (1032070) | (1032070) |
| **Balance - December 31, 2024** | **729981** | **-** | **729981** |

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Sun Peak Metals Corp.

The Company holds 3,750,000 common shares of Sun Peak Metals Corp. ("Sun Peak") and a 1% NSR royalty on the Sun Peak properties. In accordance with the Company's accounting policy this investment is held at fair value through Other Comprehensive Income ("FVTOCI").

Montage Gold Corp.

During the year ended December 31, 2024, the Company sold all of its 1,991,740 shares in Montage for gross proceeds of $1.0 million (C$1.4 million). In accordance with the Company's accounting policy this investment is held at FVTOCI and the cumulative gains and losses are not subsequently reclassified to profit and loss.

**6.** **Asset Acquisitions** 

Year ended December 31, 2024

On June 5, 2024, Versamet entered into a definitive purchase and sale agreement with B2Gold to acquire a portfolio of royalty assets from B2Gold. The Transaction closed in two tranches. The first tranche closed on June 5, 2024 (the "First Closing"), and concurrent with this closing, Versamet purchased 5 royalty assets, including the following assets listed below, in return for 122,049,971 Common Shares at an issue price of C$0.80 per Common Share (total value: $71.6 million):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) 2.7% NSR royalty (until 2.5 million oz of gold produced, 0.45% NSR on next 1.5 million oz) on the Kiaka project based in Burkina Faso.

ii) 2.7% NSR royalty (until royalty payments total US$22.5 million, and 0.45% thereafter until 1.5Moz of gold produced) on the Toega project based in Burkina Faso.

Financial Statements <br> F-20

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iii) 1.5% NSR royalty on the gold-copper Primavera project based in Nicaragua.

On August 13, 2024, Versamet completed the second and final closing (the "Second Closing") related to the acquisition of a royalty portfolio from B2Gold. The Second Closing included the acquisition of a 2.0% NSR royalty over the Mocoa copper-molybdenum project in Colombia owned by Libero Copper & Gold Corporation and a 2.0% NSR royalty on the primary claims plus a 1% NSR royalty on periphery claims over the Golden Sidewalk gold project in Ontario, Canada owned by Prosper Gold Corp in return for 17,469,844 Common Shares at an issue price of C$0.80 per Common Share (total value of $10.25 million).

Management has determined that the acquisition of royalty interests acquired from B2Gold are considered to be asset acquisitions as the royalties acquired did not meet the definition of a business under IFRS. The fair value of the consideration paid for the mining royalties acquired from B2Gold has been allocated based on their fair value at the time of acquisition. The fair value of the Common Shares issued as consideration was determined to be C$0.80 per Common Share. The fair value of the mining royalties purchased was determined based on the net present value of the discounted cash flows from each of the royalties. The estimated future cash flows are calculated using estimated production, sales prices and discount rates. Estimated future production is determined using current Reserves and the portion of Resources expected to be classified as Mineral Reserves. Estimated sales prices are determined by reference to a long-term consensus metal prices. The discounts rates used are those which are considered appropriate for the respective royalty, its risk profile and the relevant commodity.

Management has completed the process of determining fair values for the assets acquired.

Assets Acquired from B2Gold

The allocation of the consideration (for both the First and Second Closing) to the estimated fair value of assets is as follows:

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| | | |
|:---|:---|:---|
|  | **Note** | **$** |
| **Purchase Price** |  |  |
| Common Shares issued |  | 81859811 |
| Legal fees capitalized |  | 75975 |
| **Total purchase price consideration** |  | **81935786** |
| **Assets Acquired** |  |  |
| Royalties and other interests | 7 | 81935786 |
| **Total fair value of assets acquired** |  | **81935786** |

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Year ended December 31, 2023

On October 31, 2023, Versamet acquired two royalty assets from Sandstorm for total consideration of $25 million comprising $10 million in cash and $15 million in common shares of the Company (29,557,436 common shares of the Company issued at a price of C$0.70 per share) (notes 7 and 11). Of the total shares issued, 1,979,571 are held in escrow subject to certain milestones being met; in the event such milestones are not met these shares are returned to Versamet.

Financial Statements <br> F-21

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The royalties purchased by Versamet were on mines currently being developed, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i) A 0.21% GRR on the gold/silver Blackwater project based in British Columbia, Canada, and

ii) A 1% GRR on the El Pilar copper project based in Sonora, Mexico.

Management has determined that the acquisition of royalty interests from Sandstorm are considered to be asset acquisitions as the royalties acquired did not meet the definition of a business under IFRS. The fair value of the consideration paid for the mining royalties acquired from Sandstorm has been allocated based on their fair value at the time of acquisition. The fair value of the common shares issued as consideration was determined to be C$0.70 per share, the same value per share as the $21.5 million private placement completed on the same day (note 11). The fair value of the mining royalties purchased was determined based on the net present value of the discounted cash flows from each of the royalties. The estimated future cash flows are calculated using estimated production, sales prices and a discount rate. Estimated future production is determined using current Reserves and the portion of Resources expected to be classified as Mineral Reserves. Estimated sales prices are determined by reference to a long-term metal price forecast by research analysts and management's expectations. The discounts rates used are those which are considered appropriate to the mine in question, its risk profile and the type of commodity.

Management has completed the process of determining fair values for the assets acquired.

Assets Acquired from Sandstorm

The allocation of the consideration to the estimated fair value of assets is as follows:

---

| | | |
|:---|:---|:---|
|  | **Note** | **$** |
| **Purchase Price** |  |  |
| Cash |  | 10000000 |
| Common shares issued |  | 15000000 |
| Legal fees capitalized |  | 27515 |
| **Total purchase price consideration** |  | **25027515** |
| **Assets Acquired** |  |  |
| Royalties and other interests | 7 | 25027515 |
| **Total fair value of assets acquired** |  | **25027515** |

---

Financial Statements <br> F-22

------

**7.** **Royalty and Other Interests**

The carrying amount of the Company's royalty and other interests are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Asset, Location** | **Details%** | **Product** | **Cost** <br>**$** | **Impairment**<br>**$** | **Opening<br>Depletion**<br>**$** | **Depletion**<br>**$** | **Closing<br>Depletion**<br>**$** | **Carrying<br>Amount**<br>**$** |
|  |  |  |  |  | **Accumulated Depreciation** | **Accumulated Depreciation** | **Accumulated Depreciation** |  |
| **December 31, 2024** |  |  |  |  |  |  |  |  |
| Kiaka, Burkina Faso | 2.7%**\*\*** | Au | 58730390 |  |  |  |  | 58730390 |
| El Pilar, Mexico | 1%**\*** | Cu | 17489892 |  |  |  |  | 17489892 |
| Mercedes, Mexico | 2 | Au, Ag | 16822000 | 8350000 | 1397777 | 842729 | 2240506 | 6231494 |
| Vittangi, Sweden | 1 | Graphite | 15000000 |  |  |  |  | 15000000 |
| Hackett River, Nunavut | 2 | Ag, Cu, Zn, Pb, Au | 14716000 |  |  |  |  | 14716000 |
| Toega, Burkina Faso | 2.7%**\*\*\*** | Au | 11204338 |  |  |  |  | 11204338 |
| Mocoa, Colombia | 2.0% | Cu, Mo | 10000000 |  |  |  |  | 10000000 |
| Blackwater, Canada | 0.21 | Au | 7537623 |  |  |  |  | 7537623 |
| Prairie Creek, Canada | 1.2 | Ag, Zn, Pb | 7514000 |  |  |  |  | 7514000 |
| Mason, Nevada | 0.4 | Cu, Au, Mo, Ag | 4876000 |  |  |  |  | 4876000 |
| Converse, Nevada | 1 | Au, Ag | 4391000 |  |  |  |  | 4391000 |
| Pilar, Brazil | 1 | Au | 5609000 | 2046222 | 212778 |  | 212778 | 3350000 |
| Cuiú Cuiú, Brazil | 1.5 | Au | 2070000 |  |  |  |  | 2070000 |
| Primavera, Nicaragua | 1.5% | Au, Cu | 1391058 |  |  |  |  | 1391058 |
| Other | Various | Various | 904208 |  |  |  |  | 904208 |
| **Total** |  |  | **178255509** | **10396222** | **1610555** | **842729** | **2453284** | **165406003** |
| **December 31, 2023** |  |  |  |  |  |  |  |  |
| El Pilar, Mexico | 1%**\*** | Cu | 17489892 |  |  |  |  | 17489892 |
| Mercedes, Mexico | 2 | Au, Ag | 16822000 |  | 497240 | 900537 | 1397777 | 15424223 |
| Vittangi, Sweden | 1 | Graphite | 15000000 |  |  |  |  | 15000000 |
| Hackett River, Nunavut | 2 | Ag, Cu, Zn, Pb, Au | 14716000 |  |  |  |  | 14716000 |
| Blackwater, Canada | 0.21 | Au | 7537623 |  |  |  |  | 7537623 |
| Prairie Creek, Canada | 1.2 | Ag, Zn, Pb | 7514000 |  |  |  |  | 7514000 |
| Mason, Nevada | 0.4 | Cu, Au, Mo, Ag | 4876000 |  |  |  |  | 4876000 |
| Converse, Nevada | 1 | Au, Ag | 4391000 |  |  |  |  | 4391000 |
| Pilar, Brazil | 1 | Au | 5609000 | 2046222 | 212778 |  | 212778 | 3350000 |
| Cuiú Cuiú, Brazil | 1.5 | Au | 2070000 |  |  |  |  | 2070000 |
| Other | Various | Various | 294172 |  |  |  |  | 294172 |
| **Total** |  |  | **96319687** | **2046222** | **710018** | **900537** | **1610555** | **92662910** |

---

\* increasing to 2% / 3% if Measured & Indicated Resources inclusive of reserves > 3Blbs / 5Blbs copper equivalent.

\*\* 2.7% (100% basis) NSR royalty until 2.5 million oz of gold produced, 0.45% NSR royalty on next 1.5 million oz.

\*\*\* 2.7% NSR royalty (100% basis) until royalty payments total US$22.5 million, and 0.45% NSR royalty on next 1.5Moz Au.

Financial Statements <br> F-23

------

Impairment

Each individual royalty, stream or similar arrangement is individually considered to be a cash-generating unit for impairment testing purposes.

During the year ended December 31, 2024, the Mercedes Mine experienced operational challenges and then on January 29, 2025, Bear Creek Mining Corporation ("Bear Creek") announced an updated estimate of mineral reserves and mineral resources (R&R) for the Mercedes Mine. The updated estimate of R&R at the Mercedes Mine was lower than that previously used by management of the Company when valuing its royalty interest in the mine. As a result of these factors, the Company determined there to be an impairment indicator with respect to the carrying value of its Mercedes royalty interest as at December 31, 2024.

The Company determined the fair value of the Mercedes asset as at December 31, 2024 using a fair value less costs to sell model, being a discounted cash flow model of the expected production from the Mercedes mine and the associated royalty payments. Management of Versamet used the updated R&R as released by Bear Creek as a basis for the production expected from the remaining life of mine. Significant assumptions used in the discounted cash flow included the gold price (based on consensus gold prices) and an 8% discount rate. A $100 drop in the gold price used in the model would result in an increased impairment of ~ $250,000. A 1% increase in the discount rate would have increased the impairment expense by ~$140,000. Management determined that as at December 31, 2024 the recoverable amount of the Mercedes royalty interest was $6.2 million, resulting in an impairment charge of $8.4 million during the year ended December 31, 2024.

During the year ended December 31, 2023, due to operational challenges at the Pilar Mine, the Company determined there to be an impairment indicator with respect to the carrying value of its Pilar royalty interest. The Company determined the fair value of the Pilar asset using a fair value less costs to sell model, being a discounted cash flow model of the expected production from the Pilar mine and the associated royalty payments. Significant assumptions used in the discounted cash flow included the gold price (based on consensus gold prices) and an 11% discount rate. A $100 drop in the gold price used in the model would result in an increased impairment of ~ $170,000. A 1% increase in the discount rate would have increased the impairment expense by ~$200,000. Management determined that as at March 31, 2023 the recoverable amount of the Pilar royalty interest was $3.4 million, resulting in an impairment charge of $2.0 million during the first quarter of 2023. At December 31, 2024, management determined that there were no further impairment indicators or reversal of impairment indicators of the Pilar royalty interest.

**8.** **Note Receivable**

In conjunction with the purchase of assets from Equinox on June 28, 2022, the Company acquired a note receivable (the "Note"). The counterparty to the Note was Bayshore Minerals Incorporated, a fully owned subsidiary of Gold Mountain Mining Corp. Repayment of the Note was received in full on May 16, 2023.

**9.** **Revolving Credit Facility**

On October 31, 2023, the Company entered into a $30 million revolving credit facility ("RCF") with a $15 million accordion feature arranged by Bank of Montreal ("BMO"), as lead arranger, and National Bank of Canada ("NBC"). The maturity date of the RCF is December 31, 2026. The amounts drawn on the RCF are subject to interest at the Secured Overnight Financing Rate ("SOFR") plus 2.50% to 3.50% per annum, and the undrawn portion of the RCF is subject to a commitment fee of 0.5625%-0.7875% per annum, both of which are dependent on the Company's leverage ratio. Under the terms of the RCF, BMO has first ranking security over all present and future assets of the Company.

Financial Statements <br> F-24

------

The RCF was initially recognized by Versamet at fair value less transaction costs (legal fees associated with entering into the RCF as well as arrangement fees to BMO and NBC). The RCF is subsequently recorded at amortized cost and is accreted to the principal amount over the period to the maturity date using an effective interest rate of 11%. Interest expense including accretion of discount of $1,219,521 was recognized in the year ended December 31, 2024 (2023 - $404,453) in relation to the RCF, of which $58,479 was included in the RCF balance as at December 31, 2024 (2023 - $341,499).

---

| |
|:---|
| Initial drawdown October 31, 2023 |
| Less: transaction costs) |
| **Amount recognized upon initial recognition** |
| Accrued Interest |
| Interest paid) |
| Accretion of discount |
| Drawdown |
| Repayment) |
| **Balance, December 31, 2023** |
| Accrued Interest |
| Interest paid) |
| Accretion of discount |
| Repayment) |
| **Balance, December 31, 2024** |

---

The principal amount outstanding under the RCF at December 31, 2024 was $1.0 million (note 18).

Under the terms of the RCF, Versamet is subject to maintaining certain covenants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Versamet shall maintain a leverage ratio at less than or equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) 6.00:1.00 from and including October 31, 2023;

ii) 5.00:1.00 from and including March 31, 2025;

iii) 3.50:1.00 from and including March 31, 2026,

The Company was in compliance with this covenant as at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Versamet shall maintain an interest coverage ratio at greater than or equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) 1.50:1.00 from and including October 31, 2023;

ii) 2.00:1.00 from and including March 31, 2025;

iii) 3.00:1.00 from and including March 31, 2026,

The Company was in compliance with this covenant as at December 31, 2024.

Financial Statements <br> F-25

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Versamet shall at all times maintain liquidity (comprised of cash, cash equivalents and additional advances available under the RCF) in an amount greater than or equal to $5,000,000. The Company was in compliance with this covenant as at December 31, 2024.

The RCF is secured by a first priority security interest in all of the Company's (and any affiliated entities as defined by the Securities Act (British Columbia)) present and after acquired property.

**10.** **Convertible Debt**

A summary of the Company's convertible debt (including the convertible debt derivative liability) is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Beedie Convertible<br>Loan**<br>**$** | **Sandstorm<br>Convertible Note**<br>**$** | **Total**<br>**$** |
| Current portion as per Statement of Financial Position - December 31, 2024 | 15618218 |  | 15618218 |
| Non-current portion as per Statement of Financial Position - December 31, 2024 |  |  |  |
| **Total balance as per Statement of Financial Position - December 31, 2024** | **15618218** | **-** | **15618218** |
| **Principal outstanding - December 31, 2024** | **15680663** | **-** | **15680663** |

---

See note 16 for Contractual obligations under both the Beedie Convertible Loan and the Sandstorm Convertible Note.

Beedie Convertible Loan

On October 31, 2023 Versamet entered into a $16.0 million (the C$22.2 million) convertible loan with Beedie Investments Ltd ("Beedie Capital") (the "Beedie Convertible Loan"). The Beedie Convertible Loan is denominated in Canadian dollars, has a term of 5 years and matures on October 31, 2028. Interest on the Beedie Convertible Loan consists of an 8% base interest rate and a 1.5% paid-in-kind ("PIK") rate, with the PIK rate reducing to 1.0% upon the public listing of the Company. The Company has the option to pay 25-50% of the base interest rate in Common Shares, subject to certain conditions. Amounts outstanding under the Beedie Convertible Loan can be converted into Common Shares, at the option of Beedie Capital, at a price of C$0.84 per Common Share. The Company may prepay the Beedie Convertible Loan, subject to certain fees. Additionally, the Company has the right to force the conversion of up to 50% of the Beedie Convertible Loan should the 30-day volume-weighted average price of Versamet (once public) equal or exceed C$1.47 per Common Share.

It has been determined that the Beedie Convertible Loan has two components:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) A debt host contract (the "Liability" or the "Beedie Convertible Loan Liability"), recorded at fair value upon initial recognition and subsequently at amortized cost; and

ii) Multiple embedded derivatives, treated as a single compound embedded derivative, recorded at FVTPL (the "Derivative Liability" or the "Beedie Derivative Liability").

At initial recognition, the $16 million of proceeds from the Beedie Convertible Loan were allocated by management between the Liability ($12,319,083) and the Derivative Liability ($3,680,917). The fair values of the Liability and Derivative Liability were determined at initial recognition by management, utilizing a combination of the discounted cash flow and partial differential equation modeling approaches. Transaction costs directly attributable to the Beedie Convertible Loan were allocated between the Liability and the Derivative Liability contract on the same basis. Transaction costs of $573,472 were allocated to the Liability ($441,541) and the Derivative Liability ($131,931) in proportion to the allocation of the proceeds from the Beedie Convertible Loan between those components at initial recognition. The transaction costs of $131,931 allocated to the Derivative Liability were immediately expensed while the transaction costs allocated to the Liability were included in the determination of the effective interest rate used to amortize the Liability over its term.

Financial Statements <br> F-26

------

The Derivative Liability was revalued to fair value as at December 31, 2024 utilizing a model with certain estimates and assumptions, including the Company's share price, volatility, a credit rating, risk-free rate and a credit spread. The fair value of the derivative liability decreased by $399,893 during the year ended December 31, 2024. Of this decrease, $283,924 relates to a change in credit risk associated with the liability. To the extent that any of these estimates and assumptions changes, this would impact the value of the Derivative Liability on the face of the Statement of Financial Position and the associated change in fair value of the Derivative Liability in the Statement of Loss and Comprehensive Loss. The value of the Derivative Liability at December 31, 2024 was $3,284,715 (December 31, 2023 - $3,684,608).

As the Beedie Convertible Loan Liability is denominated in Canadian dollars, it is revalued to the Company's functional currency of U.S. dollars each period end, resulting in a gain or loss recorded in the Statement of Loss and Comprehensive Loss.

In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. As a result of the amendments to IAS 1 effective January 1, 2024 which are applied retrospectively, the Company has classified the Beedie Convertible Loan Liability and the Beedie Derivative Liability as current liabilities, due to the ability of Beedie Capital to convert all of the outstanding principal of the Beedie Convertible Loan (or a portion thereof) into Common Shares at any time. For the period of 12 months post December 31, 2024, and as long as an event of default (as defined under the terms of the Beedie Convertible Loan) has not occurred, the Company has no obligation to deliver cash to Beedie Capital other than interest payments as explained above.

Financial Statements <br> F-27

------

A summary of the restatements of the Beedie Convertible Loan Liability and the Beedie Derivative Liability is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As previously<br>reported**<br>**$** | **Adjustment**<br>**$** | **As restated**<br>**$** |
| **January 1, 2023** | **-** | **-** | **-** |
| **December 31, 2023** | **-** | **-** | **-** |
| Convertible Debt - current |  | 12567537 | 12567537 |
| Convertible debt derivative liability - current |  | 3684608 | 3684608 |
| Convertible debt - non-current | 12567537 | (12567537) |  |
| Convertible debt derivative liability - non-current | 3684608 | (3684608) |  |

---

A continuity of the Beedie Convertible Loan Liability and the Beedie Derivative Liability is as follows:

---

| |
|:---|
| Principal of the Beedie Convertible Loan |
| Less: Amount allocated to the Derivative Liability at initial recognition) |
| Less: transaction costs) |
| **Liability recognized upon initial recognition** |
| Accrued Interest |
| Interest paid) |
| Accrued PIK interest |
| Accretion of discount |
| Foreign exchange loss |
| **Balance, December 31, 2023** |
| Accrued Interest |
| Interest paid) |
| Accrued PIK interest |
| Accretion of discount |
| Foreign exchange gain) |
| **Balance, December 31, 2024** |
| Amount allocated to Derivative Liability at initial recognition |
| Change in FVTPL |
| **Balance, December 31, 2023** |
| Change in FVTPL) |
| **Balance, December 31, 2024** |

---

Interest expense of $2,111,175 was recognized for the year ended December 31, 2024 in relation to the Beedie Convertible Loan, of which $563,784 was accretion added to the principal balance, $488,022 was paid in shares (316,544 Common Shares at a price of C$0.70 per Common Share and 565,303 Common Shares at a price of C$0.80 per Common Share (considered to be the fair value of the shares upon issuance)), $813,205 was paid in cash, $246,164 of PIK was added to the principal balance.

Interest expense of $355,488 was recognized for the year ended December 31, 2023 in relation to the Beedie Convertible Loan, of which $87,974 was accretion added to the principal balance, $115,537 was paid in shares (218,580 common shares of the Company at a deemed value of C$0.70 per share), $115,537 was paid in cash, and $36,439 of PIK was added to the principal balance.

Financial Statements <br> F-28

------

Under the terms of the convertible loan with Beedie Capital, Versamet is subject to maintaining certain covenants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Versamet shall maintain a leverage ratio at less than or equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) 6.00:1.00 from and including October 31, 2023;

ii) 5.00:1.00 from and including March 31, 2025;

iii) 3.50:1.00 from and including March 31, 2026,

The Company was in compliance with this covenant as at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Versamet shall at all times maintain liquidity (comprised of cash, cash equivalents and additional advances available under the revolving credit facility described above) in an amount greater than or equal to $5,000,000. The Company was in compliance with this covenant as at December 31, 2024.

The Beedie Convertible Loan is secured by a second priority security interest in all of the Company's (and any affiliated entities as defined by the Securities Act (British Columbia)) present and after acquired property.

Sandstorm Convertible Note

A continuity of the Sandstorm Convertible Note is as follows:

---

| |
|:---|
| **Balance, December 31, 2022** |
| Accretion of discount |
| Partial conversion to shares) |
| **Balance, December 31, 2023** |
| Accretion of discount |
| Full conversion to shares) |
| **Balance, December 31, 2024** |

---

In conjunction with a purchase of assets from Sandstorm on June 28, 2022, the Company issued the Sandstorm Convertible Note with a face value of $31.4 million. The Sandstorm Convertible Note was interest-free and had a maturity date of June 28, 2032. The Sandstorm Convertible Note was secured by a third priority security interest in all of the Company's (and any affiliated entities as defined by the Securities Act (British Columbia)) present and after acquired property.

At initial recognition on June 28, 2022, the fair value of debt component of the Sandstorm Convertible Note was determined to be $14.6 million. The debt component of the Sandstorm Convertible Note is recorded at amortized cost and is accreted to the principal amount over the ten-year term using an effective interest rate. The effective interest rate was 8% upon initial recognition.

During 2023, Versamet satisfied a total of $17.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 33.8 million Common Shares to Sandstorm at a price of C$0.70 per common share. On June 5, 2024, Versamet exercised its right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note, in whole or in part, at any time, provided no event of default has occurred, by delivering fully paid and non-assessable Common Shares to Sandstorm. Versamet satisfied the remaining principal balance of $14.2 million by issuing 24,179,193 Common Shares to Sandstorm at a price of C$0.80 per Common Share (considered to be the fair value of the Common Shares upon issuance). The remaining principal amount (face value) outstanding under the Sandstorm Convertible Note as at December 31, 2024 is $nil.

Financial Statements <br> F-29

------

In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. As a result of the amendments to IAS 1 effective the Company reclassified part of the Sandstorm Convertible Note as a current liability as at January 1, 2023. Under the terms of the Sandstorm Convertible Note, Sandstorm or Versamet can convert, in whole or in part, the Sandstorm Convertible Note into Common Shares at any time, however, Sandstorm can only hold a 34% interest in Versamet. The amount reclassified to current represents the amount which could have been converted by Sandstorm to allow for a 34% interest by Sandstorm in Versamet as at January 1, 2023. At December 31, 2023, Sandstorm owned 34% of the Company and had no ability to convert any of the Sandstorm Convertible Note and as such classified the Sandstorm Convertible Note as non-current.

A summary of the restatements of the Sandstorm Convertible Note is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As previously<br>reported**<br>**$** | **Adjustment**<br>**$** | **As restated**<br>**$** |
| **January 1, 2023** |  |  |  |
| Convertible debt - current |  | 8830134 | 8830134 |
| Convertible debt - non-current | 15142868 | (8830134) | 6312734 |
| **December 31, 2023** |  |  |  |
| Convertible debt - current |  |  |  |
| Convertible debt - non-current | 7380872 |  | 7380872 |

---

**11.** **Share Capital and Reserves**

Authorized:

The Company is authorized to issue an unlimited number of common shares without par value.

Issued and Outstanding:

**2024:**

On December 31, 2024, Versamet settled $157,500 of interest owing to Beedie for the quarter ended December 31, 2024 in shares by issuing 283,185 Common Shares at a price of C$0.80 per Common Share (considered to be the fair value of the Common Shares upon issuance).

Financial Statements <br> F-30

------

On September 30, 2024, Versamet settled $166,872 of interest owing to Beedie for the quarter ended September 30, 2024 in shares by issuing 282,118 Common Shares at a price of C$0.80 per Common Share (considered to be the fair value of the Common Shares upon issuance).

On August 13, 2024, the Company issued 17,469,844 Common Shares at C$0.80 per Common Share to B2Gold as consideration in connection with the Transaction. Further, on August 13, 2024, B2Gold subscribed for 12,872,812 Common Shares at C$0.80 per Common Share for total gross cash proceeds of $7.5 million.

On June 5, 2024, the Company issued 122,049,971 Common Shares at C$0.80 per Common Share to B2Gold as consideration in connection with the Transaction. In addition, on June 5, 2024, Versamet exercised its right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note, in whole or in part, at any time, provided no event of default has occurred, by delivering fully paid and non-assessable Common Shares to Sandstorm. Versamet satisfied a total of $14.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 24,179,193 Common Shares to Sandstorm at a price of C$0.80 per Common Share (considered to be the fair value of the Common Shares upon issuance) (note 10).

On March 28, 2024, Versamet settled $163,650 of interest owing to Beedie for the quarter ended March 31, 2024 in shares by issuing 316,544 Common Shares at a price of C$0.70 per Common Share (considered to be the fair value of the Common Shares upon issuance).

**2023:**

Concurrent with the transactions which closed on October 31, 2023, Regal Funds Management Pty Limited as trustee for the Regal Resources Royalties Fund ("Regal") subscribed for 34,642,500 shares of Versamet at a price of C$0.70 per share (considered to be the fair value of the Common Shares upon issuance) for total proceeds to the Company of $17.5 million. Further, on the same date, Beedie Capital subscribed for 7,918,285 Common Shares at a price of C$0.70 per Common Share (considered to be the fair value of the Common Shares upon issuance) for total proceeds of $4 million.

During the fourth quarter of 2023, Versamet acquired two royalty assets from Sandstorm for total consideration of $25 million comprising $10 million in cash and $15 million in Common Shares (29,557,436 Common Shares of the Company issued at a price of C$0.70 per share, considered to be the fair value of the Common Shares upon issuance) (note 6). Of the total shares issued, 1,979,571 are held in escrow subject to certain milestones being met; in the event such milestones are not met these Common Shares are returned to Versamet.

On three occasions during the year ended December 31, 2023, Versamet exercised its right under the Sandstorm Convertible Note to satisfy the principal amount outstanding under the Sandstorm Convertible Note, in whole or in part, at any time, provided no event of default has occurred, by delivering fully paid and non-assessable Common Shares of Versamet to Sandstorm. Versamet satisfied a total of $17.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 33,837,247 Common Shares of Versamet to Sandstorm at a price of C$0.70 per Common Share (note 10).

In December 2023, the Company closed a financing issuing 11,507,141 Common Shares at C$0.70 per Common Share for proceeds of $6.0 million. No costs were incurred in connection with this share issuance.

Financial Statements <br> F-31

------

Interest expense of $267,513 was recognized for the period from October 31, 2023 to December 31, 2023 in relation to the Beedie Convertible Loan, of which $115,537 was paid in shares (218,580 Common Shares at a price of C$0.70 per share (considered to be the fair value of the Common Shares upon issuance)).

Earnings per share

The weighted average number of shares which could be issued pursuant to stock options, RSUs and PRSUs which are excluded from the computation of diluted earnings (loss) per share because their effect is not dilutive in the year ended December 31, 2024, is 6,031,197 (2023 - 2,000,000).

The weighted average number of shares which could be issued pursuant to the Beedie Convertible Loan, which are excluded from the computation of diluted earnings (loss) per share because their effect is not dilutive in the year ended December 31, 2024, is 26,601,141.

The weighted average number of shares which could be issued pursuant to the Beedie Convertible Loan and the Sandstorm Convertible Note, which are excluded from the computation of diluted earnings (loss) per share because their effect is not dilutive in the year ended December 31, 2023, is 56,062,075.

Share-based compensation

The total share-based compensation expense recorded by the Company in the year ended December 31, 2024 was $2,564,125 (2023 - $1,624,390) and is included in the share-based compensation reserve. Of this total, $225,076 relates to RSUs issued in respect of services performed by employees in 2024 and which was issued post year-end (note 18) and as such; this amount is included in Accounts payable and accrued liabilities.

---

| | | |
|:---|:---|:---|
| **Share-based Compensation** | **2024**<br>**$** | **2023**<br>**$** |
| Stock options | 697685 | 1013781 |
| Restricted Share Units | 1699805 | 444430 |
| Performance Restricted Share Units | 166635 | 166179 |
| **Total Share-based compensation expense** | **2564125** | **1624390** |

---

**Stock options**

The Company has an omnibus equity incentive plan (the "Equity Plan") which allows the Company to grant stock options to eligible employees, officers, directors and consultants at an exercise price, expiry date, and vesting conditions to be determined by the Board of Directors. The maximum expiry term is ten years from the grant date. All options are equity settled. The Equity Plan provides for the issuance of up to 10% of the Company's issued Common Shares as at the date of the grant.

On January 15, 2024, the Company granted 2,093,930 stock options to employees. The stock options have an exercise price of C$0.70, vest equally on the first, second and third anniversary of the grant date and have a term of five years from the date of grant.

On each of February 27, 2023, March 20, 2023 and April 3, 2023, the Company issued 750,000 stock options to employees of the Company. The options have an exercise price of C$0.70 per share and expire five years from the date of grant. One-third of the option grant vest 12 months from the date of the grant, one third vest 24 months from the date of the grant and the remaining one third vest 36 months from the date of grant.

Financial Statements <br> F-32

------

A continuity schedule for stock options is as follows:

---

| | |
|:---|:---|
| **Stock Options** | **Number** |
| **Outstanding December 31, 2022** | **7,280,000** |
| Granted | 2250000 |
| **Outstanding December 31, 2023** | **9,530,000** |
| Granted | 2093930 |
| **Outstanding December 31, 2024** | **11,623,930** |

---

Management used the Black-Scholes Model to value the stock options granted.

The following assumptions were used to estimate the grant date <br>fair value of the stock options:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Feb. 27, 2023** | &nbsp;&nbsp;**Mar. 20, 2023** | &nbsp;&nbsp;**Apr. 3, 2023** | &nbsp;&nbsp;**Jan. 15, 2024** |
| Expected dividend yield | &nbsp;&nbsp;0.00% | &nbsp;&nbsp;0.00% | &nbsp;&nbsp;0.00% | &nbsp;&nbsp;0.00% |
| Expected stock price volatility | &nbsp;&nbsp;40.00% | &nbsp;&nbsp;40.00% | &nbsp;&nbsp;40.00% | &nbsp;&nbsp;40.00% |
| Risk-free interest rate | &nbsp;&nbsp;3.55% | &nbsp;&nbsp;2.90% | &nbsp;&nbsp;2.92% | &nbsp;&nbsp;3.28% |
| Expected life of the options | &nbsp;&nbsp;5 years | &nbsp;&nbsp;5 years | &nbsp;&nbsp;5 years | &nbsp;&nbsp;5 years |
| Grant date fair value per option | &nbsp;&nbsp;$0.21 | &nbsp;&nbsp;$0.20 | &nbsp;&nbsp;$0.20 | &nbsp;&nbsp;$0.21 |
| Forfeiture rate | &nbsp;&nbsp;5% | &nbsp;&nbsp;5% | &nbsp;&nbsp;5% | &nbsp;&nbsp;5% |
| **Total fair value of options granted** | &nbsp;&nbsp;**$148326** | &nbsp;&nbsp;**$143439** | &nbsp;&nbsp;**$146004** | &nbsp;&nbsp;**$413859** |

---

The total share-based payment related to stock options recognized by the Company during the year ended December 31, 2024 was $697,685 (2023 - $1,013,781).

Post year-end a total of 1,222,857 options were forfeited (note 18).

As at December 31, 2024, the Company had the following options outstanding:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Number outstanding** | **Exercisable** | **Exercise Price per Share** | **Expiry Date** | **Weighted average life<br>remaining** |
| 6280000 | 4186667 | C$0.70 | September 1, 2027 | 2.67 years |
| 1000000 | 666666 | C$0.70 | November 7, 2027 | 2.85 years |
| 750000 | 250000 | C$0.70 | February 27, 2028 | 3.16 years |
| 750000 | 250000 | C$0.70 | March 20, 2028 | 3.22 years |
| 750000 | 250000 | C$0.70 | April 3, 2028 | 3.26 years |
| 2093930 | Nil | C$0.70 | January 15, 2029 | 4.05 years |

---

**Restricted Share Units**

The Company has a Restricted Share Unit ("RSU") incentive plan whereby the Company may grant RSUs to eligible employees, officers, directors and consultants with an expiry date and vesting conditions to be determined by the Board of Directors.

Financial Statements <br> F-33

------

On January 15, 2024, the Company granted 1,638,560 RSUs to employees of the Company which vested on February 15, 2024. In addition, on January 15, 2024, the Company granted 1,655,575 RSUs to employees of the Company which vest in three equal parts on January 15, 2025, 2026 and 2027.

A continuity schedule for restricted share units is as follows:

---

| | |
|:---|:---|
| **Restricted Share Units** | **Number** |
| Outstanding December 31, 2022 & 2023 | 2000000 |
| Granted | 3294135 |
| **Outstanding December 31, 2024** | **5,294,135** |

---

The following assumptions were used to estimate the grant date fair value of the RSUs:

---

| | | |
|:---|:---|:---|
|  | **January 15, 2024**<br>**Immediate vesting** | **January 15, 2024**<br>**Gradual vesting** |
| Grant date fair value per RSU | $0.52 | $0.52 |
| **Total fair value of RSUs granted\*** | $**853671** | $**819409** |

---

\*Assumes a 5% forfeiture rate for RSUs which did not vest during the quarter ended March 31, 2024.

The grant date fair value of the RSUs is determined using the market value of the underlying Common Shares at the date of the grant and is adjusted based on the number of RSUs expected to ultimately vest. The total share-based payment expense recognized by the Company related to RSUs during the year ended December 31, 2024 was $1,699,805 (2023 - $444,430).

The holders of the RSUs have the right to defer receipt of the Common Shares underlying the RSUs upon vesting. All RSUs are currently deferred.

Post year-end a total of 724,375 RSUs were forfeited (note 18).

**Performance Restricted Share Units**

The Company has a Performance Restricted Share Unit ("PRSU") incentive plan whereby the Company may grant PRSUs to eligible employees, officers, directors and consultants with an expiry date and vesting conditions to be determined by the Board of Directors. As at December 31, 2024 and 2023, the Company had 2,000,000 PRSUs outstanding.

The total share-based payment expense recognized by the Company related to PRSUs during the year ended December 31, 2024 was $166,635 (2023 - $166,179).

Post year-end all 2,000,000 PRSUs were forfeited (note 18).

Financial Statements <br> F-34

------

**12.** **Taxation**

Reconciliation of Effective Tax Rate

The income tax amounts disclosed below are based on the tax positions of the Company for the periods presented. The Company is subject to Canadian federal and provincial tax for the estimated assessable profit for the years ended December 31, 2024 and 2023 at a rate of 27%. The Company had no assessable profit in Canada for all periods disclosed.

The tax expense at statutory rates for the Company can be reconciled to the reported loss for the years per the Statement of Loss and Comprehensive Loss as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2024**<br>**$** | **Year ended**<br>**December 31, 2023**<br>**$** |
| Net loss before income taxes | (873433) | (2504924) |
| Statutory income tax rate | 27% | 27% |
| **Expected income tax recovery at the statutory rate** | **(235827)** | **(676329)** |
| Withholding taxes on royalty revenue | 509132 | 434788 |
| Non deductible expenses | 1451862 | 799365 |
| Change in unrecognized tax assets | (151450) | 61400 |
| **Total income tax expense** | **1573717** | **619224** |

---

The breakdown of the income tax expense during the following years is as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2024**<br>**$** | **Year ended**<br>**December 31, 2023**<br>**$** |
| Current income tax expense | 509132 | 434788 |
| Deferred income tax expense | 1064585 | 184436 |
| **Total income tax expense** | **1573717** | **619224** |

---

The current tax expense was incurred as a withholding tax payable on the royalty earned from the Mercedes Mine. In January 2023, the Company filed an election with the Canada Revenue Agency to have a US dollar functional currency for tax purposes. The Company's corporate tax returns for the year ended December 31, 2023, and thereafter, will be filed in US dollars.

Financial Statements <br> F-35

------

Deferred Income Taxes

As at December 31, 2024 and 2023, the significant components of the Company's recognized deferred tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2024**<br>**$** | **Year ended**<br>**December 31, 2023**<br>**$** |
| Royalty and other interests | (1290717) | (1282846) |
| Resource pools and other | (5101567) | (1161262) |
| Debt | (171727) | (264537) |
| Share issuance costs | 209560 | 280475 |
| Interest and finance deductions | 726218 |  |
| Non-capital losses | 4166268 | 2030790 |
| **Total recognized net deferred tax liabilities** | **(1461965)** | **(397380)** |

---

As at December 31, 2024 and 2023, the significant components of the Company's unrecognized deferred tax assets are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2024**<br>**$** | **Year ended**<br>**December 31, 2023**<br>**$** |
| Resource pools and other | 6945 | 177546 |
| Investments | 50855 | 173969 |
| Capital losses | 256860 | 114595 |
| Non-capital losses | 37806 | 37806 |
| **Total unrecognized deferred income tax assets** | **352466** | **503916** |

---

In assessing the recoverability of deferred tax assets other than deferred tax assets resulting from the initial recognition of assets and liabilities that do not affect accounting or taxable profit, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

Tax attributes are subject to revision and potential adjustment by tax authorities.

Financial Statements <br> F-36

------

The non-capital loss tax attributes as at December 31, 2024:

The Company has non-capital loss tax attributes of $10,797,956 which expire 2029 - 2044 as follows:

---

| | |
|:---|:---|
| **Years of Expiry** | **Losses**<br>**$** |
| 2029 - 2038 | 135754 |
| 2039 - 2043 | 8060670 |
| 2044 | 7374224 |
| **Total** | **15570648** |

---

**13.** **Related Party Transactions**

Related parties are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, either directly or indirectly. Related parties of the Company include the members of the Board of Directors, officers of the Company, close family members of these individuals, and any companies controlled by these individuals.

**Sandstorm**

Effective June 28, 2022, Sandstorm is considered to be a related party of the Company as a result of Versamet being an associate of this entity (as a result Sandstorm's share ownership in the Company) and the ability of Sandstorm to nominate a representative to the board of directors of the Company.

The Company acquired two royalty assets from Sandstorm during the year ended December 31, 2023. The Company had the Sandstorm Convertible Note outstanding with Sandstorm which was fully converted during the year ended December 31, 2024; as such the balance remaining on the Sandstorm Convertible Note as at December 31, 2024 is $nil (note 10).

**Equinox**

Effective June 28, 2022, Equinox was considered to be a related party of the Company as a result of its share ownership in Versamet. Effective June 5, 2024, and concurrent with the share issuance to B2Gold (note 6), Equinox's share ownership percentage was reduced, and it was determined that it no longer had significant influence over the Company and accordingly effective June 5, 2024 is no longer considered to be a related party of Versamet.

The Company entered into the Greenstone gold interest with Equinox during the year ended December 31, 2023 (note 4).

**B2Gold**

As a result of the Transaction (note 6), effective June 5, 2024, B2Gold is considered to be related party of the Company as a result of Versamet being an associate of this entity (as a result of their share ownership in the Company) and the ability of B2Gold to nominate a representative to the board of directors of the Company.

Financial Statements <br> F-37

------

Compensation of Key Management Personnel:

Key management personnel include persons having the authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. Versamet considers its Board of Directors, as well as the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") to be key management personnel. See note 18.

During the years ended December 31, 2024 and 2023, the Company's compensation cost for key management personnel was as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2024**<br>**$** | **Year ended**<br>**December 31, 2023**<br>**$** |
| Salaries and benefits | 850264 | 433274 |
| Share-based compensation | 1134088 | 1065025 |
| **Total** | **1984352** | **1498299** |

---

Financial Statements <br> F-38

------

**14.** **Segmented Information**

The Company's reportable operating segments, which are components of the Company's business where separate financial information is available and which are evaluated on a regular basis by the Company's CEO, who is the Company's chief operating decision maker, for the purpose of assessing performance, are summarized in the tables below. The Company's operating segments are considered to be its individual royalties, streams and the Greenstone gold interest and the segment measure of profit or loss is Income (loss) before taxes.

For the year ended December 31, 2024:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Segment, Location** | **Details%** | **Product** | **Revenue<sup>3</sup>**<br>**$** | **Cost of sales <sup>2</sup>**<br>**$** | **Depletion**<br>**$** | **Change in<br>fair value of<br>Greenstone<br>gold interest**<br>**$** | **Impairment**<br>**$** | **Income<br>(loss)<br>before<br>taxes**<br>**$** | **Cash flow<br>from<br>operating<br>activities**<br>**$** |
| Greenstone, Canada | 1.26 | Au | 9988125 | (9989438) |  | 14059716 |  | 14058403 | 7990237 |
| Kiaka, Burkina Faso | 2.7% | Au |  |  |  |  |  |  |  |
| Toega, Burkina Faso | 2.7% | Au |  |  |  |  |  |  |  |
| Mocoa, Colombia | 2.0% | Cu, Mo |  |  |  |  |  |  |  |
| El Pilar, Mexico | 1 | Cu |  |  |  |  |  |  |  |
| Mercedes, Mexico | 2 | Au, Ag | 2036523 |  | (842729) |  | (8350000) | (7156206) | 2036523 |
| Vittangi, Sweden | 1 | Graphite |  |  |  |  |  |  |  |
| Hackett River, Nunavut | 2 | Zn, Ag, Cu, Pb, Au |  |  |  |  |  |  |  |
| Blackwater, Canada | 0.21 | Au, Ag |  |  |  |  |  |  |  |
| Prairie Creek, Canada | 1.2 | Zn, Pb, Ag |  |  |  |  |  |  |  |
| Pilar, Brazil | 1 | Au |  |  |  |  |  |  |  |
| Mason, Nevada | 0.4 | Cu, Au, Mo, Ag |  |  |  |  |  |  |  |
| Converse, Nevada | 1 | Au, Ag |  |  |  |  |  |  |  |
| Cuiú Cuiú, Brazil | 1.5 | Au |  |  |  |  |  |  |  |
| Other | Various | Various |  |  |  |  |  |  |  |
| **Total segments** |  |  | **12024648** | **(9989438)** | **(842729)** | **14059716** | **(8350000)** | **6902197** | **10026760** |
| Operating expenses <sup>**1**</sup> |  |  |  |  |  |  |  | (5524560) | (2960435) |
| Foreign exchange (loss) income |  |  |  |  |  |  |  | 779957 | (16582) |
| Finance and interest expense net of interest income |  |  |  |  |  |  |  | (3430920) |  |
| Change in fair value of derivative liability |  |  |  |  |  |  |  | 399893 |  |
| Income tax paid |  |  |  |  |  |  |  |  | (509132) |
| Movement in working capital |  |  |  |  |  |  |  |  | 856851 |
| **Total Corporate** |  |  | **-** | **-** | **-** | **-** | **-** | **(7775630)** | **(2629298)** |
| **Segments & Corporate total** |  |  | **12024648** | **(9989438)** | **(842729)** | **14059716** | **(8350000)** | **(873433)** | **7397462** |

---

1. Includes all operating expenses from the Statement of Loss and Comprehensive Loss with the exception of impairment charges and the change in value of the Greenstone gold interest (and excludes share-based compensation and impairment charges from cash flow from operating activities).

Financial Statements <br> F-39

------

2. Cost of sales include cost of sales for the Greenstone gold interest consisting of a $2.0 million cash payment to Equinox for gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) and a $8.0 million non-cash partial settlement of the Greenstone gold interest due to the gold delivered in the period.

3. Revenue from the Mercedes royalty is considered to be from one customer. The gold received from the Greenstone GPA was sold to one customer.

For the Year Ended December 31, 2023:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Segment, Location** | <br>**Details%** | <br>**Product** | <br>**Revenue<sup>3</sup>**<br>**$** | <br>**Cost of sales <sup>2</sup>** <br>**$** | <br>**Depletion**<br>**$** | **Change in fair<br>value of<br>Greenstone gold<br>interest**<br>**$** | <br>**Impairment**<br>**$** | <br>**Income<br>(loss)<br>before<br>taxes**<br>**$** | **Cash flow<br>from<br>operating<br>activities**<br>**$** |
| Greenstone, Canada | 1.26 | Au | 1400525 | (1396675) |  | 4834977 |  | 4838827 | 1121190 |
| El Pilar, Mexico | 1 | Cu |  |  |  |  |  |  |  |
| Mercedes, Mexico | 2 | Au, Ag | 1739152 |  | (900537) |  |  | 838615 | 1739152 |
| Vittangi, Sweden | 1 | Graphite |  |  |  |  |  |  |  |
| Hackett River, Nunavut | 2 | Zn, Ag, Cu, Pb, Au |  |  |  |  |  |  |  |
| Blackwater, Canada | 0.21 | Au, Ag |  |  |  |  |  |  |  |
| Prairie Creek, Canada | 1.2 | Zn, Pb, Ag |  |  |  |  |  |  |  |
| Pilar, Brazil | 1 | Au |  |  |  |  | (2447779) | (2447779) |  |
| Mason, Nevada | 0.4 | Cu, Au, Mo, Ag |  |  |  |  |  |  |  |
| Converse, Nevada | 1 | Au, Ag |  |  |  |  |  |  |  |
| Cuiu Cuiu, Brazil | 1.5 | Au |  |  |  |  |  |  |  |
| Other | Various | Various |  |  |  |  |  |  |  |
| **Total segments** |  |  | **3139677** | **(1396675)** | **(900537)** | **4834977** | **(2447779)** | **3229663** | **2860342** |
| Operating expenses <sup>**1**</sup> |  |  |  |  |  |  |  | (3446315) | (1821924) |
| Foreign exchange (loss) income |  |  |  |  |  |  |  | (386475) | (4232) |
| Finance and interest expense net of interest income |  |  |  |  |  |  |  | (1898106) |  |
| Change in fair value of derivative liability |  |  |  |  |  |  |  | (3691) |  |
| Income tax paid |  |  |  |  |  |  |  |  | (434788) |
| Movement in working capital |  |  |  |  |  |  |  |  | 21875 |
| **Total Corporate** |  |  | **-** | **-** | **-** | **-** | **-** | **(5734587)** | **(2239069)** |
| **Segments & Corporate total** |  |  | **3139677** | **(1396675)** | **(900537)** | **4834977** | **(2447779)** | **(2504924)** | **621273** |

---

Financial Statements <br> F-40

------

1. Includes all operating expenses from the Statement of Loss and Comprehensive Loss with the exception of impairment charges and the change in value of the Greenstone gold interest (and excludes share-based compensation and impairment charges from cash flow from operating activities).

2. Cost of sales include cost of sales for the Greenstone gold interest consisting of a $0.3 million cash payment to Equinox for gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) and a $1.1 million non-cash partial settlement of the Greenstone gold interest due to the gold delivered in the period.

3. Revenue from the Mercedes royalty is considered to be from one customer. The gold received from the Greenstone GPA was sold to one customer.

Total Non-Current Assets by Segment

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2024**<br>**$** | **Dec. 31, 2023**<br>**$** |
| **Investments** |  |  |
| Sun Peaks Metals Corp | 729981 | 594657 |
| Montage Gold Corp. |  | 1067842 |
| **Total Investments** | **729981** | **1662499** |
| **Royalty & Other Assets** |  |  |
| Greenstone gold interest | 54658056 | 50585948 |
| Kiaka, Burkina Faso | 58730390 |  |
| El Pilar, Mexico | 17489892 | 17489892 |
| Mercedes, Mexico | 6231494 | 15424223 |
| Vittangi, Sweden | 15000000 | 15000000 |
| Hackett River, Nunavut | 14716000 | 14716000 |
| Toega, Burkina Faso | 11204338 |  |
| Mocoa, Colombia | 10000000 |  |
| Blackwater, Canada | 7537623 | 7537623 |
| Prairie Creek, Canada | 7514000 | 7514000 |
| Mason, Nevada | 4876000 | 4876000 |
| Converse, Nevada | 4391000 | 4391000 |
| Pilar, Brazil | 3350000 | 3350000 |
| Cuiú Cuiú, Brazil | 2070000 | 2070000 |
| Primavera, Nicaragua | 1391058 |  |
| Other | 904208 | 294172 |
| **Total Royalty & other assets** | **220064059** | **143248858** |
| **Total** | **220794040** | **144911357** |

---

Financial Statements <br> F-41

------

Total Non-Current Assets by Geographic Region

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2024**<br>**$** | **Dec. 31, 2023**<br>**$** |
| North America | 117414065 | 122534686 |
| Africa | 70664709 | 1662499 |
| Central and South America | 16811058 | 5420000 |
| Europe | 15000000 | 15000000 |
| Other | 904208 | 294172 |
| **Total** | **220794040** | **144911357** |

---

For the year-ended December 31, 2024 and 2023, the Company's sources of revenue were the GPA and the Mercedes royalty asset; both of which represent > 10% of the Company's total revenue.

**15.** **Supplemental Cash Flow Information**

During the year ended December 31, 2024, Versamet issued 139,519,815 Common Shares, to B2Gold to acquire a portfolio of royalty assets (notes 6 and 11).

During the year ended December 31, 2024, Versamet satisfied a total of $14.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 24,179,193 Common Shares to Sandstorm at a price of C$0.80 per Common Share (notes 10 and 11).

During the year ended December 31, 2024, the Company issued 881,847 Common Shares, respectively, to Beedie Capital (at a price of C$0.80 per share or C$0.70 per share; considered to be the fair value of the Common Shares upon issuance) as settlement for $488,022, in interest payments on the Beedie Convertible Loan (notes 10 and 11).

During the year ended December 31, 2023, the Company issued 218,580 common shares to Beedie Capital at a deemed value of C$0.70 per share as settlement for $115,537 in interest payments on the Beedie Convertible Loan (notes 10 and 11).

During the year ended December 31, 2023, Versamet satisfied a total of $17.2 million of the principal amount outstanding under the Sandstorm Convertible Note by issuing 33,837,247 million common shares of Versamet to Sandstorm at a price of C$0.70 per common share (notes 10 and 11).

**16.** **Financial Instruments**

As at December 31, 2024, the Company's financial instruments consist of cash and cash equivalents, trade and other receivables, investments, the Greenstone gold interest, accounts payable, the Beedie Convertible Loan Liability, the Beedie Derivative Liability and the RCF. The Company classifies cash and cash equivalents and trade and other receivables as financial assets held at amortized cost; the Company holds its investments at FVTOCI. The Company classifies accounts payable, the RCF and the Beedie Convertible Loan Liability as other financial liabilities and they are held at amortized cost. The Greenstone gold interest and the Beedie Derivative Liability are both carried at FVTPL.

Financial Statements <br> F-42

------

The fair value hierarchy establishes three levels to classify the inputs of valuation techniques used to measure fair value. The three levels of the fair value hierarchy are below:

**Level 1** - fair values based on unadjusted quoted prices in active markets for identical assets or liabilities;

**Level 2** - fair values based on inputs that are observable for the asset or liability, either directly or indirectly; and

**Level 3** - fair values based on inputs for the asset or liability that are not based on observable market data.

The Company presents its investments at fair value (note 5) and has classified these as Level 1 in the fair value hierarchy. The Greenstone gold interest, the Beedie Convertible Loan Liability, the RCF and the Beedie Derivative Liability are considered to be Level 3. The fair value of all of the Company's other financial instruments approximate their carrying values as at December 31, 2024 and December 31, 2023 due to their short-term nature.

The Company's policy for determining when a transfer occurs between levels in the fair value hierarchy is to assess the impact at the date of the event or the change in circumstances that could result in a transfer. There were no transfers between the levels during the years ended December 31, 2024 and December 31, 2023.

The risk exposure arising from these financial instruments is summarized as follows:

Credit risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is limited to the carrying value of its cash and cash equivalents and trade and other receivables. The Company's trade and other receivables are subject to the credit risk of the counterparties who own and operate the mines underlying Versamet's royalty and other assets portfolio. In order to mitigate its exposure to credit risk, the Company monitors its financial assets and holds its cash with a highly rated Canadian financial institution.

Management continues to believe that due to operational challenges at the Pilar Mine (note 7) that there remains a significant credit risk with respect to amounts owing to the Company under its Pilar royalty interest. The Company recorded an impairment of accounts receivable of $0.4 million related to its Pilar royalty interest as at March 31, 2023, which represented the amounts outstanding as at December 31, 2022. The Company has not recognized any revenue or an associated receivable related to the Pilar royalty payable during the years ended December 31, 2023 or 2024 in respect of the Pilar royalty interest.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's approach to managing liquidity risk is to have in place a planning and budgeting process to ensure that it will have sufficient liquidity to meet liabilities when due in the normal course of operations. In assessing liquidity risk, the Company takes into account its cash and expected income from royalties and the Greenstone gold interest. In addition, Versamet also holds common shares in Sun Peak (note 5) with a fair market value of $0.7 million at December 31, 2024 (the daily exchange traded volume of these common shares may be insufficient for the Company to liquidate its position in a short period of time without affecting the market value of the common shares).

The Company's ability to continue to meet its liabilities when due, beyond the current cash balance, may be dependent on public or private equity offerings.

Financial Statements <br> F-43

------

The following table shows Company's contractual obligations as they fall due as at December 31, 2024 and December 31, 2023:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Within 1 year**<br>**$** | **1-5 years**<br>**$** | **Over 5 years**<br>**$** | **Total**<br>**Dec. 31, 2024**<br>**$** | **Total**<br>**Dec. 31, 2023**<br>**$** |
| Accounts payable and accrued liabilities | 1232088 |  |  | 1232088 | 226024 |
| Sandstorm Convertible Note <sup>**1**</sup> |  |  |  |  | 14186546 |
| Beedie Convertible Loan <sup>**2**</sup> | 1261527 | 20522659 |  | 21784186 | 25047324 |
| BMO RCF <sup>**2**</sup> | 76474 | 1076474 |  | 1152948 | 25416602 |
| **Total** | **2570089** | **21599133** | **-** | **24169222** | **64876496** |

---

1. The Sandstorm Convertible Note was fully converted to shares on June 5, 2024 (note 10).

2. The Beedie Convertible Loan and the BMO RCF estimated interest amounts are included in the table above. In accordance with the Beedie Convertible Loan, a proportion of the interest expense included in the table above can be paid in Common Shares. The Company presents the Beedie Convertible Loan as a current liability due to the ability of Beedie Capital to convert all of the outstanding principal into Common Shares at any time, however, the table above shows contractual cash flow obligations.

Market risk

Market risk is the risk that changes in market prices, such as commodity price risk, foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings or financial instruments.

Commodity price risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices. Commodity prices can be subject to volatile price movements, which can be material and can occur over short periods of time and are affected by numerous factors, all of which are beyond the Company's control.

Financial instruments that impact net income (loss) and comprehensive income (loss) of the Company due to currency fluctuations include cash and cash equivalents, investments, the Beedie Convertible Loan, and trade and other payables denominated in Canadian dollars. Based on the Company's Canadian dollar monetary assets and monetary liabilities as at December 31, 2024, a 10% increase or decrease in the Canadian dollar relative to the United States dollar would have an approximate impact of $1.3 million on net income (loss) and total comprehensive income (loss) as at December 31, 2024.

The Company is exposed to other price risk as a result of its investment in Sun Peak. The Company does not actively trade this investment. The equity prices of long-term investments are impacted by a variety of factors including commodity prices and volatility in global markets. Based on the Company's investment in Sun Peak held at December 31, 2024, a 10% increase or decrease in the value of this investments would increase or decrease other comprehensive income (loss) by approximately $66,000 and would have no impact on profit or loss for the year ended December 31, 2024.

The Company is exposed to commodity price movements as a result of the GPA (note 4). The Company holds the GPA at FVTPL. The fair value is calculated using a series of inputs into a discounted cash flow including the gold price. A 10% increase or decrease in the gold price used in the valuation as at December 31, 2024 would increase or decrease net loss and total comprehensive loss by $6.2 million.

Financial Statements <br> F-44

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**17.** **Capital Management**

The Company manages its capital structure and adjusts it, based on the funds available to the Company, in order to support its' activities, continue as a going concern and maximize its return to stakeholders. The Company considers capital to be all accounts in equity and all borrowings of the Company (the Beedie Convertible Loan and the RCF). The Company is subject to certain covenants under the RCF and Beedie Convertible Loan (notes 9 & 10); at December 31, 2024 the Company was in compliance with all covenants. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of management to maintain an appropriate liquidity profile to allow management to execute on its strategic plan. Additional funds may be required to finance the Company's operations in the future.

**18.** **Subsequent Events**

On January 15, 2025, the Company granted 3,974,081 stock options to employees. The stock options have an exercise price of C$0.80, vest equally on the first, second and third anniversary of the grant date and have a term of five years from the date of grant.

On January 15, 2025, the Company granted 1,290,625 RSUs to employees of the Company which vest in three equal parts on January 15, 2026, 2027 and 2028.

On January 15, 2025, the Company granted 404,688 RSUs to employees of the Company which vest immediately upon grant. These RSUs were issued as compensation relating to services performed in 2024 (note 11).

All RSUs issued have been deferred in accordance with the Company's Equity Plan for a period of at least 12 months.

On February 10, 2025, the Company repaid the remaining $1.0 million outstanding on the RCF, leaving $nil drawn down on this facility (note 9).

On February 28, 2025, the CEO of the Company (a member of key management personnel) resigned.

Financial Statements <br> F-45

------

![](formdrsaxu010.jpg)

**Unaudited Condensed** <br>**Interim Financial Statements**

<br>For the three and six months ended June 30, 2025 and 2024

------

---

| | |
|:---|:---|
| **Condensed Interim Statements of Financial Position** | (Expressed in United States dollars) |
| Unaudited |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **June 30, 2025**<br>**$** | **December 31, 2024**<br>**$** |
| ASSET |  |  |  |
| **Current** |  |  |  |
| Cash and cash equivalents |  | 1071846 | 1430897 |
| Trade and other receivables |  | 1087107 | 369066 |
| Prepaid and other assets |  | 85350 | 26795 |
| Greenstone gold interest | 4 | 8358990 | 7627747 |
|  |  | **10603293** | **9454505** |
| **Non-current** |  |  |  |
| Investments |  | 496033 | 729981 |
| Deferred financing costs | 7 | 711605 |  |
| Greenstone gold interest | 4 | 58422188 | 54658056 |
| Royalty, stream and other interests | 5, 6 | 199596847 | 165406003 |
| **Total assets** |  | **269829966** | **230248545** |
| LIABILITIES |  |  |  |
| **Current** |  |  |  |
| Trade and other payables | 14 | 151094 | 1232088 |
| Convertible debt | 8 |  | 12333503 |
| Convertible debt derivative liability | 8 |  | 3284715 |
|  |  | **151094** | **16850306** |
| **Non-current** |  |  |  |
| Revolving credit facility | 7 | 53000000 | 608442 |
| Deferred income tax liabilities | 10 | 2646945 | 1461965 |
| **Total liabilities** |  | **55798039** | **18920713** |
| SHAREHOLDERS' EQUITY |  |  |  |
| Share capital | 9 | 217334892 | 215758347 |
| Share-based compensation reserve | 9 | 4210345 | 4764630 |
| Deficit |  | (6011946) | (7966644) |
| Accumulated other comprehensive loss |  | (1501364) | (1228501) |
| **Total shareholders' equity** |  | **214031927** | **211327832** |
| **Total liabilities and shareholders' equity** |  | **269829966** | **230248545** |

---

Nature of operations (note 1)

---

| | |
|:---|:---|
| **Approved by the Board of Directors on August 27, 2025** | **Approved by the Board of Directors on August 27, 2025** |
| "Marcel de Groot" | "Elizabeth McGregor" |

---

THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-47

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---

| | |
|:---|:---|
| **Condensed Interim Statements of Income and Comprehensive (Loss) Income** | (Expressed in United States dollars) |
| Unaudited |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Note** | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Sales | 4, 12 | 3915372 | 2463125 | 6910497 | 4628925 |
| Royalty revenue | 12 | 910265 | 437536 | 1368663 | 968751 |
| **Total revenue** |  | **4825637** | **2900661** | **8279160** | **5597676** |
| Cost of Sales | 4, 12 | (3490318) | (2460325) | (6485041) | (4630868) |
| Depletion | 6, 12 | (660990) | (187457) | (899146) | (446179) |
| **Gross profit** |  | **674329** | **252879** | **894973** | **520629** |
| OPERATING EXPENSES |  |  |  |  |  |
| Business development expenses |  | (68066) | (6341) | (87253) | (22810) |
| Change in fair value of Greenstone gold interest | 4, 12 | 5432758 | 3951048 | 9643973 | 6336383 |
| General and administrative expenses |  | (152385) | (108917) | (234567) | (182723) |
| Professional fees |  | (196451) | (115928) | (316525) | (219056) |
| Salaries and benefits |  | (320716) | (288793) | (1419404) | (600867) |
| Share-based compensation | 9 | (603847) | (394152) | (642557) | (1642506) |
| **Operating income** |  | **4765622** | **3289796** | **7838640** | **4189050** |
| OTHER INCOME AND EXPENSE |  |  |  |  |  |
| Change in fair value of convertible debt derivative liability | 8, 12 | 3172800 | (677455) | 3284715 | (292261) |
| Finance and interest expense | 7, 8, 12 | (6592138) | (995341) | (7220082) | (2107693) |
| Foreign exchange (loss) gain |  | (527157) | 112548 | (536058) | 221825 |
| Interest income |  | 12871 | 14754 | 24314 | 95082 |
| **Net income before income taxes** |  | **831998** | **1744302** | **3391529** | **2106003** |
| Income tax expense | 10, 12 | (661511) | (620932) | (1436831) | (1156127) |
| **Net income** |  | **170487** | **1123370** | **1954698** | **949876** |
| NET INCOME (LOSS) PER SHARE |  |  |  |  |  |
| Basic income per share | 9 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted income per share | 9 | 0.00 | 0.00 | 0.00 | 0.00 |
| Weighted average number of common shares outstanding |  |  |  |  |  |
| Basic |  | 465702586 | 326255140 | 464780309 | 305530489 |
| Diluted |  | 474268713 | 340705550 | 473079798 | 319910629 |
| OTHER COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD |  |  |  |  |  |
| Items that will not subsequently be reclassified to net income |  |  |  |  |  |
| (Loss) income on investments |  | (325120) | (342278) | (272863) | 368256 |
| **Total comprehensive (loss) income for the period** |  | **(154633)** | **781092** | **1681835** | **1318132** |

---

THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-48

------

---

| | |
|:---|:---|
| **Condensed Interim Statements of Changes in Equity** | (Expressed in United States dollars) |
| Unaudited |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Share capital <br>(Number of <br>shares)** | **Share capital**<br>**$** | **Share-based <br>compensation <br>reserve**<br>**$** | **Deficit**<br>**$** | **Accumulated <br>other <br>comprehensive <br>income (loss)**<br>**$** | **Total**<br>**$** |
| **Balance - December 31, 2023** |  | **286454950** | **118286517** | **2425581** | **(5519494)** | **(1422032)** | **113770572** |
| Shares issued upon conversion of Sandstorm Convertible Note |  | 24179193 | 7629314 |  |  |  | 7629314 |
| Shares issued pursuant to asset acquisitions | 6 | 122049971 | 71609811 |  |  |  | 71609811 |
| Shares issued as interest payment | 8 | 316544 | 163650 |  |  |  | 163650 |
| Share-based compensation | 9 |  |  | 1642506 |  |  | 1642506 |
| Total comprehensive income |  |  |  |  | 949876 | 368256 | 1318132 |
| **Balance - June 30, 2024** |  | **433000658** | **197689292** | **4068087** | **(4569618)** | **(1053776)** | **196133985** |
| Shares issued pursuant to asset acquisitions | 6 | 17469844 | 10250000 |  |  |  | 10250000 |
| Shares issued as interest payment | 8 | 565303 | 324372 |  |  |  | 324372 |
| Shares issued for private placement |  | 12782812 | 7494683 |  |  |  | 7494683 |
| Share-based compensation | 9 |  |  | 696543 |  |  | 696543 |
| Total comprehensive loss |  |  |  |  | (3397026) | (174725) | (3571751) |
| **Balance - December 31, 2024** |  | **463818617** | **215758347** | **4764630** | **(7966644)** | **(1228501)** | **211327832** |
| Shares issued as interest payment | 8 | 278076 | 154626 |  |  |  | 154626 |
| Exercise of RSUs | 9 | 2740000 | 1421919 | (1421919) |  |  |  |
| Share-based compensation | 9 |  |  | 867634 |  |  | 867634 |
| Total comprehensive income (loss) |  |  |  |  | 1954698 | (272863) | 1681835 |
| **Balance - June 30, 2025** |  | **466836693** | **217334892** | **4210345** | **(6011946)** | **(1501364)** | **214031927** |

---

THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-49

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---

| | |
|:---|:---|
| **Condensed Interim Statements of Cash Flows** | (Expressed in United States dollars) |
| Unaudited |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Cash flows provided by (used in)** | **Note** | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| OPERATING ACTIVITIES |  |  |  |  |  |
| Net income for the period |  | 170487 | 1123370 | 1954698 | 949876 |
| Items not affecting cash: |  |  |  |  |  |
| Non-cash cost of sales related to prepaid gold interest | 4 | 2752820 | 1968260 | 5148598 | 3704694 |
| Depletion | 6, 12 | 660990 | 187457 | 899146 | 446179 |
| Share-based compensation | 9 | 603847 | 394152 | 642557 | 1642506 |
| Change in fair value of prepaid gold interest | 4, 12 | (5432758) | (3951048) | (9643973) | (6336383) |
| Change in fair value of convertible debt derivative liability | 8, 12 | (3172800) | 677455 | (3284715) | 292261 |
| Unrealized foreign exchange gain (loss) |  | 4072 | (112620) | 3908 | (226183) |
| Foreign exchange on convertible debt repaid | 8 | 518089 |  | 518089 |  |
| Finance and interest expense (net of interest income) | 7, 8, 12 | 6579267 | 980587 | 7195768 | 2012611 |
| Income tax expense | 10 | 661511 | 620932 | 1436831 | 1156127 |
| Income taxes paid | 10 | (137252) | (109384) | (251851) | (242188) |
| Changes in non-cash working capital | 13 | (898385) | 69448 | (1657550) | 15289 |
|  |  | **2309888** | **1848609** | **2961506** | **3414789** |
| INVESTING ACTIVITIES |  |  |  |  |  |
| Acquisition of Kolpa stream interest | 5 | (35089990) | (75975) | (35089990) | (75975) |
| Sale of investment |  |  |  |  | 1032070 |
|  |  | **(35089990)** | **(75975)** | **(35089990)** | **956095** |
| FINANCING ACTIVITIES |  |  |  |  |  |
| Proceeds from revolving credit facility |  | 55000000 |  | 55000000 |  |
| Repayment of revolving credit facility | 7 | (2000000) | (1000000) | (3000000) | (8500000) |
| Repayment of convertible debt | 8 | (16390265) |  | (16390265) |  |
| Financing costs and interest paid | 7, 8 | (3588233) | (729536) | (3798114) | (1371508) |
|  |  | **33021502** | **(1729536)** | **31811621** | **(9871508)** |
| Impact of foreign exchange on cash |  | (38731) | (5742) | (42188) | (127398) |
| **Increase (decrease) in cash for the period** |  | **202669** | **37356** | **(359051)** | **(5628022)** |
| Cash - beginning of period |  | 869177 | 1054839 | 1430897 | 6720217 |
| **Cash - end of period** |  | **1071846** | **1092195** | **1071846** | **1092195** |

---

Supplemental cash flow information (note 13)

THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-50

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**Notes to the Condensed Interim** <br>**Financial Statements**

For the three and six months ended June 30, 2025 and 2024

Expressed in United States dollars unless otherwise stated

1. Nature of Operations

Versamet Royalties Corporation ("Versamet" or "the Company") was incorporated under the British Columbia Business Corporations Act on January 24, 2011. Versamet is the parent entity with no subsidiaries. The Company's common shares began trading on the TSX Venture Exchange ("TSXV") on May 20, 2025, under the symbol "VMET".

Versamet is a diversified metals royalty and streaming company with exposure to a range of resource royalties and streams including gold, silver, copper, zinc, graphite and uranium, across a variety of jurisdictions. Typically, in return for making an upfront payment to acquire a royalty or stream on a mining operation or project, Versamet receives a portion of the revenue generated from the mine on an ongoing basis, usually over the life of the mine or receives metal deliveries over a pre-determined period or up to a pre-determined quantity.

The head office, principal address and registered office of Versamet is located at Suite 3200, 733 Seymour St, Vancouver, British Columbia, V6B 0S6.

These financial statements were approved and authorized for issue by the Board of Directors of the Company on August 27, 2025.

2. Basis of Presentation and Material Accounting Policy Information

**Statement of Compliance**

These condensed interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting", using accounting policies consistent with IFRS Accounting Standards ("IFRS Accounting Standards" or "IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee, and should be read in conjunction with the Company's audited annual financial statements for the year ended December 31, 2024.

The accounting policies followed in these condensed interim financial statements are the same as those applied in the Company's most recent audited annual financial statements for the year ended December 31, 2024.

**Basis of Presentation**

These condensed interim financial statements have been prepared on a historical cost basis except for certain financial instruments, which are measured at fair value. These condensed interim financial statements are presented in United States dollars, unless otherwise noted.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-51

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**Changes in Accounting Standards**

NEW STANDARDS ISSUED AND NOT YET EFFECTIVE

The International Accounting Standards Board has issued classification and measurement and disclosure amendments to IFRS 9 and IFRS 7 with an effective date for years beginning on or after January 1, 2026 with earlier application permitted. The amendments clarify the date of recognition and derecognition of some financial assets and liabilities and introduce a new exception for some financial liabilities settled through an electronic payment system. Other changes include a clarification of the requirements when assessing whether a financial asset meets the solely payments of principal and interest criteria and new disclosures for certain instruments with contractual terms that can change cash flows (including instruments where cash flows changes are linked to environment, social or governance targets). The Company intends to adopt these amendments for the year beginning January 1, 2026.

IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18) is a new standard that will provide new presentation and disclosure requirements and replace International Accounting Standard 1, Presentation of Financial Statements (IAS 1). IFRS 18 introduces changes to the structure of the income statement; provides required disclosures in financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements; and provides enhanced principles on aggregation and disaggregation in financial statements. Many other existing principles in IAS 1 have been maintained. IFRS 18 is effective for years beginning on or after January 1, 2027, with earlier application permitted. The Company intends to adopt these amendments for the year beginning January 1, 2027.

The Company has not yet commenced the evaluation of the impact of these new standards/amendments.

3. Significant Accounting Estimates and Judgments

The preparation of these condensed interim financial statements in conformity with IFRS required management to make estimates and assumptions that affect amounts reported in the condensed interim financial statements and accompanying notes. Management believes the estimates and assumptions used in these condensed interim financial statements are reasonable; however, actual results could differ from those estimates and could impact future results of operations and cash flows.

Significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty are the same as those that applied to the annual financial statements as at and for the year ended December 31, 2024 (which are available as part of the Company's final long form prospectus dated May 12, 2025, available on SEDAR+ at <u>www.sedarplus.ca</u>).

4. Prepaid Gold Interest

**Greenstone Gold Purchase Agreement** 

On October 31, 2023, Versamet paid $52.5 million to enter into a gold purchase agreement ("GPA") with Equinox Gold Corp. ("Equinox") in exchange for monthly deliveries of gold equal to the greater of (a) 350 gold ounces, and (b) gold ounces equal to 1.26% of the monthly gold production from the Greenstone project in Ontario, Canada, ("Greenstone") at a purchase price per ounce of gold equal to 20% of the then prevailing market price. Monthly gold delivery obligations commenced upon closing of the GPA and will continue until a total of 63,000 ounces of gold have been delivered to Versamet. While gold deliveries will be calculated based on Greenstone production, gold deliveries can be sourced from production from any of Equinox's operating mines. Under the GPA, Equinox retains the option to buy-down deliveries related to 75% of the original delivery obligation at the then current spot gold price, subject to a minimum gold price per ounce of $2,000.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-52

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**Details of the changes in the carrying value of the Greenstone gold interest are as follows:**

---

| |
|:---|
| **Balance - December 31, 2023** |
| Gold deliveries (recognized in cost of sales) |
| Change in fair value |
| **Balance - December 31, 2024** |
| Gold deliveries (recognized in cost of sales) |
| Change in fair value |
| **Balance - June 30, 2025** |
| Less: Current portion, June 30, 2025) |
| **Non-current portion, June 30, 2025** |

---

During the three and six months ended June 30, 2025, the Company received 1,050 oz and 2,100 oz of gold, respectively, under the GPA, which was initially recognized in inventory. The Company sold the gold for gross proceeds of $3.4 million and $6.4 million in the three and six months ended June 30, 2025, respectively; upon the sale, the inventory was recognized in cost of sales. The difference between the fair value of the gold delivered and the payment to Equinox for the gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) was recorded as a partial settlement of the Greenstone gold interest and included in cost of sales; accordingly, the amount recorded in cost of sales was $2.8 million and $5.1 million for the three and six months ended June 30, 2025, respectively. During the six months ended June 30, 2025, the Company recognized a change in the fair value of the Greenstone gold interest of $9.6 million primarily driven by an increase in consensus gold prices.

Changes in each of the following key assumptions and estimates would have the following impact on the value of the GPA as at June 30, 2025 (with an associated movement in the Statement of Income and Comprehensive (Loss) Income):

---

| | | |
|:---|:---|:---|
| **Key assumption** | **Sensitivity applied to key assumption** | **Impact on GPA asset value at June 30, 2025** |
| Gold price | -/+ 10% | +/- $6.7 million |
| Discount rate | -/+ 1% | + $3.4 million / - $3.2 million |

---

5. Stream Acquisition

**Kolpa Copper Stream**

In April 2025, the Company entered into an agreement to acquire the right to purchase refined copper equal to the greater of 95.8% of the copper produced and 0.03 pounds of copper per pound of produced lead from Endeavour Silver Corp.'s operating Huachocolpa Uno mine in Peru ("Kolpa") until 6,000 tonnes of refined copper have been delivered, after which Versamet will be entitled to purchase 71.85% of the produced copper. Once 10,500 tonnes of refined copper have been delivered, Versamet will have the right to purchase 47.9% of the life of mine copper produced (the "Copper Stream"). Versamet will make ongoing cash payments equal to 10% of the spot price of copper for each tonne of refined copper delivered. As consideration for the Copper Stream, Versamet made an upfront cash payment of $35.0 million. In addition, $0.1 million of costs associated with the acquisition of the Copper Stream were added to the carrying value of the asset held within Royalty, Stream and Other interests.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-53

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6. Royalty, Stream and Other Interests

**The carrying amount of the Company's royalty, stream and other interests are as follows:**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Asset, Location** | **Details%** | **Product** | **Cost** <br>**$** | **Impairment**<br>**$** | **Opening <br>Depletion**<br>**$** | **Depletion**<br>**$** | **Closing <br>Depletion**<br>**$** | **Carrying <br>Amount**<br>**$** |
|  |  |  |  |  | ACCUMULATED DEPRECIATION | ACCUMULATED DEPRECIATION | ACCUMULATED DEPRECIATION |  |
| **June 30, 2025** |  |  |  |  |  |  |  |  |
| Kiaka, Burkina Faso | 2.7<sup>1</sup> | Au | 58730390 |  |  |  |  | 58730390 |
| Kolpa, Peru | 95.8<sup>2</sup> | Cu | 35089990 |  |  | 297238 | 297238 | 34792752 |
| El Pilar, Mexico | 1.0<sup>3</sup> | Cu | 17489892 |  |  |  |  | 17489892 |
| Mercedes, Mexico | 2 | Au, Ag | 16822000 | 8350000 | 2240506 | 485741 | 2726247 | 5745753 |
| Vittangi, Sweden | 1 | Graphite | 15000000 |  |  |  |  | 15000000 |
| Hackett River, Nunavut | 2 | Ag, Cu, Zn, Pb, Au | 14716000 |  |  |  |  | 14716000 |
| Toega, Burkina Faso | 2.7<sup>4</sup> | Au | 11204338 |  |  |  |  | 11204338 |
| Mocoa, Colombia | 2 | Cu, Mo | 10000000 |  |  |  |  | 10000000 |
| Blackwater, Canada | 0.21 | Au | 7537623 |  |  | 116167 | 116167 | 7421456 |
| Prairie Creek, Canada | 1.2 | Ag, Zn, Pb | 7514000 |  |  |  |  | 7514000 |
| Mason, Nevada | 0.4 | Cu, Au, Mo, Ag | 4876000 |  |  |  |  | 4876000 |
| Converse, Nevada | 1 | Au, Ag | 4391000 |  |  |  |  | 4391000 |
| Pilar, Brazil | 1 | Au | 5609000 | 2046222 | 212778 |  | 212778 | 3350000 |
| Cuiú Cuiú, Brazil | 1.5 | Au | 2070000 |  |  |  |  | 2070000 |
| Primavera, Nicaragua | 1.5 | Au, Cu | 1391058 |  |  |  |  | 1391058 |
| Other | Various | Various | 904208 |  |  |  |  | 904208 |
| **Total** |  |  | **213345499** | **10396222** | **2453284** | **899146** | **3352430** | **199596847** |
| **December 31, 2024** |  |  |  |  |  |  |  |  |
| Kiaka, Burkina Faso | 2.7<sup>1</sup> | Au | 58730390 |  |  |  |  | 58730390 |
| El Pilar, Mexico | 1.0<sup>3</sup> | Cu | 17489892 |  |  |  |  | 17489892 |
| Mercedes, Mexico | 2 | Au, Ag | 16822000 | 8350000 | 1397777 | 842729 | 2240506 | 6231494 |
| Vittangi, Sweden | 1 | Graphite | 15000000 |  |  |  |  | 15000000 |
| Hackett River, Nunavut | 2 | Ag, Cu, Zn, Pb, Au | 14716000 |  |  |  |  | 14716000 |
| Toega, Burkina Faso | 22.7<sup>4</sup> | Au | 11204338 |  |  |  |  | 11204338 |
| Mocoa, Colombia | 2 | Cu, Mo | 10000000 |  |  |  |  | 10000000 |
| Blackwater, Canada | 0.21 | Au | 7537623 |  |  |  |  | 7537623 |
| Prairie Creek, Canada | 1.2 | Ag, Zn, Pb | 7514000 |  |  |  |  | 7514000 |
| Mason, Nevada | 0.4 | Cu, Au, Mo, Ag | 4876000 |  |  |  |  | 4876000 |
| Converse, Nevada | 1 | Au, Ag | 4391000 |  |  |  |  | 4391000 |
| Pilar, Brazil | 1 | Au | 5609000 | 2046222 | 212778 |  | 212778 | 3350000 |
| Cuiú Cuiú, Brazil | 1.5 | Au | 2070000 |  |  |  |  | 2070000 |
| Primavera, Nicaragua | 1.5 | Au, Cu | 1391058 |  |  |  |  | 1391058 |
| Other | Various | Various | 904208 |  |  |  |  | 904208 |
| **Total** |  |  | **178255509** | **10396222** | **1610555** | **842729** | **2453284** | **165406003** |

---

1. 2.7% (100% basis) NSR royalty until 2.5 million oz of gold produced, 0.45% NSR royalty on next 1.5 million oz.

2. Once 6,000 tonnes of refined copper have been delivered, have the right to purchase 71.85% of produced copper. Once 10,500 tonnes of refined copper have been delivered, have the right to purchase 47.9% of life of mine produced copper.

3. Increasing to 2% / 3% if Measured & Indicated Resources inclusive of reserves > 3Blbs / 5Blbs copper equivalent.

4. 2.7% NSR royalty (100% basis) until royalty payments total US$22.5 million, and 0.45% NSR royalty on next 1.5Moz Au.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-54

------

7. Revolving Credit Facility

On April 30, 2025, the Company amended and increased its revolving credit facility ("RCF") to borrow up to $60.0 million with a $15.0 million accordion feature arranged by Bank of Montreal ("BMO"), as lead arranger, and National Bank of Canada ("NBC"). The RCF has a term of 3 years, maturing on April 30, 2028. Amounts drawn on the RCF are subject to interest at the Secured Overnight Financing Rate ("SOFR") plus 2.25% to 3.50% per annum, and the undrawn portion is subject to a standby fee of 0.5063%-0.7875% per annum, both of which are dependent on the Company's leverage ratio (as defined in the RCF agreement). Unamortized deferred financing on the RCF will be amortized over the remainder of the facility term. The RCF is secured by the Company's present and future acquired assets.

Under the RCF, the Company is required to maintain certain leverage and interest coverage ratios and minimum liquidity amounts. As at June 30, 2025, the Company was in compliance with all of the covenants related to the RCF.

**A continuity of the amount outstanding under the Revolving Credit Facility is as follows:**

---

| |
|:---|
| **Balance - December 31, 2023** |
| Accrued Interest |
| Interest paid) |
| Accretion of discount |
| Repayment) |
| **Balance - December 31, 2024** |
| Drawdown |
| Repayment) |
| Accrued interest |
| Interest paid) |
| Accretion of discount |
| Fees reclassified to deferred financing costs |
| **Balance - June 30, 2025** |

---

The Company has capitalized $0.7 million of deferred financing costs as at June 30, 2025, which relate to $0.4 million of commitment and other fees associated with amending the RCF and $0.3 million of unamortized costs which were reclassified on amendment. Amortization of the deferred financing costs the three and six months ended June 30, 2025, were $0.1 million and $0.1 million, respectively ($nil for the comparable periods in 2024).

8. Convertible Debt

**Beedie Convertible Loan**

On October 31, 2023, Versamet entered into a $16.0 million (the C$22.2 million) convertible loan with Beedie Capital Investments Ltd ("Beedie Capital") (the "Beedie Convertible Loan"). The Beedie Convertible Loan was denominated in Canadian dollars, had a term of 5 years and was scheduled to mature on October 31, 2028. Interest on the Beedie Convertible Loan consisted of an 8% base interest rate and a 1.5% paid-in-kind ("PIK") rate, with the PIK rate reducing to 1.0% upon the public listing of the Company. The Company had the option to pay 25-50% of the base interest rate in common shares of the Company, subject to certain conditions. Amounts outstanding under the Beedie Convertible Loan could be converted into common shares of the Company, at the option of Beedie Capital, at a price of C$0.84 per common share. The Company had the option to prepay the Beedie Convertible Loan, subject to certain fees.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-55

------

On April 30, 2025, the Company exercised its prepayment option and repaid and canceled the Beedie Convertible Loan. On repayment, Beedie Capital elected not to convert amounts outstanding into common shares of the Company. Consequently, the Company repaid the full amount of the loan and accrued interest outstanding in cash which resulted in a derecognition of both the Beedie Convertible Loan and the Convertible debt derivative liability related to the conversion option. The derecognition of the Convertible debt derivative liability of $3.2 million resulted in an equivalent gain in the Statement of Income and Comprehensive (Loss) Income. As a result of the revised repayment date, the Company recognized an increase in the carrying amount of the Beedie Convertible Loan of $3.3 million due to the accelerated recording of the accretion expense with a corresponding increase in finance expense. The Company also incurred $2.4 million of non-recurring prepayment fees which were recognized in finance and interest expense during the three and six months ended June 30, 2025.

**A continuity of the Beedie Convertible Loan Liability and the Beedie Derivative Liability is as follows:**

---

| |
|:---|
| **Balance - December 31, 2023** |
| Accrued Interest |
| Interest paid) |
| Accrued PIK interest |
| Accretion of discount |
| Foreign exchange gain) |
| **Balance - December 31, 2024** |
| Accrued Interest |
| Interest paid) |
| Accrued PIK interest |
| Accretion of discount |
| Foreign exchange loss |
| Accelerated accretion of discount due to revised repayment date |
| Repayment) |
| **Balance - June 30, 2025** |
| Amount allocated to Derivative Liability |
| **Balance - December 31, 2023** |
| Change in FVTPL) |
| **Balance - December 31, 2024** |
| Change in FVTPL) |
| Derecognition on repayment) |
| **Balance - June 30, 2025** |

---

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-56

------

9. Share Capital and Reserves

**Authorized, Issued and Outstanding**

The Company is authorized to issue an unlimited number of common shares without par value.

**Share-based compensation** 

**During the three and six months ended June 30, 2025 and 2024, the breakdown of the Company's share based compensation was as follows:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Stock options | 212383 | 187045 | 358438 | 394290 |
| Restricted Share Units | 299758 | 165676 | 549813 | 1165354 |
| Performance Restricted Share Units | 91706 | 41431 | (265694) | 82862 |
| **Total Share-based compensation expense** | **603847** | **394152** | **642557** | **1642506** |

---

STOCK OPTIONS

**A continuity schedule for stock options is as follows:**

---

| | |
|:---|:---|
| **Stock Options** | **Number** |
| **Outstanding - December 31, 2023** | **9530000** |
| Granted | 2093930 |
| **Outstanding - December 31, 2024** | **11623930** |
| Granted | 6269081 |
| Forfeited | (1222857) |
| **Outstanding - June 30, 2025** | **16670154** |

---

**The following are the weighted average assumptions used in the Black-Scholes Model to estimate the grant date fair value of the stock options granted:**

---

| | | |
|:---|:---|:---|
|  | **6 months ended**<br>**Jun. 30, 2025** | **6 months ended**<br>**Jun. 30, 2024** |
| Expected stock price volatility | 41.4% | 40.0% |
| Risk-free interest rate | 3.1% | 3.3% |
| Expected life of the options | 5 years | 5 years |
| Expected dividend yield | 0.0% | 0.0% |
| Forfeiture rate | 5.0% | 5.0% |
| **Grant date fair value per option** | $**0.22** | $**0.21** |

---

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-57

------

**As at June 30, 2025, the Company had the following stock options outstanding:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Number outstanding** | **Exercisable** | **Exercise Price per Share** | **Expiry Date** | **Weighted average life <br>remaining (years)** |
| 6280000 | 4186667 | C$0.70 | September 1, 2027 | 2.17 |
| 1000000 | 1000000 | C$0.70 | November 28, 2026 | 1.41 |
| 750000 | 500000 | C$0.70 | February 27, 2028 | 2.66 |
| 750000 | 500000 | C$0.70 | March 20, 2028 | 2.72 |
| 750000 | 500000 | C$0.70 | April 3, 2028 | 2.76 |
| 146875 | 146875 | C$0.70 | November 28, 2026 | 1.41 |
| 1653305 | 551102 | C$0.70 | January 15, 2029 | 3.55 |
| 3044974 | Nil | C$0.80 | January 15, 2030 | 4.55 |
| 1295000 | Nil | C$0.80 | May 9, 2030 | 4.86 |
| 1000000 | Nil | C$0.80 | May 12, 2030 | 4.87 |
| **16670154** | **7384643** | **C$0.73** | **-** | **3.13** |

---

RESTRICTED SHARE UNITS ("RSU")

**A continuity schedule for RSUs is as follows:**

---

| | |
|:---|:---|
| **Restricted Share Units** | **Number** |
| **Outstanding - December 31, 2022 & 2023** | **2000000** |
| Granted | 3294135 |
| **Outstanding - December 31, 2024** | **5294135** |
| Granted | 3257813 |
| Settled | (2740000) |
| Forfeited | (724375) |
| **Outstanding - June 30, 2025** | **5087573** |

---

The holders of the RSUs have the right to defer receipt of the Common Shares underlying the RSUs upon vesting. As at June 30, 2025, there were 2,417,606 RSUs which are exercisable and settlement has been deferred at the election of the holder.

The grant date fair value of the RSUs is determined using the market value of the underlying Common Shares at the date of the grant and is adjusted based on the number of RSUs expected to ultimately vest. The weighted average grant date fair value of the RSUs granted during the six months ended June 30, 2025 was $0.54 per RSU.

PERFORMANCE RESTRICTED SHARE UNITS ("PRSU")

**A continuity schedule for PRSUs is as follows:**

---

| | |
|:---|:---|
| **Performance Restricted Share Units** | **Number** |
| **Outstanding - December 31, 2023 & 2024** | **2000000** |
| Granted | 2000000 |
| Forfeited | (2000000) |
| **Outstanding - June 30, 2025** | **2000000** |

---

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-58

------

On February 28, 2025, 2,000,000 PRSUs were forfeited upon the resignation of the CEO resulting in the reversal of $357,400 of previously expensed share-based compensation.

On April 30, 2025, the Company granted 2,000,000 equity-settled PRSUs to the CEO which vest upon the achievement of the following two milestones: (a) the first anniversary of the date of grant, and (b) a 40-day volume weighted average share price for the Company of greater than or equal to C$1.40 at any time prior to April 1, 2028.

**The following assumptions were used in a Monte Carlo simulation to estimate the grant date fair value of the PRSUs:**

---

| | |
|:---|:---|
| Expected stock price volatility | 43.9% |
| Risk-free interest rate<sup>1</sup> | Various |
| Expected life of the options | 3 years |
| Expected dividend yield | 0.0% |
| Forfeiture rate | 0.0% |
| **Grant date fair value per PRSU** | $**0.30** |

---

1. The Risk-free rate was based on the Canadian Overnight Index Swap curve as at the grant date.

**Earnings per share**

**Basic and diluted earnings per share is calculated based on the following:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Net income for the period | 170487 | 1123370 | 1954698 | 949876 |
| Basic weighted average number of shares | 465702586 | 326255140 | 464780309 | 305530489 |
| **Basic income per share** | **0.00** | **0.00** | **0.00** | **0.00** |
| **Effect of dilutive securities** |  |  |  |  |
| Stock options | 2532785 | 9156275 | 2029386 | 9339400 |
| RSUs | 4802428 | 5294135 | 5039189 | 5040740 |
| PRSUs | 1230914 |  | 1230914 |  |
| **Diluted weighted average number of common shares** | **474268713** | **340705550** | **473079798** | **319910629** |
| **Diluted earnings per share** | **0.00** | **0.00** | **0.00** | **0.00** |

---

The following table lists the number of potentially dilutive securities which were excluded from the computation of diluted earnings per share because the exercise prices plus any unamortized share-based compensation per share, if relevant, exceeded the average market value of the common shares during the three and six month periods ending June 30, 2025 of CAD$0.92 and CAD$0.86, respectively (CAD$0.71 and CAD$0.73 for the comparable periods in 2024).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Beedie Convertible Loan |  | 26550083 |  | 26500623 |
| Stock options | 4323436 |  | 3435391 |  |

---

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-59

------

10. Taxation

**The tax expense at statutory rates for the Company can be reconciled to the reported income for the periods per the Condensed Interim Statements of Income as follows:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Net income before income tax expense | 831998 | 1744302 | 3391529 | 2106003 |
| Statutory income tax rate | 27% | 27% | 27% | 27% |
| **Expected income tax at the statutory rate** | **224640** | **470962** | **915713** | **568621** |
| Withholding taxes on royalty revenue | 137252 | 109384 | 251851 | 242188 |
| Non-deductible expenses | 234405 | 64459 | 204579 | 400626 |
| Change in unrecognized tax assets | 65214 | (23873) | 64688 | (55308) |
| **Total income tax expense** | **661511** | **620932** | **1436831** | **1156127** |

---

**The breakdown of the income tax expense during the following periods is as follows:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Current income tax expense | 137252 | 109384 | 251851 | 242188 |
| Deferred income tax expense | 524259 | 511548 | 1184980 | 913939 |
| **Total income tax expense** | **661511** | **620932** | **1436831** | **1156127** |

---

The current tax expense was incurred as a withholding tax payable on the royalty revenue earned from the Mercedes Mine.

11. Related Party Transactions

Related parties are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, either directly or indirectly. Related parties of the Company include the members of the Board of Directors, officers of the Company, close family members of these individuals, and any companies controlled by these individuals.

**Sandstorm**

Sandstorm is a related party of the Company as a result of it having significant influence through its share ownership in the Company and the ability to nominate for election a representative to the board of directors of the Company.

The Company had a convertible note outstanding with Sandstorm which was fully converted during the year ended December 31, 2024, leaving a remaining balance of nil at June 30, 2025. The Company has entered a License agreement with Sandstorm for C$17,500 per month for rent and other shared office costs.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-60

------

**Compensation of Key Management Personnel**

Key management personnel include persons having the authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. Versamet considers its Board of Directors, as well as the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") to be key management personnel. Compensation for key management personnel of the Company was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| Salaries and benefits | 110072 | 105523 | 1024528 | 218214 |
| Share-based compensation | 332572 | 209814 | 234124 | 775539 |
| **Total** | **442644** | **315337** | **1258652** | **993753** |

---

12. Segmented Information

The Company's reportable operating segments, which are components of the Company's business where separate financial information is available and which are evaluated on a regular basis by the Company's CEO, who is the Company's chief operating decision maker, for the purpose of assessing performance, are summarized in the tables below.

**For the three months ended June 30, 2025:**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Asset, Location** | **Sales**<br>**$** | **Royalty <br>revenue**<br>**$** | **Cost of** <br>**sales <sup>2</sup>**<br>**$** | **Depletion**<br>**$** | **Change in <br>fair value of <br>Greenstone <br>gold interest**<br>**$** | **Income <br>(loss)**<br> **before taxes**<br>**$** | **Cash flow <br>from <br>operating <br>activities**<br>**$** |
| Blackwater, Canada |  | 361257 |  | (116167) |  | 245090 | 361257 |
| Greenstone, Canada | 3428600 |  | (3441024) |  | 5432758 | 5420334 | 2740395 |
| Kolpa, Peru | 486772 |  | (49294) | (297238) |  | 140240 | 437478 |
| Mercedes, Mexico |  | 549008 |  | (247585) |  | 301423 | 549008 |
| **Total segments** | **3915372** | **910265** | **(3490318)** | **(660990)** | **5432758** | **6107087** | **4088138** |
| Operating expenses <sup>**1**</sup> |  |  |  |  |  | (1341465) | (737618) |
| Foreign exchange loss |  |  |  |  |  | (527157) | (4995) |
| Finance and interest expense net of interest income |  |  |  |  |  | (6579267) |  |
| Change in fair value of derivative liability |  |  |  |  |  | 3172800 |  |
| Income tax paid |  |  |  |  |  |  | (137252) |
| Movement in working capital |  |  |  |  |  |  | (898385) |
| **Total Corporate** | **-** | **-** | **-** | **-** | **-** | **(5275089)** | **(1778250)** |
| **Segments & Corporate total** | **3915372** | **910265** | **(3490318)** | **(660990)** | **5432758** | **831998** | **2309888** |

---

1. Includes all operating expenses from the Statement of Income and Comprehensive (Loss) Income with the exception of the change in value of the Greenstone gold interest (and excludes share-based compensation from cash flow from operating activities).

2. Cost of sales include cost of sales for the Greenstone gold interest consisting of a $0.7 million cash payment to Equinox for gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) and a $2.8 million non-cash partial settlement of the Greenstone gold interest due to the gold delivered in the period.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-61

------

**For the three months ended June 30, 2024:**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Asset, Location** | **Sales**<br>**$** | **Royalty <br>revenue**<br>**$** | **Cost of** <br>**sales <sup>2</sup>**<br>**$** | **Depletion**<br>**$** | **Change in <br>fair value of <br>Greenstone <br>gold interest**<br>**$** | **Income <br>(loss)** <br>**before taxes**<br>**$** | **Cash flow <br>from <br>operating <br>activities**<br>**$** |
| Greenstone, Canada | 2463125 |  | (2460325) |  | 3951048 | 3953848 | 1971060 |
| Mercedes, Mexico |  | 437536 |  | (187457) |  | 250079 | 437536 |
| **Total segments** | **2463125** | **437536** | **(2460325)** | **(187457)** | **3951048** | **4203927** | **2408596** |
| Operating expenses <sup>**1**</sup> |  |  |  |  |  | (914131) | (519979) |
| Foreign exchange gain (loss) |  |  |  |  |  | 112548 | (72) |
| Finance and interest expense net of interest income |  |  |  |  |  | (980587) |  |
| Change in fair value of derivative liability |  |  |  |  |  | (677455) |  |
| Income tax paid |  |  |  |  |  |  | (109384) |
| Movement in working capital |  |  |  |  |  |  | 69448 |
| **Total Corporate** | **-** | **-** | **-** | **-** | **-** | **(2459625)** | **(559987)** |
| **Segments & Corporate total** | **2463125** | **437536** | **(2460325)** | **(187457)** | **3951048** | **1744302** | **1848609** |

---

1. Includes all operating expenses from the Statement of Income and Comprehensive (Loss) Income with the exception the change in value of the Greenstone gold interest (and excludes share-based compensation from cash flow from operating activities).

2. Cost of sales include cost of sales for the Greenstone gold interest consists of a $0.5 million cash payment to Equinox for gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) and a $2.0 million non-cash partial settlement of the Greenstone gold interest due to the gold delivered in the period.

**For the six months ended June 30, 2025:**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Asset, Location** | **Sales**<br>**$** | **Royalty <br>revenue**<br>**$** | **Cost of** <br>**sales <sup>2</sup>**<br>**$** | **Depletion**<br>**$** | **Change in <br>fair value of <br>Greenstone <br>gold interest**<br>**$** | **Income <br>(loss) before <br>taxes**<br>**$** | **Cash flow <br>from <br>operating <br>activities**<br>**$** |
| Blackwater, Canada |  | 361257 |  | (116167) |  | 245090 | 361257 |
| Greenstone, Canada | 6423725 |  | (6435747) |  | 9643973 | 9631951 | 5136576 |
| Kolpa, Peru | 486772 |  | (49294) | (297238) |  | 140240 | 437478 |
| Mercedes, Mexico |  | 1007406 |  | (485741) |  | 521665 | 1007406 |
| **Total segments** | **6910497** | **1368663** | **(6485041)** | **(899146)** | **9643973** | **10538946** | **6942717** |
| Operating expenses <sup>**1**</sup> |  |  |  |  |  | (2700306) | (2057749) |
| Foreign exchange loss |  |  |  |  |  | (536058) | (14061) |
| Finance and interest expense net of interest income |  |  |  |  |  | (7195768) |  |
| Change in fair value of derivative liability |  |  |  |  |  | 3284715 |  |
| Income tax paid |  |  |  |  |  |  | (251851) |
| Movement in working capital |  |  |  |  |  |  | (1657550) |
| **Total Corporate** | **-** | **-** | **-** | **-** | **-** | **(7147417)** | **(3981211)** |
| **Segments & Corporate total** | **6910497** | **1368663** | **(6485041)** | **(899146)** | **9643973** | **3391529** | **2961506** |

---

1. Includes all operating expenses from the Statement of Income and Comprehensive (Loss) Income with the exception of impairment charges and the change in value of the Greenstone gold interest (and excludes share-based compensation and impairment charges from cash flow from operating activities).

2. Cost of sales include cost of sales for the Greenstone gold interest consisting of a $1.3 million cash payment to Equinox for gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) and a $5.1 million non-cash partial settlement of the Greenstone gold interest due to the gold delivered in the period.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-62

------

**For the six months ended June 30, 2024:**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Asset, Location** | **Sales**<br>**$** | **Royalty <br>revenue**<br>**$** | **Cost of** <br>**sales <sup>2</sup>**<br>**$** | **Depletion**<br>**$** | **Change in <br>fair value of <br>Greenstone <br>gold <br>interest**<br>**$** | **Income <br>(loss) before <br>taxes**<br>**$** | **Cash flow <br>from <br>operating <br>activities**<br>**$** |
| Greenstone, Canada | 4628925 |  | (4630868) |  | 6336383 | 6334440 | 3702752 |
| Mercedes, Mexico |  | 968751 |  | (446179) |  | 522572 | 968751 |
| **Total segments** | **4628925** | **968751** | **(4630868)** | **(446179)** | **6336383** | **6857012** | **4671503** |
| Operating expenses <sup>**1**</sup> |  |  |  |  |  | (2667962) | (1025456) |
| Foreign exchange gain (loss) |  |  |  |  |  | 221825 | (4359) |
| Finance and interest expense net of interest income |  |  |  |  |  | (2012611) |  |
| Change in fair value of derivative liability |  |  |  |  |  | (292261) |  |
| Income tax paid |  |  |  |  |  |  | (242188) |
| Movement in working capital |  |  |  |  |  |  | 15289 |
| **Total Corporate** | **-** | **-** | **-** | **-** | **-** | **(4751009)** | **(1256714)** |
| **Segments & Corporate total** | **4628925** | **968751** | **(4630868)** | **(446179)** | **6336383** | **2106003** | **3414789** |

---

1. Includes all operating expenses from the Statement of Income and Comprehensive (Loss) Income with the exception the change in value of the Greenstone gold interest (and excludes share-based compensation from cash flow from operating activities).

2. Cost of sales include cost of sales for the Greenstone gold interest consists of a $0.9 million cash payment to Equinox for gold delivered (at a cost per oz of gold equal to 20% of the prevailing market price) and a $3.7 million non-cash partial settlement of the Greenstone gold interest due to the gold delivered in the period.

**Total Non-Current Assets by Segment**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025**<br>**$** | **Dec. 31, 2024**<br>**$** |
| **Investments** |  |  |
| Investments | 496033 | 729981 |
| **Prepaid gold interest** |  |  |
| Greenstone gold interest | 58422188 | 54658056 |
| **Royalty, Stream & Other Assets** |  |  |
| Kiaka, Burkina Faso | 58730390 | 58730390 |
| Kolpa, Peru | 34792752 |  |
| El Pilar, Mexico | 17489892 | 17489892 |
| Vittangi, Sweden | 15000000 | 15000000 |
| Hackett River, Nunavut | 14716000 | 14716000 |
| Toega, Burkina Faso | 11204338 | 11204338 |
| Mocoa, Colombia | 10000000 | 10000000 |
| Prairie Creek, Canada | 7514000 | 7514000 |
| Blackwater, Canada | 7421456 | 7537623 |
| Mercedes, Mexico | 5745753 | 6231494 |
| Mason, Nevada | 4876000 | 4876000 |
| Converse, Nevada | 4391000 | 4391000 |
| Pilar, Brazil | 3350000 | 3350000 |
| Cuiú Cuiú, Brazil | 2070000 | 2070000 |
| Primavera, Nicaragua | 1391058 | 1391058 |
| Other | 904208 | 904208 |
| **Total Royalty, stream & other interests** | **199596847** | **165406003** |
| **Total** | **258515068** | **220794040** |

---

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-63

------

**Total Non-Current Assets by Geographic Region**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025**<br>**$** | **Dec. 31, 2024**<br>**$** |
| North America | 120576289 | 117414065 |
| Africa | 70430761 | 70664709 |
| Central and South America | 51603810 | 16811058 |
| Europe | 15000000 | 15000000 |
| Other | 904208 | 904208 |
| **Total** | **258515068** | **220794040** |

---

13. Supplemental Cash Flow Information

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended**<br>**Jun. 30, 2025**<br>**$** | **3 months ended**<br>**Jun. 30, 2024**<br>**$** | **6 months ended**<br>**Jun. 30, 2025**<br>**$** | **6 months ended**<br>**Jun. 30, 2024**<br>**$** |
| CHANGES IN NON-CASH WORKING CAPITAL: |  |  |  |  |
| Trade and other receivables and prepaid assets | (800406) | 106465 | (776596) | 110354 |
| Trade and other payables | (97979) | (37017) | (880954) | (95065) |
| **Net (decrease) increase in cash** | **(898385)** | **69448** | **(1657550)** | **15289** |
| SIGNIFICANT NON-CASH TRANSACTIONS: |  |  |  |  |
| Equity issued for royalty portfolio acquisition |  | 71609811 |  | 71609811 |
| Settlement of convertible note in shares |  | 7629314 |  | 7629314 |
| Settlement of interest payments in shares (note 8) |  |  | 154626 | 163650 |

---

14. Financial Instruments

As at June 30, 2025, the Company's financial instruments consist of cash and cash equivalents, trade and other receivables, investments, the Greenstone gold interest, trade and other payables and the RCF. The Company classifies cash and cash equivalents and trade and other receivables as financial assets held at amortized cost; the Company holds its investments at FVTOCI. The Company classifies trade and other payables and the RCF as other financial liabilities held at amortized cost. The Greenstone gold interest is carried at FVTPL.

The fair value hierarchy establishes three levels to classify the inputs of valuation techniques used to measure fair value. The three levels of the fair value hierarchy are below:

**Level 1** - fair values based on unadjusted quoted prices in active markets for identical assets or liabilities;

**Level 2** - fair values based on inputs that are observable for the asset or liability, either directly or indirectly; and

**Level 3** - fair values based on inputs for the asset or liability that are not based on observable market data.

The following table sets forth the Company's financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at June 30, 2025 and December 31, 2024.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-64

------

**As at June 30, 2025:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total**<br>**$** | **Quoted prices in active <br>markets for identical <br>assets (Level 1)**<br>**$** | **Significant other <br>observable inputs <br>(Level 2)**<br>**$** | **Significant <br>unobservable inputs <br>(Level 3)**<br>**$** |
| Investments | 496033 | 496033 |  |  |
| Greenstone gold interest | 66781178 |  |  | 66781178 |
| **Total** | **67277211** | **496033** | **-** | **66781178** |

---

**As at December 31, 2024:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total**<br>**$** | **Quoted prices in active <br>markets for identical <br>assets (Level 1)**<br>**$** | **Significant other <br>observable inputs <br>(Level 2)**<br>**$** | **Significant <br>unobservable inputs <br>(Level 3)**<br>**$** |
| Investments | 729981 | 729981 |  |  |
| Greenstone gold interest | 62285803 |  |  | 62285803 |
| Beedie Convertible Loan | 12333503 |  | 12333503 |  |
| Beedie Derivative Liability | 3284715 |  |  | 3284715 |
| **Total** | **78634002** | **729981** | **12333503** | **65570518** |

---

The fair value of the Company's other financial instruments, which include cash and cash equivalents, trade and other receivables, and trade and other payables, approximate their carrying values at June 30, 2025 and December 31, 2024 due to their short-term nature. The fair value of the Company's RCF, which is measured using Level 2 inputs, approximates its carrying value due to the nature of its market-based rate of interest. There were no transfers between the levels of the fair value hierarchy during the period ended June 30, 2025 and the year ended December 31, 2024.

The risk exposure arising from these financial instruments is summarized as follows:

**Credit risk** 

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is limited to the carrying value of its cash and cash equivalents and trade and other receivables. The Company's trade and other receivables are subject to the credit risk of the counterparties who own and operate the mines underlying Versamet's royalty, stream and other assets portfolio. In order to mitigate its exposure to credit risk, the Company monitors its financial assets and holds its cash with a highly rated Canadian financial institution.

**Liquidity risk** 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's approach to managing liquidity risk is to have in place a planning and budgeting process to ensure that it will have sufficient liquidity to meet liabilities when due in the normal course of operations. In assessing liquidity risk, the Company takes into account its cash and expected income from royalties, stream and the Greenstone gold interest.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-65

------

**The following table shows Company's contractual obligations as they fall due as at June 30, 2025 and December 31, 2024:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Within 1 year**<br>**$** | **1-5 years**<br>**$** | **Over 5 years**<br>**$** | **Total**<br>**June 30, 2025**<br>**$** | **Total**<br>**Dec. 31, 2024**<br>**$** |
| Trade and other payables | 151094 |  |  | 151094 | 1232088 |
| RCF <sup>**1**</sup> | 4068709 | 60468590 |  | 64537299 | 1152948 |
| Beedie Convertible Loan <sup>**1**</sup> |  |  |  |  | 21784186 |
| **Total** | **4219803** | **60468590** | **-** | **64688393** | **24169222** |

---

1. The estimated interest amounts related to the Beedie Convertible Loan and the BMO are included in the table above.

**Market risk**

Market risk is the risk that changes in market prices, such as commodity price risk, foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings or financial instruments.

Commodity price risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices. Commodity prices can be subject to volatile price movements, which can be material and can occur over short periods of time and are affected by numerous factors, all of which are beyond the Company's control.

Financial instruments that impact net income and total comprehensive (loss) income of the Company due to currency fluctuations include cash and cash equivalents, investments, and trade and other payables denominated in Canadian dollars. Based on the Company's Canadian dollar monetary assets and monetary liabilities as at June 30, 2025, a 10% increase or decrease in the Canadian dollar relative to the United States dollar would have an approximate impact of $0.1 million on net income and total comprehensive (loss) income as at June 30, 2025.

The Company is exposed to commodity price movements as a result of the GPA (note 4). The Company holds the GPA at FVTPL. The fair value is calculated using a series of inputs into a discounted cash flow including the gold price. A 10% increase or decrease in the gold price used in the valuation as at June 30, 2025 would increase or decrease net income and total comprehensive (loss) income by $6.7 million.

15. Capital Management

The Company manages its capital structure and adjusts it, based on the funds available to the Company, to support its' activities, continue as a going concern and maximize its return to stakeholders. The Company considers capital to be all accounts in equity and all borrowings of the Company. The Company is subject to certain covenants under the RCF (note 7); at June 30, 2025 the Company was in compliance with all covenants. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of management to maintain an appropriate liquidity profile to allow management to execute on its strategic plan. Additional funds may be required to finance the Company's operations in the future.

Versamet Royalties Unaudited Condensed Interim Financial Statements <br> F-66

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## Ex-1

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![](exhibit1x001.jpg)

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![](exhibit1x002.jpg)

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![](exhibit1x003.jpg)

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## Ex-2

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**VERSAMET ROYALTIES CORPORATION**

**(the "Company")**

The Company has as its articles the following articles.

**VERSAMET ROYALTIES CORPORATION**

**(the "Company")**

**ARTICLES**

---

| | |
|:---|:---|
| [1. Interpretation](#page_2) | [2](#page_2) |
| [2. Shares and Share Certificates](#page_2) | [2](#page_2) |
| [3. Issue of Shares](#page_4) | [4](#page_4) |
| [4. Share Registers](#page_5) | [5](#page_5) |
| [5. Share Transfers](#page_5) | [5](#page_5) |
| [6. Transmission of Shares](#page_7) | [7](#page_7) |
| [7. Purchase of Shares](#page_7) | [7](#page_7) |
| [8. Borrowing Powers](#page_8) | [8](#page_8) |
| [9. Alterations](#page_9) | [9](#page_9) |
| [10. Meetings of Shareholders](#page_10) | [10](#page_10) |
| [11. Proceedings at Meetings of Shareholders](#page_12) | [12](#page_12) |
| [12. Votes of Shareholders](#page_16) | [16](#page_16) |
| [13. Directors](#page_20) | [20](#page_20) |
| [14. Election and Removal of Directors](#page_22) | [22](#page_22) |
| [15. Alternate Directors](#page_24) | [24](#page_24) |
| [16. Powers and Duties of Directors](#page_26) | [26](#page_26) |
| [17. Interests of Directors and Officers](#page_26) | [26](#page_26) |
| [18. Proceedings of Directors](#page_28) | [28](#page_28) |
| [19. Executive and Other Committees](#page_30) | [30](#page_30) |
| [20. Officers](#page_32) | [32](#page_32) |
| [21. Indemnification](#page_32) | [32](#page_32) |
| [22. Dividends](#page_34) | [34](#page_34) |
| [23. Accounting Records and Auditors](#page_36) | [36](#page_36) |
| [24. Notices](#page_36) | [36](#page_36) |
| [25. Seal](#page_38) | [38](#page_38) |
| [26. Prohibitions](#page_39) | [39](#page_39) |

---

------

**1.** **INTERPRETATION**

**1.1** **Definitions**

In these Articles, unless the context otherwise requires:

(1) "board of directors", "directors" and "board" mean the directors or sole director of the Company for the time being;

(2) "*Business Corporations Act*" means the *Business Corporations Act* (British Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act;

(3) "*Interpretation Act*" means the *Interpretation Act* (British Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act;

(4) "legal personal representative" means the personal or other legal representative of a shareholder;

(5) "registered address" of a shareholder means the shareholder's address as recorded in the central securities register;

(6) "seal" means the seal of the Company, if any.

**1.2** ***Business Corporations Act*** **and** ***Interpretation Act*** **Definitions Applicable**

The definitions in the *Business Corporations Act* and the definitions and rules of construction in the *Interpretation Act*, with the necessary changes, so far as applicable, and unless the context requires otherwise, apply to these Articles as if they were set out herein. If there is a conflict between a definition in the *Business Corporations Act* and a definition or rule in the *Interpretation Act* relating to a term used in these Articles, the definition in the *Business Corporations Act* will prevail in relation to the use of the term in these Articles. If there is a conflict or inconsistency between these Articles and the *Business Corporations Act*, the *Business Corporations Act* will prevail.

**2.** **SHARES AND SHARE CERTIFICATES**

**2.1** **Authorized Share Structure**

The authorized share structure of the Company consists of shares of the class or classes and series, if any, described in the Notice of Articles of the Company.

**2.2** **Form of Share Certificate**

Each share certificate issued by the Company must comply with, and be signed as required by, the *Business Corporations Act*.

------

**2.3** **Shareholder Entitled to Certificate or Acknowledgment or Written Notice**

Unless the shares of which a shareholder is the registered owner are uncertificated shares, each shareholder is entitled, on request and at the shareholder's option, without charge, to (a) one share certificate representing the shares of each class or series of shares registered in the shareholder's name or (b) a non-transferable written acknowledgment of the shareholder's right to obtain such a share certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more than one share certificate or acknowledgment and delivery of a share certificate or acknowledgment to one of several joint shareholders or to a duly authorized agent of one of the joint shareholders will be sufficient delivery to all. Within a reasonable time after the issue or transfer of a share that is an uncertificated share, the Company must send to the shareholder a written notice containing the information required by the *Business Corporations Act*.

**2.4** **Delivery by Mail**

Any share certificate, non-transferable written acknowledgment of a shareholder's right to obtain a share certificate or written notice of the issue or transfer of an uncertificated share may be sent to the shareholder by mail at the shareholder's registered address and neither the Company nor any director, officer or agent of the Company is liable for any loss to the shareholder because the share certificate, acknowledgement or written notice is lost in the mail or stolen.

**2.5** **Replacement of Worn Out or Defaced Certificate** **or Acknowledgement**

If the directors are satisfied that a share certificate or a non-transferable written acknowledgment of the shareholder's right to obtain a share certificate is worn out or defaced, they must, on production to them of the share certificate or acknowledgment, as the case may be, and on such other terms, if any, as they think fit:

(1) order the share certificate or acknowledgment, as the case may be, to be cancelled; and

(2) issue a replacement share certificate or acknowledgment, as the case may be.

**2.6** **Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgment**

If a share certificate or a non-transferable written acknowledgment of a shareholder's right to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or acknowledgment, as the case may be, must be issued to the person entitled to that share certificate or acknowledgment, as the case may be, provided such person has complied with the requirements of the *Business Corporations Act*.

**2.7** **Splitting Share Certificates**

If a shareholder surrenders a share certificate to the Company with a written request that the Company issue in the shareholder's name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate so surrendered, the Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request.

------

**2.8** **Certificate Fee**

There must be paid as a fee to the Company for the issuance of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any, determined by the directors, which must not exceed the amount prescribed under the *Business Corporations Act*.

**2.9** **Recognition of Trusts**

Except as required by law or statute or these Articles, no person will be recognized by the Company as holding any share upon any trust, and the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or fraction of a share or (except as required by law or statute or these Articles or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder.

**3.** **ISSUE OF SHARES**

**3.1** **Directors Authorized**

Subject to the *Business Corporations Act* and the rights, if any, of the holders of issued shares of the Company, the Company may issue, allot, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and conditions and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par value of the share.

**3.2** **Commissions** **and Discounts**

The Company may at any time, pay a reasonable commission or allow a reasonable discount to any person in consideration of that person purchasing or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company.

**3.3** **Brokerage**

The Company may pay such brokerage fee or other consideration as may be lawful for or in connection with the sale or placement of its securities.

**3.4** **Conditions of Issue**

Except as provided for by the *Business Corporations Act*, no share may be issued until it is fully paid. A share is fully paid when:

(1) consideration is provided to the Company for the issue of the share by one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) past services performed for the Company;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) money; and

(2) the directors in their discretion have determined that the value of the consideration received by the Company is equal to or greater than the issue price set for the share under Article 3.1.

**3.5** **Share Purchase Warrants and Rights**

**4.** **SHARE REGISTERS**

**4.1** **Central Securities Register** **and Any Branch Securities Register**

As required by and subject to the *Business Corporations Act*, the Company must maintain a central securities register and may maintain a branch securities register. The directors may, subject to the *Business Corporations Act*, appoint an agent to maintain the central securities register or any branch securities register. The directors may also appoint one or more agents, including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same or another agent as registrar for its shares or such class or series of its shares, as the case may be. The directors may terminate such appointment of any agent at any time and may appoint another agent in its place.

**4.2** **Closing Register**

The Company must not at any time close its central securities register.

**5.** **SHARE TRANSFERS**

**5.1** **Registering Transfers**

A transfer of a share of the Company must not be registered unless the Company or the transfer agent or registrar for the class or series of share to be transferred has received:

(1) a duly signed instrument of transfer in respect of the share;

(2) if a share certificate has been issued by the Company in respect of the share to be transferred, that share certificate;

(3) if a non-transferable written acknowledgment of the shareholder's right to obtain a share certificate has been issued by the Company in respect of the share to be transferred, that acknowledgment; and

------

(4) such other evidence, if any, as the Company or the transfer agent or registrar for the class or series of share to be transferred may require to prove the title of the transferor or the transferor's right to transfer the share, the due signing of the instrument of transfer and the right of the transferee to have the transfer registered.

For the purpose of this Article, delivery or surrender to the transfer agent or registrar which maintains the Company's central securities register or a branch securities register, if applicable, will constitute receipt by or surrender to the Company.

**5.2** **Form of Instrument of Transfer**

The instrument of transfer in respect of any share of the Company must be either in the form, if any, on the back of the Company's share certificates or in any other form that may be approved from time to time by the directors or the transfer agent or registrar for the class or series of share to be transferred.

**5.3** **Transferor Remains Shareholder**

Except to the extent that the *Business Corporations Act* otherwise provides, the transferor of shares is deemed to remain the holder of the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer.

**5.4** **Signing of Instrument of Transfer**

If a shareholder, or his or her duly authorized attorney, signs an instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of shares specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by the share certificate(s) or set out in the written acknowledgments deposited with the instrument of transfer or, if the shares are uncertificated shares, then all of the uncertificated shares registered in the name of the shareholder:

(1) in the name of the person named as transferee in that instrument of transfer; or

(2) if no person is named as transferee in that instrument of transfer, in the name of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered.

**5.5** **Enquiry as to Title Not Required**

Neither the Company nor any director, officer or agent of the Company is bound to inquire into the title of the person named in the instrument of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any share certificate representing such shares or of any written acknowledgment of a right to obtain a share certificate for such shares.

------

**5.6** **Transfer Fee**

There must be paid as a fee to the Company, in relation to the registration of any transfer, the amount, if any, determined by the directors.

**6.** **TRANSMISSION OF SHARES**

**6.1** **Legal Personal Representative Recognized on Death**

In case of the death of a shareholder, the legal personal representative of the shareholder, or, in the case of shares registered in the shareholder's name and the name of another person in joint tenancy, the surviving joint holder will be the only person recognized by the Company as having any title to the shareholder's interest in the shares. Before recognizing a person as a legal personal representative of the shareholder, the directors may require a declaration of transmission made by the legal personal representative stating the particulars of the transmission, proof of appointment by a court of competent jurisdiction, a grant of letters probate, letters of administration or such other evidence or documents as the directors consider appropriate.

**6.2** **Rights of Legal Personal Representative**

The legal personal representative of a shareholder has the same rights, privileges and obligations with respect to the shares as were held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the *Business Corporations Act* and the directors have been deposited with the Company. This Article 6.2 does not apply in the case of the death of a shareholder with respect to shares registered in the shareholder's name and the name of another person in joint tenancy.

**7.** **PURCHASE OF SHARES**

**7.1** **Company Authorized to Purchase Shares**

Subject to Article 7.2, the special rights and restrictions attached to the shares of any class or series and the *Business Corporations Act*, the Company may, if authorized by resolution of the directors, purchase, redeem or otherwise acquire any of its shares at the price and upon the terms determined by the directors.

**7.2** **Purchase When Insolvent**

The Company must not make a payment or provide any other consideration to purchase, redeem or otherwise acquire any of its shares if there are reasonable grounds for believing that:

(1) the Company is insolvent; or

(2) making the payment or providing the consideration would render the Company insolvent.

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**7.3** **Redemption of Shares**

If the Company proposes to redeem some but not all of the shares of any class, the directors may, subject to any special rights and restrictions attached to such class of shares, determine the manner in which the shares to be redeemed shall be selected.

**7.4** **Sale and Voting of Purchased Shares**

If the Company retains a share which it has redeemed, purchased or otherwise acquired, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:

(1) is not entitled to vote the share at a meeting of its shareholders;

(2) must not pay a dividend in respect of the share; and

(3) must not make any other distribution in respect of the share.

**8.** **BORROWING POWERS**

**8.1** **Powers of the Company**

The Company, if authorized by the directors, may:

(1) borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that the directors consider appropriate;

(2) issue bonds, debentures and other debt obligations either outright or as security for any liability or obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate;

(3) guarantee the repayment of money by any other person or the performance of any obligation of any other person; and

(4) mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give other security on, the whole or any part of the present and future assets and undertaking of the Company.

**8.2** **Bonds, Debentures, Debt**

Any bonds, debentures or other debt obligations of the Company may be issued at a discount, premium or otherwise, or with special privileges as to redemption, surrender, drawing, allotment of or conversion into or exchange for shares or other securities, attending and voting at general meetings of the Company, appointment of directors or otherwise and may, by their terms, be assignable free from any equities between the Company and the person to whom they were issued or any subsequent holder thereof, all as the directors may determine.

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**9.** **ALTERATIONS**

**9.1** **Alteration of Authorized Share Structure**

Subject to Article 9.2 and the *Business Corporations Act*, the Company may:

(1) by directors' resolution or by ordinary resolution, in each case as determined by the directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) create one or more classes or series of shares or, if none of the shares of a class or series of shares are allotted or issued, eliminate that class or series of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue of any class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class or series of shares for which no maximum is established;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subdivide or consolidate all or any of its unissued, or fully paid issued, shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Company is authorized to issue shares of a class of shares with par value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) decrease the par value of those shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) change all or any of its unissued shares with par value into shares without par value or any of its unissued shares without par value into shares with par value or change all or any of its fully paid issued shares with par value into shares without par value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) alter the identifying name of any of its shares; and

(2) by ordinary resolution otherwise alter its shares or authorized share structure;

and, if applicable, alter its Notice of Articles and, if applicable, alter its Articles accordingly.

**9.2** **Special Rights and Restrictions**

Subject to the *Business Corporations Act*, the Company may:

(1) by directors' resolution or by ordinary resolution, in each case as determined by the directors, create special rights or restrictions for, and attach those special rights or restrictions to, the shares of any class or series of shares if none of those shares have been issued; or vary or delete any special rights or restrictions attached to the shares of any class or series of shares if none of those shares have been issued; and

(2) by special resolution of the shareholders of the class or series affected, do any of the acts in (1) above if any of the shares of the class or series of shares have been issued, and alter its Notice of Articles and Articles accordingly.

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**9.3** **Change of Name**

The Company may by directors' resolution or by ordinary resolution, in each case as determined by the directors, authorize an alteration of its Notice of Articles in order to change its name and may, by directors' resolution or ordinary resolution, in each case as determined by the directors, adopt or change any translation of that name.

**9.4** **Other Alterations**

If the *Business Corporations Act* does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by directors' resolution or by ordinary resolution, in each case as determined by the directors, alter these Articles.

**10.** **MEETINGS OF SHAREHOLDERS**

**10.1** **Annual General Meetings**

Unless an annual general meeting is deferred or waived in accordance with the *Business Corporations Act*, the Company must hold its first annual general meeting within 18 months after the date on which it was incorporated or otherwise recognized, and after that must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by the directors.

**10.2** **Resolution Instead of Annual General Meeting**

If all the shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution to all of the business that is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date of the unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company's annual reference date a date that would be appropriate for the holding of the applicable annual general meeting.

**10.3** **Calling of Meetings** **of Shareholders**

The directors may, at any time, call a meeting of shareholders.

**10.4** **Location of Meetings of Shareholders** 

A meeting of the Company may be held:

(1) in the Province of British Columbia;

(2) at another location outside British Columbia if that location is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) approved by resolution of the directors before the meeting is held; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) approved in writing by the Registrar of Companies before the meeting is held.

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**10.5** **Notice for Meetings of Shareholders**

Subject to Article 10.2, the Company must send notice of the date, time and location of any meeting of shareholders (including, without limitation, any notice specifying the intention to propose a resolution as an exceptional resolution, a special resolution or a special separate resolution, and any notice to consider approving an amalgamation into a foreign jurisdiction, an arrangement or the adoption of an amalgamation agreement, and any notice of a general meeting, class meeting or series meeting), in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by directors' resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting:

(1) if and for so long as the Company is a public company, 21 days;

(2) otherwise, 10 days.

**10.6** **Notice of Resolution to which Shareholders May Dissent**

The Company must send to each of its shareholders, whether or not their shares carry the right to vote, a notice of any meeting of shareholders at which a resolution entitling shareholders to dissent is to be considered specifying the date of the meeting and containing a statement advising of the right to send a notice of dissent together with a copy of the proposed resolution at least the following number of days before the meeting:

(1) if and for so long as the Company is a public company, 21 days; or

(2) otherwise, 10 days.

**10.7** **Record Date for Notice**

The directors may set a date as the record date for the purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the *Business Corporations Act*, by more than four months. The record date must not precede the date on which the meeting is held by fewer than:

(1) if and for so long as the Company is a public company, 21 days; or

(2) otherwise, 10 days.

If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

**10.8** **Record Date for Voting**

The directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the *Business Corporations Act*, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

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**10.9** **Failure to Give Notice and Waiver of Notice**

The accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting. Any person entitled to notice of a meeting of shareholders may, in writing or otherwise, waive that entitlement or may agree to reduce the period of that notice. Attendance of a person at a meeting of shareholders is a waiver of entitlement to notice of the meeting unless that person attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

**10.10** **Notice of Special Business at Meetings of Shareholders**

If a meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting or a circular prepared in connection with the meeting must:

(1) state the general nature of the special business; and

(2) if the special business includes considering, approving, ratifying, adopting or authorizing any document or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document will be available for inspection by shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the Company's records office, or at such other reasonably accessible location in British Columbia as is specified in the notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) during statutory business hours on any one or more specified days before the day set for the holding of the meeting.

**11.** **PROCEEDINGS AT MEETINGS OF SHAREHOLDERS**

**11.1** **Special Business**

At a meeting of shareholders, the following business is special business:

(1) at a meeting of shareholders that is not an annual general meeting, all business is special business except business relating to the conduct of or voting at the meeting;

(2) at an annual general meeting, all business is special business except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) business relating to the conduct of or voting at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consideration of any financial statements of the Company presented to the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consideration of any reports of the directors or auditor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the setting or changing of the number of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the election or appointment of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the appointment of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the setting of the remuneration of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) business arising out of a report of the directors not requiring the passing of a special resolution or an exceptional resolution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any other business which, under these Articles or the *Business Corporations Act*, may be transacted at a meeting of shareholders without prior notice of the business being given to the shareholders.

**11.2** **Special Majority**

The majority of votes required for the Company to pass a special resolution at a general meeting of shareholders is two-thirds of the votes cast on the resolution.

**11.3** **Quorum**

Subject to the special rights and restrictions attached to the shares of any class or series of shares, the quorum for the transaction of business at a meeting of shareholders is one person present or represented by proxy.

**11.4** **Persons Entitled to Attend Meeting**

In addition to those persons who are entitled to vote at a meeting of shareholders, the only other persons entitled to be present at the meeting are the directors, the president (if any), the secretary (if any), the assistant secretary (if any), any lawyer for the Company, the auditor of the Company, any persons invited to be present at the meeting by the directors or by the chair of the meeting and any persons entitled or required under the *Business Corporations Act* or these Articles to be present at the meeting; but if any of those persons does attend the meeting, that person is not to be counted in the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxyholder entitled to vote at the meeting.

**11.5** **Requirement of Quorum**

No business, other than the election of a chair of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote is present at the commencement of the meeting, but such quorum need not be present throughout the meeting.

**11.6** **Lack of Quorum**

If, within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present:

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(1) in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

(2) in the case of any other meeting of shareholders, the meeting stands adjourned to the same day in the next week at the same time and place.

**11.7** **Lack of Quorum at Succeeding Meeting**

If, at the meeting to which the meeting referred to in Article 11.6(2) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the meeting shall be terminated.

**11.8** **Chair**

The following individual is entitled to preside as chair at a meeting of shareholders:

(1) the chair of the board, if any; or

(2) if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any.

**11.9** **Selection of Alternate Chair**

If, at any meeting of shareholders, there is no chair of the board or president willing to act as chair of the meeting or present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president have advised the secretary, if any, or any director present at the meeting, that they will not be present at the meeting, the directors present must choose a director, officer or corporate counsel to be chair of the meeting or if none of the above persons are present or if they decline to take the chair, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to chair the meeting.

**11.10** **Adjournments**

The chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn the meeting from time to time and from place to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

**11.11** **Notice of Adjourned Meeting**

It is not necessary to give any notice of an adjourned meeting of shareholders or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of the original meeting.

**11.12** **Decisions by Show of Hands or Poll**

Subject to the *Business Corporations Act*, every motion put to a vote at a meeting of shareholders will be decided on a show of hands unless a poll, before or on the declaration of the result of the vote by show of hands, is directed by the chair or demanded by any shareholder entitled to vote who is present in person or by proxy.

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**11.13** **Declaration of Result**

The chair of a meeting of shareholders must declare to the meeting the decision on every question in accordance with the result of the show of hands or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair that a resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.12, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

**11.14** **Motion Need Not be Seconded**

No motion proposed at a meeting of shareholders need be seconded unless the chair of the meeting rules otherwise, and the chair of any meeting of shareholders is entitled to propose or second a motion.

**11.15** **Casting Vote**

In case of an equality of votes, the chair of a meeting of shareholders, either on a show of hands or on a poll, does not have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.

**11.16** **Manner of Taking Poll**

Subject to Article 11.17, if a poll is duly demanded at a meeting of shareholders:

(1) the poll must be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the manner, at the time and at the place that the chair of the meeting directs;

(2) the result of the poll is deemed to be the decision of the meeting at which the poll is demanded; and

(3) the demand for the poll may be withdrawn by the person who demanded it.

**11.17** **Demand for Poll on Adjournment**

A poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately at the meeting.

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**11.18** **Chair Must Resolve Dispute**

In the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of the meeting must determine the dispute, and his or her determination made in good faith is final and conclusive.

**11.19** **Casting of Votes**

On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.

**11.20** **No Demand for Poll on Election of Chair**

No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.

**11.21** **Demand for Poll Not to Prevent Continuance of Meeting**

The demand for a poll at a meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded.

**11.22** **Retention of Ballots and Proxies**

The Company must, for at least three months after a meeting of shareholders, keep each ballot cast on a poll and each proxy voted at the meeting, and, during that period, make them available for inspection during normal business hours by any shareholder or proxy holder entitled to vote at the meeting. At the end of such three month period, the Company may destroy such ballots and proxies.

**12.** **VOTES OF SHAREHOLDERS**

**12.1** **Number of Votes by Shareholder or by Shares**

Subject to any special rights or restrictions attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3:

(1) on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to vote on the matter has one vote; and

(2) on a poll, every shareholder entitled to vote on the matter has one vote in respect of each share entitled to be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy.

**12.2** **Votes of Persons in Representative Capacity**

A person who is not a shareholder may vote at a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is a legal personal representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting.

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**12.3** **Votes by Joint Holders**

If there are joint shareholders registered in respect of any share:

(1) any one of the joint shareholders may vote at any meeting of shareholders, either personally or by proxy, in respect of the share as if that joint shareholder were solely entitled to it; or

(2) if more than one of the joint shareholders is present at any meeting of shareholders, personally or by proxy, and more than one of them votes in respect of that share, then only the vote of the joint shareholder present whose name stands first on the central securities register in respect of the share will be counted.

**12.4** **Legal Personal Representatives as Joint Shareholders**

Two or more legal personal representatives of a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders registered in respect of that share.

**12.5** **Representative of a Corporate Shareholder**

If a corporation, that is not a subsidiary of the Company, is a shareholder, that corporation may appoint a person to act as its representative at any meeting of shareholders of the Company, and:

(1) for that purpose, the instrument appointing a representative must be received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the registered office of the Company or at any other place specified, in the notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if no number of days is specified, two business days before the day set for the holding of the meeting or any adjourned meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by the chair of the meeting at the meeting or adjourned meeting or by a person designated by the chair of the meeting or adjourned meeting;

(2) if a representative is appointed under this Article 12.5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representative is entitled to exercise in respect of and at that meeting the same rights on behalf of the corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual, including, without limitation, the right to appoint a proxy holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the representative, if present at the meeting, is to be counted for the purpose of forming a quorum and is deemed to be a shareholder present in person at the meeting.

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Evidence of the appointment of any such representative may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages. Notwithstanding the foregoing, a corporation that is a shareholder may appoint a proxy holder.

**12.6** **Proxy Provisions Do Not Apply to All Companies**

Articles 12.7 to 12.15 do not apply to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.

**12.7** **Appointment of Proxy Holders**

Every shareholder of the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders may, by proxy, appoint up to two proxy holders to attend and act at the meeting in the manner, to the extent and with the powers conferred by the proxy.

**12.8** **Alternate Proxy Holders**

A shareholder may appoint one or more alternate proxy holders to act in the place of an absent proxy holder.

**12.9** **When Proxy Holder Need Not Be Shareholder**

A person must not be appointed as a proxy holder unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxy holder if:

(1) the person appointing the proxy holder is a corporation or a representative of a corporation appointed under Article 12.5;

(2) the Company has at the time of the meeting for which the proxy holder is to be appointed only one shareholder entitled to vote at the meeting; or

(3) the shareholders present in person or by proxy at and entitled to vote at the meeting for which the proxy holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting.

**12.10** **Deposit of Proxy**

A proxy for a meeting of shareholders must:

(1) be received at the registered office of the Company or at any other place specified, in the notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days is specified, two business days before the day set for the holding of the meeting or any adjourned meeting; or

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(2) unless the notice provides otherwise, be received, at the meeting or any adjourned meeting, by the chair of the meeting or any adjourned meeting or by a person designated by the chair of the meeting or adjourned meeting.

A proxy may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

**12.11** **Validity of Proxy Vote**

A vote given in accordance with the terms of a proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or revocation is received:

(1) at the registered office of the Company, at any time up to and including the last business day before the day set for the holding of the meeting or any adjourned meeting at which the proxy is to be used; or

(2) at the meeting or any adjourned meeting by the chair of the meeting or adjourned meeting, before any vote in respect of which the proxy has been given or has been taken.

**12.12** **Form of Proxy**

A proxy, whether for a specified meeting or otherwise, must be either in the following form or in any other form approved by the directors or the chair of the meeting:

*[name of company]*<br>(the "Company")

The undersigned, being a shareholder of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder for the undersigned to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and at any adjournment of that meeting.

Number of shares in respect of which this proxy is given (if no number is specified, then this proxy is given in respect of all shares registered in the name of the undersigned):

___________________________________________<br>Signed [month, day, year]

___________________________________________<br>[Signature of shareholder]

___________________________________________<br>[Name of shareholder-printed]

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**12.13** **Revocation of Proxy**

Subject to Article 12.14, every proxy may be revoked by an instrument in writing that is received:

(1) at the registered office of the Company at any time up to and including the last business day before the day set for the holding of the meeting or any adjourned meeting at which the proxy is to be used; or

(2) at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting, before any vote in respect of which the proxy has been given has been taken.

**12.14** **Revocation of Proxy Must Be Signed**

An instrument referred to in Article 12.13 must be signed as follows:

(1) if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed by the shareholder or his or her legal personal representative or trustee in bankruptcy;

(2) if the shareholder for whom the proxy holder is appointed is a corporation, the instrument must be signed by the corporation or by a representative appointed for the corporation under Article 12.5.

**12.15** **Production of Evidence of Authority to Vote**

The chair of any meeting of shareholders may, but need not, inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote.

**13.** **DIRECTORS**

**13.1** **First Directors; Number of Directors**

The first directors are the persons designated as directors of the Company in the Notice of Articles that applies to the Company when it is recognized under the *Business Corporations Act*. The number of directors, excluding additional directors appointed under Article 14.8, is set at:

(1) subject to paragraphs (2) and (3), the number of directors that is equal to the number of the Company's first directors;

(2) if the Company is a public company, the greater of three and the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of directors elected by ordinary resolution (whether or not previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of directors set under Article 14.4;

(3) if the Company is not a public company, the most recently set of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of directors elected by ordinary resolution (whether or not previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of directors set under Article 14.4.

**13.2** **Change in Number of Directors**

If the number of directors is set under Articles 13.1(2)(a) or 13.1(3)(a):

(1) the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors up to that number;

(2) if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of directors up to that number contemporaneously with the setting of that number, then the directors, subject to Article 14.8, may appoint, or the shareholders may elect or appoint, directors to fill those vacancies.

**13.3** **Directors' Acts Valid Despite Vacancy**

An act or proceeding of the directors is not invalid merely because fewer than the number of directors set or otherwise required under these Articles is in office.

**13.4** **Qualifications of Directors**

A director is not required to hold a share in the capital of the Company as qualification for his or her office but must be qualified as required by the *Business Corporations Act* to become, act or continue to act as a director.

**13.5** **Remuneration of Directors**

The directors are entitled to the remuneration for acting as directors, if any, as the directors may from time to time determine. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to any officer or employee of the Company as such, who is also a director.

**13.6** **Reimbursement of Expenses of Directors**

The Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company.

**13.7** **Special Remuneration for Directors**

If any director performs any professional or other services for the Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise specially occupied in or about the Company's business, he or she may be paid remuneration fixed by the directors, or, at the option of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive.

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**13.8** **Gratuity, Pension or Allowance on Retirement of Director**

Unless otherwise determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director or to his or her spouse or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

**14.** **ELECTION AND REMOVAL OF DIRECTORS**

**14.1** **Election at Annual General Meeting**

At every annual general meeting and in every unanimous resolution contemplated by Article 10.2:

(1) the shareholders entitled to vote at the annual general meeting for the election of directors must elect, or in the unanimous resolution appoint, a board of directors consisting of the number of directors for the time being set under these Articles; and

(2) those directors whose term of office expires at the annual general meeting cease to hold office immediately before the election or appointment of directors under paragraph (1), but are eligible for re-election or re-appointment.

**14.2** **Consent to be a Director**

No election, appointment or designation of an individual as a director is valid unless:

(1) that individual consents to be a director in the manner provided for in the *Business Corporations Act*;

(2) that individual is elected or appointed at a meeting at which the individual is present and the individual does not refuse, at the meeting, to be a director; or

(3) with respect to first directors, the designation is otherwise valid under the *Business Corporations Act*.

**14.3** **Failure to Elect or Appoint Directors**

If:

(1) the Company fails to hold an annual general meeting, and all the shareholders who are entitled to vote at an annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the annual general meeting is required to be held under the *Business Corporations Act*; or

(2) the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by Article 10.2, to elect or appoint any directors;

then each director then in office continues to hold office until the earlier of:

(3) when his or her successor is elected or appointed; and

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(4) when he or she otherwise ceases to hold office under the *Business Corporations Act* or these Articles.

**14.4** **Places of Retiring Directors Not Filled**

If, at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, those retiring directors who are not re-elected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these Articles until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the number of directors for the time being set pursuant to these Articles, the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.

**14.5** **Directors May Fill Casual Vacancies**

Any casual vacancy occurring in the board of directors may be filled by the directors.

**14.6** **Remaining Directors' Power to Act**

The directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the directors may only act for the purpose of appointing directors up to that number or of calling a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the *Business Corporations Act*, for any other purpose.

**14.7** **Shareholders May Fill Vacancies**

If the Company has no directors or fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the shareholders may elect or appoint directors to fill any vacancies on the board of directors.

**14.8** **Additional Directors**

Notwithstanding Articles 13.1 and 13.2, between annual general meetings or unanimous resolutions contemplated by Article 10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed:

(1) one-third of the number of first directors, if, at the time of the appointments, one or more of the first directors have not yet completed their first term of office; or

(2) in any other case, one-third of the number of the current directors who were elected or appointed as directors other than under this Article 14.8.

Any director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(1), but is eligible for re-election or re-appointment.

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**14.9** **Ceasing to be a Director**

A director ceases to be a director when:

(1) the term of office of the director expires;

(2) the director dies;

(3) the director resigns as a director by notice in writing provided to the Company or a lawyer for the Company; or

(4) the director is removed from office pursuant to Articles 14.10 or 14.11.

**14.10** **Removal of Director by Shareholders**

The Company may remove any director before the expiration of his or her term of office by special resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy.

**14.11** **Removal of Director by Directors**

The directors may remove any director before the expiration of his or her term of office if the director is convicted of an indictable offence, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint a director to fill the resulting vacancy.

**15.** **ALTERNATE DIRECTORS**

**15.1** **Appointment of Alternate Director**

Any director (an "appointor") may by notice in writing received by the Company appoint any person (an "appointee") who is qualified to act as a director to be his or her alternate to act in his or her place at meetings of the directors or committees of the directors at which the appointor is not present unless (in the case of an appointee who is not a director) the directors have reasonably disapproved the appointment of such person as an alternate director and have given notice to that effect to his or her appointor within a reasonable time after the notice of appointment is received by the Company.

**15.2** **Notice of Meetings**

Every alternate director so appointed is entitled to notice of meetings of the directors and of committees of the directors of which his or her appointor is a member and to attend and vote as a director at any such meetings at which his or her appointor is not present.

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**15.3** **Alternate for More Than One Director Attending Meetings**

A person may be appointed as an alternate director by more than one director, and an alternate director:

(1) will be counted in determining the quorum for a meeting of directors once for each of his or her appointors and, in the case of an appointee who is also a director, once more in that capacity;

(2) has a separate vote at a meeting of directors for each of his or her appointors and, in the case of an appointee who is also a director, an additional vote in that capacity;

(3) will be counted in determining the quorum for a meeting of a committee of directors once for each of his or her appointors who is a member of that committee and, in the case of an appointee who is also a member of that committee as a director, once more in that capacity; and

(4) has a separate vote at a meeting of a committee of directors for each of his or her appointors who is a member of that committee and, in the case of an appointee who is also a member of that committee as a director, an additional vote in that capacity.

**15.4** **Consent Resolutions**

Every alternate director, if authorized by the notice appointing him or her, may sign in place of his or her appointor any resolutions to be consented to in writing.

**15.5** **Alternate Director Not an Agent**

Every alternate director is deemed not to be the agent of his or her appointor.

**15.6** **Revocation of Appointment of Alternate Director**

An appointor may at any time, by notice in writing received by the Company, revoke the appointment of an alternate director appointed by him or her.

**15.7** **Ceasing to be an Alternate Director**

The appointment of an alternate director ceases when:

(1) his or her appointor ceases to be a director and is not promptly re-elected or re-appointed;

(2) the alternate director dies;

(3) the alternate director resigns as an alternate director by notice in writing provided to the Company or a lawyer for the Company;

(4) the alternate director ceases to be qualified to act as a director; or

(5) his or her appointor revokes the appointment of the alternate director.

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**15.8** **Remuneration and Expenses of Alternate Director**

The Company may reimburse an alternate director for the reasonable expenses that would be properly reimbursed if he or she were a director, and the alternate director is entitled to receive from the Company such proportion, if any, of the remuneration otherwise payable to the appointor as the appointor may from time to time direct.

**16.** **POWERS AND DUTIES OF DIRECTORS**

**16.1** **Powers of Management**

The directors must, subject to the *Business Corporations Act* and these Articles, manage or supervise the management of the business and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the *Business Corporations Act* or by these Articles, required to be exercised by the shareholders of the Company.

**16.2** **Appointment of Attorney of Company**

The directors may from time to time, by power of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies in, any committee of the directors, to appoint or remove officers appointed by the directors and to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such provisions for the protection or convenience of persons dealing with such attorney as the directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers, authorities and discretions for the time being vested in him or her.

**17.** **INTERESTS OF DIRECTORS AND OFFICERS**

**17.1** **Obligation to Account for Profits**

A director or senior officer who holds a disclosable interest (as that term is used in the *Business Corporations Act*) in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as a result of the contract or transaction only if and to the extent provided in the *Business Corporations Act*.

**17.2** **Restrictions on Voting by Reason of Interest**

A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors' resolution to approve that contract or transaction, unless all the directors have a disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution.

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**17.3** **Interested Director Counted in Quorum**

A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at the meeting whether or not the director votes on any or all of the resolutions considered at the meeting.

**17.4** **Disclosure of Conflict of Interest or Property**

A director or senior officer who holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual's duty or interest as a director or senior officer, must disclose the nature and extent of the conflict as required by the *Business Corporations Act*.

**17.5** **Director Holding Other Office in the Company**

A director may hold any office or place of profit with the Company, other than the office of auditor of the Company, in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine.

**17.6** **No Disqualification**

No director or intended director is disqualified by his or her office from contracting with the Company either with regard to the holding of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the Company in which a director is in any way interested is liable to be voided for that reason.

**17.7** **Professional Services by Director or Officer**

Subject to the *Business Corporations Act*, a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such person is entitled to remuneration for professional services as if that director or officer were not a director or officer.

**17.8** **Director or Officer in Other Corporations**

A director or officer may be or become a director, officer or employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and, subject to the *Business Corporations Act*, the director or officer is not accountable to the Company for any remuneration or other benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person.

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**18.** **PROCEEDINGS OF DIRECTORS**

**18.1** **Meetings of Directors**

The directors may meet together for the conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from time to time determine.

**18.2** **Voting at Meetings**

Questions arising at any meeting of directors are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote.

**18.3** **Chair of Meetings**

The following individual is entitled to preside as chair at a meeting of directors:

(1) the chair of the board, if any;

(2) in the absence of the chair of the board or if designated by the chair, the president, a director or other officer; or

(3) any other director or officer chosen by the directors if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) neither the chair of the board nor the president is present at the meeting within 15 minutes after the time set for holding the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither the chair of the board nor the president is willing to chair the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the chair of the board and the president have advised the secretary, if any, or any other director, that they will not be present at the meeting.

**18.4** **Meetings by Telephone or Other Communications Medium**

A director may participate in a meeting of the directors or of any committee of the directors:

(1) in person;

(2) by telephone; or

(3) with the consent of all directors who wish to participate in the meeting, by other communications medium;

if all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other. A director who participates in a meeting in a manner contemplated by this Article 18.4 is deemed for all purposes of the *Business Corporations Act* and these Articles to be present at the meeting and to have agreed to participate in that manner.

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**18.5** **Calling of Meetings**

A director may, and the secretary or an assistant secretary of the Company, if any, on the request of a director must, call a meeting of the directors at any time.

**18.6** **Notice of Meetings**

Other than for meetings held at regular intervals as determined by the directors pursuant to Article 18.1, reasonable notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors and the alternate directors by any method set out in Article 24.1 or orally or by telephone.

**18.7** **When Notice Not Required**

It is not necessary to give notice of a meeting of the directors to a director or an alternate director if:

(1) the meeting is to be held immediately following a meeting of shareholders at which that director was elected or appointed, or is the meeting of the directors at which that director is appointed; or

(2) the director or alternate director, as the case may be, has waived notice of the meeting.

**18.8** **Meeting Valid Despite Failure to Give Notice**

The accidental omission to give notice of any meeting of directors to, or the non-receipt of any notice by, any director or alternate director, does not invalidate any proceedings at that meeting.

**18.9** **Waiver of Notice of Meetings**

Any director or alternate director may send to the Company a document signed by him or her waiving notice of any past, present or future meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need be given to that director and, unless the director otherwise requires by notice in writing to the Company, to his or her alternate director, and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given to such director or alternate director. Attendance of a director or alternate director at a meeting of directors is a waiver of notice of the meeting unless that director or alternate director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

**18.10** **Quorum**

The quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is deemed to be set at a majority of directors or, if the number of directors is set at one, is deemed to be set at one director, and that director may constitute a meeting.

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**18.11** **Validity of Acts Where Appointment Defective**

Subject to the *Business Corporations Act*, an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification of that director or officer.

**18.12** **Consent Resolutions in Writing**

A resolution of the directors or of any committee of the directors may be passed without a meeting:

(1) in all cases, if each of the directors entitled to vote on the resolution consents to it in writing; or

(2) in the case of a resolution to approve a contract or transaction in respect of which a director has disclosed that he or she has or may have a disclosable interest, if each of the other directors who have not made such a disclosure consents in writing to the resolution.

A consent in writing under this Article may be by signed document, fax, e-mail or any other method of transmitting legibly recorded messages. A consent in writing may be in two or more counterparts which together are deemed to constitute one consent in writing. A resolution of the directors or of any committee of the directors passed in accordance with this Article 18.12 is effective on the date stated in the consent in writing or on the latest date stated on any counterpart and is deemed to be a proceeding at a meeting of directors or of the committee of the directors and to be as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors that satisfies all the requirements of the *Business Corporations Act* and all the requirements of these Articles relating to meetings of the directors or of a committee of the directors.

**19.** **EXECUTIVE AND OTHER COMMITTEES**

**19.1** **Appointment and Powers of Executive Committee**

The directors may, by resolution, appoint an executive committee consisting of the director or directors that they consider appropriate, and this committee has, during the intervals between meetings of the board of directors, all of the directors' powers, except:

(1) the power to fill vacancies in the board of directors;

(2) the power to remove a director;

(3) the power to change the membership of, or fill vacancies in, any committee of the directors; and

(4) such other powers, if any, as may be set out in the resolution or any subsequent directors' resolution.

**19.2** **Appointment and Powers of Other Committees**

The directors may, by resolution:

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(1) appoint one or more committees (other than the executive committee) consisting of the director or directors that they consider appropriate;

(2) delegate to a committee appointed under paragraph (1) any of the directors' powers, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the power to fill vacancies in the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the power to change the membership of, or fill vacancies in, any committee of the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the power to appoint or remove officers appointed by the directors; and

(3) make any delegation referred to in paragraph (2) subject to the conditions set out in the resolution or any subsequent directors' resolution.

**19.3** **Obligations of Committees**

Any committee appointed under Articles 19.1 or 19.2, in the exercise of the powers delegated to it, must:

(1) conform to any rules that may from time to time be imposed on it by the directors; and

(2) report every act or thing done in exercise of those powers at such times and in such manner and form as the directors may require.

**19.4** **Powers of Board**

The directors may, at any time, with respect to a committee appointed under Articles 19.1 or 19.2:

(1) revoke or alter the authority given to the committee, or override a decision made by the committee, except as to acts done before such revocation, alteration or overriding;

(2) terminate the appointment of, or change the membership of, the committee; and

(3) fill vacancies in the committee.

**19.5** **Committee Meetings**

Subject to Article 19.3(1) and unless the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee appointed under Articles 19.1 or 19.2:

(1) the committee may meet and adjourn as it thinks proper;

(2) the committee may elect a chair of its meetings but, if no chair of a meeting is elected, or if at a meeting the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who are members of the committee may choose one of their number to chair the meeting;

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(3) a majority of the members of the committee constitutes a quorum of the committee; and

(4) questions arising at any meeting of the committee are determined by a majority of votes of the members present, and in case of an equality of votes, the chair of the meeting does not have a second or casting vote.

**20.** **OFFICERS**

**20.1** **Directors May Appoint Officers**

The directors may, from time to time, appoint such officers, if any, as the directors determine and the directors may, at any time, terminate any such appointment.

**20.2** **Functions, Duties and Powers of Officers**

The directors may, for each officer:

(1) determine the functions and duties of the officer;

(2) entrust to and confer on the officer any of the powers exercisable by the directors on such terms and conditions and with such restrictions as the directors think fit; and

(3) revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

**20.3** **Qualifications**

No officer may be appointed unless that officer is qualified in accordance with the *Business Corporations Act*. One person may hold more than one position as an officer of the Company. Any person appointed as the chair of the board or as the managing director must be a director. Any other officer need not be a director.

**20.4** **Remuneration and Terms of Appointment**

All appointments of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the directors thinks fit and are subject to termination at the pleasure of the directors, and an officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the Company, a pension or gratuity.

**21.** **INDEMNIFICATION**

**21.1** **Definitions**

In this Article 21:

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(1) "eligible penalty" means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding;

(2) "eligible proceeding" means a legal proceeding or investigative action, whether current, threatened, pending or completed, in which a director, former director or alternate director of the Company (an "eligible party") or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director or alternate director of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is or may be joined as a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding;

(3) "expenses" has the meaning set out in the *Business Corporations Act*.

**21.2** **Mandatory Indemnification of Eligible Parties**

Subject to the *Business Corporations Act*, the Company must indemnify a director, former director or alternate director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director and alternate director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 21.2.

**21.3** **Indemnification**

Subject to any restrictions in the *Business Corporations Act* and these Articles*,* the Company may indemnify any person.

**21.4** **Non-Compliance with** ***Business Corporations Act***

The failure of a director, alternate director or officer of the Company to comply with the *Business Corporations Act* or these Articles or, if applicable, any former *Companies Act* or former Articles, does not invalidate any indemnity to which he or she is entitled under this Part.

**21.5** **Company May Purchase Insurance**

The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who:

(1) is or was a director, alternate director, officer, employee or agent of the Company;

(2) is or was a director, alternate director, officer, employee or agent of a corporation at a time when the corporation is or was an affiliate of the Company;

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(3) at the request of the Company, is or was a director, alternate director, officer, employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity; or

(4) at the request of the Company, holds or held a position equivalent to that of a director, alternate director or officer of a partnership, trust, joint venture or other unincorporated entity;

against any liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such equivalent position.

**22.** **DIVIDENDS**

**22.1** **Payment of Dividends Subject to Special Rights**

The provisions of this Article 22 are subject to the rights, if any, of shareholders holding shares with special rights as to dividends.

**22.2** **Declaration of Dividends**

Subject to the *Business Corporations Act*, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable.

**22.3** **No Notice Required**

The directors need not give notice to any shareholder of any declaration under Article 22.2.

**22.4** **Record Date**

The directors may set a date as the record date for the purpose of determining shareholders entitled to receive payment of a dividend. The record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the directors pass the resolution declaring the dividend.

**22.5** **Manner of Paying Dividend**

A resolution declaring a dividend may direct payment of the dividend wholly or partly in money or by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities of the Company or any other corporation, or in any one or more of those ways.

**22.6** **Settlement of Difficulties**

If any difficulty arises in regard to a distribution under Article 22.5, the directors may settle the difficulty as they deem advisable, and, in particular, may:

(1) set the value for distribution of specific assets;

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(2) determine that money in substitution for all or any part of the specific assets to which any shareholders are entitled may be paid to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and

(3) vest any such specific assets in trustees for the persons entitled to the dividend.

**22.7** **When Dividend Payable**

Any dividend may be made payable on such date as is fixed by the directors.

**22.8** **Dividends to be Paid in Accordance with Number of Shares**

All dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held.

**22.9** **Receipt by Joint Shareholders**

If several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share.

**22.10** **Dividend Bears No Interest**

No dividend bears interest against the Company.

**22.11** **Fractional Dividends**

If a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend.

**22.12** **Payment of Dividends**

Any dividend or other distribution payable in money in respect of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed to the registered address of the shareholder, or in the case of joint shareholders, to the registered address of the joint shareholder who is first named on the central securities register, or to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the amount of the tax required by law to be deducted), discharge all liability for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing authority.

**22.13** **Capitalization of Retained Earnings or Surplus**

Notwithstanding anything contained in these Articles, the directors may from time to time capitalize any retained earnings or surplus of the Company and may from time to time issue, as fully paid, shares or any bonds, debentures or other securities of the Company as a dividend representing the retained earnings or surplus so capitalized or any part thereof.

------

**23.** **ACCOUNTING RECORDS AND AUDITORS**

**23.1** **Recording of Financial Affairs**

The directors must cause adequate accounting records to be kept to record properly the financial affairs and condition of the Company and to comply with the *Business Corporations Act*.

**23.2** **Inspection of Accounting Records**

Unless the directors determine otherwise, or unless otherwise determined by ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the Company.

**23.3** **Remuneration of Auditors**

The directors may set the remuneration of the auditors. If the directors so decide, the remuneration of the auditors will be determined by the shareholders.

**24.** **NOTICES**

**24.1** **Method of Giving Notice**

Unless the *Business Corporations Act* or these Articles provides otherwise, a notice, statement, report, record, communication document or other information (for the purposes of this Article 24, a "record") required or permitted by the *Business Corporations Act* or these Articles to be sent by or to a person may be sent, delivered, served, or any other word of similar import, by any one of the following methods:

(1) mail addressed to the person at the applicable address for that person as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for a record mailed to a shareholder, the shareholder's registered address (whether with the Company or its transfer agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for a record mailed to a director or officer, the prescribed address for mailing shown for the director or officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records of that class; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the mailing address of the intended recipient;

(2) delivery at the applicable address for that person as follows, addressed to the person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for a record delivered to a shareholder, the shareholder's registered address (whether with the Company or its transfer agent) ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for a record delivered to a director or officer, the prescribed address for delivery shown for the director or officer in the records kept by the Company or the delivery address provided by the recipient for the sending of that record or records of that class; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the delivery address of the intended recipient;

(3) sending the record by facsimile to the facsimile (fax) number provided by the intended recipient for the sending of that record or records of that class;

(4) sending the record by email to the email address provided by the intended recipient for the sending of that record or records of that class;

(5) sending by any other forms of representation of information or of concepts fixed in any medium for the sending of that electronic, optical or other similar means that can be read or received by a person by any means;

(6) making the record available for public electronic access in accordance with the procedures referred to as "notice-and-access" under National Instrument 54-101 and National Instrument 51-102, as applicable, of the Canadian Securities Administrators, or in accordance with any similar electronic delivery or access method permitted by applicable securities legislation from time to time; or

(7) physical delivery to the intended recipient.

**24.2** **Deemed Receipt**

A notice, statement, report or other record that is:

(1) mailed to a person by ordinary mail to the applicable address for that person referred to in Article 24.1 is deemed to be received by the person to whom it was mailed on the fifth day (Saturdays, Sundays and holidays excepted) following the date of mailing;

(2) faxed to a person to the fax number provided by that person referred to in Article 24.1 is deemed to be received by the person to whom it was faxed on the day it was faxed;

(3) e-mailed to a person to the e-mail address provided by that person referred to in Article 24.1 is deemed to be received by the person to whom it was e-mailed on the date it was e-mailed;

(4) delivered to a person, is deemed to be received by the person to whom it was delivered on the date of personal delivery to that person;

(5) in the case of any other form of electronic, optical or other similar means of delivery, is deemed to be received by the person as of the date such record was sent by such means; and

(6) made available for public electronic access in accordance with the "notice-and-access" or similar delivery procedures referred to in Article 24.1 is deemed to be received by a person on the date that such record was made available for public electronic access.

------

**24.3** **Certificate of Sending**

A certificate signed by the secretary, if any, or other officer of the Company or of any other corporation acting in that capacity on behalf of the Company stating that a notice, statement, report or other record was sent in accordance with Article 24.1 is conclusive evidence of that fact.

**24.4** **Notice to Joint Shareholders**

A notice, statement, report or other record may be provided by the Company to the joint shareholders of a share by providing such record to the joint shareholder first named in the central securities register in respect of the share.

**24.5** **Notice to Legal Personal Representatives and Trustees**

A notice, statement, report or other record may be provided by the Company to the persons entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by:

(1) mailing the record, addressed to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by name, by the title of the legal personal representative of the deceased or incapacitated shareholder, by the title of trustee of the bankrupt shareholder or by any similar description; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled; or

(2) if an address referred to in paragraph (1)(b) has not been supplied to the Company, by giving the notice in a manner in which it might have been given if the death, bankruptcy or incapacity had not occurred.

**24.6** **Undelivered Notices**

If on two consecutive occasions, a notice, statement, report or other record is sent to a shareholder pursuant to Article 24.1 and on each of those occasions any such record is returned because the shareholder cannot be located, the Company shall not be required to send any further records to the shareholder until the shareholder informs the Company in writing of his or her new address.

**25.** **SEAL**

**25.1** **Who May Attest Seal**

Except as provided in Articles 25.2 and 25.3, the Company's seal, if any, must not be impressed on any record except when that impression is attested by the signatures of:

(1) any two directors;

(2) any officer, together with any director;

(3) if the Company only has one director, that director; or

------

(4) any one or more directors or officers or persons as may be determined by the directors.

**25.2** **Sealing Copies**

For the purpose of certifying under seal a certificate of incumbency of the directors or officers of the Company or a true copy of any resolution or other document, despite Article 25.1, the impression of the seal may be attested by the signature of any director or officer or the signature of any other person as may be determined by the directors.

**25.3** **Mechanical Reproduction of Seal**

The directors may authorize the seal to be impressed by third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates or bonds, debentures or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance with the *Business Corporations Act* or these Articles, printed or otherwise mechanically reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificates or bonds, debentures or other securities one or more unmounted dies reproducing the seal and such persons as are authorized under Article 25.1 to attest the Company's seal may in writing authorize such person to cause the seal to be impressed on such definitive or interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures or other securities to which the seal has been so impressed are for all purposes deemed to be under and to bear the seal impressed on them.

**26.** **PROHIBITIONS**

**26.1** **Definitions**

In this Article 26:

(1) "designated security" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a voting security of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a security of the Company that is not a debt security and that carries a residual right to participate in the earnings of the Company or, on the liquidation or winding up of the Company, in its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a security of the Company convertible, directly or indirectly, into a security described in paragraph (a) or (b);

(2) "security" has the meaning assigned in the *Securities Act* (British Columbia);

(3) "voting security" means a security of the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is not a debt security, and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) carries a voting right either under all circumstances or under some circumstances that have occurred and are continuing.

**26.2** **Application**

Article 26.3 does not apply to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.

**26.3** **Consent Required for Transfer of Shares or Designated Securities**

No share or designated security may be sold, transferred or otherwise disposed of without the consent of the directors and the directors are not required to give any reason for refusing to consent to any such sale, transfer or other disposition.

*[Signature page follows]*

------

---

| |
|:---|
| **FULL NAME AND SIGNATURE OF DIRECTOR** |
| /s/ Marcel De Groot |
| **MARCEL DE GROOT** |

---

*[Signature Page to Amalco – Articles]*

------

## Exhibit 4.1

------

*EXECUTION COPY*

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.<br>REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].**

<br> **EQUINOX GOLD CORP.**

as Seller

**- and -**

**SANDBOX ROYALTIES CORP.**

**- and -**

**REGAL PARTNERS ROYALTIES A PTY LIMITED (ACN 633 203 433)**

as Purchasers

 **- and -**

**SANDBOX ROYALTIES CORP.**

as Administrative Agent

------

**<br>AMENDED AND RESTATED GOLD PURCHASE AGREEMENT<br>**

<br> **OCTOBER 31, 2023**

------

<u>**TABLE OF CONTENTS**</u>

---

| | |
|:---|:---|
| [ARTICLE 1 INTERPRETATION](#page_2) | [2](#page_2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.1 Definitions](#page_2) | [2](#page_2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.2 Statutory References](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.3 Interpretation](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.4 Construction](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.5 Days](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.6 Dollar Amounts](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.7 Schedules](#page_18) | [18](#page_18) |
| [ARTICLE 2 EFFECT OF AMENDED AND RESTATED AGREEMENT](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.1 Effect and Rights of Parties](#page_18) | [18](#page_18) |
| [ARTICLE 3 PURCHASE AND SALE OF REFINED GOLD](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.1 Gold Sale and Deliveries](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.2 General Delivery Terms and Obligations](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.3 Invoicing](#page_20) | [20](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.4 Purchase Price](#page_20) | [20](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.5 Payment](#page_20) | [20](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.6 Stream Buydown Option](#page_20) | [20](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.7 Annual Reconciliation](#page_22) | [22](#page_22) |
| [ARTICLE 4 ADVANCE PAYMENT](#page_22) | [22](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.1 Advance Payment](#page_22) | [22](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.2 Conditions Precedent in Favour of the Purchasers](#page_23) | [23](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.3 Satisfaction of the Advance Payment Funding Conditions](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.4 Financing Condition Precedent](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.5 Use of Advance Payment](#page_25) | [25](#page_25) |
| [ARTICLE 5 TERM](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.1 Term](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.2 Repayment of Uncredited Balance](#page_25) | [25](#page_25) |
| [ARTICLE 6 REPORTING; BOOKS AND RECORDS](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.1 Reporting Requirements](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.2 Books and Records](#page_27) | [27](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.3 Technical Data](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.4 Inspections](#page_29) | [29](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.5 Confidentiality](#page_29) | [29](#page_29) |
| [ARTICLE 7 COVENANTS](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.1 Conduct of Operations](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.2 Processing/Commingling](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.3 Preservation of Corporate Existence](#page_32) | [32](#page_32) |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.4 Owner of Project Assets](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.5 Insurance](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.6 Offtake Agreements](#page_34) | [34](#page_34) |
| [ARTICLE 8 TRANSFERS OF INTEREST](#page_35) | [35](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.1 Assignment of Agreement by the Seller](#page_35) | [35](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.2 Transfers by the Purchaser](#page_35) | [35](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.3 Restricted Persons](#page_36) | [36](#page_36) |
| [ARTICLE 9 REPRESENTATIONS AND WARRANTIES](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.1 Representations and Warranties of the Seller](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.2 Representations and Warranties of the Purchaser](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.3 Survival of Representations and Warranties](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.4 Knowledge](#page_36) | [36](#page_36) |
| [ARTICLE 10 DEFAULTS AND DISPUTES](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.1 Events of Default](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.2 Purchaser Remedies](#page_37) | [37](#page_37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.3 Indemnity](#page_38) | [38](#page_38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.4 Disputes](#page_39) | [39](#page_39) |
| [ARTICLE 11 ADDITIONAL PAYMENT TERMS](#page_39) | [39](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.1 Payments](#page_39) | [39](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.2 Taxes](#page_39) | [39](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.3 Refund of Gross-up](#page_40) | [40](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.4 Change in Tax Laws](#page_40) | [40](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.5 Interest](#page_41) | [41](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.6 Set Off](#page_41) | [41](#page_41) |
| [ARTICLE 12 THE PURCHASERS AND THE ADMINISTRATIVE AGENT](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.1 The Administrative Agent](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.2 Purchasers' Obligations Several; No Partnership](#page_42) | [42](#page_42) |
| [ARTICLE 13 GENERAL](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.1 Further Assurances](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.2 No Joint Venture](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.3 Treatment and Characterization](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.4 Governing Law](#page_42) | [42](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.5 Time](#page_43) | [43](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.6 Costs and Expenses](#page_43) | [43](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.7 Survival](#page_43) | [43](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.8 Invalidity](#page_43) | [43](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.9 Notices](#page_43) | [43](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.10 Press Releases](#page_45) | [45](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.11 Amendments](#page_46) | [46](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.12 Beneficiaries](#page_46) | [46](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.13 Entire Agreement](#page_46) | [46](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.14 Waivers](#page_46) | [46](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.15 Counterparts](#page_46) | [46](#page_46) |

---

------

*EXECUTION COPY*

**THIS AMENDED AND RESTATED GOLD PURCHASE AGREEMENT** is dated as of October 31, 2023

**BETWEEN:**

**EQUINOX GOLD CORP.**, a company existing under the laws of the Province of British Columbia,

(the "**Seller**")

**AND:**

**SANDBOX ROYALTIES CORP.**, a company existing under the laws of the Province of British Columbia,

("**Sandbox**")

**AND:**

**REGAL PARTNERS ROYALTIES A PTY LIMITED (ACN 633 203 433)**, a company existing under the laws of Australia,

("**Regal**")

**AND:**

**SANDBOX ROYALTIES CORP.**, a company existing under the laws of the Province of British Columbia.

(the "**Administrative Agent**")

**RECITALS:**

A. Sandbox and the Seller previously entered into a gold purchase agreement dated August 29, 2023 (the "**Initial Agreement**") pursuant to which the Seller agreed to sell to Sandbox and Sandbox agreed to purchase from the Seller, an amount of Refined Gold equal to the Payable Gold, all within the meaning, subject to, and in accordance with, the terms of the Initial Agreement.

B. Sandbox and the Seller have agreed to amend and restate the Initial Agreement, on and from the date hereof, to include Regal as a Purchaser and to provide for the Administrative Agent acting as Administrative Agent for the Purchasers, all subject to and in accordance with the terms set out in this Agreement.

------

C. Greenstone Gold Mines LP (the "**Owner**"), through its general partner, Greenstone Gold Mines GP Inc. (the "**General Partner**") owns a 100% interest in and to the Mining Properties, and is currently developing and constructing the Project.

D. The Seller is an indirect owner of 60% of the Owner and the Project.

E. In consideration for the payment of the Advance Payment by the Purchasers to the Seller in accordance with the terms of this Agreement, the Seller has agreed to sell to the Purchasers, and the Purchasers have agreed to purchase from the Seller, in accordance with each Purchaser's Applicable Percentage, an amount of Refined Gold equal to the Payable Gold, subject to and in accordance with the terms and conditions of this Agreement.

**NOW THEREFORE** in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties hereto, the Parties mutually agree as follows:

**ARTICLE 1**<br>**INTERPRETATION**

**1.1 Definitions**

For the purposes of this Agreement (including the recitals and schedules hereto), unless the context otherwise requires, the following terms shall have the respective meanings given to them, as set out below, and grammatical variations of such terms shall have corresponding meanings:

"**Administrative Agent**" means Sandbox or any successor Administrative Agent appointed pursuant to Schedule F.

"**ADRIBC**" means the ADR Institute of British Columbia.

"**Advance Payment**" has the meaning set out in Section 4.1(a).

"**Advance Payment Funding Conditions**" has the meaning set out in Section 4.2.

"**Affiliate**" means, in relation to any person, any other person which directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such first mentioned person.

"**Agreement**" means this amended and restated gold purchase agreement and all attached schedules, in each case as the same may be amended, restated, amended and restated, supplemented, modified or superseded from time to time in accordance with the terms hereof.

"**AML Laws**" means the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada), the USA Patriot Act and other applicable anti-money laundering, anti-terrorist financing, government sanction, financial record-keeping and "know your client" Applicable Laws, whether in Canada, the United States or, to the extent applicable to any Seller Group Member, elsewhere, including any regulations, guidelines or orders thereunder.

------

"**Annual Payable Gold**" has the meaning set out in Section 3.7(a).

"**Anti-Bribery Laws**" means the *Corruption of Foreign Public Officials Act* (Canada), the *Foreign Corrupt Practices Act* (United States), and any other anti-bribery, anti-corruption or public official conflict of interest law applicable to the Seller Group Members.

"**Applicable Laws**" means any international, federal, state, provincial, territorial, local or municipal law (including AML Laws and Anti-Bribery Laws), regulation, ordinance, code, order or other requirement or rule of law or the rules, policies, orders or regulations of any Governmental Authority or stock exchange, including any judicial or administrative interpretation thereof, applicable to a person or any of its properties, assets, business or operations.

"**Applicable Percentage**" means the applicable percentage, for purposes of this Agreement, assigned to each Purchaser from time to time, which, as of the Effective Date, shall be 70.0% in respect of Sandbox and 30.0% in respect of Regal.

"**Approvals**" means all authorizations, licences, permits (including mining and environmental permits), concessions, franchises, consents, orders, decrees, registrations, variances, plans (including any plan of operation) and other approvals required to be obtained from any person, including any federal, state, territorial or local government, agency, department, ministry, authority, tribunal, commission, official, court, stock exchange, or securities commission, together with any amendments, modifications or updates thereto.

"**Area of Interest**" means the area depicted in Schedule B.

"**Books and Records**" means the records, data, documentation, scientific and technical information, and other information relating to operations and activities with respect to the Mining Properties and the Mineral Processing Facility, including the progress of the mining and production of Minerals therefrom and the treatment, processing, milling, concentrating and transportation of Minerals and weight, moisture and assay certificates.

"**Business Day**" means any day other than a Saturday or Sunday or a day that is a statutory or bank holiday under the laws of the Province of British Columbia.

"**Buydown Delivery Rate**" means 1.35% of the Reference Gold (prior to any Offtaker Charges) for which one or more Offtaker Payments has occurred in a calendar month; provided that each time the Seller completes an exercise of the Buydown Option, the Buydown Delivery Rate shall be reduced by multiplying the then existing Buydown Delivery Rate by the difference between 1 and the Buydown Percentage.

"**Buydown Delivery Threshold**" means 67,500 ounces of Refined Gold, provided that the Buydown Delivery Threshold shall be reduced by:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Buydown Payable Gold each time the Seller delivers Refined Gold to the Purchasers under Sections 3.1, 3.2(a), and 3.7(a); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Buydown Gold Ounces each time the Seller delivers Refined Gold to the Purchasers under Section 3.6(d).

"**Buydown Dispute Notice**" has the meaning set out in Section 3.6(c).

"**Buydown Gold Ounces**" means an amount of Refined Gold determined by the following calculation:

A x B

Where:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; A | &nbsp;&nbsp; = | the Buydown Delivery Threshold |
| &nbsp;&nbsp; B | &nbsp;&nbsp; = | the proportion of the Buydown Delivery Threshold to be bought down, expressed as a percentage (the "**Buydown Percentage**") |

---

"**Buydown Monthly Minimum**" means 375 ounces of Refined Gold, provided that each time the Seller completes an exercise of the Buydown Option, the Buydown Monthly Minimum shall be reduced to the product of the then existing Buydown Monthly Minimum multiplied by the difference between 1 and the Buydown Percentage.

"**Buydown Option**" has the meaning set out in Section 3.6(a).

"**Buydown Option Notice**" has the meaning set out in Section 3.6(b).

"**Buydown Payable Gold**" means, for each calendar month commencing with the calendar month in which the Effective Date occurs until the expiry of the Term, the greater of (1) the Buydown Delivery Rate for that calendar month, and (2) the Buydown Monthly Minimum for that calendar month.

"**Buydown Percentage**" has the meaning set out in the defined term Buydown Gold Ounces.

"**Buydown Premium**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Gold Market Price on the trading day immediately prior to the date of a Buydown Option Notice is equal to or greater than $2,000, nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Gold Market Price on the trading day immediately prior to the date of a Buydown Option Notice is less than $2,000, an amount of Refined Gold determined by the following calculation:

[($2,000 / A) - 1] x B

Where:

A = the Gold Market Price on the trading day immediately prior to the date of a Buydown Option Notice <br> B = the Buydown Gold Ounces

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"**Change in Law**" has the meaning set out in Section 11.4(a).

"**Closing Date**" means the first Business Day after all of the Advance Payment Funding Conditions and the Financing Condition have been satisfied in full, or such other date as the Parties may agree.

"**Commingling Plan**" has the meaning set out in Section 7.2(a)(i).

"**Confidential Information**" has the meaning set out in Section 6.5(a).

"**control**" means, in respect of a person, the right, directly or indirectly, to direct or cause the direction of the management of the business or affairs of a person, whether by ownership of securities, by contract or otherwise; and "**controls**", "**controlling**", "**controlled by**" and "**under common control with**" have corresponding meanings.

"**Date of Delivery**" has the meaning set out in Section 3.2(c).

"**Delivery Rate**" means the No-Buydown Delivery Rate plus the Buydown Delivery Rate.

"**Designated Metal Accounts**" has the meaning set out in Section 3.2(c).

"**Disclosing Party**" has the meaning set out in Section 6.5(a).

"**Displacement**" has the meaning set out in Section 7.2(a)(iv).

"**Dispute**" means any and all claims, controversies, or disputes among the Parties arising out of or relating to the validity, construction, interpretation, meaning, performance, effect or breach of this Agreement or the rights and liabilities arising hereunder.

"**Effective Date**" means October 31, 2023.

"**Encumbrances**" means any mortgage, deed of trust, pledge, lien, hypothec, assignment by way of security, charge, collateral right, option, right of first refusal, right of first option, royalty or right pursuant to a royalty, security interest, trust arrangement in the nature of a security interest, conditional sale or other title retention agreement, equipment trust, hypothec, levy, execution, seizure, attachment, garnishment, restriction, patent or other reservation in minerals, preferential right or adverse claim constituting an interest in property, lease, sublease, easement, right-of-way, restrictive covenant, encroachment, work order or any other encumbrance of any nature, kind or character or any rights or privileges capable of becoming any of the foregoing.

"**Equinox Credit Agreement**" means the Third Amended and Restated Credit Agreement dated July 28, 2022 between Equinox Gold Corp., Solius Acquireco Inc., Leagold Mining Corporation, The Bank of Nova Scotia, BMO Capital Markets, ING Capital LLC and any other lenders parties thereto from time to time, as further amended, restated, amended and restated, modified or supplemented from time to time.

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"**Equity Securities**" means, with respect to any person, any and all shares, stock or units of, interests, participations or rights in, or other equivalents (however designated and whether voting and non-voting) of, such person's capital, whether outstanding on the date hereof or issued after the date hereof, including any interest in a partnership, limited partnership, limited liability company or other similar person and any beneficial interest in a trust, and any and all rights, warrants, debt securities, options or other rights exchangeable for or convertible into any of the foregoing.

"**Event of Default**" has the meaning set out in Section 10.1.

"**Excluded Taxes**" means, with respect to any person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Taxes imposed on or measured by the person's net income or capital and franchise taxes imposed on it (in lieu of or in addition to net income taxes), by any jurisdiction (or any political subdivision thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) under the laws of which the person is organized or is resident (as determined by application of the laws of that jurisdiction) otherwise than by reason of entering into, and the transactions contemplated under, this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in which its principal office is located, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with which the person has a connection otherwise than by reason of entering into, and the transactions contemplated under, this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any branch profits taxes or any similar tax imposed on the person by any jurisdiction in which the person is located, otherwise than by reason of entering into, and the transactions contemplated under, this Agreement.

"**Execution Date**" means the date of this Agreement, as first set forth above.

"**Federal Funds Rate**" means, for any day, the rate of interest per annum equal to (a) the weighted average (rounded upwards, if necessary, to the next 1/100th of one percent per annum) of the annual rates of interest on overnight Federal funds transactions with members of the Federal Reserve Board arranged by Federal funds brokers on such day, as published on the next succeeding Business Day by the Federal Reserve Bank of New York (or any successor thereto) or, (b) if such day is not a Business Day, such weighted average for the immediately preceding Business Day for which the same is published or, (c) if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100th of one percent per annum) of the quotations for such day on such transactions received by the Administrative Agent from three (3) Federal funds brokers of recognized standing selected by the Administrative Agent; provided that such rate shall in no case be lower than zero.

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"**Federal Reserve Board**" or "**Federal**" means the Board of Governors of the Federal Reserve System of the United States of America or any successor thereof.

"**Financing Condition**" has the meaning set out in Section 4.4(a).

"**General Partner**" has the meaning set out in the recitals of this Agreement.

"**Gold Cash Price**" means, in respect of each delivery of Refined Gold by the Seller to the Purchasers hereunder, 20% of the Gold Market Price on the Date of Delivery of such Refined Gold.

"**Gold Market Price**" means, with respect to any day, the afternoon (p.m.) per ounce LBMA Gold Price in U.S. dollars quoted by the LBMA (currently administered by the ICE Benchmark Administration) for Refined Gold on such day, or if such day is not a trading day, on the immediately preceding trading day; provided that, if for any reason, the LBMA is no longer in operation or the price of gold is not confirmed, acknowledged or quoted by the LBMA (currently administered by the ICE Benchmark Administration), the Gold Market Price shall be determined by reference to the price of Refined Gold in a manner endorsed by the LBMA, and failing that the Gold Market Price shall be determined by reference to the price of gold on another commercial exchange mutually acceptable to the Seller and the Administrative Agent, acting reasonably (and references to LBMA trading day in this agreement shall be adjusted accordingly).

"**Governmental Authority**" means any domestic or foreign federal, provincial, regional, state, municipal or other government, governmental department, agency, authority or body (whether administrative, legislative, executive or otherwise), court, tribunal, commission or commissioner, bureau, minister or ministry, board or agency, official or other regulatory authority, including any securities regulatory authorities or stock exchange.

"**Greenstone Project Joint Venture Agreement**" means the second amended and restated limited partnership agreement of Greenstone Gold Mines LP (formerly, TCP Limited Partnership) dated as of December 14, 2021 among Greenstone Gold Mines GP Inc., Premier Gold Mines Hardrock Inc. and OMF Fund II (Sc) Ltd., as the same may be further amended, restated, replaced, or superseded.

"**IFRS**" means the International Financial Reporting Standards adopted by the International Accounting Standards Board from time to time.

"**including**" or "**includes**" means including without limitation or includes without limitation.

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"**Initial Agreement**" has the meaning set out in the recitals of this Agreement.

"**Insolvency Event**" means, in relation to any person, any one or more of the following events or circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) proceedings are commenced for the winding-up, liquidation or dissolution of it, unless it in good faith actively and diligently contests such proceedings resulting in a dismissal or stay thereof within 90 days of the commencement of such proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a decree or order of a court of competent jurisdiction is entered adjudging it to be bankrupt or insolvent (unless vacated), or a petition seeking reorganization, arrangement or adjustment of or in respect of it is approved under Applicable Laws relating to bankruptcy, insolvency or relief of debtors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it makes an assignment for the benefit of its creditors, or petitions or applies to any court or tribunal for the appointment of a receiver or trustee for itself or any substantial part of its property, or commences for itself or acquiesces in or approves or has filed or commenced against it any proceeding under any bankruptcy (whether voluntary or involuntary), insolvency, reorganization, arrangement or readjustment of debt law or statute or any proceeding for the appointment of a receiver or trustee for itself or any substantial part of its assets or property, or has a liquidator, administrator, receiver, trustee, conservator or similar person appointed with respect to it or any substantial portion of its property or assets, unless any of the matters referred to in this clause (iii) are dismissed within 90 days of commencement of such proceeding or appointment as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a resolution is passed for the receivership, winding-up or liquidation of it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) anything analogous or having a similar effect to an event listed in paragraphs (i) to (iv) above occurs in respect of that person.

"**LBMA**" means the London Bullion Market Association.

"**LBMA Good Delivery Rules**" means the Good Delivery Rules for Gold and Silver Bars - Specifications for Good Delivery Bars and Application Procedures for Listing of the LBMA, as amended from time to time.

"**Losses**" means all fines, losses, damages, liabilities, obligations, deficiencies, costs and expenses (including all reasonable legal and other professional fees and disbursements, interest, penalties, judgment and other amounts paid in settlement of any claim, demand, action, suit, proceeding, assessment, judgement, settlement or compromise), including any Taxes payable in respect thereof and, in the case of the Purchasers, loss of profits, loss of revenue or losses attributable to the failure to deliver current or future required or expected deliveries of Refined Gold hereunder over the Term (not taking into account any early termination of this Agreement under Section 10.2(a)(ii)) (including any decline in value of any gold that is not delivered when due), in connection with or in respect of any breach or default of this Agreement by the Seller, but excluding any other special, indirect or consequential damages (including losses or damages outside of the Purchasers' business relationship with the Seller).

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"**Majority Purchasers**" at any time means the Purchaser whose Applicable Percentage at that time is equal to or greater than 67% or, if no single Purchaser's Applicable Percentage is equal to or greater than 67%, then such one or more Purchasers acting together who, at the relevant time, have an aggregate Applicable Percentage equal to or greater than 67%.

"**Material Adverse Effect**" means any event, occurrence, change or effect that, when taken together with all other events, occurrences, changes or effects, does or would reasonably be expected to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) materially limit, restrict or impair the ability of the Seller to perform its obligations under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cause any significant decrease to expected gold production from the Mining Properties,

provided that (i) changes to commodity prices, and (ii) changes in general political, economic or financial conditions, whether domestic or international, including changes or disruptions in securities or currency markets, shall not be a Material Adverse Effect or taken into account in determining whether there has been or will be a Material Adverse Effect.

"**Mineral Processing Facility**" means any mill or heap leaching facility, or other processing facility used to process ore from the Mining Properties, and at which Minerals are processed.

"**Minerals**" means any and all marketable metal bearing material in whatever form or state (including gold) that is mined, produced, extracted or otherwise recovered from the Mining Properties, including any such material derived from any processing or reprocessing of any tailings, waste rock or other waste products originally derived from the Mining Properties, and including ore and any other products resulting from the further milling, leaching, processing or other beneficiation of Minerals, including concentrates or doré bars.

"**Mining Properties**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the unpatented, leasehold and patented mining properties and other mining rights listed in Schedule A attached hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all unpatented, leasehold and patented mining properties, and any other forms of mineral tenure or other rights to minerals or mining rights, or rights to work or enter upon lands for the purpose of exploring for, developing or extracting minerals, whether contractual, statutory or otherwise, that are acquired or purchased by the Owner or any of its Affiliates from and after the Execution Date and are situated, in whole or in part, within the Area of Interest; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any amendments, relocations, adjustments, resurvey, additional locations, conversions of, or any renewal, amendment, other modification or extension, accession or succession to any Mining Properties or other forms of mineral tenure or other rights to minerals or mining rights, or rights to work or enter upon lands for the purpose of exploring for, developing or extracting minerals referenced in paragraphs (i) or (ii) above, whether created privately or through government action.

"**Monthly Minimum**" means the No-Buydown Monthly Minimum plus the Buydown Monthly Minimum.

"**Monthly Report**" means a written report, in relation to any calendar month, prepared by the Seller with respect to the Project and the Mining Properties, detailing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the types, tonnages and head grades of ore mined from the Mining Properties during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the types, tonnages and grades of ore processed from the Mining Properties during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) with respect to any Mineral Processing Facility, the types of product produced (i.e., concentrate or doré), tonnages and concentrate grades during such calendar month and the resulting recoveries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the number of ounces of gold contained in the product produced (i.e., doré or concentrate) during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the tonnes and grade of any product delivered or shipped offsite during such calendar month, including a summary of Offtaker Deliveries during such month showing, among other things, the dates of delivery, provisional gold quantities (prior to Offtaker Charges) and related Offtaker Payments and any final settlement adjustments made during such month including details of any Offtaker Charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) copies of all Offtaker Documentation and other Offtaker statements, invoices or receipts, in respect of Offtaker Deliveries during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Buydown Delivery Rate, the No-Buydown Delivery Rate, the Buydown Monthly Minimum and the No-Buydown Monthly Minimum for such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Buydown Delivery Threshold and the No-Buydown Delivery Threshold as at the end of each such calendar month;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Uncredited Balance on the last day of such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the stockpile of products mined from the Mining Properties (including tonnage and grade) situated at the Project or at another site; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) such other information in respect of gold mined, produced, extracted or otherwise recovered from the Mining Properties, as may be reasonably requested by the Administrative Agent (as directed by the Purchasers).

"**Neutral Auditor**" means an accounting firm of recognized national standing as agreed by the Seller and the Administrative Agent (as directed by the Majority Purchasers) or as may be appointed as Neutral Auditor in accordance with Section 3.6(c).

"**NI 43-101**" means National Instrument 43-101 - *Standards of Disclosure for Mineral Projects* of the Canadian Securities Administrators.

"**No-Buydown Delivery Rate**" means 0.45% of the Reference Gold (prior to any Offtaker Charges) for which one or more Offtaker Payments has occurred in a calendar month.

"**No-Buydown Delivery Threshold**" means 22,500 ounces of the Refined Gold, provided that the No Buydown Delivery Threshold shall be reduced by the No-Buydown Payable Gold each time the Seller delivers Refined Gold to the Purchasers under Sections 3.1, 3.2(a), and 3.7(a).

"**No-Buydown Monthly Minimum**" means 125 ounces of the Refined Gold.

"**No-Buydown Payable Gold**" means, for each calendar month commencing with the calendar month in which the Effective Date occurs until the expiry of the Term, the greater of (1) the No-Buydown Delivery Rate for that calendar month, and (2) the No-Buydown Monthly Minimum for that calendar month.

"**notice**" has the meaning set out in Section 13.9.

"**Offtake Agreement**" means any agreement entered into by the Owner or any of its Affiliates with an Offtaker that relates to: (i) the sale of Produced Gold to an Offtaker; (ii) the transfer of the entitlement to, or the benefit of, Produced Gold to an Offtaker; or (iii) the smelting, refining or other beneficiation of Produced Gold by an Offtaker for the benefit of the Owner or any of its Affiliates, as the same may be supplemented, amended, restated or superseded from time to time.

"**Offtaker**" means (i) any person other than an Affiliate of the Owner that purchases Produced Gold from the Owner or any of its Affiliates; (ii) any person that is the recipient of a transfer of the entitlement to, or benefit of, Produced Gold from the Owner or any of its Affiliates; or (iii) any person that takes delivery of Produced Gold for the purpose of smelting, refining or other beneficiation of such Produced Gold for the benefit of the Owner or any of its Affiliates.

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"**Offtaker Charges**" means any refining charges, treatment charges, penalties, insurance charges, transportation charges, settlement charges, financing charges or price participation charges, or other charges, metals losses, penalties or deductions that may be charged or levied by an Offtaker, regardless of whether such charges, penalties or deductions are expressed as a specific metal deduction, a percentage, a payment or otherwise.

"**Offtaker Delivery**" means the delivery of Produced Gold to an Offtaker or the transfer of the entitlement to or benefit of Produced Gold or to an Offtaker, which for greater certainty shall not include any deliveries of Produced Gold to persons subsequent to the first Offtaker acquiring such Produced Gold.

"**Offtaker Documentation**" means a copy of all documents, records and information received by the Owner or any of its Affiliates from an Offtaker to which an Offtaker Delivery and Offtaker Payment relates, including any rejection of Minerals, sampling/assay information, umpire reports (if any), invoices and other settlement documents.

"**Offtaker Payment**" means (i) with respect to (A) Produced Gold purchased by an Offtaker from the Owner or any of its Affiliates; or (B) Produced Gold for which the entitlement to, or benefit of which, is transferred to an Offtaker, the receipt by the Owner or any of its Affiliates of any cash payment or other consideration (including any gold credits) from the Offtaker in respect of any Produced Gold; and (ii) with respect to Produced Gold refined, smelted or otherwise beneficiated by an Offtaker on behalf of the Owner or any of its Affiliates, the receipt by the Owner or any of its Affiliates of any cash payment or Refined Gold in accordance with the applicable Offtake Agreement.

"**Other Minerals**" means ores or other minerals mined, produced, extracted or otherwise recovered from properties that are not one of or do not constitute part of the Mining Properties.

"**ounce**" means a troy ounce of 31.10 grams, metric, provided that if the measurement is 31.05 grams, metric or higher, then the measurement will be rounded up to the nearest troy ounce, and if the measurement is lower than 31.05 grams, metric, then the measurement will be rounded down to the nearest troy ounce.

"**Overdue Gold Ounces**" means the balance, from time to time, if any, of the number of ounces of Refined Gold that have not been delivered to the Purchasers when due in accordance with this Agreement.

"**Owner**" has the meaning set out in the recitals of this Agreement.

"**Original Purchasers**" means Sandbox and Regal.

"**Parties**" means the Administrative Agent, the Purchasers and the Seller, and "**Party**" means any of them.

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"**Payable Gold**" means, for each calendar month commencing with the calendar month in which the Effective Date occurs until the expiry of the Term, the greater of (1) the Delivery Rate for that calendar month, and (2) the Monthly Minimum for that calendar month.

"**Permitted Encumbrances**" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) inchoate or statutory liens for Taxes, assessments, rents or charges and other statutory liens for payments not at the time due or payable, or which are being contested in good faith through appropriate proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any reservations or exceptions contained in the documentation creating or resulting in the interests in the Mining Properties or original grants of rights underlying or related to the Mining Properties that do not materially detract from the value of the Mining Properties subject thereto and do not materially impair the Owner's or any Affiliate's ability to carry on its business or the Purchasers' rights and remedies under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) minor defects or discrepancies in the legal description or acreage of or associated with the Mining Properties or any adjoining properties which would be disclosed in an up-to-date survey and any registered or unregistered easements or rights-of-way, and registered restrictions or covenants that run with the land which do not materially detract from the value of, or materially impair the use of the Mining Properties for the purpose of conducting and carrying out mining operations thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) rights-of-way for, or reservations or rights of others for, sewers, water lines, gas lines, electric lines, oil permits, telegraph and telephone lines, and other similar utilities, and zoning by-laws, ordinances, surface access rights or other restrictions as to the use of the Mining Properties, which do not in the aggregate materially detract from the use of the Mining Properties for the purpose of conducting and carrying out mining operations thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) liens or other rights granted by the Owner or any of its Affiliates to secure performance of statutory obligations or regulatory requirements (including reclamation obligations and security given to a public utility or a Governmental Authority);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Encumbrances in favour of the lenders under the Equinox Credit Agreement securing the obligations of the Seller and any of its Affiliates under the Equinox Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Encumbrances in favour of Centerra Gold Inc. under the purchase agreement dated December 15, 2020 as amended with AuRico Canadian Royalties Holdings Inc. Premier Gold Mines Limited, Premier Gold Mines Hardrock Inc., the General Partner, Owner and OMF Fund II (Sc) Ltd.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any Encumbrance imposed by law and incurred in the ordinary course of business, including construction, builders', warehousemen's and mechanics' liens and other similar Encumbrances arising in the ordinary course of business, in each case for sums not yet due or being contested in good faith by appropriate proceedings and for which appropriate reserves in accordance with IFRS have been established to the extent required by IFRS;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Encumbrances as a result of any judgment or order rendered or claim filed against the Owner which is being contested in good faith by proper legal proceedings (and as to which any enforcement proceedings shall have been suspended by operation of law or stayed pending an appeal or other proceeding) and for which appropriate reserves in accordance with IFRS have been established to the extent required by IFRS;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any aboriginal, First Nations, indigenous or Indian land claims or other rights or privileges constituting or deriving from aboriginal title or any other aboriginal rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the exceptions and qualifications contained in section 44(1) of the *Land Titles Act* (Ontario) and the provisions of the Mining Act (Ontario); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all Encumbrances registered or recorded on title to any of the Mining Properties on the Effective Date.

"**person**" means and includes a Party, individuals, corporations, bodies corporate, limited or general partnerships, joint stock companies, limited liability corporations, joint ventures, associations, companies, trusts, banks, trust companies, government or any other type of organization, whether or not a legal entity.

"**Produced Gold**" means any and all gold in whatever form or state that is mined, produced, extracted or otherwise recovered from the Mining Properties, including any gold derived from any processing or reprocessing of any tailings, waste rock or other waste products originally derived from the Mining Properties, and including gold contained in any ore or other products resulting from the further milling, processing or other beneficiation of Minerals, including concentrates and doré bars.

"**Project**" means the Greenstone gold project situated in Geraldton, Ontario, approximately 275 km northeast of Thunder Bay, Ontario.

"**Project Assets**" means the Mining Properties, the Minerals, the Mineral Processing Facility and all other present and after-acquired real or personal property, used or acquired for use by the Owner or any of its Affiliates in connection with the development, construction, operation or expansion of the Project or the mining, production or extraction of the Minerals.

"**Purchase Price**" has the meaning set out in Section 3.4.

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"**Purchasers**" means, as of the Effective Date, Sandbox and Regal and includes any person who may become a Transferee from time to time in accordance with the terms of this Agreement, and "**Purchaser**" means any one of them.

"**Receiving Party**" has the meaning set out in Section 6.5(a).

"**Reference Gold**" means the Produced Gold contained in any Minerals contained in an Offtaker Delivery.

"**Refined Gold**" means marketable metal bearing material in the form of physical gold bars or coins refined to standards meeting or exceeding 995 parts per 1,000 fine gold and that otherwise meets the LBMA Good Delivery Rules.

"**Regal**" means Regal Partners Royalties A Pty Limited (ACN 633 203 433).

"**Reserves**" means proven and probable mineral reserves as defined and incorporated under NI 43-101.

"**Resources**" means indicated, inferred and measured mineral resources as defined and incorporated under NI 43-101.

"**Restricted Person**" means any person that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is named, identified, described on or included on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any publicly available lists maintained under the *Criminal Code* (Canada), the *Special Economic Measures Act* (Canada), the *United Nations Act* (Canada), the *Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law)*, or the *Freezing Assets of Corrupt Foreign Officials Act* (Canada), or under any regulations promulgated under any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the *Denied Persons List*, the *Entity List* or the *Unverified List*, compiled by the Bureau of Industry and Security, U.S. Department of Commerce;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the *List of Statutorily Debarred Parties* compiled by the U.S. Department of State;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the *Specially Designated Nationals and Blocked Persons List* compiled by the U.S. Office of Foreign Assets Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the annex to, or is otherwise subject to the provisions of, *U.S. Executive Order No. 13324*; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any publicly available lists maintained under any other Applicable Law of Canada or the United States relating to anti-terrorism or anti-money laundering;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is subject to trade restrictions under any United States governmental requirement, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the *International Emergency Economic Powers Act*, 50 U.S.C.; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the *Trading with the Enemy Act*, 50 U.S.C. App. 1 et seq.; or any other enabling governmental requirement or executive order relating thereto, including the *Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001*, Title III of Pub. L. 107-56; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is known to be an Affiliate of a person covered under sub-paragraphs (a) or (b).

"**Sandbox**" means Sandbox Royalties Corp.

"**SEDAR**" means the System for Electronic Document Analysis and Retrieval of the Canadian Securities Administrators.

"**Seller Group Members**" means (i) the Seller, and (ii) the following persons for so long as they are Affiliates of the Seller: Premier Gold Mines Hardrock Inc., the General Partner and the Owner, and any other person (now or hereafter formed or acquired) that holds or acquires directly or indirectly any interest in the Mining Properties, but excluding OMF Fund 11 (SC) Ltd. and any of its Affiliates.

"**subsidiary**" has the meaning set out in the *Business Corporations Act* (British Columbia).

"**Tax**" or "**Taxes**" means all taxes, assessments and other governmental charge, duties, and impositions, including any interest, penalties, tax instalment payments or other additions that may become payable in respect thereof, imposed by any federal, provincial, state or local government, or any agency or political subdivision of any such government, which taxes shall include all income or profits taxes (including federal, provincial, and state income taxes), resident and non-resident withholding taxes, sales and use taxes, branch profit taxes, ad valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business licence taxes, occupation taxes, real and personal property taxes, stamp taxes, environmental taxes, transfer taxes, net proceeds of mine taxes, land transfer taxes, capital taxes, extraordinary income taxes, surface area taxes, property taxes, asset transfer taxes, and other governmental charges, and other obligations of the same or of a similar nature to any of the foregoing.

"**Term**" has the meaning set out in Section 5.1.

"**Time of Delivery**" has the meaning set out in Section 3.2(b).

"**Transfer**" means to directly or indirectly sell, transfer, assign, convey, dispose or otherwise grant a right, title or interest, excluding any act of expropriation.

"**Transferee**" means a person who becomes a party to this Agreement as a Purchaser pursuant to Section 8.2.

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"**Uncredited Balance**" means, at any time and from time to time, the outstanding uncredited balance of the Advance Payment, until it is reduced to nil in accordance with Section 3.4(a).

**1.2 Statutory References**

Any reference in this Agreement to a statute or a regulation or rule promulgated under a statute or to any provision contained therein shall be a reference to the statute, regulation, rule or provision as may be amended, restated, re-enacted or replaced from time to time.

**1.3** Interpretation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Headings of Sections are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The terms "Agreement", "this Agreement", "the Agreement", "hereto", "hereof", "herein", "hereby", "hereunder" and similar expressions refer to this Agreement in its entirety and not to any particular provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) References to an "Article", "Section" or "Schedule" followed by a number or letter refer to the specified Article or Section of or Schedule to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) References to a Party or any person referenced in this Agreement (including any Seller Group Member) means the Party or the applicable person, and its successors or permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A reference to an agreement includes all schedules, exhibits and other appendices attached thereto and shall include all subsequent amendments and other modifications thereto.

**1.4** Construction

The Parties hereby agree that any rule of construction to the effect that any ambiguity is to be resolved against the drafting Party shall not be applicable in the interpretation of this Agreement.

**1.5** Days

In this Agreement, a period of days shall be deemed to begin on the first day after the event which began the period and to end at 5:00 p.m. (Vancouver time) on the last day of the period. If, however, the last day of the period does not fall on a Business Day, the period shall terminate at 5:00 p.m. (Vancouver time) on the next Business Day.

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**1.6** Dollar Amounts

Unless specified otherwise in this Agreement, all statements or references to dollar amounts in this Agreement are to United States of America dollars.

**1.7** Schedules

The following schedules are attached to and form part of this Agreement:

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| | | |
|:---|:---|:---|
| Schedule A | - | Mining Properties |
| Schedule B | - | Area of Interest |
| Schedule C | - | Representations and Warranties of the Seller |
| Schedule D | - | Representations and Warranties of the Purchasers |
| Schedule E | **-** | Corporate Organization of the Seller Group Members |
| Schedule F | **-** | The Administrative Agent |

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**ARTICLE 2**<br>**EFFECT OF AMENDED AND RESTATED AGREEMENT** 

**2.1** Effect and Rights of Parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On and from the date hereof, this Agreement amends and restates the Initial Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All rights, obligations and liabilities of Sandbox and the Seller from August 29, 2023 to the date hereof shall be governed by the Initial Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All rights, obligations and liabilities of the Parties from and after the date hereof shall be governed by this Agreement.

**ARTICLE 3**<br>**PURCHASE AND SALE OF REFINED GOLD** 

**3.1** Gold Sale and Deliveries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to and in accordance with the terms of this Agreement, from and after the Effective Date and until the expiry of the Term, the Seller hereby agrees to sell and deliver to the Purchasers and the Purchasers hereby agree, in accordance with each Purchaser's Applicable Percentage, to purchase from the Seller an amount of Refined Gold equal to the Payable Gold, free and clear of all Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Payable Gold shall not be reduced for, and the Purchasers shall not be responsible for, any Offtaker Charges, all of which shall be for the account of the Seller.

**3.2** General Delivery Terms and Obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing with the calendar month in which the Effective Date occurs, and for each calendar month thereafter until the expiry of the Term, within 15 days of the end of each such calendar month, the Seller shall sell and deliver Refined Gold to the Purchasers in accordance with each Purchaser's Applicable Percentage in an amount equal to the Payable Gold for and in respect of each such calendar month in accordance with this Section 3.2.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall not be required to sell and deliver to the Purchasers the physical Refined Gold resulting from Produced Gold, and may sell and deliver to the Purchasers Refined Gold from a source other than the Mining Properties. The quantity of Produced Gold used to determine the Delivery Rate shall not be reduced by any loss or damage to any Produced Gold from and after the time it has been processed through the Mineral Processing Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Seller shall sell and deliver to the Purchasers all Refined Gold to be sold and delivered under this Agreement by way of credit (or physical allocation) to the metal accounts located in London, England designated by the Administrative Agent in writing at the direction of each Purchaser from time to time (the "**Designated Metal Accounts**"). The Administrative Agent (acting on written instruction of the applicable Purchaser) may change a Designated Metal Account or the location of a Designated Metal Account to a jurisdiction other than London, England upon not less than 10 Business Days prior written notice to the Seller. Upon any such designation, such metal account shall constitute the Designated Metal Account of the applicable Purchaser. Delivery of Refined Gold to a Purchaser shall be deemed to have been made at the time and on the date Refined Gold is credited to that Purchaser's Designated Metal Accounts (the "**Time of Delivery**" on the "**Date of Delivery**"). Title to, and risk of loss of, Refined Gold shall pass from the Seller to the Purchasers at the Time of Delivery. All costs and expenses pertaining to each delivery of Refined Gold to the Purchasers under this Agreement shall be borne by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For all deliveries of Refined Gold under this Agreement, the Seller shall notify the Administrative Agent (on behalf of the Purchasers) in writing at least one (1) Business Day before any delivery and credit to the Designated Metals Accounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the number of ounces of Refined Gold to be delivered and credited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the estimated Date of Delivery and credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Seller represents, warrants and covenants to the Purchasers that, at each Time of Delivery:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it will be the legal and beneficial owner of the Refined Gold delivered to the Designated Metals Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) it will have good, valid and marketable title to such Refined Gold; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such Refined Gold shall be free and clear of all Encumbrances.

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**3.3** Invoicing

Promptly following the Time of Delivery of any Refined Gold delivered pursuant to this Article 3, the Seller shall deliver to the Administrative Agent (on behalf of the Purchasers) an invoice, in a form agreed to between the Seller and the Administrative Agent, acting reasonably, setting out:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of ounces of Refined Gold so credited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a breakdown of the ounces of Refined Gold so credited by Buydown Payable Gold and No-Buydown Payable Gold; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Purchase Price for such Refined Gold.

**3.4** Purchase Price

The purchase price for each ounce of Refined Gold sold and delivered by the Seller under this Agreement (the "**Purchase Price**") shall be equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) until the Uncredited Balance has been reduced to nil, the Gold Market Price on the Date of Delivery of such Refined Gold, payable as follows: (i) an amount equal to the Gold Cash Price payable in cash in accordance with Section 3.5, and (ii) the balance payable by crediting an amount equal to the difference between the Gold Market Price on the Date of Delivery of such Refined Gold and the Gold Cash Price against the Advance Payment in order to reduce the Uncredited Balance until it has been credited and reduced to nil; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) after the Uncredited Balance has been reduced to nil, the Gold Cash Price, payable in cash in accordance with Section 3.5.

**3.5** Payment

Payment by the Purchasers of the aggregate Purchase Price for each delivery of Refined Gold under this Agreement shall be made by the Purchasers, in accordance with each Purchaser's Applicable Percentage, to the Seller no later than the fifth (5<sup>th</sup>) Business Day following the date of delivery of each invoice delivered under Section 3.3.

**3.6 Stream Buydown Option**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller shall have the right and option to buydown any proportion of the Buydown Delivery Threshold at any time and from time to time during the Term (the "**Buydown Option**") in exchange for the delivery of the Buydown Gold Ounces plus the Buydown Premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller may exercise the Buydown Option on one or more occasions during the Term by delivery of notice to the Administrative Agent (on behalf of the Purchasers) that it wishes to exercise the Buydown Option (the "**Buydown Option Notice**"). The Buydown Option Notice shall include the calculation of the Buydown Gold Ounces and the Buydown Premium. The Administrative Agent (on direction from the Majority Purchasers) shall notify the Seller within five (5) Business Days of delivery of the Buydown Option Notice that the Purchasers agree with the calculation of the Buydown Gold Ounces and the Buydown Premium or they dispute such calculation, which notification shall in each case be deemed to bind the Purchasers. If the Administrative Agent does not so notify the Seller, the Purchasers shall be deemed to have agreed with the Seller's calculation of the Buydown Gold Ounces and the Buydown Premium.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Administrative Agent (at the direction of the Majority Purchasers) notifies the Seller that the Purchasers dispute the calculation of the Buydown Gold Ounces and the Buydown Premium within five (5) Business Days of delivery of the Buydown Option Notice, the Administrative Agent's notice shall set forth the reasons for such dispute and the Administrative Agent's calculation of the Buydown Gold Ounces and the Buydown Premium (the "**Buydown Dispute Notice**"). The Seller and the Administrative Agent (at the direction of the Majority Purchasers) shall have ten (10) Business Days from the date of delivery of the Buydown Dispute Notice to meet and attempt to mutually agree upon the calculation of the Buydown Gold Ounces and Buydown Premium, failing which the Seller and the Administrative Agent (at the direction of the Majority Purchasers) shall be entitled to request a Neutral Auditor to determine the correct calculation of the Buydown Gold Ounces and Buydown Premium as an independent expert. If the Seller and the Administrative Agent (at the direction of the Majority Purchasers) cannot mutually agree upon a Neutral Auditor within five (5) Business Days of the expiry of the foregoing ten (10) Business Day period, then the Seller or the Administrative Agent (at the direction of the Majority Purchasers) may make a request to ADRIBC to appoint the Neutral Auditor. The Seller and the Administrative Agent (at the direction of the Majority Purchasers) shall instruct the Neutral Auditor to deliver its written determination of the correct calculation of the Buydown Gold Ounce and Buydown Premium to them no later than ten (10) Business Days after the dispute has been referred to it (or within any other period of time as mutually agreed between the Seller and the Administrative Agent). The Neutral Auditor shall give written reasons for its determination regarding the calculation of the Buydown Gold Ounces and Buydown Premium. Any determination rendered by the Neutral Auditor in respect of the calculation of the Buydown Gold Ounces and Buydown Premium shall be final and binding on the Parties. At the conclusion of such determination by the Neutral Auditor, if the quantity of the Buydown Gold Ounces and Buydown Premium determined by the Neutral Auditor to be due to the Purchasers is greater than the quantity calculated by the Seller, then the reasonable costs of the Neutral Auditor will be borne by the Seller, otherwise the reasonable costs of the Neutral Auditor will be borne by the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller shall deliver the Buydown Gold Ounces and the Buydown Premium to the Purchasers in accordance with each Purchaser's Applicable Percentage within two (2) Business Days after the Seller and the Purchasers have agreed on the calculation of the Buydown Gold Ounces and the Buydown Premium or the Neutral Auditor has rendered its written decision, as applicable, or such other date as may be agreed upon by the Seller and the Administrative Agent (at the direction of the Majority Purchasers). Sections 3.2(b), (c) and (e) shall apply *mutatis mutandis* to the delivery of Refined Gold by the Seller to the Purchasers under this Section 3.6. Upon delivery of the Buydown Gold Ounces and the Buydown Premium by the Seller to the Purchasers, the Buydown Delivery Rate and the Buydown Monthly Minimum will be amended in accordance with the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Section 3.4 shall apply *mutatis mutandis* to the delivery of Buydown Gold Ounces under this Section 3.6. Payment by the Purchasers, in accordance with each Purchaser's Applicable Percentage, of the aggregate Purchase Price for each delivery of Buydown Gold Ounces shall be made no later than the fifth (5th) Business Day following the Date of Delivery for each delivery of Buydown Gold Ounces. Notwithstanding anything to the contrary contained herein, no Purchase Price shall be paid by the Purchasers to the Seller for the delivery of the Buydown Premium under this Section 3.6.

**3.7 Annual Reconciliation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within 60 days of the end of each calendar year during which the delivery of Reference Gold to an Offtaker occurs, the Seller shall deliver a report to the Administrative Agent (on behalf of the Purchasers) setting out (1) the actual number of ounces of Refined Gold delivered by the Seller to the Purchasers during such calendar year pursuant to Sections 3.1 and 3.2(a) (the "**Annual Payable Gold**"), (2) the No-Buydown Delivery Rate for such calendar year, and (3) the Buydown Delivery Rate for such calendar year. If the Annual Payable Gold for a calendar year is less than the Delivery Rate for such calendar year, then the Seller shall sell and deliver to the Purchasers, in accordance with each Purchaser's Applicable Percentage, within 70 days of the end of the applicable calendar year, an amount of Refined Gold equal to the difference between the Delivery Rate for such calendar year and the Annual Payable Gold for such calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sections 3.2(b)-(e), 3.3, 3.4 and 3.5 shall apply *mutatis mutandis* to the sale and delivery of Refined Gold under Section 3.7(a).

**ARTICLE 4**<br>**ADVANCE PAYMENT**

**4.1 Advance Payment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In consideration for the promises and covenants of the Seller contained herein, including the sale and delivery by the Seller to the Purchasers of Refined Gold, the Purchasers hereby agree to pay, in accordance with each Purchaser's Applicable Percentage, to the Seller an advance payment in cash in the amount of $75,000,000 (the "**Advance Payment**"), as a prepayment of the Purchase Price, payable in accordance with Section 4.2.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No interest will be payable by the Seller on or in respect of the Advance Payment paid by the Purchasers to the Seller.

**4.2 Conditions Precedent in Favour of the Purchasers**

The Purchasers shall pay the Advance Payment to the Seller on the Closing Date after the satisfaction and fulfilment of each of the following conditions (collectively, the "**Advance Payment Funding Conditions**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent (on behalf of the Purchasers) shall have received a certificate of status, good standing or compliance (or equivalent) for the Seller and each other Seller Group Member issued by the relevant Governmental Authority dated not earlier than three (3) Business Days prior to the Closing Date (or such earlier date as may be acceptable to the Administrative Agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Seller shall have delivered to the Administrative Agent (on behalf of the Purchasers) evidence, in form satisfactory to the Administrative Agent, acting reasonably, that the Seller shall have received all required consents as may be necessary from the lenders under the Equinox Credit Agreement and MDC Holding Company LLC in order to perform the Seller's obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Seller shall have delivered to the Administrative Agent (on behalf of the Purchasers) an executed certificate of a senior officer of the Seller, in form and substance satisfactory to the Administrative Agent, acting reasonably, as to (i) the constating documents of the Seller, (ii) the resolutions of the board of directors of the Seller authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby, (iii) the names, positions and true signatures of the persons authorized to sign this Agreement on behalf of the Seller; and (iv) such other customary matters pertaining to the transactions contemplated hereby as the Administrative Agent may reasonably require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Seller shall have delivered to the Purchasers favourable opinions, in form and substance satisfactory to the Administrative Agent, acting reasonably, from external legal counsel to the Seller as to customary matters for a transaction of this nature, including (i) the legal status of the Seller; (ii) the authority of the Seller to execute and deliver this Agreement; (iii) the execution and delivery of this Agreement, and the enforceability thereof against the Seller; and (iv) any other customary matters relating to this Agreement and the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Owner shall have delivered to the Administrative Agent (on behalf of the Purchasers) a title opinion, in form and substance satisfactory to the Administrative Agent, acting reasonably, from external legal counsel to the Owner, that indicates that the Owner is the registered or recorded and legal and beneficial owner of a 100% interest in and to the Mining Properties, free and clear of all Encumbrances, other than Permitted Encumbrances;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no order, directive, decree, judgment, ruling, award, injunction, direction or request of any Governmental Authority or other decision-making authority of competent jurisdiction or Applicable Law, which restrains, enjoins, prohibits or otherwise makes illegal the consummation of the transactions contemplated by this Agreement shall be in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) no action or proceeding, at law or in equity, shall be pending or threatened by any Governmental Authority or other person to restrain, enjoin or prohibit the consummation of the transactions contemplated by this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) on and as of the Closing Date: (i) all of the representations and warranties made by the Seller in Schedule C of this Agreement will be true and correct in all respects as if made on and as of such date (except to the extent such representations and warranties speak as of an earlier date, then as of such date), (ii) the Seller will have performed and complied with its obligations under this Agreement to be performed or complied with by the Seller prior to the time of closing on the Closing Date, and (iii) no Event of Default (or event which with notice or lapse of time or both would become an Event of Default) shall have occurred and be continuing; and the Seller shall have delivered to the Administrative Agent (on behalf of the Purchasers) an executed certificate of a senior officer of the Seller, in form and substance satisfactory to the Administrative Agent, acting reasonably, certifying the matters in this Section 4.2(h).

**4.3 Satisfaction of the Advance Payment Funding Conditions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller shall use all reasonable commercial efforts and take all reasonable commercial action as may be necessary or advisable to satisfy and fulfil the Advance Payment Funding Conditions as promptly as reasonably practicable. The Parties will cooperate in exchanging such information and providing such assistance as may be reasonably required in connection with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Advance Payment Funding Conditions have not been satisfied on or before the Effective Date, then the Administrative Agent (at the direction of the Majority Purchasers) shall have the right to terminate this Agreement upon prior written notice to the Seller without any liability; provided that each Party shall continue to be liable for any breach of this Agreement that occurred prior to such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of the conditions set forth in Section 4.2 is for the exclusive benefit of the Purchasers and may only be waived by the Administrative Agent (on behalf of the Purchasers) in its sole discretion.

**4.4 Financing Condition Precedent**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Purchasers shall, in accordance with each Purchaser's Applicable Percentage pay the Advance Payment to the Seller on the Closing Date after Sandbox has completed a financing sufficient to fund Sandbox's Applicable Percentage of the Advance Payment (the "**Financing Condition**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sandbox shall use all reasonable commercial efforts and take all reasonable commercial action as may be necessary or advisable to satisfy and fulfil the Financing Condition as promptly as reasonably practicable. The Parties will cooperate in exchanging such information and providing such assistance as may be reasonably required in connection with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Financing Condition has not been satisfied on or before the Effective Date, then either the Seller or Sandbox shall have the right to terminate this Agreement upon prior written notice to the other Parties without any liability; provided that each Party shall continue to be liable for any breach of this Agreement that occurred prior to such termination.

**4.5 Use of Advance Payment**

The Seller shall ensure that the Advance Payment is used solely to fund the Seller's pro rata share of construction costs to complete the construction of the Project in accordance with the Development Plan (as defined in the Greenstone Project Joint Venture Agreement) or for general corporate purposes.

**ARTICLE 5**<br>**TERM**

**5.1 Term**

The term of this Agreement shall commence on the Execution Date and, subject to Section 11.2, shall continue until the No-Buydown Delivery Threshold and the Buydown Delivery Threshold have been reduced to zero in accordance with the terms of this Agreement (the "**Term**"). For greater certainty, the obligations of the Seller and the Purchasers under this Agreement that occurred prior to the end of the Term and any obligations of the Seller under Section 5.2 shall continue after the expiry of the Term until such obligations have been satisfied in full.

**5.2 Repayment of Uncredited Balance**

If, by the end of the Term, the Seller has not sold and delivered to the Purchasers an amount of Refined Gold sufficient to reduce the Uncredited Balance to nil, as calculated in accordance with Section 3.4(a), then the Seller shall pay to the Purchasers, in accordance with each Purchaser's Applicable Percentage, within five (5) days of the expiry of the Term, the Uncredited Balance then outstanding as of the expiry of the Term.

**ARTICLE 6**<br>**REPORTING; BOOKS AND RECORDS**

**6.1** Reporting Requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the 15th day after the end of each calendar month during the Term when production of Minerals is occurring, the Seller shall provide to the Administrative Agent (on behalf of the Purchasers) a Monthly Report in respect of such calendar month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On or before the 45th day after the end of each of the Seller's fiscal quarters, the Seller shall provide to the Administrative Agent (on behalf of the Purchasers) a copy of its quarterly unaudited consolidated financial statements for such quarter (provided that the making of documents publicly available on the Seller's SEDAR profile satisfies this requirement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before the 120th day after the end of each of the Seller's fiscal years, the Seller shall provide to the Administrative Agent (on behalf of the Purchasers) a copy of its audited annual consolidated financial statements for such year (provided that the making of documents publicly available on the Seller's SEDAR profile satisfies this requirement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Within 90 days after the end of each calendar year, and promptly whenever a material update to any life of mine plan in respect of the Mining Properties or the Project is adopted by the Seller or any of its Affiliates, the Seller shall provide to the Administrative Agent (on behalf of the Purchasers):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the annual production forecast for gold from the Mining Properties during the then current calendar year (to be set out on a monthly basis) and the remaining life of mine thereafter (to be set out on a yearly basis);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a list of assumptions used in developing the forecasts referred to in paragraph (i), including the types, tonnages, grade and gold recoveries of ore from the Mining Properties during the applicable forecast period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a statement setting out an estimate of the gold Reserves and Resources for the Mining Properties and the assumptions used; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an annual operating and financial budget for the Mine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During the Term, the Seller shall provide the Administrative Agent (on behalf of the Purchasers) with written notice of each of the following events promptly upon the Seller or any of its Affiliates becoming aware of or having knowledge of such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence of an Event of Default, or any event or circumstance which, with notice or lapse of time or both, would become an Event of Default or may result in an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the loss of, or material non-compliance with the terms of, or any threat (whether or not in writing) by a Governmental Authority to revoke or suspend, any material Approval required to develop, construct, own or operate the Project;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all material actions, suits and proceedings before any Governmental Authority or arbitrator pending, or to the knowledge of any Seller Group Member, threatened, against or directly affecting any Seller Group Member, including any actions, suits, claims, notices of violation, hearings, investigations or proceedings pending, or to the knowledge of any Seller Group Member, threatened, against or affecting any Seller Group Member, or with respect to the ownership, use, maintenance and operation of the Project and the Project Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any violation or suspected violation of any Applicable Law by any Seller Group Member in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any material disputes or disturbances pertaining to the Project involving local communities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any material labour disruption involving the workforce at the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any event, circumstance or fact that could reasonably be expected to give rise to a default of, or an event of default under, or accelerate payment under any agreement in respect of, debt of any Seller Group Member in a principal amount equal to not less than 10% of the amount of the debt of such Seller Group Member without giving effect to any amendments or waivers from the creditor party thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any other condition or event which has resulted, or that could reasonably be expected to result, in a Material Adverse Effect;

in each case, accompanied by a written statement by a senior officer of the Seller setting forth details of the occurrence referred to therein (provided that the making of public disclosure of such events satisfies the notice requirement under this Section 6.1(e) without the requirement to deliver a written statement by a senior officer of the Seller).

**6.2** Books and Records

The Seller shall keep, and shall cause the Owner to keep, true, complete and accurate Books and Records. The Seller shall permit, and shall cause the Owner to permit, the Administrative Agent and its authorized representatives and agents to perform audits, reviews and other examinations of the Books and Records from time to time solely for the purpose of confirming compliance with the terms of this Agreement, upon not less than three (3) Business Days' prior written notice from the Administrative Agent to the Seller, at mutually agreeable times during normal business hours, and in such a manner so as not to unreasonably interfere with the Seller's day-to-day business activities; provided that the Administrative Agent and its authorized representatives and agents will not exercise such rights more often than once during any calendar year absent: (a) the existence of an Event of Default; (b) a material deficiency identified during a previous audit or review; or (c) the requirement of either Purchaser to prepare a technical report under Applicable Laws, in which case such rights may be exercised at such periods as may be reasonably determined by the Purchasers. In conducting such audits, reviews or other examinations, the Administrative Agent may, at its expense, obtain or make copies of such Books and Records. For greater certainty, the Books and Records and all information derived therefrom shall be subject to Section 6.5 hereof.

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**6.3** Technical Data

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the written request of the Administrative Agent, the Seller shall promptly provide, and cause its Affiliates to provide, to the Administrative Agent (on behalf of the Purchasers), the following materials to the extent required to permit any Purchaser to comply with its reporting requirements and continuous disclosure obligations under Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) qualified persons' consents and qualified persons' certificates (with respect to technical reports pertaining to the Mining Properties);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) technical data, records or information pertaining to the Mining Properties, as would reasonably be necessary to prepare a technical report in compliance with NI 43-101 or an acceptable foreign code (as such term is defined in NI 43-101), in the possession or control of the Seller or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) copies of any technical report in respect of the Mining Properties, and the Seller shall cause the authors of such technical report to have such technical report addressed directly to the Purchaser if the Purchaser is required to file such technical reports under NI 43-101 or an acceptable foreign code (as such term is defined in NI 43-101); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other scientific and technical information as such Purchaser reasonably requests for the purpose of the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) preparing a technical report on the Mining Properties in accordance with NI 43-101 or an acceptable foreign code (as such term is defined in NI 43-101); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) complying with the continuous disclosure obligations of the Purchaser under Applicable Laws (including NI 43-101 or an acceptable foreign code (as such term is defined in NI 43-101)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Purchaser shall provide to the Seller an advance draft copy of any technical report on the Mining Properties prepared by or on behalf of it or any of its Affiliates in compliance with Applicable Laws before it is publicly filed or otherwise publicly announced, and in any event not less than five (5) Business Days before it is filed or publicly announced.

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**6.4** Inspections

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject at all times to the workplace rules and supervision of the Seller and to the respective Seller Group Member's requirements under the existing Greenstone Project Joint Venture Agreement, the Seller grants, and shall cause the Owner to grant, to the Administrative Agent and its representatives and agents, at reasonable times and upon not less than three (3) Business Days' prior written notice, and at the Administrative Agent's sole risk and expense (except for the negligence or willful misconduct of the Seller or its Affiliates), the right to access and physically inspect the Project and the Project Assets in order to monitor and review the Owner's mining operations on the Mining Properties, to confirm compliance with the terms and conditions of this Agreement, to prepare technical reports in accordance with and as required by Applicable Laws, and to comply with its continuous disclosure obligations under Applicable Laws. The Seller shall use all reasonable commercial efforts to obtain any consent or approval that may be required under the Greenstone Project Joint Venture Agreement to comply with its obligations under this Section 6.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent may avail itself of the right of access under Section 6.4(a) a maximum of once per calendar year, except (i) where reasonably necessary to confirm compliance with this Agreement or to investigate any discrepancies identified, or (ii) where additional access is reasonably requested by the Purchaser in connection with the Purchaser complying with its continuous disclosure obligations under Applicable Laws (including preparing technical reports).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall defend, indemnify and hold the Seller and its Affiliates harmless from and against all Losses arising from or related to all claims for damages, including injury or damage to persons or property, or death, sustained by the Administrative Agent and its representatives and agents while on the lands that comprise the Project, including the Mining Properties, except to the extent the same are caused by the negligence or wilful misconduct of the Seller or its Affiliates.

**6.5** Confidentiality

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party agrees that it shall maintain as confidential and shall not disclose, and shall cause its Affiliates, employees, officers, directors, advisors, agents and representatives to maintain as confidential and not to disclose, any information (whether written, oral or in electronic or other format) received or reviewed by such Party (a "**Receiving Party**") from the other Party, its Affiliates, employees, officers, directors, advisors, agents or representatives (a "**Disclosing Party**") as a result of or in connection with this Agreement ("**Confidential Information**"), except in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Receiving Party may disclose Confidential Information to its professional advisors, including its auditors, legal counsel, lenders, brokers, underwriters and investment bankers, and other prospective acquisition, financing or transaction counterparties, provided each person to whom the Confidential Information is disclosed agrees to be bound by these terms of confidentiality (or is bound by professional obligations to maintain confidentiality) and may only use such information for the limited purpose for which it was disclosed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to Sections 6.5(c) and 13.10, a Receiving Party may disclose Confidential Information where that disclosure is necessary to comply with any Applicable Law or court order, its disclosure obligations and requirements under any securities law, rules or regulations or stock exchange listing agreements, policies or requirements provided that the proposed disclosure is limited to factual matters and that the Receiving Party will have availed itself of the full benefits of any laws, rules, regulations or contractual rights as to disclosure on a confidential basis to which it may be entitled, including redacting all proprietary, structural or other confidential information of the Disclosing Party prior to making such disclosure and only following the prior review of the Disclosing Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) where disclosure is necessary for the purposes of the preparation and conduct of any expert, arbitration, or court proceeding, under or in connection with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Receiving Party may disclose Confidential Information where such information is already public knowledge other than by a breach of the confidentiality terms of this Agreement or obtained independently of this Agreement and the source of such information is not known to the Receiving Party, after reasonable enquiry, to be bound by a confidentiality agreement or otherwise prohibited from transmitting the Confidential Information by a contractual, legal or fiduciary obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) with the approval of the Disclosing Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a Receiving Party may disclose Confidential Information to those of its and its Affiliates' directors, officers, employees and agents who need to have knowledge of the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party shall ensure that its and its Affiliates' employees, directors, officers and agents and those persons listed in Section 6.5(a)(i), where applicable, are made aware of this Section 6.5 and comply with the provisions of this Section 6.5. Each Party shall be liable to the other Party for any improper use or disclosure of such terms or information by such persons. In addition, each Party has the right to pursue causes of action or other claims against such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Party shall publically disclose this Agreement without reasonable prior consultation with, (i) in the case of the Seller, the Administrative Agent, and (ii) in the case of a Purchaser, the Seller, and the applicable Parties shall consult with each other with respect to any proposed redactions to this Agreement in compliance with Applicable Laws before it is publically disclosed.

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**ARTICLE 7**<br>**COVENANTS**

**7.1** Conduct of Operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in this Agreement, all decisions regarding the Project and the Project Assets, including all decisions concerning the methods, extent, times, procedures and techniques of any: (i) exploration, development and mining on the Mining Properties; (ii) spending on development, operations and capital expenditures; (iii) leaching, milling, processing or extraction; (iv) decisions to develop, construct, operate and expand the Project; (v) materials to be introduced on or to the Mining Properties and the Mineral Processing Facility; and (vi) the sales of Minerals and terms thereof, shall be made by the Seller and its Affiliates in their sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall cause the Owner to operate the Project on a commercial basis as though it has the full economic interest in the Produced Gold in the absence of this Agreement and as if the Owner is entitled to receive the Gold Market Price for all Produced Gold. The Seller shall cause the Owner to ensure that all cut-off grade, short term mine planning, longer term planning and production decisions, and all resource and reserve calculations, concerning the Project shall be based on gold prices consistent with normal industry practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Seller shall cause the Owner to conduct its business, and carry out and perform all mining operations and activities pertaining to or in respect of the Mining Properties and the Mineral Processing Facilities, in accordance with the mine plan for the Project then in existence and in compliance in all material respects with all Applicable Laws and applicable Approvals and in a manner that is consistent in all material respects with sound exploration, mining, processing, engineering and environmental practices prevailing in the mining industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller shall cause the Owner to obtain, as and when required, and preserve and maintain, all Approvals (including environmental Approvals), and contracts which are required (i) to develop, construct, own, operate and maintain the Project, (ii) to operate the Project as contemplated by the then current mine plan, and (iii) for the Seller and to perform their respective obligations under this Agreement.

**7.2** Processing/Commingling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller shall ensure that the Owner does not process Other Minerals through the Mineral Processing Facility in priority to or in place of, or commingle Other Minerals with, Minerals, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Seller and the Owner have adopted and employ reasonable practices and procedures for weighing, determining moisture content, sampling and assaying and determining recovery factors (a "**Commingling Plan**"), such Commingling Plan to ensure the division of Other Minerals and Minerals for the purposes of determining the quantum of the Produced Gold, and which Commingling Plan would not reasonably be expected to have a negative impact on the Purchasers (unless compensation is paid in accordance with Section 7.2(a)(iv));

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent (at the direction of the Majority Purchasers) has approved the Commingling Plan and any changes to such plan which may be proposed from time to time, such approval not to be unreasonably withheld, conditioned or delayed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Seller and the Owner keep, for a period of five (5) years after Minerals are commingled with Other Minerals, all books, records, data and samples required by the Commingling Plan and makes such books, records, data and samples available to the Administrative Agent in accordance with the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Seller compensates the Purchasers for any negative impact incurred or suffered by the Purchasers if and to the extent that the processing of Minerals through the Mineral Processing Facility, and the delivery of Refined Gold in an amount equal to the Payable Gold hereunder, is delayed as a result of such Other Minerals being processed through the Mineral Processing Facility in place of Minerals ("**Displacement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall provide, and cause the Owner to provide, notice to the Administrative Agent (on behalf of the Purchasers) of the commencement of any commingling of Other Minerals with Minerals at least five (5) Business Days prior to such commencement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Compensation under Section 7.2(a)(iv) shall be in the form of increased deliveries of Refined Gold in order to ensure that the quantity and timing of deliveries received by the Purchasers are the same as they would have been had such Displacement not occurred.

**7.3** Preservation of Corporate Existence

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject to Section 7.3(a)(ii), the Seller shall do all things necessary or advisable to maintain its corporate existence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Seller may merge, amalgamate or consolidate with another entity, reincorporate or reconstitute into or as another entity, or consummate a similar corporate event provided that at the time of such merger, amalgamation, consolidation, reincorporation, reconstitution, or consummation, the resulting, surviving or transferee entity assumes in favour of the Administrative Agent and the Purchasers all obligations of the Seller, as applicable, under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall not continue to any jurisdiction, or otherwise domicile itself, outside of Canada.

**7.4** Owner of Project Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller shall cause the Owner to keep at all times the Mining Properties and all Approvals necessary to develop, construct, own and operate the Project in good standing, in full compliance of its obligations under all Applicable Laws, and make timely payment of all maintenance fees and other Taxes, fees and other amounts required to be paid in respect of the Mining Properties and all such Approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall promptly notify the Administrative Agent (on behalf of the Purchasers) when the Owner or any of its Affiliates has acquired any right, title or interest in or to any unpatented, leasehold and patented mining properties, and any other forms of mineral tenure or other rights to minerals or mining rights, or rights to work or enter upon lands for the purpose of exploring for, developing or extracting minerals in the Area of Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other term of this Agreement, any Seller Group Member may Transfer, in whole or in part, the Project Assets or reorganize the holding of any Seller Group Member, without the prior written consent of the Purchasers, and nothing in this Agreement shall restrict a change of control of a Seller Group Member. If no Seller Group Member owns any interest in the Project Assets, directly or indirectly, the Parties will use commercially reasonable efforts to amend the terms of this Article 7 to reflect any such Transfer.

**7.5** Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller shall maintain, and cause the Owner to maintain, with reputable insurance companies, insurance (including business interruption insurance) with respect to the Project Assets and the development, construction, and operations of the Project by the Owner or its agents conducted on and in respect thereof against such casualties and contingencies, and of such types and in such amounts as is customary in the case of similar mining operations in North America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall, upon the reasonable request of the Administrative Agent at reasonable intervals and no more than once per year, furnish to the Administrative Agent (on behalf of the Purchasers) a certificate setting forth the nature and extent of all insurance maintained by or on behalf of the Seller and the Owner in accordance with Section 7.5(a). The Seller shall, upon the request of the Administrative Agent, provide the Administrative Agent (on behalf of the Purchasers) with copies of all insurance policies as in effect from time to time relating to the Project.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Seller shall not, and shall ensure that the Owner does not, at any time do or omit to do anything, or cause anything to be done or omitted to be done, whereby any insurance required to be effected hereunder would, or would be likely to, be rendered void or voidable or suspended, impaired or defeated in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller shall ensure that each shipment of Minerals to an Offtaker containing Produced Gold is adequately insured in such amounts and with such coverage as is customary in the mining industry until delivery of each such shipment to an Offtaker has occurred. Notwithstanding any other provision of this Agreement, where the Owner or any of its Affiliates has received payment under an insurance policy in respect of a shipment of Minerals to any Offtaker containing Produced Gold that is lost or damaged after leaving the Mineral Processing Facility and before delivery to an Offtaker occurs, the quantity of Produced Gold contained in any such shipment for which the Owner or any of its Affiliates receives payment under such insurance policy (as determined by provisional assays or estimates or, if prepared, final assays or settlements) shall count towards determining the amount of Reference Gold in respect of which an Offtaker Payment has been received for the purposes of determining the amount of Payable Gold to be sold and delivered hereunder.

**7.6** Offtake Agreements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller shall not, and shall ensure that the Owner and its Affiliates do not, sell unprocessed ore mined or produced from the Mining Properties to any person without the prior written consent of the Administrative Agent (at the direction of the Majority Purchasers) unless: (i) the Owner or any of its Affiliates is able to determine the number of ounces of Reference Gold contained in any unprocessed ore mined or produced from any Mining Property and delivered to such person; and (ii) the Purchasers shall receive deliveries of an amount of Refined Gold pursuant to Sections 3.1 and 3.2 equal to the number of ounces of Payable Gold that would have been delivered under this Agreement if the unprocessed ore was processed through the Mineral Processing Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall ensure, and shall cause the Owner and its Affiliates to ensure that, subject to Section 7.6(a), when Minerals containing Reference Gold are sold, all such Minerals are sold to an Offtaker pursuant to an Offtake Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Seller shall ensure, and shall cause the Owner and any of its Affiliates that is a party to an Offtake Agreement to ensure that, all Offtake Agreements are on commercially reasonable terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller shall, and shall cause the Owner and any of its Affiliates that is a party to an Offtake Agreement to, deliver all Minerals that include Reference Gold to each Offtaker, in such quantity, description and amounts and at such times and places as required under and in accordance with each Offtake Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Seller shall provide to the Administrative Agent (on behalf of the Purchasers), and shall cause the Owner and any of its Affiliates that is a party to an Offtake Agreement to provide to the Administrative Agent (on behalf of the Purchasers), promptly upon its request, copies of all Offtake Agreements and any material amendments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Seller shall take commercially reasonable steps to enforce, and shall ensure the Owner and any of its Affiliates that is a party to an Offtake Agreement will take commercially reasonable steps to enforce, any of their respective rights and remedies under such Offtake Agreement with respect to any breaches of the terms or conditions thereof relating to Reference Gold. Subject to the Seller's requirements under its existing Offtake Agreements, the Seller shall notify the Administrative Agent (on behalf of the Purchasers) in writing when any such dispute arising out of or in connection with any such Offtake Agreement is commenced and shall provide the Administrative Agent (on behalf of the Purchasers) with timely updates of the status of any such dispute and the final decision and award of the court or arbitrator with respect to such dispute, as the case may be. The Seller shall use all reasonable commercial efforts to obtain any consent or approval that may be required under any existing Offtake Agreement to comply with its obligations specified in the preceding sentence.

**ARTICLE 8**<br>**TRANSFERS OF INTEREST**

**8.1** Assignment of Agreement by the Seller

The Seller shall not Transfer all or any part of its rights or obligations under this Agreement without the prior written consent of the Administrative Agent (at the direction of the Majority Purchasers), except as contemplated by Section 7.3(a)(ii).

**8.2** Transfers by the Purchaser

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Purchaser may Transfer all or any part of their rights or obligations under this Agreement without the prior written consent of the Seller, including by way of syndication or granting of participation rights. Any Purchaser transferring all or part of their rights or obligations under this Agreement shall give the Seller notice of such Transfer and the name of the Transferee(s) as soon as reasonably practicable before completion of such Transfer. In order for any such Transfer to be effective: (i) the Transferee must agree in writing to be bound as a Purchaser by this Agreement and to assume all obligations as a Purchaser under this Agreement to the extent of its Applicable Percentage; and (ii) the Purchasers and the Transferee must agree on their new respective Applicable Percentages. The Administrative Agent may, but is not required to, act as the Administrative Agent of such Transferee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For greater certainty, any Purchaser shall be entitled at any time to Transfer its interest in this Agreement as security in favour of its lenders and grant or allow to exist an Encumbrance in respect of this Agreement in favour of its lenders.

**8.3** Restricted Persons

Notwithstanding anything in this Agreement to the contrary, no Party may effect a Transfer of its rights or obligations under this Agreement to any Restricted Person; provided that, this Section 8.3 shall not prevent, prohibit or restrict any enforcement by the Purchaser's lenders in respect of their security interest in this Agreement, and any such enforcement shall not constitute a Transfer for the purposes of this Section 8.3.

**ARTICLE 9**<br>**REPRESENTATIONS AND WARRANTIES**

**9.1** Representations and Warranties of the Seller

The Seller, acknowledging that the Administrative Agent and the Purchasers are entering into this Agreement in reliance thereon, hereby makes, on and as of the Execution Date, the representations and warranties to the Administrative Agent and the Purchasers set forth in Schedule C.

**9.2** Representations and Warranties of the Purchaser

Each Purchaser, acknowledging that the Seller is entering into this Agreement in reliance thereon, hereby makes, on and as of the Execution Date, the representations and warranties to the Seller set forth in Schedule D, as such representations and warranties apply to each such Purchaser.

**9.3** Survival of Representations and Warranties

The representations and warranties set forth above shall survive the execution and delivery of this Agreement.

**9.4** Knowledge

Where any representation or warranty contained in this Agreement is expressly qualified by reference to the "knowledge" of the Seller, it shall be deemed to refer to the actual knowledge of the Seller's Chief Financial Officer and Chief Operating Officer and all knowledge which such persons would have if such person made reasonable enquiry into the relevant subject matter having regard to the role and responsibilities of such person as an officer of the Seller.

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**ARTICLE 10**<br>**DEFAULTS AND DISPUTES**

**10.1** Events of Default

Each of the following events or circumstances constitutes an event of default by the Seller (each, an "**Event of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Seller fails to sell and deliver Refined Gold to the Purchasers on the terms and conditions set forth in this Agreement within 10 Business Days of the date upon which sale and delivery is required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Seller is in breach or default of any of its representations, warranties, covenants or obligations set forth in this Agreement in any material respect (other than a breach or default under Sections 10.1(a) and (c)) and such breach or default is not remedied within 30 days following delivery by the Administrative Agent to the Seller of written notice, or such longer period of time as the Administrative Agent may determine in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Seller Group Member does not observe, perform or comply with any covenant or obligation that the Seller is required to cause the Seller Group Member to observe, perform or comply with, or ensure they observe, perform or comply with, under this Agreement in any material respect, and such non performance or non-compliance is not remedied within a period of 30 days following delivery by the Administrative Agent to the Seller of written notice of such non-observance, non performance or non-compliance, or such longer period of time as the Administrative Agent may determine in its sole discretion (at the direction of the Majority Purchasers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Seller is in breach or default of Section 8.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is or becomes unlawful, or any action taken by a Governmental Authority makes it impractical or impossible, for the Seller to perform any of its obligations in any material respect under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) upon the occurrence of an Insolvency Event with respect to any Seller Group Member.

**10.2** Purchaser Remedies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Event of Default occurs and is continuing, the Purchasers shall have the right, upon written notice from the Administrative Agent (at the direction of the Majority Purchasers) to the Seller, at its option and in addition to and not in substitution for any other remedies available at law or equity, to take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) demand delivery by the Seller to the Purchasers of any Refined Gold deliverable but not yet delivered in accordance with this Agreement; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) terminate this Agreement by written notice to the Seller and, without limiting 10.2(a)(i): (x) demand a refund of the Uncredited Balance, if any; and (y) demand all additional Losses suffered or incurred by the Purchasers as a result of the occurrence of such Event of Default and termination, including following termination, Losses based on the Purchasers' loss of the benefits from this Agreement. Notwithstanding any other provision of this Article 10, if an Event of Default under Sections 10.1(b) or 10.1(c) has occurred and is continuing, and the occurrence and continuance of any such Event of Default does not have a Material Adverse Effect (or would not, with notice or the passage of time, have a Material Adverse Effect), then the Administrative Agent shall have no right to terminate this Agreement, but the Purchasers shall be entitled to all other remedies available to it at law or at equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For greater certainty, if the Administrative Agent (at the direction of the Majority Purchasers) does not exercise its termination right under Section 10.2(a)(ii), the obligations of the Seller under this Agreement shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Seller shall promptly pay the Purchasers all Losses under Section 10.2(a)(ii) upon demand from the Administrative Agent (at the direction of the Majority Purchasers).

**10.3** Indemnity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parties agrees to indemnify and save harmless the other Parties and their respective Affiliates and directors, officers and employees from and against any and all Losses suffered or incurred by any of the foregoing persons in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy in or default or breach of any representation or warranty of such Party contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any breach or non-performance by such Party of any covenant or obligation to be performed by it pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of indemnification by the Seller, an Event of Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) pursuing any remedies that a Party is entitled to hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Section 10.3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is a continuing obligation, separate and independent from the Parties' other obligations and survives the termination of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is absolute and unconditional and unaffected by anything that might have the effect of prejudicing, releasing, discharging or affecting in any other way the liability of the Party giving the indemnity;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not apply to the extent such Losses have been, or will be recovered under Section 10.2; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) is in addition the right to pursue all other remedies available to a Party under this Agreement or at law or at equity, including specific performance and damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is not necessary for a Party to incur expense or make payment before enforcing a right of indemnity under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of the Parties shall act as the trustee to its related indemnified persons under this Article 10 to the extent indemnified under this Agreement and accepts this trust and will hold and enforce the covenants herein on behalf of such related indemnified persons.

**10.4** Disputes

If a Dispute (other than a dispute in respect of the calculation of the Buydown Gold Ounces) arises between the Parties, the Parties shall promptly and in good faith attempt to resolve such Dispute through negotiations conducted in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the disputing Party shall give written notice to the other Party (in the case of a Dispute between the Seller and any of the Purchasers, such Party being the Administrative Agent), which notice shall include a statement of the disputing Party's position and a summary of the arguments supporting its position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 15 days after receipt of such notice, the receiving Party shall submit a written response to the disputing Party which shall also include a statement of the receiving Party's position and a summary of the arguments supporting its position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Chief Executive Officer, President or equivalent officer of each of the Parties to the Dispute shall meet at a mutually acceptable time and place, but in any event within 15 days after issuance of the disputing Party's written notice to attempt to resolve the Dispute; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Dispute has not been resolved within five (5) days after such meeting, that Dispute shall be resolved in accordance with Section 13.4.

**ARTICLE 11**<br>**ADDITIONAL PAYMENT TERMS**

**11.1** Payments

All monetary payments due by one Party to another under this Agreement shall be made in U.S. Dollars and shall be made by wire transfer in immediately available funds to the bank account or accounts designated by the receiving Party in written from time to time.

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**11.2** Taxes

All deliveries of Refined Gold and all monetary amounts paid hereunder shall be made without any deduction, withholding, charge or levy for or on account of any Taxes (other than Excluded Taxes), all of which shall be for the account of the Party making such delivery or payment. If any such Taxes (other than Excluded Taxes) are so required to be deducted, withheld, charged or levied by the Party making such delivery or payment, then such Party shall make, in addition to such delivery or payment, such additional delivery or payment as is necessary to ensure that the net amount received by the other Party(ies) entitled to delivery or payment (free and clear and net of any such Taxes (other than Excluded Taxes), including any Taxes (other than Excluded Taxes) required to be deducted, withheld, charged or levied on any such additional amount) equals the full amount such other Party would have received had no such deduction, withholding, charge or levy been required. Any gross-up payment or additional delivery by the Seller to the Purchasers under this Section 11.2 shall not reduce the amount of the Uncredited Balance. To the extent a Party pays to an applicable Governmental Authority any Taxes that gives rise to a gross-up or additional delivery as contemplated by this Section 11.2, that Party shall provide to the other Parties reasonable documentation of the payment of such Taxes within 10 Business Days of such payment. The Seller agrees to indemnify and save harmless the Administrative Agent, the Purchasers and their Affiliates and directors, officers and employees from and against any and all Losses suffered or incurred by any of the foregoing persons in connection with the failure of the Seller to pay and remit to any tax authorities any Taxes that may be required to be deducted, withheld, charged or levied on deliveries of Refined Gold or monetary amounts paid hereunder or any other transaction contemplated within this Agreement unless the failure to pay and remit any Taxes arose solely as a result of the Seller relying on information from the Administrative Agent or the relevant Purchaser in determining no tax was payable.

**11.3** Refund of Gross-up

If any Party determines, acting in good faith, that it has received a refund of any Taxes as to which it has been grossed-up or received additional deliveries pursuant to Section 11.2, it shall pay to the other Party an amount equal to such refund (but only to the extent of any gross-up or additional deliveries made under Section 11.2 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such Party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such other Party, upon the request of such Party, shall repay to such Party the amount paid over pursuant to this Section 11.3 (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such Party is required to repay such refund to such Governmental Authority. This Section 11.3 shall not be construed to require any Party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the other Party or any other person.

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**11.4** Change in Tax Laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, as a result of a change in, a revision in, implementation of or amendment to any law or the interpretation of any law by the relevant tax authorities or courts having competent jurisdiction (a "**Change in Law**"), the Seller is required to deduct, withhold, charge or levy a material amount of Taxes on deliveries of Refined Gold to the Purchasers, which Taxes are materially in excess of the Taxes which would have been deducted, withheld, charged or levied on such deliveries prior to the Change in Law, the Seller, on one hand, and the Administrative Agent, on behalf of the Purchasers, on the other hand, agree that, upon the request of the Seller, they shall negotiate in good faith with each other to amend this Agreement so that the Seller and its Affiliates are no longer adversely affected by any such Change in Law; provided that any such amendment shall not have an adverse impact on the Seller, on the one hand, or the Administrative Agent or the Purchasers on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, as a result of a Change in Law, the Administrative Agent or the Purchasers become liable for a material amount of Taxes on payments made under this Agreement to the Seller, which Taxes are materially in excess of the Taxes that the Administrative Agent or the Purchasers would have been liable for on such payments prior to the Change in Law, the Seller, on one hand, and the Administrative Agent, on behalf of the Purchasers, on the other hand, agree, that upon the request of the Administrative Agent, that they shall negotiate in good faith with each other to amend this Agreement so that the Purchasers, the Administrative Agent and their Affiliates are no longer adversely affected by any such Change in Law; provided that any such amendment shall not have an adverse impact on the Seller, on the one hand, or the Purchasers on the other hand.

**11.5** Interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The dollar value of any Overdue Gold Ounces from time to time outstanding shall accrue interest at the Federal Funds Rate plus 800 basis points once such deliveries are overdue. Interest shall be calculated, compounded and paid monthly and shall be calculated on an amount equal to the product of (1) the number of ounces of Refined Gold subject to such overdue delivery, multiplied by (2) the Gold Market Price on the date at which the Seller's corresponding delivery obligation was originally due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without duplicating interest payable in accordance with Section 11.5(a), any dollar amount not paid when due shall accrue interest at the Federal Funds Rate plus 800 basis points once such payments are overdue. Interest shall be calculated, compounded and paid monthly.

**11.6** Set Off

Any dollar amount not paid when due by a Party or any Overdue Gold Ounces may be set off against any dollar amount or Refined Gold owed to such Party by the other Party(ies). Any amount of Refined Gold set off and withheld against any non-payment by a Party shall be valued at the Gold Market Price as of the date that such amount of Refined Gold first became due to such Party. Any dollar amount set off and withheld against any Overdue Gold Ounces shall result in a reduction to the Overdue Gold Ounces by that number of ounces equal to the dollar amount set off divided by the Gold Market Price as of the day such dollar amount first became payable. In the event that a sufficient dollar amount is not available for set off by the Seller and a Purchaser is in default of a payment obligation under this Agreement, the Seller may reduce deliveries of Refined Gold by the dollar value of the amount owing by such Purchaser to the Seller which cannot be set off.

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**ARTICLE 12**<br>**THE PURCHASERS AND THE ADMINISTRATIVE AGENT**

12.1 The Administrative Agent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties agree that the rights and obligations of the Administrative Agent, and of the Purchasers with respect to the Administrative Agent, set out in Schedule F attached hereto form part of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other section of this Agreement, in the event that the Administrative Agent is also a Purchaser, all such actions taken by such Purchaser, in its capacity as Administrative Agent, shall be deemed to be for itself and as agent on behalf of the other Purchasers.

**12.2** Purchasers' Obligations Several; No Partnership

The obligations of each Purchaser under this Agreement are several and not joint or joint and several. No Purchaser shall be responsible for the obligations of any other Purchaser hereunder. Neither the entering into of this Agreement nor the completion of any transactions contemplated herein shall constitute the Purchasers a partnership.

**ARTICLE 13**<br>**GENERAL**

**13.1** Further Assurances

Each Party shall execute all such further instruments and documents and do all such further actions as may be necessary to effectuate the documents and transactions contemplated in this Agreement, in each case at the cost and expense of the Party requesting such further instrument, document or action, unless expressly indicated otherwise.

**13.2** No Joint Venture

Nothing herein shall be construed to create, expressly or by implication, a joint venture, mining partnership, commercial partnership, agency relationship, fiduciary relationship, or other partnership relationship between the Administrative Agent or any Purchaser on the one hand and the Seller on the other hand.

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**13.3** Treatment and Characterization

The Parties acknowledge and agree that this Agreement and the transactions contemplated hereunder are, and are intended to be, transactions for the delivery and purchase and sale of Refined Gold.

**13.4** Governing Law

This Agreement shall be governed by and construed under the laws of the Province of British Columbia and the federal laws of Canada applicable therein (without regard to its laws relating to any conflicts of laws). The courts of the Province of British Columbia shall have non-exclusive jurisdiction to settle any Dispute arising out of or in connection with this Agreement. The United Nations Vienna Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

**13.5** Time

Time is of the essence in this Agreement.

**13.6** Costs and Expenses

Except as otherwise set out herein, all costs and expenses incurred by a Party shall be for its own account. The Seller agrees that it shall also be responsible for the Administrative Agent's and the Purchasers' reasonable legal costs for: (i) any amendments to this Agreement requested by the Seller after the Closing Date; (ii) the preparation of any additional documents or instruments in connection with the transactions contemplated by this Agreement after the Closing Date; and (iii) any transaction permitted under Section 8.1.

**13.7** Survival

Without limiting any other provision of this Agreement, the following provisions shall survive termination of this Agreement: Sections 6.4(c), 6.5, 7.2(a)(iv), 10.2(c), 10.3, Article 11, Article 12, Article 13 and such other provisions of this Agreement as are required to give effect thereto.

**13.8** Invalidity

If any provision of this Agreement is wholly or partially invalid, this Agreement shall be interpreted as if the invalid provision had not been a part hereof so that the invalidity shall not affect the validity of the remainder of the Agreement which shall be construed as if the Agreement had been executed without the invalid portion. It is hereby declared to be the intention of the Parties that this Agreement would have been executed without reference to any portion which may, for any reason, hereafter be declared or held invalid.

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**13.9** Notices

Any notice or other communication (in each case, a "**notice**") required or permitted to be given hereunder shall be in writing and shall be delivered by hand, by email or by courier addressed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Seller:

Equinox Gold Corp.

Suite 1501 - 700 West Pender Street

Vancouver, BC V6C 1G8

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with a copy, which shall not constitute notice, to:

Blake, Cassels & Graydon LLP

595 Burrard Street, Suite 2600

Vancouver, BC V7X 1L3

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Administrative Agent, to:

Sandbox Royalties Corp.

Suite 1400, 400 Burrard Street

Vancouver, British Columbia

V6C 3A6

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with a copy, which shall not constitute notice, to:

Gowling WLG (Canada) LLP

1 First Canadian Place

100 King Street West, Suite 1600

Toronto, Ontario

M5X 1G5

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if to Sandbox, to:

Sandbox Royalties Corp.

Suite 1400, 400 Burrard Street

Vancouver, British Columbia

V6C 3A6

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with a copy, which shall not constitute notice, to:

Gowling WLG (Canada) LLP

1 First Canadian Place

100 King Street West, Suite 1600

Toronto, Ontario

M5X 1G5

Attention: *[Redacted - Personal Information]* 

Email: *[Redacted - Personal Information]*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if to Regal, to:

Regal Partners Royalties A Pty Limited

Level 47 Gateway

1 Macquarie Place

Sydney NSW 2000 Australia

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with copies, which shall not constitute notice, to:

Allens

Deutsche Bank Place

126 Phillip St

NSW 2000 Australia

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

And

Osler, Hoskin & Harcourt LLP

Suite 3000, Bentall Four

1055 Dunsmuir St.

Vancouver, BC V7X 1K8

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Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

Any notice given in accordance with this section shall be deemed to have been received when delivered.

**13.10** Press Releases

The Parties shall jointly plan and co-ordinate any public notices, press releases, and any other publicity concerning the execution of this Agreement, and no Party nor its Affiliates shall act in this regard without the prior approval of the other Parties, such approval not to be unreasonably withheld, conditioned or delayed, unless such disclosure is required to meet timely disclosure obligations of any Party under Applicable Laws in circumstances where prior consultation with the other Parties is not practicable, and to the extent reasonably practicable, a copy of such disclosure is provided to the other Parties at such time as it is made publicly available.

**13.11** Amendments

Except as may be otherwise set out herein, this Agreement may not be changed, amended or modified in any manner, except pursuant to an instrument in writing signed on behalf of each of the Parties.

**13.12** Beneficiaries

This Agreement is for the sole benefit of the Parties and their successors and permitted assigns and, except as expressly contemplated herein, nothing herein is intended to or shall confer upon any other person any legal or equitable right, benefit or remedy of any nature or kind whatsoever under or by reason of this Agreement.

**13.13** Entire Agreement

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and cancels and supersedes any prior understandings and agreements between the Parties and their Affiliates with respect thereto including, without limitation, the Initial Agreement, subject to the provisions of Section 2.1.

**13.14** Waivers

Any waiver of, or consent to depart from, the requirements of any provision of this Agreement shall be effective only if it is in writing and signed by the Party giving it (except than the Administrative Agent, as directed by the Majority Purchasers, may provide a waiver by and on behalf of the Purchasers), and only in the specific instance and for the specific purpose for which it has been given. No failure on the part of any Party to exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver of such right. No single or partial exercise of any such right shall preclude any other or further exercise of such right or the exercise of any other right.

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**13.15** Counterparts

This Agreement may be executed in one or more counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by electronic email in PDF format shall be effective as delivery of a manually executed counterpart of this Agreement.

*[Remainder of Page Intentionally Left Blank]*

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**IN WITNESS WHEREOF** the Parties have executed this Gold Purchase Agreement as of the day and year first written above.

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| | |
|:---|:---|
| **SANDBOX ROYALTIES CORP.**, as Purchaser | **SANDBOX ROYALTIES CORP.**, as Purchaser |
| By: | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]*<br>Title: *[Redacted - Personal Information]* |
| <br>Executed in accordance with section 127 of the Corporations Act 2001 (Cth of Australia) by **REGAL PARTNERS ROYALTIES A PTY LIMITED (ACN 633 203 433)**, as Purchaser | <br>Executed in accordance with section 127 of the Corporations Act 2001 (Cth of Australia) by **REGAL PARTNERS ROYALTIES A PTY LIMITED (ACN 633 203 433)**, as Purchaser |
| By: | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]*<br>Title: *[Redacted - Personal Information]* |
| By: | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]*<br>Title: *[Redacted - Personal Information]*<br>|
| **SANDBOX ROYALTIES CORP.**, as Administrative Agent | **SANDBOX ROYALTIES CORP.**, as Administrative Agent |
| By: | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]*<br>Title: *[Redacted - Personal Information]* |

---

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| | |
|:---|:---|
| **EQUINOX GOLD CORP.** | **EQUINOX GOLD CORP.** |
| By: | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]*<br> Title: *[Redacted - Personal Information]* |
| By: | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]*<br> Title: *[Redacted - Personal Information]* |

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**SCHEDULE A**<br>**MINING PROPERTIES**

*[Redacted - Commercially Sensitive Information]*

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**SCHEDULE B**

**AREA OF INTEREST**

*[Redacted - Commercially Sensitive Information]*

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**SCHEDULE C**

**REPRESENTATIONS AND WARRANTIES OF THE SELLER**

1. The Seller is a corporation duly incorporated and validly existing under laws of the Province of British Columbia and is up to date in all material respects with filings required by law.

2. Each Seller Group Member (other than the Seller) is a corporation duly incorporated and validly existing under the laws of its governing jurisdiction, or is a limited partner formed and is validly existing under the laws of its governing jurisdiction, and each of them is up to date in all material respects with filings required by law.

3. All requisite corporate acts and proceedings have been done and taken by the Seller, including obtaining all requisite board of directors' approval, with respect to the Seller entering into this Agreement and performing its obligations hereunder.

4. The Seller has the requisite corporate power, capacity and authority to enter into this Agreement, and to perform its obligations hereunder. The Owner has the requisite power and authority to own and hold the Project Assets and to carry on its business as it is now being conducted by it.

5. This Agreement and the exercise of the Seller's rights and performance of its obligations hereunder do not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate the Seller's constating documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) conflict with or result in a default under any agreement, contract, mortgage, bond or other instrument to which any Seller Group Member is a party or which is binding on its assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) conflict with or violate any Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) result in or give any person the right to cancel or amend any contractual or other right of any Seller Group Member where such cancellation or amendment would have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) result in the imposition of any Encumbrance on the Project Assets or the termination or acceleration of any rights or obligations in respect of the Project Assets.

6. Except for all required consents as may be necessary from the lenders under the Equinox Credit Agreement and MDC Holding Company LLC**,** no Approvals are required to be obtained by any Seller Group Member in connection with the execution and delivery or the performance by the Seller of this Agreement or the transactions contemplated hereby.

7. This Agreement has been duly and validly executed and delivered by the Seller and constitutes a legal, valid and binding obligation of it, enforceable against it in accordance with its terms (subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws from time to time in effect relating to the rights and remedies of creditors as well as to general principles of equity whether considered at law or in equity).

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8. No Seller Group Member has suffered an Insolvency Event that is continuing, and the Seller is not aware of any circumstance which, with notice or the passage of time, or both, would give rise to the foregoing.

9. Schedule E sets forth the ownership structure of the Seller Group Members and the Project as of the Effective Date. No person has a direct or indirect ownership interest in any Seller Group Member except as set out in Schedule E. All of the issued and outstanding Equity Securities of each Seller Group Member are (i) duly authorized, validly issued, fully paid and non-assessable and are not subject to, nor were they issued in violation of, any pre-emptive rights, (ii) owned by person set out in Schedule E, free and clear of all Encumbrances, other than the encumbrances that are permitted under the Equinox Credit Agreement and (iii) not subject to any proxy, voting trust or other agreement or restriction relating to the voting of such Equity Securities.

10. Other than the Seller Group Members, Equinox and OMF Fund II(SC) Ltd. and its Affiliates in respect of its 40% ownership interest in the Owner, no person has any direct or indirect ownership interest in the Project or the Owner or is otherwise involved in any manner in the operation of the Project. The Owner does not own any Equity Securities or other interest in any person.

11. Schedule A sets out a complete and accurate list of the Mining Properties. The Mining Properties constitute all of the mining rights that comprise the interest of the Owner in the Project and in the Area of Interest.

12. The Owner, through the General Partner, is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the holder of record and is the beneficial holder of a 60% undivided interest in and to those unpatented mining claims forming part of the Mining Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the registered owner of record and is the beneficial holder of a 60% undivided interest in and to those leasehold mining claims forming part of the Mining Properties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the registered owner of record and is the beneficial holder of a 60% interest in and to the patented mining claims forming part of the Mining Properties;

all free and clear of any and all Encumbrances, other than Permitted Encumbrances.

13. The Mining Properties are in good standing with respect to the performance of all obligations thereon or in respect thereof (including payment of mining duties, performance of minimum assessment work and filing of reports with respect to minimum assessment work) required under Applicable Laws. Without limiting the generality of the foregoing, the Owner has paid all Taxes, fees, assessments, rents or other amounts owed in respect of the Mining Properties, including all Taxes, fees, assessments, rents or other amounts to keep the Mining Properties in good standing.

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14. The map attached hereto as Schedule B depicts the location of the Mining Properties with reasonable accuracy.

15. The Owner is the sole owner of, or otherwise has valid rights to use, all of the Project Assets, and no other person other than OMF Fund II(SC) Ltd. and its Affiliates has any rights to participate in or operate the Project.

16. The Owner's right, title and interest in and to the Mining Properties is not subject to claims of native or indigenous title or other adverse claims, and the Owner has not received notice of any such actual or potential claim.

17. The Project Assets and the businesses and operations of the Owner are insured under coverage obtained by the Owner or its Affiliates with reputable insurance companies (not Affiliates of the Owner) in such amounts, with such deductibles and covering such risks as is consistent with insurance carried by reasonably prudent participants in comparable businesses in the relevant jurisdiction, and such coverage is in full force and effect. Neither the Owner nor its Affiliates has breached the terms and conditions of any existing policies in respect thereof in any material respect or failed to promptly give any notice or present any material claim thereunder. There are no material claims by the Owner or any of its Affiliates under any such policy as to which any insurer is denying liability or defending under a reservation of rights clause.

18. Except as would not have a Material Adverse Effect, conditions on and relating to the Mining Properties and the surface area covered by the Mining Properties respecting all past and current operations conducted thereon by the Owner or its predecessors are in compliance in all material respects with all Applicable Laws. Other than pursuant to Applicable Laws, there are no restrictions on the ability of the Owner to exploit the Mining Properties.

19. The Owner's right, title and interest in and to the Mining Properties is not subject to any material adverse claim or any act of expropriation.

20. There are no outstanding, pending or, to the knowledge of the Seller, threatened, actions, suits, proceedings, investigations or claims affecting, or pertaining in any respect to, the Project except as would not reasonably be expected to have a Material Adverse Effect.

21. No Seller Group Member or the Project Assets is subject to any outstanding judgment, order, writ, injunction or decree that has or would reasonably be expected to have a Material Adverse Effect.

22. Each Seller Group Member has complied in all material respects with AML Laws and Anti-Bribery Laws in connection with its dealings relating to this Agreement and the Project.

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23. To the knowledge of the Seller, the material made available to the Purchasers in Seller's electronic data room relating to the mineralization or potential mineralization of the Mining Properties is not, as of the date of such material, willfully misleading.

24. All Approvals necessary for the construction, development and operation of the Project, as contemplated by the Development Plan as defined in the Greenstone Project Joint Venture Agreement, have either been obtained and received by the Owner and continue to be in place without challenge or appeal, to the extent reasonably considered necessary or appropriate given the current stage of development and construction of the Project, or are expected to be obtained in the ordinary course of business by the time they are necessary.

25. No Seller Group Member is a party to any contract, agreement or arrangement that would give rise to a valid claim against the Purchasers for a brokerage commission, finder's fee or like payment in connection with the transactions contemplated by this Agreement.

26. The Seller enters into and performs this Agreement on its own account and not as trustee or a nominee of any other person.

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**SCHEDULE D**

**REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS**

1. Sandbox is a company duly incorporated and validly existing under the laws of the Province of British Columbia and is up to date in all material respects with filings required by law.

2. Regal is a company duly incorporated and validly existing under the laws of Australia and is up to date in all material respects with filings required by law.

3. All requisite corporate acts and proceedings have been done and taken by each Original Purchaser, including obtaining all requisite board of directors' approval, with respect to entering into this Agreement and performing its obligations hereunder.

4. Each Original Purchaser has the requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.

5. This Agreement and the exercise of each Original Purchaser's rights and performance of its obligations hereunder do not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate such Original Purchaser's constating documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) conflict with or result in a default under any agreement, contract, mortgage, bond or other instrument to which such Original Purchaser is a party or which is binding on its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) conflict with or violate any Applicable Law.

6. Each Original Purchaser has obtained all Approvals required to be obtained by it in connection with the execution and delivery or the performance by it of this Agreement or the transactions contemplated hereby;

7. This Agreement has been duly and validly executed and delivered by it and constitutes a legal, valid and binding obligation of each Original Purchaser, enforceable against it in accordance with its terms (subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws from time to time in effect relating to the rights and remedies of creditors as well as to general principles of equity whether considered at law or in equity); and

8. Neither Original Purchaser has suffered an Insolvency Event that is continuing and it is not now aware of any circumstance which, with notice or the passage of time, or both, would give rise to the foregoing.

9. Neither Original Purchaser is a party to any contract, agreement or arrangement that would give rise to a valid claim against the Seller for a brokerage commission, finder's fee or like payment in connection with the transactions contemplated by this Agreement.

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**SCHEDULE E**

**CORPORATE ORGANIZATION OF SELLER GROUP MEMBERS**

*[Redacted - Commercially Sensitive Information]*

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**SCHEDULE F**

**THE ADMINISTRATIVE AGENT**

**1.** <u>**Appointment of Administrative Agent**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Effective as of the Execution Date, the Purchasers hereby appoint Sandbox as the Administrative Agent for purposes of the Agreement and Sandbox hereby accepts such appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Purchaser hereby irrevocably authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and to exercise such powers and to perform such duties thereunder as are specifically delegated to or required of the Administrative Agent by the terms hereof and such other powers as are reasonably incidental thereto. The Administrative Agent may perform any of its duties hereunder by or through its agents or employees, but shall at all times be responsible to the Purchasers for the acts and omissions of those agents and employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Purchaser agrees that any action taken by the Administrative Agent in accordance with the terms of this Agreement, and the exercise by the Administrative Agent of its powers in accordance with the terms of this Agreement, together with such other powers that are reasonably incidental thereto, other than as specifically provided herein to the contrary, shall be binding upon all of the Purchasers.

**2.** <u>**Substitution of Administrative Agent**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Majority Purchasers may substitute the Administrative Agent at any time by giving written notice thereof to the Purchaser and the Seller. Upon any such notice of substitution, the Majority Purchasers shall have the right, upon five (5) Business Days' notice to the Seller, to elect a replacement Administrative Agent pursuant to Section 2(b) of this Schedule F, subject to the approval of the Seller, such approval not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Majority Purchasers may, by written resolution, authorize one of the Purchasers, or an Affiliate of one of the Purchasers, to act as the Administrative Agent.

**3.** <u>**Limitation of Powers and Duties of Administrative Agent**</u>

The Administrative Agent, acting as such, shall have no powers, duties or responsibilities under this Agreement except those expressly set forth with respect to the Administrative Agent in this Agreement. The Administrative Agreement shall not be liable for any action taken or omitted by it hereunder or in connection herewith, unless caused by (i) its gross negligence or willful misconduct or (ii) without limiting (i), its breach of Section 4(d) of this Schedule F. The Administrative Agent shall not have, by reason of this Agreement, a fiduciary relationship in respect of any Purchaser. Nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to confer or impose upon the Administrative Agent any rights or obligations in respect of this Agreement except as expressly set forth herein.

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**4.** <u>**Duties of the Administrative Agent**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent undertakes to each Purchaser to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) perform the functions and duties delegated or required of the Administrative Agent under the provisions of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) exercise the powers and rights specifically conferred on the Administrative Agent under this Agreement in good faith and equitably in respect of each Purchaser and in accordance with the directions given to it in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If pursuant to the terms of this Agreement, the Administrative Agent is to take any action or omit to take any action under this Agreement on notice, direction or approval from a Purchaser or the Majority Purchasers, including pursuant to the remedies set forth in Section 10.2, as soon as reasonably practicable under the circumstances, the Administrative Agent shall seek out instruction or direction from the applicable Purchaser or Majority Purchasers (as the case may be) and the Administrative Agent shall provide written notice of such instruction or direction to any other Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Administrative Agent enters into agreements with any of the Seller Group Members under or pursuant to this Agreement, or the Administrative Agent derives the benefit of insurance of any of the Seller Group Members, all of such agreements and insurance shall be held by the Administrative Agent for the benefit of itself (in its capacity as a Purchaser) as well as for the benefit of all other Purchasers in accordance with their respective Applicable Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Following an Event of Default under Section 10.1(a) of this Agreement as notified by any Purchaser to the Administrative Agent, the Administrative Agent agrees to demand delivery under Section 10.2(a)(i) at the direction of that Purchaser in respect of any Refined Gold deliverable but not yet delivered to that Purchaser in accordance with Article 3 of this Agreement and, following reasonable good faith consultation between that Purchaser and the Administrative Agent, to the extent practicable, to exercise any related rights of the Administrative Agent under this Agreement at the direction of such Purchaser until such Event of Default has been remedied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall request all notices, invoices, technical data, reports and other documents required to be provided by the Seller in connection with the Agreement including, without limitation, pursuant to Sections 3.3, 3.7, 6.1 and 6.3 and, upon receipt, shall forward all such documents to each Purchaser .

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Administrative Agent shall respond to and cooperate in good faith with any reasonable request from a Purchaser to, and in the case of paragraphs (i) and (iii) at the expense of that Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) undertake audits, reviews and examinations of the Books and Records in accordance with Section 6.2 and (if required by the Purchaser) nominate representatives of the Purchaser as authorized representatives of the Administrative Agent for those purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) request materials from the Seller in accordance with Section 6.3 and Offtake Agreements in accordance with Section 7.6(e);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) undertake inspections of the Project and the Project Assets in accordance with Section 6.4 and (if required by the Purchaser) nominate representatives of the Purchaser as authorized representatives of the Administrative Agent for that purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except where representatives of the Purchaser are nominated as authorized representatives of the Administrative Agent under paragraphs (i) and (iii), report on the results of the applicable audit, review, examinations or inspection.

**5.** <u>**Lack of Reliance on Administrative Agent**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Independently, and without reliance upon the Administrative Agent, each Purchaser, to the extent it deems appropriate, has made and shall continue to make its own independent investigation of the condition (financial or otherwise) and affairs of the Owner, the Seller and any other Seller Group Member in connection with the taking or not taking of any action in connection herewith, and except as expressly provided in this Agreement (including Sections 4(e) and (f) of this Schedule F), the Administrative Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Purchaser with any information with respect thereto, whether coming into its possession before the consummation of the transactions contemplated hereby or at any time or times thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall not be responsible to any Purchaser for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, collectability, priority or sufficiency of this Agreement or the condition (financial or otherwise) of the Owner, the Seller and any other Seller Group Member, or (except in accordance with Sections 4(d), (e) and (f) of this Schedule F) be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement, or the condition (financial or otherwise) of the Owner, the Seller and any other Seller Group Member, or the existence or possible existence of any Event of Default, provided that, upon request of any Purchaser, the Administrative Agent shall provide such Purchaser with copies of the information it receives from time to time concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement, or the condition (financial or otherwise) of the Owner, the Seller and any other Seller Group Member, or the existence or possible existence of any Event of Default.

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**6.** <u>**Certain Rights of Administrative Agent**</u>

If the Administrative Agent shall request instructions from the Majority Purchasers or the Purchasers with respect to any act or action (including the failure to act) in connection with this Agreement, the Administrative Agent shall be entitled to refrain from such act or taking such action unless and until the Administrative Agent shall have received written instructions from the Majority Purchasers or the Purchasers, as applicable, and the Administrative Agent shall not incur liability to any person by reason of so refraining. Without limiting the foregoing, no Purchaser shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting under this Agreement in accordance with the instructions of the Majority Purchasers or the Purchasers given in accordance with this Agreement, as applicable.

**7.** <u>**Reliance by Administrative Agent**</u>

The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate or facsimile message, electronic mail, order or other documentary transmission or telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper person. The Administrative Agent may consult with legal counsel, independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts.

**8.** <u>**Indemnification of Agent**</u>

To the extent the Administrative Agent is not reimbursed and indemnified by the Seller under this Agreement, each Purchaser will reimburse and indemnify the Administrative Agent, in proportion to its Applicable Percentage, for and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including reasonable counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent in duly performing its duties hereunder; provided that no Purchaser shall be liable to the Administrative Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements which are determined, by a final, non-appealable decision of a court of competent jurisdiction, to have resulted from the Administrative Agent's gross negligence (it being acknowledged that ordinary negligence does not necessarily constitute gross negligence) or willful misconduct.

**9.** <u>**The Administrative Agent in its Individual Capacity**</u>

If the Administrative Agent shall also be a Purchaser, then the Administrative Agent shall have the same rights and powers hereunder as any other Purchaser and may exercise the same as though it were not performing the duties, if any, specified herein; and the terms "Purchasers" or "Purchaser" and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent, in its capacity as a Purchaser hereunder.

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**10.** <u>**Decision Making**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any amendment, waiver, discharge, consent or termination with respect to this Agreement relating to the following matters shall be effective only if agreed between the Seller and each Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any change to the sale and delivery of Refined Gold in accordance with Sections 3.2, 3.3 and 3.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any change to the amount of the Advance Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any amount payable or deliverable by the Seller to the Purchasers under this Agreement, or any alteration in the currency or mode of calculation or computation of any amount payable or deliverable by the Seller to the Purchasers under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any extension or reduction of the time for any payments or deliveries required to be made by the Seller to the Purchasers under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any extension or reduction of the notice period required in connection with any payment or delivery by the Seller to the Purchasers under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any assignment by the Seller pursuant to Section 8.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any change to Article 10 or what constitutes an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the reduction or elimination of any rights of any Purchaser, acting alone or together with other Purchasers, to exercise any rights or receive any information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any amendment to this Agreement unless the purpose of such amendment is to (a) cure any ambiguity, omission, mistake, error, defect or inconsistency (as reasonably determined by the Administrative Agent), subject to (c) below; (b) address amendments required in connection with the addition of a Purchaser as an additional party to the Agreement; or (c) make changes that do not adversely affect the rights of any Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for the matters described in Section 10(a) of this Schedule F or otherwise expressly provided for in this Agreement, any amendment, waiver, discharge or termination with respect to this Agreement shall only be effective if agreed between the Seller and the Majority Purchasers in writing, and any such amendment, waiver, discharge or termination that is so agreed shall be final and binding upon all of the Purchasers. Subject to the other provisions of this Schedule F, where the terms of this Agreement refer to any action to be taken by the Purchasers or to any such action that requires the consent or other determination of the Purchasers, the action taken by and the consent or other determination given or made by the Majority Purchasers shall, except to the extent that this Agreement expressly provides to the contrary, constitute the action or consent or other determination of the Purchasers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall provide the other Purchasers with copies of all amendments, waivers or consents provided by the Administrative Agent with respect to any provisions of the Agreement promptly upon execution thereof.

**11.** <u>**Sharing of Information**</u>

The Administrative Agent may share with the Purchasers, and the Purchasers may share amongst themselves, any information disclosed to any of them under or in connection with this Agreement, or otherwise possessed by any of them regarding the Seller Group Members, the Project and the Project Assets, whether or not such information is confidential, provided that any Confidential Information so shared will remain subject to the terms and conditions of Section 6.5.

**12.** <u>**Purchasers' Right of First Refusal**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time an Original Purchaser (a "**Vendor**") intends to Transfer all or any part of its rights or obligations under this Agreement (the "**ROFR Property**"), the Vendor shall promptly deliver a notice of such intention setting out the purchase price for the ROFR Property and the other proposed terms of the Transfer of the ROFR Property (a "**ROFR Notice**") to the other Original Purchaser (the "**Recipient**") and the Administrative Agent; provided that, if the purchase price for the ROFR Property set out in a ROFR Notice contains any non-cash consideration (including shares), the ROFR Notice shall specify the Vendor's good-faith estimate of the cash value for such non-cash consideration and the Recipient shall be entitled to purchase the ROFR Property in cash in *lieu* of the non-cash consideration; and further provided that, if the Vendor intends to Transfer, along with the ROFR Property, any assets of the Vendor that are not ROFR Property, then the Recipient shall be entitled to purchase and acquire only the ROFR Property, notwithstanding the Transfer of the other assets, and the ROFR Notice must specify the Vendor's good faith estimate of the cash value of only the ROFR Property being offered, separate from the other assets. If the Recipient does not agree with one or more of the foregoing estimates and such disagreement cannot be resolved by the Original Purchasers, acting reasonably, then the Original Purchasers shall make a request to ADRIBC to determine the value of the subject ROFR Property, in which case all time periods referred to in this Section 12 shall be extended by the time taken to obtain such final determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Recipient receives a ROFR Notice pursuant to this Section, the Recipient shall be entitled to offer to purchase all, but not less than all, of the ROFR Property, on the terms set out in the ROFR Notice by delivering written notice (the "**ROFR Exercise Notice**") of its intention to purchase the ROFR Property no later than 30 days from the date it receives a ROFR Notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Recipient advises the Vendor that it wishes to acquire such ROFR Property by delivering the ROFR Exercise Notice within such 30-day period, the Transfer of the ROFR Property to the Recipient shall be completed within 45 days of delivering the ROFR Exercise Notice at such location as may be agreed upon by the Original Purchasers where delivery of the documents and instruments evidencing Transfer of the ROFR Property must be made by the Vendor to the Recipient against payment of the consideration for the ROFR Property by the Recipient to the Vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Recipient: (i) fails to deliver the ROFR Exercise Notice within 30 days of receipt of the ROFR Notice that it is willing to purchase all of the ROFR Property; or (ii) fails to complete the Transfer within 45 days of delivering the ROFR Exercise Notice, the rights of the Recipient, except as hereinafter provided, to purchase the ROFR Property shall terminate and the Vendor may Transfer the ROFR Property on the terms provided for in the ROFR Notice within 90 days after the expiry of such 30-day period or such 45-day period, as applicable. If the ROFR Property is not Transferred within such 90-day period on such terms, the rights of the Recipient pursuant to this Schedule F shall again take effect.

**13.** <u>**Amendments to Schedule F**</u>

Subject to Section 10(a)(ix) of this Schedule F, the Purchasers may amend any provision in this Schedule F with prior notice and consent of the Seller, and the Purchasers shall provide a copy of any such amendment to the Seller reasonably promptly; provided, however, that any such amendment shall not be effective until the Seller provides its written consent thereto, such consent not to be unreasonably withheld or delayed.

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## Exhibit 4.2

------

**EXECUTION COPY**

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].

**SANDBOX ROYALTIES CORP.**

-and-

**B2GOLD CORP.**

&nbsp;&nbsp; **INVESTOR RIGHTS AGREEMENT**<br>

**June 5, 2024**

------

**Table of Contents**

---

| | |
|:---|:---|
| [**ARTICLE 1 DEFINITIONS AND INTERPRETATION**](#page_3) | [**1**](#page_3) |
| [1.1 Definitions](#page_3) | [1](#page_3) |
| [1.2 Rules of Construction](#page_7) | [5](#page_7) |
| [1.3 Ownership Percentage](#page_7) | [5](#page_7) |
| [**ARTICLE 2 BOARD OF DIRECTORS**](#page_8) | [**6**](#page_8) |
| [2.1 Board Nominee](#page_8) | [6](#page_8) |
| [2.2 Management to Endorse and Vote](#page_9) | [7](#page_9) |
| [2.3 Board Observer Rights](#page_9) | [7](#page_9) |
| [2.4 Rights and Privileges of Investor Nominee](#page_10) | [8](#page_10) |
| [**ARTICLE 3 ADDITIONAL RIGHTS AND COVENANTS**](#page_10) | [**8**](#page_10) |
| [3.1 Standstill](#page_10) | [8](#page_10) |
| [3.2 Limitations on Transfer](#page_12) | [10](#page_12) |
| [3.3 Escrow and Hold Periods](#page_14) | [12](#page_14) |
| [**ARTICLE 4 REGISTRATION RIGHTS**](#page_14) | [**12**](#page_14) |
| [4.1 Piggyback Registration Rights](#page_14) | [12](#page_14) |
| [**ARTICLE 5 PARTICIPATION RIGHTS**](#page_15) | [**13**](#page_15) |
| [5.1 Participation Right](#page_15) | [13](#page_15) |
| [**ARTICLE 6 RIGHTS TO INFORMATION**](#page_17) | [**15**](#page_17) |
| [6.1 Right to Information](#page_17) | [15](#page_17) |
| [**ARTICLE 7 GENERAL**](#page_17) | [**15**](#page_17) |
| [7.1 Notices](#page_17) | [15](#page_17) |
| [7.2 Further Assurances](#page_19) | [17](#page_19) |
| [7.3 Assignment](#page_19) | [17](#page_19) |
| [7.4 Injunctive Relief](#page_19) | [17](#page_19) |
| [7.5 Entire Agreement](#page_19) | [17](#page_19) |
| [7.6 Time of Essence](#page_19) | [17](#page_19) |
| [7.7 Governing Law](#page_19) | [17](#page_19) |
| [7.8 Severability](#page_20) | [18](#page_20) |
| [7.9 Waiver](#page_20) | [18](#page_20) |
| [7.10 Amendments](#page_20) | [18](#page_20) |
| [7.11 Most Favoured Nation](#page_20) | [18](#page_20) |
| [7.12 Binding Effect](#page_20) | [18](#page_20) |
| [7.13 Termination](#page_20) | [18](#page_20) |
| [7.14 Counterparts](#page_21) | [19](#page_21) |

---

------

<u>**INVESTOR RIGHTS AGREEMENT**</u>

**THIS INVESTOR RIGHTS AGREEMENT** (this "**Agreement**") is made as of the 5<sup>th</sup> day of June, 2024 (the "**Effective Date**")

**BETWEEN**:

**SANDBOX ROYALTIES CORP.**, a corporation incorporated under the laws of the Province of British Columbia

(the "**Company**")

**AND**:

**B2GOLD CORP.**, a corporation incorporated under the laws of the Province of British Columbia

(the "**Investor**")

**WHEREAS**:

A. The Company and the Investor (each, a "**Party**" and together the "**Parties**") have entered into a royalty sale and purchase agreement dated June 5, 2024 (the "**Purchase Agreement**"), pursuant to which the Company has agreed to purchase from the Investor (or certain of its Affiliates) certain rights, title and interests held by the Investor (or its Affiliates) in certain royalty agreements in consideration for a purchase price of US$89,859,810.78, which the Investor has elected to receive, in whole or in part, in Shares (as defined below) in accordance with the Purchase Agreement;

B. As a condition to the completion of the transactions contemplated in the Purchase Agreement (upon the Investor's election to receive Consideration Shares as defined therein), the Company has agreed to grant certain rights to the Investor, and the Investor has agreed to make certain covenants in favour of the Company, each on the terms and subject to the conditions set out in this Agreement.

**NOW THEREFORE**, in consideration of the respective covenants and agreements of the Parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each Party, the Parties agree as follows:

**ARTICLE 1**<br>**DEFINITIONS AND INTERPRETATION**

**1.1** **Definitions**

In this Agreement, capitalized terms used but not defined in this Agreement shall have the meanings given in the Purchase Agreement and, unless otherwise indicated, the following terms have the following meanings:

------

"**Affiliate**" means any Person Controlling, Controlled by, or under common Control with, another Person;

"**Applicable Laws**" means applicable laws, including international, national, provincial, state, municipal and local laws, treaties, statutes, ordinances, judgments, decrees, injunctions, writs, certificates and orders, by-laws, rules, regulations, ordinances, or other requirements of any Governmental Entity having the force of law;

"**Applicable Securities Laws**" means all applicable Canadian securities laws and the respective rules and regulations under such laws together with applicable published instruments, notices and orders of the securities regulatory authorities;

"**Board**" means the board of directors of the Company;

"**Board Materials**" has the meaning set out in Section 2.3(a);

"**Bought Deal**" means a fully underwritten offering on a bought deal basis pursuant to which an underwriter has committed to purchase securities of the Company pursuant to a "bought deal" letter prior to the filing of a prospectus or a prospectus supplement or a distribution pursuant to an overnight marketed offering;

"**Business Day**" means any day other than a Saturday, Sunday or any other day in which banks in the Province of British Columbia are authorized or required by Applicable Laws to be closed;

"**Change of Control Transaction**" means a merger, amalgamation, reorganization, business combination, tender offer, exchange offer, take-over bid, statutory arrangement or similar transaction involving the Company or its securities resulting in a change of Control of the Company or a sale, transfer, lease or other disposition of all or substantially all of its assets, provided that a Change of Control Transaction shall not include any transaction between the Investor and any Affiliate of the Investor;

"**Competitor**" means a Person (other than the Investor or any of its Affiliates) engaged, directly or indirectly (including through any other Person), in the buying or selling of royalties or streams as its primary business;

"**Control**" means: (a) in respect of a corporation, the ability of a Person or group of Persons acting in concert to influence the manner in which the business of such corporation is carried on, whether as a result of ownership of sufficient voting shares of such corporation to entitle that Person or group of Persons to elect a majority of the directors of such corporation or by contract or otherwise, (b) in respect of a partnership, trust, syndicate or other entity, the actual power or authority to manage and direct the affairs of, or ownership of more than 50% of the transferable beneficial interests in, such entity, or (c) any other relationship as, in fact, constitutes actual control of a Person;

"**Credible Bid**" means any take-over bid (including an amended take-over bid) other than a take-over bid (a) that the Board has determined in good faith, after consultation with its financial and legal advisors, is not reasonably capable of being completed in accordance with its terms, (b) in respect of which the Company has publicly announced the Board's conclusion no later than seven Business Days following the date on which such take-over bid is commenced or the intention to make such take-over bid (together with the material terms of the bid) is publicly announced and, in the absence of such announcement, such bid shall be deemed to be a Credible Bid, or (c) initiated by the Investor, any Affiliate of the Investor, or any Person acting jointly or in concert with any of the foregoing in any manner contrary to the Investor's covenants and obligations in Section 3.1. In addition, in the event the Company or the Board chooses to recommend or support a bid such bid shall be deemed to be a Credible Bid;

------

"**Director**" means a member of the Board;

"**Director Eligibility Criteria**" has the meaning set out in Section 2.1(d);

"**Distribution**" means a distribution or sale of the Shares (or any other Subject Securities) to the public by means of a prospectus under Applicable Securities Laws;

"**Distribution Notice**" has the meaning set out in Section 4.1(a);

"**Exchange**" means the TSX Venture Exchange, the NEO Exchange, the Toronto Stock Exchange or such other stock exchange(s) and quotation service(s), if any, as the Shares may be listed or quoted on, as applicable, from time to time;

"**Exempt Issuance**" means the issuance by the Company of Shares or Subject Securities: (a) upon the exercise, redemption, conversion or exchange of any Subject Securities for Shares pursuant to their pre-existing terms, (b) to employees, officers, consultants or directors of the Company or any Affiliate of the Company pursuant to security-based compensation arrangements, including stock option plans and restricted share unit plans, (c) as a result of the consolidation or subdivision of any securities of the Company or any Affiliate of the Company, (d) as special distributions, stock dividends or payments in kind, (e) pursuant to a shareholder rights plan, (f) to the Investor or any Affiliate of the Investor or (g) in connection with any bona fide lending transaction or debt financing completed by the Company that does not involve the issuance of debt or equity Subject Securities convertible into Shares;

"**Governmental Entity**" means any domestic or foreign: (a) federal, provincial, state, municipal, local or other government, (b) governmental or quasi-governmental authority of any nature, including any governmental ministry, agency, branch, department, court, commission, board, tribunal, bureau or instrumentality, (c) Exchange or securities regulatory authority, or (d) body exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power of any nature;

"**Investor Nominee**" means the Director who is nominated by the Investor by notice in writing to the Company and elected or appointed from time to time to the Board pursuant to the terms of this Agreement;

"**Market Price**" has the meaning ascribed thereto under the applicable rules and policies of an Exchange;

"**Nomination Notice**" has the meaning set out in Section 2.1(e);

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"**Notice**" has the meaning set out in Section 7.1;

"**Observer**" has the meaning set out in Section 2.3(a);

"**Ownership Percentage**" has the meaning set out in Section 1.3(a);

"**Partially-Diluted Ownership Percentage**" means the percentage ownership interest of the Investor and each Affiliate of the Investor, taken as a whole, in the equity capital of the Company, which shall be calculated by dividing (i) the number of Shares held by the Investor and its Affiliates (assuming the exercise, exchange and/or conversion, by the Investor and its Affiliates, of any Subject Securities held by the Investor and its Affiliates at such time) by (ii) the total number of Shares issued and outstanding at such time (assuming the exercise, exchange and/or conversion, by the Investor and its Affiliates, of any Subject Securities held by the Investor and its Affiliates at such time);

"**Participation Right**" has the meaning set out in Section 5.1(b);

"**Person**" means any individual, sole proprietorship, partnership, firm, entity, joint venture, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Entity, and where the context requires, any of the foregoing when they are acting as trustee, executor, administrator or other legal representative;

"**Piggyback Registration**" has the meaning set out in Section 4.1(a);

"**Qualifying Securities**" means (i) any Shares held by the Investor including any Shares issuable or issued upon conversion of Subject Securities held by the Investor; and (ii) all Shares directly or indirectly issued or issuable with respect to the securities referred to in paragraph (i) above by way of share dividend or share split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization;

"**Securities**" means the Shares and/or Subject Securities, as the case may be;

"**Shareholder**" means a holder of Shares;

"**Shares**" means the common shares in the capital of the Company;

"**Standstill Period**" means the period of time commencing on the Effective Date and ending on the earlier of: (a) the date which is 12 months following the Effective Date and (b) the date on which the Ownership Percentage ceases to be at least 10%;

"**Subject Securities**" means any securities of the Company convertible into or exercisable or exchangeable for Shares, including convertible debt securities and rights to purchase equity securities;

"**Subscription Notice**" has the meaning set out in Section 5.1(b);

"**Subsequent Offering**" has the meaning set out in Section 5.1(a);

"**Subsequent Offering Notice**" has the meaning set out in Section 5.1(a); and

------

"**Transfer**" includes any direct or indirect transfer, sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, granting of any option, right or warrant to purchase (including any short sale, put option or call option) or other disposition.

**1.2** **Rules of Construction**

In this Agreement, unless otherwise expressly stated or the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the terms "Agreement", "this Agreement" and similar expressions refer to this Agreement in its entirety and not to any particular provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) references to an "Article" or "Section" followed by a number or letter refer to the specified Article or Section of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing the singular number only shall include the plural and vice versa, and words importing the use of any gender shall include all genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the word "including" is deemed to mean "including without limitation" and all similar variations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any reference to this Agreement, or to any other contract, document or other instrument, includes, and is a reference to, this Agreement or such other contract, document or other instrument, as the same may have been, or may from time to time be, amended, restated, replaced, supplemented or novated, and includes any schedules or exhibits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any reference to a statute refers to such statute, and all rules and regulations made under such statute, as the same may have been amended, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any time period within which a payment is to be made or any other action is to be taken under this Agreement shall be calculated excluding the day on which the period commences and including the day on which the period ends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) whenever any action is required to be taken or period of time is to expire on a day other than a Business Day, such action shall be taken or period shall expire on the next following Business Day.

**1.3** **Ownership Percentage**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 1.3(b), for purposes of this Agreement "**Ownership Percentage"** means, at a particular time, the percentage ownership interest of the Investor and each Affiliate of the Investor, taken as a whole, in the equity capital of the Company, which shall be calculated by dividing (i) the number of Shares held by the Investor and its Affiliates by (ii) the total number of Shares issued and outstanding at such time. In the case of both (i) and (ii), the number of Shares used in the calculation will not include the exercise, exchange and/or conversion, by the Investor and its Affiliate(s) of any Subject Securities held by the Investor and its Affiliate(s) at such time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In determining the Ownership Percentage or Partially-Diluted Ownership Percentage, any Shares issued as a result of a Subsequent Offering shall be disregarded and the Investor shall be deemed to hold the Ownership Percentage or Partially-Diluted Ownership Percentage it would have held at such time if such Subsequent Offering had not occurred unless and until the Company has delivered to the Investor a Subsequent Offering Notice in respect of such Subsequent Offering and the Investor fails to provide a Subscription Notice to the Company within the time required in Section 5.1(b), in which case the Shares issued in connection with such Subsequent Offering shall be included in the total number of Shares issued and outstanding for purposes of determining the Ownership Percentage or Partially-Diluted Ownership Percentage.

**ARTICLE 2**<br>**BOARD OF DIRECTORS**

**2.1** **Board Nominee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If and for so long as the Investor has a 10% or greater Ownership Percentage, the Investor shall have the right but not the obligation to designate one Investor Nominee for election to the Board. For greater clarity, the Investor shall no longer be entitled to designate an Investor Nominee after the date on which this Agreement has been terminated in accordance with Section 7.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees that, following the Effective Date, the Board shall appoint an initial Investor Nominee, (and/or the Company shall otherwise take all other steps required under corporate law to appoint or elect such initial Investor Nominee), subject to applicable law, to serve on the Board until the next annual general meeting of Shareholders; provided that the Investor Nominee (i) is identified by the Investor to the Company, (ii) consents in writing to serve as a director, and (iii) meets the Director Eligibility Criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees to nominate and recommend for election, at each meeting of Shareholders at which Directors are to be elected, the Investor Nominee designated by the Investor in accordance with Section 2.1(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Investor agrees that the initial Investor Nominee and any replacement Investor Nominee shall be mutually agreeable to the Investor and the Company, acting reasonably, having regard to the skills matrix and requirements of the Board (as determined in good faith by the Board or an authorized committee of the Board and including, for greater certainty, any Applicable Laws or Exchange rules or policies) for Director candidates, and such individual consents in writing to serve as a Director (the "**Director Eligibility Criteria**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall provide the Investor with written Notice (the "**Nomination Notice**"), promptly, and in any event, not less than 60 days in advance of the date set for the meeting of Shareholders at which Directors are to be elected. The Nomination Notice shall include a request for the identification of any Investor Nominee and the detailed information required to be included in an information circular with respect to the appointment of any Investor Nominee. The Investor shall be required to, not later than 45 days in advance of the date set for a meeting of Shareholders of which the Investor is notified pursuant to this Section 2.1(e), provide the Company with written Notice of the identity and particulars requested in the Nomination Notice. If the Investor does not advise the Company of the identity of the Investor Nominee at least 45 days prior to the date set for the meeting of Shareholders at which Directors are to be elected (for any reason other than failure by the Company to provide the Investor with the Nomination Notice within the period prescribed by this Section 2.1(e)), then the Investor will be deemed to have nominated the incumbent Investor Nominee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If an incumbent Investor Nominee ceases to serve as a Director, whether due to such Investor Nominee's death, disability, resignation or removal, the Investor shall have the right to nominate a replacement Investor Nominee and the Company shall cause the Board to appoint, as soon as practicable, such replacement Investor Nominee in accordance with this Agreement to fill the vacancy caused by such death, disability, resignation or removal, provided that such Investor Nominee satisfies the Director Eligibility Criteria and the Investor remains eligible to nominate such Investor Nominee pursuant to Section 2.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If the Investor ceases to have any right to appoint an Investor Nominee pursuant to Section 2.1(a), the Investor shall use commercially reasonable efforts to, unless requested otherwise by the Company, cause the Investor Nominee to forthwith resign from the Board.

**2.2** **Management to Endorse and Vote**

The Company agrees that management of the Company shall, in respect of every meeting of Shareholders at which the election of Directors is to be considered, and at every reconvened meeting following an adjournment or postponement of such meeting, endorse and recommend the Investor Nominee identified in the Company's proxy materials for election to the Board, so long as the Investor is entitled to appoint the Investor Nominee and such Investor Nominee satisfies the Director Eligibility Criteria, and shall vote any Shares in respect of which management is granted a discretionary proxy in favour of the election of such Investor Nominee to the Board at every such meeting.

**2.3** **Board Observer Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provided the Investor has not nominated an Investor Nominee pursuant to Section 2.1 and the Investor is entitled to nominate an Investor Nominee pursuant to Section 2.1, the Investor shall be entitled to designate one individual (who may change from time to time upon 30 days' written Notice to the Company) as an observer (an "**Observer**") to attend all meetings of the Board and all committee meetings of the Board. The Observer shall have the right to receive notice of, and review the same information and materials ("**Board Materials**") as are provided to Directors for, such meetings and to speak at such meetings, but shall not be entitled to vote. The Company shall deliver to the Observer copies of any resolutions proposed to be adopted by the Board or committee, as applicable, at the same time as such resolutions are circulated to members of the Board or any committee of the Board, as applicable. Prior to the Observer attending the first meeting of the Board, the Investor shall cause the Observer to sign a customary non-disclosure agreement provided by the Company, provided that any such non-disclosure agreement is reasonable in both form and in substance, and sign an acknowledgement agreeing to be bound by the Company's disclosure and insider trading policies. The Observer shall be reimbursed for all reasonable expenses related to attending all meetings of the Board on a basis that is consistent with the Company's policies for Director reimbursement, as if the Observer were a member of the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, the Company may exclude the Observer from access to any Board Materials or from any meeting of the Board or any committee of the Board (or any portion of such meeting) if the Board concludes that: (i) such exclusion is necessary to preserve the solicitor-client or litigation privilege between the Company and/or its Affiliates and their respective counsel (provided that any such exclusion shall only apply to such portion of such Board Materials or meeting which would be required to preserve such privilege); (ii) such Board Materials or discussion relates to the Company's or its Affiliates' relationship, contractual or otherwise, with the Investor or its Affiliates or any actual or potential transactions between or involving the Company or its Affiliates and the Investor or its Affiliates; (iii) such exclusion is necessary to avoid a conflict of interest or disclosure that is restricted by any agreement to which the Company or any of its Affiliates is a party or otherwise bound; or (iv) such exclusion is necessary to comply with Applicable Laws.

**2.4** **Rights and Privileges of Investor Nominee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor Nominee shall be entitled to the benefit of any directors' liability insurance or indemnity to which other Directors are entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investor Nominee shall be reimbursed for all reasonable expenses related to their service on the Board on a basis that is consistent with the Company's policies for Director reimbursement. The Investor Nominee shall be entitled to compensation consistent with the compensation received by other non-employee independent members of the Board, including any fees and equity awards.

**ARTICLE 3**<br>**ADDITIONAL RIGHTS AND COVENANTS**

**3.1** **Standstill**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor covenants and agrees that, during the Standstill Period, it shall not, and it shall cause its Affiliates not to, in any manner, directly or indirectly, or in concert with any other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) propose or seek to effect any Change of Control Transaction, including by entering into a support agreement or lock-up agreement in respect of such a transaction, provided that for greater certainty, the Investor and its Affiliates shall be permitted to tender to, vote in favour of, and/or enter into a support agreement or lock-up agreement in respect of a Change of Control Transaction supported by a majority of the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) solicit proxies from Shareholders or form, join, support or participate in a group to solicit proxies from Shareholders with a view to replacing the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase, offer or agree to purchase or negotiate to purchase any Securities that would cause the Ownership Percentage to exceed 34%, or assets of the Company, other than as contemplated in the Purchase Agreement, without the advance written authorization of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) advise or encourage any Person proposing any of the foregoing (including forming a "group" with any such Person); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) make any public announcement or take any action in furtherance of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Section 3.1(a), the Investor and its Affiliates shall not be restricted from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) acquiring Securities with the prior written consent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) making a confidential proposal to the Board regarding any of the transactions or activities contemplated in Section 3.1(a), entering into discussions or negotiations with the Board or the Company with respect to the terms of any such proposal, and entering into any agreement with the Company providing for the consummation of such proposal; provided that the Investor shall not make any public disclosure of the making of or terms of such proposal except with the prior written consent of the Company, such consent not to be unreasonably withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) acquiring Securities upon exercise, exchange or conversion of any Subject Securities in accordance with their respective terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) exercising any rights of the Investor under the Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquiring Securities in accordance with the terms of the Participation Rights set forth in Section 5.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) participating in rights offerings conducted by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) receiving stock dividends or similar distributions made by the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) provided that the Investor has not breached Section 3.1(a), tendering Shares to a formal take-over bid for the Shares or any similar transaction by an arm's length third party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) disposing of Shares by operation of a statutory amalgamation, merger, arrangement, business combination or other statutory procedure involving the Company or the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 3.1(a) shall cease to be of any force or effect: (i) as of the public announcement or public disclosure of (A) commencement of a Credible Bid, or an intention to undertake a Credible Bid, for voting or equity securities of the Company or any of its Affiliates, (B) any agreement, arrangement or understanding in respect of a merger, amalgamation, arrangement, asset purchase or other business combination transaction involving the Company or any of its Affiliates, or an intention to make an offer to the Company or any of its Affiliates to undertake such a transaction, which would, if completed, result in (x) any class of outstanding voting securities of the Company being converted into cash or securities of another person resulting in shareholders (excluding, for the avoidance of doubt, any shareholder who is acquiring voting securities of the Company as part of the transaction) holding less than 50% of the voting securities of the resulting or surviving entity, or (y) all or substantially all of the Company's assets being sold to any person or group (other than the Investor), (C) the commencement of any proceeding by or against the Company in connection with the dissolution, liquidation, winding up, bankruptcy or similar reorganization of the Company, (D) the appointment of a trustee, receiver, manager or other administrator of the Company or any of its material properties or assets, or (E) the Company seeking protection under the *Bankruptcy and Insolvency Act* (Canada), the *Companies' Creditors Arrangement Act* (Canada) or similar legislation; or (ii) if the Company is in material default of this Agreement and such default continues for a period of 30 days after the Company receives written Notice of such default from the Investor.

**3.2** **Limitations on Transfer**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor agrees that it shall not, directly or indirectly, Transfer any Shares (or any other right or option to acquire Shares (pursuant to the terms of a Subject Security or otherwise)) unless the Investor has first complied with the requirements of this Article 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Provided that the Investor has at least a 10% Ownership Percentage, the Investor agrees that it shall not, directly or indirectly, Transfer any Shares (or any other right or option to acquire Shares (pursuant to the terms of a convertible, exchangeable or exercisable security or otherwise)) to or for the benefit of any Person where the other Person (A) would, immediately following such Transfer, either alone or together with other Persons acting jointly or in concert with such Person, beneficially own, or exercise control or direction over, 10% or more of the issued and outstanding Shares on the date of such Transfer, on a partially-diluted basis, or (B) is a Competitor or an Affiliate of a Competitor. Notwithstanding the foregoing, the Investor shall not be deemed to have breached its obligations under this Section 3.2(b) with respect to any Transfer of Shares to any Person if such Transfer is (i) not specifically directed by the Investor to be made to a particular counterparty or counterparties and the Investor does not have any reason to believe that such Transfer would be in violation of the foregoing or (ii) made pursuant to any Transfer in accordance with Section 3.2(e).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Provided that the Investor has at least a 10% Ownership Percentage, if the Investor desires to Transfer any Shares to, or for the benefit of, any Person other than one described in (b) above (a "**Proposed Transfer**"), the Investor shall first give written notice by email (the "**Proposed Transfer Notice**") to the Company and then shall cooperate with the Company in good faith to find a buyer to Transfer such Shares that is acceptable to the Company, for no less than 10 Business Days prior to the consummation of a Proposed Transfer. If no such buyer is found after not less than 10 Business Days, the Investor may proceed with the Proposed Transfer to a buyer of its choosing. Notwithstanding the foregoing, if the Investor has at least a 10% Ownership Percentage but no more than a 15% Ownership Percentage, the Investor may complete the Proposed Transfer without such prior cooperation with the Company by way of a 'bought deal' executed with a nationally recognized broker dealer at an issue discount of no more than 7.5% relative to the five-day volume weighted average trading price of the Shares (on the Exchange where the majority of trading of the Shares occurs) as of the date immediately preceding the date of the Proposed Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Investor does not complete the Proposed Transfer to a buyer of its choosing within 30 days of the date of the Proposed Transfer Notice, the provisions of this Section 3.2 shall again apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For greater certainty, nothing in this Section 3.2 shall restrict the Investor from (i) Transferring any Shares (or any other right or option to acquire Shares (pursuant to the terms of a Subject Security or otherwise)), provided that the Investor has complied with this Article 3; (ii) exercising any of its rights under the Purchase Agreement (including any Transfer by the Investor or any of its Affiliates of any right to receive Consideration Shares, or any designation of a recipient of Consideration Shares, in each case in accordance with the terms and conditions of the Purchase Agreement); or (iii) transferring, selling or tendering any or all of its Shares (or any other right or option to acquire Shares (pursuant to the terms of a Subject Security or otherwise)) (A) pursuant to any actual or proposed Change of Control Transaction, provided such Change of Control Transaction has been approved by the Board, (B) pursuant to any arrangement, amalgamation, business combination or similar transaction of the Company, (C) to the Company for purchase and cancellation under any normal course issuer bid or substantial issuer bid of the Company in place from time to time or (D) to any nominee or custodian where there is no change in beneficial ownership. Notwithstanding the foregoing, any Transfer by the Investor shall, in addition to compliance with this Section 3.2, be in compliance with all Applicable Securities Laws.

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**3.3** **Escrow and Hold Periods.**

The Investor agrees to comply with and be bound by any escrow requirements or hold periods imposed by any Exchange or securities regulator.

**ARTICLE 4**<br>**REGISTRATION RIGHTS**

**4.1** **Piggyback Registration Rights**

Provided that the Investor has at least a 15% Ownership Percentage,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time, the Company agrees to or announces a Distribution, other than by way of a Bought Deal, the Company shall promptly give the Investor seven Business Days' prior written notice of the proposed Distribution (the "**Distribution Notice**"), including proposed pricing (provided that in the event the proposed pricing of the Distribution is not determinable as of the date of the Distribution Notice, such information may be omitted from the Distribution Notice, but, shall, in any event, be communicated to the Investor in writing no later than five Business Days prior to the proposed closing date of the Distribution). Upon the written request of the Investor given within five Business Days after receipt of the notice of the proposed Distribution from the Company, the Company shall use commercially reasonable efforts to, in conjunction with the proposed Distribution, cause to be qualified in such offering all or any whole number of Shares held by the Investor in accordance with the procedures set forth in Schedule "A" hereto (a "**Piggyback Registration**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the proposed Distribution is not completed within 180 days of a notice of a Piggyback Registration, the related notice of a Piggyback Registration delivered by the Investor hereunder shall be deemed to be withdrawn and the Company shall again be required to comply with the procedures set out in this Section 4.1 with respect to any proposed Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Company is proposing to undertake a Bought Deal, the Company shall give such notice to the Investor, including anticipated pricing, as early as practicable in the circumstances in light of the speed and urgency under which Bought Deals are conducted (but not less than three Business Days prior to the launch of such Bought Deal). The Investor shall have two Business Days from the date the Company advises it of such proposed Bought Deal to notify the Company of the number of Qualifying Securities that the Investor requests to be included in such Bought Deal; unless otherwise agreed to by the Company, such amount not to exceed the proportion in the Bought Deal that the Shares held by the Investor represent of all Shares issued and outstanding at such time. The Company shall use commercially reasonable efforts to include such Shares in any Bought Deal, and, if so included, the procedures set forth in Schedule "A" hereto shall apply to such Distribution.

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Notwithstanding anything herein to the contrary, this Article 4 shall not apply to a Distribution that is an initial public offering of Shares by the Company.

**ARTICLE 5**<br>**PARTICIPATION RIGHTS**

**5.1** **Participation Right** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For so long as the Investor has a 10% Partially-Diluted Ownership Percentage, if the Company issues or proposes to issue any Securities from its treasury for the purpose of raising capital, which for greater certainty shall exclude the issuance of any additional Securities that may be issuable upon the exercise of any other participation, top-up or pre-emptive rights provided to any third party prior to the date hereof and any Exempt Issuance (any such issuance, a "**Subsequent Offering**"), then the Company shall promptly, and, in any event no later than one Business Day following the public announcement of such Subsequent Offering (and if the Subsequent Offering is not announced, no later than ten days prior to the closing date for the issuance of the securities in the Subsequent Offering), provide a written Notice (the "**Subsequent Offering Notice**") to the Investor setting out: (i) the number of Securities issued or contemplated to be issued in connection with the Subsequent Offering and the total number of Shares and Subject Securities issued and outstanding as of the close of business on the Business Day immediately preceding the Subsequent Offering Notice; (ii) the material terms and conditions of any Subject Securities issued or contemplated to be issued in connection with the Subsequent Offering, including any term sheets or offer sheets, if any; (iii) the subscription price per Share or Subject Security issued or to be issued in connection with the Subsequent Offering; and (iv) the proposed closing date for the issuance of Securities to the Investor, assuming the Investor exercises its Participation Rights, which closing date shall be the later of (A) ten days following the date of the Subsequent Offering Notice, (B) the closing date set for the Subsequent Offering, (C) if Shareholder approval is required under Applicable Laws for the Company to complete the issuance of Securities to the Investor pursuant to its exercise of its Participation Rights, the Business Day following receipt of such Shareholder approval, or (D) such other date as the Company and the Investor may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the receipt by the Company of all required regulatory approvals and compliance with Applicable Laws, the Investor shall have the right (the "**Participation Right**"), upon providing notice ("**Subscription Notice**") to the Company within ten Business Days, or three Business Days in the case of a bought deal, following receipt of the Subsequent Offering Notice that it intends to exercise its Participation Right, in whole or in part, to subscribe for and to be issued, on the same terms and conditions of such Subsequent Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Subsequent Offering of Shares, up to such number of Shares that will allow the Investor to maintain the Partially-Diluted Ownership Percentage held immediately prior to the completion of the Subsequent Offering; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Subsequent Offering of Subject Securities, up to such number of Subject Securities that will (assuming the conversion, redemption, exercise or exchange of all Subject Securities issuable in connection with the Subsequent Offering and of all Subject Securities issuable pursuant to the Participation Right) allow the Investor to maintain the Partially-Diluted Ownership Percentage held immediately prior to the completion of the Subsequent Offering.

In the Subscription Notice, the Investor shall specify the number of Shares and Subject Securities beneficially owned, directly or indirectly, by it and its Affiliates as at the date of the Subsequent Offering Notice, and the number of Securities for which the Investor is subscribing. In the case of a Subsequent Offering that is qualified by a prospectus, the Company will use commercially reasonable efforts to qualify the Securities subscribed for by the Investor pursuant to such prospectus, failing which the Securities subscribed for by the Investor will be issued on a private placement basis concurrently with the closing of the Subsequent Offering, subject to receipt of any required Shareholder approval and Exchange or other regulatory approvals. The Company will use its commercially reasonable efforts to promptly obtain (including by applying for any necessary price protection confirmations) all necessary Exchange approvals for the listing of all Shares (including Shares underlying Subject Securities) to be issued to the Investor pursuant to this Article 5. If the Investor is prohibited by Applicable Securities Laws or other Applicable Laws or the rules of any stock exchange from participating on substantially the terms and conditions of the Subsequent Offering, the Company shall use commercially reasonable efforts to enable the Investor to participate on terms and conditions that are as substantially similar as circumstances permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Investor exercises the Participation Rights and the Company is required, under the rules and policies of the Exchange or Applicable Securities Laws, to seek Shareholder approval for the issuance of Securities to the Investor pursuant to this Section 5.1, the Company shall use commercially reasonable efforts to, at its expense, duly call and hold a meeting of its Shareholders to consider (and the Company shall recommend that Shareholders vote in favour of) the issuance of the Securities to the Investor within 75 days after the date that the Investor is advised by the Exchange that it will require such Shareholder approval. The Investor may close any such Subsequent Offering prior to obtaining Shareholder approval; provided that, during the period between the closing of any such Subsequent Offering and the date of the Shareholder meeting to consider the issuance of the Securities to the Investor, the Ownership Percentage and the Partially-Diluted Ownership Percentage shall be deemed to be the Ownership Percentage and the Partially-Diluted Ownership Percentage, respectively, immediately prior to the closing of the Subsequent Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For greater clarity, in the event the Company grants any other participation right(s) or pre-emptive right(s) to any third party or parties after the date hereof, the Company shall ensure such right(s) is or are subject to the Participation Right of the Investor provided by this Article 5, and the Company shall ensure additional Securities are offered for issuance to the Investor so as to give effect to this Section 5.1(d) (in relation to the exercise of any such other participation right(s) or pre-emptive right(s) provided to any third party or parties).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If an Exempt Issuance causes the Investor's (i) Ownership Percentage to be less than 10%, provided that the Investor's Ownership Percentage was not less than 10% prior to the Exempt Issuance, or (ii) Partially-Diluted Ownership Percentage to be less than 10%, provided that the Investor's Partially-Diluted Ownership Percentage was not less than 10% prior to the Exempt Issuance, the Company shall provide the Investor with prompt written notice (the "**Dilution Notice**") of the occurrence of such Exempt Issuance and the Investor shall have the right within 15 Business Days of it receiving the Dilution Notice, by providing written notice to the Company, to subscribe, at a price determined in good faith by the Board if the Shares are not then listed on an Exchange or a price equal to the Market Price if the Shares are listed on an Exchange, for that number of Shares required for the Investor to maintain its Ownership Percentage at 10% (in the case of (i) above) or its Partially-Diluted Ownership Percentage at 10% (in the case of (ii) above), as applicable. Upon receipt of such notice and the applicable subscription price, the Company shall issue such additional number of Shares to the Investor as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding the foregoing, the Investor shall only be entitled to exercise its Participation Right once for each Subsequent Offering.

**ARTICLE 6**<br>**RIGHTS TO INFORMATION** 

**6.1** **Right to Information**

During the term of this Agreement, the Company and its subsidiaries shall provide the Investor with such reasonably requested information as may be required by the Investor to meet its regulatory reporting requirements and investor disclosure policies and procedures.

**ARTICLE 7**<br>**GENERAL**

**7.1** **Notices**

All notices, demands or other communications (in any case, a "**Notice**") to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient or by email addressed to the recipient. Each Notice shall be delivered, mailed or sent electronically to the Parties at the respective addresses or email addresses indicated below:

If to the Company:

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Sandbox Royalties Corp.<br>Suite 3200-733 Seymour Street<br>Vancouver, BC V6B 0S6<br>Attention: *[Redacted - Personal Information]*<br>Email: *[Redacted - Personal Information]*

with a copy (which shall not constitute notice) to:

Blake, Cassels & Graydon LLP<br>Suite 3500 - 1133 Melville Street<br>Vancouver, BC V6E 4E5<br>Attention: *[Redacted - Personal Information]*<br>Email: *[Redacted - Personal Information]*

If to the Investor:

B2Gold Corp.<br>Suite 3100 - 595 Burrard Street<br>Vancouver, BC V7X 1J1<br>Attention: *[Redacted - Personal Information]*<br>Email: *[Redacted - Personal Information]*

with copies (which shall not constitute notice) to:

McCarthy Tétrault LLP<br>Suite 2400 - 745 Thurlow Street<br>Vancouver, BC V6E 0C5<br>Attention: *[Redacted - Personal Information]*<br>Email: *[Redacted - Personal Information]*

Any such Notice so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a Business Day and the Notice is delivered, emailed or sent before 5:00 p.m. (Vancouver time) on such day. Otherwise, such Notice shall be deemed to have been given and made and to have been received on the next following Business Day. Any such Notice sent by mail shall be deemed to have been given and made and to have been received on the fifth Business Day following the mailing thereof; provided however that no such Notice shall be mailed during any actual or apprehended disruption of postal services. Any such Notice given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

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**7.2** **Further Assurances**

Each Party shall act in good faith in performing its obligations and exercising its rights under this Agreement, and shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the other Party may reasonably require from time to time for the purpose of giving effect to this Agreement, and shall use reasonable commercial efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this Agreement.

**7.3** **Assignment**

This Agreement is not assignable by any Party except: (a) with the prior written consent of the other Party, or (b) with respect to any assignment by the Investor to any Affiliate of the Investor, in which case no written consent of the Company shall be required, provided that the Investor gives prompt written Notice of such assignment to the Company and such Affiliate agrees to be bound by the terms of this Agreement and executes a written joinder to this Agreement.

**7.4** **Injunctive Relief**

Each Party agrees that any breach of the terms of this Agreement may result in immediate and irreparable injury and damage to the other Party for which the other Party could not be adequately compensated by damages. Each Party therefore agrees that, in the event of any such breach or any anticipated or threatened breach, the other Party shall be entitled to equitable relief by way of temporary or permanent injunction, without having to prove damages or post any bond, in addition to any other remedies (including damages) to which such Party may be entitled at law or in equity.

**7.5** **Entire Agreement**

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersede all prior agreements, understandings, negotiations and discussions, whether written or oral, with respect to the subject matter of this Agreement. There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter of this Agreement except as provided in this Agreement.

**7.6** **Time of Essence**

Time shall be of the essence of this Agreement.

**7.7** **Governing Law** 

This Agreement is governed by and shall be interpreted and construed in accordance with the Laws of the Province of British Columbia and the federal laws of Canada applicable therein. Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of the courts of the Province of British Columbia situated in the City of Vancouver and waives objection to the venue of any proceeding in such court or that such court provides an inconvenient forum.

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**7.8** **Severability**

If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated by this Agreement are fulfilled to the extent possible.

**7.9** **Waiver**

No waiver of any provision of this Agreement shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Agreement. Waiver of any provision shall not be deemed to waive the same provision after such waiver, or any other provision of this Agreement at any time.

**7.10** **Amendments**

This Agreement may be amended or supplemented only by a written agreement signed by each of the Parties.

**7.11** **Most Favoured Nation**

If the Company desires to enter into an agreement with more favourable terms than this Agreement with any new securityholder of the Company, then (a) the Company shall promptly provide prior written Notice thereof to the Investor and (b) the Company shall not grant more favourable terms to such new securityholders of the Company than are provided in this Agreement and the Investor shall get the benefit of the most favourable terms until such time as the Company enters into an amended agreement with the Investor providing such more favourable terms to the Investor.

**7.12** **Binding Effect**

This Agreement shall be binding upon the Parties, their heirs and legal personal representatives, and their respective permitted successors and permitted assigns.

**7.13** **Termination**

This Agreement shall terminate and all rights and obligations hereunder shall cease immediately upon the earlier of: (i) the date the Parties hereto agree in writing to terminate this Agreement, or (ii) the Partially-Diluted Ownership Percentage ceases to be at least 10% for a continuous period of at least 30 days (other than in cases where the Partially-Diluted Ownership Percentage falls below 10% due to the failure of the Company to use commercially reasonable efforts to obtain any required Shareholder, Exchange or other approval or authorization for any issuance of Securities to the Investor pursuant to its rights under Article 5 of this Agreement).

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**7.14** **Counterparts**

This Agreement may be executed by the Parties in any number of counterparts, each of which is deemed to be an original, and such counterparts together shall constitute one and the same instrument. Delivery of an executed signature page by email or other electronic means (including via DocuSign) shall be as effective as delivery of a manually executed counterpart of this Agreement.

[*Remainder of page intentionally left blank*]

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**IN WITNESS WHEREOF** the Parties have caused this Agreement to be duly executed as of the date first above written.

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| | |
|:---|:---|
| **SANDBOX ROYALTIES CORP.** | **SANDBOX ROYALTIES CORP.** |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]* |

---

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| | |
|:---|:---|
| **B2GOLD CORP.** | **B2GOLD CORP.** |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]* |

---

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**SCHEDULE "A"**<br>**PROCEDURES FOR REGISTRATION RIGHTS**

**1.1** **Registration Procedures**

In connection with the Company's Piggyback Registration obligations pursuant to Article 4 of the Agreement, the Company will use commercially reasonable efforts in accordance with Article 4 of the Agreement to effect the qualification of any Distribution of Qualifying Securities of the Investor in one or more Canadian jurisdictions as determined by the Company, and in pursuance thereof the Company will as expeditiously as practicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in accordance with Article 4 of the Agreement, prepare and file with the applicable Canadian securities authorities (collectively, the "**Canadian Securities Regulators**") a preliminary prospectus and, promptly thereafter, a final prospectus under and in compliance with the Applicable Securities Laws, relating to the Piggyback Registration, including all exhibits, financial statements and such other related documents required by the Canadian Securities Regulators to be filed therewith, and use its commercially reasonable efforts to cause such prospectus to be receipted; and the Company will furnish to the Investor and the lead underwriter or underwriters, if any, copies of such preliminary prospectus and final prospectus and any amendments or supplements in the form filed with the Canadian Securities Regulators, promptly after the filing of such preliminary prospectus and final prospectus, amendments or supplements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) prepare and file with the Canadian Securities Regulators such amendments and supplements to the preliminary prospectus and final prospectus as may be necessary to complete the Distribution of all such Qualifying Securities and as required under the *Securities Act* (British Columbia) or under any applicable provisions of Applicable Securities Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) notify the Investor and the lead underwriter or underwriters, if any, and (if requested) confirm such advice in writing, as soon as practicable after notice thereof is received by the Company: (i) when the preliminary prospectus and final prospectus or any amendment thereto has been filed and been receipted, and furnish to the Investor and lead underwriters or underwriters, if any, with copies thereof; (ii) of any request by the Canadian Securities Regulators for amendments to the preliminary prospectus or the final prospectus or for additional information; (iii) of the issuance by the Canadian Securities Regulators of any stop order or cease trade order relating to the prospectus or any order preventing or suspending the use of any preliminary prospectus or final prospectus or the initiation or threatening of any proceedings for such purposes; and (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Distribution of Qualifying Securities for offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promptly notify the Investor and the lead underwriter or underwriters, if any, when the Company becomes aware of the happening of any event as a result of which the prospectus contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement therein (in the case of the prospectus in light of the circumstances under which they were made) when such prospectus was delivered not misleading, fails to constitute full, true and plain disclosure of all material facts regarding the Qualifying Securities when such prospectus was delivered or if for any other reason it will be necessary during such time period to amend or supplement the preliminary prospectus or the final prospectus in order to comply with Applicable Securities Laws and, in either case as promptly as practicable, prepare and file with the Canadian Securities Regulators, and furnish to the Investor and the lead underwriter or underwriters, if any, a supplement or amendment to such preliminary prospectus or final prospectus which will correct such statement or omission or effect such compliance;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) use commercially reasonable efforts to obtain the withdrawal of any stop order, cease trade order or other order against the Company or affecting the securities of the Company suspending the use of any prospectus or suspending the qualification of the Distribution of any Qualifying Securities covered by the prospectus, or the initiation or the threatening of any proceedings for such purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) furnish to the Investor and each lead underwriter, if any, copies of the preliminary prospectus, final prospectus or any amendments or supplements thereto, and provide the Investor and its counsel with a reasonable opportunity to review and provide comments to the Company on the prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) deliver to the Investor and the underwriters, if any, without charge, as many commercial copies of the preliminary prospectus and the final prospectus and any amendment or supplement thereto as such Persons may reasonably request (it being understood that the preliminary prospectus and the final prospectus or any amendment or supplement thereto may only be used by the Investor and the underwriters, if any, in connection with the offering and sale of the Qualifying Securities covered by the preliminary prospectus and the final prospectus or any amendment or supplement thereto in accordance with Applicable Securities Laws and, if applicable, pursuant to the terms and conditions of an underwriting agreement in customary form to be entered into among the Company, the Investor and the underwriters, if any) and such other documents as the Investor may reasonably request in order to facilitate the disposition of the Qualifying Securities by such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) in connection with any underwritten offering enter into customary agreements, including an underwriting agreement with the underwriter or underwriters, such agreements to contain such representations, warranties and indemnities by the Company and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) use its commercially reasonable efforts to obtain a customary legal opinion, in the form and substance as is customarily given by external company counsel in securities offerings, addressed to the Investor and the underwriters, if any, and such other Persons as the underwriting agreement may reasonably specify, and a customary "comfort letter" from the Company's auditor and/or the auditors of any financial statements included or incorporated by reference in a prospectus;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) furnish to the Investor and the lead underwriter or underwriters, if any, and such other Persons as the Investor may reasonably specify, such corporate certificates, satisfactory to the Investor acting reasonably, as are customarily furnished in securities offerings, and, in each case, covering substantially the same matters as are customarily covered in such documents in the relevant jurisdictions and such other matters as the Investor may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) use commercially reasonable efforts to cause all Shares covered by the prospectus to be listed on each securities exchange or automated quotation system on which Shares are then listed or quoted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) take such other actions and execute and deliver such other documents as may be reasonably necessary to give full effect to the rights of the Investor under the Agreement.

**1.2** **Investor's Obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor will furnish to the Company such information regarding the Distribution of such Qualifying Securities and such other information relating to the Investor's ownership of Shares as the Company may from time to time reasonably request in writing in order to comply with Applicable Securities Laws in each jurisdiction in which a Piggyback Registration is to be effected. The Investor agrees to furnish such information to the Company and to cooperate with the Company as necessary to enable the Company to comply with the provisions of the Agreement and Applicable Securities Laws. The Investor will promptly notify the Company when the Investor becomes aware of the happening of any event (insofar as it relates to the Investor or information provided by the Investor in writing for inclusion in the applicable prospectus) as a result of which the prospectus contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement therein (in the case of the prospectus in light of the circumstances under which they were made) when such prospectus was delivered not misleading or, if for any other reason it will be necessary during such time period to amend or supplement the preliminary prospectus or the final prospectus in order to comply with securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) comply with Applicable Securities Laws in connection with the Investor effecting trades (as defined under Applicable Securities Laws) in the Qualifying Securities and the use of any preliminary prospectus, final prospectus or other qualification document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) comply with any applicable published policies, rules and regulations of the Canadian Securities Regulators and any stock exchange and over-the counter market on which the Qualifying Securities are then listed or quoted; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly review and comment on any draft documents provided to the Investor under Section 1.1 of this Schedule "A".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any underwritten offering in connection with a Piggyback Registration, the Investor will enter into customary agreements, including an underwriting agreement with the underwriter or underwriters, such agreements to contain such representations, warranties and indemnities by the Investor and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions.

**1.3** **Underwriters' Cutback**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, in connection with a Piggyback Registration, the lead underwriter or underwriters impose a limitation on the number or kind of securities which may be included in any such Distribution because, in its reasonable judgment, the inclusion of securities requested to be included in such offering exceeds the number of securities which can be sold in an orderly manner in such offering within a price range reasonably acceptable to the Company (an "Underwriters' Cutback"), then the Company will be obligated to include in such Distribution such securities as is determined in good faith by such lead underwriter or underwriters in the following priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, such securities offered by the Company for its own account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, if there are any additional securities that may be underwritten at no less than a price range reasonably acceptable to the Company, after allowing for the inclusion of all of the securities required under (i) above, such Qualifying Securities requested to be qualified by the Investor, provided that if any Qualifying Securities requested to be qualified by the Investor are not otherwise included in such Distribution, such Qualifying Securities that are not so included will be included, to the fullest extent possible, in an over-allotment option which will be granted to the underwriters in connection with such Distribution for such amount of Shares requested to be qualified by the Investor that were not otherwise included in such Distribution.

**1.4** **Withdrawal of Qualifying Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor will have the right to withdraw its request for inclusion of its Qualifying Securities in any Piggyback Registration pursuant to Section 4.1 of the Agreement by giving written notice to the Company of its request to withdraw; provided, however, that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such request must be made in writing prior to the execution of the enforceable bought deal letter or underwriting agreement with respect to such Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such withdrawal will be irrevocable and, after making such withdrawal, the Investor will no longer have any right to include its Qualifying Securities in the Distribution pertaining to which such withdrawal was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Provided that the Investor withdraws all of its Qualifying Securities from a Piggyback Registration in accordance with Section 1.4(a) of this Schedule "A" prior to the filing of a preliminary prospectus, the Investor will be deemed to not have participated in or requested such Piggyback Registration.

**1.5** **Expenses**

All expenses incurred in connection with a Piggyback Registration pursuant to Section 4.1 of the Agreement (excluding underwriters' discounts and commissions relating to the Qualifying Securities under the Piggyback Registration, if any, and applicable transfer taxes, if any, and the Investor's legal and professional fees, all of which will be borne by the Investor (the "**Investor's Expenses**")), including: (i) Canadian Securities Regulators, Canadian stock exchange registration listing and filing fees relating to the Qualifying Securities; (ii) fees and expenses of compliance with Applicable Securities Laws; (iii) printing and copying expenses; (iv) messenger and delivery expenses; (v) expenses incurred in connection with any road show and marketing activities; (vi) fees and disbursements of counsel to the Company; (vii) fees and disbursements of all independent public accountants (including the expenses of any audit and/or "comfort" letter) and fees and expenses of any other special experts retained by the Company; (viii) translation expenses; and (ix) any other fees and disbursements of underwriters customarily paid by issuers or sellers of securities (but excluding the Investor's Expenses), will be borne by the Company.

**1.6** **Due Diligence; Indemnification**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the preparation and filing of any prospectus in connection with a Piggyback Registration as herein contemplated, the Company will give the Investor, the underwriter or underwriters of such Distribution, if any, and their respective counsel, auditors and other representatives, the opportunity to fully participate in the preparation of such documents and each amendment thereof or supplement thereto, and will insert therein such material furnished to the Company in writing, which in the reasonable judgment of the Company and its counsel should be included, and will give each of them such reasonable and customary access to the Company's books and records and such reasonable and customary opportunity to discuss the business of the Company with its officers and auditors, and to conduct all reasonable and customary due diligence which the Investor and the underwriters or underwriter, if any, and their respective counsel may reasonably require in order to conduct a reasonable investigation in order to enable such underwriters to execute any certificate required to be executed by them in Canada for inclusion in such documents, provided that the Investor and the underwriters agree to maintain the confidentiality of such information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any Piggyback Registration, the Company will indemnify and hold harmless the Investor and its Affiliates and each of their respective directors, officers, employees and agents, shareholders, limited partners and underwriters, from and against any loss (excluding loss of profits), liability, claim, damage and expense whatsoever (including reasonable legal fees and expenses), including any amounts paid in settlement of any investigation, order, litigation, proceeding or claim, joint or several, incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prospectus, or any amendment or supplement thereto, including all documents incorporated therein by reference, or any omission or alleged omission therefrom of 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 or as incurred, arising out of or based upon any failure to comply with Applicable Securities Laws (other than any failure to comply with Applicable Securities Laws by the Investor); provided that the Company will not be liable under this Section 1.6(b) of this Schedule "A" for any settlement of any action effected without its written consent, which consent will not be unreasonably withheld or delayed; provided further that the indemnity provided for in this Section 1.6(b) of this Schedule "A" in respect of the Investor will not apply to any loss, liability, claim, damage or expense to the extent incurred, arising out of or based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by the Investor stating that such information is being provided for use in the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any Piggyback Registration, the Investor will indemnify and hold harmless the Company and each of its directors, officers, employees, agents and shareholders from and against any loss (excluding loss of profits), liability, claim, damage and expense whatsoever (including reasonable legal fees and expenses), including any amounts paid in settlement of any investigation, order, litigation, proceeding or claim, joint or several, as incurred, arising out of or based on any untrue statement or omission of a material fact, or alleged untrue statement or omission of a material fact, made or required to be made in the prospectus, as applicable, included in reliance upon and in conformity with written information furnished to the Company by the Investor about the Investor or its ownership of Qualifying Securities, stating that such information is being provided for use in the prospectus or as incurred arising out of or based upon any failure to comply with Applicable Securities Laws (other than any failure to comply with Applicable Securities Laws by the Company), including, for greater certainty, for any amounts paid pursuant to Section 1.6(b) of this Schedule "A"; provided that the Investor will not be liable under this Section 1.6(c) of this Schedule "A" for any settlement of any action effected without its written consent, which consent will not be unreasonably withheld or delayed; provided further that the indemnity provided for in this Section 1.6(c) of this Schedule "A" will not apply to any loss, liability, claim, damage or expense to the extent arising out of an untrue statement or omission or alleged untrue statement or omission contained in any prospectus relating to a Piggyback Registration if the Company or any underwriter failed to send or deliver a copy of the prospectus to the Person asserting such losses, liabilities, claims, damages or expenses on or prior to the delivery of written confirmation of any sale of securities covered thereby to such Person in any case where such prospectus corrected such untrue statement or omission; provided, further that in no event will the Investor be liable for indemnification or contribution for an amount greater than the lesser of: (i) the net sales proceeds actually received by the Investor; and (ii) the Investor's proportionate share of any such liability based on the net sales proceeds actually received by the Investor and the aggregate net sales proceeds of the Distribution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party entitled to indemnification under this Section 1.6 of this Schedule "A" (the "**Specified Indemnified Party**") will give written notice to the party required to provide indemnification (the "**Specified Indemnifying Party**") promptly after such Specified Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and will permit the Specified Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Specified Indemnifying Party, who will conduct the defense of such claim or litigation, will be approved by the Specified Indemnified Party (whose approval will not be unreasonably withheld), and the Specified Indemnified Party may participate in such defense at such party's expense, and provided further that the failure of any Specified Indemnified Party to give notice as provided herein will not relieve the Specified Indemnifying Party of its obligations under this Section 1.6 of this Schedule "A" unless the failure to give such notice is materially prejudicial to a Specified Indemnifying Party's ability to defend such action. A Specified Indemnified Party will have the right to retain its own counsel, with fees and expenses to be paid by the Specified Indemnifying Party, if representation of such Specified Indemnified Party by the counsel retained by the Specified Indemnifying Party would be inappropriate due to actual or potential conflicting interests between such Specified Indemnified Party and any other party represented by such counsel in such proceeding. No Specified Indemnifying Party, in the defense of any such claim or litigation, will, except with the consent of each Specified Indemnified Party, consent to entry of any judgment or enter into any settlement unless such settlement includes as an unconditional term thereof: (i) the giving by the claimant or plaintiff to such Specified Indemnified Party of a release from all liability in respect to such claim or litigation; (ii) no admission on the part of the Specified Indemnified Party that it violated any Law or infringed the rights of any person; and (iii) provides as the claimant's or plaintiff's sole relief monetary damages (that are paid in full by the Specified Indemnifying Party).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the indemnification provided for in this Section 1.6 of this Schedule "A" is held by a court of competent jurisdiction to be unavailable to a Specified Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to therein, then the Specified Indemnifying Party, in lieu of indemnifying such Specified Indemnified Party hereunder, will contribute to the amount paid or payable by such Specified Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the Specified Indemnifying Party on the one hand and of the Specified Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations, provided, however, that the liability of the Investor under this Section 1.6(e) of this Schedule "A" will not exceed the lesser of: (i) the net sales proceeds actually received by the Investor; and (ii) the Investor's proportionate share of any such liability based on the net sales proceeds actually received by the Investor and the aggregate net sales proceeds of the Distribution. The relative fault of the Specified Indemnifying Party and of the Specified Indemnified Party will be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Specified Indemnifying Party or by the Specified Indemnified Party and the parties' relative intent with respect to, knowledge regarding and opportunity to correct, such information. No Person guilty of fraudulent misrepresentation will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

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## Exhibit 4.3

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EXECUTION COPY

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].

**SANDBOX ROYALTIES CORP.**

-and-

**SANDSTORM GOLD LTD.**

------

**<br>AMENDED AND RESTATED**<br>**INVESTOR RIGHTS AGREEMENT**

<br>**June 5, 2024<br>**

<br> ------

------

**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
| [**ARTICLE 1 DEFINITIONS AND INTERPRETATION**](#page_3) | [**1**](#page_3) |
| [1.1 Definitions](#page_3) | [1](#page_3) |
| [1.2 Rules of Construction](#page_7) | [5](#page_7) |
| [1.3 Ownership Percentage](#page_7) | [5](#page_7) |
| [**ARTICLE 2 BOARD OF DIRECTORS**](#page_8) | [**6**](#page_8) |
| [2.1 Board Nominee](#page_8) | [6](#page_8) |
| [2.2 Management to Endorse and Vote](#page_9) | [7](#page_9) |
| [2.3 Observer](#page_9) | [7](#page_9) |
| [2.4 Rights and Privileges of Investor Nominee](#page_10) | [8](#page_10) |
| [**ARTICLE 3 STANDSTILL AND ESCROW**](#page_10) | [**8**](#page_10) |
| [3.1 Standstill](#page_10) | [8](#page_10) |
| [3.2 Escrow Requirements](#page_12) | [10](#page_12) |
| [**ARTICLE 4 REGISTRATION RIGHTS**](#page_12) | [**10**](#page_12) |
| [4.1 Piggyback Registration Rights](#page_12) | [10](#page_12) |
| [**ARTICLE 5 PARTICIPATION RIGHTS**](#page_13) | [**11**](#page_13) |
| [5.1 Participation Right](#page_13) | [11](#page_13) |
| [5.2 Top-Up Rights](#page_15) | [13](#page_15) |
| [**ARTICLE 6 GENERAL**](#page_17) | [**15**](#page_17) |
| [6.1 Notices](#page_17) | [15](#page_17) |
| [6.2 Further Assurances](#page_18) | [16](#page_18) |
| [6.3 Ownership of Shares](#page_18) | [16](#page_18) |
| [6.4 Additional Information Right](#page_18) | [16](#page_18) |
| [6.5 Assignment](#page_18) | [16](#page_18) |
| [6.6 Injunctive Relief](#page_18) | [16](#page_18) |
| [6.7 Entire Agreement](#page_19) | [17](#page_19) |
| [6.8 Time of Essence](#page_19) | [17](#page_19) |
| [6.9 Governing Law](#page_19) | [17](#page_19) |
| [6.10 Severability](#page_19) | [17](#page_19) |
| [6.11 Waiver](#page_19) | [17](#page_19) |
| [6.12 Amendments](#page_20) | [18](#page_20) |
| [6.13 Most Favoured Nation](#page_20) | [18](#page_20) |
| [6.14 Binding Effect](#page_20) | [18](#page_20) |
| [6.15 Termination](#page_20) | [18](#page_20) |
| [6.16 Counterparts](#page_20) | [18](#page_20) |

---

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<u>**AMENDED AND RESTATED**</u><br><u>**INVESTOR RIGHTS AGREEMENT**</u>

**THIS AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT** (this "**Agreement**") is made as of the 5<sup>th</sup> day of June, 2024

**BETWEEN**:

**SANDBOX ROYALTIES CORP.**, a corporation incorporated under the laws of the Province of British Columbia

(the "**Company**")

**AND**:

**SANDSTORM GOLD LTD.**, a corporation incorporated under the laws of the Province of British Columbia

(the "**Investor**")

**WHEREAS**:

A. The Company and the Investor (each, a "**Party**" and together the "**Parties**") entered into a share purchase agreement dated May 26, 2022 (the "**Purchase Agreement**"), pursuant to which the Company purchased all of the issued and outstanding securities of 1348897 B.C. Ltd. (the "**Purchased Shares**") from the Investor on June 28, 2022;

B. As part of the consideration payable for the Purchased Shares, the Company issued Shares (as defined below) to the Investor; and

C. As a condition to the completion of the transactions contemplated in the Purchase Agreement, the Company has agreed to grant certain rights to the Investor, and the Investor has agreed to make certain covenants in favour of the Company, each on the terms and subject to the conditions set out in this Agreement;

**NOW THEREFORE**, in consideration of the respective covenants and agreements of the Parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each Party, the Parties agree as follows:

**ARTICLE 1**<br>**DEFINITIONS AND INTERPRETATION**

**1.1 Definitions**

In this Agreement, capitalized terms used but not defined in this Agreement shall have the meanings given in the Purchase Agreement and, unless otherwise indicated, the following terms have the following meanings:

------

"**Affiliate**" means any Person Controlling, Controlled by, or under common Control with, another Person;

"**Applicable Laws**" means applicable laws, including international, national, provincial, state, municipal and local laws, treaties, statutes, ordinances, judgments, decrees, injunctions, writs, certificates and orders, by-laws, rules, regulations, ordinances, or other requirements of any Governmental Entity having the force of law;

"**Applicable Securities Laws**" means all applicable Canadian securities laws and the respective rules and regulations under such laws together with applicable published instruments, notices and orders of the securities regulatory authorities;

"**Board**" means the board of directors of the Company;

"**Board Materials**" has the meaning set out in Section 2.3(a);

"**Bought Deal**" means a fully underwritten offering on a bought deal basis pursuant to which an underwriter has committed to purchase securities of the Company pursuant to a "bought deal" letter prior to the filing of a prospectus or a prospectus supplement or a distribution pursuant to an overnight marketed offering;

"**Business Day**" means any day other than a Saturday, Sunday or any other day in which banks in the Province of British Columbia are authorized or required by Applicable Laws to be closed;

"**Change of Control Transaction**" means a merger, amalgamation, reorganization, business combination, tender offer, exchange offer, take-over bid, statutory arrangement or similar transaction involving the Company or its securities resulting in a change of Control of the Company or a sale, transfer, lease or other disposition of all or substantially all of its assets, provided that a Change of Control Transaction shall not include any transaction between the Investor and any Affiliate of the Investor;

"**Control**" means: (a) in respect of a corporation, the ability of a Person or group of Persons acting in concert to influence the manner in which the business of such corporation is carried on, whether as a result of ownership of sufficient voting shares of such corporation to entitle that Person or group of Persons to elect a majority of the directors of such corporation or by contract or otherwise, (b) in respect of a partnership, trust, syndicate or other entity, the actual power or authority to manage and direct the affairs of, or ownership of more than 50% of the transferable beneficial interests in, such entity, or (c) any other relationship as, in fact, constitutes actual control of a Person;

"**Credible Bid**" means any take-over bid (including an amended take-over bid) other than a take-over bid (a) that the Board has determined in good faith, after consultation with its financial and legal advisors, is not reasonably capable of being completed in accordance with its terms, (b) in respect of which the Company has publicly announced the Board's conclusion no later than seven Business Days following the date on which such take-over bid is commenced or the intention to make such take-over bid (together with the material terms of the bid) is publicly announced and, in the absence of such announcement, such bid shall be deemed to be a Credible Bid, or (c) initiated by the Investor, any Affiliate of the Investor, or any Person acting jointly or in concert with any of the foregoing in any manner contrary to the Investor's covenants and obligations in Section 3.1. In addition, in the event the Company or the Board chooses to recommend or support a bid such bid shall be deemed to be a Credible Bid;

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"**Dilutive Issuance**" has the meaning set out in Section 5.2(a)(i);

"**Director**" means a member of the Board;

"**Director Eligibility Criteria**" has the meaning set out in Section 2.1(d);

"**Distribution**" means a distribution or sale of Shares (or any other Subject Securities) to the public by means of a prospectus under Applicable Securities Laws;

"**Distribution Notice**" has the meaning set out in Section 4.1(a);

"**Effective Date**" means June 28, 2022;

"**Escrow**" has the meaning set out in Section 3.2;

"**Exchange**" means the TSX Venture Exchange, the NEO Exchange, the Toronto Stock Exchange or such other stock exchange(s) and quotation service(s), if any, as the Shares may be listed or quoted on, as applicable, from time to time;

"**Exempt Issuance**" means any of the following issuances by the Company of Securities: (a) the granting of stock options, deferred share units, restricted share units, bonus shares, or other Securities under any security or share-based compensation arrangement of the Company, (b) an issuance of Securities to all holders of Securities, on a pro rata basis, pursuant to a consolidation, subdivision, share dividend, recapitalization, reclassification, share exchange, rights offering or other similar transaction, or (c) an issuance of Securities pursuant to a regular dividend reinvestment or other plan of the Company made available by the Company to the holders of Securities where such plan permits the holder to direct that the dividends paid in respect of such Securities be applied to the purchase from the Company of further Securities;

"**Exercise Notice**" has the meaning set out in Section 5.2(c);

**"Financial Year**" means the twelve-month period ending on the last day of December in each year;

"**Governmental Entity**" means any domestic or foreign: (a) federal, provincial, state, municipal, local or other government, (b) governmental or quasi-governmental authority of any nature, including any governmental ministry, agency, branch, department, court, commission, board, tribunal, bureau or instrumentality, (c) Exchange or securities regulatory authority, or (d) body exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power of any nature;

**"IFRS"** means International Financial Reporting Standards, consistently applied;

"**Investor Nominee**" means the Director who is nominated by the Investor by notice in writing to the Company and elected or appointed from time to time to the Board pursuant to the terms of this Agreement;

------

"**Market Price**" on any date, means the greater of the volume weighted average trading price of the Shares for the five trading days immediately prior to such date on such Exchange as the Shares are then principally traded and the minimum price permitted by such Exchange;

"**Nomination Notice**" has the meaning set out in Section 2.1(e);

"**Notice**" has the meaning set out in Section 6.1;

"**Observer**" has the meaning set out in Section 2.3;

"**Ownership Percentage**" has the meaning set out in Section 1.3(a);

"**Original Investor Rights Agreement**" means the investor rights agreement between the Company and the Investor dated June 28, 2022;

"**Participation Right**" has the meaning set out in Section 5.1(b);

"**Person**" means any individual, sole proprietorship, partnership, firm, entity, joint venture, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Entity, and where the context requires, any of the foregoing when they are acting as trustee, executor, administrator or other legal representative;

"**Piggyback Registration**" has the meaning set out in Section 4.1(a);

"**Qualifying Securities**" means (i) any Shares held by the Investor including any Shares issuable or issued upon conversion of Subject Securities held by the Investor; and (ii) all Shares directly or indirectly issued or issuable with respect to the securities referred to in paragraph (i) above by way of share dividend or share split or in connection with a combination of shares, recapitalization, merger consolidation or other reorganization;

"**Securities**" means the Shares and/or Subject Securities, as the case may be;

"**Shareholder**" means a holder of Shares;

"**Shares**" means common shares in the capital of the Company;

"**Standstill Period**" means the period of time commencing on the Effective Date and ending on the earlier of: (a) the date which is 12 months following the Effective Date and (b) the date on which the Ownership Percentage ceases to be at least 10%;

"**Subject Securities**" means any securities of the Company convertible into or exercisable or exchangeable for Shares, including convertible debt securities and rights to purchase equity securities;

"**Subsequent Offering**" has the meaning set out in Section 5.1(a);

"**Subsequent Offering Notice**" has the meaning set out in Section 5.1(a);

"**Top-up Notice**" has the meaning set out in in Section 5.2(b);

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"**Top-up Offering**" has the meaning set out in Section 5.2(d);

"**Top-up Right**" has the meaning set out in Section 5.2(a)(i);

"**Top-up Shares**" has the meaning set out in in Section 5.2(a)(i); and

"**Top-up Threshold**" has the meaning set out in Section 5.2(a)(ii).

**1.2 Rules of Construction**

In this Agreement, unless otherwise expressly stated or the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the terms "Agreement", "this Agreement" and similar expressions refer to this Agreement in its entirety and not to any particular provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) references to an "Article" or "Section" followed by a number or letter refer to the specified Article or Section of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing the singular number only shall include the plural and vice versa, and words importing the use of any gender shall include all genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the word "including" is deemed to mean "including without limitation" and all similar variations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any reference to this Agreement, or to any other contract, document or other instrument, includes, and is a reference to, this Agreement or such other contract, document or other instrument, as the same may have been, or may from time to time be, amended, restated, replaced, supplemented or novated, and includes any schedules or exhibits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any reference to a statute refers to such statute, and all rules and regulations made under such statute, as the same may have been amended, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any time period within which a payment is to be made or any other action is to be taken under this Agreement shall be calculated excluding the day on which the period commences and including the day on which the period ends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) whenever any action is required to be taken or period of time is to expire on a day other than a Business Day, such action shall be taken or period shall expire on the next following Business Day.

**1.3 Ownership Percentage**

(a) Subject to Section 1.3(b), for purposes of this Agreement "**Ownership Percentage**" means, at a particular time, the percentage ownership interest of the Investor and each Affiliate of the Investor, taken as a whole, in the equity capital of the Company, which shall be calculated by dividing (i) the number of Shares held by the Investor by (ii) the total number of Shares issued and outstanding at such time. In the case of both (i) and (ii), the number of Shares used in the calculation will assume the exercise/and or exchange and/or conversion, by the Investor and its Affiliate(s) only, of any Subject Securities held by the Investor and its Affiliate(s) at such time.

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(b) In determining the Ownership Percentage, any Shares issued as a result of a Subsequent Offering or Dilutive Issuance shall be disregarded and the Investor shall be deemed to own the percentage of Shares it would have held at such time if such Subsequent Offering or Dilutive Issuance, as the case maybe, had not occurred unless and until the Company has delivered to the Investor, as applicable (i) a Subsequent Offering Notice in respect of such Subsequent Offering and the Investor fails to provide a Subscription Notice to the Company within the time required in Section 5.1(b), in which case the Shares issued in connection with such Subsequent Offering shall be included in the total number of Shares issued and outstanding for purposes of determining the Ownership Percentage; or (ii) a Top-up Notice in respect of such Dilutive Issuance and the Investor fails to provide an Exercise Notice to the Company within the time required in Section 5.2(c), in which case the Shares issued in connection with such Dilutive Issuance shall be included in the total number of Shares issued and outstanding for purposes of determining the Ownership Percentage.

**ARTICLE 2**<br>**BOARD OF DIRECTORS**

**2.1 Board Nominee**

(a) The Investor shall have the right but not the obligation to designate one Investor Nominee for election to the Board. For greater clarity, the Investor shall no longer be entitled to designate an Investor Nominee after the date on which this Agreement has been terminated in accordance with Section 6.15.

(b) The Company agrees that, following the Effective Date, the Board shall appoint an initial Investor Nominee (and/or the Company shall otherwise take all other steps required under corporate law to appoint or elect such initial Investor Nominee) to serve on the Board until the next annual general meeting of Shareholders; provided that the Investor Nominee (i) is identified by the Investor to the Company, (ii) consents in writing to serve as a director, and (iii) meets the Director Eligibility Criteria.

(c) The Company agrees to nominate and recommend for election, at each meeting of Shareholders at which Directors are to be elected, the Investor Nominee designated by the Investor in accordance with Section 2.1(e).

(d) The Investor agrees that the initial Investor Nominee and any replacement Investor Nominee shall be mutually agreeable to the Investor and the Company, acting reasonably, having regard to the skills matrix and requirements of the Board (as determined in good faith by the Board or an authorized committee of the Board and including, for greater certainty, any Applicable Laws or Exchange rules or policies) for Director candidates, and such individual consents in writing to serve as a Director (the "**Director Eligibility Criteria**").

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(e) The Company shall provide the Investor with written Notice (the "**Nomination Notice**"), promptly, and in any event, not less than 60 days in advance of the date set for the meeting of Shareholders at which Directors are to be elected. The Nomination Notice shall include a request for the identification of any Investor Nominee and the detailed information required to be included in an information circular with respect to the appointment of any Investor Nominee. The Investor shall be required to, not later than 45 days in advance of the date set for a meeting of Shareholders of which the Investor is notified pursuant to this Section 2.1(e), provide the Company with written Notice of the identity and particulars requested in the Nomination Notice. If the Investor does not advise the Company of the identity of the Investor Nominee at least 45 days prior to the date set for the meeting of Shareholders at which Directors are to be elected (for any reason other than failure by the Company to provide the Investor with the Nomination Notice within the period prescribed by this Section 2.1(e)), then the Investor will be deemed to have nominated the incumbent Investor Nominee.

(f) If an incumbent Investor Nominee ceases to serve as a Director, whether due to such Investor Nominee's death, disability, resignation or removal, the Investor shall have the right to nominate a replacement Investor Nominee and the Company shall cause the Board to appoint, as soon as practicable, such replacement Investor Nominee in accordance with this Agreement to fill the vacancy caused by such death, disability, resignation or removal, provided that such Investor Nominee satisfies the Director Eligibility Criteria and the Investor remains eligible to nominate such Investor Nominee pursuant to Section 2.1(a).

(g) If the Investor ceases to have any right to appoint an Investor Nominee pursuant to Section 2.1(a), the Investor shall use commercially reasonable efforts to, unless requested otherwise by the Company, cause the Investor Nominee to forthwith resign from the Board.

**2.2 Management to Endorse and Vote**

The Company agrees that management of the Company shall, in respect of every meeting of Shareholders at which the election of Directors is to be considered, and at every reconvened meeting following an adjournment or postponement of such meeting, endorse and recommend the Investor Nominee identified in the Company's proxy materials for election to the Board, so long as such Investor Nominee satisfies the Director Eligibility Criteria, and shall vote any Shares in respect of which management is granted a discretionary proxy in favour of the election of such Investor Nominee to the Board at every such meeting.

**2.3 Observer**

(a) If, at any time or from time to time, the Investor is entitled to nominate an Investor Nominee pursuant to Section 2.1, but has not done so, the Investor shall be entitled to designate one individual (who may change from time to time upon 30 days' written Notice to the Company) as an observer (an "**Observer**") to attend all meetings of the Board. The Observer shall have the right to receive notice of, and review the same information and materials ("**Board Materials**") as are provided to Directors for, such meetings and to speak at such meetings, but shall not be entitled to vote. The Company shall deliver to the Observer copies of any resolutions proposed to be adopted by the Board at the same time as such resolutions are circulated to members of the Board or any committee of the Board. Prior to the Observer attending the first meeting of the Board, the Investor shall cause the Observer to sign a customary non-disclosure agreement provided by the Company, provided that any such non-disclosure agreement is reasonable in both form and in substance, and sign an acknowledgement agreeing to be bound by the Company's disclosure and insider trading policies. The Observer shall be reimbursed for all reasonable expenses related to attending all meetings of the Board on a basis that is consistent with the Company's policies for Director reimbursement, as if the Observer were a member of the Board.

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(b) Notwithstanding anything to the contrary in this Agreement, the Company may exclude the Observer from access to any Board Materials or from any meeting of the Board or any committee of the Board (or any portion of such meeting) if the Board concludes that: (i) such exclusion is necessary to preserve the solicitor-client or litigation privilege between the Company and/or its Affiliates and their respective counsel (provided that any such exclusion shall only apply to such portion of such Board Materials or meeting which would be required to preserve such privilege); (ii) such Board Materials or discussion relates to the Company's or its Affiliates' relationship, contractual or otherwise, with the Investor or its Affiliates or any actual or potential transactions between or involving the Company or its Affiliates and the Investor or its Affiliates; (iii) such exclusion is necessary to avoid a conflict of interest or disclosure that is restricted by any agreement to which the Company or any of its Affiliates is a party or otherwise bound; or (iv) such exclusion is necessary to comply with Applicable Laws.

**2.4 Rights and Privileges of Investor Nominee**

(a) The Investor Nominee shall be entitled to the benefit of any directors' liability insurance or indemnity to which other Directors are entitled.

(b) The Investor Nominee shall be reimbursed for all reasonable expenses related to their service on the Board on a basis that is consistent with the Company's policies for Director reimbursement. The Investor Nominee shall be entitled to compensation consistent with the compensation received by other non-employee independent members of the Board, including any fees and equity awards.

**ARTICLE 3**<br>**STANDSTILL AND ESCROW**

**3.1 Standstill** 

(a) The Investor covenants and agrees that, during the Standstill Period, it shall not, and it shall cause its Affiliates not to, in any manner, directly or indirectly, or in concert with any other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) propose or seek to effect any Change of Control Transaction, including by entering into a support agreement or lock-up agreement in respect of such a transaction, provided that for greater certainty, the Investor and its Affiliates shall be permitted to tender to, vote in favour of, and/or enter into a support agreement or lock-up agreement in respect of a Change of Control Transaction supported by a majority of the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) solicit proxies from Shareholders or form, join, support or participate in a group to solicit proxies from Shareholders with a view to replacing the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase, offer or agree to purchase or negotiate to purchase any Securities that would cause the Ownership Percentage to exceed 34%, or assets of the Company, other than as contemplated in the Purchase Agreement or any Closing Document (as defined in the Purchase Agreement), without the advance written authorization of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) advise or encourage any Person proposing any of the foregoing (including forming a "group" with any such Person); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) make any public announcement or take any action in furtherance of the foregoing.

(b) Notwithstanding Section 3.1(a), the Investor and its Affiliates shall not be restricted from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) acquiring Securities with the prior written consent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) making a confidential proposal to the Board regarding any of the transactions or activities contemplated in Section 3.1(a), entering into discussions or negotiations with the Board or the Company with respect to the terms of any such proposal, and entering into any agreement with the Company providing for the consummation of such proposal; provided that the Investor shall not make any public disclosure of the making of or terms of such proposal except with the prior written consent of the Company, such consent not to be unreasonably withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) acquiring Securities upon exercise, exchange or conversion of any Subject Securities in accordance with their respective terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) exercising any rights of the Investor under the Purchase Agreement or the Closing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquiring Securities in accordance with the terms of the Participation Rights set forth in Section 5.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) acquiring Securities in accordance with the terms of the Top-Up Rights set forth in Section 5.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) participating in rights offerings conducted by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) receiving stock dividends or similar distributions made by the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) provided that the Investor has not breached Section 3.1(a), tendering Shares to a formal take-over bid for the Shares or any similar transaction by an arm's length third party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) disposing of Shares by operation of a statutory amalgamation, merger, arrangement, business combination or other statutory procedure involving the Company or the Shares.

(c) Section 3.1(a) shall cease to be of any force or effect: (i) as of the public announcement or public disclosure of (A) commencement of a Credible Bid, or an intention to undertake a Credible Bid, for voting or equity securities of the Company or any of its Affiliates, (B) any agreement, arrangement or understanding in respect of a merger, amalgamation, arrangement, asset purchase or other business combination transaction involving the Company or any of its Affiliates, or an intention to make an offer to the Company or any of its Affiliates to undertake such a transaction, which would, if completed, result in (y) any class of outstanding voting securities of the Company being converted into cash or securities of another person resulting in shareholders (excluding, for the avoidance of doubt, any shareholder who is acquiring voting securities of the Company as part of the transaction) holding less than 50% of the voting securities of the resulting or surviving entity, or (x) all or substantially all of the Company's assets being sold to any person or group (other than the Investor), (C) the commencement of any proceeding by or against the Company in connection with the dissolution, liquidation, winding up, bankruptcy or similar reorganization of the Company, (D) the appointment of a trustee, receiver, manager or other administrator of the Company or any of its material properties or assets, or (E) the Company seeking protection under the *Bankruptcy and Insolvency Act* (Canada), the *Companies' Creditors Arrangement Act* (Canada) or similar legislation; or (ii) if the Company is in material default of this Agreement and such default continues for a period of 30 days after the Company receives written Notice of such default from the Investor.

**3.2 Escrow Requirements**

The Investor agrees to comply with and be bound by any escrow requirements ("**Escrow**") imposed by any Exchange in connection with the closing of the Go Public Transaction (as defined in the Purchase Agreement).

**ARTICLE 4**<br>**REGISTRATION RIGHTS**

**4.1 Piggyback Registration Rights**

Provided that the Investor has at least a 15% Ownership Percentage,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time, the Company agrees to or announces a Distribution, other than by way of a Bought Deal, the Company shall promptly give the Investor seven Business Days' prior written notice of the proposed Distribution (the "**Distribution Notice**"), including proposed pricing (provided that in the event the proposed pricing of the Distribution is not determinable as of the date of the Distribution Notice, such information may be omitted from the Distribution Notice, but, shall, in any event, be communicated to the Investor in writing no later than five Business Days prior to the proposed closing date of the Distribution). Upon the written request of the Investor given within five Business Days after receipt of the notice of the proposed Distribution from the Company, the Company shall use commercially reasonable efforts to, in conjunction with the proposed Distribution, cause to be qualified in such offering all or any whole number of Shares held by the Investor in accordance with the procedures set forth in Schedule "A" hereto (a "**Piggyback Registration**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the proposed Distribution is not completed within 180 days of a notice of a Piggyback Registration, the related notice of a Piggyback Registration delivered by the Investor hereunder shall be deemed to be withdrawn and the Company shall again be required to comply with the procedures set out in this Section 4.1 with respect to any proposed Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Company is proposing to undertake a Bought Deal, the Company shall give such notice to the Investor, including anticipated pricing, as early as practicable in the circumstances in light of the speed and urgency under which Bought Deals are conducted (but not less than three Business Days prior to the launch of such Bought Deal). The Investor shall have two Business Days from the date the Company advises it of such proposed Bought Deal to notify the Company of the number of Qualifying Securities that the Investor requests to be included in such Bought Deal; unless otherwise agreed to by the Company, such amount not to exceed the proportion in the Bought Deal that the Shares held by the Investor represent of all Shares issued and outstanding at such time. The Company shall use commercially reasonable efforts to include such Shares in any Bought Deal, and, if so included, the procedures set forth in Schedule "A" hereto shall apply to such Distribution.

Notwithstanding anything herein to the contrary, this Article 4 shall not apply to a Distribution that is an initial public offering of Shares by the Company.

**ARTICLE 5**<br>**PARTICIPATION RIGHTS**

**5.1 Participation Right** 

(a) If the Company issues any Securities other than pursuant to an Exempt Issuance (any such issuance, a "**Subsequent Offering**"), then the Company shall promptly, and, in any event no later than one Business Day following the public announcement of such Subsequent Offering (and if the Subsequent Offering is not announced, no later than ten days prior to the closing date for the issuance of the securities in the Subsequent Offering), provide a written Notice (the "**Subsequent Offering Notice**") to the Investor setting out: (i) the number of Securities issued or contemplated to be issued in connection with the Subsequent Offering (and the maximum number of additional Securities that may be issuable upon the exercise of any other participation rights or pre-emptive right provided to any third party) and the total number of Shares and Subject Securities issued and outstanding as of the close of business on the Business Day immediately preceding the Subsequent Offering Notice; (ii) the material terms and conditions of any Subject Securities issued or contemplated to be issued in connection with the Subsequent Offering, including any term sheets or offer sheets, if any; (iii) the subscription price per Share or Subject Security issued or to be issued in connection with the Subsequent Offering; and (iv) the proposed closing date for the issuance of Securities to the Investor, assuming the Investor exercises its Participation Rights, which closing date shall be the later of (A) ten days following the date of the Subsequent Offering Notice, (B) the closing date set for the Subsequent Offering, (C) if Shareholder approval is required under Applicable Laws for the Company to complete the issuance of Securities to the Investor pursuant to its exercise of its Participation Rights, the Business Day following receipt of such Shareholder approval, or (D) such other date as the Company and the Investor may agree.

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(b) Subject to the receipt by the Company of all required regulatory approvals and compliance with Applicable Laws, the Investor shall have the right (the "**Participation Right**"), upon providing notice ("**Subscription Notice**") to the Company within ten Business Days, or three Business Days in the case of a Bought Deal, following receipt of the Subsequent Offering Notice that it intends to exercise its Participation Right, in whole or in part, to subscribe for and to be issued, on the same terms and conditions of such Subsequent Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Subsequent Offering of Shares, up to such number of Shares that will allow the Investor to maintain the Ownership Percentage held immediately prior to the completion of the Subsequent Offering (factoring in the exercise of any other participation rights or pre-emptive rights provided to any third parties); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Subsequent Offering of Subject Securities, up to such number of Subject Securities that will (assuming the conversion, redemption, exercise or exchange of all Subject Securities issuable in connection with the Subsequent Offering and of all Subject Securities issuable pursuant to the Participation Right) allow the Investor to maintain the Ownership Percentage held immediately prior to the completion of the Subsequent Offering (factoring in the exercise of any other participation rights or pre-emptive rights provided to any third parties).

In the Subscription Notice, the Investor shall specify the number of Shares and Subject Securities beneficially owned, directly or indirectly, by it and its Affiliates as at the date of the Subsequent Offering Notice, and the number of Securities for which the Investor is subscribing. In the case of a Subsequent Offering that is qualified by a prospectus, the Company will use commercially reasonable efforts to qualify the Securities subscribed for by the Investor pursuant to such prospectus, failing which the Securities subscribed for by the Investor will be issued on a private placement basis concurrently with the closing of the Subsequent Offering, subject to receipt of any required Shareholder approval and Exchange or other regulatory approvals. The Company will use its commercially reasonable efforts to promptly obtain (including by applying for any necessary price protection confirmations) all necessary Exchange approvals for the listing of all Shares (including Shares underlying Subject Securities) to be issued to the Investor pursuant to this Article 4.

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(c) If the Investor exercises the Participation Rights and the Company is required, under the rules and policies of the Exchange or applicable securities Laws, to seek Shareholder approval for the issuance of Securities to the Investor pursuant to this Section 5.1, the Company shall use commercially reasonable efforts to, at its expense, duly call and hold a meeting of its Shareholders to consider (and the Company shall recommend that Shareholders vote in favour of) the issuance of the Securities to the Investor within 75 days after the date that the Investor is advised by the Exchange that it will require such Shareholder approval. The Investor may close any such issuance of Securities prior to obtaining Shareholder approval; provided that, during the period between the closing of any such Subsequent Offering and the date of the Shareholder meeting to consider the issuance of the Securities to the Investor, the Ownership Percentage shall be deemed to be the Ownership Percentage immediately prior to the closing of the Subsequent Offering.

(d) For greater clarity, in the event the Company grants any other participation right(s) or pre-emptive right(s) to any third party or parties, the Company shall ensure such right(s) is or are subject to the Participation Right of the Investor provided by this Article 5, and the Company shall ensure additional Securities are offered for issuance to the Investor so as to allow the Investor to maintain its Ownership Percentage (factoring in the exercise of any such other participation right(s) or pre-emptive right(s) provided to any third party or parties).

**5.2 Top-Up Rights** 

(a) Without limiting Section 5.1, at any time and from time to time after the Effective Date, the Company agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Investor (directly or through an Affiliate) shall have the right (the "**Top-up Right**") to subscribe for and to be issued in connection with the issuance of Shares pursuant to: (A) any security-based compensation arrangements of the Company; and (B) the conversion, exercise or exchange of Subject Securities issued prior to or after the date of this Agreement (any, a "**Dilutive Issuance**") and (c) any other issuance of Shares where the Participation Right did not apply, up to such number of Shares that will allow the Investor to maintain or acquire up to the Ownership Percentage that is the same as the Ownership Percentage that the Investor would have had but for the Dilutive Issuance referenced in the Top-Up Notice (the "**Top-up Shares**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Top-up Right shall be exercisable from time to time following Dilutive Issuances that result in the reduction of the Ownership Percentage by an aggregate of 1.0% or more (the "**Top-up Threshold**"). The Top-up Threshold shall be calculated by aggregating all Dilutive Issuances that occurred in each case from the later of: (i) the date of this Agreement; (ii) the date of the last Top-up Notice; and (iii) the date of completion of the last Top-up Offering.

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(b) Subject to Section 5.2(e), within five Business Days of the end of each six month period ending March 31 and September 30 during which one or more Dilutive Issuances occurred resulting in the Top-up Threshold being achieved, the Company shall deliver a written Notice (a "**Top-up Notice**") to the Investor containing the number of Subject Securities converted, exercised or exchanged into Shares, and the total number of issued and outstanding Shares following such Dilutive Issuances and any other conversions, exercises and exchanges of Subject Securities, in each case from the later of (A) the date of this Agreement, (B) the date of the last Top-up Notice, and (C) the date of completion of the last Top-up Offering.

(c) If the Investor wishes to exercise the Top-up Right, the Investor shall give written Notice to the Company (the "**Exercise Notice**") of its intention to exercise such right and of the number of Top-up Shares the Investor wishes to subscribe for and purchase pursuant to the Top-up Right. The Investor shall deliver an Exercise Notice to subscribe to the Top-up Offering or issuance of Top-up Shares, within 15 Business Days after the date of receipt of a Top-up Notice, failing which the Investor will not be entitled to exercise the Top-up Right in respect of such issuance of Top-up Shares.

(d) If the Investor delivers an Exercise Notice in accordance with Section 5.2(c), the Company shall in accordance with the provisions of this Section 5.2, promptly, and in any event within 30 days of the date on which the relevant Exercise Notice was delivered (or such later date as may be reasonably necessary to obtain any necessary Shareholder approval), complete an offering to the Investor of the number of Top-up Shares the Investor wishes to subscribe for pursuant to the Top-up Right, as specified in the Exercise Notice, at an offering price per Top-up Share equal to the Market Price on the date the Top-up Notice was delivered to the Investor (each, a "**Top-up Offering**"). For greater certainty, each Top-up Offering will be an offering of Shares.

(e) Notwithstanding any other provision of this Article 4 to the contrary, if a Top-up Threshold is achieved, or is determined by the Company, acting reasonably, to be likely to occur prior to the date on which a record date for any meeting of Shareholders is to be set, the Company shall deliver a Top-up Notice to the Investor at least 20 Business Days prior to such record date or such shorter period prior to such record date as may be agreed in writing between the Investor and the Company upon confirmation by the Company that it has all necessary authorizations and approvals to complete the Top-up Offering within such shortened period. If the Investor delivers an Exercise Notice in accordance with Section 5.2(c) or during such shortened notice period as may have been agreed between the Company and the Investor pursuant to this Section 5.2(e) in response to a Top-up Notice delivered pursuant to Section 5.2(b), the Company shall in accordance with the provisions of this Section 5.2(e), promptly, and in any event prior to declaring the record date for such Shareholder meeting, complete a Top-up Offering to the Investor.

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**ARTICLE 6**<br>**GENERAL**

**6.1 Notices**

All notices, demands or other communications (in any case, a "**Notice**") to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient or by email addressed to the recipient. Each Notice shall be delivered, mailed or sent electronically to the Parties at the respective addresses or email addresses indicated below:

If to the Company:

Sandbox Royalties Corp.

Suite 3200-733 Seymour Street

Vancouver, BC V6B 0S6

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with a copy (which shall not constitute notice) to:

Blake, Cassels & Graydon LLP

Suite 3500 - 1133 Melville Street

Vancouver, BC V6E 4E5

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

If to the Investor:

Sandstorm Gold Ltd.

Suite 3200-733 Seymour Street

Vancouver, BC V6B 0S6

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with a copy (which shall not constitute notice) to:

Cassels Brock & Blackwell LLP

Suite 2200, HSBC Building

885 West Georgia Street

Vancouver, BC V6C 3E8

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

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Any such Notice so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a Business Day and the Notice is delivered, emailed or sent before 5:00 p.m. (Vancouver time) on such day. Otherwise, such Notice shall be deemed to have been given and made and to have been received on the next following Business Day. Any such Notice sent by mail shall be deemed to have been given and made and to have been received on the fifth Business Day following the mailing thereof; provided however that no such Notice shall be mailed during any actual or apprehended disruption of postal services. Any such Notice given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

**6.2 Further Assurances**

Each Party shall act in good faith in performing its obligations and exercising its rights under this Agreement, and shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the other Party may reasonably require from time to time for the purpose of giving effect to this Agreement, and shall use reasonable commercial efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this Agreement.

**6.3 Ownership of Shares**

The Investor shall promptly notify the Company in writing if the Ownership Percentage ceases to be at least 10.0%.

**6.4 Additional Information Right**

As soon as available, and in any event within 30 days after the end of each quarterly accounting period in each Financial Year, the Company and its subsidiaries shall provide the Investor with such financial information as may be required by the Investor to meet its public reporting requirements, including sufficiently detailed working papers and other information (including, without limitation, if requested, unaudited financial statements prepared in accordance with IFRS) as may be required to meet the Investor's reporting, audit and control obligations from time to time and, to the extent required by the Investor, acting reasonably, certified by the principal financial or accounting officer of the Company.

**6.5 Assignment**

This Agreement is not assignable by any Party except: (a) with the prior written consent of the other Party, or (b) with respect to any assignment by the Investor to any Affiliate of the Investor, in which case no written consent of the Company shall be required, provided that the Investor gives prompt written Notice of such assignment to the Company and such Affiliate agrees to be bound by the terms of this Agreement and executes a written joinder to this Agreement.

**6.6 Injunctive Relief**

Each Party agrees that any breach of the terms of this Agreement may result in immediate and irreparable injury and damage to the other Party for which the other Party could not be adequately compensated by damages. Each Party therefore agrees that, in the event of any such breach or any anticipated or threatened breach, the other Party shall be entitled to equitable relief by way of temporary or permanent injunction, without having to prove damages or post any bond, in addition to any other remedies (including damages) to which such Party may be entitled at law or in equity.

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**6.7 Entire Agreement**

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersede all prior agreements, understandings, negotiations and discussions, whether written or oral, with respect to the subject matter of this Agreement, including the Original Investor Rights Agreement. There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter of this Agreement except as provided in this Agreement.

**6.8 Time of Essence**

Time shall be of the essence of this Agreement.

**6.9 Governing Law** 

This Agreement is governed by and shall be interpreted and construed in accordance with the Laws of the Province of British Columbia and the federal laws of Canada applicable therein. Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of the courts of the Province of British Columbia situated in the City of Vancouver and waives objection to the venue of any proceeding in such court or that such court provides an inconvenient forum.

**6.10 Severability**

If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated by this Agreement are fulfilled to the extent possible.

**6.11 Waiver**

No waiver of any provision of this Agreement shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Agreement. Waiver of any provision shall not be deemed to waive the same provision after such waiver, or any other provision of this Agreement at any time.

------

**6.12 Amendments**

This Agreement may be amended or supplemented only by a written agreement signed by each of the Parties.

**6.13 Most Favoured Nation**

If the Company desires to enter into an agreement with more favourable terms than this Agreement with any other securityholder of the Company, then (a) the Company shall promptly provide prior written Notice thereof to the Investor and (b) the Company shall not grant more favourable terms to other securityholders of the Company than are provided in this Agreement and the Investor shall get the benefit of the most favourable terms until such time as the Company enters into an amended agreement with the Investor providing such more favourable terms to the Investor.

**6.14 Binding Effect**

This Agreement shall be binding upon the Parties, their heirs and legal personal representatives, and their respective permitted successors and permitted assigns.

**6.15 Termination**

This Agreement shall automatically terminate with no further action required of the Parties, and be of no further force and effect, on the date on which the Ownership Percentage ceases to be at least 10% for a continuous period of at least 30 days (other than in cases where the Ownership Percentage falls below 10% due to the failure of the Company to use commercially reasonable efforts to obtain any required Shareholder, Exchange or other approval or authorization for any issuance of Securities to the Investor pursuant to its rights under Article 4 of this Agreement).

**6.16 Counterparts**

This Agreement may be executed by the Parties in any number of counterparts, each of which is deemed to be an original, and such counterparts together shall constitute one and the same instrument. Delivery of an executed signature page by email or other electronic means (including via DocuSign) shall be as effective as delivery of a manually executed counterpart of this Agreement.

*[Remainder of page intentionally left blank]*

------

**IN WITNESS WHEREOF** the Parties have caused this Agreement to be duly executed as of the date first above written.

---

| | |
|:---|:---|
| **SANDBOX ROYALTIES CORP.** | **SANDBOX ROYALTIES CORP.** |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]* |

---

---

| | |
|:---|:---|
| **SANDSTORM GOLD LTD.** | **SANDSTORM GOLD LTD.** |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]* |

---

------

**SCHEDULE "A"**

**PROCEDURES FOR REGISTRATION RIGHTS**

**1.1** **Registration Procedures**

In connection with the Company's Piggyback Registration obligations pursuant to Article 4 of the Agreement, the Company will use commercially reasonable efforts in accordance with Article 4 of the Agreement to effect the qualification of any Distribution of Qualifying Securities of the Investor in one or more Canadian jurisdictions as determined by the Company, and in pursuance thereof the Company will as expeditiously as practicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in accordance with Article 4 of the Agreement, prepare and file with the applicable Canadian securities authorities (collectively, the "**Canadian Securities Regulators**") a preliminary prospectus and, promptly thereafter, a final prospectus under and in compliance with the Applicable Securities Laws, relating to the Piggyback Registration, including all exhibits, financial statements and such other related documents required by the Canadian Securities Regulators to be filed therewith, and use its commercially reasonable efforts to cause such prospectus to be receipted; and the Company will furnish to the Investor and the lead underwriter or underwriters, if any, copies of such preliminary prospectus and final prospectus and any amendments or supplements in the form filed with the Canadian Securities Regulators, promptly after the filing of such preliminary prospectus and final prospectus, amendments or supplements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) prepare and file with the Canadian Securities Regulators such amendments and supplements to the preliminary prospectus and final prospectus as may be necessary to complete the Distribution of all such Qualifying Securities and as required under the *Securities Act* (British Columbia) or under any applicable provisions of Applicable Securities Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) notify the Investor and the lead underwriter or underwriters, if any, and (if requested) confirm such advice in writing, as soon as practicable after notice thereof is received by the Company: (i) when the preliminary prospectus and final prospectus or any amendment thereto has been filed and been receipted, and furnish to the Investor and lead underwriters or underwriters, if any, with copies thereof; (ii) of any request by the Canadian Securities Regulators for amendments to the preliminary prospectus or the final prospectus or for additional information; (iii) of the issuance by the Canadian Securities Regulators of any stop order or cease trade order relating to the prospectus or any order preventing or suspending the use of any preliminary prospectus or final prospectus or the initiation or threatening of any proceedings for such purposes; and (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Distribution of Qualifying Securities for offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promptly notify the Investor and the lead underwriter or underwriters, if any, when the Company becomes aware of the happening of any event as a result of which the prospectus contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement therein (in the case of the prospectus in light of the circumstances under which they were made) when such prospectus was delivered not misleading, fails to constitute full, true and plain disclosure of all material facts regarding the Qualifying Securities when such prospectus was delivered or if for any other reason it will be necessary during such time period to amend or supplement the preliminary prospectus or the final prospectus in order to comply with Applicable Securities Laws and, in either case as promptly as practicable, prepare and file with the Canadian Securities Regulators, and furnish to the Investor and the lead underwriter or underwriters, if any, a supplement or amendment to such preliminary prospectus or final prospectus which will correct such statement or omission or effect such compliance;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) use commercially reasonable efforts to obtain the withdrawal of any stop order, cease trade order or other order against the Company or affecting the securities of the Company suspending the use of any prospectus or suspending the qualification of the Distribution of any Qualifying Securities covered by the prospectus, or the initiation or the threatening of any proceedings for such purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) furnish to the Investor and each lead underwriter, if any, copies of the preliminary prospectus, final prospectus or any amendments or supplements thereto, and provide the Investor and its counsel with a reasonable opportunity to review and provide comments to the Company on the prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) deliver to the Investor and the underwriters, if any, without charge, as many commercial copies of the preliminary prospectus and the final prospectus and any amendment or supplement thereto as such Persons may reasonably request (it being understood that the preliminary prospectus and the final prospectus or any amendment or supplement thereto may only be used by the Investor and the underwriters, if any, in connection with the offering and sale of the Qualifying Securities covered by the preliminary prospectus and the final prospectus or any amendment or supplement thereto in accordance with Applicable Securities Laws and, if applicable, pursuant to the terms and conditions of an underwriting agreement in customary form to be entered into among the Company, the Investor and the underwriters, if any) and such other documents as the Investor may reasonably request in order to facilitate the disposition of the Qualifying Securities by such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) in connection with any underwritten offering enter into customary agreements, including an underwriting agreement with the underwriter or underwriters, such agreements to contain such representations, warranties and indemnities by the Company and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) use its commercially reasonable efforts to obtain a customary legal opinion, in the form and substance as is customarily given by external company counsel in securities offerings, addressed to the Investor and the underwriters, if any, and such other Persons as the underwriting agreement may reasonably specify, and a customary "comfort letter" from the Company's auditor and/or the auditors of any financial statements included or incorporated by reference in a prospectus;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) furnish to the Investor and the lead underwriter or underwriters, if any, and such other Persons as the Investor may reasonably specify, such corporate certificates, satisfactory to the Investor acting reasonably, as are customarily furnished in securities offerings, and, in each case, covering substantially the same matters as are customarily covered in such documents in the relevant jurisdictions and such other matters as the Investor may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) use commercially reasonable efforts to cause all Shares covered by the prospectus to be listed on each securities exchange or automated quotation system on which Shares are then listed or quoted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) take such other actions and execute and deliver such other documents as may be reasonably necessary to give full effect to the rights of the Investor under the Agreement.

**1.2** **Investor's Obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor will furnish to the Company such information regarding the Distribution of such Qualifying Securities and such other information relating to the Investor's ownership of Shares as the Company may from time to time reasonably request in writing in order to comply with Applicable Securities Laws in each jurisdiction in which a Piggyback Registration is to be effected. The Investor agrees to furnish such information to the Company and to cooperate with the Company as necessary to enable the Company to comply with the provisions of the Agreement and Applicable Securities Laws. The Investor will promptly notify the Company when the Investor becomes aware of the happening of any event (insofar as it relates to the Investor or information provided by the Investor in writing for inclusion in the applicable prospectus) as a result of which the prospectus contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement therein (in the case of the prospectus in light of the circumstances under which they were made) when such prospectus was delivered not misleading or, if for any other reason it will be necessary during such time period to amend or supplement the preliminary prospectus or the final prospectus in order to comply with securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) comply with Applicable Securities Laws in connection with the Investor effecting trades (as defined under Applicable Securities Laws) in the Qualifying Securities and the use of any preliminary prospectus, final prospectus or other qualification document;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) comply with any applicable published policies, rules and regulations of the Canadian Securities Regulators and any stock exchange and over-the counter market on which the Qualifying Securities are then listed or quoted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly review and comment on any draft documents provided to the Investor under Section 1.1 of this Schedule "A".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any underwritten offering in connection with a Piggyback Registration, the Investor will enter into customary agreements, including an underwriting agreement with the underwriter or underwriters, such agreements to contain such representations, warranties and indemnities by the Investor and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions.

**1.3** **Underwriters' Cutback**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, in connection with a Piggyback Registration, the lead underwriter or underwriters impose a limitation on the number or kind of securities which may be included in any such Distribution because, in its reasonable judgment, the inclusion of securities requested to be included in such offering exceeds the number of securities which can be sold in an orderly manner in such offering within a price range reasonably acceptable to the Company (an "**Underwriters' Cutback**"), then the Company will be obligated to include in such Distribution such securities as is determined in good faith by such lead underwriter or underwriters in the following priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, such securities offered by the Company for its own account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, if there are any additional securities that may be underwritten at no less than a price range reasonably acceptable to the Company, after allowing for the inclusion of all of the securities required under (i) above, such Qualifying Securities requested to be qualified by the Investor, provided that if any Qualifying Securities requested to be qualified by the Investor are not otherwise included in such Distribution, such Qualifying Securities that are not so included will be included, to the fullest extent possible, in an over-allotment option which will be granted to the underwriters in connection with such Distribution for such amount of Shares requested to be qualified by the Investor that were not otherwise included in such Distribution.

**1.4** **Withdrawal of Qualifying Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor will have the right to withdraw its request for inclusion of its Qualifying Securities in any Piggyback Registration pursuant to Section 4.1 of the Agreement by giving written notice to the Company of its request to withdraw; provided, however, that:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such request must be made in writing prior to the execution of the enforceable bought deal letter or underwriting agreement with respect to such Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such withdrawal will be irrevocable and, after making such withdrawal, the Investor will no longer have any right to include its Qualifying Securities in the Distribution pertaining to which such withdrawal was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Provided that the Investor withdraws all of its Qualifying Securities from a Piggyback Registration in accordance with Section 1.4(a) of this Schedule "A" prior to the filing of a preliminary prospectus, the Investor will be deemed to not have participated in or requested such Piggyback Registration.

**1.5** **Expenses**

All expenses incurred in connection with a Piggyback Registration pursuant to Section 4.1 of the Agreement (excluding underwriters' discounts and commissions relating to the Qualifying Securities under the Piggyback Registration, if any, and applicable transfer taxes, if any, and the Investor's legal and professional fees, all of which will be borne by the Investor (the "**Investor's Expenses**")), including: (i) Canadian Securities Regulators, Canadian stock exchange registration listing and filing fees relating to the Qualifying Securities; (ii) fees and expenses of compliance with Applicable Securities Laws; (iii) printing and copying expenses; (iv) messenger and delivery expenses; (v) expenses incurred in connection with any road show and marketing activities; (vi) fees and disbursements of counsel to the Company; (vii) fees and disbursements of all independent public accountants (including the expenses of any audit and/or "comfort" letter) and fees and expenses of any other special experts retained by the Company; (viii) translation expenses; and (ix) any other fees and disbursements of underwriters customarily paid by issuers or sellers of securities (but excluding the Investor's Expenses), will be borne by the Company.

**1.6** **Due Diligence; Indemnification**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the preparation and filing of any prospectus in connection with a Piggyback Registration as herein contemplated, the Company will give the Investor, the underwriter or underwriters of such Distribution, if any, and their respective counsel, auditors and other representatives, the opportunity to fully participate in the preparation of such documents and each amendment thereof or supplement thereto, and will insert therein such material furnished to the Company in writing, which in the reasonable judgment of the Company and its counsel should be included, and will give each of them such reasonable and customary access to the Company's books and records and such reasonable and customary opportunity to discuss the business of the Company with its officers and auditors, and to conduct all reasonable and customary due diligence which the Investor and the underwriters or underwriter, if any, and their respective counsel may reasonably require in order to conduct a reasonable investigation in order to enable such underwriters to execute any certificate required to be executed by them in Canada for inclusion in such documents, provided that the Investor and the underwriters agree to maintain the confidentiality of such information.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any Piggyback Registration, the Company will indemnify and hold harmless the Investor and its Affiliates and each of their respective directors, officers, employees and agents, shareholders, limited partners and underwriters, from and against any loss (excluding loss of profits), liability, claim, damage and expense whatsoever (including reasonable legal fees and expenses), including any amounts paid in settlement of any investigation, order, litigation, proceeding or claim, joint or several, incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prospectus, or any amendment or supplement thereto, including all documents incorporated therein by reference, or any omission or alleged omission therefrom of 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 or as incurred, arising out of or based upon any failure to comply with Applicable Securities Laws (other than any failure to comply with Applicable Securities Laws by the Investor); provided that the Company will not be liable under this Section 1.6(b) of this Schedule "A" for any settlement of any action effected without its written consent, which consent will not be unreasonably withheld or delayed; provided further that the indemnity provided for in this Section 1.6(b) of this Schedule "A" in respect of the Investor will not apply to any loss, liability, claim, damage or expense to the extent incurred, arising out of or based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by the Investor stating that such information is being provided for use in the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any Piggyback Registration, the Investor will indemnify and hold harmless the Company and each of its directors, officers, employees, agents and shareholders from and against any loss (excluding loss of profits), liability, claim, damage and expense whatsoever (including reasonable legal fees and expenses), including any amounts paid in settlement of any investigation, order, litigation, proceeding or claim, joint or several, as incurred, arising out of or based on any untrue statement or omission of a material fact, or alleged untrue statement or omission of a material fact, made or required to be made in the prospectus, as applicable, included in reliance upon and in conformity with written information furnished to the Company by the Investor about the Investor or its ownership of Qualifying Securities, stating that such information is being provided for use in the prospectus or as incurred arising out of or based upon any failure to comply with Applicable Securities Laws (other than any failure to comply with Applicable Securities Laws by the Company), including, for greater certainty, for any amounts paid pursuant to Section 1.6(b) of this Schedule "A"; provided that the Investor will not be liable under this Section 1.6(c) of this Schedule "A" for any settlement of any action effected without its written consent, which consent will not be unreasonably withheld or delayed; provided further that the indemnity provided for in this Section 1.6(c) of this Schedule "A" will not apply to any loss, liability, claim, damage or expense to the extent arising out of an untrue statement or omission or alleged untrue statement or omission contained in any prospectus relating to a Piggyback Registration if the Company or any underwriter failed to send or deliver a copy of the prospectus to the Person asserting such losses, liabilities, claims, damages or expenses on or prior to the delivery of written confirmation of any sale of securities covered thereby to such Person in any case where such prospectus corrected such untrue statement or omission; provided, further that in no event will the Investor be liable for indemnification or contribution for an amount greater than the lesser of: (i) the net sales proceeds actually received by the Investor; and (ii) the Investor's proportionate share of any such liability based on the net sales proceeds actually received by the Investor and the aggregate net sales proceeds of the Distribution.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party entitled to indemnification under this Section 1.6 of this Schedule "A" (the "**Specified Indemnified Party**") will give written notice to the party required to provide indemnification (the "**Specified Indemnifying Party**") promptly after such Specified Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and will permit the Specified Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Specified Indemnifying Party, who will conduct the defense of such claim or litigation, will be approved by the Specified Indemnified Party (whose approval will not be unreasonably withheld), and the Specified Indemnified Party may participate in such defense at such party's expense, and provided further that the failure of any Specified Indemnified Party to give notice as provided herein will not relieve the Specified Indemnifying Party of its obligations under this Section 1.6 of this Schedule "A" unless the failure to give such notice is materially prejudicial to a Specified Indemnifying Party's ability to defend such action. A Specified Indemnified Party will have the right to retain its own counsel, with fees and expenses to be paid by the Specified Indemnifying Party, if representation of such Specified Indemnified Party by the counsel retained by the Specified Indemnifying Party would be inappropriate due to actual or potential conflicting interests between such Specified Indemnified Party and any other party represented by such counsel in such proceeding. No Specified Indemnifying Party, in the defense of any such claim or litigation, will, except with the consent of each Specified Indemnified Party, consent to entry of any judgment or enter into any settlement unless such settlement includes as an unconditional term thereof: (i) the giving by the claimant or plaintiff to such Specified Indemnified Party of a release from all liability in respect to such claim or litigation; (ii) no admission on the part of the Specified Indemnified Party that it violated any Law or infringed the rights of any person; and (iii) provides as the claimant's or plaintiff's sole relief monetary damages (that are paid in full by the Specified Indemnifying Party).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the indemnification provided for in this Section 1.6 of this Schedule "A" is held by a court of competent jurisdiction to be unavailable to a Specified Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to therein, then the Specified Indemnifying Party, in lieu of indemnifying such Specified Indemnified Party hereunder, will contribute to the amount paid or payable by such Specified Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the Specified Indemnifying Party on the one hand and of the Specified Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations, provided, however, that the liability of the Investor under this Section 1.6(e) of this Schedule "A" will not exceed the lesser of: (i) the net sales proceeds actually received by the Investor; and (ii) the Investor's proportionate share of any such liability based on the net sales proceeds actually received by the Investor and the aggregate net sales proceeds of the Distribution. The relative fault of the Specified Indemnifying Party and of the Specified Indemnified Party will be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Specified Indemnifying Party or by the Specified Indemnified Party and the parties' relative intent with respect to, knowledge regarding and opportunity to correct, such information. No Person guilty of fraudulent misrepresentation will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

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## Exhibit 4.4

------

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].

**SANDBOX ROYALTIES CORP.**

**(FORMERLY, ROSEDALE RESOURCES LTD.)**

-and-

**EQUINOX GOLD CORP.**

------

**INVESTOR RIGHTS AGREEMENT**

**June 28, 2022**

------

**TABLE OF CONTENTS** <br>

---

| | | |
|:---|:---|:---|
| [**ARTICLE 1 DEFINITIONS AND INTERPRETATION**](#page_3) | [**ARTICLE 1 DEFINITIONS AND INTERPRETATION**](#page_3) | [**1**](#page_3) |
| [1.1](#page_3) | [Definitions](#page_3) | [1](#page_3) |
| [1.2](#page_6) | [Rules of Construction](#page_6) | [4](#page_6) |
| [1.3](#page_7) | [Ownership Percentage](#page_7) | [5](#page_7) |
| [**ARTICLE 2 BOARD OF DIRECTORS**](#page_8) | [**ARTICLE 2 BOARD OF DIRECTORS**](#page_8) | [**6**](#page_8) |
| [2.1](#page_8) | [Board Nominee](#page_8) | [6](#page_8) |
| [2.2](#page_9) | [Management to Endorse and Vote](#page_9) | [7](#page_9) |
| [2.3](#page_9) | [Observer](#page_9) | [7](#page_9) |
| [2.4](#page_10) | [Rights and Privileges of Investor Nominee](#page_10) | [8](#page_10) |
| [**ARTICLE 3 STANDSTILL AND ESCROW**](#page_10) | [**ARTICLE 3 STANDSTILL AND ESCROW**](#page_10) | [**8**](#page_10) |
| [3.1](#page_10) | [Standstill](#page_10) | [8](#page_10) |
| [3.2](#page_12) | [Escrow Requirements](#page_12) | [10](#page_12) |
| [**ARTICLE 4 PARTICIPATION RIGHTS**](#page_12) | [**ARTICLE 4 PARTICIPATION RIGHTS**](#page_12) | [**10**](#page_12) |
| [4.1](#page_12) | [Participation Right](#page_12) | [10](#page_12) |
| [4.2](#page_14) | [Top-Up Rights](#page_14) | [12](#page_14) |
| [**ARTICLE 5 GENERAL**](#page_15) | [**ARTICLE 5 GENERAL**](#page_15) | [**13**](#page_15) |
| [5.1](#page_15) | [Notices](#page_15) | [13](#page_15) |
| [5.2](#page_16) | [Further Assurances](#page_16) | [14](#page_16) |
| [5.3](#page_17) | [Ownership of Shares](#page_17) | [15](#page_17) |
| [5.4](#page_17) | [Assignment](#page_17) | [15](#page_17) |
| [5.5](#page_17) | [Injunctive Relief](#page_17) | [15](#page_17) |
| [5.6](#page_17) | [Entire Agreement](#page_17) | [15](#page_17) |
| [5.7](#page_17) | [Time of Essence](#page_17) | [15](#page_17) |
| [5.8](#page_17) | [Governing Law](#page_17) | [15](#page_17) |
| [5.9](#page_17) | [Severability](#page_17) | [15](#page_17) |
| [5.10](#page_18) | [Waiver](#page_18) | [16](#page_18) |
| [5.11](#page_18) | [Amendments](#page_18) | [16](#page_18) |
| [5.12](#page_18) | [Most Favoured Nation](#page_18) | [16](#page_18) |
| [5.13](#page_18) | [Binding Effect](#page_18) | [16](#page_18) |
| [5.14](#page_18) | [Termination](#page_18) | [16](#page_18) |
| [5.15](#page_18) | [Counterparts](#page_18) | [16](#page_18) |

---

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**<u>INVESTOR RIGHTS AGREEMENT</u>**

**THIS INVESTOR RIGHTS AGREEMENT** (this "**Agreement**") is made as of the 28th day of June, 2022 (the "**Effective Date**")

**BETWEEN:**

**SANDBOX ROYALTIES CORP. (formerly, Rosedale Resources**

**Ltd.)**, a corporation incorporated under the laws of the Province of

British Columbia

(the "**Company**")

**AND:**

**EQUINOX GOLD CORP.**, a corporation incorporated under the laws of the Province of British Columbia

(the "**Investor**")

**WHEREAS:**

A. The Company and the Investor (each, a "**Party**" and together the "**Parties**") have entered into a share purchase agreement dated May 25, 2022, as amended as of the date hereof (the "**Purchase Agreement**"), pursuant to which the Company has agreed to purchase all of the issued and outstanding securities of 1362033 B.C. Ltd. (the "**Purchased Shares**") from the Investor;

B. The Purchase Agreement provides that as part of the consideration payable for the Purchased Shares, the Company will issue Shares (as defined below) to the Investor; and

C. As a condition to the completion of the transactions contemplated in the Purchase Agreement, the Company has agreed to grant certain rights to the Investor, and the Investor has agreed to make certain covenants in favour of the Company, each on the terms and subject to the conditions set out in this Agreement;

**NOW THEREFORE**, in consideration of the respective covenants and agreements of the Parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each Party, the Parties agree as follows:

**ARTICLE 1**

**DEFINITIONS AND INTERPRETATION**

**1.1 Definitions**

In this Agreement, capitalized terms used but not defined in this Agreement shall have the meanings given in the Purchase Agreement and, unless otherwise indicated, the following terms have the following meanings:

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"**Affiliate**" means any Person Controlling, Controlled by, or under common Control with, another Person;

"**Applicable Laws**" means applicable laws, including international, national, provincial, state, municipal and local laws, treaties, statutes, ordinances, judgments, decrees, injunctions, writs, certificates and orders, by-laws, rules, regulations, ordinances, or other requirements of any Governmental Entity having the force of law;

"**Board**" means the board of directors of the Company;

"**Board Materials**" has the meaning set out in Section 2.3(a);

"**Business Day**" means any day other than a Saturday, Sunday or any other day in which banks in the Province of British Columbia are authorized or required by Applicable Laws to be closed;

"**Change of Control Transaction**" means a merger, amalgamation, reorganization, business combination, tender offer, exchange offer, take-over bid, statutory arrangement or similar transaction involving the Company or its securities resulting in a change of Control of the Company or a sale, transfer, lease or other disposition of all or substantially all of its assets, provided that a Change of Control Transaction shall not include any transaction between the Investor and any Affiliate of the Investor;

"**Control**" means: (a) in respect of a corporation, the ability of a Person or group of Persons acting in concert to influence the manner in which the business of such corporation is carried on, whether as a result of ownership of sufficient voting shares of such corporation to entitle that Person or group of Persons to elect a majority of the directors of such corporation or by contract or otherwise, (b) in respect of a partnership, trust, syndicate or other entity, the actual power or authority to manage and direct the affairs of, or ownership of more than 50% of the transferable beneficial interests in, such entity, or (c) any other relationship as, in fact, constitutes actual control of a Person;

"**Credible Bid**" means any take-over bid (including an amended take-over bid) other than a take- over bid (a) that the Board has determined in good faith, after consultation with its financial and legal advisors, is not reasonably capable of being completed in accordance with its terms, and (b) in respect of which the Company has publicly announced the Board's conclusion no later than seven Business Days following the date on which such take-over bid is commenced or the intention to make such take-over bid (together with the material terms of the bid) is publicly announced and, in the absence of such announcement, such bid shall be deemed to be a Credible Bid, or (c) initiated by the Investor, any Affiliate of the Investor, or any Person acting jointly or in concert with any of the foregoing in any manner contrary to the Investor's covenants and obligations in Section 3.1. In addition, in the event the Company or the Board chooses to recommend or support a bid such bid shall be deemed to be a Credible Bid;

"**Dilutive Issuance**" has the meaning set out in Section 4.2(a)(i);

"**Director**" means a member of the Board;

"**Director Eligibility Criteria**" has the meaning set out in Section 2.1(d);

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"**Escrow**" has the meaning set out in Section 3.2;

"**Exchange**" means the TSX Venture Exchange, the NEO Exchange, the Toronto Stock Exchange or such other stock exchange(s) and quotation service(s), if any, as the Shares may be listed or quoted on, as applicable, from time to time;

"**Exempt Issuance**" means any of the following issuances by the Company of Securities: (a) the granting of stock options, deferred share units, restricted share units, bonus shares, or other Securities under any security or share-based compensation arrangement of the Company, (b) an issuance of Securities to all holders of Securities, on a pro rata basis, pursuant to a consolidation, subdivision, share dividend, recapitalization, reclassification, share exchange, rights offering or other similar transaction, or (c) an issuance of Securities pursuant to a regular dividend reinvestment or other plan of the Company made available by the Company to the holders of Securities where such plan permits the holder to direct that the dividends paid in respect of such Securities be applied to the purchase from the Company of further Securities;

"**Exercise Notice**" has the meaning set out in Section 4.2(c);

"**Governmental Entity**" means any domestic or foreign: (a) federal, provincial, state, municipal, local or other government, (b) governmental or quasi-governmental authority of any nature, including any governmental ministry, agency, branch, department, court, commission, board, tribunal, bureau or instrumentality, (c) Exchange or securities regulatory authority, or (d) body exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power of any nature;

"**Investor Nominee**" means the Director who is nominated by the Investor by notice in writing to the Company and elected or appointed from time to time to the Board pursuant to the terms of this Agreement;

"**Market Price**" on any date, means the greater of the volume weighted average trading price of the Shares for the five trading days immediatelyprior tosuch date on such Exchange as the Shares are then principally traded and the minimum price permitted by such Exchange;

"**Nomination Notice**" has the meaning set out in Section 2.1(e);

"**Notice**" has the meaning set out in Section 5.1;

"**Observer**" has the meaning set out in Section 2.3(a);

"**Ownership Percentage**" has the meaning set out in Section 1.3(a);

"**Participation Right**" has the meaning set out in Section 4.1(b);

"**Person**" means any individual, sole proprietorship, partnership, firm, entity, joint venture, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Entity, and where the context requires, any of the foregoing when they are acting as trustee, executor, administrator or other legal representative;

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"**Securities**" means the Shares and/or Subject Securities, as the case may be;

"**Shareholder**" means a holder of Shares;

"**Shares**" means common shares in the capital of the Company;

"**Standstill Period**" means the period of time commencing on the Effective Date and ending on the earlier of: (a) the date which is 12 months following the Effective Date and (b) the date on which the Ownership Percentage ceases to be at least 10%;

"**Subject Securities**" means any securities of the Company convertible into or exercisable or exchangeable for Shares, including convertible debt securities and rights to purchase equity securities;

"**Subsequent Offering**" has the meaning set out in Section 4.1(a);

"**Subsequent Offering Notice**" has the meaning set out in Section 4.1(a);

"**Subscription Notice**" has the meaning set out in Section 4.1(b);

"**Top-up Notice**" has the meaning set out in in Section 4.2(b); "**Top-up Offering**" has the meaning set out in Section 4.2(d); "**Top-up Right**" has the meaning set out in Section 4.2(a)(i); "**Top-up Shares**" has the meaning set out in in Section 4.2(a)(i); and "**Top-up Threshold**" has the meaning set out in Section 4.2(a)(ii).

**1.2 Rules of Construction**

In this Agreement, unless otherwise expressly stated or the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the terms "Agreement", "this Agreement" and similar expressions refer to this Agreement in its entirety and not to any particular provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) references to an "Article" or "Section" followed by a number or letter refer to the specified Article or Section of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing the singular number only shall include the plural and vice versa, and words importing the use of any gender shall include all genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the word "including" is deemed to mean "including without limitation" and all similar variations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any reference to this Agreement, or to any other contract, document or other instrument, includes, and is a reference to, this Agreement or such other contract, document or other instrument, as the same may have been, or may from time to time be, amended, restated, replaced, supplemented or novated, and includes any schedules or exhibits;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any reference to a statute refers to such statute, and all rules and regulations made under such statute, as the same may have been amended, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any time period within which a payment is to be made or any other action is to be taken under this Agreement shall be calculated excluding the day on which the period commences and including the day on which the period ends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) whenever any action is required to be taken or period of time is to expire on a day other than a Business Day, such action shall be taken or period shall expire on the next following Business Day.

**1.3 Ownership Percentage**

(a) Subject to Section 1.3(b), for purposes of this Agreement "**Ownership Percentage**" means, at a particular time, the percentage ownership interest of the Investor and each Affiliate of the Investor, taken as a whole, in the equity capital of the Company, which shall be calculated by dividing (i) the number of Shares held by the Investor by (ii) the total number of Shares issued and outstanding at such time. In the case of both (i) and (ii), the number of Shares used in the calculation will assume the exercise/and or exchange and/or conversion, by the Investor and its Affiliate(s) only, of any Subject Securities held by the Investor and its Affiliate(s) at such time, provided that in all cases such inclusion will be subject to any cap or other restriction on exercise, exchange and/or conversion provided in the agreement, document or other instrument representing such Subject Securities.

(b) In determining the Ownership Percentage, any Shares issued as a result of a Subsequent Offering or a Dilutive Issuance shall be disregarded and the Investor shall be deemed to own the percentage of Shares it would have held at such time if such Subsequent Offering or Dilutive Issuance, as the case may be, had not occurred unless and until the Company has delivered to the Investor, as may be applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Subsequent Offering Notice in respect of such Subsequent Offering and the Investor fails to provide a Subscription Notice to the Company within the time required in Section 4.1(b), in which case the Shares issued in connection with such Subsequent Offering shall be included in the total number of Shares issued and outstanding for purposes of determining the Ownership Percentage; or,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Top-up Notice in respect of such Dilutive Issuance and the Investor fails to provide an Exercise Notice to the Company within the time required in Section 4.2(c), in which case the Shares issued in connection with such Dilutive Issuance shall be included in the total number of Shares issued and outstanding for purposes of determining the Ownership Percentage.

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**ARTICLE 2**

**BOARD OF DIRECTORS**

**2.1 Board Nominee**

(a) The Investor shall have the right but not the obligation to designate one Investor Nominee for election to the Board. For greater clarity, the Investor shall no longer be entitled to designate an Investor Nominee after the date on which this Agreement has been terminated in accordance with Section 5.14.

(b) If one has not been already appointed as contemplated under the Purchase Agreement, and the Investor desires to appoint an Investor Nominee on the Effective Date, the Company agrees that, on the Effective Date, the Board shall appoint the Investor Nominee to serve on the Board until the next annual general meeting of Shareholders; provided that the Investor Nominee (i) is identified by the Investor to the Company prior to the Effective Date, (ii) consents in writing to serve as a director, and (iii) meets the Director Eligibility Criteria.

(c) The Company agrees to nominate and recommend for election, at each meeting of Shareholders at which Directors are to be elected, the Investor Nominee designated by the Investor in accordance with Section 2.1(e).

(d) The Investor agrees that the initial Investor Nominee and any replacement Investor Nominee shall be mutually agreeable to the Investor and the Company, acting reasonably, having regard to the skills matrix and requirements of the Board (as determined in good faith by the Board or an authorized committee of the Board and including, for greater certainty, any Applicable Laws or Exchange rules or policies) for Director candidates, and such individual consents in writing to serve as a Director (the "**Director Eligibility Criteria**").

(e) The Company shall provide the Investor with written Notice (the "**Nomination Notice**"), promptly, and in any event, not less than 60 days in advance of the date set for the meeting of Shareholders at which Directors are to be elected. The Nomination Notice shall include a request for the identification of any Investor Nominee and the detailed information required to be included in an information circular with respect to the appointment of any Investor Nominee. The Investor shall be required to, not later than 45 days in advance of the date set for a meeting of Shareholders of which the Investor is notified pursuant to this Section 2.1(e), provide the Company with written Notice of the identity and particulars requested in the Nomination Notice. If the Investor does not advise the Company of the identity of the Investor Nominee at least 45 days prior to the date set for the meeting of Shareholders at which Directors are to be elected (for any reason other than failure by the Company to provide the Investor with the Nomination Notice within the period prescribed by this Section 2.1(e)), then the Investor will be deemed to have nominated the incumbent Investor Nominee.

(f) If an incumbent Investor Nominee ceases to serve as a Director, whether due to such Investor Nominee's death, disability, resignation or removal, the Investor shall have the right to nominate a replacement Investor Nominee and the Company shall cause the Board to appoint, as soon as practicable, such replacement Investor Nominee in accordance with this Agreement to fill the vacancy caused by such death, disability, resignation or removal, provided that such Investor Nominee satisfies the Director Eligibility Criteria and the Investor remains eligible to nominate such Investor Nominee pursuant to Section 2.1(a).

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(g) If the Investor ceases to have any right to appoint an Investor Nominee pursuant to Section 2.1(a), the Investor shall use commercially reasonable efforts to, unless requested otherwise by the Company, cause the Investor Nominee to forthwith resign from the Board.

**2.2 Management to Endorse and Vote**

The Company agrees that management of the Company shall, in respect of every meeting of Shareholders at which the election of Directors is to be considered, and at every reconvened meeting following an adjournment or postponement of such meeting, endorse and recommend the Investor Nominee identified in the Company's proxy materials for election to the Board, so long as such Investor Nominee satisfies the Director Eligibility Criteria, and shall vote any Shares in respect of which management is granted a discretionary proxy in favour of the election of such Investor Nominee to the Board at every such meeting.

**2.3 Observer**

(a) If, at any time or from time to time, the Investor is entitled to nominate an Investor Nominee pursuant to Section 2.1, but has not done so, the Investor shall be entitled to designate one individual (who may change from time to time upon 30 days' written Notice to the Company) as an observer (an "**Observer**") to attend all meetings of the Board. The Observer shall have the right to receive notice of, and review the same information and materials ("**Board Materials**") as are provided to Directors for, such meetings and to speak at such meetings, but shall not be entitled to vote. The Company shall deliver to the Observer copies of any resolutions proposed to be adopted by the Board at the same time as such resolutions are circulated to members of the Board or any committee of the Board. Prior to the Observer attending the first meeting of the Board, the Investor shall cause the Observer to sign a customary non-disclosure agreement provided by the Company, provided that any such non-disclosure agreement is reasonable in both form and in substance, and sign an acknowledgement agreeing to be bound by the Company's disclosure and insider trading policies. The Observer shall be reimbursed for all reasonable expenses related to attending all meetings of the Board on a basis that is consistent with the Company's policies for Director reimbursement, as if the Observer were a member of the Board.

(b) Notwithstanding anything to the contrary in this Agreement, the Company may exclude the Observer from access to any Board Materials or from any meeting of the Board or any committee of the Board (or any portion of such meeting) if the Board concludes that: (i) such exclusion is necessary to preserve the solicitor-client or litigation privilege between the Company and/or its Affiliates and their respective counsel (provided that any such exclusion shall only apply to such portion of such Board Materials or meeting which would be required to preserve such privilege); (ii) such Board Materials or discussion relates to the Company's or its Affiliates' relationship, contractual or otherwise, with the Investor or its Affiliates or any actual or potential transactions between or involving the Company or its Affiliates and the Investor or its Affiliates; (iii) such exclusion is necessary to avoid a conflict of interest or disclosure that is restricted by any agreement to which the Company or any of its Affiliates is a party or otherwise bound; or (iv) such exclusion is necessary to comply with Applicable Laws.

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**2.4 Rights and Privileges of Investor Nominee**

(a) The Investor Nominee shall be entitled to the benefit of any directors' liability insurance or indemnity to which other Directors are entitled.

(b) The Investor Nominee shall be reimbursed for all reasonable expenses related to their service on the Board on a basis that is consistent with the Company's policies for Director reimbursement. The Investor Nominee shall be entitled to compensation consistent with the compensation received by other non-employee independent members of the Board, including any fees and equity awards.

**ARTICLE 3**

**STANDSTILL AND ESCROW**

**3.1 Standstill**

(a) The Investor covenants and agrees that, during the Standstill Period, it shall not, and it shall cause its Affiliates not to, in any manner, directly or indirectly, or in concert with any other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) propose or seek to effect any Change of Control Transaction, including by entering into a support agreement or lock-up agreement in respect of such a transaction, provided that for greater certainty, the Investor and its Affiliates shall be permitted to tender to, vote in favour of, and/or enter into a support agreement or lock-up agreement in respect of a Change of Control Transaction supported by a majority of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) solicit proxies from Shareholders or form, join, support or participate in a group to solicit proxies from Shareholders with a view to replacing the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase, offer or agree to purchase or negotiate to purchase any Securities or assets of the Company, other than as contemplated in the Purchase Agreement or any Closing Document (as defined in the Purchase Agreement), without the advance written authorization of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) advise or encourage any Person proposing any of the foregoing (including forming a "group" with any such Person); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) make any public announcement or take any action in furtherance of the foregoing.

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(b) Notwithstanding Section 3.1(a), the Investor and its Affiliates shall not be restricted from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) acquiring Securities with the prior written consent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) making a confidential proposal to the Board regarding any of the transactions or activities contemplated in Section 3.1(a), entering into discussions or negotiations with the Board or the Company with respect to the terms of any such proposal, and entering into any agreement with the Company providing for the consummation of such proposal; provided that the Investor shall not make any public disclosure of the making of or terms of such proposal except with the prior written consent of the Company, such consent not to be unreasonably withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) acquiring Securities upon exercise, exchange or conversion of any Subject Securities in accordance with their respective terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) exercising any rights of the Investor under the Purchase Agreement or the Closing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquiring Securities in accordance with the terms of the Participation Rights set forth in Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) acquiring Securities in accordance with the terms of the Top-Up Rights set forth in Section 4.2;

&nbsp;&nbsp;&nbsp;&nbsp;(vii) participating in rights offerings conducted by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;(viii) receiving stock dividends or similar distributions made by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) provided that the Investor has not breached Section 3.1(a), tendering Shares to a formal take-over bid for the Shares or any similar transaction by an arm's length third party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) disposing of Shares by operation of a statutory amalgamation, merger, arrangement, business combination or other statutory procedure involving the Company or the Shares.

(c) Section 3.1(a) shall cease to be of any force or effect: (i) as of the public announcement or public disclosure of (A) the commencement of a Credible Bid, or an intention to undertake a Credible Bid, for voting or equity securities of the Company or any of its Affiliates; (B) any agreement, arrangement or understanding in respect of a merger, amalgamation, arrangement, asset purchase or other business combination transaction involving the Company or any of its Affiliates, or an intention to make an offer to the Company or any of its Affiliates to undertake such a transaction, which would, if completed, result in (I) any class of outstanding voting securities of the Company being converted into cash or securities of another person resulting in shareholders (excluding, for the avoidance of doubt, any shareholder who is acquiring voting securities of the Company as part of the transaction) holding less than 50% of the voting securities of the resulting or surviving entity, or (II) all or substantially all of the Company's assets being sold to any person or group (other than the Investor); (C) the commencement of any proceeding by or against the Company in connection with the dissolution, liquidation, winding up, bankruptcy or similar reorganization of the Company; (D) the appointment of a trustee, receiver, manager or other administrator of the Company or any of its material properties or assets; or (E) the Company seeking protection under the Bankruptcy and Insolvency Act (Canada), the *Companies' Creditors Arrangement Act* (Canada) or similar legislation; or (ii) if the Company is in material default of this Agreement and such default continues for a period of 30 days after the Company receives written Notice of such default from the Investor.

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**3.2 Escrow Requirements**

The Investor agrees to comply with and be bound by any escrow requirements ("**Escrow**") imposed by any Exchange in connection with the closing of the Go Public Transaction (as defined in the Purchase Agreement).

**ARTICLE 4**

**PARTICIPATION RIGHTS**

**4.1 Participation Right**

(a) If the Company issues any Securities other than pursuant to an Exempt Issuance (any such issuance, a "**Subsequent Offering**"), then the Company shall promptly, and, in any event no later than one Business Day following the public announcement of such Subsequent Offering (and if the Subsequent Offering is not announced, no later than ten days prior to the closing date for the issuance of the securities in the Subsequent Offering), provide a written Notice (the "**Subsequent Offering Notice**") to the Investor setting out: (i) the number of Securities issued or contemplated to be issued in connection with the Subsequent Offering (and the maximum number of additional Securities that may be issuable upon the exercise of any other participation rights or pre-emptive right provided to any third party) and the total number of Securities issued and outstanding as of the close of business on the Business Day immediately preceding the Subsequent Offering Notice; (ii) the material terms and conditions of any Securities issued or contemplated to be issued in connection with the Subsequent Offering, including any term sheets or offer sheets, if any; (iii) the subscription price per Security issued or to be issued in connection with the Subsequent Offering; and (iv) the proposed closing date for the issuance of Securities to the Investor, assuming the Investor exercises its Participation Rights, which closing date shall be the later of (A) ten days following the date ofthe Subsequent Offering Notice, (B) the closing date set for the Subsequent Offering, (C) if Shareholder approval is required under Applicable Laws for the Company to complete the issuance of Securities to the Investor pursuant to its exercise of its Participation Rights, the Business Day following receipt of such Shareholder approval, or (D) such other date as the Company and the Investor may agree.

(b) Subject to the receipt by the Company of all required regulatory approvals and compliance with Applicable Laws, the Investor shall have the right (the "**Participation Right**"), upon providing notice ("**Subscription Notice**") to the Company within ten Business Days, or three Business Days in the case of a bought deal, following receipt of the Subsequent Offering Notice that it intends to exercise its Participation Right, in whole or in part, to subscribe for and to be issued, on the same terms and conditions of such Subsequent Offering:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Subsequent Offering of Shares, up to such number of Shares that will allow the Investor to maintain the Ownership Percentage held immediately prior to the completion of the Subsequent Offering (factoring in the exercise of any other participation rights or pre-emptive rights provided to any third parties); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Subsequent Offering of Subject Securities, up to such number of Subject Securities that will (assuming the conversion, redemption, exercise or exchange of all Subject Securities issuable in connection with the Subsequent Offering and of all Subject Securities issuable pursuant to the Participation Right) allow the Investor to maintain the Ownership Percentage held immediately prior to the completion of the Subsequent Offering (factoring in the exercise of any other participation rights or pre-emptive rights provided to any third parties).

In the Subscription Notice, the Investor shall specify the number of Shares and Subject Securities beneficially owned, directly or indirectly, by it and its Affiliates as at the date of the Subsequent Offering Notice, and the number of Securities for which the Investor is subscribing. In the case of a Subsequent Offering that is qualified by a prospectus, the Company will use commercially reasonable efforts to qualify the Securities subscribed for by the Investor pursuant to such prospectus, failing which the Securities subscribed for by the Investor will be issued on a private placement basis concurrently with the closing of the Subsequent Offering, subject to receipt of any required Shareholder approval and Exchange or other regulatory approvals. The Company will use its commercially reasonable efforts to promptly obtain (including by applying for any necessary price protection confirmations) all necessary Exchange approvals for the listing of all Shares (including Shares underlying Subject Securities) to be issued to the Investor pursuant to this Article 4.

(c) If the Investor exercises the Participation Rights and the Company is required, under the rules and policies of any Exchange or applicable securities laws, to seek Shareholder approval for the issuance of Securities to the Investor pursuant to this Section 4.1, the Company shall use commercially reasonable efforts to, at its expense, duly call and hold a meeting of its Shareholders to consider (and the Company shall recommend that Shareholders vote in favour of)the issuance of the Securities to the Investor within 75 days after the date that the Investor is advised by the Exchange that it will require such Shareholder approval. The Investor may close any such issuance of Securities prior to obtaining Shareholder approval; provided that, during the period between the closing of any such Subsequent Offering and the date of the Shareholder meeting to consider the issuance of the Securities to the Investor, the Ownership Percentage shall be deemed to be the Ownership Percentage immediately prior to the closing of the Subsequent Offering.

(d) For greater clarity, in the event the Company grants any other participation right(s) or pre-emptive right(s) to any third party or parties, the Company shall ensure such right(s) is or are subject to the Participation Right of the Investor provided by this Article 5, and the Company shall ensure additional Securities are offered for issuance to the Investor so as to allow the Investor to maintain its Ownership Percentage (factoring in the exercise of any such other participation right(s) or pre-emptive right(s) provided to any third party or parties).

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**4.2 Top-Up Rights**

(a) Without limiting Section 4.1, at any time and from time to time after the Effective Date, the Company agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Investor (directly or through an Affiliate) shall have the right (the "**Top-up Right**") to subscribe for and to be issued in connection with the issuance of Shares pursuant to: (A) any security-based compensation arrangements of the Company; and (B) the conversion, exercise or exchange of Subject Securities issued prior to or after the date of this Agreement (any, a "**Dilutive Issuance**") and (c) any other issuance of Shares where the Participation Right did not apply, up to such number of Shares that will allow the Investor to maintain or acquire up to the Ownership Percentage that is the same as the Ownership Percentage that the Investor would have had but for the Dilutive Issuance referenced in the Top-Up Notice (the "**Top- up Shares**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Top-up Right shall be exercisable from time to time following Dilutive Issuances that result in the reduction of the Ownership Percentage by an aggregate of 1.0% or more (the "**Top-up Threshold**"). The Top-up Threshold shall be calculated by aggregating all Dilutive Issuances that occurred in each case from the later of: (i) the date of this Agreement; (ii) the date of the last Top-up Notice; and (iii) the date of completion of the last Top-up Offering.

(b) Subject to Section 4.2(e), within five Business Days of the end of each six month period ending March 31 and September 30 during which one or more Dilutive Issuances occurred resulting in the Top-up Threshold being achieved, the Company shall deliver a written Notice (a "**Top-up Notice**") to the Investor containing the number of Subject Securities converted, exercised or exchanged into Shares, and the total number of issued and outstanding Shares following such Dilutive Issuances and any other conversions, exercises and exchanges of Subject Securities, in each case from the later of (A) the date of this Agreement, (B) the date of the last Top-up Notice, and (C) the date of completion of the last Top-up Offering.

(c) If the Investor wishes to exercise the Top-up Right, the Investor shall give written Notice to the Company (the "**Exercise Notice**") of its intention to exercise such right and of the number of Top-up Shares the Investor wishes to subscribe for and purchase pursuant to the Top-up Right. The Investor shall deliver an Exercise Notice to subscribe to the Top-up Offering or issuance of Top-up Shares, within 15 Business Days after the date of receipt of a Top-up Notice, failing which the Investor will not be entitled to exercise the Top-up Right in respect of such issuance of Top-up Shares.

(d) If the Investor delivers an Exercise Notice in accordance with Section 4.2(c), the Company shall in accordance with the provisions of this Section 4.2, promptly, and in any event within 30 days of the date on which the relevant Exercise Notice was delivered (or such later date as may be reasonably necessary to obtain any necessary Shareholder approval), complete an offering to the Investor of the number of Top-up Shares the Investor wishes to subscribe for pursuant to the Top-up Right, as specified in the Exercise Notice, at an offering price per Top-up Share equal to the Market Price on the date the Top-up Notice was delivered to the Investor (each, a "**Top-up Offering**"). For greater certainty, each Top- up Offering will be an offering of Shares.

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(e) Notwithstanding any other provision of this Article 4 to the contrary, if a Top-up Threshold is achieved, or is determined by the Company, acting reasonably, to be likely to occur prior to the date on which a record date for any meeting of Shareholders is to be set, the Company shall deliver a Top-up Notice to the Investor at least 20 Business Days prior to such record date or such shorter period prior to such record date as may be agreed in writing between the Investor and the Company upon confirmation by the Company that it has all necessary authorizations and approvals to complete the Top-up Offering within such shortened period. If the Investor delivers an Exercise Notice in accordance with Section 4.2(c) or during such shortened notice period as may have been agreed between the Company and the Investor pursuant to this Section 4.2(e) in response to a Top-up Notice delivered pursuant to Section 4.2(b),the Company shall in accordance with the provisions of this Section 4.2(e), promptly, and in any event prior to declaring the record date for such Shareholder meeting, complete a Top-up Offering to the Investor.

**ARTICLE 5**

**GENERAL**

**5.1 Notices**

All notices, demands or other communications (in any case, a "**Notice**") to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient or by email addressed to the recipient. Each Notice shall be delivered, mailed or sent electronically to the Parties at the respective addresses or email addresses indicated below:

If to the Company:

Sandbox Royalties Corp.

1400 - 400 Burrard Street

Vancouver, BC V6C 3A6

*Attention: [Redacted - Personal Information.]*

*Email: [Redacted - Personal Information.]*

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with a copy (which shall not constitute notice) to:

Bennett Jones LLP

3400 - 100 King Street

West Toronto, Ontario M5X 1A4

*Attention: [Redacted - Personal Information.]*

*Email: [Redacted - Personal Information.]*

If to the Investor:

Equinox Gold Corp.

700 West Pender Street

Vancouver, BC V6C 1G8

*Attention: [Redacted - Personal Information.]*

*Email: [Redacted - Personal Information.]*

with a copy (which shall not constitute notice) to:

Blake, Cassels & Graydon LLP

2600 - 595 Burrard Street

Vancouver, BC V7X 1L3

*Attention: [Redacted - Personal Information.]*

*Email: [Redacted - Personal Information.]*

Any such Notice so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a Business Day and the Notice is delivered, emailed or sent before 5:00 p.m. (Vancouver time) on such day. Otherwise, such Notice shall be deemed to have been given and made and to have been received on the next following Business Day. Any such Notice sent by mail shall be deemed to have been given and made and to have been received on the fifth Business Day following the mailing thereof; provided however that no such Notice shall be mailed during any actual or apprehended disruption of postal services. Any such Notice given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

**5.2 Further Assurances**

Each Party shall act in good faith in performing its obligations and exercising its rights under this Agreement, and shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the other Party may reasonably require from time to time for the purpose of giving effect to this Agreement, and shall use reasonable commercial efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this Agreement.

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**5.3 Ownership of Shares**

The Investor shall promptly notify the Company in writing if the Ownership Percentage ceases to be at least 10.0%.

**5.4 Assignment**

This Agreement is not assignable by any Party except: (a) with the prior written consent of the other Party, or (b) with respect to any assignment by the Investor to any Affiliate of the Investor, in which case no written consent of the Company shall be required, provided that the Investor gives prompt written Notice of such assignment to the Company and such Affiliate agrees to be bound by the terms of this Agreement and executes a written joinder to this Agreement.

**5.5 Injunctive Relief**

Each Party agrees that any breach of the terms of this Agreement may result in immediate and irreparable injury and damage to the other Party for which the other Party could not be adequately compensated by damages. Each Party therefore agrees that, in the event of any such breach or any anticipated or threatened breach, the other Party shall be entitled to equitable relief by way of temporary or permanent injunction, without having to prove damages or post any bond, in addition to any other remedies (including damages) to which such Party may be entitled at law or in equity.

**5.6 Entire Agreement**

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersede all prior agreements, understandings, negotiations and discussions, whether written or oral, with respect to the subject matter of this Agreement. There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter of this Agreement except as provided in this Agreement.

**5.7 Time of Essence**

Time shall be of the essence of this Agreement.

**5.8 Governing Law**

This Agreement is governed by and shall be interpreted and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of the courts of the Province of British Columbia situated in the City of Vancouver and waives objection to the venue of any proceeding in such court or that such court provides an inconvenient forum.

**5.9 Severability**

If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated by this Agreement are fulfilled to the extent possible.

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**5.10 Waiver**

No waiver of any provision of this Agreement shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Agreement. Waiver of any provision shall not be deemed to waive the same provision after such waiver, or any other provision of this Agreement at any time.

**5.11 Amendments**

This Agreement may be amended or supplemented only by a written agreement signed by each of the Parties.

**5.12 Most Favoured Nation**

If the Company desires to enter into an agreement with more favourable terms than this Agreement with any other securityholder of the Company, then (a) the Company shall promptly provide prior written Notice thereof to the Investor and (b) the Company shall not grant more favourable terms to other securityholders of the Company than are provided in this Agreement and the Investor shall get the benefit of the most favourable terms until such time as the Company enters into an amended agreement with the Investor providing such more favourable terms to the Investor.

**5.13 Binding Effect**

This Agreement shall be binding upon the Parties, their heirs and legal personal representatives, and their respective permitted successors and permitted assigns.

**5.14 Termination**

This Agreement shall automatically terminate with no further action required of the Parties, and be of no further force and effect, on the date on which the Ownership Percentage ceases to be at least 10% for a continuous period of at least 30 days (other than in cases where the Ownership Percentage falls below 10% due to the failure of the Company to obtain any required Shareholder, Exchange or other approval or authorization for any issuance of Securities to the Investor pursuant to its rights under Article 4 of this Agreement).

**5.15 Counterparts**

This Agreement may be executed by the Parties in any number of counterparts, each of which is deemed to be an original, and such counterparts together shall constitute one and the same instrument. Delivery of an executed signature page by email or other electronic means (including via DocuSign) shall be as effective as delivery of a manually executed counterpart of this Agreement.

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*[Remainder of page intentionally left blank]*

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**IN WITNESS WHEREOF** the Parties have caused this Agreement to be duly executed as of the date first above written.

**SANDBOX ROYALTIES CORP.**

*by* <u>*(signed) ʺ*</u>*<u>[Redacted - Personal Information.</u>] ʺ <br> Name: [Redacted - Personal Information.] <br> Title: [Redacted - Personal Information.]*

**EQUINOX GOLD CORP.**

by ____________________________________

Name:

Title:

by ____________________________________

Name:

Title: <br>

*[Investor Rights Agreement with Equinox]*

------

**IN WITNESS WHEREOF** the Parties have caused this Agreement to be duly executed as of the date first above written.

**SANDBOX ROYALTIES CORP.** 

by ____________________________________

Name:

Title:<br>

**EQUINOX GOLD CORP.<br>**

<br> *by* <u>*(signed)*</u> *<u>ʺ[Redacted - Personal Information.]</u>ʺ <br> Name: [Redacted - Personal Information.] <br> Title: [Redacted - Personal Information.]*

*by* <u>*(signed)*</u> *<u>ʺ[Redacted - Personal Information.]</u>ʺ <br> Name: [Redacted - Personal Information.] <br> Title: [Redacted - Personal Information.]*

*[Investor Rights Agreement with Equinox]*

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## Exhibit 4.5

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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.<br>REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].

**SANDBOX ROYALTIES CORP.**

-and-

**REGAL FUNDS MANAGEMENT PTY LIMITED (ACN 107 576 821), AS TRUSTEE FOR <br>THE REGAL RESOURCES ROYALTIES FUND**

------

**<br>INVESTOR RIGHTS AGREEMENT**

<br>**October 31, 2023<br>**

<br> ------

------

---

| | |
|:---|:---|
| [**ARTICLE 1 DEFINITIONS AND INTERPRETATION**](#page_3) | [**1**](#page_3) |
| [1.1 Definitions](#page_3) | [1](#page_3) |
| [1.2 Rules of Construction](#page_6) | [4](#page_6) |
| [1.3 Ownership Percentage](#page_6) | [4](#page_6) |
| [**ARTICLE 2 BOARD OF DIRECTORS**](#page_7) | [**5**](#page_7) |
| [2.1 Board Nominee](#page_7) | [5](#page_7) |
| [2.2 Management to Endorse and Vote](#page_8) | [6](#page_8) |
| [2.3 Board Observer Rights](#page_8) | [6](#page_8) |
| [2.4 Rights and Privileges of Investor Nominee](#page_9) | [7](#page_9) |
| [**ARTICLE 3 ADDITIONAL RIGHTS AND COVENANTS**](#page_9) | [**7**](#page_9) |
| [3.1 Limitations on Transfer](#page_9) | [7](#page_9) |
| [3.2 Escrow and Hold Periods.](#page_10) | [8](#page_10) |
| [**ARTICLE 4 PARTICIPATION RIGHTS**](#page_10) | [**8**](#page_10) |
| [4.1 Participation Right](#page_10) | [8](#page_10) |
| [**ARTICLE 5 RIGHTS TO INFORMATION**](#page_13) | [**11**](#page_13) |
| [5.1 Right to Information](#page_13) | [11](#page_13) |
| [**ARTICLE 6 GENERAL**](#page_13) | [**11**](#page_13) |
| [6.1 Notices](#page_13) | [11](#page_13) |
| [6.2 Further Assurances](#page_14) | [12](#page_14) |
| [6.3 Assignment](#page_14) | [12](#page_14) |
| [6.4 Injunctive Relief](#page_15) | [13](#page_15) |
| [6.5 Entire Agreement](#page_15) | [13](#page_15) |
| [6.6 Time of Essence](#page_15) | [13](#page_15) |
| [6.7 Governing Law](#page_15) | [13](#page_15) |
| [6.8 Severability](#page_15) | [13](#page_15) |
| [6.9 Waiver](#page_15) | [13](#page_15) |
| [6.10 Amendments](#page_16) | [14](#page_16) |
| [6.11 Most Favoured Nation](#page_16) | [14](#page_16) |
| [6.12 Binding Effect](#page_16) | [14](#page_16) |
| [6.13 Future Transactions](#page_16) | [14](#page_16) |
| [6.14 Public Announcements](#page_16) | [14](#page_16) |
| [6.15 Public Listing](#page_17) | [15](#page_17) |
| [6.16 Termination](#page_17) | [15](#page_17) |
| [6.17 Counterparts](#page_17) | [15](#page_17) |
| [6.18 Limitation on Liability](#page_17) | [15](#page_17) |

---

------

<u>**INVESTOR RIGHTS AGREEMENT**</u>

**THIS INVESTOR RIGHTS AGREEMENT** (this "**Agreement**") is made as of the 31<sup>st</sup> day of October, 2023 (the "**Effective Date**")

**BETWEEN**:

**SANDBOX ROYALTIES CORP.**, a corporation incorporated under the laws of the Province of British Columbia

(the "**Company**")

**AND**:

**REGAL FUNDS MANAGEMENT PTY LIMITED (ACN 107 576 821), AS TRUSTEE FOR THE REGAL RESOURCES ROYALTIES FUND**, a corporation incorporated under the laws of Australia

(the "**Investor**")

**WHEREAS**:

A. The Company and the Investor (each, a "**Party**" and together the "**Parties**") have entered into a subscription agreement (the "**Subscription Agreement**"), pursuant to which the Company has issued US$17.5 million worth of Shares to the Investor; and

B. As a condition to the completion of the transactions contemplated in the Subscription Agreement, the Company has agreed to grant certain rights to the Investor, and the Investor has agreed to make certain covenants in favour of the Company, each on the terms and subject to the conditions set out in this Agreement.

**NOW THEREFORE**, in consideration of the respective covenants and agreements of the Parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each Party, the Parties agree as follows:

**ARTICLE 1**<br>**DEFINITIONS AND INTERPRETATION**

**1.1 Definitions**

In this Agreement, capitalized terms used but not defined in this Agreement shall have the meanings given in the Subscription Agreement and, unless otherwise indicated, the following terms have the following meanings:

"**Affiliate**" means any Person Controlling, Controlled by, or under common Control with, another Person;

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"**Applicable Laws**" means applicable laws, including international, national, provincial, state, municipal and local laws, treaties, statutes, ordinances, judgments, decrees, injunctions, writs, certificates and orders, by-laws, rules, regulations, ordinances, or other requirements of any Governmental Entity having the force of law;

"**Board**" means the board of directors of the Company;

"**Board Materials**" has the meaning set out in Section 2.3(a);

"**Business Day**" means any day other than a Saturday, Sunday or any other day in which banks in the Province of British Columbia are authorized or required by Applicable Laws to be closed;

"**Control**" means: (a) in respect of a corporation, the ability of a Person or group of Persons acting in concert to influence the manner in which the business of such corporation is carried on, whether as a result of ownership of sufficient voting shares of such corporation to entitle that Person or group of Persons to elect a majority of the directors of such corporation or by contract or otherwise, (b) in respect of a partnership, trust, syndicate or other entity, the actual power or authority to manage and direct the affairs of, or ownership of more than 50% of the transferable beneficial interests in, such entity, or (c) any other relationship as, in fact, constitutes actual control of a Person;

"**Director**" means a member of the Board;

"**Director Eligibility Criteria**" has the meaning set out in Section 2.1(d);

"**Exchange**" means the TSX Venture Exchange, the NEO Exchange, the Toronto Stock Exchange or such other stock exchange(s) and quotation service(s), if any, as the Shares may be listed or quoted on, as applicable, from time to time;

"**Exempt Issuance**" means the issuance by the Company of Shares or Subject Securities: (a) upon the exercise, redemption, conversion or exchange of any Subject Securities for Shares pursuant to their pre-existing terms, (b) to employees, officers, consultants or directors of the Company or any Affiliate of the Company pursuant to security-based compensation arrangements, including stock option plans and restricted share unit plans, (c) as a result of the consolidation or subdivision of any securities of the Company or any Affiliate of the Company, (d) as special distributions, stock dividends or payments in kind, (e) pursuant to a shareholder rights plan, (f) to the Investor or any Affiliate of the Investor or (g) in connection with any bona fide lending transaction or debt financing completed by the Company that does not involve the issuance of debt or equity Subject Securities convertible into Shares;

"**Governmental Entity**" means any domestic or foreign: (a) federal, provincial, state, municipal, local or other government, (b) governmental or quasi-governmental authority of any nature, including any governmental ministry, agency, branch, department, court, commission, board, tribunal, bureau or instrumentality, (c) Exchange or securities regulatory authority, or (d) body exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power of any nature;

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"**Investor Nominee**" means the Director who is nominated by the Investor by notice in writing to the Company and elected or appointed from time to time to the Board pursuant to the terms of this Agreement;

"**Listed Issuer**" means a reporting issuer in one or more provinces or territories of Canada, the common shares of which are listed for trading on an Exchange;

"**Market Price**" has the meaning ascribed thereto under the applicable rules and policies of an Exchange;

"**Nomination Notice**" has the meaning set out in Section 2.1(e);

"**Notice**" has the meaning set out in Section 6.1;

"**Observer**" has the meaning set out in Section 2.3(a);

"**Ownership Percentage**" has the meaning set out in Section 1.3(a);

"**Partially-Diluted Ownership Percentage**" means the percentage ownership interest of the Investor and each Affiliate of the Investor, taken as a whole, in the equity capital of the Company, which shall be calculated by dividing (i) the number of Shares held by the Investor (assuming the exercise, exchange and/or conversion, by the Investor and its Affiliates, of any Subject Securities held by the Investor and its Affiliates at such time) by (ii) the total number of Shares issued and outstanding at such time (assuming the exercise, exchange and/or conversion, by the Investor and its Affiliates, of any Subject Securities held by the Investor and its Affiliates at such time);

"**Participation Right**" has the meaning set out in Section 4.1(b);

"**Person**" means any individual, sole proprietorship, partnership, firm, entity, joint venture, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Entity, and where the context requires, any of the foregoing when they are acting as trustee, executor, administrator or other legal representative;

"**Securities**" means the Shares and/or Subject Securities, as the case may be;

"**Shareholder**" means a holder of Shares;

"**Shares**" means the common shares in the capital of the Company;

"**Subject Securities**" means any securities of the Company convertible into or exercisable or exchangeable for Shares, including convertible debt securities and rights to purchase equity securities;

"**Subsequent Offering**" has the meaning set out in Section 4.1(a);

"**Subsequent Offering Notice**" has the meaning set out in Section 4.1(a);

"**Termination Date**" has the meaning set out in Section 6.16; and

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"**Transfer**" includes any direct or indirect transfer, sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, granting of any option, right or warrant to purchase (including any short sale, put option or call option) or other disposition.

**1.2 Rules of Construction**

In this Agreement, unless otherwise expressly stated or the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the terms "Agreement", "this Agreement" and similar expressions refer to this Agreement in its entirety and not to any particular provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) references to an "Article" or "Section" followed by a number or letter refer to the specified Article or Section of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing the singular number only shall include the plural and vice versa, and words importing the use of any gender shall include all genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the word "including" is deemed to mean "including without limitation" and all similar variations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any reference to this Agreement, or to any other contract, document or other instrument, includes, and is a reference to, this Agreement or such other contract, document or other instrument, as the same may have been, or may from time to time be, amended, restated, replaced, supplemented or novated, and includes any schedules or exhibits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any reference to a statute refers to such statute, and all rules and regulations made under such statute, as the same may have been amended, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any time period within which a payment is to be made or any other action is to be taken under this Agreement shall be calculated excluding the day on which the period commences and including the day on which the period ends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) whenever any action is required to be taken or period of time is to expire on a day other than a Business Day, such action shall be taken or period shall expire on the next following Business Day.

**1.3 Ownership Percentage**

(a) Subject to Section 1.3(b), for purposes of this Agreement "**Ownership Percentage"** means, at a particular time, the percentage ownership interest of the Investor and each Affiliate of the Investor, taken as a whole, in the equity capital of the Company, which shall be calculated by dividing (i) the number of Shares held by the Investor by (ii) the total number of Shares issued and outstanding at such time. In the case of both (i) and (ii), the number of Shares used in the calculation will not include the exercise, exchange and/or conversion, by the Investor and its Affiliate(s) of any Subject Securities held by the Investor and its Affiliate(s) at such time.

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(b) In determining the Ownership Percentage or Partially-Diluted Ownership Percentage, any Shares issued as a result of a Subsequent Offering shall be disregarded and the Investor shall be deemed to hold the Ownership Percentage or Partially-Diluted Ownership Percentage it would have held at such time if such Subsequent Offering had not occurred unless and until the Company has delivered to the Investor a Subsequent Offering Notice in respect of such Subsequent Offering and the Investor fails to provide a Subscription Notice to the Company within the time required in Section 4.1(b), in which case the Shares issued in connection with such Subsequent Offering shall be included in the total number of Shares issued and outstanding for purposes of determining the Ownership Percentage or Partially-Diluted Ownership Percentage.

**ARTICLE 2**<br>**BOARD OF DIRECTORS**

**2.1 Board Nominee**

(a) If and for so long as the Investor has a 10% or greater Ownership Percentage, the Investor shall have the right but not the obligation to designate one Investor Nominee for election to the Board. For greater clarity, the Investor shall no longer be entitled to designate an Investor Nominee after the date on which this Agreement has been terminated in accordance with Section 6.16.

(b) The Company agrees that, following the Effective Date, the Board shall appoint an initial Investor Nominee, (and/or the Company shall otherwise take all other steps required under corporate law to appoint or elect such initial Investor Nominee), subject to applicable law, to serve on the Board until the next annual general meeting of Shareholders; provided that the Investor Nominee (i) is identified by the Investor to the Company, (ii) consents in writing to serve as a director, and (iii) meets the Director Eligibility Criteria.

(c) The Company agrees to nominate and recommend for election, at each meeting of Shareholders at which Directors are to be elected, the Investor Nominee designated by the Investor in accordance with Section 2.1(e).

(d) The Investor agrees that the initial Investor Nominee and any replacement Investor Nominee shall be mutually agreeable to the Investor and the Company, acting reasonably, having regard to the skills matrix and requirements of the Board (as determined in good faith by the Board or an authorized committee of the Board and including, for greater certainty, any Applicable Laws or Exchange rules or policies) for Director candidates, and such individual consents in writing to serve as a Director (the "**Director Eligibility Criteria**").

(e) The Company shall provide the Investor with written Notice (the "**Nomination Notice**"), promptly, and in any event, not less than 60 days in advance of the date set for the meeting of Shareholders at which Directors are to be elected. The Nomination Notice shall include a request for the identification of any Investor Nominee and the detailed information required to be included in an information circular with respect to the appointment of any Investor Nominee. The Investor shall be required to, not later than 45 days in advance of the date set for a meeting of Shareholders of which the Investor is notified pursuant to this Section 2.1(e), provide the Company with written Notice of the identity and particulars requested in the Nomination Notice. If the Investor does not advise the Company of the identity of the Investor Nominee at least 45 days prior to the date set for the meeting of Shareholders at which Directors are to be elected (for any reason other than failure by the Company to provide the Investor with the Nomination Notice within the period prescribed by this Section 2.1(e)), then the Investor will be deemed to have nominated the incumbent Investor Nominee.

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(f) If an incumbent Investor Nominee ceases to serve as a Director, whether due to such Investor Nominee's death, disability, resignation or removal, the Investor shall have the right to nominate a replacement Investor Nominee and the Company shall cause the Board to appoint, as soon as practicable, such replacement Investor Nominee in accordance with this Agreement to fill the vacancy caused by such death, disability, resignation or removal, provided that such Investor Nominee satisfies the Director Eligibility Criteria and the Investor remains eligible to nominate such Investor Nominee pursuant to Section 2.1(a).

(g) If the Investor ceases to have any right to appoint an Investor Nominee pursuant to Section 2.1(a), the Investor shall use commercially reasonable efforts to, unless requested otherwise by the Company, cause the Investor Nominee to forthwith resign from the Board.

**2.2 Management to Endorse and Vote**

The Company agrees that management of the Company shall, in respect of every meeting of Shareholders at which the election of Directors is to be considered, and at every reconvened meeting following an adjournment or postponement of such meeting, endorse and recommend the Investor Nominee identified in the Company's proxy materials for election to the Board, so long as the Investor is entitled to appoint the Investor Nominee and such Investor Nominee satisfies the Director Eligibility Criteria, and shall vote any Shares in respect of which management is granted a discretionary proxy in favour of the election of such Investor Nominee to the Board at every such meeting.

**2.3 Board Observer Rights**

(a) Provided the Investor has not nominated an Investor Nominee pursuant to Section 2.1, and (i) the Investor is entitled to nominate an Investor Nominee pursuant to Section 2.1, or (ii) for a period of 24 months following the Effective Date only, the Investor's Ownership Percentage is at least 5%, the Investor shall be entitled to designate one individual (who may change from time to time upon 30 days' written Notice to the Company) as an observer (an "**Observer**") to attend all meetings of the Board and all committee meetings of the Board. The Observer shall have the right to receive notice of, and review the same information and materials ("**Board Materials**") as are provided to Directors for, such meetings and to speak at such meetings, but shall not be entitled to vote. The Company shall deliver to the Observer copies of any resolutions proposed to be adopted by the Board or committee, as applicable, at the same time as such resolutions are circulated to members of the Board or any committee of the Board, as applicable. Prior to the Observer attending the first meeting of the Board, the Investor shall cause the Observer to sign a customary non-disclosure agreement provided by the Company, provided that any such non-disclosure agreement is reasonable in both form and in substance, and sign an acknowledgement agreeing to be bound by the Company's disclosure and insider trading policies. The Observer shall be reimbursed for all reasonable expenses related to attending all meetings of the Board on a basis that is consistent with the Company's policies for Director reimbursement, as if the Observer were a member of the Board.

------

(b) Notwithstanding anything to the contrary in this Agreement, the Company may exclude the Observer from access to any Board Materials or from any meeting of the Board or any committee of the Board (or any portion of such meeting) if the Board concludes that: (i) such exclusion is necessary to preserve the solicitor-client or litigation privilege between the Company and/or its Affiliates and their respective counsel (provided that any such exclusion shall only apply to such portion of such Board Materials or meeting which would be required to preserve such privilege); (ii) such Board Materials or discussion relates to the Company's or its Affiliates' relationship, contractual or otherwise, with the Investor or its Affiliates or any actual or potential transactions between or involving the Company or its Affiliates and the Investor or its Affiliates; (iii) such exclusion is necessary to avoid a conflict of interest or disclosure that is restricted by any agreement to which the Company or any of its Affiliates is a party or otherwise bound; or (iv) such exclusion is necessary to comply with Applicable Laws.

**2.4 Rights and Privileges of Investor Nominee**

(a) The Investor Nominee shall be entitled to the benefit of any directors' liability insurance or indemnity to which other Directors are entitled.

(b) The Investor Nominee shall be reimbursed for all reasonable expenses related to their service on the Board on a basis that is consistent with the Company's policies for Director reimbursement. The Investor Nominee shall be entitled to compensation consistent with the compensation received by other non-employee independent members of the Board, including any fees and equity awards.

**ARTICLE 3**<br>**ADDITIONAL RIGHTS AND COVENANTS**

**3.1 Limitations on Transfer**

(a) The Investor agrees that it shall not, directly or indirectly, Transfer any Shares (or any other right or option to acquire Shares (pursuant to the terms of a Subject Security or otherwise)) unless the Investor has first complied with the requirements of this Article 3.

(b) Provided that the Investor has at least a 10% Ownership Percentage, if the Investor desires to Transfer any Shares (a "**Proposed Transfer**"), the Investor shall first give written notice by email (the "**Proposed Transfer Notice**") to the Company and then shall cooperate with the Company in good faith to find a buyer to Transfer such Shares that is acceptable to the Company, for no less than 10 Business Days prior to the consummation of a Proposed Transfer. If no such buyer is found after not less than 10 Business Days, the Investor may proceed with the Proposed Transfer to a buyer of its choosing.

------

(c) If the Investor does not complete the Proposed Transfer to a buyer of its choosing within 30 days of the date of the Proposed Transfer Notice, the provisions of this Section 3.1 shall again apply.

(d) For greater certainty, nothing in this Section 3.1 shall restrict the Investor from proceeding with and closing a Proposed Transfer, provided that the Investor has complied with this Section 3.1. Notwithstanding the foregoing, any Transfer by the Investor shall, in addition to compliance with this Section 3.1, be in compliance with all applicable securities laws.

**3.2 Escrow and Hold Periods.**

The Investor agrees to comply with and be bound by any escrow requirements or hold periods imposed by any Exchange or securities regulator.

**ARTICLE 4**<br>**PARTICIPATION RIGHTS**

**4.1 Participation Right** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For so long as the Investor has a 10% Partially-Diluted Ownership Percentage, if the Company issues or proposes to issue any Securities from its treasury for the purpose of raising capital, which for greater certainty shall exclude the issuance of any additional Securities that may be issuable upon the exercise of any other participation, top-up or pre-emptive rights provided to any third party prior to the date hereof and any Exempt Issuance (any such issuance, a "**Subsequent Offering**"), then the Company shall promptly, and, in any event no later than one Business Day following the public announcement of such Subsequent Offering (and if the Subsequent Offering is not announced, no later than ten days prior to the closing date for the issuance of the securities in the Subsequent Offering), provide a written Notice (the "**Subsequent Offering Notice**") to the Investor setting out: (i) the number of Securities issued or contemplated to be issued in connection with the Subsequent Offering and the total number of Shares and Subject Securities issued and outstanding as of the close of business on the Business Day immediately preceding the Subsequent Offering Notice; (ii) the material terms and conditions of any Subject Securities issued or contemplated to be issued in connection with the Subsequent Offering, including any term sheets or offer sheets, if any; (iii) the subscription price per Share or Subject Security issued or to be issued in connection with the Subsequent Offering; and (iv) the proposed closing date for the issuance of Securities to the Investor, assuming the Investor exercises its Participation Rights, which closing date shall be the later of (A) ten days following the date of the Subsequent Offering Notice, (B) the closing date set for the Subsequent Offering, (C) if Shareholder approval is required under Applicable Laws for the Company to complete the issuance of Securities to the Investor pursuant to its exercise of its Participation Rights, the Business Day following receipt of such Shareholder approval, or (D) such other date as the Company and the Investor may agree.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the receipt by the Company of all required regulatory approvals and compliance with Applicable Laws, the Investor shall have the right (the "**Participation Right**"), upon providing notice ("**Subscription Notice**") to the Company within ten Business Days, or three Business Days in the case of a bought deal, following receipt of the Subsequent Offering Notice that it intends to exercise its Participation Right, in whole or in part, to subscribe for and to be issued, on the same terms and conditions of such Subsequent Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Subsequent Offering of Shares, up to such number of Shares that will allow the Investor to maintain the Partially-Diluted Ownership Percentage held immediately prior to the completion of the Subsequent Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Subsequent Offering of Subject Securities, up to such number of Subject Securities that will (assuming the conversion, redemption, exercise or exchange of all Subject Securities issuable in connection with the Subsequent Offering and of all Subject Securities issuable pursuant to the Participation Right) allow the Investor to maintain the Partially-Diluted Ownership Percentage held immediately prior to the completion of the Subsequent Offering.

In the Subscription Notice, the Investor shall specify the number of Shares and Subject Securities beneficially owned, directly or indirectly, by it and its Affiliates as at the date of the Subsequent Offering Notice, and the number of Securities for which the Investor is subscribing. In the case of a Subsequent Offering that is qualified by a prospectus, the Company will use commercially reasonable efforts to qualify the Securities subscribed for by the Investor pursuant to such prospectus, failing which the Securities subscribed for by the Investor will be issued on a private placement basis concurrently with the closing of the Subsequent Offering, subject to receipt of any required Shareholder approval and Exchange or other regulatory approvals. The Company will use its commercially reasonable efforts to promptly obtain (including by applying for any necessary price protection confirmations) all necessary Exchange approvals for the listing of all Shares (including Shares underlying Subject Securities) to be issued to the Investor pursuant to this Article 4. If the Investor is prohibited by Applicable Securities Legislation or other Applicable Laws or the rules of any stock exchange from participating on substantially the terms and conditions of the Subsequent Offering, the Company shall use commercially reasonable efforts to enable the Investor to participate on terms and conditions that are as substantially similar as circumstances permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Investor exercises the Participation Rights and the Company is required, under the rules and policies of the Exchange or applicable securities Laws, to seek Shareholder approval for the issuance of Securities to the Investor pursuant to this Section 4.1, the Company shall use commercially reasonable efforts to, at its expense, duly call and hold a meeting of its Shareholders to consider (and the Company shall recommend that Shareholders vote in favour of) the issuance of the Securities to the Investor within 75 days after the date that the Investor is advised by the Exchange that it will require such Shareholder approval. The Investor may close any such Subsequent Offering prior to obtaining Shareholder approval; provided that, during the period between the closing of any such Subsequent Offering and the date of the Shareholder meeting to consider the issuance of the Securities to the Investor, the Ownership Percentage and the Partially-Diluted Ownership Percentage shall be deemed to be the Ownership Percentage and the Partially-Diluted Ownership Percentage, respectively, immediately prior to the closing of the Subsequent Offering.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For greater clarity, in the event the Company grants any other participation right(s) or pre-emptive right(s) to any third party or parties after the date hereof, the Company shall ensure such right(s) is or are subject to the Participation Right of the Investor provided by this Article 4, and the Company shall ensure additional Securities are offered for issuance to the Investor so as to give effect to this Section 4.1(d) (in relation to the exercise of any such other participation right(s) or pre-emptive right(s) provided to any third party or parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If an Exempt Issuance causes the Investor's (i) Ownership Percentage to be less than 10%, provided that the Investor's Ownership Percentage was not less than 10% prior to the Exempt Issuance, or (ii) Partially-Diluted Ownership Percentage to be less than 10%, provided that the Investor's Partially-Diluted Ownership Percentage was not less than 10% prior to the Exempt Issuance, the Company shall provide the Investor with prompt written notice (the "**Dilution Notice**") of the occurrence of such Exempt Issuance and the Investor shall have the right within 15 Business Days of it receiving the Dilution Notice, by providing written notice (the "**Exercise Notice**") to the Company, to subscribe, at a price determined in good faith by the Board if the Shares are not then listed on an Exchange or a price equal to the Market Price if the Shares are listed on an Exchange, for that number of Shares required for the Investor to maintain its Ownership Percentage at 10% (in the case of (i) above) or its Partially-Diluted Ownership Percentage at 10% (in the case of (ii) above), as applicable. Upon receipt of such notice and the applicable subscription price, the Company shall issue such additional number of Shares to the Investor as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding the foregoing, the Investor shall only be entitled to exercise its Participation Right once for each Subsequent Offering.

------

**ARTICLE 5**<br>**RIGHTS TO INFORMATION** 

**5.1 Right to Information**

During the term of this Agreement, the Company and its subsidiaries shall provide the Investor with such reasonably requested information as may be required by the Investor to meet its regulatory reporting requirements and investor disclosure policies and procedures.

**ARTICLE 6**<br>**GENERAL**

**6.1 Notices**

All notices, demands or other communications (in any case, a "**Notice**") to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient or by email addressed to the recipient. Each Notice shall be delivered, mailed or sent electronically to the Parties at the respective addresses or email addresses indicated below:

If to the Company:

Sandbox Royalties Corp.

Suite 3200-733 Seymour Street

Vancouver, BC V6C 5J3

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with a copy (which shall not constitute notice) to:

Blake, Cassels & Graydon LLP

Suite 3500 - 1133 Melville Street

Vancouver, BC V6E 4E5

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

If to the Investor:

Regal Funds Management Pty Limited

Level 47 Gateway

1 Macquarie Place

Sydney NSW 2000 Australia

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

with copies (which shall not constitute notice) to:

------

Allens

Deutsche Bank Place

126 Phillip St

NSW 2000 Australia

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*.au

And

Osler, Hoskin & Harcourt LLP

Suite 3000, Bentall Four

1055 Dunsmuir St.

Vancouver, BC V7X 1K8

Attention: *[Redacted - Personal Information]*

Email: *[Redacted - Personal Information]*

Any such Notice so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a Business Day and the Notice is delivered, emailed or sent before 5:00 p.m. (Vancouver time) on such day. Otherwise, such Notice shall be deemed to have been given and made and to have been received on the next following Business Day. Any such Notice sent by mail shall be deemed to have been given and made and to have been received on the fifth Business Day following the mailing thereof; provided however that no such Notice shall be mailed during any actual or apprehended disruption of postal services. Any such Notice given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

**6.2 Further Assurances**

Each Party shall act in good faith in performing its obligations and exercising its rights under this Agreement, and shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the other Party may reasonably require from time to time for the purpose of giving effect to this Agreement, and shall use reasonable commercial efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this Agreement.

**6.3 Assignment**

This Agreement is not assignable by any Party except: (a) with the prior written consent of the other Party, or (b) with respect to any assignment by the Investor to any Affiliate of the Investor, in which case no written consent of the Company shall be required, provided that the Investor gives prompt written Notice of such assignment to the Company and such Affiliate agrees to be bound by the terms of this Agreement and executes a written joinder to this Agreement.

------

**6.4 Injunctive Relief**

Each Party agrees that any breach of the terms of this Agreement may result in immediate and irreparable injury and damage to the other Party for which the other Party could not be adequately compensated by damages. Each Party therefore agrees that, in the event of any such breach or any anticipated or threatened breach, the other Party shall be entitled to equitable relief by way of temporary or permanent injunction, without having to prove damages or post any bond, in addition to any other remedies (including damages) to which such Party may be entitled at law or in equity.

**6.5 Entire Agreement**

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersede all prior agreements, understandings, negotiations and discussions, whether written or oral, with respect to the subject matter of this Agreement. There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter of this Agreement except as provided in this Agreement.

**6.6 Time of Essence**

Time shall be of the essence of this Agreement.

**6.7 Governing Law** 

This Agreement is governed by and shall be interpreted and construed in accordance with the Laws of the Province of British Columbia and the federal laws of Canada applicable therein. Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of the courts of the Province of British Columbia situated in the City of Vancouver and waives objection to the venue of any proceeding in such court or that such court provides an inconvenient forum.

**6.8 Severability**

If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated by this Agreement are fulfilled to the extent possible.

**6.9 Waiver**

No waiver of any provision of this Agreement shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Agreement. Waiver of any provision shall not be deemed to waive the same provision after such waiver, or any other provision of this Agreement at any time.

------

**6.10 Amendments**

This Agreement may be amended or supplemented only by a written agreement signed by each of the Parties.

**6.11 Most Favoured Nation**

If the Company desires to enter into an agreement with more favourable terms than this Agreement with any new securityholder of the Company, then (a) the Company shall promptly provide prior written Notice thereof to the Investor and (b) the Company shall not grant more favourable terms to such new securityholders of the Company than are provided in this Agreement and the Investor shall get the benefit of the most favourable terms until such time as the Company enters into an amended agreement with the Investor providing such more favourable terms to the Investor.

**6.12 Binding Effect**

This Agreement shall be binding upon the Parties, their heirs and legal personal representatives, and their respective permitted successors and permitted assigns.

**6.13 Future Transactions** 

The Investor and the Company intend to co-operate and collaborate on future opportunities. In particular, the Investor and the Company agree:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) both parties will consider in good faith and introduce potential co-investment opportunities on new relevant royalty and stream transactions to each other, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company will notify the Investor of additional opportunities to invest equity in the Company entities and consider any such proposed investment by the Investor or related funds in good faith.

**6.14 Public Announcements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to (b) below, all press releases and other public statements or announcements relating the Subscription Agreement and concurrent gold purchase agreement syndication must be on terms agreed by the Investor and the Company, acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Party is required by law, court order or rules of an Exchange to make any such statement or announcement, it must use commercially reasonable efforts (having regard to its disclosure obligations) to agree the form and content of that statement or announcement with the other Party.

------

**6.15 Public Listing** 

The Company intends to cause its Shares to be listed on an Exchange within 6 to 12 months of the date hereof, subject to market conditions and an appropriate use of proceeds. In connection therewith, the Parties acknowledge and agree that the Company has prepared (i) a draft preliminary prospectus, and (ii) the corporate mandates and policies required for a TSX Venture Exchange listing. For clarity, the actual filing of a preliminary prospectus and the approval (and effective date) of any mandates and policies will be at the sole discretion of the Board.

**6.16 Termination**

This Agreement shall terminate and all rights and obligations hereunder shall cease immediately upon the earlier of: (i) the date the Parties hereto agree in writing to terminate this Agreement, or (ii) the Partially-Diluted Ownership Percentage ceases to be at least 10% for a continuous period of at least 30 days (other than in cases where the Partially-Diluted Ownership Percentage falls below 10% due to the failure of the Company to use commercially reasonable efforts to obtain any required Shareholder, Exchange or other approval or authorization for any issuance of Securities to the Investor pursuant to its rights under Article 4 of this Agreement) (the "**Termination Date**"). Notwithstanding the foregoing, the Board Observer right in Section 2.3 shall survive until the later of: (i) the Termination Date, and (ii) the earlier of: (x) the date that is 24 months following the Effective Date, and (y) the date that the Ownership Percentage ceases to be at least 5%.

**6.17 Counterparts**

This Agreement may be executed by the Parties in any number of counterparts, each of which is deemed to be an original, and such counterparts together shall constitute one and the same instrument. Delivery of an executed signature page by email or other electronic means (including via DocuSign) shall be as effective as delivery of a manually executed counterpart of this Agreement.

**6.18 Limitation on Liability**

The Company acknowledges and agrees that where the Investor has entered into this Agreement in its capacity as trustee (the "**Trustee**") of a trust (the "**Trust**"), then despite any other provision in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Trustee's liability arising under or in connection with this Agreement shall be limited solely to and can be enforced against the Trustee only to the extent to which it is actually satisfied out of the Trust's assets, pursuant to the exercise by the Trustee of its right of indemnity out of the Trust's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company waives its rights against and releases the Trustee from any personal liability whatsoever in respect of any liability, loss or damage which cannot be paid or satisfied out of the Trust's assets out of which the Trustee is entitled to be indemnified in its capacity as trustee. This waiver, release and limitation of the Trustee's liability extends to all of its liabilities and obligations in any way connected with any representation, warranty, conduct, omission, undertaking or agreement related to this Agreement;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the limitation in this Section 6.18 shall not apply to any liability or obligation to the extent that the liability or obligation is not satisfied because the Trustee's indemnification out of the Trust's assets is reduced as a result of the Trustee's fraud, wilful default or breach of trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Company acknowledges that in respect of any liability incurred by the Trustee under or arising out of this Agreement in its capacity as trustee, the Company will not have recourse against or right of indemnity from the underlying investors in the Trust in respect of any liability or obligations.

*[Remainder of page intentionally left blank]*

------

**IN WITNESS WHEREOF** the Parties have caused this Agreement to be duly executed as of the date first above written.

---

| | |
|:---|:---|
| **SANDBOX ROYALTIES CORP.** | **SANDBOX ROYALTIES CORP.** |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]* |

---

---

| | |
|:---|:---|
| **Executed** in accordance with section 127 of the *Corporations Act 2001* (Cth of Australia) by **REGAL FUNDS MANAGEMENT PTY LIMITED** (ACN 107 576 821) as trustee for the **REGAL RESOURCES ROYALTIES FUND** | **Executed** in accordance with section 127 of the *Corporations Act 2001* (Cth of Australia) by **REGAL FUNDS MANAGEMENT PTY LIMITED** (ACN 107 576 821) as trustee for the **REGAL RESOURCES ROYALTIES FUND** |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]*r |
| by | /s/ signed *[Redacted - Personal Information]* |
|  | Name: *[Redacted - Personal Information]* |
|  | Title: *[Redacted - Personal Information]* |

---

------

## Exhibit 4.6

------

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].

**VERSAMET ROYALTIES CORPORATION**

and

**KOLPA CANADA LTD.**

and

**ENDEAVOUR SILVER CORP.**

------

**COPPER PURCHASE AGREEMENT**

Dated as of April 1, 2025

------

**TABLE OF CONTENTS** <br>

---

| | | |
|:---|:---|:---|
|  | [**ARTICLE 1**](#page_5)<br>[**INTERPRETATION**](#page_5) |  |
| [Section 1.1](#page_5) | [Definitions](#page_5) | [1](#page_5) |
| [Section 1.2](#page_22) | [Other Rules of Interpretation](#page_22) | [18](#page_22) |
| [Section 1.3](#page_23) | [Days](#page_23) | [19](#page_23) |
| [Section 1.4](#page_23) | [Schedules](#page_23) | [19](#page_23) |
|  | [**ARTICLE 2**](#page_24)<br>[**PURCHASE AND SALE**](#page_24) |  |
| [Section 2.1](#page_24) | [Purchase and Sale](#page_24) | [20](#page_24) |
| [Section 2.2](#page_24) | [Delivery Obligations](#page_24) | [20](#page_24) |
| [Section 2.3](#page_24) | [Delivery of LME Warrants](#page_24) | [20](#page_24) |
| [Section 2.4](#page_25) | [Invoicing](#page_25) | [21](#page_25) |
| [Section 2.5](#page_25) | [Purchase Price](#page_25) | [21](#page_25) |
| [Section 2.6](#page_26) | [Loss of Offtaker Delivery](#page_26) | [22](#page_26) |
| [Section 2.7](#page_26) | [Minimum Lot Size](#page_26) | [22](#page_26) |
| [Section 2.8](#page_26) | [Option to Purchase New Stream Interest & Amendment to Reference Copper](#page_26) | [22](#page_26) |
|  | [**ARTICLE 3**](#page_28)<br>[**DEPOSIT**](#page_28) |  |
| [Section 3.1](#page_28) | [Deposit](#page_28) | [24](#page_28) |
| [Section 3.2](#page_28) | [Closing Date Deliveries](#page_28) | [24](#page_28) |
| [Section 3.3](#page_28) | [Closing Conditions](#page_28) | [24](#page_28) |
| [Section 3.4](#page_28) | [Satisfaction of Conditions Precedent](#page_28) | [24](#page_28) |
| [Section 3.5](#page_29) | [Use of Deposit](#page_29) | [25](#page_29) |
| [Section 3.6](#page_29) | [Termination of this Agreement Prior to Closing Date](#page_29) | [25](#page_29) |
|  | [**ARTICLE 4**](#page_29)<br>[**TERM**](#page_29) |  |
| [Section 4.1](#page_29) | [Term](#page_29) | [25](#page_29) |
| [Section 4.2](#page_29) | [Uncredited Deposit](#page_29) | [25](#page_29) |
|  | [**ARTICLE 5**](#page_30)<br>[**REPORTING; BOOKS AND RECORDS**](#page_30) |  |
| [Section 5.1](#page_30) | [Reporting Requirements](#page_30) | [26](#page_30) |
| [Section 5.2](#page_31) | [Books and Records](#page_31) | [27](#page_31) |
| [Section 5.3](#page_32) | [Technical Reports](#page_32) | [28](#page_32) |
| [Section 5.4](#page_32) | [Inspections](#page_32) | [28](#page_32) |
| [Section 5.5](#page_33) | [Effective Date of Rights](#page_33) | [29](#page_33) |
| [Section 5.6](#page_33) | [Confidentiality](#page_33) | [29](#page_33) |
|  | [**ARTICLE 6**](#page_34)<br>[**COVENANTS**](#page_34) |  |
| [Section 6.1](#page_34) | [Conduct of Operations](#page_34) | [30](#page_34) |
| [Section 6.2](#page_35) | [Processing/Commingling](#page_35) | [31](#page_35) |
| [Section 6.3](#page_36) | [Preservation of Corporate Existence](#page_36) | [32](#page_36) |
| [Section 6.4](#page_36) | [Insurance](#page_36) | [32](#page_36) |
| [Section 6.5](#page_37) | [Project Assets](#page_37) | [33](#page_37) |
| [Section 6.6](#page_37) | [Transfers](#page_37) | [33](#page_37) |

---

(i)

------

---

| | | |
|:---|:---|:---|
| [Section 6.7](#page_38) | [Encumbrances](#page_38) | [34](#page_38) |
| [Section 6.8](#page_39) | [Agreement to Subordinate](#page_39) | [35](#page_39) |
| [Section 6.9](#page_39) | [Offtake Agreements](#page_39) | [35](#page_39) |
| [Section 6.10](#page_40) | [Material Contracts](#page_40) | [36](#page_40) |
| [Section 6.11](#page_40) | [Distributions](#page_40) | [36](#page_40) |
| [Section 6.12](#page_40) | [Abandonment](#page_40) | [36](#page_40) |
| [Section 6.13](#page_40) | [Right of First Refusal](#page_40) | [36](#page_40) |
| [Section 6.14](#page_42) | [Code of Conduct](#page_42) | [38](#page_42) |
| [Section 6.15](#page_42) | [Anti-Corruption and Anti-Terrorism Laws](#page_42) | [38](#page_42) |
| [Section 6.16](#page_42) | [Sanctions](#page_42) | [38](#page_42) |
| [Section 6.17](#page_43) | [Taxation](#page_43) | [39](#page_43) |
|  | [**ARTICLE 7**](#page_43)<br>[**SECURITY**](#page_43) |  |
| [Section 7.1](#page_43) | [Security](#page_43) | [39](#page_43) |
| [Section 7.2](#page_43) | [Stream Properties](#page_43) | [39](#page_43) |
|  | [**ARTICLE 8**](#page_43)<br>[**REPRESENTATIONS AND WARRANTIES**](#page_43) |  |
| [Section 8.1](#page_43) | [Representations and Warranties of the Seller PSA Entities](#page_43) | [39](#page_43) |
| [Section 8.2](#page_44) | [Representations and Warranties of Purchaser](#page_44) | [40](#page_44) |
| [Section 8.3](#page_44) | [Survival of Representations and Warranties](#page_44) | [40](#page_44) |
| [Section 8.4](#page_44) | [Knowledge](#page_44) | [40](#page_44) |
|  | [**ARTICLE 9 <br>DEFAULTS AND DISPUTES**](#page_44) |  |
| [Section 9.1](#page_44) | [Events of Default](#page_44) | [40](#page_44) |
| [Section 9.2](#page_45) | [Remedies](#page_45) | [41](#page_45) |
| [Section 9.3](#page_45) | [Indemnity](#page_45) | [41](#page_45) |
| [Section 9.4](#page_46) | [Disputed Reports](#page_46) | [42](#page_46) |
| [Section 9.5](#page_46) | [Disputes](#page_46) | [42](#page_46) |
| [Section 9.6](#page_48) | [Insolvency Event](#page_48) | [44](#page_48) |
|  | [**ARTICLE 10**](#page_48)<br>[**ADDITIONAL PAYMENT TERMS**](#page_48) |  |
| [Section 10.1](#page_48) | [Payments](#page_48) | [44](#page_48) |
| [Section 10.2](#page_48) | [Taxes](#page_48) | [44](#page_48) |
| [Section 10.3](#page_49) | [New Tax Laws](#page_49) | [45](#page_49) |
| [Section 10.4](#page_49) | [Interest](#page_49) | [45](#page_49) |
| [Section 10.5](#page_50) | [Set Off](#page_50) | [46](#page_50) |
| [Section 10.6](#page_50) | [Judgment Currency](#page_50) | [46](#page_50) |
|  | [**ARTICLE 11**](#page_51)<br>[**GENERAL**](#page_51) |  |
| [Section 11.1](#page_51) | [Further Assurances](#page_51) | [47](#page_51) |
| [Section 11.2](#page_51) | [No Joint Venture](#page_51) | [47](#page_51) |
| [Section 11.3](#page_51) | [Governing Law](#page_51) | [47](#page_51) |
| [Section 11.4](#page_51) | [Costs and Expenses](#page_51) | [47](#page_51) |
| [Section 11.5](#page_51) | [Survival](#page_51) | [47](#page_51) |
| [Section 11.6](#page_51) | [Notices](#page_51) | [47](#page_51) |
| [Section 11.7](#page_52) | [Press Releases](#page_52) | [48](#page_52) |
| [Section 11.8](#page_52) | [Amendments](#page_52) | [48](#page_52) |
| [Section 11.9](#page_53) | [Beneficiaries](#page_53) | [49](#page_53) |

---

(ii)

------

---

| | | |
|:---|:---|:---|
| [Section 11.10](#page_53) | [Entire Agreement](#page_53) | [49](#page_53) |
| [Section 11.11](#page_53) | [Waivers](#page_53) | [49](#page_53) |
| [Section 11.12](#page_53) | [Assignment](#page_53) | [49](#page_53) |
| [Section 11.13](#page_53) | [Invalidity and Unenforceability](#page_53) | [49](#page_53) |
| [Section 11.14](#page_53) | [Counterparts](#page_53) | [49](#page_53) |

---

---

| | |
|:---|:---|
| **ADDENDA** |  |
| [SCHEDULE A \[Redacted - Commercially Sensitive Information - Concessions\]](#page_56) | [56](#page_56) |
| [SCHEDULE B Representations and Warranties of Seller PSA Entities](#page_57) | [57](#page_57) |
| [SCHEDULE C Representations and Warranties of Purchaser](#page_67) | [67](#page_67) |
| [SCHEDULE D \[Redacted - Commercially Sensitive Information - Material Contracts\]](#page_68) | [68](#page_68) |
| [SCHEDULE E Stream NPV Procedures](#page_69) | [69](#page_69) |
| [SCHEDULE F Conditions Precedent](#page_71) | [71](#page_71) |
| [SCHEDULE G \[Redacted - Commercially Sensitive Information - Existing Security\]](#page_73) | [73](#page_73) |
| [SCHEDULE H Arbitration Rules](#page_74) | [74](#page_74) |
| [SCHEDULE I \[Redacted - Commercially Sensitive Information - Consents\]](#page_75) | [75](#page_75) |

---

(iii)

------

**COPPER PURCHASE AGREEMENT**

THIS COPPER PURCHASE AGREEMENT dated as of April 1, 2025 (the "**Signing Date**") between Versamet Royalties Corporation, as Purchaser, ENDEAVOUR SILVER CORP. a company incorporated under the laws of the Province of British Columbia, as Parent and a Seller PSA Entity and KOLPA CANADA LTD., a company incorporated under the laws of the Province of Alberta, as Seller and a Seller PSA Entity.

**RECITALS:**

**A.** Seller is a direct wholly owned Subsidiary of Parent;

**B.** Upon completion of the Acquisition Transaction, Seller will own the legal and beneficial interest in all of the issued and outstanding Equity Securities in the capital of the Mine Owner and the Mine Owner will own legal and beneficial interest in all of the issued and outstanding Equity Securities in the capital of Trasmisora;

**D.** Seller has agreed to sell to Purchaser, and Purchaser has agreed to purchase from Seller, an amount of Refined Copper equal to the Reference Copper, subject to and in accordance with the terms and conditions of this Agreement;

**NOW THEREFORE** in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties hereto, the Parties mutually agree as follows:

**ARTICLE 1**

**INTERPRETATION**

**Section 1.1 Definitions**

As used in this Agreement, including the recitals and schedules hereto, the following terms have the following meanings:

"**Abandonment**" has the meaning set out in Section 6.12.

"**Abandonment Property**" has the meaning set out in Section 6.12.

"**Access Right**" means any and all property rights, easements, rights-of-way, surface rights, rights of use, possession rights, and other rights (including those acquired or held by custom or by prescription) necessary for or related to use, ingress, egress, the construction, maintenance, or operation of mining components, roads, utilities, pipelines, power facilities, communication facilities, transportation routes, and any other associated or ancillary facilities.

"**Acquiror**" has the meaning set out in the definition of "**Change of Control**".

"**Acquisition Transaction**" means the consummation of the transactions contemplated by the SPA, including acquisition by Seller of 100% of the issued share capital in the Mine Owner.

"**Additional Mines**" means the Chonta Mine and the Yen Mine.

------

"**Additional Properties**" means all real property interests, mineral claims, mineral leases, land (surface and access rights), mining concessions, mining rights and exploration licenses and other similar rights, concessions and interests or contractual rights owned or held by a Seller Group Entity as of the Closing Date, or directly or indirectly acquired by or granted to a Seller Group Entity (including a Project Owner) after the Closing Date, but which does not form part of the Stream Properties.

"**Additional Property Minerals**" has the meaning set out in Section 6.2(4).

"**Adverse Impact**" means any effect, event, occurrence, amendment or other change that, when taken together with all other effects, events, occurrences, amendments or other changes, is or would reasonably be likely to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) have a material adverse effect on: (i) the business, operation, property, condition (financial or otherwise) or prospects of the Seller PSA Entities taken as a whole; (ii) the ability of one or more of the Seller PSA Entities to perform its obligations under any of the Stream Documents; (iii) the validity or enforceability of, or the effectiveness or ranking of the Security granted or purporting to be granted under any of the Stream Security Documents or the rights or remedies of Purchaser under any of the Stream Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) have a material adverse effect on the Project Owners' ability to operate the Mine in accordance with the Mine Plan as in effect immediately prior to the occurrence of the Adverse Impact; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in a Trigger Event,

provided, in each case, that it shall not include any effect, event, occurrence, amendment or other change that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) results exclusively from the announcement of the execution of this Agreement or any other Stream Document contemplated herein or therein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) prior to the Completion of the Acquisition Transaction, results from or is caused by: (i) general economic, political or regulatory conditions or events in any of the geographical areas in which the Project Owner or its Subsidiaries operate; (ii) any change in the financial, banking, credit, debt, currency or capital markets in general (whether in Canada, the United States, Peru or any other country or in any international market), including changes in interest rates, commodity prices or raw material prices; (iii) conditions generally affecting any industry (or any segment thereof) or any market in which the Project Owner or its Subsidiaries operate; (iv) acts of God, natural disasters, pandemics, epidemics, national or international political or social conditions, including the engagement in hostilities, whether commenced before or after the date hereof, and whether or not pursuant to the declaration of a national emergency or war (including any escalation or worsening of war), or the occurrence of any military or terrorist attack or other force majeure event; (v) any changes in Applicable Laws, or accounting rules or principles including, for greater certainty, changes in IFRS; (vi) the announcement or pendency of the Acquisition Transaction, the identity of the Seller, the disclosure of the fact that the Seller is the prospective acquirer of the Project Owner or its Subsidiaries, or any communication by the Seller PSA Entities, including communications regarding the plans or intentions of the Seller with respect to the Project Owner or its Subsidiaries, including the impact thereof, if any, on relationships with customers, suppliers, distributors, employees, Governmental Authorities and any other Person with whom the Project Owner or its Subsidiaries have a business relationship, except to the extent such communication is made with the prior consent of the Vendors or is required by Applicable Law; (vii) any act or omission of the Vendors or the Project Owner or its Subsidiaries prior to the Completion of the Acquisition Transaction taken with the consent or at the request of Seller, or required by the SPA; or (viii) any failure of the Project Owner or its Subsidiaries to meet any projections, forecasts, or revenue or earnings predictions for any period ending on or after the date of the SPA (provided, however, that the events, circumstances, changes or effects underlying any such failure shall be taken into account in determining whether an Adverse Impact has occurred or would reasonably be expected to occur); provided, that with respect to clauses (i) through (x), the exclusion shall not apply to the extent such matter has a materially disproportionate effect on the Project Owner and its Subsidiaries, taken as a whole, relative to other comparable Persons operating in the markets and/or industries in which the Project Owner or its Subsidiaries operate.

------

"**Affiliate**" means, in relation to any Person, any other Person controlling, controlled by, or under common control with such first mentioned Person.

"**Agreement**" means this Copper Purchase Agreement and all attached schedules, in each case as the same may be supplemented, amended, restated, modified or superseded from time to time in accordance with the terms hereof.

"**Anti-Corruption Laws**" means, with respect to any Person, (i) the *United States Foreign Corrupt Practices Act of 1977*, as amended; (ii) the *Corruption of Foreign Public Officials Act* (Canada), as amended; (iii) sections 121 (Frauds on the Government) and 426 (Secret Commissions) of the *Criminal Code* (Canada); (iv) *the OECD Convention of December 17, 1997* with respect to measures against corruption of foreign public officials and any OECD Guidelines or Action Statements with respect thereto; (v) the U.K. *Bribery Act 2010*; (vi) any other applicable national and international laws enacted to implement the OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions; (vii) the provisions included in Section IV of Chapter II of Title XVIII of the Peruvian Criminal Code (*Código Penal*); (viii) Peruvian Law No. 30737 (*Ley que asegura el pago inmediato de la reparación civil a favor del estado peruano en casos de corrupción y delitos conexos*) and its corresponding regulations approved by Peruvian Supreme Decree No. 096-2018-EF; (ix) Peruvian Law No. 30424 (*Ley que regula la responsabilidad administrativa de las personas jurídicas en el proceso penal*) and its corresponding regulations approved by Peruvian Supreme Decree No. 002-2019-JUS;and (x) any other law, judgment, order, executive order, decree, ordinance, rule or regulation of any Governmental Authority related to bribery or corruption binding on or affecting such Person, any Affiliate thereof or its or their property or operations;.

"**Anti-Terrorism Laws**" means, with respect to any Person, (i) the U.S. Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department and any other enabling legislation or executive order relating thereto, (ii) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (United States), as amended; (iii) the United States Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001; (iv) the Bank Secrecy Act (United States), as amended; (v) the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada); (vi) Parts II.1 (Terrorism) and XII.2 (Proceeds of Crime) of the Criminal Code (Canada); (vii) regulations promulgated pursuant to the Special Economic Measures Act (Canada), (viii) the United Nations Act (Canada), (ix) the Justice for Victims of Corrupt Foreign Officials Act (Canada), (x) the Freezing Assets of Corrupt Foreign Officials Act (Canada), (xi) the Terrorism Act 2000 (UK), (xii) the Anti-terrorism, Crime and Security Act 2001 (UK), (xiii) the Prevention of Terrorism Act 2005 (UK), (xiv) the Terrorism Act 2006 (UK), (xv) the Counter Terrorism Act 2008 (UK); (xv) Peruvian Law No. 27693 (*Ley que crea la Unidad de Inteligencia Financiera - Perú*) and its corresponding regulations approved by Peruvian Supreme Decree No. 020-2017-JUS; (xvi) Peruvian Law No. 29038 (*Ley que incorpora a la Unidad de Inteligencia Financiera del Peru (UIF- Perú) a la SBS*); (xvii) Peruvian *Legislative Decree No. 1106 (Decreto Legislativo de lucha eficaz contra el lavado de activos y otros delitos relacionados a la minería ilegal y crimen organizado); (xviii) Law Decree No. 25475 (Establecen la penalidad para los delitos de terrorismo y los procedimientos para la investigación, la instrucción y el juicio); (xix) Peruvian SBS Resolution No. 789-2018 (Norma para la prevención del lavado de activos y del financiamiento del terrorismo aplicable a los sujetos obligados bajo supervisión de la uif-perú, en materia de prevención del lavado de activos y del financiamiento del terrorismo); and (xx) any other law, judgment, order, executive order, decree, ordinance, rule or regulation of any Governmental Authority related to anti money laundering, anti-terrorist financing, Sanctions and "know your client" laws binding on or affecting such Person, any Affiliate thereof or its or their property or operations;.*

------

"**Applicable Law**" means any law, regulation, decision, ordinance, code, order or other requirement or rule of law or the rules, policies, orders or regulations of any Governmental Authority, including any judicial or administrative interpretation thereof, applicable to a Person or any of its properties, assets, businesses or operations and including any Anti-Corruption Law or any Anti-Terrorism Law.

"**Approved Acquiror**" means a Person that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has sufficient financial resources and technical and operational capability to continue the mining operations and activities pertaining to or in respect of the Mine, the Stream Properties and the Mineral Processing Facilities in accordance with all Applicable Laws, the Mine Plan, the Authorizations and Good Practice Standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) is incorporated or organized (with a substantial presence), has its management headquarters and presence of substantial assets in the United States, Canada, United Kingdom, Western Europe, Japan, Australia, Peru, Mexico, Brazil and Chile or other jurisdictions with an equivalent rule of law environment and ability to enforce judgments, or (ii) is otherwise acceptable in the discretion of Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is not a Sanctioned Person.

*"**Arbitration Rules**" means the International Commercial Arbitration Act (British Columbia).*

"**Auditor's Report**" means a written report prepared by a national accounting firm in Canada that is independent of the Seller Group Entities and Purchaser, is mutually agreeable to the Parties and has experience and expertise in determining the quantity of copper mined, produced, extracted or otherwise recovered from mining projects, which report determines at a minimum the number of tonnes of Reference Copper that Purchaser was entitled to have received pursuant to this Agreement in respect of any period in dispute.

"**Authorization**" means all authorizations (environmental approvals and decisions on environmental and citizenship consultations), licences, permits (including water and socio- environmental permits), rights (including Access Rights and citizenship participation and consultation rights), privileges, concessions, franchises, clearances, consents, orders and other approvals required to be obtained from any Governmental Authority or other Person, including with respect to Environmental Laws.

"**Base Case Financial Model**" means the excel document which forms the basis upon which the Seller Group Entities' annual budgeting is undertaken and which is in a form substantially equivalent to that provided on the Closing Date including the Reserves and Resources in relation to the Project as of the date thereof of as well as annual details of, among other things, projected tonnes of ore mined, contained metals in ore mined, tonnes of ore processed, grade (including silver, lead, zinc, copper and gold, as applicable) of ore processed, contained metals in ore processed, metallurgical recoveries, dry metric tonnes of concentrates produced, grade (including silver, lead, zinc, copper and gold, as applicable) of concentrate produced, contained metal in concentrate produced, contained metal in any other form or product produced, financial forecasts (including forecast revenue, operating expenditure, capital expenditure and free cash flow) of the Project Owners from the Closing Date until the end of the currently forecast life of mine, as updated annually and from time to time in accordance with this Agreement.

------

"**Base Interest Rate**" means Term SOFR plus 5.75%.

"**Books and Records**" means all books, records, invoices, data, documentation, weight, moisture and assay certificates, scientific and technical information, samples and other information relating to operations and activities with respect to the Mine, the Stream Properties and the mining, treatment, processing, milling, leaching, gravity, refining, concentrating and transportation of Minerals.

"**Business Day**" means any day (other than a Saturday or Sunday) on which banks are open for general business in Vancouver, British Columbia, Calgary, Alberta and Lima, Peru.

"**Change of Control**" of a Person means the consummation of any transaction, including any consolidation, arrangement, amalgamation, merger or demerger or any issue, Transfer or acquisition of voting shares, the result of which is that any other Person or group of other Persons acting jointly or in concert for purposes of such transaction (any such Person or group of Persons being referred to as the "**Acquiror**"): (i) becomes the beneficial owner, directly or indirectly, of 50% or more of votes attached to voting Equity Securities of such Person; or (ii) acquires control of such Person.

"**Chonta Mine**" means the underground mine operated by Explotación Minera Chonta S.A.C. on mining concessions held directly or assigned under mineral leases and/or option agreements by Explotación Minera Chonta S.A.C. and real property leased by Explotación Minera Chonta S.A.C. listed or described in Part II of Schedule A;

"**Closing Date**" means the Business Day on which Purchaser shall pay the Deposit in accordance with this Agreement.

"**Code of Conduct**" has the meaning set out in Section 6.14(1).

"**Collateral**" means all present and future shares and other Equity Securities in the capital of the Mine Owner and related rights in which security interests are granted or purported to be granted pursuant to the Stream Security Documents.

"**Commingling Plan**" has the meaning set out in Section 6.2(2).

"**Compensation Agreement"** has the meaning set out in Section 6.2(2).

"**Completion**" has the meaning given to the term "Closing" in the SPA, as in effect on the date hereof.

**"Comprehensively Sanctioned Country or Territory"** means a country or territory that is, or whose government is, the subject of Sanctions, including the Crimea Region of Ukraine, the Donetsk People's Republic, the Luhansk People's Republic, Sevastopol, the Democratic Republic of North Korea, Cuba, Iran, Sudan, Syria and Russia.

"**Confidential Information**" has the meaning set out in Section 5.6(1).

"**control**" means the right, directly or indirectly, to direct or cause the direction of the management of the business or affairs of a Person, whether by ownership of securities, by contract or otherwise (including by way of entitlement to nominate a majority of the directors of such entity); and "**controls**", "**controlling**", "**controlled by**" and "**under common control with**" have corresponding meanings.

------

"**Copper Cash Price**" means 10% of the Copper Market Price.

"**Copper Market Price**" means, with respect to any day, the per tonne cash settlement price (bid) as quoted in US dollars by the LME for Grade A copper on such day or the immediately preceding day if such day is not a trading day; provided that, if for any reason the LME is no longer in operation or if the per tonne price of copper is not calculated on behalf of or confirmed, acknowledged by, or quoted by the LME, the Copper Market Price shall be determined in a manner endorsed by the LME, failing which the Copper Market Price will be determined by reference to the per tonne price of copper on another commodity exchange satisfactory to Purchaser, acting reasonably.

"**Copper Purchase Price**" has the meaning set out in Section 2.5(1).

"**Date of Delivery**" has the meaning set out in Section 2.3(2).

"**Deposit**" means $35,000,000.

"**Disclosing Party**" has the meaning set out in Section 5.6(1).

"**Disclosure Letter**" means the disclosure letter delivered pursuant to the SPA.

"**Dispute**" means any and all questions, claims, controversies, or disputes arising out of or relating to the validity, construction, interpretation, meaning, performance, effect, breach or termination of any one or more of this Agreement and any Stream Document, or the rights and liabilities arising hereunder or thereunder.

"**Dispute Notice**" has the meaning set out in Section 9.4(1).

"**Distribution**" means with respect to any Seller PSA Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the retirement, redemption, retraction, purchase or other acquisition by such Person of any Equity Securities of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the declaration or payment by such Person of any dividend, return of capital or other distribution (in cash, securities, other property or otherwise) of, on or in respect of, any Equity Securities of such Person or any other payment or distribution of any kind to its direct or indirect securityholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other payment or distribution (in cash, securities, other property, or otherwise) by such Person of, on or in respect of, its Equity Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any payment with respect to indebtedness owing by a Seller PSA Entity to an obligor that is an Affiliate by way of intercompany debt or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any management, consulting or similar fee or any bonus payment or comparable payment, or by way of gift or gratuity, to any Affiliate of such Person or to any director or officer thereof, excluding, for greater certainty, employment compensation in the ordinary course of business.

"**Encumbrances**" means all mortgages, charges, assignments (including by way of security and/or conditional assignments), hypothecs, pledges, security interests, liens, movable assets securities, trusts, easements, restrictions, patent or other reservation in minerals, royalty claims, and other encumbrances and adverse claims of every nature and kind

------

"**Environmental Laws**" mean Applicable Laws relating to pollution or protection of the environment or any natural resource, archaeological preventive programs or occupational or public health or safety, including Applicable Laws relating to emissions, discharges, or releases of Hazardous Substances (whether ordinary, industrial, toxic or hazardous) or wastes into the environment (including ambient air, atmosphere, fauna, flora, surface water, ground water, aquifers, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, management, treatment, storage, disposal, transport or handling of Hazardous Substances (whether ordinary, industrial, toxic or hazardous) or wastes which are applicable to the Mine, the Project Assets or the other assets owned, controlled or managed by either Project Owner or to the activities at any time of either Project Owner.

"**Equity Securities**" means, with respect to any Person, any and all shares, interests, participations, rights in, or other equivalents (however designated and whether voting and non- voting) of, such Person's capital, whether outstanding on the date hereof or issued after the date hereof, including any interest in a partnership, limited partnership or other similar Person and any beneficial interest in a trust, and any and all rights, warrants, options or other rights exchangeable for or convertible into any of the foregoing.

"**Event of Default**" has the meaning set out in Section 9.1.

"**Excluded Taxes**" means any of the following Taxes imposed on or with respect to Purchaser or required to be withheld or deducted from a payment or delivery to Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Taxes imposed or collected by a jurisdiction by reason of Purchaser being incorporated or resident in that jurisdiction, carrying on business in, or having a permanent establishment, principal office or a connection in that jurisdiction or participating in a transaction separate from this Agreement in that jurisdiction, in each case determined by application of the laws of that jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Taxes which arise because of a change in Purchaser or any change in the jurisdiction in which Purchaser or any other recipient is resident or incorporated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes solely attributable to Purchaser's failure to comply with Section 10.2(3),

provided, however, that "Excluded Taxes" shall not include: (x) any Taxes of any kind arising solely as a result of Purchaser entering into, or performing its obligations under, this Agreement or any other Stream Document, or receiving deliveries or payments under this Agreement or any other Stream Document, or making payments under this Agreement (including the Deposit) or (y) any Taxes arising solely as a result of Purchaser enforcing rights under this Agreement or any other Stream Document.

"**Facilities**" means, collectively, the mining, processing, development, production, maintenance, administration, water, electrical and conveyor facilities and installations (including the Mineral Processing Facilities), tailings and waste rock storage facilities, railway infrastructure and rolling stock, storage facilities, stockpiling facilities, shipping infrastructure, utilities, and related ancillary infrastructure, other buildings, structures, improvements, fixtures and other real and personal property, including equipment, re-commissioned, constructed, operated or otherwise used by or on behalf of any Seller Group Entity to extract, beneficiate, process, market, transport and sell Minerals derived from the Stream Properties or to develop, operate or administer the Project, whether or not located within the physical boundaries of the Project Area.

------

"**Good Practice Standards**" means, in relation to the business of mining (including all relevant disciplines pertaining thereto, such as metallurgy, processing, engineering, environmental and governance matters, relations with community and indigenous peoples, citizen participation, prior consultation and other social matters), the exercise of that degree of skill, care, prudence, operational and financial foresight and operating practice which would reasonably and ordinarily be expected from a skilled and experienced person engaged in the same type of undertaking as each Project Owner under the same or similar circumstances, with the exercise of skill, care, prudence, operational and financial foresight and operating practices to be substantially in accordance with recognised best practices in the international mining industry.

"**Governmental Authority**" means any domestic or foreign federal, provincial, regional, state, municipal or other government, governmental department, agency, authority or body (whether administrative, legislative, executive or otherwise), court, tribunal, commission or commissioner, bureau, minister or ministry, board or agency, or other regulatory authority, including any securities regulatory authorities or stock exchange, or any indigenous or native body (or both, as the case may be) exercising governance powers by right, title or custom.

"**Hazardous Substance**" means any substance or a composition that contains one or more substances (a) whose characteristics pollute or damage the environment or any natural resource, (b) which is dangerous or poses a risk to the life or health of any human, including those substances with proven acute or chronic toxicity and other damaging effects, or (c) which is defined or otherwise regulated under any Environmental Law.

"**IFRS**" means the International Financial Reporting Standards, as issued by the International Accounting Standards Board or any successor thereto.

"**including**" or "**includes**" means including without limitation or includes without limitation.

"**Independent Assay Results**" has the meaning set out in Section 6.9(3)(c).

"**Independent Assayer**" means an independent laboratory of recognized standing in the analysis of copper, lead, zinc, gold and silver in base metal concentrates or other Saleable Products that is independent of the Seller Group Entities.

"**Independent Expert"** means an independent engineering and consulting firm of internationally recognized standing in the area of mining and mineral processing appointed by Seller and Purchaser, each acting reasonably, by mutual agreement in writing or, to the extent that Seller and Purchaser cannot agree on any such Person within 15 Business Days after the date on which the requirement that an Independent Expert make such a determination arises, then such independent engineering and consulting firm shall be appointed by the International Centre for ADR in accordance with the Rules for the Appointment of Experts and Neutrals of the International Chamber of Commerce; provided that, unless Purchaser and Seller agree otherwise, an Independent Expert shall be a firm that: (x) is independent of both of Seller and Purchaser and their respective Affiliates; and (y) has not acted for either of Seller or Purchaser or their respective Affiliates in any material capacity for at least one year before the date of appointment of such Independent Expert.

"**Initial Term**" has the meaning set out in Section 4.1.

"**Insolvency Event**" means, in relation to any Person, any one or more of the following events or circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) proceedings are commenced for the insolvency, bankruptcy, winding-up, liquidation, prevention, or dissolution of such Person; (ii) a decree or order of a Governmental Authority of competent jurisdiction is entered adjudging it to be bankrupt or insolvent (unless vacated), including approving any plan of compromise or arrangement or other similar corporate proceeding involving or affecting its creditors; (iii) a petition seeking reorganization, arrangement or adjustment of or in respect of such Person is approved under Applicable Laws relating to bankruptcy, insolvency or relief of debtors (in each case unless vacated); (iv) such Person makes an assignment for the benefit of its creditors, or petitions or applies to a Governmental Authority of competent jurisdiction for the appointment of a receiver or trustee for itself or any substantial part of its assets or property, or commences for itself or acquiesces in or approves or has filed or commenced against it any proceeding under any Applicable Law relating to bankruptcy, insolvency, reorganization, arrangement or readjustment of debt or any proceeding for the appointment of a receiver or trustee for itself or any substantial part of its assets or property, or has a liquidator, administrator, receiver, trustee, conservator or similar Person appointed with respect to it or any substantial portion of its property or assets; or (v) a resolution of its board of directors, shareholders meeting or equivalent body is passed for the receivership or dissolution, winding-up or liquidation of such Person;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in addition to any of the events specified in paragraph (a) above, in the case of any entity incorporated under the laws of Peru: (i) such entity has losses that reduce its net worth to an amount of less than one third its paid-in-capital; (ii) has been declared insolvent under the Peruvian Bankruptcy Law (*Ley No. 27808, Ley General del Sistema Concursal*); (iii) has taken any action or filed, consented or acquiesced to any petition seeking its liquidation, winding-up, reorganization or an arrangement with creditors or to take advantage of any liquidation, bankruptcy, reorganization, or insolvency laws (including, but not limited to, any petitions for the commencement of an insolvency proceeding (*procedimiento concursal*), whether preventive or ordinary); or (iv) has been notified or otherwise has knowledge of any petition filed by any third party seeking the liquidation, winding-up or reorganization of it (including, but not limited to, any petitions for the commencement of an insolvency proceeding (*procedimiento concursal*), whether preventive or ordinary); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) anything analogous or having similar effect to an event listed in the foregoing paragraphs (a) or (b) above occurs in respect of that Person.

"**IRR Amount**" means an amount calculated upon the occurrence of an Event of Default and termination of this Agreement equal to (i) the sum of the Deposit and a per annum percentage return on the Deposit equal to the Base Interest Rate plus 2% per annum less (ii) the net value of Refined Copper delivered to Purchaser under this Agreement where the net value of Refined Copper delivered hereunder is the Copper Market Price of such Refined Copper on the day immediately prior to the Date of Delivery of such Refined Copper less the Copper Cash Price paid by Purchaser on account of such Refined Copper.

"**Judgment Currency**" has the meaning set out in Section 10.6.

"**Kolpa Extracted Minerals**" means Minerals that do not constitute Third Party Purchased Minerals.

**"Legal Reservations" means:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, liquidation, reorganisation, moratoria, administration and other laws generally affecting the rights of creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the time barring of claims under applicable limitations laws, the possibility that an undertaking to assume liability for or indemnity of a person against non-payment of stamp duty may be void and defences of set-off or counterclaim; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other matters which are set out as qualification as to matters of law in any legal opinions to be given to Purchaser in connection with this Agreement.

"**LME**" means the London Metal Exchange or any successor exchange agreed between Purchaser and Seller.

"**LME Warrants**" means, in respect of Refined Copper, a bearer document of title recognized by the LME and representing 25 tonnes (+/- 2%) of Refined Copper held in a LME approved warehouse located in a Permitted Warehouse Location, provided however that any such document of title issued in respect of any Refined Copper that originated from any Sanctioned Person or Comprehensively Sanctioned Country or Territory, including Russia and any Russian branded LME warrants, shall be excluded and shall not constitute an "LME Warrant" hereunder.

"**Losses**" means all claims, demands, proceedings, fines, losses, damages, liabilities, obligations, deficiencies, costs, Taxes, and expenses (including all reasonable and documented legal and other professional fees and disbursements, all interest, penalties, judgment and amounts paid in settlement of any demand, action, suit, proceeding, assessment, judgment or settlement or compromise), in connection with or in respect of any breach or default by the other Party but excluding any punitive or exemplary damages.

"**Material Contracts**" means, collectively, (i) each agreement set forth in Schedule D and any replacements thereof, and (ii) any contract or agreement entered into by a Seller Group Entity and that is material to the construction, development, operation or ownership of the Project or that would be material to the Project Owners if it was terminated or suspended or any party thereto failed to perform its obligations thereunder and that cannot be easily replaced without having a material impact on the development or operation of the Mine.

"**Mine**" means the Huachocolpa Uno polymetallic mine located in the area of Comihuasa, district of Huachocolpa, province and region of Huancavelica, Peru, which is comprised of and covers, *inter alia*, the Stream Properties and the other Project Assets.

"**Mine Data**" has the meaning set out in Schedule B.

"**Mine Owner**" means Compañia Minera Kolpa S.A., a company incorporated and existing under the laws of the Republic of Peru, and its successors and permitted assigns.

"**Mine Plan**" means, at any time, the mine plan substantially set forth in the preliminary economic assessment technical report with an effective date of March 31, 2023 and a report date of May 7, 2024 prepared by LOM Consultants Ltd. for the Project, as updated by the Base Case Financial Model in effect at such time and delivered to Purchaser in accordance with this Agreement.

"**Mineral Processing Facilities**" means any crusher, mill, ore concentrator, processing plant, smelter, refinery or other processing facility owned or operated by any Seller Group Entity located on the Stream Properties and at which Minerals are processed.

"**Minerals**" means any and all ore and marketable metal bearing material or product in whatever form or state (including Produced Copper) that is mined, produced, extracted or otherwise recovered or derived from the Stream Properties and the Additional Mines, including (i) any such material or product derived from any processing or reprocessing of any tailings, stockpiles, waste rock or other waste products originally derived from the Stream Properties or the Additional Mines, and (ii) any ore and any other products requiring further milling, processing, smelting, refining or other beneficiation of Minerals, including Saleable Products.

"**Minimum Lot Size**" has the meaning set out in Section 2.7.

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"**Mining Rights**" means any and all mining claims, mining leases, mineral claims, mining concessions, mineral concessions, exploration permits or licenses, mining licenses, forms of mineral tenure or other rights to Minerals or to access and work upon lands, such as ownership and ancillary rights, surface rights, leasing agreements, lands temporal occupation agreements or otherwise, for the purpose of exploring, exploiting or benefiting Minerals, under the terms of Applicable Laws, whether contractual, statutory or otherwise, or any interest therein whether now owned or hereafter acquired including the concessions, mineral leases, contracts or other similar interests listed or described in Part I of Schedule A. "Mining Rights" includes any amendments, relocations, adjustments, resurvey, additional locations, consolidation, derived rights or conversions of, or any renewal, replacement, amendment or other modification or extensions of any of the foregoing.

"**Monthly Report**" means a written report, in relation to any calendar month detailing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the tonnages and head grades of ore mined from the Stream Properties during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the tonnages and head grades of ore purchased from third parties during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the tonnages and grades of ore processed at the Mineral Processing Facilities during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Mineral Processing Facilities, the types of Saleable Products produced, tonnages, weights and grades (including concentrate grades) during such calendar month and the resulting metallurgical recoveries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the number of tonnes of copper contained in any Saleable Product produced during such calendar month, including copper concentrate, lead concentrate and zinc concentrate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the weight and grade of any Saleable Product delivered or shipped offsite during such calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) end of month stockpile of Saleable Product (tonnage, moisture content and grade) not yet shipped offsite;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an estimate of the Project C1 cash costs and all-in sustaining costs for such calendar month; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such other information in respect of copper as may be reasonably requested by Purchaser.

*"**NI 43-101**" means National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, or any successor instrument, rule or policy.*

"**Offtake Agreement**" means each agreement or contract entered into by a Seller Group Entity with an Offtaker that relates in any way to: (i) the sale of Minerals to an Offtaker; (ii) the delivery of the entitlement to, or the benefit of, Minerals to an Offtaker; or (iii) the smelting, refining or other beneficiation of Minerals by an Offtaker for the benefit of a Seller Group Entity.

"**Offtake Sales Documents**" means such documents as are prepared or produced in connection with sale or transfer of Minerals to an Offtaker, including the provisional and final settlement sheets, provisional and final invoices, metals return statements, credit notes, bills of lading, and any and all certificates and other documentation prepared or produced for or by the relevant Offtaker, including certificates for final shipped moisture content and final analyses and assays evidencing the amount of Minerals, including the quantity of copper and any other metal contained therein, delivered to the Offtaker.

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"**Offtaker**" means (i) any Person that is not a Seller Group Entity that purchases Minerals from a Seller Group Entity or is the recipient of the entitlement to, or benefit of, Minerals from a Seller Group Entity; or (ii) any Person that takes delivery of Minerals for the purpose of smelting, refining or other beneficiation of such Minerals for the benefit of a Seller Group Entity.

"**Offtaker Charges**" means any refining charges, treatment charges, penalties, insurance charges, transportation charges, settlement charges, weight franchise charges, financing charges or price participation charges, royalties or royalty type payments, or other charges, penalties or deductions that may be charged or levied by an Offtaker, regardless of whether such charges, penalties or deductions are expressed as a specific metal deduction, as a recovery rate, a percentage or otherwise.

"**Offtaker Delivery**" means the delivery of Minerals to an Offtaker or the transfer of the entitlement to or benefit of Minerals to an Offtaker, which for greater certainty shall not include any deliveries of Minerals to Persons subsequent to the first Offtaker acquiring such Minerals.

"**Offtaker Payment**" means with respect to (i) Minerals purchased by an Offtaker from a Seller Group Entity, or (ii) Minerals the entitlement to, or benefit of which, is received by an Offtaker from a Seller Group Entity, the receipt from and after the Closing Date by a Seller Group Entity of payment or other consideration from the Offtaker in respect of any Minerals, or if no such consideration is applicable, the delivery of the Minerals (or ownership of the Minerals) to such Offtaker (or to the direction of such Offtaker).

**"Original Financial Statements" means:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in relation to the Mine Owner, its audited financial statements for the financial years ended December 31, 2021, December 31, 2022 and December 31, 2023; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in relation to Parent, its audited financial statements for its financial years ended December 31, 2022, December 31, 2023 and December 31, 2024.

"**Other Minerals**" means ores or other minerals mined, produced, extracted or otherwise recovered from properties that are not one of or do not constitute part of the Stream Properties or the Additional Mines, whether such properties are owned by Seller Group Entities or otherwise;

"**Parent**" means Endeavour Silver Corp., a corporation incorporated under the *Business Corporations Act* (British Columbia), and its successors and permitted assigns.

"**Parties**" means the parties to this Agreement.

"**Perfection Requirements**" means the making or procuring of the appropriate perfection, stamping, endorsements, notarisations, notifications, Authorizations and registration requirements of or with respect to the Stream Security Documents and or the security interest created under them.

**"Permitted Encumbrances" means:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any lien arising by operation of law and in the ordinary course of trading so long as the debt it secures is paid when due or contested in good faith and appropriately provisioned;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any reservations, or exceptions contained in the original grants of land or by applicable statute or the terms of any lease in respect of any Stream Properties, or comprising the Stream Properties which do not materially detract from the value of, or materially impair the use of, the Stream Properties for the purpose of conducting and carrying out mining operations thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) minor discrepancies in the legal description or acreage of or associated with the Stream Properties or any adjoining properties which would be disclosed in an up to date survey and any pre-existing registered easements and pre-existing registered restrictions or pre-existing covenants that run with the land, in either case which do not materially detract from the value of, or materially impair the use of, the Stream Properties for the purpose of conducting and carrying out mining operations thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Encumbrances on cash and cash equivalent investments granted by a Project Owner to a Governmental Authority to secure performance of statutory obligations or regulatory requirements (including reclamation obligations) under Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) rights of way for, or reservations of rights of others for, sewers, water lines, gas lines, electric lines, telegraph and telephone lines, and other similar utilities, or zoning by- laws, ordinances, surface access rights or other restrictions as to the use of the Stream Properties or the Facilities which do not in the aggregate materially detract from the use of such Project Assets for the purpose of conducting and carrying out mining operations thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any rights of expropriation, access or user or other similar such rights conferred or vested on public authorities, provided they are not exercised against any Seller PSA Entity or its assets, or if exercised, do not materially detract from the value of the Stream Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Encumbrances on cash and cash equivalent investments granted by a Project Owner to a public utility or any municipality or governmental or other public authority when required by such utility or municipality or other authority in connection with the operations of the Project Owner, all in the ordinary course of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any contractual right of set-off, other than pursuant to a contract entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Encumbrance listed as 'Existing Security' on Schedule G;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any Encumbrance on Project Assets or the Collateral, provided that such Encumbrance is granted in accordance with Section 6.7; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any Encumbrance created with Purchaser's prior written consent.

"**Permitted Warehouse Location**" means an LME-approved storage facility located within a free-trade zone and such other locations as Purchaser and Seller may agree in their sole discretion, but excluding any storage facility located in the United States of America, Canada and such other locations as Purchaser may reasonably determine in its sole discretion from time to time.

"**Person**" means and includes a Party, individuals, corporations, bodies corporate, limited or general partnerships, joint stock companies, limited liability corporations, joint ventures, associations, companies, trusts, banks, trust companies, Governmental Authority or any other type of organization, whether or not a legal entity.

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"**Peru**" means the Republic of Peru.

"**Produced Copper**" means, subject to Section 2.8, any and all copper produced from or contained in minerals recovered from the Stream Properties and the Additional Mines and any and all copper produced from or contained in minerals processed through existing and future processing facilities of the Huachocolpa Uno mine, other than any copper contained in concentrate in respect of which copper is not a payable metal under the relevant Offtake Agreement.

"**Produced Lead**" means, subject to Section 2.8, any and all lead produced from or contained in minerals recovered from the Stream Properties and the Additional Mines and any and all lead produced from or contained in minerals processed through existing and future processing facilities of the Huachocolpa Uno mine, other than any lead contained in concentrate in respect of which lead is not a payable metal under the relevant Offtake Agreement.

"**Project**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the management, operation, maintenance, repair and expansion of the Mine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the extraction, production, recovery, sale, transportation, storage, processing and delivery of base metals, precious metals and other marketable metals and Minerals in Saleable Products.

"**Project Area**" means the lands (including the subsurface of such lands) within the boundary of the Stream Properties described in Schedule A and includes the Stream Properties.

"**Project Assets**" means all the right, title and interest both present and future of the Seller Group Entities in, to, under or derived from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Stream Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Minerals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Transmission Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all material Authorizations, Mining Rights and other rights (including surface, access and water rights), leases, licences, easements, rights of way, privileges, concessions or franchises owned, controlled, leased, operated or held by or on behalf of any Seller Group Entity at any time in relation to the Project or any Stream Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Material Contracts and any other contract, agreement related to the development, operation, expansion or maintenance of the Project or any Stream Property, or to the mining production, transportation, storage, treatment, processing or marketing of Minerals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any and all other present and after-acquired real or personal property held, owned used or acquired for use by the Project Owner in connection with the Project including in connection with the actual or proposed exploration, development and expansion of any mining operations on the Stream Properties.

"**Project Owner**" or "**Project Owners**" means, collectively, Mine Owner and Trasmisora.

"**Purchaser**" means Versamet Royalties Corporation, and its successors and assigns.

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"**Rate of Exchange**" has the meaning set out in Section 10.6.

"**Receiving Party**" has the meaning set out in Section 5.6(1).

"**Recovered Copper**" means 100% of the Produced Copper (prior to any deduction in respect of any Offtaker Charges) contained in any Offtaker Delivery.

"**Recovered Lead**" means 100% of the Produced Lead (prior to any deduction in respect of any Offtaker Charges) contained in any Offtaker Delivery.

"**Reference Copper**" means (i) prior to Threshold Date No. 1, the greater of (A) Recovered Copper multiplied by 95.8%, and (B) 0.03 pounds per pound of Recovered Lead; (ii) on and after Threshold Date No. 1 but prior to Threshold Date No. 2, Recovered Copper multiplied by 71.85%; and (ii) on and after Threshold Date No. 2, Recovered Copper multiplied by 47.9%.

"**Refined Copper**" means marketable metal bearing material in the form of Grade A copper that is refined by an accredited refiner to standards conforming to the specifications for good delivery (including the Special Contract Rules for Copper -Grade A) of the LME.

"**Relevant Jurisdictions**" has the meaning set out in Schedule G.

"**Reserves**" means proven and probable reserves as defined and incorporated under NI 43- 101.

"**Reserves Statement**" means a statement of Reserves in relation to the Project.

"**Resources**" means measured, indicated and inferred resources as defined and incorporated under NI 43-101.

"**Resources Statement**" means a statement of Resources in relation to the Project.

"**Saleable Products**" means any concentrates, precipitates, doré, bullion, carbon fines, slag or other product or material that contains marketable metals recovered or derived from the Stream Properties or the Additional Mines in respect of which an Offtaker Payment is expected.

"**Sanctioned Person**" means any Person that (i) is, or is owned or controlled, either directly or indirectly, by, or is otherwise acting on behalf of a Person that is the subject of any Sanctions; or (ii) part of, controlled by, or owned by the government, or any agency or instrumentality of the government, of a Comprehensively Sanctioned Country or Territory.

"**Sanctions"** means, with respect to any Person, any trade, economic or financial sanctions administered or enforced by any Governmental Authority that is applicable to such Person or any Affiliate thereof including the U.S. Department of Treasury's Office of Foreign Assets Control, the United Nations Security Council, the Governor in Council (Canada), Global Affairs Canada, Public Safety Canada or His Majesty's Treasury (United Kingdom).

"**Secured Party**" has the meaning set out in Section 6.7.

"**Security**" means the charges and security interests granted in favour of Purchaser pursuant to the Stream Security Documents.

"**SEDAR+**" means the System for Electronic Data Analysis and Retrieval+.

"**Seller**" means Kolpa Canada Ltd., a company existing under the laws of the Province of Alberta and its successors and permitted assigns.

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"**Seller Group Entities**" means the Seller PSA Entities, the Project Owners (following Completion only) and each of their respective Affiliates.

"**Seller PSA Entities**" means Seller and Parent.

"**Seller Share Pledge**" means the share pledge agreement *(Contrato de Garantía Mobiliaria sobre Acciones*) made by Seller under Peruvian law pursuant to which a pledge is created in favour of Purchaser over 100% of the present and future shares and other Equity Securities in the capital of the Mine Owner and related rights.

"**Signing Date**" has the meaning set out in the preamble to this Agreement.

"**SPA**" means the purchase and sale agreement dated April 1, 2025 between Parent, Seller, Kolparc Canada L.P. and GR Holding S.A.in respect of the acquisition of 100% of the issued share capital in the Mine Owner by Seller.

"**Stream Documents**" means, collectively, this Agreement, the Stream Security Documents, and each other agreement, document, instrument or certificate delivered for the benefit of Purchaser pursuant to or otherwise in connection with any of this Agreement or the Stream Security Documents.

"**Stream NPV**" has the meaning set out in Section 9.3(4).

"**Stream Obligations**" means all indebtedness, liabilities and other obligations, present or future, direct or indirect, absolute or contingent, matured or unmatured, at any time or from time to time due or accruing due and owing by or otherwise payable or to be performed by any Seller Group Entity to Purchaser under, in connection with or pursuant to the Stream Documents.

**"Stream Properties"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all real property interests, mineral claims, mineral leases, mining concessions, mining rights, economic administrative unit (*unidad económica administrativa* or UEA), land (surface and access rights), exploration licenses, mining contracts, contractual rights and other similar rights, concessions and interests owned, held, operated, under option or under application by a Seller Group Entity comprising or forming part of the Project, whether created privately or through the actions of any Governmental Authority (collectively, the "**Property Interests**") including but not limited to the owned and leased real property and mining concessions held directly or assigned under mineral leases and/or option agreements listed or described in Part I of Schedule A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all real property interests, mineral claims, mineral leases, mining concessions, mining rights, economic administrative unit (*unidad económica administrativa* or UEA), land (surface and access rights), exploration licenses, mining contracts, contractual rights and other similar rights, concessions and interests owned, held, operated, under option or under application by a Seller Group Entity as of the Closing Date, or directly or indirectly acquired by or granted to a Seller Group Entity (including a Project Owner) after the Closing Date that are located, in whole or in part, within five kilometres of the exterior boundaries of the Project Area (collectively, the "**Acquired Properties**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any present or future renewals, extensions, modifications, divisions, substitutions, replacements, amalgamations, successions, derivations, severances, conversions, revisions, demise to lease, renaming or variation of Property Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether created privately or through the actions of any Governmental Authority, any real property, mining right, tenement, concession, privilege, contract, surface, access or water right and similar interest owned or held, directly or indirectly, by a Seller Group Entity, in, to, under or over all or any portion of the area covered by the Property Interests;

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whether any of the foregoing is acquired or obtained before or after the date of this Agreement and including (i) all plants, buildings, structures, improvements, appurtenances and fixtures located on any of the foregoing or thereunder, (ii) any abandoned Stream Property or related rights or interests subsequently re-acquired, and (iii) any Additional Properties that become subject to this Agreement pursuant to Section 6.2.

"**Stream Security Documents**" means, collectively, the Seller Pledge Agreement and all other agreements, pledges and other security agreements pursuant to which a Seller Group Entity grants to Purchaser mortgages, charges, assignments by way of security, pledges and/or security interests in all or some of the Collateral as security for the Stream Obligations and "Stream Security Document" means any of the Stream Security Documents

"**Sub-Minimum Amount**" has the meaning set out in Section 2.7.

"**Subsidiary**" means, with respect to any Person, any other Person which is, directly or indirectly, controlled by that Person.

"**Tax**" or "**Taxes**" means all present or future taxes, rates, levies, premiums, royalties, imposts, duties, deductions, assessments, withholdings, tariffs, dues, fees and other charges of any nature, including sales or value-added taxes, goods and services taxes, stamp taxes and royalties, and including any interest, fines, penalties, additions to tax, or other liabilities with respect thereto, imposed, levied, collected, withheld or assessed by any Governmental Authority (of any jurisdiction), and whether disputed or not.

"**Tax Returns**" means all returns, declarations, reports, estimates, information returns, elections, designations and statements required to be filed in respect of any Taxes, including any schedule or attachment thereto or amendment thereof.

"**Technical Report**" means a technical report prepared in accordance with NI 43-101 or any other comparable foreign mineral disclosure code.

"**Term SOFR**" means the greater of (i) Term SOFR reference rate for a 3-month term published two Business Days prior to the first day of such term (the "**Reference Business Day**"), as such rate is published by the CME Group Benchmark Administration Limited (or a successor administrator of that reference rate), provided however that if such reference rate for such tenor has not been published on the Reference Business Day, then Term SOFR will be the Term SOFR reference rate for such tenor as published by CME Group Benchmark Administration Limited (or a successor administrator of that reference rate) on the first preceding Business Day for which such reference rate was published so long as such first preceding Business Day is not more than three Business Days prior to the Reference Business Day; and (ii) 2.00% per annum.

"**Third Party Purchased Minerals"** means any and all such ore and marketable metal bearing material or product in whatever form or state (including Produced Copper) that is mined, produced, extracted or otherwise recovered or derived from the Stream Properties and purchased from informal miners or other Persons other than Seller Group Entities, excluding all such ore and marketable metal bearing material or product in whatever form or state that is mined, produced, extracted or otherwise recovered or derived from the Additional Mines.

"**Threshold Date No. 1**" means the date upon which Purchaser has received, in the aggregate, LME Warrants representing more than 6,000 tonnes of Refined Copper hereunder.

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"**Threshold Date No. 2**" means the date upon which Purchaser has received, in the aggregate, LME Warrants representing more than 10,500 tonnes of Refined Copper hereunder.

"**Time of Delivery**" has the meaning set out in Section 2.3(2).

"**Top-Up Amount**" has the meaning set out in Section 2.7(b).

"**Transfer**" means to sell, transfer, assign, convey, dispose or otherwise grant a right, title or interest (including a joint venture interest or an expropriation or other Transfer required or imposed by law or any Governmental Authority, whether voluntary or involuntary), or to abandon, surrender or otherwise relinquish a right, title or interest.

"**Transmission Assets**" means the Definitive Transmission Concession granted by Supreme Resolution N° 087-93-EM issued by the Peruvian Ministry of Energy and Mines on December 28, 1993 with respect to the SE. Ingenio - SE Caudalosa 60 kV Transmission Line (L-6644), as amended, including all assets, rights, Access Rights and other Authorizations related thereto.

"**Trasmisora**" means Compañia Trasmisora Sur Andino S.A.C., a company incorporated and existing under the laws of the Republic of Peru, or any transferee of the Transmission Assets as permitted pursuant to this Agreement, and their respective successors and permitted assigns.

"**Trigger Event**" means any Event of Default, or any event or circumstance which, with notice, the passage of time or both, would constitute an Event of Default.

"**Uncredited Deposit**" means, at any time, the Deposit, less the aggregate amount (if any) that has been credited against the Uncredited Deposit in accordance with Section 2.5; provided that in no event will the Uncredited Deposit be less than nil.

"**Value**" means, with respect to any Refined Copper delivered or deferred hereunder as of any calculation date, the applicable Copper Market Price on the calculation date multiplied by the applicable Reference Copper.

"**Vendor**" has the meaning set out in Section 6.13.

"**Yen Mine**" means the open pit mine operated by Explotación Minera PPM E.I.R.L. and Empresa de Transportes Bendito Niño de Jesus E.I.R.L. on the mining concession "ACUMULACION RUBLO" owned by the Mine Owner through exploitation agreements entered into with the Mine Owner and real property leased by the Mine Owner listed or described in Part III of Schedule A;

**Section 1.2 Other Rules of Interpretation**

(1) Except as may be otherwise specifically provided in this Agreement and unless the context otherwise requires, the Parties agree that (i) the terms "Agreement", "this Agreement", "the Agreement", "hereto", "hereof", "herein", "hereby", "hereunder" and similar expressions refer to this Agreement in its entirety and not to any particular provision hereof; (ii) references to an "Article", "Section" or "Schedule" followed by a number or letter refer to the specified Article or Section of or Schedule to this Agreement; (iii) headings of Articles and Sections are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement (iv) where the word "including" or "includes" is used in this Agreement, it means "including without limitation" or "includes without limitation"; (v) all references to "tonnes" as a measure of mass in this Agreement are to dry metric tonnes; (vi) the language used in this Agreement is the language chosen by the Parties to express their mutual intent; (vii) unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders; (viii) a reference to a statute includes all regulations and orders made pursuant to and rules promulgated under such statute and, unless otherwise specified, any reference to a statute or regulation includes the provisions of any statute or regulation which amends, supplements or supersedes any such statute or any such regulation from time to time; (ix) except where the context otherwise requires, all references to agreements (including this Agreement) and other contractual instruments shall be deemed to be a reference to such agreement or instrument as it may be amended, modified, restated, amended and restated, supplemented or extended from time to time; (x) time is of the essence in the performance of the Parties' respective obligations under this Agreement; (xi) all statements or references to $ or dollar amounts in this Agreement are to US dollars; (xii) any rule of construction to the effect that any ambiguity is to be resolved against the drafting Party shall not be applicable in the interpretation of this Agreement; (xiii) references to "indebtedness" includes any obligation (whether incurred as principal or as surety and whether alone or jointly with others) for the payment or repayment of money, whether present or future, actual or contingent; and (xiv) references to "receiver" includes a receiver, interim receiver, receiver manager, sequestrator, conservator, custodian, administrator, liquidator, monitor or similar official.

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(2) Where this Agreement specifies an amount in a given currency (the specified currency) "*or its equivalent*", the "*equivalent*" is a reference to the amount of any other currency which, when converted into the specified currency utilising any publicly available spot rate of exchange selected by Purchaser (acting reasonably) for the purchase of the specified currency with that other currency at or about 11:00am (Vancouver time) on the relevant date, is equal to the relevant amount in the specified currency.

(3) For purposes of the calculation of the IRR Amount under this Agreement, the Base Interest Rate and Term SOFR shall be determined on the date of termination of this Agreement pursuant to Section 9.2(1)(c).

**Section 1.3 Days**

In this Agreement, a period of days shall be deemed to begin on the first day after the event which began the period and to end at 5:00 p.m. (Vancouver time) on the last day of the period. If, however, the last day of the period does not fall on a Business Day, the period shall terminate at 5:00 p.m. (Vancouver time) on the next Business Day.

**Section 1.4 Schedules**

The following schedules are attached to and form part of this Agreement:

SCHEDULE A [Redacted - Commercially Sensitive Information - Concessions] SCHEDULE B Representations and Warranties of Seller PSA Entities SCHEDULE C Representations and Warranties of Purchaser

SCHEDULE D [Redacted - Commercially Sensitive Information - Material Contracts] SCHEDULE E Stream NPV Procedures

SCHEDULE F Conditions Precedent

SCHEDULE G [Redacted - Commercially Sensitive Information - Existing Security] SCHEDULE H Arbitration Rules

SCHEDULE I [Redacted - Commercially Sensitive Information - Consents]

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**ARTICLE 2**

**PURCHASE AND SALE**

**Section 2.1 Purchase and Sale**

(1) Subject to and in accordance with the terms of this Agreement including Section 2.2, from and after the Closing Date, Seller hereby agrees to sell to Purchaser, and Purchaser hereby agrees to purchase from Seller, an amount of Refined Copper equal to the Reference Copper, free and clear of all Encumbrances. For greater certainty, Reference Copper shall not be reduced for, and Purchaser shall not be responsible for any Offtaker Charges, all of which shall be for the account of Seller.

(2) Seller shall not sell to Purchaser any Refined Copper that has been directly or indirectly purchased on a commodities exchange. Seller shall not sell and deliver to Purchaser any physical Refined Copper resulting from Produced Copper or any other copper produced in Peru and shall not deliver to Purchaser any LME Warrant issued in respect of physical Refined Copper resulting from copper produced in Peru (including Produced Copper).

**Section 2.2 Delivery Obligations**

Subject to completion of the Acquisition Transaction and the Deposit having been paid, during the term of this Agreement, on or before the fifth Business Day after the last day of each calendar month, Seller shall sell and deliver to Purchaser, Refined Copper in an aggregate amount equal to the Reference Copper in each Offtaker Delivery occurring in such calendar month and in respect of which an Offtaker Payment has been made in that calendar month (whether such Offtaker Payment relates to all or any portion of the Produced Copper contained in such Offtaker Delivery). The amount of Recovered Copper and Reference Copper contained in each Offtaker Delivery shall be determined in accordance with the Independent Assay Results applicable to each such Offtaker Delivery.

**Section 2.3 Delivery of LME Warrants**

(1) Seller shall sell and deliver to Purchaser all Refined Copper to be sold and delivered under this Agreement by way of transfer of applicable LME Warrants representing such Refined Copper.

(2) All deliveries of Refined Copper to Purchaser shall be deemed to have been made at such time and on such date (the "**Time of Delivery**" on the "**Date of Delivery**") LME Warrants for such

Refined Copper are transferred to the applicable designated metal account of Purchaser. Title to, and risk of loss of, Refined Copper shall pass from Seller to Purchaser at the place of delivery and the Time of Delivery on the Date of Delivery. All costs and expenses pertaining to each delivery of Refined Copper by way of transfer of applicable LME Warrants representing such Refined Copper shall be borne by Seller.

(3) Seller represents, warrants and covenants that, at each Time of Delivery:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is the legal and beneficial owner of the Refined Copper delivered and credited to the designated metal account of Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has good, valid and marketable title to such Refined Copper and the LME Warrants representing such Refined Copper; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Refined Copper and LME Warrants are free and clear of all Encumbrances.

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**Section 2.4 Invoicing**

(1) Seller shall notify Purchaser in writing at least two Business Days before any delivery and any credit or transfer to the designated metal account of Purchaser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of tonnes of Refined Copper to be delivered and the number of LME Warrants to be transferred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the estimated Date of Delivery and expected Time of Delivery.

(2) At the Time of Delivery, Seller shall deliver to Purchaser an invoice setting out:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of tonnes of Refined Copper so delivered and the number of LME Warrants so transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) details of the specific LME Warrants transferred, including warrant number, warrant ID, location, warehouse company, product, shape, brand, net weight, gross weight and country of origin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Copper Purchase Price for all such Refined Copper to be delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the amount (if any) being credited against the Uncredited Deposit and the remaining balance of the Uncredited Deposit (if any);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Independent Assay Results applicable to such delivery and the Offtake Sales Documents or if the sharing of such documentation is restricted by Applicable Laws, such other information that will allow the Purchaser to verify the number of LME Warrants so transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the aggregate number of tonnes of Refined Copper delivered to Purchaser under this Agreement up to the Time of Delivery (including, the Refined Copper subject to the invoice); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any adjustments required to be made on account of any past or present Sub-Minimum Amounts or Top-Up Amounts in accordance with Section 2.7 to the extent applicable.

**Section 2.5 Purchase Price**

(1) Purchaser shall pay to Seller a purchase price for each tonne of Refined Copper sold and delivered by Seller to Purchaser under this Agreement (the "**Copper Purchase Price**") equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) until the Uncredited Deposit has been reduced to nil, the Copper Market Price on the day immediately prior to the Time of Delivery; with an amount equal to the Copper Cash Price being payable in cash and the difference between the Copper Market Price and the Copper Cash Price being payable by crediting such amount against the Uncredited Deposit in order to reduce the Uncredited Deposit until the Uncredited Deposit has been reduced to nil; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) after the Uncredited Deposit has been reduced to nil, the Copper Cash Price, such amount being payable in cash.

(2) Payment by Purchaser for each delivery of Refined Copper shall be made promptly and, in any event, not later than five Business Days after the later of the Time of Delivery and receipt of the documents set forth in Section 2.4(2).

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**Section 2.6 Loss of Offtaker Delivery**

(1) In the event of any total or partial loss of any Produced Copper prior to the transfer of risk of loss of any such Produced Copper to an Offtaker, then Seller shall be required to sell and deliver to Purchaser an amount of Refined Copper equal to the Reference Copper lost and contained in the Offtaker Delivery or that would have been sent to the Offtaker, in each case based on the applicable Independent Assay Results, such requirement to be performed, notwithstanding any other provision of this Agreement, no later than five Business Days after receipt by a Seller Group Entity of insurance proceeds or any other payment in respect of such loss. Seller shall promptly notify Purchaser of any such loss.

(2) In the event of any total or partial loss of any Produced Copper prior to the conduct of an analysis of the grade and content of copper contained in such lost Minerals by an Independent Assayer pursuant to Section 6.7(3), the Parties will work together in good faith to determine and agree on the amount of lost Reference Copper. For the purpose of determining the lost amount of Reference Copper, reference shall be known information regarding the lost Minerals and historical Independent Assay Results of similar Minerals. If within 30 days of commencing discussions to determine the amount of lost Reference Copper, the Parties have been unable to agree on such amount, any Party may refer the matter to the Independent Expert in accordance with Section 9.5(2), provided further that in its determination, the Independent Expert must apply the provisions of this Section 2.6(2) (or as otherwise agreed). Seller shall be required to sell and deliver an amount of Refined Copper equal to the lost Reference Copper so determined by the Parties or by the Independent Expert in accordance with this Section 2.6(2) or Section 9.5(2), as applicable.

**Section 2.7 Minimum Lot Size**

Notwithstanding Section 2.2, to the extent the amount of any Refined Copper that the Seller is required to deliver pursuant to Section 2.3(1) (the "**Sub-Minimum Amount**") is less than the minimum lot size for a single LME Warrant for Refined Copper (the "**Minimum Lot Size**") then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the extent that the Sub-Minimum Amount is less than 50% of the Minimum Lot Size, the requirement of Seller to deliver the Sub-Minimum Amount shall be postponed until such time as Seller's accrued delivery requirements hereunder in respect of Refined Copper are of sufficient quantity to allow Seller to satisfy the Minimum Lot Size; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Sub-Minimum Amount is equal to or greater than 50% of the Minimum Lot Size, Seller shall deliver, together with the Sub-Minimum Amount, an additional amount of Refined Copper (the "**Top-Up Amount**") equal to the difference between the Minimum Lot Size and the Sub-Minimum Amount, and Seller shall be entitled to set off and deduct, pursuant to Section 10.5, an amount of Refined Copper equal to the Top-Up Amount so delivered from the next required deliveries of Refined Copper by Seller to Purchaser under this Agreement.

Upon the termination of this Agreement, any outstanding deliveries of Refined Copper that have been postponed pursuant to Section 2.7 shall become immediately due for delivery and any Top-Up Amount that has been delivered but not set off pursuant to Section 2.7(b) shall become immediately payable to Seller (calculated using the Copper Market Price as of the Date of Delivery of the Top-Up Amount to Purchaser) or set off against any amounts owing to Purchaser upon termination.

**Section 2.8 Option to Purchase New Stream Interest & Amendment to Reference Copper**

(1) In the event a new mineral deposit (the "**New Mineral Deposit**") is discovered within the Project Area (including any Acquired Property), and all or any portion of such New Mineral Deposit is processed through a new mineral processing facility having a nameplate capacity of not less than 15,000 tonnes per day (the "**New Mineral Processing Facility**"), then:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller PSA Entities shall cause to be prepared an independent Technical Report and feasibility study (and, as applicable, translated to English) (the "**New Technical**

**Report"**) on the proposed New Mineral Deposit and New Mineral Processing Facility, including an estimate of Reserves and Resources for the New Mineral Deposit to be processed through the New Mineral Processing Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Purchaser shall, within 30 days of the later of (i) the delivery to Purchaser of the New Technical Report and (ii) notice by the Seller PSA Entities of a final investment decision by the board of directors of the ultimate parent company of the Seller PSA Entities and the Project Owners to construct the New Mineral Processing Facility, which notice shall include sufficient details as to the approved budget for the New Processing Facilities, have the option to elect to make an additional cash deposit (the "**Additional Deposit**") to Seller in consideration of a new metal stream equivalent to up to 2.2% of the total revenue (the "**New Metal Stream**") from each payable metal produced from the New Mineral Processing Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Additional Deposit shall be determined by dividing the net present value of the New Metal Stream by the net present value of the New Mineral Deposit and multiplying the quotient by the actual capital costs of the New Mineral Processing Facility. For the purposes of calculating the net present value of the New Metal Stream and the net present value of the New Mineral Deposit, the Parties shall adopt the net present value procedures set out in Schedule E, with necessary changes in detail, based on the information in the New Technical Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Additional Deposit shall be paid quarterly to Seller, *pro rata* to the amount contributed by the Seller Group Entities towards the capital costs of the New Mineral Processing Facility during the applicable quarter, and shall be used solely for the purposes of constructing the New Mineral Processing Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to the Additional Deposit, Purchaser shall pay to Seller a purchase price for each unit of refined metal delivered equal to 10% of the spot market price of the applicable metal at the time of delivery; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Prior to the first delivery under the New Metal Stream, Purchaser shall have the option to convert the New Metal Stream into a single metal stream on a net present value neutral basis.

(2) Following notice by Purchaser of its election to make the Additional Deposit, the Parties shall negotiate in good faith and enter into amendments to this Agreement or a new agreement to reflect the New Metal Stream (the "**New Stream Agreement**"). (i) Following execution of the

New Stream Agreement or (ii) if the Purchaser does not elect to make the Additional Deposit in accordance with Section 2.8(1)(b), any Minerals processed through the New Mineral Processing Facility shall be excluded from the calculation of Reference Copper for the purposes of this Agreement.

(3) For greater certainty, for the purposes of this Section 2.8, expansions or modifications to the existing Mineral Processing Facility shall not constitute a New Mineral Processing Facility.

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**ARTICLE 3**

**DEPOSIT**

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| | |
|:---|:---|
| **Section 3.1** | **Deposit** |

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In consideration for the sale and delivery of Refined Copper under and pursuant to the terms of this Agreement, Purchaser hereby agrees to pay to Seller a deposit in cash against the Copper Purchase Price in the amount of the Deposit, payable in accordance with Section 3.3 to the account designated by Seller for this purpose.

**Section 3.2 Closing Date Deliveries**

(1) On or before the Closing Date, the Seller PSA Entities shall deliver to Purchaser the documents, agreements and evidence set out in Part I of Schedule F in form and substance satisfactory to Purchaser.

(2) On or before the Closing Date, Purchaser shall deliver to Seller, the documents and agreements set out in Part II of Schedule F in form and substance satisfactory to Seller.

**Section 3.3 Closing Conditions**

(1) Purchaser shall be obliged to pay to, or as directed by, the Seller the Deposit when each of the following conditions has been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Seller PSA Entities have delivered the items in Section 3.2(1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the conditions set forth in Part I of Schedule F are satisfied or fulfilled to the satisfaction of Purchaser or waived by Purchaser in its sole discretion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Purchaser has obtained the consent set forth in Schedule I.

(2) Each of the Seller PSA Entities shall be obliged to perform their respective obligations hereunder when each of the following conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser has delivered the items in Section 3.2(2) and paid the Deposit in accordance with Section 3.1 and Section 3.3(1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the representations and warranties made by Purchaser pursuant to Schedule B are true and correct in all material respects as of the date hereof (or in any respect in the case of representations and warranties that are qualified by materiality); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No judgment, injunction, order or decree has been issued and no action or proceeding, at law or in equity, is pending or, to the knowledge of Purchaser, threatened by any Person or Governmental Authority to restrain, enjoin or prohibit the consummation of the transactions contemplated by any Stream Document or could reasonably be expected to adversely affect in any material respect any of the Seller PSA Entities' rights, obligations or benefits under this Agreement or the other Stream Documents.

**Section 3.4 Satisfaction of Conditions Precedent**

Purchaser and each Seller PSA Entity shall use all reasonable commercial efforts and take all reasonable action as may be necessary or advisable to satisfy and fulfil all the conditions precedent set forth in Schedule F and Section 3.3(1)(c) applicable to it, as promptly as reasonably practicable other than those conditions that will only be satisfied and fulfilled on the Closing Date including the Completion of the Acquisition Transaction.

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**Section 3.5 Use of Deposit**

The Seller PSA Entities shall ensure that the Deposit is used only for the acquisition of the Mine Owner and/or associated transaction costs.

**Section 3.6 Termination of this Agreement Prior to Closing Date**

(1) This Agreement may be terminated at any time prior to the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual written consent of the Purchaser and the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by either the Purchaser or the Seller if the SPA is terminated such that the Consummation of the Acquisition Transaction shall not proceed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by the Seller if the Purchaser fails to pay the Deposit when required by Section 3.1 and Section 3.3(1).

(2) In the event of the termination of this Agreement by the Purchaser or the Seller pursuant to Section 3.6(1), the terminating Party shall give written notice thereof to the other Parties in accordance Section 11.6, and this Agreement shall thereupon terminate and be of no further force or effect, provided that no Party shall be relieved or released from any direct liabilities or damages arising out of its breach of its obligations under this Agreement or any other Stream Document prior to such termination. Notwithstanding the foregoing, no Party shall be liable to the other Party in the event of a termination of this Agreement by the Purchaser or the Seller pursuant to this Section 3.6(2) for special, incidental, consequential, punitive or indirect damages, including without limitation damages for loss of revenue, loss of profit or loss of opportunity.

**ARTICLE 4**

**TERM**

**Section 4.1 Term**

The term of this Agreement shall commence on the Signing Date and, subject to Section 9.2(1)(c), shall continue until the date that is ten years after the Signing Date (the "**Initial Term**"). Purchaser may terminate this Agreement at the end of the Initial Term by providing the Seller PSA Entities, prior to the expiry of the Initial Term, with written notice of its intention to terminate. If Purchaser has not provided such notice prior to the expiry of the Initial Term, then this Agreement shall continue in full force and effect for successive ten-year periods unless and until Purchaser provides written notice to the Seller PSA Entities terminating this Agreement prior to the end of the then current term.

**Section 4.2 Uncredited Deposit**

If, by the expiry of the term of this Agreement or upon any early termination of this Agreement pursuant to Section 9.2(1)(c) or otherwise upon valid termination of this Agreement, Seller has not sold and delivered to Purchaser an amount of Refined Copper sufficient to reduce the Uncredited Deposit to nil in accordance with this Agreement, then Seller shall pay such Uncredited Deposit to Purchaser within 60 days of demand therefor following the expiry of the term or the termination of this Agreement by Purchaser.

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**ARTICLE 5**

**REPORTING; BOOKS AND RECORDS**

**Section 5.1 Reporting Requirements**

(1) Seller shall deliver to Purchaser a Monthly Report on or before the twentieth (20) Business Day after the last day of each calendar month.

(2) Promptly after the Mine Plan is presented to the board of directors of any Seller Group Entity, and promptly whenever an update to the Mine Plan is adopted by management of any Seller Group Entity, Seller shall provide to Purchaser such Mine Plan or updated Mine Plan, as applicable.

(3) No later than January 31 of each calendar year, Seller shall provide to Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an updated annual production forecast for copper from the Stream Properties during the upcoming calendar year (to be set out on a monthly basis) and the remaining life of mine thereafter (to be set out on a yearly basis);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the amounts of Recovered Copper and Reference Copper as forecast for the upcoming calendar year (to be set out on a monthly basis) and the remaining life of mine thereafter (to be set out on a yearly basis);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a list of assumptions used in developing the forecasts referred to in paragraphs (a) and (b), including the types, tonnages, grade and recoveries of ore from the Stream Properties and the operating costs and sustaining capital during the applicable forecast period in the case of the production forecast;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an updated Reserves Statement and a Resources Statement and the assumptions used in each such statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an updated Base Case Financial Model; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) details as to any deviation or departure in the processes or operations set out in the Initial Technical Report.

(4) Seller shall if practicable, notify and consult with Purchaser regarding any matter concerning the Stream Properties that has or, in the opinion of Seller, is reasonably likely to have an Adverse Impact. Seller shall seek to comply with this Section 5.1(4), to the extent reasonably practicable, prior to any public announcement regarding the matter.

(5) Seller shall give Purchaser written notice of each of the following events promptly upon any Seller PSA Entity becoming aware of such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all material actions, suits, hearings, investigations or proceedings before any Governmental Authority or arbitrator pending or, to any Seller PSA Entity's knowledge, threatened, against or affecting any Seller Group Entity or with respect to the ownership, use, maintenance or operation of the Mine or Stream Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occurrence of an Event of Default or any event or circumstance but for the giving of notice or the lapse of time, or both, would constitute an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any actual or threatened material default or breach under any Material Contract;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any actual or threatened material default, breach, revocation, termination or expropriation of any material Authorization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) incurrence of any Indebtedness in a principal amount individually or in the aggregate in excess of US$40,000,000 (or its equivalent); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any material environmental non-compliance,

in each case, accompanied by a written statement by a senior officer of Seller setting forth details of the occurrence referred to therein.

(6) The Seller PSA Entities shall deliver the following financial statements to Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within 120 days after each fiscal year-end of the Parent, annual comparative consolidated financial statements of the Parent for the year then ended, audited and prepared in accordance with IFRS, together with the notes thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 90 days after each fiscal year-end of Seller and the Project Owners, annual comparative financial statements for the year then ended, unaudited and unconsolidated and prepared in accordance with IFRS, together with the notes thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) within 45 days after the end of each fiscal quarter of the Parent, quarterly unaudited consolidated financial statements of the Parent for the three month period then ended, prepared in accordance with IFRS, together with notes thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within 45 days after the end of each fiscal quarter of Seller and the Project Owners, quarterly unaudited financial statements of the Project Owners and Seller for the three month period then ended, prepared in accordance with IFRS, together with notes thereto,

provided that, to the extent any of the foregoing information is published publicly on Parent's SEDAR+ profile or website, such publication shall constitute provision of such information to Purchaser.

(7) Parent shall publish publicly on Parent's SEDAR+ profile (i) the annual and quarterly production results for copper from the Streaming Properties and (ii) a Reserves Statement and a Resources Statement and the assumptions used in each such statements.

(8) Promptly after preparation of any material environmental, social, climate or governance related report with respect to the Project Assets and operation of the Mine by any Seller Group Entity, and promptly following any update to any such report, the Seller PSA Entities shall provide all such reports to Purchaser, unless such information is published publicly on Seller's SEDAR+ profile or website. The Seller PSA Entities shall use their commercially reasonable efforts to provide Purchaser with any information with respect to the Mine that it requires for its environmental, social and corporate governance reporting requirements and practices, as reasonably requested from time to time.

**Section 5.2 Books and Records**

The Seller PSA Entities shall keep true, complete and accurate Books and Records to enable Purchaser to confirm compliance with the terms and conditions of this Agreement, including the determination of the Reference Copper. The Seller PSA Entities shall permit Purchaser and its authorized representatives and agents to have access to and perform audits, reviews and other examinations of, such Books and Records from time to time, at such reasonable times as Purchaser may request upon reasonable notice and at Purchaser's sole risk and expense, provided that, absent an Event of Default that has occurred and is continuing, Purchaser and its authorized representatives and agents shall not conduct more than one such audit, review or other examination in any fiscal year of Seller.

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**Section 5.3 Technical Reports**

(1) The Seller PSA Entities and the Mine Owner shall prepare any Technical Report as and when required by Applicable Law.

(2) If so requested by Purchaser, the Seller PSA Entities shall use commercially reasonable efforts to assist Purchaser in obtaining at the cost of Purchaser (i) consents and certificates from external qualified persons under NI 43-101 with respect to Technical Reports pertaining to the Stream Properties as may be necessary to allow Purchaser or its Affiliates to make filings of technical reports prepared in accordance with NI 43-101 or other Applicable Law, to the extent any such reports are required to be filed by Purchaser or its Affiliates under Applicable Law, (ii) other technical data, records or information pertaining to the Stream Properties in the possession or control of the Seller PSA Entities to the extent any such information is required for any technical reports required to be filed by Purchaser or its Affiliates under Applicable Law, and (iii) will use commercially reasonable efforts to cause the authors of such Technical Report to have such Technical Report addressed directly to Purchaser or any Purchaser Affiliate if it files such Technical Report under NI 43-101 (to the extent applicable to Purchaser or any Affiliate thereof) or other Applicable Law.

(3) Prior to the filing by Purchaser or any of its Affiliates of any Technical Report on the Mine, Purchaser will give the Seller PSA Entities a reasonable opportunity to review and comment on such Technical Report (and Purchaser shall consider in good faith any comments provided by the Seller PSA Entities), and shall provide to the Seller PSA Entities a final copy or an advance draft copy of any such Technical Report before it is filed or otherwise made publicly available and in any event not less than 5 Business Days before it is so filed. Purchaser agrees that neither the Seller PSA Entities nor any of their Affiliates shall assume any liability in connection with any disclosure by Purchaser or any of its Affiliates with respect to the Mine, including in connection with any Technical Report prepared or filed by Purchaser or any of its Affiliates that contains information concerning the Mine that was disclosed to Purchaser or its Affiliates hereunder. Purchaser shall not be entitled to exercise its rights provided above with respect to the preparation by Purchaser of a Technical Report, in the event that there is a current and complete Technical Report for the Mine that complies with all applicable legal and regulatory requirements and which has been addressed to Purchaser and all consents necessary for Purchaser (including those of third party qualified persons under NI 43-101) to rely on and publicly file such Technical Report for the purposes of Applicable Law have been provided to Purchaser.

(4) Purchaser shall not be entitled to exercise its rights provided in this Section 5.3, with respect to the preparation by Purchaser of a Technical Report, in the event that there is a current and complete Technical Report for the Mine that complies with all applicable legal and regulatory requirements and which has been addressed to Purchaser and all consents necessary for Purchaser (including those of third party qualified persons under NI 43-101) to rely on and publicly file such Technical Report for the purposes of Applicable Law have been provided to Purchaser.

**Section 5.4 Inspections**

Subject at all times to the workplace rules, health and safety regulations and Applicable Law, and under supervision of the Mine Owner, and provided any rights of access do not interfere with any exploration, development, mining or processing work conducted on the Stream Properties, the Seller PSA Entities hereby grant to Purchaser and its representatives and agents, at reasonable times and upon reasonable notice and at Purchaser's sole risk and expense, the right to access and physically inspect the Books and Records and the Stream Properties, in each case to monitor the Project Owners' mining and processing operations on the Stream Properties, to confirm compliance with the terms and conditions of this Agreement, or to otherwise monitor and review mining and processing operations. Absent an Event of Default that has occurred and is continuing, Purchaser and its authorized representatives and agents shall not exercise its rights under this Section more than once per fiscal year of Seller except where required for the purposes of preparing a required Technical Report in accordance with Section 5.3.

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**Section 5.5 Effective Date of Rights**

The rights of Purchaser under Section 5.1 to Section 5.4 of this Agreement are effective on and from the date that Completion occurs.

**Section 5.6 Confidentiality**

(1) Subject to Section 5.6(3) and Section 11.7 each Party agrees that it shall maintain as confidential and shall not disclose, and shall cause its Affiliates, employees, officers, directors, advisors, agents and representatives to maintain as confidential and not to disclose any information (whether written, oral or in electronic format) received or reviewed by such Party (a "**Receiving Party**") from any other Party, its Affiliates, employees, officers, directors, advisors, agents or representatives (a "**Disclosing Party**") as a result of or in connection with this Agreement ("**Confidential Information**"), except in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Receiving Party may disclose Confidential Information to its professional advisors, including its auditors, legal counsel, lenders, brokers, underwriters and investment bankers and prospective financing or acquisition parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to Section 5.6(3) and Section 11.7, a Receiving Party may disclose Confidential Information where that disclosure is necessary to comply with any Applicable Law provided that such disclosure is limited to only that Confidential Information so required to be disclosed and, where applicable, that the Receiving Party will have availed itself of the full benefits of any laws, rules, regulations or contractual rights as to disclosure on a confidential basis to which it may be entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a Receiving Party may disclose Confidential Information where such information is already public knowledge other than by a breach of the confidentiality terms of this Agreement or is known by the Receiving Party prior to the entry into of this Agreement or obtained independently of this Agreement and the disclosure of such information would not breach any other confidentiality obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with the approval of the Disclosing Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a Receiving Party may disclose Confidential Information to those of its and its Affiliates' directors, officers, employees and agents who need to have knowledge of the Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in connection with any arbitration or other legal proceeding arising in connection with this Agreement or any determination hereunder presided over by an Independent Expert or an accounting firm in connection with an Auditor's Report, but any such disclosure shall be subject to such confidentiality procedures as may be reasonably requested by the Disclosing Party and, in the case of an arbitration or other legal proceeding, approved by the arbitrator or court, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent required by a Person that is party to the Intercreditor Agreement, in connection with the transactions contemplated thereunder.

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(2) Each Party shall ensure that its and its Affiliates' employees, directors, officers and agents and those persons listed in Section 5.6(1)(a) and Section 5.6(1)(e), are made aware of this Section 5.6 and comply with the provisions of this Section 5.6. Each Party shall be liable to the other Party for any improper use or disclosure of such terms or information by such persons. In addition, each Party has the right to pursue causes of action or other acts against such persons.

(3) If a Party is required to file this Agreement in any public registry, filing system or depository, including SEDAR+ in order to comply with Applicable Law, it shall notify the other Parties of such requirement within two Business Days of the date of this Agreement, and the Parties shall consult with each other with respect to any proposed redactions to the Agreement in compliance with Applicable Law before it is filed in any such registry, filing system or depository.

**ARTICLE 6**

**COVENANTS**

**Section 6.1 Conduct of Operations**

(1) Subject to Section 6.1(2), all decisions regarding the Mine, the Stream Properties and the Mineral Processing Facilities, including all decisions concerning the methods, extent, times, procedures and techniques of any: (i) exploration, development and mining related to the Mine, including spending on operating and capital expenditures; (ii) leaching, milling, processing or extraction; (iii) materials to be introduced on or to the Stream Properties; and (iv) sales of Minerals and terms thereof shall be made by the Seller PSA Entities and the Mine Owner, in their sole discretion.

(2) The Seller PSA Entities shall, and shall cause the Project Owners and each other applicable Seller Group Entity to, carry out and perform all mining operations and activities pertaining to or in respect of the Mine, the Stream Properties and the Facilities in a commercially prudent manner and in accordance with all Applicable Laws, the Authorizations, the Mine Plan and in accordance with Good Practice Standards. In addition, the Seller PSA Entities shall, and shall cause the Project Owners and each other applicable Seller Group Entities to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ensure that all cut-off grade, short term mine planning, long term mine planning and production decisions concerning the Stream Properties shall be based on metal prices typical of normal industry practice and be made on the assumption that the Mine Owner is receiving payment for all copper produced at the Stream Properties at Copper Market Prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) assume metal prices typical of normal industry practice and that the Mine Owner is receiving payment for all copper produced at the Stream Properties at market prices, without any consideration of the financial impact of this Agreement: (A) in any resource or reserve determination, short term mine planning, long term mine planning and production decisions concerning the Stream Properties; (B) in any studies, analyses or decisions regarding the nature or location of the ore to be mined on, the sequence of mining operations or any related financing thereof; and (C) in any determination to operate, modify, suspend or terminate the Mineral Processing Facilities.

(3) For greater certainty, nothing in this Section 6.1 shall require the Seller PSA Entities, the Project Owners or any of their Affiliates or any other Person to operate or continue operating the Mine if Mine Owner has determined that the exploitation of the Stream Properties is not, at the relevant time, economically feasible taking into account the principles in Section 6.1(2).

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**Section 6.2 Processing/Commingling**

(1) The Seller PSA Entities shall process, and cause the Project Owners to process, all Minerals through the Mineral Processing Facilities and ensure such processing occurs at the Mineral Processing Facilities in a manner consistent with the processing methods described in the Mine Plan. None of the Seller PSA Entities and Project Owners shall process Other Minerals through the Mineral Processing Facilities, except in accordance with Section 6.2(2).

(2) Without limiting Section 6.2(1), the Seller PSA Entities shall not process or commingle, and shall ensure that no Project Owner or other Seller Group Entity or other Person, processes, Other Minerals through the Mineral Processing Facilities, or commingles such Other Minerals with, Minerals mined, produced, extracted or otherwise recovered from the Stream Properties, unless (i) the Mine Owner or other applicable Seller Group Entity has adopted and employs reasonable practices and procedures for weighing, determining moisture content, sampling and assaying and determining recovery factors (a "**Commingling Plan**"), such Commingling Plan to ensure the division of Other Minerals and Minerals for the purpose of determining the quantum of Minerals; (ii) Purchaser shall not be disadvantaged as a result of the processing of Other Minerals in priority to, or concurrently with, the Minerals, or Seller, acting reasonably, shall have entered into an agreement to compensate Purchaser for any such disadvantage providing for a commensurate stream interest in such Other Minerals or another form of compensation (a "**Compensation Agreement**"); (iii) Purchaser has approved the Commingling Plan and, if applicable, the Compensation Agreement, such approval not to be unreasonably withheld; (iv) the Seller PSA Entities shall keep, and shall cause the Project Owners to keep, all books, records, data, information required by the Commingling Plan for the same period of time as is required by the applicable taxation authorities for the retention of financial records; and (v) the Seller PSA Entities shall keep, or cause the Mine Owner to keep, all samples required by the Commingling Plan in accordance with Good Practice Standards. The Seller PSA Entities agree to revisit, or cause the Mine Owner or other applicable Seller Group Entity to revisit, the Commingling Plan and the Compensation Agreement if Purchaser reasonably determines that circumstances have changed, in order to ensure that the Commingling Plan continues to provide for the accurate measurement of Minerals and the Compensation Agreement reasonably compensates Purchaser for any disadvantage. For greater certainty, the foregoing does not apply to the handling of Minerals by an Offtaker in accordance with its standard operating procedures and Good Practice Standards.

(3) The Seller PSA Entities Parties shall give written notice to Purchaser (i) no later than 30 days prior to the processing of any minerals from any Additional Properties through the Mineral Processing Facilities of the Project, and (ii) in a Monthly Report no later than 90 days after the direct or indirect acquisition by or grant to any Seller Group Entity of any Additional Properties in Peru, in each case which notice shall include all material details of the Additional Properties then available to the Seller PSA Entities and the Project Owners.

(4) If any minerals from Additional Properties ("**Additional Property Minerals**") are processed through any existing or newly constructed Mineral Processing Facilities of the Project, other than a New Mineral Processing Facility, the Additional Properties shall, without any further action or payment be deemed to form part of the Stream Properties and the copper contained in Additional Property Minerals will constitute Produced Copper, but only for so long as minerals from such Additional Properties are processed through such Mineral Processing Facilities. If at any time minerals from such Additional Properties cease to be processed through the Mineral Processing Facilities, such Additional Properties shall, without any further action, no longer be deemed to form part of the Stream Properties and copper contained in minerals produced therefrom will not constitute Produced Copper.

(5) Notwithstanding any other provision herein, (i) no Additional Properties (including, any Additional Properties that may be deemed to form part of the Stream Properties) shall form part of the Collateral or be subject to any other covenants or restrictions under this Agreement and (ii) copper contained in ore originating from any Additional Property or other property owned directly or indirectly by the Parent, other than the Stream Properties, which is not processed through the Mineral Processing Facilities will not constitute Produced Copper.

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(6) If at any time Third Party Purchased Minerals or Additional Property Minerals are processed through the Mineral Processing Facilities or commingled with Kolpa Extracted Minerals and the aggregate amount of Third Party Purchased Minerals and Additional Property Minerals to be processed or commingled exceeds 10% of the aggregate amount of the Minerals to be processed during the preceding three month period then the Seller Group Entities shall adopt and employ a Commingling Plan and the Seller PSA Entities shall enter into a Compensation Agreement with Purchaser to ensure that Purchaser is not disadvantaged as a result of the processing or commingling of Third Party Purchased Minerals or Additional Property Minerals with Kolpa Extracted Minerals and the provisions of Section 6.2(2) shall apply to such Third Party Purchased Minerals and Additional Property Minerals as if they were Other Minerals and Kolpa Extracted Minerals as if they were Minerals, with necessary changes in detail.

**Section 6.3 Preservation of Corporate Existence**

(1) Except as permitted by Section 6.6, each Seller PSA Entity shall do all things necessary or advisable to maintain its corporate existence.

(2) Without limiting Section 6.6 and Section 11.12, Seller shall not, and the Seller PSA Entities shall cause the Project Owners not to, consolidate, amalgamate with, or merge with or into, or Transfer all or substantially all of its assets relating to the Project to, or reorganize, reincorporate or reconstitute into or as another entity or participate in a demerger, or continue to any other jurisdiction or consummate a similar corporate event unless: (i) at the time of such consolidation, amalgamation, merger, reorganization, reincorporation, reconstitution, demerger, Transfer, continuance or similar corporate event, the resulting, consolidated, surviving or transferee entity/(ies) assumes in favour of Purchaser all the obligations of such Seller PSA Entity under each Stream Document to which such Seller PSA Entity is a party; (ii) Purchaser has provided its prior written consent to such consolidation, amalgamation, merger, reorganization, reincorporation, reconstitution, demerger, Transfer, continuance or similar corporate event, such consent not to be unreasonably withheld; and (iii) each Seller PSA Entity acknowledges, confirms and agrees in favour of Purchaser that its obligations under each Stream Document to which it is a party continue in full force and effect despite such consolidation, amalgamation, merger, reorganization, reincorporation, reconstitution, demerger, Transfer, continuance or similar corporate event.

**Section 6.4 Insurance**

(1) The Seller PSA Entities shall maintain, and shall cause the Project Owners to maintain, with reputable insurance companies, insurance (including business interruption insurance) with respect to the Project Assets and the operations of the Project Owners conducted on and in respect of the Mine against such casualties and contingencies and of such types and in such amounts as is customary in the case of similar operations in similar locations, which shall include insurance on each shipment of Minerals from the Mine to the extent such insurance is available to the Seller PSA Entities or the Project Owners on reasonable commercial terms, until risk of loss for such shipment has been transferred to the Offtaker.

(2) Seller shall, upon request of Purchaser, furnish to Purchaser a certificate setting forth the nature and extent of all insurance maintained by or on behalf of the Seller PSA Entities and the Project Owners in accordance with Section 6.4(1) and confirming its adequacy and sufficiency. Seller shall, upon the request of Purchaser, provide Purchaser with copies of all insurance policies as in effect from time to time relating to the Project Assets.

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(3) The Seller PSA Entities shall not do or omit to do anything, or cause anything to be done or omitted to be done, whereby any insurance required to be effected hereunder would, or would be likely to, be rendered void or voidable or suspended, impaired or defeated in whole or in part.

**Section 6.5 Project Assets**

The Seller PSA Entities shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) except pursuant to a Transfer in compliance with Section 6.6, cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Mine Owner to be the only legal and beneficial owner of, and ensure that, other than as arising under the Permitted Encumbrances, no other Person holds or acquires any ownership right, title or interest in, the Project Assets (other than the Transmission Assets); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Trasmisora to be the only legal and beneficial owner of, and ensure that, other than as arising under the Permitted Encumbrances, no other Person holds or acquires any ownership right, title or interest in, the Transmission Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to Section 6.12, keep, or cause the Project Owners to keep, the Stream Properties in good standing except as permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) cause the Project Owners to maintain all Authorizations necessary to operate the Mine in good standing and construct, develop and operate the Mine in a commercial prudent manner consistent with the Mine Plan and Good Practice Standards and in compliance with all Applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if Mine Owner intends to stockpile, store, warehouse or otherwise place Minerals off the Stream Properties, before doing so, the Seller PSA Entities shall obtain from the property owner, operator or both, as applicable, where such stockpiling, storage, warehousing or other placement occurs, to provide in favour of Purchaser a written acknowledgement in form and substance satisfactory to Purchaser, acting reasonably, which provides that Mine Owner's and/or its Affiliates', as applicable, rights to the

Produced Copper shall be preserved.

**Section 6.6 Transfers**

(1) Except with the prior written consent of Purchaser, the Seller PSA Entities shall not, and shall cause the other Seller Group Entities to not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) permit, suffer or allow either Project Owner to Transfer, in whole or in part, or otherwise cease to hold (other than as contemplated by Section 6.12 or a transfer of Minerals in the ordinary course of business) all beneficial and legal title of the Stream Properties and the other Project Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Transfer, in whole or in part, or otherwise cease to hold (except as permitted by this Agreement), their direct or indirect interests in Seller or any Project Owner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agree to, or enter into any agreement, arrangement or other transaction with any Person that would cause, or otherwise allow or permit to exist, a Change of Control of Seller or any Project Owner,

provided that, nothing in this Section 6.6 shall restrict: (i) a change in the registered or beneficial ownership of voting securities of a Seller Group Entity or (ii) acquisition of control of such Seller Group Entity, if the voting shares of such Seller Group Entity were listed on a public securities exchange in Canada or the United States immediately prior to the completion of such transaction.

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(2) In addition, the Seller or any Project Owner may undergo a Change of Control, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser has received at least 30 days' prior written notice of such Change of Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Acquiror is an Approved Acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there is no Event of Default (or an event which with notice or lapse of time or both would become an Event of Default) that has occurred and is continuing as at the date of the Change of Control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each such entity acknowledges, confirms and agrees in favour of Purchaser that its obligations under each Stream Document to which it is a party continue in full force and effect both before and after giving effect to such Change of Control.

(3) Notwithstanding Section 6.6(1)(a), the Mine Owner may Transfer Project Assets (other than any Mining Properties) not reasonably required for, or useful in connection with, the operation of the Mine in accordance with the Mine Plan or which, if Transferred, would not cause an Adverse Impact.

**Section 6.7 Encumbrances**

Seller and Parent shall not, and shall ensure that the Mine Owner does not, grant or allow to exist an Encumbrance, other than any Permitted Encumbrances (other than Permitted Encumbrances permitted solely by virtue of this Section 6.7 in connection with paragraph (j) of the definition of "Permitted Encumbrances"), in respect of all or any of the Project Assets or the Collateral in favour of any other person (the "**Secured Party**") unless the Secured Party agrees in advance in writing in favour of Purchaser on terms satisfactory to Purchaser, acting reasonably:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to assume, be bound by and made subject to the terms of this Agreement applying to Seller and the Mine Owner as though it was an original party thereto in the event it takes possession of or forecloses on the Project Assets and to cause any person that acquires all or any part of the Project Assets or acquires control of the Seller or the Mine Owner in connection with any enforcement action of the Secured Party to so assume, be bound by and made subject to the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the event that this Agreement is terminated or disclaimed through, as part of or as a result of any Insolvency Event, to enter into a new copper purchase agreement with Purchaser on the same terms as this Agreement and to cause any resulting transferee that acquires all or any part of the Project Assets, or acquires control of Seller or the Mine Owner, in connection with any enforcement action of the Secured Party resulting from or as part of an Insolvency Event to enter into a copper purchase agreement with Purchaser on the same terms as this Agreement and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to cause any Transfer of the Project Assets or any right, title or interest therein or any Change of Control of the Seller or the Mine Owner that occurs pursuant to or in connection with any enforcement of such Encumbrance or any Insolvency Event, to be made subject to this Agreement and otherwise undertaken in accordance with this Section 6.7, even if this Agreement is terminated or disclaimed through, as part of or as a result of, any Insolvency Event.

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**Section 6.8 Agreement to Subordinate**

The Purchaser shall subordinate the Security, on terms and conditions satisfactory to the Purchaser, acting reasonably, to the security interests of third-party lenders or financiers to any Seller Group Entity that specifically requires priority. If required by a Secured Party, the Purchaser agrees to enter into an intercreditor agreement with such Secured Party (such agreement to be negotiated in good faith and using commercially reasonable efforts) at the cost and expense of the Seller PSA Entities to establish the subordination of the Security and such other matters as the Secured Party or the Purchaser may reasonably require (including, without limitation, the terms of Section 6.7) on terms reasonably acceptable to the Purchaser.

**Section 6.9 Offtake Agreements**

(1) The Seller PSA Entities shall ensure, and shall cause the Mine Owner to ensure, that: (i) when Minerals that contain any marketable metal are to be sold or otherwise disposed of, all such Minerals are sold by the Mine Owner to an Offtaker pursuant to an Offtake Agreement; and (ii) no Seller Group Entity shall smelt, refine or beneficiate any Produced Copper and the final sale or delivery of Produced Copper shall only be made to an Offtaker pursuant to an Offtake Agreement.

(2) The Seller PSA Entities shall ensure, and cause the Mine Owner to ensure, that all Offtake Agreements entered into by the Mine Owner (or any other Seller Group Entity) shall be on commercially reasonable arm's length terms and conditions for marketable and metal-bearing material similar in make-up and quality to those derived from the Minerals.

(3) The Seller PSA Entities shall ensure, and cause the Mine Owner to ensure, with respect to each Offtaker Delivery to be made to an Offtaker pursuant to an Offtake Agreement, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Offtaker Delivery is weighed, and the Minerals contained in the Offtaker Delivery are assayed, in each case by an Independent Assayer to determine the grade and content of copper in accordance with industry standard assaying practices and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the same Independent Assayer is used by the Seller Group Entities to provide an analysis of copper, lead, zinc, silver and gold contained in such Offtaker Delivery for purposes of such Offtake Agreement and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the results of such assay procedures including the applicable certificate of analysis (collectively, the "**Independent Assay Results")** with respect to such Offtaker Delivery are used to determine grade and content under such Offtake Agreement and this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Independent Assay Results are provided to Purchaser as soon as reasonably practicable and in any event by the Time of Delivery in accordance with Section 2.4(2).

(4) The Seller PSA Entities shall, and shall cause the Mine Owner and other Seller Group Entities to, deliver all Minerals that include marketable metal to each Offtaker in such quantity, description and amounts and at such times and places as required under and in accordance with each Offtake Agreement.

(5) Seller shall promptly provide to Purchaser confirmation of the terms of any such Offtake Agreement and, within 15 days after the execution thereof by each of the parties thereto, Seller shall provide to Purchaser a final signed copy of such Offtake Agreement except to the extent prohibited from doing so by Applicable Laws or, provided that the Seller has used reasonable endeavors to obtain consent to disclose such Offtake Agreement, by any confidentiality obligations under such Offtake Agreement.

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**Section 6.10 Material Contracts**

(1) Seller shall promptly notify Purchaser in writing when any material dispute arising out of or in connection with any Material Contract is commenced and shall provide Purchaser with timely updates of the status of any such dispute and the final decision and award of the court or arbitration panel with respect to such dispute, as the case may be.

(2) The Seller PSA Entities shall promptly following execution thereof deliver to Purchaser copies of all Material Contracts and any and all amendment thereto.

**Section 6.11 Distributions.**

Upon the occurrence of a Trigger Event and until any such Trigger Event has been remedied or in the event the making of a Distribution would cause a Trigger Event, the Seller PSA Entities shall not, and shall cause the Project Owner not to make any Distribution other than Distributions by the Seller PSA Entities designed to enable Seller to fulfill its Stream Obligations, in the manner determined by the Seller in its sole discretion.

**Section 6.12 Abandonment**

Mine Owner may abandon, surrender, relinquish or allow to lapse or expire any of the Stream Properties (an "**Abandonment**", and "**Abandon**" and "**Abandoned**" shall have corresponding meanings) if Mine Owner determines, acting in a commercially reasonable manner, that it is not economical to mine the Minerals from such Stream Properties that it proposes to Abandon and the Seller PSA Entities have provided Purchaser with at least ninety (90) days' prior written notice of such Abandonment and the Seller PSA Entities have not received from Purchaser, at least 30 days before the proposed date of the Abandonment, written notice that Purchaser desires Mine Owner to convey or cause the conveyance of such Stream Properties to be Abandoned (the **"Abandonment Property**") to Purchaser or an assignee thereof. If such a written notice is received by the Seller PSA Entities from Purchaser, the Seller PSA Entities shall, in exchange for consideration of one U.S. Dollar, acting in good faith, use commercially reasonable efforts to convey or cause the conveyance of the Abandonment Property to Purchaser on an as is, where is basis and at the sole cost, risk and expense of Purchaser and shall thereafter have no further obligation to maintain the title to such Abandonment Property. If Purchaser does not give such written notice to the Seller PSA Entities within the prescribed period of time, Mine Owner may Abandon such Abandonment Property and shall thereafter have no further obligation to maintain the title to such Abandonment Property or maintain such Abandonment Property in good standing.

**Section 6.13 Right of First Refusal**

(1) If Seller or any Seller Group Entity (the "**Vendor**") receives a Definitive Offer from a third party that would be binding upon acceptance by the Vendor (a "**Third Party Offer**"), to purchase a royalty, stream, participation, production or similar interest or to enter into any agreement that is similar to a royalty, stream, participation or production interest agreement, in each case, in respect of or with reference to any metals, minerals or products or by-products of whatever kind and nature and in whatever form or state, in, under or upon the surface or subsurface of any Stream Property (collectively, a "**ROFR Interest**"), and the Vendor is willing to accept that

Third Party Offer, then the Seller PSA Entities shall cause the Vendor, by notice in writing delivered to Purchaser, to offer to sell all, but not less than all, of the ROFR Interest so sought to be purchased by the third party under the Third Party Offer to Purchaser at the same price and otherwise upon the same terms and conditions as are contained in the Third Party Offer, and to provide to Purchaser the best available information that any Seller Group Entity has with respect to the ROFR Interest (including any information provided to the third party) (the "**ROFR Offer**"); provided that, if the Third Party Offer includes non-cash consideration that is personal to the third party (including shares of the third party), then Purchaser shall be entitled to substitute such non-cash consideration with cash or non-cash consideration that is personal to Purchaser (including shares of Purchaser or any of its Affiliates) with the same or greater value, liquidity and marketability as the third party's non-cash consideration. For purposes of this Section, "**Definitive Offer**" means a definitive agreement containing all the terms and conditions of the ROFR Interest and the purchase thereof that will become binding upon the Vendor and the applicable third party upon execution by the Vendor.

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(2) Purchaser may, within 30 days from the date of delivery of the ROFR Offer, accept the ROFR Offer by notice in writing delivered to the Vendor, in which event it shall then become a binding agreement of purchase and sale between Purchaser and the Vendor at the price and upon the terms and conditions contained in the ROFR Offer and Purchaser acceptance notice; provided that if so elected by Purchaser in its acceptance notice and without affecting the binding nature of the agreement between the Vendor and Purchaser, Purchaser may require that the terms and conditions contained in the ROFR Offer be amended to require that mineral sales and deliveries be sold and delivered to Purchaser pursuant to a transaction structure substantially similar to the transaction structure contemplated by this Agreement and any non-cash consideration personal to the third party may be substituted by Purchaser as provided in Section 6.13(1) in each case rather than as contemplated in the ROFR Offer; provided further that such amendment does not adversely change the economic substance of the amended ROFR Offer as compared to the Third Party Offer; and

(3) If Purchaser does not accept the ROFR Offer, then the Vendor shall be free to sell all (but not less than all) of such ROFR Interest to the applicable third party pursuant to the Third Party Offer. If the Vendor and the third party have not entered into a binding, written agreement pertaining to all (but not less than all) of such ROFR Interest (the "**Third Party Agreement**") within 15 days of the expiry of the 30 day period set forth in Section 6.13(2) then Seller and the Vendor shall again be required to comply with the terms of this Agreement with respect to that Third Party Offer before selling the ROFR Interest that is the subject to the Third Party Offer to a third party. Seller shall provide Purchaser with a copy of the Third Party Agreement promptly once it is executed and delivered, and shall execute and deliver to Purchaser at the completion of the transactions contemplated by the Third Party Agreement a certificate of a director or senior officer of Seller certifying that the sale of the ROFR Interest to the third party was completed pursuant to the terms of the Third Party Offer.

(4) For greater certainty, the provisions of this Section 6.13:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) are also intended to apply to any offer made by a Vendor to any third party to sell a ROFR Interest, with such changes as are necessary to make this Section 6.13 applicable thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) will survive any transaction undertaken by any Seller Group Entity, including a Change of Control permitted by Section 6.6(2), and continue to apply to any Third Party Offer for a ROFR Interest received by any Seller Group Entity regardless of whether Parent continues to be the ultimate parent company of Seller and/or the Project Owners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) are not intended to restrict a change in the registered or beneficial ownership of voting securities of a Seller Group Entity, or acquisition of control of such Seller Group Entity, if the voting shares of such Seller Group Entity were listed on a public securities exchange immediately prior to the completion of such transaction.

(5) Section 6.13 is conditional on Completion occurring and the Deposit being paid to Seller in accordance with this Agreement and is of no effect until Completion has occurred and the Deposit has been paid.

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**Section 6.14 Code of Conduct**

(1) The Seller PSA Entities shall, and shall cause the Project Owners to, abide by the terms of the

Parent's Code of Business Conduct and Ethics, its Anti-Bribery and Anti-Corruption Policy, in each case, approved by its board of directors on July 30, 2024 and its Human Rights Policy approved by its board of directors on November 5, 2022, as amended from time to time (collectively such codes and policies, the "**Code of Conduct**"). The Seller PSA Entities shall take, and cause the Project Owners to take, all commercially reasonable steps to obtain compliance by its employees, consultants and agents with the Code of Conduct.

**Section 6.15 Anti-Corruption and Anti-Terrorism Laws**

The Seller PSA Entities shall, and shall cause each Seller Group Entity to (i) comply with Anti-Terrorism Laws and Anti-Corruption Laws, (ii) refrain from dealing in, or otherwise engaging in any transaction related to, any property or interests in property obtained in contravention or blocked pursuant to any Anti-Terrorism Laws or Anti-Corruption Laws, or engaging in or conspiring to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Laws or Anti-Corruption Laws, and (iii) take all measures appropriate in the circumstances (in any event as required by Applicable Law) to provide reasonable assurance that each Seller Group Entity is and will continue to be in compliance with Anti-Terrorism Laws and Anti-Corruption Laws.

**Section 6.16 Sanctions**

(1) Each Seller PSA Entity shall not, and shall cause each Seller Group Entity to not, engage in, or be a party to, any transaction or activity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with a Sanctioned Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with a Person who is owned or controlled, either directly or indirectly, by, or is otherwise acting on behalf of, a Sanctioned Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that is for the benefit of a Sanctioned Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that would amount to a breach of any applicable Sanctions.

(2) Neither any Seller PSA Entity nor any of its shareholders, Affiliates, directors, officers, employees, agents or representatives, will directly or indirectly, use the proceeds of the Deposit or any Copper Cash Price payable hereunder, or lend, contribute, or otherwise make available such proceeds to any Affiliate, joint venture partner, or other Sanctioned Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to fund any activities or business of or with a Sanctioned Person or for the benefit of a Sanctioned Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any manner that would be prohibited by applicable Sanctions or would otherwise cause Purchaser to be in breach of any applicable Sanctions.

(3) Each Seller PSA Entity undertakes that it will not fund any of its operations or deliveries of Refined Copper hereunder with proceeds derived from any transaction that would be prohibited by applicable Sanctions or would otherwise cause Purchaser to be in breach of any applicable Sanctions.

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**Section 6.17 Taxation**

(1) Each Seller PSA Entity shall pay and discharge, and shall cause the Project Owners to pay and discharge, all Taxes imposed upon it or its assets within the time period allowed without incurring any interest or penalties unless and only to the extent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such payment is being contested in good faith by appropriate legal proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to Purchaser under Section 5.1(5); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) failure to pay those Taxes does not have or is not reasonably likely to have an Adverse Impact.

(2) The Seller shall not change its residence for Tax purposes without the consent of Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed.

**ARTICLE 7**

**SECURITY**

**Section 7.1 Security**

(1) As soon as reasonably practicable, and in any event within five (5) Business Days following the Closing Date, Seller shall grant to Purchaser the Seller Share Pledge, in form and substance satisfactory to Purchaser, acting reasonably, and shall have recorded the Seller Share Pledge in the shares ledger of the Mine Owner and filed the Seller Share Pledge for registration to perfect the Security created under the Seller Share Pledge. The Purchaser shall have received evidence satisfactory to it of each such filing for registration and satisfactory evidence of the payment of any necessary fee, tax or expense relating thereto.

(2) In addition to the foregoing, Seller shall execute and deliver or cause to be executed and delivered all such other agreements, instruments and documents, and take all such further acts and things, as Purchaser may from time to time reasonably require to obtain, perfect, maintain and preserve first ranking prior perfected charges and security interests (subject to prior ranking Permitted Encumbrances) in, to and over all of the Collateral, as security for the payment and performance, when due, of all Stream Obligations.

(3) The Seller PSA Entities shall not, and shall cause each other Seller Group Entity to not, contest in any manner the effectiveness, validity, binding nature or enforceability of this Agreement or any of the Stream Security Documents.

**Section 7.2 Stream Properties**

In the event of any material acquisition, extension, renewal, replacement, conversion or substitution of any of the Stream Properties (or any part thereof), then the Seller PSA Entities shall immediately notify Purchaser of such event.

**ARTICLE 8**

**REPRESENTATIONS AND WARRANTIES**

**Section 8.1 Representations and Warranties of the Seller PSA Entities**

The Seller PSA Entities, acknowledging that Purchaser is entering into this Agreement in reliance thereon, hereby jointly and severally make:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as of the date of execution of this Agreement and as of the Closing Date, the representations and warranties to Purchaser set forth in Part 1 of Schedule B; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as at the Closing Date, except as disclosed in the Disclosure Letter, the representations and warranties to Purchaser set forth in Part 2 of Schedule B.

Such representations and warranties made pursuant to Section 8.1(a) shall be deemed to be repeated (on the date of the relevant certificate) to the extent that they are certified to be true and correct in a certificate delivered by any Seller PSA Entity pursuant to Section 3.2(1) and Schedule F.

**Section 8.2 Representations and Warranties of Purchaser**

Purchaser, acknowledging that the Seller PSA Entities are entering into this Agreement in reliance thereon, hereby makes, as of the date of execution of this Agreement and as at the Closing Date, the representations and warranties to the Seller PSA Entities set forth in Schedule C. The representations and warranties made pursuant to this Section 8.2 shall be deemed to be repeated (on the date of the relevant certificate) to the extent that they are certified to be true and correct in a certificate delivered by Purchaser pursuant to Section 3.2(1) and Schedule F.

**Section 8.3 Survival of Representations and Warranties**

The representations and warranties set forth above shall survive the execution and delivery of this Agreement.

**Section 8.4 Knowledge**

Where any representation or warranty contained in this Agreement is expressly qualified by reference to the "knowledge" of the Seller PSA Entities, it shall be deemed to refer to the actual knowledge of any director, senior manager or officer of the Seller PSA Entities, and all knowledge which such persons would have if such Person made due enquiry into the relevant subject matter having regard to the role and responsibilities of such Person as an officer or director of the Seller PSA Entities, as applicable. Notwithstanding the foregoing, Purchaser acknowledges that to the extent such knowledge relates to the Project and the Project Owners, the knowledge of the Seller PSA Entities on the date hereof and as of the Closing Date, shall be deemed to refer to the knowledge that a Person would acquire based on the conduct and review of legal, technical and financial due diligence on the Project and the Project Owners customary in scope for a transaction similar to the Acquisition Transaction.

**ARTICLE 9**

**DEFAULTS AND DISPUTES**

**Section 9.1 Events of Default**

Each of the following events or circumstances constitutes an event of default (each, an "**Event of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller fails to sell and deliver Refined Copper to Purchaser or pay any other amount owing hereunder to Purchaser on the terms and conditions set forth in this Agreement within ten Business Days of receipt of notice from Purchaser notifying Seller of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Seller PSA Entity is in breach or default of any of its covenants or obligations set forth in any Stream Document in any material respect (other than a breach or default of the covenants and obligations referenced in Section 9.1(a)), and such breach or default is not remedied within 30 days following delivery by Purchaser to Seller of written notice of such breach or default;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Security created or expressed to be created or evidenced by the Stream Security Documents ceases to be effective or to constitute an Encumbrance having the priority stipulated herein over the Collateral (subject to any Permitted Encumbrances) and any such default has not been remedied within 30 days following delivery by Purchaser to Seller of written notice of such event or default, provided that: (A) such default is capable of being cured; and (B) Purchaser shall not suffer any material prejudice as a result of the delay; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the occurrence of an Insolvency Event.

**Section 9.2 Remedies**

(1) If an Event of Default occurs and is continuing, Purchaser shall have the right, upon written notice to Seller, at its option and in addition to and not in substitution for any other remedies available at law or equity, to take any or all of the following actions in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) demand all amounts and deliveries owing by any of the Seller PSA Entities to Purchaser, including pursuant to Section 9.3, and set off any such amount in accordance with Section 10.5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) bring an action for provisional remedies or institute arbitration proceedings for damages or specific performance, in each case, in accordance with Section 9.5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) terminate this Agreement by written notice to the Seller PSA Entities and, without limiting Section 9.2(1)(a) and Section 9.2(1)(b), demand all Losses suffered or incurred as a result of the occurrence of such Event of Default and termination, including damages based on Purchaser's loss of the benefits of this Agreement calculated as the greater of (i) the IRR Amount, and (ii) Losses determined in accordance with Section 9.3(4), and all such deliveries and amounts shall become immediately due and payable upon demand; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) enforce the Security.

(2) The Parties hereby acknowledge and agree that: (i) Purchaser will be damaged by an Event of Default; (ii) it would be impracticable or extremely difficult to fix the actual damages resulting from an Event of Default; (iii) any sums payable in accordance with Section 9.2(1)(c) (including any sums based on the Stream NPV) with respect to an Event of Default are in the nature of liquidated damages, not a penalty, and are fair and reasonable; and (iv) the amount payable in accordance with Section 9.2(1)(c) or with respect to an Event of Default represents a reasonable estimate of fair compensation for the Losses that may reasonably be anticipated from such Event of Default in full and final satisfaction of all amounts owed in respect of such Event of Default.

**Section 9.3 Indemnity**

(1) Each of the Parties agrees to indemnify and save harmless the other Parties and their respective Affiliates and directors, officers, employees and agents from and against any and all Losses suffered or incurred by any of the foregoing Persons in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or default or breach of any representation or warranty of such Party contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-performance by such Party of any covenant or obligation to be performed by it pursuant to this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of indemnification by any of the Seller PSA Entities, an Event of Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) pursuing any remedies to which a Party is entitled hereunder.

(2) This Section 9.3 is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a continuing obligation, separate and independent from the Parties' other obligations and survives the termination of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) absolute and unconditional and unaffected by anything that might have the effect of prejudicing, releasing, discharging or affecting in any other way the liability of the Party giving the indemnity.

(3) It is not necessary for a Party to incur expense or make payment before enforcing a right of indemnity under this Agreement.

(4) In determining the Losses suffered or incurred by Purchaser in connection with or relating to any future period (including in connection with any claim in a proceeding in connection with an Insolvency Event where this Agreement is disclaimed, or in connection with the termination of this Agreement other than in accordance with Section 3.6 and Section 4.1), such Losses shall include the net present value of the Refined Copper that would have reasonably been expected to have become due to be delivered by Seller to Purchaser hereunder and all other amounts that would have reasonably been expected to have become payable to Purchaser hereunder (including any amounts payable pursuant to Section 4.2), but for the event giving rise to the need to determine such Losses, less the payments that would have reasonably been expected to have become payable to Seller by Purchaser with respect to such Refined Copper, all determined in accordance with Schedule E (the "**Stream NPV**"). The Stream NPV shall be based on the principles, assumptions and procedures set forth on Schedule E.

**Section 9.4 Disputed Reports**

(1) Any invoice or report provided pursuant to Section 5.1 and all deliveries of Refined Copper under this Agreement shall be deemed final and conclusive for all purposes with no adjustments, revisions or obligation to deliver any additional Refined Copper or return any delivered Refined Copper, or make or return any additional payment in respect of delivered Refined Copper, unless either Party notifies the other in writing (a "**Dispute Notice**") that it disputes an invoice, report or quantity of Refined Copper previously delivered within three years from the date of delivery of such invoice, report or quantity of Refined Copper.

(2) Purchaser and Seller shall have 60 days from the date the Dispute Notice is delivered to resolve the dispute. If Purchaser and Seller have not resolved the dispute within such period, then Purchaser shall have the right to require Seller to deliver an Auditor's Report with respect to the subject matter of the dispute. Each of the parties agrees to deliver such Books and Records as may be reasonably requested by the Person completing the Auditor's Report.

(3) The costs of the Auditor's Report shall be paid by Purchaser, unless the Auditor's Report concludes that the Reference Copper for the period covered by the Dispute Notice is greater than the number of tonnes of Refined Copper actually delivered in respect of such period, in which event the cost of the Auditor's Report shall be for the account of Seller.

**Section 9.5 Disputes**

(1) If a Dispute arises between the Parties (and for this purpose any of the Seller Group Entities involved in the Dispute shall be deemed to be one Party, and Purchaser the other Party), including with respect to an Auditor's Report but excluding any Dispute required hereunder to be resolved by a determination of an Independent Expert (which shall be resolved in accordance with the process described in Section 9.5(2)), the Parties shall promptly and in good faith attempt to resolve such Dispute through negotiations conducted in the following manner:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the disputing Party shall give written notice to the other Parties to the Dispute, which notice shall include a statement of the disputing Party's position and a summary of the arguments supporting its position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 20 days after receipt of such notice, each receiving Party shall submit a written response to the disputing Party which shall also include a statement of the receiving

Party's position and a summary of the arguments supporting its position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Chief Executive Officer or President of each of the Parties to the Dispute shall meet at a mutually acceptable time and place, but in any event within 30 days after issuance of the disputing Party's written notice to attempt to resolve the Dispute; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Dispute has not been resolved within ten days after such meeting, it shall be settled by binding arbitration administered by the Vancouver International Arbitration Centre, and any Party may so refer such dispute, controversy or claim to binding arbitration. Such referral to binding arbitration shall be to one qualified arbitrator in accordance with the Arbitration Rules, which Arbitration Rules shall govern such arbitration proceeding except to the extent modified by the rules for arbitration set out in Schedule I. Judgment on the award may be entered in any court having jurisdiction. The Parties covenant and agree that they shall conduct all aspects of such arbitration having regard at all times to expediting the final resolution of such arbitration. This Section 9.5 shall not preclude the Parties from seeking provisional remedies in aid of arbitration from a court of competent jurisdiction for which purpose each Party irrevocably and unconditionally (i) submits to the non-exclusive jurisdiction of the courts of the Province of British Columbia, (ii) waives any objection that it might otherwise be entitled to assert to the jurisdiction of such courts; and (iii) agrees not to assert that such courts are not a convenient forum for the determination of any such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The provisions of this Agreement providing for the resolution of Disputes shall not operate to prevent recourse to any court by Purchaser or Seller with respect to injunctions, receiving orders and orders regarding the detention, preservation and inspection of property, including the Stream Properties or any part(s) thereof, or whenever enforcement of an arbitration award reasonably requires access to any remedy which an arbitrator has no power to award or enforce. Each Party expressly attorns to such proceedings and waives any objections on the basis of jurisdiction, including forum non conveniens.

(2) All disputes under this Agreement required to be resolved by a determination of the Independent Expert shall be conducted as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Parties will cooperate with the Independent Expert and promptly provide it with such information and documentation as requested by it for the purpose of its determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Independent Expert may establish rules and procedures for the conduct of the determination process, including holding meetings with or requiring written submissions of the Parties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Independent Expert will be required to render its determination (which must be in writing) within 60 days after it has received all relevant information and input from the Parties, and include in its determination an explanation of all methodologies used in making its determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the costs of the Independent Expert in making its determination will be shared equally by the Seller PSA Entities on the one hand, and Purchaser on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the final determination by the Independent Expert with respect to the matter before it will be final and binding on the Parties and will not be subject to appeal on any basis, including on a question of law or mixed fact and law, and in acting the Independent Expert will be acting as an expert and not as an arbitrator; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Independent Expert may engage any independent third-party assistance or advice as it may determine, in its discretion, necessary or advisable to resolve the dispute

**Section 9.6 Insolvency Event**

The Parties acknowledge and agree that, if, as a result of any Insolvency Event affecting any Seller PSA Entity, a Governmental Authority of competent jurisdiction permits such Seller PSA Entity to repudiate its obligations under this Agreement, such repudiation will not affect the obligations of the other Seller Group Entities, and this Agreement will remain in full force with respect to the other Seller Group Entities.

**ARTICLE 10**

**ADDITIONAL PAYMENT TERMS**

**Section 10.1 Payments**

All cash payments due by one Party to another under this Agreement shall be made in U.S. dollars and shall be made by wire transfer in immediately available funds to the bank account or accounts designated by the other Party in writing from time to time.

**Section 10.2 Taxes**

(1) All deliveries of Refined Copper and all amounts paid or retained under the Stream Documents by the Seller PSA Entities to Purchaser shall be made in full without set-off or counterclaim, and free of and without any deduction, withholding, charge or levy for or on account of any Taxes, all of which shall be for the account of and the sole responsibility of the Seller PSA Entities. If any such Taxes are so required by Applicable Law to be deducted, withheld, charged or levied by the Seller PSA Entity making such delivery or payment, then (i) Seller shall make, in addition to such delivery or payment, such additional delivery or payment as is necessary ("**Additional Amounts**") to ensure that the net amount received by Purchaser (free and clear and net of any such Taxes, including any Taxes required to be deducted, withheld, charged or levied on any such additional amount) equals the full amount Purchaser would have received had no such deduction, withholding, charge or levy been required and (ii) the Seller PSA Entities shall pay the full amount deducted to the relevant taxation or other authority in accordance with Applicable Law and shall provide reasonable documentation of such deduction, withholding, charge or levy and payment to Purchaser; provided, however, that no such Additional Amount shall be made in respect of Taxes to the extent such Taxes are Excluded Taxes and no such Additional Amount shall reduce the Uncredited Deposit.

(2) If Purchaser becomes liable for any Tax, other than Excluded Taxes, imposed on any deliveries or payments under this Agreement, the Seller PSA Entities shall jointly and severally agree to indemnify Purchaser for such Tax, and the indemnity payment shall be increased as necessary so that after the imposition of any Tax on the indemnity payment (including Tax in respect of any such increase in the indemnity payment), Purchaser shall receive the full amount of Taxes for which it is liable, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Seller by Purchaser shall be conclusive absent manifest error.

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(3) If Purchaser is entitled to an exemption from or reduction of Taxes under the law of the jurisdiction in which Seller is resident for tax purposes, any treaty to which such jurisdiction is a party, or otherwise, with respect to any payments or deliveries made under this Agreement for which Seller is directly or indirectly liable pursuant to Section 10.2(1) or Section 10.2(2), Purchaser shall, at the request of Seller, deliver to Seller, at the time or times reasonably requested by Seller, such properly completed and executed documentation prescribed by Applicable Law (if any) as will permit such payments or deliveries to be made without withholding or at a reduced rate of withholding Taxes. In addition, Purchaser, if requested by Seller, shall deliver such other documentation prescribed by Applicable Law (if any) or reasonably requested by Seller as will enable Seller to determine whether or not Purchaser is subject to withholding or information reporting requirements. Notwithstanding the foregoing, Purchaser shall not be required to deliver any documentation pursuant to this Section that Purchaser is not legally able to deliver.

(4) If Purchaser determines, in its sole discretion, acting reasonably, that it has received a refund of any Taxes as to which it has received additional deliveries pursuant to Section 10.2(1) or additional payments pursuant to Section 10.2(2), it shall pay to Seller an amount equal to such refund (but only to the extent of additional deliveries made, or additional amounts paid, by Seller under this Section 10.2 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses of Purchaser, as the case may be, and without interest (other than any net after-Tax interest paid by the relevant Governmental Authority with respect to such refund). Seller, upon the request of Purchaser, agrees to repay to Purchaser the amount paid by or to Seller (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) if Purchaser is required to repay such refund to such Governmental Authority. This Section 10.2(4) shall not be construed to require Purchaser to make available its Tax Returns (or any other information relating to its Taxes that it deems confidential) to Seller or any other Person, to arrange its affairs in any particular manner or to claim any available refund or reduction.

**Section 10.3 New Tax Laws**

In the event that any new Tax is implemented or there shall occur any revision in, implementation of, amendment to or interpretation of any existing Tax, in each case that has an adverse effect on any of the Parties or any of their Affiliates in respect of the transactions contemplated by this Agreement, then the Seller PSA Entities on the one hand, and Purchaser on the other hand, agree that they shall negotiate in good faith with each other to amend this Agreement so that the other Parties and their Affiliates either are no longer adversely affected by any such enactment, revision, implementation, amendment or interpretation, as the case may be; provided that any amendment to this Agreement shall not have any adverse impact on Seller and its Affiliates on the one hand, or Purchaser and its Affiliates on the other hand.

**Section 10.4 Interest**

(1) The dollar value of any overdue deliveries from time to time outstanding (such value, for the purposes of calculating interest, to be determined based on the Copper Market Price on the day such deliveries were due hereunder) shall bear interest at rate equal to the Base Interest Rate plus 2% per annum taking into account the actual number of days occurring during the period commencing as of the date such deliveries first became past due and ending on the date such deliveries are made and accrued interest is paid in full.

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(2) Without duplicating interest payable in accordance with Section 10.4(1), any dollar amount not paid when due shall bear interest at rate equal to the Base Interest Rate plus 2% per annum taking into account the actual number of days occurring during the period commencing as of the date such amount first became past due (which shall be deemed to be the date of termination of this Agreement in the event an amount is owed as a result of Section 9.2(1)(c) and the date any Loss is first suffered or incurred in the event an amount is owed as a result of Section 9.3(1)) and ending on the date such payment and accrued interest are paid in full.

(3) Interest owing under Section 10.4(1) and Section 10.4(2) shall be immediately payable on demand and be calculated on the basis of a year of 360 days. If unpaid, interest owing under Section 10.4(1) and Section 10.4(2) will be compounded with the overdue amount at the end of each month but will remain immediately due and payable on demand. The rate of interest payable on such late deliveries or payments will be determined on the date of the default and, to the extent any such amounts remain overdue, each 3 month period thereafter.

(4) For purposes of the Interest Act (Canada), whenever any interest is calculated using a rate based on a year of 360 days or 365 days (or such other period that is less than a calendar year), as the case may be, such rate determined pursuant to such calculation, when expressed as an annual rate is equivalent to (i) the applicable rate based on a year of 360 days or 365 days (or such other period that is less than a calendar year), as the case may be, (ii) multiplied by the actual number of days in the calendar year in which the period for such interest is payable (or compounded) ends, and (iii) divided by 360 or 365 (or such other period that is less than a calendar year), as the case may be.

**Section 10.5 Set Off**

Except as set out in Section 2.2, any Refined Copper or dollar amount not delivered or paid, as the case may be, when due by a Party may be set off by the other Party against any dollar amount or Refined Copper owed to such Party by the other Party. Any amount of Refined Copper set off and withheld by Seller against any non-payment by Purchaser, including any failure to pay for Refined Copper when due in accordance with Section 2.5(2), shall be valued at the Copper Market Price as of the date that such amount of Refined Copper first became payable to Purchaser. Any dollar amount set off and withheld against any Refined Copper shall result in a reduction in an amount of Refined Copper otherwise to be delivered by that number of tonnes equal to the dollar amount set-off divided by the Copper Market Price as of the day such dollar amount first became payable.

**Section 10.6 Judgment Currency.**

If, for the purpose of obtaining or enforcing judgment against any party in any court in any jurisdiction, it becomes necessary to convert into a particular currency (the "**Judgment Currency**") an amount due in another currency (the "**Indebtedness Currency**") under this Agreement, that conversion will be made at the rate of exchange, which shall be that at which, in accordance with its normal banking procedures, the non-defaulting party could purchase the Indebtedness Currency with the Judgment Currency on the Business Day immediately preceding the date on which judgment is given (or if received on a day other than a Business Day, on the next succeeding Business Day), or, if permitted by law, on the day on which the judgment is paid or satisfied (the "**Rate of Exchange**"). If, as a result of a change in the Rate of Exchange between the date of judgment and the date of actual payment, the conversion of the Judgment Currency into Indebtedness Currency results in the non-defaulting party receiving less than the full amount of Indebtedness Currency payable to the non-defaulting party, the defaulting party agrees to pay the non-defaulting party an additional amount (and in any event not a lesser amount) as may be necessary to ensure that the amount received is not less than the full amount of Indebtedness Currency payable by the defaulting party on the date of judgment. Any additional amount due under this Section 10.6 will be due as a separate debt, gives rise to a separate cause of action, and will not be affected by judgment obtained for any other sums due under this Agreement.

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**ARTICLE 11**

**GENERAL**

**Section 11.1 Further Assurances**

Each Party shall execute all such further instruments and documents and do all such further actions as may be necessary to effectuate the documents and transactions contemplated in this Agreement, in each case at the cost and expense of the Party requesting such further instrument, document or action, unless expressly indicated otherwise.

**Section 11.2 No Joint Venture**

Nothing herein shall be construed to create, expressly or by implication, a joint venture, mining partnership, commercial partnership, agency relationship, fiduciary relationship, or other partnership relationship between Purchaser and the Seller PSA Entities.

**Section 11.3 Governing Law**

(1) This Agreement shall be governed by, and construed in accordance with, the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

(2) The United Nations Vienna Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

**Section 11.4 Costs and Expenses**

Except as otherwise provided for in this Agreement, all costs and expenses incurred by a Party in connection with this Agreement and the other Stream Documents and the transactions contemplated thereunder (including, for greater certainty, the fees and expenses of such Party's counsel in connection with the negotiation and completion of the arrangements contemplated by this Agreement) shall be for its own account.

**Section 11.5 Survival**

Without limiting any other provision of this Agreement, the following provisions shall survive termination of this Agreement: Section 4.2 (*Uncredited Deposit*), Section 5.2 (*Books and Records*), Section 5.6 (*Confidentiality*), Section 6.6(3) (*Transfers),* Section 7.1(3) (*Guarantees and Security*), Section 9.2 (*Remedies),* Section 9.3 (*Indemnity*), Section 9.4 (*Disputed Reports*), Section 9.5 (*Disputes*), Section 9.6 (*Insolvency Event*), Section 10.1 (*Payments*), Section 10.2 (*Taxe*s), Section 10.4 (I*nterest*), Section 10.5 (*Set Off*), Section 10.6 (*Judgment Currency*), Section 11.4 (*Costs and Expenses*) and such other provisions of this Agreement as are required to give effect thereto.

**Section 11.6 Notices**

(1) Any notice or other communication (in each case, a "**notice**") required or permitted to be given hereunder shall be in writing and shall be delivered by hand, prepaid courier or transmitted by electronic mail transmission (if available) addressed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Seller, to:

Endeavour Silver Corp.

1130-609 Granville St. <br>Vancouver, BC V7Y 1G5

Attention: Corporate Secretary

*Email: [Redacted - Personal Information]*

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- 48 - <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to Parent, to:

Endeavour Silver Corp.

1130-609 Granville St. <br>Vancouver, BC V7Y 1G5

Attention: Corporate Secretary

*Email: [Redacted - Personal Information]*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If to Purchaser, to:

Versamet Royalties Corporation <br>Suite 3200, 733 Seymour St., <br>Vancouver, British Columbia, V6B 0S6

Attention: Daniel O'Flaherty

*Email: [Redacted - Personal Information]*

(2) Any notice will be deemed to have been given and received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if delivered by hand or courier in accordance with Section 11.6(1), then on the day of delivery to the recipient Party if such date is a Business Day and such delivery is received before 4:00 pm at the place of delivery otherwise such notice will be deemed to have been given and received on the first Business Day following the date of delivery; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if sent by email transmission in accordance with Section 11.6(1) and successfully transmitted prior to 4:00 pm on a Business Day (recipient Party time), then on that Business Day, and if successfully transmitted after 4:00 pm or if transmitted on a day that is not a Business Day then such notice will be deemed to be given and received on the first Business Day immediately following the date of transmission.

Either Party may change its email or physical address for delivery of notices from time to time by notice given in accordance with the foregoing and any subsequent notice shall be sent to the Party at its changed address.

**Section 11.7 Press Releases**

The Parties shall jointly plan and co-ordinate, and shall cause their respective Affiliates to jointly plan and co-ordinate, any public notices, press releases, and any other publicity concerning this Agreement and the transactions contemplated by this Agreement unless a Party (or its Affiliate) is required to make such disclosure pursuant to Applicable Law in circumstances where prior consultation with the other Party is not practicable. To the extent reasonably practicable, a copy of such disclosure shall be provided to the other Party at such time as it is made publicly available.

**Section 11.8 Amendments**

This Agreement may not be changed, amended or modified in any manner, except pursuant to an instrument in writing signed on behalf of each of Seller and Purchaser, and the other Seller PSA Entities shall be deemed to have consented to any change, amendment or modification to any provision of this Agreement so agreed to by Seller and Purchaser.

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**Section 11.9 Beneficiaries**

This Agreement is for the sole benefit of the Parties and their successors and permitted assigns and, except as expressly contemplated herein, nothing herein is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature or kind whatsoever under or by reason of this Agreement.

**Section 11.10 Entire Agreement**

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and cancels and supersedes any prior understandings and agreements between the Parties with respect thereto.

**Section 11.11 Waivers**

Any waiver of, or consent to depart from, the requirements of any provision of this Agreement shall be effective only if it is in writing and signed by the Party giving it, and only in the specific instance and for the specific purpose for which it has been given. No failure on the part of any Party to exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver of such right. No single or partial exercise of any such right shall preclude any other or further exercise of such right or the exercise of any other right.

**Section 11.12 Assignment**

This Agreement shall enure to the benefit of and shall be binding on and enforceable by the Parties and their respective successors and permitted assigns. Except as otherwise provided herein, neither Party shall be entitled at any time and from time to time to Transfer all or any part of this Agreement without the prior written consent of the other Parties, acting reasonably. Purchaser shall be entitled (i) to Transfer all or any part of this Agreement without the prior written consent of the other Parties if an Event of Default occurs and is continuing and (ii) at any time and from time to time to grant or allow to exist an Encumbrance in respect of this Agreement in favour of its lenders. Notwithstanding the foregoing, this Agreement may not be transferred in whole or in part to a Sanctioned Person.

**Section 11.13 Invalidity and Unenforceability**

If a provision of this Agreement is wholly or partially invalid or unenforceable in a jurisdiction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is to be read down or severed in that jurisdiction to the extent of the invalidity or unenforceability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that fact does not affect the validity or enforceability of that provision in another jurisdiction or the remaining provisions.

It is hereby declared to be the intention of the Parties that this Agreement would have been executed without reference to any portion which may, for any reason, hereafter be declared or held invalid.

**Section 11.14 Counterparts**

This Agreement may be executed in one or more counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. delivery of an executed counterpart of a signature page to this Agreement by electronic means shall be as effective as delivery of a manually executed counterpart of this Agreement.

***[The remainder of this page was intentionally left blank]***

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**IN WITNESS WHEREOF** the Parties have executed this Agreement as of the day and year first written above.

**VERSAMET ROYALTIES CORPORATION**

Per: <u>(signed) "*Craig Rollins*"</u> <br> Name: Craig Rollins<br> Title: General Counsel and Corporate Secretary

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**ENDEAVOUR SILVER CORP.**

Per: <u>(signed) "*Dan Dickson*"</u> <br> Name: Dan Dickson<br> Title: Chief Executive Officer

**KOLPA CANADA LTD.**

Per: <u>(signed) "*Dan Dickson*"</u> <br> Name: Dan Dickson<br> Title: President

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**SCHEDULE A**

*[Redacted - Commercially Sensitive Information - Concessions]*

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**SCHEDULE B**

**REPRESENTATIONS AND WARRANTIES OF SELLER PSA ENTITIES**

***Part 1- Seller PSA Entities***

***Corporate Organization and Authority***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Seller PSA Entities is a company duly incorporated and validly existing under the laws of its jurisdiction of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Seller PSA Entities has the power and capacity to own its assets and carry on its business as it is being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Seller PSA Entity has made all material filings or registrations required by Applicable Laws to maintain its corporate existence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of the Seller PSA Entities has the power to enter into, perform and deliver, and has taken all necessary action to authorize its entry into, performance and delivery of, the Stream Documents to which it is a party and the transactions contemplated by the Stream Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery by each Seller PSA Entity of each Stream Document to which it is a party and the exercise of each Seller PSA Entity's rights, as applicable, and the performance of each Seller PSA Entity's obligations thereunder, as applicable, including the granting of Encumbrances pursuant to the Stream Security Documents and other applicable Stream Documents, do not and will not conflict with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Applicable Laws applicable to such Seller PSA Entity, as applicable, except where such conflict would not be material to the Seller PSA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the constitutional documents of each Seller PSA Entity, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any material Authorization held by any Seller PSA Entity, other than any such conflict which, individually or in the aggregate, would not be material to any Seller PSA Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material agreement or instrument binding upon each Seller PSA Entity or any of their assets or constitute a default or termination event under any such material agreement or instrument, other than any such conflict which, individually or in the aggregate, would not be material to any Seller PSA Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Authorizations required or desirable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to enable each Seller PSA Entity to lawfully enter into, exercise its rights and comply with its obligations in the Stream Documents to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to make the Stream Documents to which any Seller PSA Entity is a party, such

Seller PSA Entity's, as applicable, legal, valid, binding and enforceable obligations, admissible in evidence in its jurisdiction of incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to perfect the Security and the other Encumbrances granted pursuant to the other applicable Stream Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for each Seller PSA Entity to carry on their business, have been obtained or effected and are in full force and effect other than any Authorization which will be obtained or effected in satisfaction of the conditions precedent of Schedule F.

B - 1

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The choice of law referred to in each Stream Document to which a Seller PSA Entity is a party as the governing law of such Stream Document will be recognized and enforced in the applicable Seller PSA Entity's or the Project Owner's jurisdiction of incorporation. Any judgement obtained against any Seller PSA Entity in the Province of British Columbia in relation to a Stream Document will be recognized and enforced in its jurisdiction of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) None of the Seller PSA Entities has suffered an Insolvency Event or is aware of any circumstance which, with notice or the passage of time, or both, would give rise to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Seller PSA Entity has entered into and will perform the Stream Documents on its own account and not as trustee or a nominee of any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) No Seller PSA Entity is engaged in any joint purchasing arrangement, joint venture, partnership or other joint enterprise with any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Under the law of each Seller PSA Entity's jurisdiction of incorporation, it is not necessary that any stamp, registration or similar Tax be paid on or in relation to the Stream Documents or the transactions contemplated by the Stream Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) As of the Closing Date, no Seller PSA Entity has engaged in any transaction or engaged in any business other than the Acquisition Transaction, this Agreement and matters immediately preparatory thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Subject to the Legal Reservations and Perfection Requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the obligations expressed to be assumed by a Seller PSA Entity in each Stream Document to which it is a party are legal, valid, binding and enforceable obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without limiting the generality of paragraph (a) above, each Stream Security Document to which a Seller PSA Entity is a party creates the security interest which that Stream Security Document purports to create and that security interest is valid and effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) No Event of Default is continuing or might reasonably be expected to result from the making of the Deposit or the entry into, the performance of, or any transaction contemplated by, any Stream Document. No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on any Seller PSA Entity or to which any of their assets are subject which might have an Adverse Impact.

***Subsidiaries and Affiliates***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Following Completion the Project Owner will be a direct wholly owned Subsidiary of Seller.

B - 2

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***Material Information***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Seller PSA Entities have made available to Purchaser all material information in the control or possession of any Seller PSA Entity relating to the Mine, including, but not limited to, the Project Assets and the mineralization or potential mineralization of the Stream Properties (collectively, the "**Mine Data**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) All such Mine Data, to the knowledge of the Seller PSA Entities, did not contain any information that is misleading or untrue, or omit to include any information necessary to make any information contained in such Mine Data not misleading or untrue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Original Financial Statements of the Parent were prepared, in accordance with IFRS consistently applied and give a true and fair view and fairly represent its financial condition as at the end of the relevant financial year and operations during the relevant financial year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) There has been no material adverse change in the business or consolidated financial condition of the Seller Group Entities since the date of the Original Financial Statements.

***No Immunity***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) None of the Seller PSA Entity nor any of their assets has immunity from the jurisdiction of a court or from legal process.

***Anti-Corruption and Anti-Terrorism Laws, Child and Forced Labor and Sanctions***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) To the knowledge of any Seller PSA Entity, no Seller PSA Entity, nor any of their directors or officers is aware of or has taken any action in carrying out the business of any Seller PSA Entity that could result in a material violation or breach by such Persons of Anti-Corruption Laws or Anti-Terrorism Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No Seller PSA Entity is or has been the subject of any actual or threatened investigation, inquiry or other legal proceedings regarding any non-compliance or alleged non-compliance with, or has violated, any Applicable Laws related to child labor or forced labor. No Seller PSA Entity has employed, engaged or otherwise used child labor or forced labor or, to the knowledge of any Seller PSA Entity, used goods that were produced in whole or in part using child labor or forced labor. The Parent maintains appropriate policies and procedures that include exercising due diligence to prevent, identify and report the use of any child labor and forced labor and an appropriate complaints procedure to respond to any breaches of such policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) No Seller PSA Entity, nor to the knowledge of any Seller PSA Entity, any of their directors, officers, employees and agents is a Sanctioned Person or deals in property or interests in property, or otherwise engages in any transaction, prohibited by Sanctions. This section shall not be interpreted or applied in relation to any Seller PSA Entity and their respective directors, officers, employees and agents to the extent the representations made under this section violate or would result in a breach of the *Foreign Extraterritorial Measures Act* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) To the knowledge of any Seller PSA Entity, no Seller PSA Entity is in violation of any applicable Sanctions.

B - 3

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***Compliance with Laws and Expropriation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Each Seller PSA Entity has conducted and is conducting its business in compliance with Applicable Laws and applicable Authorizations, except where the failure to comply could not reasonably be expected to have an Adverse Impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Each Seller PSA Entity is in material compliance with all Applicable Laws and collective bargaining agreements respecting employment, wages, hours of work and occupational health and safety and employment practices.

***Litigation and Orders***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) There are no outstanding or pending actions, suits, proceedings or claims affecting, or pertaining to, any Seller PSA Entity that would otherwise have an Adverse Impact.

***Taxes***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Each Seller PSA Entity is not a non-resident of Canada for the purposes of the *Income Tax Act* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) All material Taxes due and payable by the Seller PSA Entities have been timely paid when due (other than those which are being contested in good faith by appropriate legal proceedings and for which adequate reserves are being maintained).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) All Tax Returns required by Applicable Law to be filed by or with respect to each Seller PSA Entity have been properly prepared and timely filed and all such Tax Returns (including information provided therewith or with respect thereto) are true, complete and correct in all material respects, and no material fact or facts have been omitted therefrom which would make any such Tax Returns misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) No audit or other proceeding by any Governmental Authority is pending or, to the knowledge of any Seller PSA Entity, threatened with respect to any Taxes due from or with respect to any Seller PSA Entity, and no Governmental Authority has given written notice of any intention to assert any deficiency or claim for additional Taxes against any Seller PSA Entity. There are no matters under discussion, audit or appeal or in dispute with any Governmental Authority relating to Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) There are no reassessments of Taxes for any Seller PSA Entity that have been issued and are under dispute, and no Seller PSA Entity has received any communication from any Governmental Authority that an assessment or reassessment is proposed in respect of any Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) The Seller PSA Entities have established on their books and records reserves that are adequate for payment of all material Taxes not yet due and payable and there are no liens for Taxes on the assets of the Seller PSA Entities or any of their Affiliates except for Taxes not yet due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) The Seller PSA Entities have withheld or collected any Taxes that are required by Applicable Law to be withheld or collected and have paid or remitted, on a timely basis, the full amount of any Taxes that have been withheld or collected, and are due, to the applicable Governmental Authority.

B - 4

B - 4

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***Disclaimer of Warranties***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It is the explicit intent of the Parties that none of the Seller PSA Entities any other Person is making any representation or warranty whatsoever, express or implied, with respect to the Project, the Project Owners or the Project Owner's other assets, operations, liabilities, condition (financial or otherwise) or prospects (including any implied warranty or representation as to the accuracy or completeness of any information provided or made available to the Purchaser or any of its Affiliates or its or their respective representatives, or as to the value, condition, merchantability or suitability of any of those assets of the Project Owner), beyond those expressly given in this Schedule B.

***Part 2 - Project Owner***

***Corporate Organization and Authority***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Project Owner is a company duly incorporated and validly existing under the laws of its jurisdiction of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Project Owner has the power and capacity to own its assets and carry on its business as it is being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Project Owner has made all material filings or registrations required by Applicable Laws to maintain its corporate existence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution and delivery by each Seller PSA Entity of each Stream Document to which it is a party and the exercise of each Seller PSA Entity's rights, as applicable, and the performance of each Seller PSA Entity's obligations thereunder, as applicable, do not and will not conflict with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Applicable Laws applicable to the Project Owner, except where such conflict would not be material to the Project Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the constitutional documents of the Project Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any material Authorization held by the Project Owner, other than any such conflict which, individually or in the aggregate, would not be material to the Project Owner; and;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material agreement or instrument binding upon the Project Owner or any of their assets or constitute a default or termination event under any such material agreement or instrument, other than any such conflict which, individually or in the aggregate, would not be material to the Project Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Authorizations required or desirable for the Project Owner to carry on their business, have been obtained or effected and are in full force and effect other than any Authorization which will be obtained pursuant to the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Project Owner has not suffered an Insolvency Event nor, to the knowledge of the Seller PSA Entities, is there any circumstance which, with notice or the passage of time, or both, would give rise to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Project Owner is not engaged in any joint purchasing arrangement, joint venture, partnership or other joint enterprise with any Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Under the law of the Project Owner's jurisdiction of incorporation, it is not necessary that any stamp, registration or similar Tax be paid on or in relation to the Stream Documents or the transactions contemplated by the Stream Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on the Project Owner or to which any of their assets are subject which might have an Adverse Impact.

***Material Information***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Seller PSA Entities have made available to Purchaser all material information in the control or possession of any Seller PSA Entity relating to the Mine, including, but not limited to, the Project Assets and the mineralization or potential mineralization of the Stream Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Seller PSA Entities have has made available to Purchaser prior to the date of this Agreement all material information in the control or possession or knowledge of any Seller PSA Entity (including the most current life of mine plans, production and plant statistics, cost estimates, supporting drill hole data bases and block models in respect of each of the Stream Properties) (collectively, the "**Mine Data**") relating to the Stream

Properties and the other Project Assets, including information in respect of: (i) the mineralization or potential mineralization of the Stream Properties; (ii) actual or proposed regulations, policy or other actions of any relevant Governmental Authority; (iii) environmental matters; (iv) water related matters; (v) seismic matters; and (vi) financial related matters. All such Mine Data (i) was prepared in good faith; and (ii) to the knowledge of the Seller PSA Entities, did not contain any information that is misleading or untrue, or omit to include any information necessary to make any information contained in such Mine Data not misleading or untrue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) All factual information (other than projections) provided to Purchaser in connection with this Agreement was true and correct in all material respects as of the date furnished (or as of the date specified therein) and none of the documentation furnished to Purchaser by or on behalf of any Seller PSA Entity omits as of the date furnished (or as of the date specified therein) a material fact necessary to make the statements contained therein not misleading, and all expressions of expectation, intention, belief and opinion contained therein were honestly made on reasonable grounds after due inquiry by each Seller PSA Entity (and any other Person who furnished such material on behalf of any Seller PSA Entity). All projections that have been made available to Purchaser in connection with this Agreement have been prepared in good faith based on reasonable assumptions (it being understood that any projections provided are subject to significant uncertainties and contingencies, many of which are beyond the control of the Seller PSA Entities, that actual results may vary from projected results and those variations may be material).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Seller PSA Entities have disclosed in writing to Purchaser all information known to it which could reasonably be expected to be material to the ability of the Seller Group Entities and the Project Owner to perform their obligations under the Stream Documents or to Purchaser's assessment of the nature and degree of risk undertaken by it in advancing the Deposit to Seller pursuant to the Stream Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) To the knowledge of any Seller PSA Entity, the Original Financial Statements of the Project Owner were prepared, in each case in accordance with IFRS consistently applied and give a true and fair view and fairly represent its financial condition as at the end of the relevant financial year and operations during the relevant financial year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) To the knowledge of any Seller PSA Entity, there has been no material adverse change in its business or financial condition of the Project Owner since the date of the Original Financial Statements.

***No Immunity***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Neither the Project Owner nor any of their assets has immunity from the jurisdiction of a court or from legal process.

***Anti-Corruption and Anti-Terrorism Laws, Child and Forced Labor and Sanctions***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) To the knowledge of any Seller PSA Entity, neither the Project Owner, nor any of their directors or officers is aware of or has taken any action in carrying out the business of the Project Owner that could result in a material violation or breach by such Persons of Anti-Corruption Laws or Anti-Terrorism Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) To the knowledge of any Seller PSA Entity, the Project Owner is not and has not been the subject of any actual or threatened investigation, inquiry or other legal proceedings regarding any non-compliance or alleged non-compliance with, or has violated, any Applicable Laws related to child labor or forced labor. To the knowledge of any Seller PSA Entity, the Project Owner has not employed, engaged or otherwise used child labor or forced labor or, to the knowledge of any Seller PSA Entity, used goods that were produced in whole or in part using child labor or forced labor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) To the knowledge of any Seller PSA Entity, neither the Project Owner, nor any of its directors, officers, employees and agents is a Sanctioned Person or deals in property or interests in property, or otherwise engages in any transaction, prohibited by Sanctions. This section shall not be interpreted or applied in relation to the Project Owner or its respective directors, officers, employees and agents to the extent the representations made under this section violate or would result in a breach of the *Foreign Extraterritorial Measures Act* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) To the knowledge of any Seller PSA Entity, all Project Assets were acquired by the Project Owner in compliance with Anti-Corruption Laws and Anti-Terrorism Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) To the knowledge of any Seller PSA Entity, the Project Owner is not in violation of any applicable Sanctions.

***Operations and the Stream Properties***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) To the knowledge of any Seller PSA Entity, the Stream Properties set forth on Part I of Schedule A constitute all of the Mining Rights that comprise the interest of the Project Owner in the Mine. To the knowledge of any Seller PSA Entity, the Stream Properties are sufficient to develop, construct and operate the Mine in accordance with the Mine Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) To the knowledge of any Seller PSA Entity, the Project Owner is the registered or recorded owner of a 100% legal and beneficial right, title and interest in and to the Stream Properties and Project Assets, with good, valid and marketable title thereto free and clear of all Encumbrances other than Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) To the knowledge of any Seller PSA Entity, no person, other than Purchaser, has any agreement, option, right of first refusal or right, title or interest or right capable of becoming an agreement, option, right of first refusal or right, title or interest, in or to the Stream Properties or the copper produced from the Stream Properties. To the knowledge of any Seller PSA Entity, other than in respect of the Permitted Encumbrances, no Person is entitled to or has been granted any royalty or other payment in the nature of rent or royalty on any Produced Copper.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) To the knowledge of any Seller PSA Entity, all material Mining Rights, Access Rights and Authorizations necessary for the carrying on of mining operations on the Stream Properties, as currently conducted, have been obtained and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Neither Seller nor, to the knowledge of any Seller PSA Entity, the Project Owner have created, assumed, granted, or permitted to exist any Encumbrance on the assets of any such Seller PSA Entity or the Project Owner, other than the Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Seller PSA Entities have not received any written notice of any adverse claim against, or challenge to the title or ownership of, the Mine. No Seller PSA Entity has received notice of and no Seller PSA Entity is aware of any intention of any Governmental Authority to revoke or resume any of the Stream Properties, Mining Rights or Authorizations required in connection with the Project.

***Environmental Matters***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) To the knowledge of any Seller PSA Entity, the Project Owner in the conduct of operations at the Mine is in compliance with all Environmental Laws in all material respects and no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or could reasonably be expected to have an Adverse Impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) To the knowledge of any Seller PSA Entity, the Project Owner has obtained all Authorizations required under Environmental Laws necessary to develop and operate the Mine as it is currently developed and operated and all such Authorizations are in good standing and, to the knowledge of the Seller PSA Entities, there are no claims, actions, suits, proceedings, investigations or inquiries (i) by or before any Governmental Authority relating to material non-compliance or material breach of any such Authorizations, or (ii) which have been initiated to modify or revoke any such Authorizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) To the knowledge of any Seller PSA Entity, no act or omission has occurred and there is no circumstance relating to any of the Seller PSA Entities, the Project Owner, any of their assets, any of the Project Assets or Collateral, which has given rise to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a claim, notice, request for information, complaint, allegation, investigation, application, order, requirement or directive against a Seller PSA Entity or the Project Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a requirement of substantial expenditure by a Seller PSA Entity or the Project Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a requirement that any Seller PSA Entity or the Project Owner ceases or substantially alters an activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a requirement that any Seller PSA Entity or the Project Owner perform any environmental closure, decommissioning, rehabilitation, restoration or post- remedial investigations, with respect to any matter under Environmental Laws applicable thereto which has or could reasonably be expected to have an Adverse Impact.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) To the knowledge of any Seller PSA Entity, the Seller PSA Entities and the Project Owner have made available to Purchaser a true and complete copy of each material environmental audit, assessment, study, report or test of which it is aware relating to the Mine, including any environmental and social impact assessment study reports.

***Compliance with Laws and Expropriation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) To the knowledge of any Seller PSA Entity, the Project Owner has conducted and is conducting its business in compliance with Applicable Laws and applicable Authorizations, except where the failure to comply could not reasonably be expected to have an Adverse Impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) To the knowledge of any Seller PSA Entity, the Project Owner is in compliance with all Applicable Laws and collective bargaining agreements respecting employment, wages, hours of work and occupational health and safety and employment practices, except where the failure to comply could not reasonably be expected to have an Adverse Impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) None of the Seller Group Entities or, to the knowledge of any Seller PSA Entity, the Project Owner has received any notice of, nor does any Seller PSA Entity have knowledge of any event that has occurred, or condition that exists, in each case, which would permit the cancellation, termination, forfeiture, expropriation or suspension of all of any part of the Stream Properties or other Project Assets.

***Litigation and Orders***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the knowledge of any Seller PSA Entity, there are no outstanding or pending actions, suits, proceedings or claims affecting, or pertaining to, any Seller PSA Entity, the Project Owner or the Project Assets or that would otherwise have an Adverse Impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) None of the Seller Group Entities or, to the knowledge of any Seller PSA Entity, the Project Owner nor the Project Assets are subject to any outstanding judgment, order, writ, injunction, decree or sanction that limits or restricts or may limit or restrict any Seller PSA Entity or the Project Owner from performing, fulfilling and satisfying their respective covenants and obligations under the Stream Documents or would otherwise reasonably be expected to have an Adverse Impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) No Seller PSA Entity or, any other Person to the knowledge of the Seller PSA Entities, has received from any Governmental Authority any notice or order requiring it or any other Person to perform or cease to perform any act in relation to the Project or the construction, development and operation of the Project.

***Taxes***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) To the knowledge of any Seller PSA Entity, all Taxes of the Project Owners that are due and payable have been paid, including, but not limited to, any third party withheld tax, or accrued and adequately disclosed and fully provided for in its books and records, except for those Taxes that are being diligently contested in good faith and for which adequate provisions have been made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) To the knowledge of any Seller PSA Entity, each Project Owner has filed or caused to be filed all Tax Returns that are required to be filed by, or with respect to, the applicable Project Owner (taking into account any applicable extension of time within which to file).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) To the knowledge of any Seller PSA Entity, the Project Owners are not currently under audit or other examination of Taxes by any Governmental Authority nor have the Project Owners received any written notices from any taxing authority that such an audit or examination is contemplated or pending.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) To the knowledge of any Seller PSA Entity, no Project Owner is presently contesting any Tax liability of the Project Owner before any court, tribunal or agency and no audit of any Project Owner is currently ongoing by any Governmental Authority and there are no outstanding issues which have been raised and communicated to a Project Owner by any Governmental Authority.

***Material Contracts***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) To the knowledge of any Seller PSA Entity Purchaser has been provided true and complete copies of all Material Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) Each Seller PSA Entity's and, to the knowledge of any Seller PSA Entity, the Project Owner's, as applicable, material obligations under the Material Contracts are valid and binding and enforceable in accordance with their terms and conditions, subject to laws generally affecting creditors' rights and to principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) Each Seller PSA Entity and, to the knowledge of any Seller PSA Entity, the Project Owner that is a party to a Material Contract is not in breach of or default under the Material Contracts in any material respect and is not aware of any act, omission or circumstances having occurred which would give any other party legal grounds to terminate, rescind or vary any Material Contract. To the knowledge of any Seller PSA Entity, there is no intention on the part of any of the other parties to a Material Contract to terminate any of them.

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**SCHEDULE C**

**REPRESENTATIONS AND WARRANTIES OF PURCHASER**

(a) It is a company duly incorporated and validly existing under the laws of its jurisdiction of formation and is up to date in respect of all filings required by law.

(b) All requisite corporate acts and proceedings have been done and taken by it, including obtaining all requisite board of directors' approval, with respect to entering into this Agreement and performing its obligations hereunder.

(c) It has the requisite corporate power, capacity and authority to enter into this Agreement and to perform its obligations hereunder.

(d) This Agreement and the exercise of its rights and performance of its obligations hereunder do not and will not (i) conflict with any agreement, mortgage, bond or other instrument to which it is a party or which is binding on its assets, (ii) conflict with its constating or constitutive documents, or (iii) conflict with or violate any Applicable Law.

(e) No Authorizations are required to be obtained by it in connection with the execution and delivery or the performance by it of this Agreement or the transactions contemplated hereby except for Authorization by its board of directors that have been obtained prior to the Signing Date.

(f) This Agreement has been duly and validly executed and delivered by it and constitutes a legal, valid and binding obligation of Purchaser, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws affecting creditors' rights generally and subject to general principles of equity applicable under Applicable Law, including the qualification that equitable remedies may be granted in the discretion of a court of competent jurisdiction.

(g) It enters into and performs this Agreement on its own account and not as trustee or a nominee of any other person.

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**SCHEDULE D**

*[Redacted - Commercially Sensitive Information - Material Contracts]*

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**SCHEDULE E**

**STREAM NPV PROCEDURES**

1. Upon any requirement to determine the Stream NPV, Seller and Purchaser shall for a period of 30 days (the "**Discussion Period**") each use their respective commercially reasonable endeavours to mutually agree upon the value of the Stream NPV based on the NPV Criteria.

"**NPV Criteria**" means a calculation of net present value of future deliveries of Refined Gold that would have been made to Purchaser under this Agreement, such net present value to be determined based on (i) the current Technical Report for the Project, (ii) the most recent Mine Plan delivered to Purchaser prior to the event triggering the need for the calculation, (iii) the average of the published Selected Commodity Analysts' forecast for future prices of copper and (iv) a discount rate of 5%. "Selected Commodity Analysts" means the respective division, group or entity of each of the following, which is responsible for forecasting metal prices for copper: Bank of America Merrill Lynch, BMO Capital Markets, CIBC World Markets, Credit Suisse, GMP Securities, Morgan Stanley, RBC Capital Markets, Scotia Capital, TD Securities and UBS Securities, provided that any of the foregoing that has not published forecasts for the applicable metal prior to end of the last calendar quarter shall be excluded with respect to such metal and the foregoing list may be updated by the Parties, acting reasonably, in writing from time to time in order to remove and replace any institution that ceases to publish the relevant information.

2. To the extent Seller and Purchaser are unable to agree on the value of the Stream NPV within the Discussion Period, the value of Stream NPV shall be determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Stream NPV shall be the simple average of the valuations prepared by two Independent Experts (as such term is defined below) appointed in accordance with, and using the methodology described within, this Schedule. These two Independent Experts shall be appointed within 10 Business Days of the expiry of the Discussion Period and the appointing party shall notify the non appointing party of such appointment. If the non appointing party shall challenge such appointment on the basis that the Independent Expert is not duly qualified to act or is not independent, then the non appointing party shall have the right to refer such appointment to the International Centre for Dispute Resolution, who shall appoint an Independent Expert to act on behalf of the appointing party (but using the parameters set forth in this Schedule); and(the Stream NPV determined in accordance with the foregoing process, in the absence of material proven error or fraud shall be final and binding on Seller and Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Each of Seller and Purchaser shall, with respect to the two Independent Experts and to the extent required pursuant to this Schedule, appoint one suitably qualified investment banking firm of internationally recognised standing (subject to paragraph (d)(i) below) to act as an independent expert (each, an "**Independent Expert**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Unless Seller and Purchaser agree otherwise, each Independent Expert shall be a firm that is, with respect to any Independent Expert, independent of Seller and Purchaser and each of their respective Affiliates.

3. Seller and Purchaser shall ensure that each Independent Expert (as well as the other party) has access to (and copies to the extent requested) such books, records and information in such person's or its Affiliates' possession or control as any Independent Expert may reasonably request for the purpose of determining the Stream NPV. To the extent possible, Seller and its Affiliates and Purchaser shall also make their personnel, consultants and advisors available to each Independent Expert for such purpose.

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4. Each Independent Expert shall act as an expert and not as an arbitrator. Each Independent Expert shall provide a written determination of the value with respect to the Stream NPV (each, a "**Valuation Certificate**").

5. Seller and Purchaser shall each bear the costs of obtaining the Valuation Certificate of the Independent Expert appointed by them.

6. The Valuation Certificates shall be issued to each of Seller and Purchaser by the Independent Experts within 15 Business Days of their appointment unless agreed otherwise by each of Seller and Purchaser.

7. The Stream NPV shall be determined on the basis of knowledgeable, arm's length parties, and shall be determined using a valuation methodology based on the present pre-tax US Dollar discounted value. The valuation methodology utilized shall be the same for all of the Independent Experts.

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**SCHEDULE F**

**CONDITIONS PRECEDENT**

**Part I - In Favour of Purchaser**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Documentary Deliveries:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall have delivered to Purchaser a current (dated no earlier than two Business Days prior to the Closing Date) certificate of status, good standing or compliance (or equivalent) for Parent and Seller issued by the relevant Governmental Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evidence satisfactory to Purchaser that the Parent and Seller have sufficient funds and/or financing in place to complete the Acquisition Transaction and that the Acquisition Transaction will be completed, concurrently with or before the funding of the Deposit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of the Seller PSA Entities shall have given to Purchaser a certificate given by a senior officer dated as of the Closing Date certifying as to (i) the constating documents of each Seller PSA Entity and the Project Owner; (ii) the resolutions of the board of directors or shareholders meeting (as appropriate) of each Seller PSA Entity authorizing the execution, delivery and performance of this Agreement and the Stream Security Documents to which it is a party and the transactions contemplated hereby and thereby and (iii) the matters referred set forth in Part II of this Schedule F are true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller PSA Entities shall have obtained, and provided Purchaser with copies of, all Authorizations (in form and substance satisfactory to Purchaser) required in connection with the entering into of this Agreement and the Stream Security Documents and the validity and enforceability thereof, to permit the transactions contemplated by this Agreement and the Stream Security Documents and the completion of the Acquisition Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Seller PSA Entities shall have delivered to Purchaser a copy of the Mine Plan and Base Case Financial Model; and.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Other Conditions:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All of the representations and warranties made by each Seller PSA Entity pursuant to this Agreement are true and correct in all material respects as of the date hereof (or in any respect in the case of representations and warranties that are qualified by materiality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Seller PSA Entity is in breach or default and there is no Event of Default that has occurred and is continuing (or an event which with notice or lapse of time or both would become a breach, default or Event of Default) under this Agreement or any other Stream Document to which any Seller PSA Entity is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No term of the SPA has been waived or amended, without Purchaser's prior written consent, except for any waiver or amendment that could not reasonably be expected to be materially adverse to Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The conditions precedent to completion of the Acquisition Transaction contained in article 7 of the SPA (as in effect on the date of this Agreement) have been satisfied and no conditions precedent to the Acquisition Transaction have been or will be waived or amended (unless Purchaser has given its prior written consent) other than the delivery of the purchase price for the Acquisition Transaction which shall occur prior to or concurrently with the payment of the Deposit by Purchaser; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No judgment, injunction, order or decree has been issued and no action or proceeding, at law or in equity, is pending or, to the knowledge of such Seller PSA Entity, threatened by any Person or Governmental Authority to restrain, enjoin or prohibit the consummation of the Acquisition Transaction or the transactions contemplated by any Stream Document or could reasonably be expected to adversely affect in any material respect any of Purchaser's rights, obligations or benefits under this Agreement or the other Stream Documents.

**Part II - In Favor of Seller**

**Documentary Deliveries:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser shall have given the Seller a certificate given by a senior officer dated as of the Closing Date certifying as to (i) the constating documents of Purchaser; and (ii) the matters referred set forth in Section 3.3(2)(b) and (c) are true and correct in all respects.

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**SCHEDULE G**

*[Redacted - Commercially Sensitive Information - Existing Security]*

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**SCHEDULE H**

**ARBITRATION RULES**

The following rules and procedures shall apply with respect to any matter to be arbitrated by the Parties (and for this purpose any of the Seller Group Entities involved in the Dispute shall be deemed to be one Party and Purchaser the other Party) under the terms of this Agreement.

1. A Party (the "**Claimant**") commences arbitration of a Dispute by delivering to all other Party (the "**Respondent**") a written notice of arbitration (the "**Arbitration Notice**").

2. The Arbitration Notice will contain a concise description of the matters submitted for arbitration, including the facts supporting the Claimant's position, the points at issue and the relief sought.

3. The arbitration will be conducted in accordance with this Schedule "I" and the Arbitration Rules.

4. The arbitral tribunal will consist of a single arbitrator. The single arbitrator will be appointed by mutual agreement of the Claimant and the Respondent or, if they do not agree within 10 Business Days following the delivery of the Arbitration Notice, then the Claimant or the Respondent may bring an application to the Vancouver International Arbitration Centre to appoint the arbitrator.

5. The Parties agree that time is of the essence in the conduct of the arbitration proceedings and the Parties and the arbitral tribunal will conduct the arbitration in an expeditious and speedy manner, unless the subject matter of the Dispute requires otherwise.

6. The arbitration will take place in Vancouver, British Columbia and the language of the arbitration shall be English.

7. The award will deal with the question of costs of arbitration, which may include the arbitrators' fees and expenses, the Parties' reasonable legal fees and expenses, and any other costs, fees or expenses related to the arbitration. Unless the Parties otherwise agree in writing, the arbitral tribunal shall exercise its discretion to award costs on a substantial indemnity basis and in accordance with the general principle that costs should reflect the Parties' relative success and failure, except where it appears to the arbitral tribunal that this approach is inappropriate. The arbitral tribunal may also award the payment of interest on any award amount at a rate determined in the sole discretion of the arbitral tribunal.

8. Either of the Claimant or any Respondent may appeal the decision of the arbitral tribunal on a question of fact or a question of law or a question of mixed fact and law, as well as any arbitral tribunal award of costs other than with respect to the basis that such costs were awarded on a substantial indemnity basis. In the event that the Claimant or any Respondent initiates any court proceeding in respect of the decision of the arbitral tribunal or the matter arbitrated, such Party, if unsuccessful in the court proceeding, shall pay the other Party's costs of such proceedings on a substantial indemnity basis.

The Parties agree that the arbitration will be kept confidential and that the existence of the proceeding and any element of it (including any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions and any awards) will not be disclosed beyond the arbitral tribunal, the Parties, their counsel and any Person necessary to the conduct of the proceeding, except as may lawfully be required in judicial proceedings relating to the arbitration or otherwise or as may be required by Law.

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**SCHEDULE I**

*[Redacted - Commercially Sensitive Information - Consents]*

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## Exhibit 4.7

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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT<br>BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED TERMS IN THIS EXHIBIT ARE DESIGNATED BY [\*].

**ESCROW AGREEMENT**

**THIS AGREEMENT** is made as of the 12th day of May, 2025

**AMONG:**

**VERSAMET ROYALTIES CORPORATION,** a company duly incorporated under the laws of the Province of British Columbia (the **"Issuer"**)

**AND:**

**TSX TRUST COMPANY**, a company existing under the laws of Canada and having a registered office in the City of Vancouver, British Columbia (the **"Escrow Agent"**)

**AND:**

**EACH OF THE UNDERSIGNED SECURITYHOLDERS OF THE ISSUER**

(a **"Securityholder"** or **"you"**)

(collectively, the **"Parties"**)

**This Agreement** is being entered into by the Parties under National Policy 46-201 *Escrow for Initial Public Offerings* (the **Policy**) in connection with the non-offering prospectus of the Issuer, an emerging issuer, and the proposed listing (the "**Listing**") of the common shares of the Issuer on the facilities of the TSX Venture Exchange (collectively, the "**IPO**").

**For good and valuable consideration,** the Parties agree as follows:

**PART 1 ESCROW**

**1.1 Appointment of Escrow Agent**

The Issuer and the Securityholders appoint the Escrow Agent to act as escrow agent under this Agreement. The Escrow Agent accepts the appointment.

**1.2 Deposit of Escrow Securities in Escrow** 

(1) You are depositing the securities **(escrow securities)** listed opposite your name in Schedule "A" with the Escrow Agent to be held in escrow under this Agreement. You will immediately deliver or cause to be delivered to the Escrow Agent any share certificates or other evidence of these securities which you have or which you may later receive.

(2) If you receive any other securities (**additional escrow securities)**:

(a) as a dividend or other distribution on escrow securities;

(b) on the exercise of a right of purchase, conversion or exchange attaching to escrow securities, including securities received on conversion of special warrants;

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(c) on a subdivision, or compulsory or automatic conversion or exchange of escrow securities; or

(d) from a successor issuer in a business combination, if Part 6 of this Agreement applies,

you will deposit them in escrow with the Escrow Agent. You will deliver or cause to be delivered to the Escrow Agent any share certificates or other evidence of those additional escrow securities. When this Agreement refers to **escrow securities,** it includes additional escrow securities.

(3) You will immediately deliver to the Escrow Agent any replacement share certificates or other evidence of additional escrow securities issued to you.

**1.3 Direction to Escrow Agent**

The Issuer and the Securityholders direct the Escrow Agent to hold the escrow securities in escrow until they are released from escrow under this Agreement.

**PART 2 RELEASE OF ESCROW SECURITIES**

**2.1 Release Schedule for an Established Issuer**

***2.1.1** **Usual case***

If the Issuer is an **established issuer** (as defined in section 3.3 of the Policy) and you have not sold any escrow securities in a permitted secondary offering, your escrow securities will be released as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;On ________, 2___, the date the Issuer's securities are listed on a Canadian exchange **(the listing date)** | &nbsp;&nbsp;1/4 of your escrow securities |
| &nbsp;&nbsp;6 months after the listing date | &nbsp;&nbsp;1/3 of your remaining escrow securities |
| &nbsp;&nbsp;12 months after the listing date | &nbsp;&nbsp;1/2 of your remaining escrow securities |
| &nbsp;&nbsp;18 months after the listing date | &nbsp;&nbsp;your remaining escrow securities |

---

\*In the simplest case, where there are no changes to the escrow securities initially deposited and no additional escrow securities, then the release schedule outlined above results in the escrow securities being released in equal tranches of 25%.

***2.1.2** **Alternate meaning of "listing date"***

If the Issuer is an established issuer, an alternate meaning for **listing date** is the date the Issuer completes its IPO if the Issuer's securities are listed on a Canadian exchange immediately before its IPO.

***2.1.3** **If there is a permitted secondary offering***

(1) If the Issuer is an established issuer and you have sold in a permitted secondary offering 25% or more of your escrow securities, your escrow securities will be released as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;For delivery to complete the IPO | &nbsp;&nbsp;All escrow securities sold by you in the permitted secondary offering |
| &nbsp;&nbsp;6 months after the listing date | &nbsp;&nbsp;1/3 of your remaining escrow securities |
| &nbsp;&nbsp;12 months after the listing date | &nbsp;&nbsp;1/2 of your remaining escrow securities |
| &nbsp;&nbsp;18 months after the listing date | &nbsp;&nbsp;your remaining escrow securities |

---

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\*In the simplest case, where there are no changes to the remaining escrow securities upon completion of the permitted secondary offering and no additional escrow securities, the release schedule outlined above results in the remaining escrow securities being released in equal tranches of 33 1/3%.

(2) If the Issuer is an established issuer and you have sold in a permitted secondary offering less than 25% of your escrow securities, your escrow securities will be released as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;For delivery to complete the IPO | &nbsp;&nbsp;All escrow securities sold by you in the permitted secondary offering |
| &nbsp;&nbsp;On the listing date | &nbsp;&nbsp;1/4 of your original number of escrow securities less the escrow securities sold by you in the permitted secondary offering |
| &nbsp;&nbsp;6 months after the listing date | &nbsp;&nbsp;1/3 of your remaining escrow securities |
| &nbsp;&nbsp;12 months after the listing date | &nbsp;&nbsp;1/2 of your remaining escrow securities |
| &nbsp;&nbsp;18 months after the listing date | &nbsp;&nbsp;your remaining escrow securities |

---

\*In the simplest case, where there are no changes to the remaining escrow securities upon completion of the permitted secondary offering and no additional escrow securities, the release schedule outlined above results in the remaining escrow securities being released in equal tranches of 33 1/3% after completion of the release on the listing date.

***2.1.4** **Additional escrow securities***

If you acquire additional escrow securities, those securities will be added to the securities already in escrow, to increase the number of remaining escrow securities. After that, all of the escrow securities will be released in accordance with the applicable release schedule in the tables above.

**2.2 Release Schedule for an Emerging Issuer**

***2.2.1** **Usual case***

If the Issuer is an **emerging issuer** (as defined in section 3.3 of the Policy) and you have not sold any escrow securities in a permitted secondary offering, your escrow securities will be released as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;On _______, 2____, the date the Issuer's securities are listed on a Canadian exchange **(the listing date)** | &nbsp;&nbsp;1/10 of your escrow securities |
| &nbsp;&nbsp;6 months after the listing date | &nbsp;&nbsp;1/6 of your remaining escrow securities |
| &nbsp;&nbsp;12 months after the listing date | &nbsp;&nbsp;1/5 of your remaining escrow securities |
| &nbsp;&nbsp;18 months after the listing date | &nbsp;&nbsp;1/4 of your remaining escrow securities |
| &nbsp;&nbsp;24 months after the listing date | &nbsp;&nbsp;1/3 of your remaining escrow securities |
| &nbsp;&nbsp;30 months after the listing date | &nbsp;&nbsp;1/2 of your remaining escrow securities |
| &nbsp;&nbsp;36 months after the listing date | &nbsp;&nbsp;your remaining escrow securities |

---

\*In the simplest case, where there are no changes to the escrow securities initially deposited and no additional escrow securities, the release schedule outlined above results in the escrow securities being released in equal tranches of 15% after completion of the release on the listing date.

***2.2.2** **Alternate meaning of "listing date"***

If the Issuer is an emerging issuer, an alternate meaning for **listing date** is the date the Issuer completes its IPO if:

(a) the Issuer's securities are not listed on a Canadian exchange immediately after its IPO; or

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(b) the Issuer's securities are listed on a Canadian exchange immediately before its IPO.

***2.2.3** **If there is a permitted secondary offering***

(1) If the Issuer is an emerging issuer and you have sold in a permitted secondary offering 10% or more of your escrow securities, your escrow securities will be released as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;For delivery to complete the IPO | &nbsp;&nbsp;All escrow securities sold by you in the permitted secondary offering |
| &nbsp;&nbsp;6 months after the listing date | &nbsp;&nbsp;1/6 of your remaining escrow securities |
| &nbsp;&nbsp;12 months after the listing date | &nbsp;&nbsp;1/5 of your remaining escrow securities |
| &nbsp;&nbsp;18 months after the listing date | &nbsp;&nbsp;1/4 of your remaining escrow securities |
| &nbsp;&nbsp;24 months after the listing date | &nbsp;&nbsp;1/3 of your remaining escrow securities |
| &nbsp;&nbsp;30 months after the listing date | &nbsp;&nbsp;1/2 of your remaining escrow securities |
| &nbsp;&nbsp;36 months after the listing date | &nbsp;&nbsp;your remaining escrow securities |

---

\*In the simplest case, where there are no changes to the remaining escrow securities upon completion of the permitted secondary offering and no additional escrow securities, the release schedule outlined above results in the remaining escrow securities being released in equal tranches of 16 2/3%.

(2) If the Issuer is an emerging issuer and you have sold in a permitted secondary offering less than 10% of your escrow securities, your escrow securities will be released as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;For delivery to complete the IPO | &nbsp;&nbsp;All escrow securities sold by you in the permitted secondary offering |
| &nbsp;&nbsp;On the listing date | &nbsp;&nbsp;1/10 of your original number of escrow securities less the escrow securities sold by you in the permitted secondary offering |
| &nbsp;&nbsp;6 months after the listing date | &nbsp;&nbsp;1/6 of your remaining escrow securities |
| &nbsp;&nbsp;12 months after the listing date | &nbsp;&nbsp;1/5 of your remaining escrow securities |
| &nbsp;&nbsp;18 months after the listing date | &nbsp;&nbsp;1/4 of your remaining escrow securities |
| &nbsp;&nbsp;24 months after the listing date | &nbsp;&nbsp;1/3 of your remaining escrow securities |
| &nbsp;&nbsp;30 months after the listing date | &nbsp;&nbsp;1/2 of your remaining escrow securities |
| &nbsp;&nbsp;36 months after the listing date | &nbsp;&nbsp;your remaining escrow securities |

---

\*In the simplest case, where there are no changes to the remaining escrow securities upon completion of the permitted secondary offering and no additional escrow securities, the release schedule outlined above results in the remaining escrow securities being released in equal tranches of 16 2/3% after completion of the release on the listing date.

***2.2.4** **Additional escrow securities***

If you acquire additional escrow securities, those securities will be added to the securities already in escrow, to increase the number of remaining escrow securities. After that, all of the escrow securities will be released in accordance with the applicable release schedule in the tables above.

**2.3 Delivery of Share Certificates for Escrow Securities** 

The Escrow Agent will send to each Securityholder any share certificates or other evidence of that Securityholder's escrow securities in the possession of the Escrow Agent released from escrow as soon as reasonably practicable after the release.

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**2.4 Replacement Certificates** 

If, on the date a Securityholder's escrow securities are to be released, the Escrow Agent holds a share certificate or other evidence representing more escrow securities than are to be released, the Escrow Agent will deliver the share certificate or other evidence to the Issuer or its transfer agent and request replacement share certificates or other evidence. The Issuer will cause replacement share certificates or other evidence to be prepared and delivered to the Escrow Agent. After the Escrow Agent receives the replacement share certificates or other evidence, the Escrow Agent will send to the Securityholder or at the Securityholder's direction, the replacement share certificate or other evidence of the escrow securities released. The Escrow Agent and Issuer will act as soon as reasonably practicable.

**2.5 Release upon Death**

(1) If a Securityholder dies, the Securityholder's escrow securities will be released from escrow. The Escrow Agent will deliver any share certificates or other evidence of the escrow securities in the possession of the Escrow Agent to the Securityholder's legal representative.

(2) Prior to delivery the Escrow Agent must receive:

(a) a certified copy of the death certificate; and

(b) any evidence of the legal representative's status that the Escrow Agent may reasonably require.

**PART 3 EARLY RELEASE ON CHANGE OF ISSUER STATUS**

**3.1 Becoming an Established Issuer**

If the Issuer is an emerging issuer on the date of this Agreement and, during this Agreement, the Issuer:

(a) lists its securities on the Toronto Stock Exchange Inc. or Aequitas NEO Exchange Inc.;

(b) becomes a TSX Venture Exchange Inc. **(TSX Venture)** Tier 1 issuer; or

(c) lists or quotes its securities on an exchange or market outside Canada that its "principal regulator" under National Policy 43-201 *Mutual Reliance Review System for Prospectuses and Annual Information Forms* (in Quebec under Staff Notice, *Mutual Reliance Review System for Prospectuses and Annual Information Forms*) or, if the Issuer has only filed its IPO prospectus in one jurisdiction, the securities regulator in that jurisdiction, is satisfied has minimum listing requirements at least equal to those of TSX Venture Tier 1,

then the Issuer becomes an **established issuer.** 

**3.2 Release of Escrow Securities**

(1) When an emerging issuer becomes an established issuer, the release schedule for its escrow securities changes.

(2) If an emerging issuer becomes an established issuer 18 months or more after its listing date, all escrow securities will be released immediately.

(3) If an emerging issuer becomes an established issuer within 18 months after its listing date, all escrow securities that would have been released to that time, if the Issuer was an established issuer on its listing date, will be released immediately. Remaining escrow securities will be released in equal installments on the day that is 6 months, 12 months and 18 months after the listing date.

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**3.3 Filing Requirements**

Escrow securities will not be released under this Part until the Issuer does the following:

(a) at least 20 days before the date of the first release of escrow securities under the new release schedule, files with the securities regulators in the jurisdictions in which it is a reporting issuer

(i) a certificate signed by a director or officer of the Issuer authorized to sign stating

(A) that the Issuer has become an established issuer by satisfying one of the conditions in section 3.1 and specifying the condition, and

(B) the number of escrow securities to be released on the first release date under the new release schedule, and

(ii) a copy of a letter or other evidence from the exchange or quotation service confirming that the Issuer has satisfied the condition to become an established issuer; and

(b) at least 10 days before the date of the first release of escrow securities under the new release schedule, issues and files with the securities regulators in the jurisdictions in which it is a reporting issuer a news release disclosing details of the first release of the escrow securities and the change in the release schedule, and sends a copy of such filing to the Escrow Agent.

**3.4 Amendment of Release Schedule**

The new release schedule will apply 10 days after the Escrow Agent receives a certificate signed by a director or officer of the Issuer authorized to sign

(a) stating that the Issuer has become an established issuer by satisfying one of the conditions in section 3.1 and specifying the condition;

(b) stating that the release schedule for the Issuer's escrow securities has changed;

(c) stating that the Issuer has issued a news release at least 10 days before the first release date under the new release schedule and specifying the date that the news release was issued; and

(d) specifying the new release schedule.

**PART 4 DEALING WITH ESCROW SECURITIES**

**4.1 Restriction on Transfer, etc.**

**Unless it is expressly permitted in this Agreement, you will not sell, transfer, assign, mortgage, enter into a derivative transaction concerning, or otherwise deal in any way with your escrow securities or any related share certificates or other evidence of the escrow securities. If a Securityholder is a private company controlled by one or more principals (as defined in section 3.5 of the Policy) of the Issuer, the Securityholder may not participate in a transaction that results in a change of its control or a change in the economic exposure of the principals to the risks of holding escrow securities.**

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**4.2 Pledge, Mortgage or Charge as Collateral for a Loan**

You may pledge, mortgage or charge your escrow securities to a financial institution as collateral for a loan, provided that no escrow securities or any share certificates or other evidence of escrow securities will be transferred or delivered by the Escrow Agent to the financial institution for this purpose. The loan agreement must provide that the escrow securities will remain in escrow if the lender realizes on the escrow securities to satisfy the loan.

**4.3 Voting of Escrow Securities**

You may exercise any voting rights attached to your escrow securities.

**4.4 Dividends on Escrow Securities**

You may receive a dividend or other distribution on your escrow securities, and elect the manner of payment from the standard options offered by the Issuer. If the Escrow Agent receives a dividend or other distribution on your escrow securities, other than additional escrow securities, the Escrow Agent will pay the dividend or other distribution to you on receipt.

**4.5 Exercise of Other Rights Attaching to Escrow Securities**

You may exercise your rights to exchange or convert your escrow securities in accordance with this Agreement.

**PART 5 PERMITTED TRANSFERS WITHIN ESCROW**

**5.1 Transfer to Directors and Senior Officers**

(1) You may transfer escrow securities within escrow to existing or, upon their appointment, incoming directors or senior officers of the Issuer or any of its material operating subsidiaries, if the Issuer's board of directors has approved the transfer.

(2) Prior to the transfer the Escrow Agent must receive:

(a) a certified copy of the resolution of the board of directors of the Issuer approving the transfer;

(b) a certificate signed by a director or officer of the Issuer authorized to sign, stating that the transfer is to a director or senior officer of the Issuer or a material operating subsidiary and that any required approval from the Canadian exchange the Issuer is listed on has been received;

(c) an acknowledgment in the form of Schedule "B" signed by the transferee;

(d) copies of the letters sent to the securities regulators described in subsection (3) accompanying the acknowledgement; and

(e) a transfer power of attorney, completed and executed by the transferor in accordance with the requirements of the Issuer's transfer agent.

(3) At least 10 days prior to the transfer, the Issuer will file a copy of the acknowledgement with the securities regulators in the jurisdictions in which it is a reporting issuer.

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**5.2 Transfer to Other Principals**

(1) You may transfer escrow securities within escrow:

(a) to a person or company that before the proposed transfer holds more than 20% of the voting rights attached to the Issuer's outstanding securities; or

(b) to a person or company that after the proposed transfer

(i) will hold more than 10% of the voting rights attached to the Issuer's outstanding securities, and

(ii) has the right to elect or appoint one or more directors or senior officers of the Issuer or any of its material operating subsidiaries.

(2) Prior to the transfer the Escrow Agent must receive:

(a) a certificate signed by a director or officer of the Issuer authorized to sign stating that

(i) the transfer is to a person or company that the officer believes, after reasonable investigation, holds more than 20% of the voting rights attached to the Issuer's outstanding securities before the proposed transfer, or

(ii) the transfer is to a person or company that

(A) the officer believes, after reasonable investigation, will hold more than 10% of the voting rights attached to the Issuer's outstanding securities, and

(B) has the right to elect or appoint one or more directors or senior officers of the Issuer or any of its material operating subsidiaries

after the proposed transfer, and

(iii) any required approval from the Canadian exchange the Issuer is listed on has been received;

(b) an acknowledgment in the form of Schedule "B" signed by the transferee;

(c) copies of the letters sent to the securities regulators accompanying the acknowledgement; and

(d) a transfer power of attorney, executed by the transferor in accordance with the requirements of the Issuer's transfer agent.

(3) At least 10 days prior to the transfer, the Issuer will file a copy of the acknowledgement with the securities regulators in the jurisdictions in which it is a reporting issuer.

**5.3 Transfer upon Bankruptcy**

(1) You may transfer escrow securities within escrow to a trustee in bankruptcy or another person or company entitled to escrow securities on bankruptcy.

(2) Prior to the transfer, the Escrow Agent must receive:

(a) a certified copy of either

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(i) the assignment in bankruptcy filed with the Superintendent of Bankruptcy, or

(ii) the receiving order adjudging the Securityholder bankrupt;

(b) a certified copy of a certificate of appointment of the trustee in bankruptcy;

(c) a transfer power of attorney, completed and executed by the transferor in accordance with the requirements of the Issuer's transfer agent; and

(d) an acknowledgment in the form of Schedule "B" signed by:

(i) the trustee in bankruptcy, or

(ii) on direction from the trustee, with evidence of that direction attached to the acknowledgment form, another person or company legally entitled to the escrow securities.

(3) Within 10 days after the transfer, the transferee of the escrow securities will file a copy of the acknowledgment with the securities regulators in the jurisdictions in which the Issuer is a reporting issuer.

**5.4 Transfer Upon Realization of Pledged, Mortgaged or Charged Escrow Securities**

(1) You may transfer within escrow to a financial institution the escrow securities you have pledged, mortgaged or charged under section 4.2 to that financial institution as collateral for a loan on realization of the loan.

(2) Prior to the transfer the Escrow Agent must receive:

(a) a statutory declaration of an officer of the financial institution that the financial institution is legally entitled to the escrow securities;

(b) a transfer power of attorney, executed by the transferor in accordance with the requirements of the Issuer's transfer agent; and

(c) an acknowledgement in the form of Schedule "B" signed by the financial institution.

(3) Within 10 days after the transfer, the transferee of the escrow securities will file a copy of the acknowledgment with the securities regulators in the jurisdictions in which the Issuer is a reporting issuer.

**5.5 Transfer to Certain Plans and Funds**

(1) You may transfer escrow securities within escrow to or between a registered retirement savings plan (RRSP), registered retirement income fund (RRIF) or other similar registered plan or fund with a trustee, where the annuitant of the RRSP or RRIF, or the beneficiaries of the other registered plan or fund are limited to you and your spouse, children and parents, or, if you are the trustee of such a registered plan or fund, to the annuitant of the RRSP or RRIF, or a beneficiary of the other registered plan or fund, as applicable, or his or her spouse, children and parents.

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(2) Prior to the transfer the Escrow Agent must receive:

(a) evidence from the trustee of the transferee plan or fund, or the trustee's agent, stating that, to the best of the trustee's knowledge, the annuitant of the RRSP or RRIF, or the beneficiaries of the other registered plan or fund do not include any person or company other than you and your spouse, children and parents;

(b) a transfer power of attorney, executed by the transferor in accordance with the requirements of the Issuer's transfer agent; and

(c) an acknowledgement in the form of Schedule "B" signed by the trustee of the plan or fund.

(3) Within 10 days after the transfer, the transferee of the escrow securities will file a copy of the acknowledgment with the securities regulators in the jurisdictions in which the Issuer is a reporting issuer.

**5.6 Effect of Transfer Within Escrow**

After the transfer of escrow securities within escrow, the escrow securities will remain in escrow and released from escrow under this Agreement as if no transfer has occurred on the same terms that applied before the transfer. The Escrow Agent will not deliver any share certificates or other evidence of the escrow securities to transferees under this Part 5.

**PART 6 BUSINESS COMBINATIONS**

**6.1 Business Combinations**

This Part applies to the following **(business combinations)**:

(a) a formal take-over bid for all outstanding equity securities of the Issuer or which, if successful, would result in a change of control of the Issuer

(b) a formal issuer bid for all outstanding equity securities of the Issuer

(c) a statutory arrangement

(d) an amalgamation

(e) a merger

(f) a reorganization that has an effect similar to an amalgamation or merger

**6.2 Delivery to Escrow Agent** 

You may tender your escrow securities to a person or company in a business combination. At least five business days prior to the date the escrow securities must be tendered under the business combination, you must deliver to the Escrow Agent:

(a) a written direction signed by you that directs the Escrow Agent to deliver to the depositary under the business combination any share certificates or other evidence of the escrow securities and a completed and executed cover letter or similar document and, where required, transfer power of attorney completed and executed for transfer in accordance with the requirements of the depositary, and any other documentation specified or provided by you and required to be delivered to the depositary under the business combination; and

(b) any other information concerning the business combination as the Escrow Agent may reasonably request.

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**6.3 Delivery to Depositary** 

As soon as reasonably practicable, and in any event no later than three business days after the Escrow Agent receives the documents and information required under section 6.2, the Escrow Agent will deliver to the depositary, in accordance with the direction, any share certificates or other evidence of the escrow securities, and a letter addressed to the depositary that

(a) identifies the escrow securities that are being tendered;

(b) states that the escrow securities are held in escrow;

(c) states that the escrow securities are delivered only for the purposes of the business combination and that they will be released from escrow only after the Escrow Agent receives the information described in section 6.4;

(d) if any share certificates or other evidence of the escrow securities have been delivered to the depositary, requires the depositary to return to the Escrow Agent, as soon as practicable, any share certificates or other evidence of escrow securities that are not released from escrow into the business combination; and

(e) where applicable, requires the depositary to deliver or cause to be delivered to the Escrow Agent, as soon as practicable, any share certificates or other evidence of additional escrow securities that you acquire under the business combination.

**6.4 Release of Escrow Securities to Depositary**

The Escrow Agent will release from escrow the tendered escrow securities when the Escrow Agent receives a declaration signed by the depositary or, if the direction identifies the depositary as acting on behalf of another person or company in respect of the business combination, by that other person or company, that:

(a) the terms and conditions of the business combination have been met or waived; and

(b) the escrow securities have either been taken up and paid for or are subject to an unconditional obligation to be taken up and paid for under the business combination.

**6.5 Escrow of New Securities**

If you receive securities **(new securities)** of another issuer **(successor issuer)** in exchange for your escrow securities, the new securities will be subject to escrow in substitution for the tendered escrow securities if, immediately after completion of the business combination:

(a) the successor issuer is not an **exempt issuer** (as defined in section 3.2 of the Policy);

(b) you are a **principal** (as defined in section 3.5 of the Policy) of the successor issuer; and

(c) you hold more than 1% of the voting rights attached to the successor issuer's outstanding securities (In calculating this percentage, include securities that may be issued to you under outstanding convertible securities in both your securities and the total securities outstanding.)

**6.6 Release from Escrow of New Securities**

(1) As soon as reasonably practicable after the Escrow Agent receives:

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(a) a certificate from the successor issuer signed by a director or officer of the successor issuer authorized to sign

(i) stating that it is a successor issuer to the Issuer as a result of a business combination and whether it is an emerging issuer or an established issuer under the Policy, and

(ii) listing the Securityholders whose new securities are subject to escrow under section 6.5,

the escrow securities of the Securityholders whose new securities are not subject to escrow under section 6.5 will be released, and the Escrow Agent will send any share certificates or other evidence of the escrow securities in the possession of the Escrow Agent in accordance with section 2.3.

(2) If your new securities are subject to escrow, unless subsection (3) applies, the Escrow Agent will hold your new securities in escrow on the same terms and conditions, including release dates, as applied to the escrow securities that you exchanged.

(3) If the Issuer is

(a) an emerging issuer, the successor issuer is an established issuer, and the business combination occurs 18 months or more after the Issuer's listing date, all escrow securities will be released immediately; and

(b) an emerging issuer, the successor issuer is an established issuer, and the business combination occurs within 18 months after the Issuer's listing date, all escrow securities that would have been released to that time, if the Issuer was an established issuer on its listing date, will be released immediately. Remaining escrow securities will be released in equal instalments on the day that is 6 months, 12 months and 18 months after the Issuer's listing date.

**PART 7 RESIGNATION OF ESCROW AGENT**

**7.1 Resignation of Escrow Agent**

(1) If the Escrow Agent wishes to resign as escrow agent, the Escrow Agent will give written notice to the Issuer.

(2) If the Issuer wishes to terminate the Escrow Agent as escrow agent, the Issuer will give written notice to the Escrow Agent.

(3) If the Escrow Agent resigns or is terminated, the Issuer will be responsible for ensuring that the Escrow Agent is replaced not later than the resignation or termination date by another escrow agent that is acceptable to the securities regulators having jurisdiction in the matter and that has accepted such appointment, which appointment will be binding on the Issuer and the Securityholders.

(4) The resignation or termination of the Escrow Agent will be effective, and the Escrow Agent will cease to be bound by this Agreement, on the date that is 60 days after the date of receipt of the notices referred to above by the Escrow Agent or Issuer, as applicable, or on such other date as the Escrow Agent and the Issuer may agree upon (the "resignation or termination date"), provided that the resignation or termination date will not be less than 10 business days before a release date.

(5) If the Issuer has not appointed a successor escrow agent within 60 days of the resignation or termination date, the Escrow Agent will apply, at the Issuer's expense, to a court of competent jurisdiction for the appointment of a successor escrow agent, and the duties and responsibilities of the Escrow Agent will cease immediately upon such appointment.

------

(6) On any new appointment under this section, the successor Escrow Agent will be vested with the same powers, rights, duties and obligations as if it had been originally named herein as Escrow Agent, without any further assurance, conveyance, act or deed. The predecessor Escrow Agent, upon receipt of payment for any outstanding account for its services and expenses then unpaid, will transfer, deliver and pay over to the successor Escrow Agent, who will be entitled to receive, all securities, records or other property on deposit with the predecessor Escrow Agent in relation to this Agreement and the predecessor Escrow Agent will thereupon be discharged as Escrow Agent.

(7) If any changes are made to Part 8 of this Agreement as a result of the appointment of the successor Escrow Agent, those changes must not be inconsistent with the Policy and the terms of this Agreement and the Issuer to this Agreement will file a copy of the new Agreement with the securities regulators with jurisdiction over this Agreement and the escrow securities.

**PART 8 OTHER CONTRACTUAL ARRANGEMENTS** 

**8.1 Escrow Agent Not a Trustee**

The Escrow Agent accepts duties and responsibilities under this Agreement, and the escrow securities and any share certificates or other evidence of these securities, solely as a custodian, bailee and agent. No trust is intended to be, or is or will be, created hereby and the Escrow Agent shall owe no duties hereunder as a trustee.

**8.2 Escrow Agent Not Responsible for Genuineness**

The Escrow Agent will not be responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of any escrow security deposited with it.

**8.3 Escrow Agent Not Responsible for Furnished Information**

The Escrow Agent will have no responsibility for seeking, obtaining, compiling, preparing or determining the accuracy of any information or document, including the representative capacity in which a party purports to act, that the Escrow Agent receives as a condition to a release from escrow or a transfer of escrow securities within escrow under this Agreement.

**8.4 Escrow Agent Not Responsible after Release**

The Escrow Agent will have no responsibility for escrow securities that it has released to a Securityholder or at a Securityholder's direction according to this Agreement.

**8.5 Indemnification of Escrow Agent**

The Issuer and each Securityholder hereby jointly and severally agree to indemnify and hold harmless the Escrow Agent, its affiliates, and their current and former directors, officers, employees and agents from and against any and all claims, demands, losses, penalties, costs, expenses, fees and liabilities, including, without limitation, legal fees and expenses, directly or indirectly arising out of, in connection with, or in respect of, this Agreement, except where same result directly and principally from gross negligence, willful misconduct or bad faith on the part of the Escrow Agent. This indemnity survives the release of the escrow securities, the resignation or termination of the Escrow Agent and the termination of this Agreement.

------

**8.6 Additional Provisions**

(1) The Escrow Agent will be protected in acting and relying reasonably upon any notice, direction, instruction, order, certificate, confirmation, request, waiver, consent, receipt, statutory declaration or other paper or document (collectively referred to as "Documents") furnished to it and purportedly signed by any officer or person required to or entitled to execute and deliver to the Escrow Agent any such Document in connection with this Agreement, not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth or accuracy of any information therein contained, which it in good faith believes to be genuine.

(2) The Escrow Agent will not be bound by any notice of a claim or demand with respect thereto, or any waiver, modification, amendment, termination or rescission of this Agreement unless received by it in writing, and signed by the other Parties and approved by the securities regulators with jurisdiction as set out in section 10.6 of this Agreement, and, if the duties or indemnification of the Escrow Agent in this Agreement are affected, unless it has given its prior written consent.

(3) The Escrow Agent may consult with or retain such legal counsel and advisors as it may reasonably require for the purpose of discharging its duties or determining its rights under this Agreement and may rely and act upon the advice of such counsel or advisor. The Escrow Agent will give written notice to the Issuer as soon as practicable that it has retained legal counsel or other advisors. The Issuer will pay or reimburse the Escrow Agent for any reasonable fees, expenses and disbursements of such counsel or advisors.

(4) In the event of any disagreement arising under the terms of this Agreement, the Escrow Agent will be entitled, at its option, to refuse to comply with any and all demands whatsoever until the dispute is settled either by a written agreement among the Parties or by a court of competent jurisdiction.

(5) The Escrow Agent will have no duties or responsibilities except as expressly provided in this Agreement and will have no duty or responsibility under the Policy or arising under any other agreement, including any agreement referred to in this Agreement, to which the Escrow Agent is not a party.

(6) The Escrow Agent will have the right not to act and will not be liable for refusing to act unless it has received clear and reasonable documentation that complies with the terms of this Agreement. Such documentation must not require the exercise of any discretion or independent judgment.

(7) The Escrow Agent is authorized to cancel any share certificate delivered to it and hold such Securityholder's escrow securities in electronic, or uncertificated form only, pending release of such securities from escrow.

(8) The Escrow Agent will have no responsibility with respect to any escrow securities in respect of which no share certificate or other evidence or electronic or uncertificated form of these securities has been delivered to it, or otherwise received by it.

**8.7 Limitation of Liability of Escrow Agent**

The Escrow Agent will not be liable to any of the Parties hereunder for any action taken or omitted to be taken by it under or in connection with this Agreement, except for losses directly, principally and immediately caused by its bad faith, willful misconduct or gross negligence. Under no circumstances will the Escrow Agent be liable for any special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages hereunder, including any loss of profits, whether foreseeable or unforeseeable. Notwithstanding the foregoing or any other provision of this Agreement, in no event will the collective liability of the Escrow Agent under or in connection with this Agreement to any one or more Parties, except for losses directly caused by its bad faith or willful misconduct, exceed the amount of its annual fees under this Agreement or the amount of three thousand dollars ($3,000.00), whichever amount shall be greater.

------

**8.8 Remuneration of Escrow Agent**

The Issuer will pay the Escrow Agent reasonable remuneration for its services under this Agreement, which fees are subject to revision from time to time on 30 days' written notice. The Issuer will reimburse the Escrow Agent for its expenses and disbursements. Any amount due under this section and unpaid 30 days after request for such payment, will bear interest from the expiration of such period at a rate per annum equal to the then current rate charged by the Escrow Agent, payable on demand.

In the event the Issuer or the Securityholders fail to pay the Escrow Agent any amounts owing to the Escrow Agent hereunder, the Escrow Agent shall have the right not to act (including the right not to release any additional securities from escrow) and will not be liable for refusing to act until it has been fully paid all amounts owing to it hereunder. Further, in the event the Issuer fails to pay the Escrow Agent its reasonable remuneration for its services hereunder, the Escrow Agent shall be entitled to charge the Securityholders for any further release of escrowed securities and shall have the right not to act (including the right not to release any additional securities from escrow) until the Securityholders have paid such amounts to the Escrow Agent.

In the event the Issuer or the Securityholders have failed to pay the amounts owing the Escrow Agent hereunder, the Escrow Agent shall not be liable for any loss caused by a delay in the release of the escrowed securities.

**8.9 Notice to Escrow Agent**

The Issuer shall forthwith provide a copy of the Exchange Bulletin, confirmation of listing and posting for trading of the subject escrowed shares or such other relevant document to the Escrow Agent as it shall require in order to make the required releases. No duty shall rest with the Escrow Agent to obtain this information independently nor shall it be held liable for any loss, claim, suit or action, howsoever caused by any delay in providing this information to it.

**PART 9 NOTICES**

**9.1 Notice to Escrow Agent**

Documents will be considered to have been delivered to the Escrow Agent on the next business day following the date of transmission, if delivered by fax, the date of delivery, if delivered by hand during normal business hours or by prepaid courier, or 5 business days after the date of mailing, if delivered by mail, to the following:

TSX Trust Company

VP Client Management<br>301-100 Adelaide Street West<br>Toronto, ON M5H 4H1

Telephone Number: +1 (888) 873-8392

E-mail address: TMXEClientManagement@tmx.com

**9.2 Notice to Issuer**

Documents will be considered to have been delivered to the Issuer on the next business day following the date of transmission, if delivered by fax, the date of delivery, if delivered by hand during normal business hours or by prepaid courier, or 5 business days after the date of mailing, if delivered by mail, to the following:

------

Versamet Royalties Corporation

Attn: *[Redacted - Personal Information]*<br> *[Redacted - Personal Information]*

Telephone Number: *[Redacted - Personal Information]*

E-mail address: *[Redacted - Personal Information]*

**9.3 Deliveries to Securityholders**

Documents will be considered to have been delivered to a Securityholder on the date of delivery, if delivered by hand or by prepaid courier, or 5 business days after the date of mailing, if delivered by mail, to the address on the Issuer's share register.

Any share certificates or other evidence of a Securityholder's escrow securities will be sent to the Securityholder's address on the Issuer's share register unless the Securityholder has advised the Escrow Agent in writing otherwise at least ten business days before the escrow securities are released from escrow. The Issuer will provide the Escrow Agent with each Securityholder's address as listed on the Issuer's share register.

**9.4 Change of Address**

(1) The Escrow Agent may change its address for delivery by delivering notice of the change of address to the Issuer and to each Securityholder.

(2) The Issuer may change its address for delivery by delivering notice of the change of address to the Escrow Agent and to each Securityholder.

(3) A Securityholder may change that Securityholder's address for delivery by delivering notice of the change of address to the Issuer and to the Escrow Agent.

**9.5 Postal Interruption**

A Party to this Agreement will not mail a document it is required to mail under this Agreement if the Party is aware of an actual or impending disruption of postal service.

**PART 10 GENERAL**

**10.1 Interpretation - "holding securities"**

When this Agreement refers to securities that a Securityholder "holds", it means that the Securityholder has direct or indirect beneficial ownership of, or control or direction over, the securities.

**10.2 Further Assurances**

The Parties will execute and deliver any further documents and perform any further acts reasonably requested by any of the Parties to this Agreement which are necessary to carry out the intent of this Agreement.

**10.3 Time**

Time is of the essence of this Agreement.

------

**10.4 Incomplete IPO**

If the Issuer does not complete its IPO and has become a reporting issuer in one or more jurisdictions because it has obtained a receipt for its IPO prospectus, this Agreement will remain in effect until the securities regulators in those jurisdictions order that the Issuer has ceased to be a reporting issuer.

**10.5 Governing Laws**

The laws of the Province of British Columbia (the "Principal Regulator") and the applicable laws of Canada will govern this Agreement.

**10.6 Jurisdiction**

The securities regulator in each jurisdiction where the Issuer files its IPO prospectus has jurisdiction over this Agreement and the escrow securities.

**10.7 Consent of Securities Regulators to Amendment**

Except for amendments made under Part 3, the securities regulators with jurisdiction must approve any amendment to this Agreement and will apply mutual reliance principles in reviewing any amendments that are filed with them. Therefore, the consent of the Principal Regulator will evidence the consent of all securities regulators with jurisdiction.

**10.8 Counterparts**

The Parties may execute this Agreement by fax or other electronic means and in counterparts, each of which will be considered an original and all of which will be one agreement.

**10.9 Singular and Plural**

Wherever a singular expression is used in this Agreement, that expression is considered as including the plural or the body corporate where required by the context.

**10.10 Language**

This Agreement has been drawn up in the English language at the request of all Parties. Cette convention a été rédigé en anglais à la demande de toutes les Parties.

**10.11 Benefit and Binding Effect**

This Agreement will benefit and bind the Parties and their heirs, executors, administrators, successors and permitted assigns and all persons claiming through them as if they had been a Party to this Agreement.

**10.12 Entire Agreement**

This is the entire agreement among the Parties concerning the subject matter set out in this Agreement and supersedes any and all prior understandings and agreements.

**10.13 Successor to Escrow Agent**

Any corporation with which the Escrow Agent may be amalgamated, merged or consolidated, or any corporation succeeding to the business of the Escrow Agent will be the successor of the Escrow Agent under this Agreement without any further act on its part or on the part or any of the Parties, provided that the successor is recognized as a transfer agent by the Canadian exchange the Issuer is listed on (or if the Issuer is not listed on a Canadian exchange, by any Canadian exchange) and notice is given to the securities regulators with jurisdiction.

------

The Parties have executed and delivered this Agreement as of the date set out above.

**TSX TRUST COMPANY**

---

| |
|:---|
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| **VERSAMET ROYALTIES CORPORATION** |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| **B2GOLD CORP.** |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| **SANDSTORM GOLD LTD.** |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| **EQUINOX GOLD CORP.** |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |

---

------

---

| |
|:---|
| **CANACCORD GENUITY CORP.** |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| **FIDELITY CLEARING CANADA ULC** |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ signed *[Redacted - Personal Information]* |
| Authorized signatory |
| /s/ Gregory Smith |
| **GREGORY SMITH** |
| /s/ Marcel De Groot |
| **MARCEL DE GROOT** |
| /s/ Daniel O'Flaherty |
| **DANIEL O'FLAHERTY** |
| /s/ Craig Rollins |
| **CRAIG ROLLINS** |
| /s/ Dorry Smith |
| **DORRY SMITH** |
| /s/ January Vandale |
| **JANUARY VANDALE** |
| /s/ Sarah Osipov |
| **SARAH OSIPOV** |

---

------

**Schedule "A" to Escrow Agreement**

<u>**Securityholder**</u>

**Name: B2GOLD CORP.**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)*** |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***152302627*** |  |

---

<u>**Securityholder**</u>

**Name: SANDSTORM GOLD LTD.**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)*** |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***81533353*** |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*** **ITF SANDSTORM GOLD LTD.**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)*** |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***36739373*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |

---

<u>**Securityholder**</u>

**Name: EQUINOX GOLD CORP.**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***58089573*** |  |

---

------

<u>**Securityholder**</u>

**Name: GREGORY SMITH**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***5200049*** |  |
| &nbsp;&nbsp;***Options*** | &nbsp;&nbsp;***1400000*** |  |
| &nbsp;&nbsp;***Restricted Share Units*** | &nbsp;&nbsp;***93750*** |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*****TR GREGORY SMITH,** ***[Redacted - Personal Information]***

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***714285*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |

---

<u>**Securityholder**</u>

**Name: MARCEL DE GROOT**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***8037642*** |  |
| &nbsp;&nbsp;***Options*** | &nbsp;&nbsp;***950000*** |  |
| &nbsp;&nbsp;***Restricted Share Units*** | &nbsp;&nbsp;***93750*** |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*****ITF MARCEL DE GROOT** ***[Redacted - Personal Information]***

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***202929*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |

---

------

<u>**Securityholder**</u>

**Name: CRAIG ROLLINS**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***9535049*** |  |
| &nbsp;&nbsp;***Options*** | &nbsp;&nbsp;***1337028*** |  |
| &nbsp;&nbsp;***Restricted Share Units*** | &nbsp;&nbsp;***620982*** |  |

---

<u>**Securityholder**</u>

**Name: DORRY BRANCA SMITH**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***5000000*** |  |

---

<u>**Securityholder**</u>

**Name: JANUARY VANDALE**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***3983373*** |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*****ITF JANUARY VANDALE** ***[Redacted - Personal Information]***

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)*** |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***1414300*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |

---

------

<u>**Securityholder**</u>

**Name: DANIEL O'FLAHERTY**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** |  |  |
| &nbsp;&nbsp;***Options*** | &nbsp;&nbsp;***1463817*** |  |
| &nbsp;&nbsp;***Restricted Share Units*** | &nbsp;&nbsp;***1000000*** |  |
| &nbsp;&nbsp;***PRSU's*** | &nbsp;&nbsp;***2000000*** |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*****ITF VANDELAY INDUSTRIES SEZC ACCOUNT #*****[Redacted - Personal Information]***

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***7646399*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |
| &nbsp;&nbsp;***PRSU's*** |  |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*** **ITF VANDELAY INDUSTRIES SEZC** ***[Redacted - Personal Information]***

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***1988650*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |
| &nbsp;&nbsp;***PRSU's*** |  |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*** **TR VANDELAY INDUSTRIES SEZC,** ***[Redacted - Personal Information]***

**Securities:**

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***1100000*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |
| &nbsp;&nbsp;***PRSU's*** |  |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]*** **TR SARAH OSIPOV**

**Securities:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Number*** | &nbsp;&nbsp;***Certificate(s) (if applicable)***  |
| &nbsp;&nbsp;***Common Shares*** | &nbsp;&nbsp;***5000000*** |  |
| &nbsp;&nbsp;***Options*** |  |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |  |

---

<u>**Securityholder**</u>

**Name:** ***[Redacted - Personal Information]***

**Securities:**

---

| | |
|:---|:---|
| &nbsp;&nbsp;***Class or description*** | &nbsp;&nbsp;***Certificate(s) (if applicable)*** |
| &nbsp;&nbsp;***Common Shares***&nbsp;&nbsp;***1562500***<sup>***(1)***</sup> |  |
| &nbsp;&nbsp;***Options*** |  |
| &nbsp;&nbsp;***Restricted Share Units*** |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Global Certificate - Beneficial ownership consists of: (i) 607,100 shares held by Marcel de Groot; (ii) 607,100 shares held by January Vandale; (iii) 285,800 shares held by Vandelay Industries Sezc; and (iv) 62,500 shares held by Sarah Osipov.

------

**Schedule "B" to Escrow Agreement**

**Acknowledgment and Agreement to be Bound**

I acknowledge that the securities listed in the attached Schedule "A" (the "escrow securities") have been or will be transferred to me and that the escrow securities are subject to an Escrow Agreement dated __________________________ (the "Escrow Agreement").

For other good and valuable consideration, I agree to be bound by the Escrow Agreement in respect of the escrow securities, as if I were an original signatory to the Escrow Agreement.

Dated at ____________________ on ______________.

Where the transferee is an individual:

**[Transferee]**

Where the transferee is not an individual:

---

| |
|:---|
| **[Transferee]** |
| Authorized signatory |
| Authorized signatory |

---

------

## Exhibit 4.8

------

**SANDBOX ROYALTIES CORP.**

**OMNIBUS EQUITY INCENTIVE PLAN**

**SEPTEMBER 1, 2022**

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [**ARTICLE 1 INTERPRETATION**](#page_4) | [**1**](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.1 Definitions](#page_4) | [1](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.2 Interpretation](#page_11) | [8](#page_11) |
| [**ARTICLE 2 PURPOSE AND ADMINISTRATION OF THIS PLAN; GRANTING OF AWARDS**](#page_12) | [**9**](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.1 Purpose of this Plan](#page_12) | [9](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.2 Implementation and Administration of this Plan](#page_12) | [9](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.3 Participation in this Plan](#page_13) | [10](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.4 Shares Subject to this Plan](#page_14) | [11](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.5 Participation Limits](#page_15) | [12](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.6 Granting of Awards](#page_16) | [13](#page_16) |
| [**ARTICLE 3 OPTIONS**](#page_16) | [**13**](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.1 Nature of Options](#page_16) | [13](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.2 Option Awards](#page_16) | [13](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.3 Option Agreements](#page_17) | [14](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.4 Option Price](#page_17) | [14](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.5 Option Term](#page_17) | [14](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.6 Exercise of Options](#page_17) | [14](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.7 Method of Exercise and Payment of Purchase Price](#page_18) | [15](#page_18) |
| [**ARTICLE 4 SHARE APPRECIATION RIGHTS**](#page_19) | [**16**](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.1 Nature of SARs](#page_19) | [16](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.2 SAR Awards](#page_19) | [16](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.3 SAR Award Agreements](#page_20) | [17](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.4 SAR Term](#page_20) | [17](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.5 Settlement of SARs](#page_21) | [18](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.6 Method of Settlement](#page_21) | [18](#page_21) |
| [**ARTICLE 5 RESTRICTED AND PERFORMANCE SHARE UNITS**](#page_22) | [**19**](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.1 Nature of Share Units](#page_22) | [19](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.2 Share Unit Awards](#page_23) | [20](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.3 Share Unit Agreements](#page_23) | [20](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.4 Vesting of Share Units](#page_23) | [20](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.5 Blackout Periods](#page_24) | [21](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.6 Redemption / Settlement of Share Units](#page_24) | [21](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.7 Determination of Amounts](#page_26) | [23](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.8 Award of Dividend Equivalents](#page_27) | [24](#page_27) |
| [**ARTICLE 6 DEFERRED SHARE UNITS**](#page_27) | [**24**](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.1 Nature of DSUs](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.2 Market Fluctuation](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.3 DSU Awards](#page_28) | [25](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.4 DSU Agreements](#page_28) | [25](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.5 Redemption / Settlement of DSUs](#page_28) | [25](#page_28) |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.6 Determination of Amounts](#page_30) | [27](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.7 Award of Dividend Equivalents](#page_31) | [28](#page_31) |
| [**ARTICLE 7 GENERAL CONDITIONS**](#page_31) | [**28**](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.1 General Conditions Applicable to Awards](#page_31) | [28](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.2 General Conditions Applicable to Options](#page_33) | [30](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.3 General Conditions Applicable to Awards other than Options](#page_34) | [31](#page_34) |
| [**ARTICLE 8 ADJUSTMENTS AND AMENDMENTS**](#page_35) | [**32**](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.1 Adjustment to Shares Subject to Outstanding Awards](#page_35) | [32](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.2 Change of Control](#page_35) | [32](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.3 Initial Approval, Amendment or Discontinuance of this Plan](#page_36) | [33](#page_36) |
| [**ARTICLE 9 MISCELLANEOUS**](#page_38) | [**35**](#page_38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.1 Use of an Administrative Agent](#page_38) | [35](#page_38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.2 Tax Withholding](#page_38) | [35](#page_38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.3 Clawback](#page_38) | [35](#page_38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.4 Securities Law Compliance](#page_39) | [36](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.5 Reorganization of the Corporation](#page_40) | [37](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.6 Quotation of Shares](#page_40) | [37](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.7 Governing Laws](#page_40) | [37](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.8 Severability](#page_41) | [38](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.9 Code Section 409A](#page_41) | [38](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.10 Effective Date of this Plan](#page_42) | [39](#page_42) |

---

------

**SANDBOX ROYALTIES CORP.**

**OMNIBUS EQUITY INCENTIVE PLAN**

Sandbox Royalties Corp. (the "**Corporation**") hereby establishes this Plan (as defined below) for certain Employees, Directors and Consultants (in each case, as defined in this Plan).

**ARTICLE 1**<br>**INTERPRETATION**

**1.1 Definitions**

Where used in this Plan, any amendments to this Plan, or any communication required or permitted to be given under this Plan, the following terms will have the following meanings unless the context otherwise requires:

"**Account**" means a notional account maintained for each Participant on the books of the Corporation which will be credited with Awards in accordance with the terms of this Plan;

"**Affiliate**" has the meaning given to such term in Section 1.2 of Policy 1.1 - *Interpretation* of the Corporate Finance Manual of the TSXV;

"**Applicable Law**" means any applicable law, including: (a) the *Business Corporations Act* (British Columbia), (b) Applicable Securities Laws, (c) the ITA and the ITA Regulations, (d) the Code, and (e) any other applicable corporate, securities, tax or other laws, statutes, rules, requirements or regulations, whether federal, provincial, state, local or foreign, and, for the purposes of this definition, also includes the Exchange Rules;

"**Applicable Securities Laws**" means (a) the *Securities Act* (British Columbia) and the equivalent thereof in each province and territory of Canada in which the Corporation is a "reporting issuer" or the equivalent thereof, together with the regulations, rules and blanket orders of the securities commission or similar regulatory authority in each of such jurisdictions, and (b) if a relevant Participant is a U.S. Person, the U.S. Securities Act, the U.S. Exchange Act and any rules or regulations thereunder and any applicable state securities laws;

"**Applicable Withholding Taxes**" means such amount as may be necessary for the Corporation or any Subsidiary to deduct or withhold from any Award granted, from any payment due or transfer made under any Award or under this Plan, or from any compensation or other amount owing to a Participant, so as to ensure the Corporation and any Subsidiary will be able to comply with the applicable provisions of any Applicable Law relating to the withholding of tax or other required deductions;

"**Appreciation Value**" means, in respect of any SAR, an amount equal to the Market Price on the date the SAR is settled less the Base Value;

"**Award**" means any Option, Share Unit, DSU or SAR granted pursuant to, or otherwise governed by, this Plan;

"**Award Agreement**" means an agreement evidencing the grant to a Participant of an Award, including an Option Agreement, a Share Unit Agreement, a DSU Agreement, a SAR Agreement, an Employment Agreement or a Consulting Agreement;

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"**Base Value**" is defined in Section 4.2(3);

"**Beneficiary**" means any Person designated by a Participant by written notice to the Corporation to receive any amount, securities or property payable under this Plan in the event of such Participant's death or, failing any such effective designation, such Participant's estate, provided that a "Beneficiary" in respect of DSUs granted to a Canadian Employee Participant under this Plan will be limited to an individual who is a dependent or relation of such Participant or the legal representative of such Participant, and the written notice contemplated above must be filed with the Corporation within one year of such Participant's death;

"**Blackout Expiry Date**" means the date on which a Blackout Period expires, which shall be when the undisclosed material information that led to the imposition of the Blackout Period has been generally disclosed;

"**Blackout Period**" means a period during which the Corporation prohibits Participants from trading securities of the Corporation, which includes exercising, redeeming or settling Awards, that is formally imposed by the Corporation pursuant to its internal trading policies as a result of the bona fide existence of undisclosed material information (which, for greater certainty, does not include a period during which a Participant or the Corporation is subject to a cease trade order or similar order under Applicable Securities Laws in respect of the Corporation's securities);

"**Board**" means the board of directors of the Corporation as constituted from time to time;

"**Business Day**" means a day, other than a Saturday, Sunday or statutory holiday, when Canadian chartered banks are generally open for business in Vancouver, British Columbia for the transaction of banking business;

"**Canadian Employee Participant**" means a Canadian Participant who is granted an Award in respect of, in the course of, or by virtue of such Participant's "office or employment" within the meaning of the ITA;

"**Canadian Participant**" means a Participant who is a resident of Canada and/or who is granted an Award in respect of, or by virtue of, employment services rendered in Canada, provided that, for greater certainty, a Participant may be both a Canadian Participant and a U.S. Taxpayer;

"**Cash-or-Share-Settled Share Unit**" is defined in Section 5.1.

"**Cause**" is defined in Section 7.2(1);

"**Change of Control**" means, unless the Board determines otherwise, the happening, in a single transaction or in a series of related transactions, of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any transaction (other than a transaction described in paragraph (b) below) pursuant to which any Person or group of Persons acting jointly or in concert acquires direct or indirect beneficial ownership of securities of the Corporation representing 50% or more of the aggregate voting power of all of the Corporation's then issued and outstanding securities entitled to vote in the election of members of the Board, other than any such acquisition that occurs upon the exercise or settlement of options or other securities granted by the Corporation under any of the Corporation's equity incentive plans,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there is consummated an arrangement, amalgamation, merger, consolidation, business combination or similar transaction involving (directly or indirectly) the Corporation and, immediately after the consummation of such transaction, the Shareholders immediately prior to such transaction do not beneficially own, directly or indirectly, either (i) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving or resulting entity in such transaction or (ii) more than 50% of the combined outstanding voting power of the parent of the surviving or resulting entity in such transaction, in each case in substantially the same proportions as their beneficial ownership of the outstanding voting securities of the Corporation immediately prior to such transaction,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale, lease, exchange, license or other disposition of assets, rights or properties of the Corporation or any Subsidiary which have an aggregate book value greater than 50% of the book value of the assets, rights and properties of the Corporation and its Subsidiaries on a consolidated basis to any other Person, other than a disposition to a wholly-owned Subsidiary in the course of a reorganization of the assets of the Corporation and/or its wholly-owned Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the passing of a resolution by the Board or the Shareholders to substantially liquidate the assets of the Corporation or wind up the Corporation's business or significantly rearrange its affairs or the commencement of proceedings for such a liquidation, winding-up or re-arrangement (except where such re-arrangement is part of a *bona fide* reorganization of the Corporation in circumstances where the business of the Corporation is continued and the shareholdings remain substantially the same following the re-arrangement), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) individuals who, immediately prior to a particular time, are members of the Board (the "**Incumbent Board**") cease for any reason to constitute at least a majority of the members of the Board immediately following such time, provided that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member will, for purposes of this Plan, be considered as a member of the Incumbent Board;

"**Code**" means the United States *Internal Revenue Code of 1986*, as amended, and the Treasury Regulations promulgated thereunder;

"**Code Section 409A**" means Section 409A of the Code and applicable regulations and guidance issued thereunder;

"**Consultant**" means an individual, other than an Employee or Director and including a Management Company Employee, or company that: (a) is engaged to provide on an ongoing *bona fide* basis, consulting, technical, management or other services to the Corporation or to a Subsidiary, other than services provided in relation to a distribution, (b) provides the services under a written contract between the Corporation or a Subsidiary and the individual or company, as the case may be, and (c) in the reasonable opinion of the Corporation, spends or will spend a significant amount of time and attention on the affairs and business of the Corporation or a Subsidiary;

"**Consulting Agreement**" means any written consulting agreement between the Corporation or a Subsidiary and a Participant who is a Consultant;

------

"**Designated Broker**" means a broker who is independent of, and deals at arm's length with, the Corporation and its Subsidiaries and is designated by the Corporation;

"**Director**" means a member of the Board or the board of directors of a Subsidiary;

"**Disinterested Shareholder Approval**" means approval by a majority of the votes cast with respect to such approval by the Shareholders at a duly constituted Shareholders' meeting, excluding votes required to be excluded in respect of the subject matter of such approval pursuant to Applicable Laws;

"**Dividend Equivalent**" means additional Share Units or DSUs credited to a Participant's Account as a dividend equivalent pursuant to Section 5.8 or Section 6.7;

"**DSU**" means a deferred share unit, which is a notional and conditional right awarded to a Participant under this Plan to receive a payment as provided in Section 6.3 and subject to the terms and conditions of this Plan;

"**DSU Agreement**" means a written agreement between the Corporation and a Participant evidencing the grant of DSUs and the terms and conditions of such grant, substantially in the form attached as Exhibit "D";

"**DSU Redemption Date**" means, with respect to a particular DSU, the date on which such DSU is redeemed in accordance with the provisions of this Plan;

"**Eligible Participant**" means: (a) in respect of a grant of Options, any Director, Employee or Consultant, (b) in respect of a grant of Share Units or SARs, any Director, Employee or Consultant other than an Investor Relations Service Provider, and (c) in respect of a grant of DSUs, any Non-Employee Director other than an Investor Relations Service Provider;

"**Employee**" means an employee, within the meaning of the ITA, of the Corporation or a Subsidiary, and includes an Officer;

"**Employer**" means either the Corporation or a Subsidiary and means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to a Participant who is an Employee, the corporation that employs the Participant or that employed the Participant immediately prior to the termination of his employment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to a Participant who is a Consultant, the corporation to whom the Participant provides or provided consulting services, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to a Participant who is a Director, the corporation on whose board of directors the Participant serves or served at the time an Award was granted to the Participant;

"**Employment Agreement**" means, with respect to any Participant, any written employment agreement between the Corporation or a Subsidiary and such Participant;

------

"**Exchange**" means the TSXV or, if the Shares are not listed and posted for trading on the TSXV at a particular date, such other stock exchange or trading platform upon which the Shares are listed and posted for trading and which has been designated by the Board;

"**Exchange Rules**" means the rules and/or policies of any Exchange or automated quotation system on which the Shares are listed, quoted or traded at an applicable time;

"**Exercise Notice**" means a notice in writing signed by a Participant and stating the Participant's intention to exercise an Option;

"**Expiry Date**" means the date by which an Award must be exercised, settled or redeemed, as the case may be;

"**Grant Date**" means, in respect of an Award, the date on which such Award is granted, provided that if the grant of an Award is approved during a Blackout Period, the Grant Date in respect of such Award will be deemed to be the tenth trading day on the Exchange immediately following the Blackout Expiry Date;

"**Insider**" has the meaning given to such term in Section 1.2 of Policy 1.1 - *Interpretation* of the Corporate Finance Manual of the TSXV;

"**Investor Relations Activities**" has the meaning given to such term in Section 1.2 of Policy 1.1 - *Interpretation* of the Corporate Finance Manual of the TSXV;

"**Investor Relations Service Provider**" means any Consultant that performs Investor Relations Activities and any Director, Employee or Management Company Employee whose role and duties primarily consist of Investor Relations Activities;

"**IRS**" means the United States Internal Revenue Service;

"**Issued Shares**" means the issued and outstanding Shares;

"**ITA**" means the *Income Tax Act* (Canada);

"**ITA Regulations**" means the regulations promulgated under the ITA;

"**Management Company Employee**" means an individual employed by a Person providing management services to the Corporation, which services are required for the ongoing successful operation of the business enterprise of the Corporation;

"**Market Price**" means: (a) if the Shares are then listed on the TSXV, the closing price per Share on the TSXV on the last Trading Day prior to the particular date as of which the Market Price is required to be determined, (b) if the Shares are not listed on the TSXV, the closing price per Share on any other Exchange on which the Shares are then listed (and, if more than one, will be the Exchange on which the majority of trading in the Shares occurs) on the last Trading Day prior to such date, or (c) if the Shares are not listed on any Exchange as of such date, such price as is determined solely by the Board, acting reasonably and in good faith, and such determination will be conclusive and binding on all Persons;

"**Non-Employee Director**" means a member of the Board who is not otherwise an Employee;

------

"**Officer**" means an officer of the Corporation;

"**Option**" means a stock option, which is a right granted to a Participant under this Plan, entitling such Participant to acquire a Share as provided in Article 3 and subject to the terms and conditions of this Plan;

"**Option Agreement**" means a written agreement between the Corporation and a Participant evidencing a grant of Options and the terms and conditions of such grant, substantially in the form attached as Exhibit "A";

"**Option Price**" is defined in Section 3.2(1);

"**Participant**" means any Eligible Participant that is granted one or more Awards under this Plan;

"**Performance Criteria**" means specified criteria, other than the mere continuation of employment or the mere passage of time, the satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Option, Share Unit or SAR;

"**Performance Period**" means the period determined by the Board at the time any Option, Share Unit or SAR is granted or at any time after during which any Performance Criteria and any other vesting conditions specified by the Board with respect to such Option, Share Unit or SAR are to be measured;

"**Performance Share Unit**" is defined in Section 5.1;

"**Person**" means an individual, corporation, company, cooperative, partnership, trust, unincorporated association, entity with juridical personality or governmental authority or body, and pronouns which refer to a Person have a similarly extended meaning;

"**Plan**" means this Omnibus Equity Incentive Plan, including the attached exhibits, as the same may be amended or amended and restated from time to time;

"**Redemption Date**" is defined in Section 5.6(1), as modified by Section 5.6(4);

"**Restricted Share Unit**" is defined in Section 5.1;

"**Restriction Period**" means, with respect to a particular grant of Share Units, the period between the Grant Date of such Share Units and the latest Vesting Date in respect of any portion of such Share Units;

"**SAR**" means a share appreciation right, which is a right awarded under this Plan to receive a cash payment or its equivalent in fully paid Shares (or a combination) equal to the Appreciation Value of such right, at the time, in the manner, and subject to the terms and conditions of this Plan;

"**SAR Agreement**" means a written agreement between the Corporation and a Participant evidencing the grant of SARs and the terms and conditions of such grant, substantially in the form attached as Exhibit B;

"**SEC**" means the United States Securities and Exchange Commission;

"**Separation from Service**" has the meaning ascribed to it under Code Section 409A;

"**Share**" means a common share in the capital of the Corporation;

------

"**Share Compensation Arrangement**" means any stock option plan, employee stock purchase plan, long-term incentive plan or other compensation or incentive mechanism involving the issuance or potential issuance of Shares from treasury, including a share purchase from treasury by a full-time Employee, Director, Insider or Consultant which is facilitated by the Corporation or a Subsidiary;

"**Share-Settled Share Unit**" is defined in Section 5.6(1);

"**Share Unit**" means a right, including a Restricted Share Unit or a Performance Share Unit, awarded to a Participant under this Plan to receive a payment as provided in Article 5 and subject to the terms and conditions of this Plan, and includes Cash-or-Share Settled Share Units and Share-Settled Share Units;

"**Share Unit Agreement**" means a written agreement between the Corporation and a Participant evidencing the grant of Share Units and the terms and conditions of such grant, substantially in the form attached as Exhibit "C";

"**Share-Settled Share Unit Deferred Settlement Election**" is defined in Section 5.6(4), and shall be substantially in the form attached as Exhibit "E";

"**Share Unit Outside Expiry Date**" is defined in Section 5.6(5)(d);

"**Shareholder**" means a shareholder of the Corporation;

"**Subsidiary**" means a Person that is controlled, directly or indirectly, by the Corporation; provided that, in all cases, in applying the provisions of this Plan to Options or DSUs granted to a Canadian Employee Participant, a Person will only constitute a "Subsidiary" if such Person is a corporation controlled, directly or indirectly, by the Corporation;

"**Termination Date**" means (a) in the event of a Participant's resignation, the date on which such Participant ceases to be a Director, Employee or Consultant, (b) in the event of the termination of a Participant's employment, position as a Director or engagement as Consultant, the effective date of the termination as specified in the notice of termination provided to such Participant by the Corporation or a Subsidiary, as the case may be, and (c) in the event of a Participant's death, the date of death; provided that, in all cases, in applying the provisions of this Plan to DSUs granted to a Canadian Employee Participant, the "Termination Date" will be the latest date on which such Participant is neither a Director nor Employee nor a director or employee of any Affiliate;

"**Termination of Service**" means that a Participant has ceased to be an Eligible Participant;

"**Trading Day**" means any day on which the Exchange is open for trading;

"**TSXV**" means the TSX Venture Exchange;

"**United States**" has the meaning ascribed thereto under Regulation S under the U.S. Securities Act;

"**U.S. Exchange Act**" means that United States *Securities Exchange Act of 1934*, as amended;

"**U.S. Participant**" means a Participant who is a resident or citizen of the United States for the purposes of the Code and/or who is subject to taxation under the Code in respect of any Award awarded or granted under this Plan;

------

"**U.S. Person**" has the meaning ascribed thereto under Regulation S under the U.S. Securities Act;

"**U.S. Securities Act**" means the United States *Securities Act of 1933*, as amended;

"**U.S. Share Unit Outside Expiry Date**" is defined in Section 5.1;

"**U.S. Taxpayer**" means a Participant who is a United States citizen, a United States permanent resident or other Person who is subject to taxation on their income or in respect of Awards under the Code, provided that, for greater certainty, a Participant may be both a Canadian Participant and a U.S. Taxpayer;

"**Vesting Date**" is defined in Section 5.4; and

"**VWAP**" means the volume weighted average trading price of the Shares on the Exchange, calculated by dividing the total value by the total volume of the Shares traded for the five trading days immediately preceding the exercise of the subject Option.

**1.2 Interpretation**

Unless otherwise provided in this Plan, in this Plan:

(a) whenever a provision provides that the Board is to exercise discretion or authority in the administration of the terms and conditions of this Plan, the term "discretion" or "authority" means the sole and absolute discretion or authority, as the case may be, of the Board;

(b) the provision of a table of contents, the division of this Plan into Articles, Sections and other subdivisions, and the insertion of headings are for convenient reference only and do not affect the interpretation of this Plan;

(c) words importing the singular include the plural and vice versa and words importing any gender include any other gender;

(d) the words "including", "includes" and "include" and any derivatives of such words mean "including (or includes or include) without limitation" or similar phrases.

(e) the expressions "Article", "Section" or other subdivision followed by a number mean and refer to the specified Article, Section or other subdivision of this Plan;.

(f) and unless otherwise specified in an Award Agreement, all references to dollar amounts are to Canadian currency, and where any amount is required to be converted to or from a currency other than Canadian currency, such conversion will be based on the exchange rate quoted by the Bank of Canada on the applicable date;

(g) any date that falls on a date that is not a Business Day shall be deemed to refer to the next succeeding Business Day;

(h) any reference to this Plan or any Award Agreement includes, and is a reference to, this Plan or such other Award Agreement as the same may have been, or may from time to time be, amended, restated, replaced, supplemented or novated, and includes all schedules and exhibits;

------

(i) any reference to a statute refers to such statute and all rules and regulations made under it, as it or they may have been, or may from time to time be, amended, re-enacted or replaced;

(j) any reference in this Agreement to a Person includes such Person's heirs, administrators, executors, legal representatives, successors and permitted assigns, as the case may be, provided that the legal representatives of a Participant will only include the legal representative of such Participant's estate or will; and

(k) if any action may be taken within, or any right or obligation is to expire at the end of, a period of days under this Plan, then the first day of the period is not counted, but the Expiry Date is counted.

**ARTICLE 2**<br>**PURPOSE AND ADMINISTRATION OF THIS PLAN; GRANTING OF AWARDS**

**2.1 Purpose of this Plan**

The purpose of this Plan is to permit the Corporation to grant Awards to Eligible Participants, subject to certain conditions as set out in this Plan, for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to increase the interest in the Corporation's Eligible Participants, who share responsibility for the business management and growth of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to provide an incentive to Eligible Participants to continue their services to the Corporation or a Subsidiary and to motivate such Eligible Participants whose skills, experience, performance and loyalty to the objectives and interests of the Corporation or a Subsidiary are necessary or essential to its success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to reward Eligible Participants for their performance of services while working for the Corporation or a Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to provide a means through which the Corporation or a Subsidiary may attract and retain Persons to enter its employment or service.

**2.2 Implementation and Administration of this Plan**

(1) This Plan will be administered and interpreted by the Board or, if the Board by resolution so decides, by a committee appointed by the Board. If a committee is appointed for this purpose, all references to the "Board" in this Plan will be deemed references to such committee. Nothing contained in this Plan will prevent the Board from adopting other or additional Share Compensation Arrangements or other compensation arrangements, subject to any required approvals.

(2) Subject to Article 8 and any applicable Exchange Rules, the Board may from time to time, as it may deem expedient or appropriate, adopt, amend or rescind the terms of this Plan, including to address any tax or other requirements of any applicable jurisdiction.

(3) Subject to the provisions of this Plan, the Board is authorized, in its sole discretion, to make such determinations under, and such interpretations of, and take such steps and actions in connection with, the proper administration and operation of this Plan as it may deem necessary or advisable. The interpretation, administration, construction and application of this Plan made by the Board will be final and binding on the Corporation, its Subsidiaries and all Eligible Participants.

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(4) No member of the Board nor any Person acting pursuant to authority delegated by the Board under this Plan will be liable for any action or determination taken or made in good faith in the administration, interpretation, construction or application of this Plan or any Award. Members of the Board, or any Person acting at the direction or on behalf of the Board, will, to the extent permitted by Applicable Law, be fully indemnified and protected by the Corporation with respect to any such action or determination.

(5) This Plan will not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment or issuance of any Shares or any other securities of the Corporation. For greater clarity, the Corporation will not by virtue of this Plan be in any way restricted from declaring and paying stock dividends, repurchasing Shares or varying or amending its share capital or corporate structure.

(6) To the extent not inconsistent with Applicable Law, the Board may authorize one or more Officers to do one or more of the following with respect to Employees who are not Directors or Officers: (a) designate Employees to be recipients of Awards; (b) determine the number of Shares subject to such Awards to be received by such Employees; and (c) cancel or suspend Awards to such Employees, provided that: (i) any resolution of the Board authorizing such Officer(s) must specify the total number of Shares subject to Awards that such Officer(s) may so award; and (ii) the Board may not authorize any Officer to designate themselves as the recipient of an Award.

**2.3 Participation in this Plan**

(1) The Corporation makes no representation or warranty as to the future Market Price or with respect to any income tax matters affecting any Participant resulting from the grant, vesting, exercise or settlement of any Award, any transactions in the Shares or otherwise in respect of participation under this Plan. Neither the Corporation nor any of its Directors, Officers, Employees, Shareholders, agents or representatives will be liable for anything done or omitted to be done by such Person or any other Person with respect to the price, time, quantity or other conditions and circumstances of the grant of Awards, issuance of Shares or settlement of Awards in cash under this Plan, or in any other manner related to this Plan. For greater certainty, no amount will be paid to, or in respect of, a Participant (or any Person with whom the Participant does not deal at arm's length within the meaning of the ITA) under this Plan or pursuant to any other arrangement, and no additional Awards will be granted to such Participant (or any Person with whom the Participant does not deal at arm's length within the meaning of the ITA) to compensate for a downward fluctuation in the price of the Shares or any shares of a related (within the meaning of the ITA) corporation, nor will any other form of benefit be conferred upon, or in respect of, a Participant (or any Person with whom the Participant does not deal at arm's length within the meaning of the ITA) for such purpose. The Corporation and its Subsidiaries do not assume, and will not have any responsibility for, the income or other tax consequences resulting to any Participant in connection with or related to any Award and each Participant is strongly advised to consult their own tax advisors.

(2) Participants (and their legal representatives) will have no legal or equitable right, claim or interest in any specific property or asset of the Corporation or any Subsidiary. No asset of the Corporation or any Subsidiary will be held in any way as collateral security for the fulfillment of the obligations of the Corporation or any Subsidiary under this Plan. Unless otherwise determined by the Board, this Plan will be unfunded. To the extent any Participant or its estate holds any rights by virtue of a grant of an Award, such rights (unless otherwise determined by the Board) will be no greater than the rights of an unsecured creditor of the Corporation.

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(3) Unless otherwise determined by the Board, the Corporation will not offer financial assistance to any Participant in regards to the exercise of any Award.

**2.4 Shares Subject to this Plan**

(1) Subject to adjustment pursuant to Article 8, and as may be approved by the Exchange and the Shareholders from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the securities that may be acquired by Participants pursuant to Awards will consist of authorized but unissued Shares in an amount not to exceed the percentage set out below at the time of grant, provided that, in the case of Cash-or-Share Settled Share Units, SARs and DSUs, the Corporation (or applicable Subsidiary) may, in its sole discretion, elect to settle such Cash-or-Share Settled Share Units, SARs or DSUs in cash or in Shares acquired in the open market by a Designated Broker for the benefit of a Participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of Shares reserved for issuance, in the aggregate, pursuant to the settlement or exercise of Awards granted under this Plan will be equal to a maximum of 10% of the Issued Shares from time to time, less the number of Shares reserved for issuance pursuant to any other Share Compensation Arrangement (if any).

(2) For the purposes of calculating the number of Shares reserved for issuance under this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Option and each Share-Settled Share Unit will be counted as reserving one Share under this Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notwithstanding that the settlement of any Cash-or-Share Settled Share Unit, DSU or SAR in Shares will be in the sole discretion of the Corporation as provided in this Plan, each Cash-or-Share Settled Share Unit, DSU and SAR will be counted as reserving one Share under this Plan.

(3) No Award may be granted if such grant would have the effect of causing the total number of Shares reserved for issuance under this Plan to exceed the maximum number of Shares reserved for issuance under this Plan as set out above in Section 2.4(1)(b).

(4) This Plan is considered to be a "rolling" plan because if (a) an outstanding Award (or portion of such Award) expires or is forfeited, surrendered, cancelled or otherwise terminated for any reason without having been exercised or settled; or (b) an outstanding Award (or portion of such Award) is settled in cash, then in each such case the Shares reserved for issuance in respect of such Award (or portion of such Award) will again be available for issuance under this Plan, and the number of Shares reserved for issuance in respect of Awards will increase if the total number of issued and outstanding Shares increases.

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**2.5 Participation Limits**

(1) In no event will this Plan, together with all other previously established and outstanding Share Compensation Arrangements (if any), permit at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the maximum aggregate number of Shares that are issuable pursuant to all Awards granted or issued to Insiders (as a group) to exceed 10% of the Issued Shares at any point in time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the maximum aggregate number of Shares that are issuable pursuant to all Awards granted or issued in any 12 month period to Insiders (as a group) to exceed 10% of the Issued Shares, calculated as at the date any Award is granted or issued to any Insider; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the maximum aggregate number of Shares that are issuable pursuant to all Awards granted or issued in any 12 month period to any one Person (and where permitted under this Plan, any companies that are wholly owned by that Person) to exceed 5% of the Issued Shares, calculated as at the date any Award is granted or issued to the Person,

unless the Corporation has obtained the requisite Disinterested Shareholder Approval.

(2) The maximum aggregate number of Shares that are issuable pursuant to all Awards granted or issued in any 12 month period to any one Consultant must not exceed 2% of the Issued Shares, calculated as at the date any Award is granted or issued to the Consultant.

(3) The maximum aggregate number of Shares that are issuable pursuant to all Options granted in any 12 month period to all Investor Relations Service Providers in aggregate must not exceed 2% of the Issued Shares, calculated as at the date any Option is granted to any such Investor Relations Service Provider, and such Options will be subject to the vesting requirements set out in Section 3.2(2).

(4) Investor Relations Service Providers may not receive any Awards other than Options. For so long as the Corporation is listed on the TSXV, the Board will, through the establishment of appropriate procedures as determined by the Board in its discretion from time to time, monitor the trading in the securities of the Corporation by all Investor Relations Service Providers. These procedures may include, for example, the establishment of a designated brokerage account through which an Investor Relations Service Provider conducts all trades in the securities of the Corporation or a requirement that Investor Relations Service Providers file reports of their trades with the Board on a basis that is similar to reports required to be filed by reporting insiders under National Instrument 55-104 - *Insider Reporting Requirements and Exemptions*.

(5) Upon authorization by the Board of the exercise of an Option on a "cashless exercise" basis pursuant to Section 3.7(3) or "net exercise" basis pursuant to Section 3.7(4), the number of Options exercised, surrendered or converted, and not the number of Shares actually issued by the Corporation, will be included in calculating the limits set forth in Section 2.4(1)(b) and this Section 2.5. Notwithstanding the forgoing, Shares reserved for issuance pursuant to an Award that has been settled in cash, cancelled, terminated, surrendered, forfeited or expired without being exercised or settled, and pursuant to which no securities have been issued, will continue to be issuable under this Plan.

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**2.6 Granting of Awards**

Each Award will be subject to the requirement that, if at any time, counsel to the Corporation determines that the listing, registration or qualification of the Shares subject to such Award upon any Exchange or under any Applicable Law, or the consent or approval of any Exchange or any governmental or regulatory body, is necessary as a condition of, or in connection with, the grant, exercise or settlement of such Award, or the issuance or purchase of Shares under such Award, such Award may not be granted, exercised or settled, in whole or in part, unless such listing, registration, qualification, consent or approval will have been effected or obtained on conditions acceptable to the Board. Nothing in this Plan will be deemed to require the Corporation to apply for or to obtain such listing, registration, qualification, consent or approval.

**ARTICLE 3**<br>**OPTIONS**

**3.1 Nature of Options**

An Option is a stock option granted by the Corporation to a Participant, with each Option entitling such Participant to acquire one Share from treasury subject to the provisions of this Plan. For greater certainty, the Corporation is obligated to issue and deliver a Share on the due exercise of an Option and will have no independent discretion to settle any Option in cash or other property. For the avoidance of doubt, no Dividend Equivalents will be granted in connection with any Option.

**3.2 Option Awards**

(1) Subject to the provisions of this Plan and any Shareholder or other approval which may be required, the Board may from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive Options; (b) fix the number of Options, if any, to be granted to each Eligible Participant and the date(s) on which such Options will be granted (which will not be prior to the date of the resolution of the Board); (c) subject to Section 3.4, determine the price per Share to be payable upon the exercise of each Option (the "**Option Price**"); (d) determine the relevant vesting provisions (including Performance Criteria, if applicable) of each Option; and (e) determine the date until which each Option may be exercised, in each case subject to the terms and conditions of this Plan, any applicable Option Agreement and the Exchange Rules. For Options granted to Employees, Management Company Employees and Consultants, the Corporation and the Participant are responsible for ensuring and confirming that the Participant is a bona fide Employee, Management Company Employee or Consultant, as the case may be.

(2) Each Option will vest in accordance with the terms of the Option Agreement entered into in respect of such Option. Notwithstanding the foregoing, Options granted to Investor Relations Service Providers must vest in stages over a period of not less than 12 months, with no more than one-quarter of such Options vesting in any three-month period, and with the first such vesting date to occur no sooner than three months after the applicable Grant Date. No acceleration of the vesting provisions of Options granted to Investor Relations Service Providers is allowed without the prior acceptance of the TSXV.

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**3.3 Option Agreements**

(1) Each grant of an Option will be evidenced by an Option Agreement in substantially the form attached as Exhibit "A" or such other form as the Board may determine in its discretion from time to time. Each Option Agreement will be subject to all applicable terms and conditions of this Plan and any other terms and conditions (including any recoupment, reimbursement or claw-back compensation policy as may be adopted by the Board from time to time) as the Board may deem appropriate, provided that they are not inconsistent with Applicable Law. No Option Agreements entered into pursuant to this Plan must be identical.

(2) Each Option Agreement will contain such terms as may be considered necessary by the Board in order that the Options referenced in such Option Agreement will comply with any provisions respecting options in the income tax laws (including, in respect of Canadian Employee Participants, such terms and conditions so as to ensure that the Option will be continuously governed by Section 7 of the ITA) or other Applicable Laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen, or provide services in, or the rules of any regulatory body having jurisdiction over the Corporation.

(3) To the extent any Options granted to a Participant are options for "non-qualified securities" under the ITA, notification of such Options will be included in the applicable Option Agreement and the Corporation shall make all other necessary notifications or designations required to be made the Corporation under the ITA.

**3.4 Option Price**

Each Option Price will be determined and approved by the Board when the applicable Option is granted, and will not be less than the Market Price as of the Grant Date, less any discount permitted by the Exchange. A minimum exercise price cannot be established unless the Options are allocated to particular Participants.

**3.5 Option Term**

The Board will determine, at the time of granting a particular Option, the period during which such Option is exercisable, which will not be more than 10 years after the Grant Date and which may be shortened in accordance with this Plan and the applicable Option Agreement. Unless otherwise determined by the Board, all unexercised Options will be automatically cancelled, without any compensation to the Participant, on the Expiry Date of such Options. Notwithstanding the foregoing, if the Expiry Date falls within a Blackout Period, the Expiry Date will be the date that is 10 Business Days after the Blackout Expiry Date and may not be further extended by the Board.

**3.6 Exercise of Options**

Prior to its expiration or earlier termination in accordance with this Plan, each Option will be exercisable at such time(s) and/or pursuant to the achievement of such Performance Criteria and/or other vesting conditions as the Board, at the time of granting such Option, may determine in its sole discretion. For greater certainty, any exercise of Options by a Participant must be in compliance with the Corporation's insider trading policy.

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**3.7 Method of Exercise and Payment of Purchase Price**

(1) Subject to the provisions of this Plan, including Sections 3.7(3) and 3.7(4), each Option will be exercisable by the Participant (or its legal representative) delivering a fully completed Exercise Notice (a form of which is attached to Exhibit "A") to the Corporation at its head office, addressed to the attention of the Chief Financial Officer of the Corporation (or any individual that the Chief Financial Officer may from time to time designate) or by giving notice in such other manner as the Corporation may from time to time designate, which notice will specify the number of Options being exercised and will be accompanied by payment, in full, of (a) the Option Price multiplied by the number of Options specified in such Exercise Notice, and (b) such amount in respect of Applicable Withholding Taxes and other applicable source deductions pursuant to Section 9.2. Such payment will be in the form of certified cheque, bank draft, wire transfer or any other form of payment deemed acceptable by the Chief Financial Officer of the Corporation (or any individual that the Chief Financial Officer may from time to time designate).

(2) No later than 10 Business Days after the exercise of an Option and receipt of all payments required to be made by the Participant to the Corporation in connection with such exercise, the Corporation will cause the transfer agent and registrar of the Shares to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) deliver to the Participant (or its legal representative) a certificate in the name of the Participant representing the aggregate number of Shares that the Participant (or its legal representative) has paid for and as are specified in the applicable Exercise Notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of Shares issued in uncertificated form, cause the issuance of the aggregate number of Shares that the Participant (or its legal representative) has paid for and as are specified in such Exercise Notice, which Shares will be evidenced by a book position on the register of the Shareholders maintained by the transfer agent and registrar of the Shares.

(3) The Board may, on terms established by it in its sole discretion and in accordance with Exchange policies (including, if the Corporation is listed on the TSXV, Section 4.8(d)(i) of TSXV Policy 4.4), permit an Option to be exercised by way of a "cashless exercise" basis.

(4) The Board may, in its sole discretion and in accordance with Exchange policies (including, if the Corporation is listed on the TSXV, Section 4.8(d)(ii) of TSXV Policy 4.4), permit Options held by a Participant who is not an Investor Relations Service Provider to be exercised on a "net exercise" basis such that the Participant receives only the number of Shares underlying such Options that is equal to the quotient obtained by dividing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the product of the number of Options being exercised multiplied by the difference between the VWAP and the Option Price of such Options;

by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the VWAP.

(5) Where the Board permits a cashless exercise of Options as provided in Section 3.7(3) or a net exercise of Options as provided in Section 3.7(4), the Corporation shall, where the holder of the Option would otherwise be entitled to a deduction under paragraph 110(1)(d) of the ITA in respect of the ordinary exercise of the Option, it shall make the requisite elections under subsection 110(1.1) of the ITA to agree not to claim a corporate level deduction in respect of such Option.

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(6) No fractional Shares will be issued upon the exercise of Options. If a Participant would become entitled to a fractional Share upon the exercise of an Option, or from an adjustment pursuant to Section 8.1, such Participant will only have the right to acquire the next lowest whole number of Shares, and no payment or other adjustment will be made with respect to the fractional interest so disregarded.

**ARTICLE 4**<br>**SHARE APPRECIATION RIGHTS**

**4.1 Nature of SARs**

A SAR is an Award granted to a Participant for future services to be rendered that, upon settlement, entitles such Participant to receive cash and/or Shares, as determined by the Corporation in its sole discretion, equal to the Appreciation Value of such SAR.

**4.2 SAR Awards**

(1) Subject to the provisions of this Plan, including Section 4.2(6), the terms of any applicable SAR Agreement, and any Shareholder or regulatory approval which may be required, the Board may, from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive SARs; (b) fix the number of SARs, if any, to be granted to each Eligible Participant and the date(s) on which such SARs will be granted; (c) determine whether, on settlement of an SAR, a Participant will be entitled to a payment of cash or Shares (or a combination); (d) determine the Base Value of the SARs; and (e) determine the relevant conditions and vesting provisions of each SAR; provided that no such condition or restriction will cause the SAR to constitute a "salary deferral arrangement" within the meaning of Section 248(1) of the ITA. For SARs granted to Employees, Management Company Employees and Consultants, the Corporation and the Participant are responsible for ensuring and confirming that the Participant is a bona fide Employee, Management Company Employee or Consultant, as the case may be.

(2) Subject to the vesting and other conditions and provisions in this Plan and any applicable SAR Agreement, each SAR awarded to a Participant will entitle such Participant to receive, on settlement, a cash payment and/or Shares, as determined by the Board in its sole discretion, equal to the Appreciation Value of such SAR. For greater certainty, such Appreciation Value shall be based solely on the increase in the fair market value of the Shares and thus is not guaranteed.

(3) All SARs shall have a nil value as of the Grant Date.

(4) The Base Value for each SAR (the "**Base Value**") will be determined by the Board and specified in the SAR Agreement. The Base Value of a SAR will not be less than the Market Price on the Grant Date.

(5) Each SAR will vest in accordance with the terms of the SAR Agreement entered into in respect of such SAR, provided that no SAR will vest before one year after the Grant Date.

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(6) Notwithstanding any other provision of this Article 4, it is intended that SARs granted to Canadian Employee Participants will be excluded from the definition of "salary deferral arrangement" as defined in Section 248(1) of the ITA, and all SARs shall have such terms and conditions, including as to vesting and settlement, as may be necessary or desirable to ensure such treatment. For greater certainty, each SAR will be granted solely in respect of the future service of the Participant and will not be in respect of prior services of such Participant. The Board may only grant a SAR to a Participant so long as none of the main purposes of such grant is to provide the Participant with a payment that is in lieu of salary or wages for services rendered by such Participant in a previous calendar year.

**4.3 SAR Award Agreements**

(1) Each grant of a SAR will be evidenced by a SAR Agreement in substantially the form attached as Exhibit B or such other form as the Board may determine in its discretion from time to time. Each SAR Agreement will be subject to all applicable terms and conditions of this Plan and any other terms and conditions (including any recoupment, reimbursement or claw-back compensation policy as may be adopted by the Board from time to time) as the Board may deem appropriate, provided that they are not inconsistent with Applicable Law. No SAR Agreements entered into pursuant to this Plan must be identical.

(2) Each SAR Agreement will contain such terms as the Corporation considers necessary in order that the SARs referenced in such SAR Agreement will comply with any provisions respecting share appreciation rights in the income tax laws or other Applicable Laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen, or provide services in, or the rules of any regulatory body having jurisdiction over the Corporation.

(3) Subject to the terms of this Plan and the Exchange Rules, SARs may not be granted with a Base Value that is less than 100% of the Market Price on the Grant Date. For greater certainty, if the Canada Revenue Agency, IRS or any other taxing authority determines that a SAR was granted with a Base Value that was less than the Market Price on the Grant Date, the holder of such SAR will be solely responsible for all taxes, interest, penalties and other costs related to such a determination. At the time of grant of a SAR to a U.S. Taxpayer, the Board will specify in the SAR Agreement evidencing such SAR the date or dates on which the SAR will become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate, including vesting based upon the U.S. Taxpayer's duration of service to the Corporation or any Affiliate, Performance Criteria, or individual performance or other specific criteria, in each case on such specified date(s) or over such period(s), as determined by the Board, provided that no SAR will vest before one year after the Grant Date. At any time after the grant of a SAR, the Board may accelerate the period during which such SAR vests, provided that no SAR will vest before one year after the Grant Date.

**4.4 SAR Term**

Each SAR shall expire on the earlier of: (a) December 15th of the calendar year in which such Performance Criteria and/or other vesting conditions applicable to such SAR as determined by the Board at the time of grant of the SAR are achieved; and (b) the fifth anniversary of the date such SAR was granted.

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**4.5 Settlement of SARs**

Each SAR will be settled and automatically paid out by the Corporation, in cash, Shares or a combination of both, at such time within the same year of the achievement of such Performance Criteria and/or other vesting conditions applicable to such SAR as determined by the Board at the time of grant of the SAR, as may be determined by the Board in its sole discretion, provided that such settlement shall be completed by December 15 of the calendar year in which all applicable vesting conditions are achieved. For greater certainty, any settlement of SARs must be made in compliance with the Corporation's insider trading policy.

**4.6 Method of Settlement** 

(1) Subject to the provisions of this Plan, each SAR will be settled by the Corporation at such time in the year the applicable vesting conditions are satisfied as provided in Section 4.2(5) as may be determined by the Board in its sole discretion.

(2) On settlement of a SAR, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions pursuant to Section 9.2, the Corporation will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Corporation has determined in its sole discretion to pay the Appreciation Value in whole or in part in Shares, cause the transfer agent and registrar of the Shares either to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) deliver to the Participant (or its legal representative) a certificate in the name of the Participant (or its legal representative) representing the aggregate number of Shares that the Participant (or its legal representative) is entitled to, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Shares issued in uncertificated form, issue to the Participant (or its legal representative) the aggregate number of Shares that the Participant (or its legal representative) is entitled to, which Shares will be evidenced by a book position on the register of the Shareholders maintained by the transfer agent and registrar of the Shares,

and any fractional Share will be settled in cash; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Corporation has determined in its sole discretion to pay the Appreciation Value in whole or in part in cash, pay such amount to the Participant by cheque, wire transfer or such other payment method as the Corporation and the Participant may agree.

(3) If the Board elects to pay the Appreciation Value in Shares, those Shares may be authorized and unissued Shares issued from the Corporation's treasury or outstanding Shares acquired on the open market through the facilities of an independent broker or a combination thereof. If the Shares are to be acquired on the open market through the facilities of an independent broker, the Corporation will contribute to the Designated Broker an amount of cash sufficient, together with any reasonable brokerage fees or commission fees related thereto, to purchase the whole number of Shares required and the Designated Broker will, as soon as practicable thereafter, purchase those Shares, on behalf of such Participant, on the Exchange.

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**ARTICLE 5**<br>**RESTRICTED AND PERFORMANCE SHARE UNITS**

**5.1 Nature of Share Units**

A Share Unit is an Award granted to a Participant as a bonus for services rendered in the year of grant. At the time of grant, the Corporation shall designate whether the Share Unit is a Cash-or-Share Settled Share Unit or a Share-Settled Share Unit.

A "**Cash-or-Share Settled Share Unit**" is a Share Unit granted by the Corporation to a Participant, with each such Share Unit entitling the Participant, upon vesting and settlement, to, unless such Share Unit expires prior to being settled, receive a cash payment equal to the Market Price or, in the sole discretion of the Corporation, one Share, subject to customary adjustments as provided in this Plan and such restrictions and conditions on vesting as the Board may determine at the time of grant.

A "**Share-Settled Share Unit**" is a Share Unit granted by the Corporation to a Participant, with each such Share Unit entitling the Participant, upon vesting and settlement, to acquire, unless such Share Unit expires prior to being settled, one Share from treasury, subject to customary adjustments as provided in this Plan and such restrictions and conditions on vesting as the Board may determine at the time of grant. For greater certainty, the Corporation is obligated to issue and deliver a Share on the due settlement of a Share-Settled Share Unit and will have no independent discretion to settle any Share-Settled Share Unit in cash or other property.

Subject to the provisions of this Plan, restrictions and conditions on vesting of any Share Unit may, without limitation, be based on the passage of time during continued employment or other service relationship (sometimes referred to as a "**Restricted Share Unit**"), the achievement of specified Performance Criteria (sometimes referred to as a "**Performance Share Unit**"), or both.

Unless otherwise provided in the applicable Share Unit Agreement or the Exchange Rules, it is intended that Share Units awarded to U.S. Taxpayers will be exempt from Code Section 409A under U.S. Treasury Regulation Section 1.409A-1(b)(4) and, accordingly, such Share Units will be settled/redeemed by March 15<sup>th</sup> of the year following the year in which such Share Units are not, or are no longer, subject to a substantial risk of forfeiture (as such term is interpreted under Code Section 409A). For greater certainty, upon the satisfaction or waiver, or deemed satisfaction, of all Performance Criteria and other vesting conditions, the Share Units of U.S. Taxpayers will no longer be subject to a substantial risk of forfeiture, and, subject to the terms of this Plan and the Exchange Rules, will be settled/redeemed by March 15<sup>th</sup> of the following year (the "**U.S. Share Unit Outside Expiry Date**").

It is intended that Cash-or-Share Settled Share Units granted to Canadian Employee Participants will be excluded from the definition of "salary deferral arrangement" as defined in Section 248(1) of the ITA, by reason of the exemption in paragraph (k) thereof, and all Cash-or-Share Settled Share Units shall have such terms and conditions, including as to vesting and settlement, as may be necessary or desirable to ensure such treatment. For greater certainty, all Cash-or-Share Settled Share Units shall be granted as a bonus for services rendered by the Participant in the year of grant and will be in addition to, and not in substitution for or in lieu of, ordinary salary and wages received or receivable by any Canadian Participant in respect of their services to the Corporation or a Subsidiary, as applicable.

It is intended that Share-Settled Share Units granted to Canadian Employee Participants will be continuously governed by Section 7 of the ITA and all Share-Settled Share Units shall have such terms and conditions, including as to vesting and settlement, as may be necessary or desirable to ensure such treatment.

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**5.2 Share Unit Awards**

(1) Subject to the provisions of this Plan and any Shareholder or regulatory approval which may be required, the Board may, from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive Share Units; (b) fix the number of Share Units, if any, to be granted to each Eligible Participant and the date(s) on which such Share Units will be granted; (c) determine the relevant conditions, vesting provisions (including the applicable Performance Period and Performance Criteria, if any) and the Restriction Period of each Share Unit; and (d) determine any other terms and conditions applicable to each Share Unit, which need not be identical and which may include non-competition provisions, in each case subject to the terms and conditions of this Plan, any applicable Share Unit Agreement, and the Exchange Rules. For Share Units granted to Employees, Management Company Employees and Consultants, the Corporation and the Participant are responsible for ensuring and confirming that the Participant is a bona fide Employee, Management Company Employee or Consultant, as the case may be.

(2) Each Share Unit will vest in accordance with the terms of the Share Unit Agreement entered into in respect of such Share Unit.

**5.3 Share Unit Agreements**

(1) Each grant of a Share Unit will be evidenced by a Share Unit Agreement in substantially the form attached as Exhibit "C" or such other form as the Board may determine in its discretion from time to time. Each Share Unit Agreement will be subject to all applicable terms and conditions of this Plan and any other terms and conditions (including any recoupment, reimbursement or claw-back compensation policy as may be adopted by the Board from time to time) as the Board may deem appropriate, provided that they are not inconsistent with Applicable Law. No Share Unit Agreements entered into pursuant to this Plan must be identical.

(2) Each Share Unit Agreement will contain such terms as the Corporation considers necessary in order that the Share Units referenced in such Share Unit Agreement granted to U.S. Taxpayers will comply with Code Section 409A and the Share Units will comply with any provisions respecting restricted share units in the income tax laws (including, in respect of Canadian Participants, such terms and conditions so as to ensure that the Share Units will not constitute a "salary deferral arrangement" as defined in Section 248(1) of the ITA, by reason of, in respect of Cash-or-Share Settled Share Units, the exemption in paragraph (k) thereof or, in respect of Share-Settled Share Units, the applicability of Section 7 of the ITA thereto) or other Applicable Laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen, or provide services in, or the rules of any regulatory body having jurisdiction over the Corporation.

**5.4 Vesting of Share Units**

The Board will have sole discretion to: (a) determine if any vesting conditions with respect to a Share Unit, including any Performance Criteria or other vesting conditions contained in the applicable Share Unit Agreement, have been met; (b) waive any vesting conditions applicable to a Share Unit (or deem them to be satisfied); and (c) extend the Restriction Period with respect to any Share Unit, provided that: (i) any such extension will not result in the Restriction Period for a Cash-or-Share-Settled Share Unit extending beyond the Share Unit Outside Expiry Date, and (ii) with respect to any grant of Share Units to a U.S. Taxpayer, such extension constitutes a substantial risk of forfeiture and such Share Units will continue to be exempt from (or otherwise comply with) Code Section 409A. The Corporation will communicate to a Participant, as soon as reasonably practicable, the date on which all applicable vesting conditions in respect of a Share Unit held by such Participant have been satisfied, waived or deemed satisfied and such Share Unit has vested (the "**Vesting Date**").

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**5.5 Blackout Periods**

Subject in all respects to Section 5.6(6), in the event a Vesting Date or a Redemption Date occurs during a Blackout Period, such Vesting Date or Redemption Date shall be automatically extended without any further act or formality to that date which is the tenth Business Day after the Blackout Expiry Date, such tenth Business Day to be considered the Vesting Date or Redemption Date, as applicable, for such Share Unit for all purposes under the Plan. Subject in all respects to Section 5.6(6), if a Participant's employment or service relationship with the Corporation is terminated pursuant to Section 7.3(1) or Section 7.3(2) during such extension, the Participant will remain entitled to such distribution or payment notwithstanding such termination. For greater certainty, in no case shall any extension contemplated by this Section 5.5 extend beyond the Share Unit Outside Expiry Date for Cash-or-Share Settled Share Units.

**5.6 Redemption / Settlement of Share Units**

(1) Subject to the provisions of this Section 5.5 and Section 5.7, and to the elective mechanism in Section 5.6(4) for Share-Settled Share Units, a Participant's vested Share Units will be redeemed on the date (the "**Redemption Date**") that is the earliest of: (a) the 15<sup>th</sup> day following the applicable Vesting Date for such Share Units (or, if such day is not a Business Day, on the immediately following Business Day); (b) the Share Unit Outside Expiry Date; and (c) in the case of a Participant who is a U.S. Taxpayer, the U.S. Share Unit Outside Expiry Date.

(2) All Share-Settled Share Units shall be redeemed by the Corporation issuing, on the Redemption Date, Shares from treasury to the Participant.

(3) All Cash-or-Share Settled Share Units will be settled by the Corporation (or any Subsidiary that is party to an Employment Agreement or Consulting Agreement with such Participant), in the Corporation's sole discretion, on the Redemption Date either: (a) by a cash payment to the Participant; (b) by the issuance of Shares from treasury to the Participant; (c) by paying all or a portion of the cash payment obligation to the Designated Broker, who will use the funds received to purchase Shares in the open market, which Shares will be registered in the name of the Designated Broker in a separate account for the Participant's benefit; or (d) by a combination of any of the foregoing.

(4) Notwithstanding Section 5.6(1), a Canadian Employee Participant may, in respect of any Share-Settled Share Unit, elect, in advance of the Vesting Date for such Share-Settled Share Unit, to defer the Redemption Date for such Share-Settled Share Unit by filing with the Corporation an election (a "**Share-Settled Share Unit Deferred Settlement Election**") not later than 30 days prior to the Vesting Date for such Share-Settled Share Unit. Such Share-Settled Share Unit Deferred Settlement Election shall be irrevocable for the calendar year in which it was made. In any calendar year subsequent to the making of a Share-Settled Share Unit Deferred Settlement Election, such Canadian Employee Participant may inform, in writing, the Corporation of the Participant's revocation of such election. Where such a Share-Settled Share Unit Deferred Settlement Election has been filed, the Redemption Date for such underlying Share-Settled Share Unit will be the date that is the earlier of: (a) the 15th day following the date that the Canadian Employee Participant has informed, in writing, the Corporation of the revocation of his or her Share-Settled Share Unit Deferred Settlement Election (or, if such day is not a Business Day, on the immediately following Business Day); and (b) the Termination Date of such Canadian Employee Participant. For greater certainty, this Section 5.6(4) shall not apply in respect of Cash-or-Share Settled Share Units.

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(5) The settlement of a Participant's vested Share Units will occur on the applicable Redemption Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in respect of all Share-Settled Share Units and any Cash-or-Share Settled Units which the Corporation has elected to settle in Shares issued from treasury, the Corporation shall cause the transfer agent and registrar of the Shares either to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) deliver to the Participant (or its legal representative) a certificate in the name of the Participant (or its legal representative) representing the aggregate number of Shares that the Participant (or its legal representative) is entitled to, as determined in accordance with Section 5.7, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Shares issued in uncertificated form, issue to the Participant (or its legal representative) the aggregate number of Shares that the Participant (or its legal representative) is entitled to, as determined in accordance with Section 5.7, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, which Shares will be evidenced by a book position on the register of the Shareholders maintained by the transfer agent and registrar of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of Cash-or-Share Settled Share Units, if the Corporation has elected to settle all or a portion of such Share Units in Shares purchased in the open market, by delivery by the Corporation or such Subsidiary to the Designated Broker of readily available funds in an amount equal to the Market Price as of the Redemption Date multiplied by the number of Share Units to be settled in Shares purchased in the open market, less the amount of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, along with directions instructing the Designated Broker to use such funds to purchase Shares in the open market for the benefit of the Participant and to be evidenced by a confirmation from the Designated Broker of such purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in respect of Cash-or-Share Settled Share Units, any cash payment to which the Participant is entitled, as determined in accordance with Section 5.7 (excluding, for the avoidance of doubt, any amount payable in respect of the Participant's Share Units that the Corporation has elected to settle in Shares), will, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, be paid to the Participant (or its legal representative) by the Corporation (or any Subsidiary that is party to an Employment Agreement or Consulting Agreement with such Participant) by cheque, wire transfer or such other payment method as the Corporation may determine; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in respect of Cash-or-Share Settled Share Units, if the Corporation has elected to settle a portion, but not all, of such Share Units in Shares, the Participant will be deemed to have instructed the Corporation (or Subsidiary that is party to an Employment Agreement or Consulting Agreement with such Participant) to withhold from the cash portion of the payment to which the Participant is otherwise entitled, such amount as may be required in accordance with Section 9.2, and the Corporation or such Subsidiary, as applicable, will deliver any remaining cash payable to the Participant (or its legal representative) as soon as reasonably practicable. If the cash portion payable to settle such Share Units in the foregoing circumstances is not sufficient to satisfy the withholding obligations of the Corporation or such Subsidiary pursuant to Section 9.2 with respect to all of the Cash-or-Share Settled Share Units to be settled, the Corporation or such Subsidiary, as applicable, will be entitled to satisfy any remaining withholding obligation by any other mechanism as may be required or determined by the Corporation in its sole discretion.

(6) Notwithstanding any other provision in this Article 5, no payment, whether in cash or in Shares, will be made in respect of the settlement of any Cash-or-Share Settled Share Unit later than December 15<sup>th</sup> of the third calendar year following the end of the calendar year in respect of which such Share Unit is granted (the "**Share Unit Outside Expiry Date**").

**5.7 Determination of Amounts**

(1) The cash payment obligation arising in respect of the redemption and settlement of a vested Cash-or-Share Settled Share Unit pursuant to Section 5.5 will be equal to the Market Price as of the applicable Redemption Date. For the avoidance of doubt, the aggregate cash amount to be paid to a Participant (or its legal representative) in respect of a particular redemption of the Participant's vested Cash-or-Share Settled Share Units will, subject to any adjustment in accordance with Section 8.1 and any withholding required pursuant to Section 9.2, be equal to the Market Price as of the Redemption Date multiplied by the number of vested Cash-or-Share Settled Share Units in the Participant's Account at the commencement of the Redemption Date (after deducting any such vested Cash-or-Share Settled Share Units in the Participant's Account in respect of which the Corporation (or applicable Subsidiary) makes an election under Section 5.6(2) to settle such vested Cash-or-Share Settled Share Units in Shares).

(2) If the Corporation (or applicable Subsidiary) elects in accordance with Section 5.6(2) to settle all or a portion of a Participant's vested Cash-or-Share Settled Share Units or Share Settled Units by the issuance of Shares, the Corporation will, subject to any adjustments in accordance with Section 8.1 and any withholding required pursuant to Section 9.2, issue to the Participant (or its legal representative), for each such vested Share Unit which the Corporation (or applicable Subsidiary) elects to settle in Shares, one Share. Where, as a result of any adjustment in accordance with Section 8.1 and/or any withholding required pursuant to Section 9.2, the aggregate number of Shares to be received by a Participant upon an election by the Corporation (or applicable Subsidiary) to settle all or a portion of such vested Share Units in Shares includes a fractional Share, the aggregate number of Shares to be received by the Participant will be rounded down to the nearest whole number of Shares.

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**5.8 Award of Dividend Equivalents**

(1) Dividend Equivalents may, as determined by the Board in its sole discretion, be awarded as a bonus for services rendered in the year in respect of unvested Share Units in a Participant's Account on the same basis as cash dividends declared and paid on Shares as if the Participant was a Shareholder of record on the relevant record date. Dividend Equivalents, if any, will be credited to the Participant's Account in additional Share Units, the number of which will be equal to a fraction where the numerator is the product of: (a) the number of Share Units in such Participant's Account on the date that dividends are paid multiplied by (b) the dividend paid per Share, and the denominator of which is the Market Price calculated as of the date that dividends are paid. Any additional Share Units credited to a Participant's Account as a Dividend Equivalent will be subject to the same terms and conditions (including vesting, settlement, Restriction Periods and expiry) as the Share Units in respect of which such additional Share Units are credited. For greater certainty, the foregoing is subject to the limits in Sections 2.4 and 2.5 of this Plan.

(2) In the event that a Participant's Share Units do not vest, all Dividend Equivalents, if any, associated with such Share Units will be forfeited by the Participant.

**ARTICLE 6**<br>**DEFERRED SHARE UNITS**

**6.1 Nature of DSUs**

A DSU is an Award granted to a Participant in a phantom award that, upon settlement, entitles such Participant to receive cash or acquire Shares, as determined by the Board in its sole discretion, subject to such restrictions and conditions on vesting as the Board may determine at the time of grant and unless such DSU expires prior to being settled.

It is intended that DSUs granted to Canadian Employee Participants will be excluded from the definition of "salary deferral arrangement" as defined in Section 248(1) of the ITA, by reason of the exemption in paragraph (l) thereof and Regulation 6801(d) of the ITA Regulations, and all DSUs shall have such terms and conditions, including as to vesting and settlement, as may be necessary or desirable to ensure such treatment.

**6.2 Market Fluctuation**

The aggregate of all amounts which may be received in respect of a DSU will depend, at all times, on the fair market value of shares of the capital stock of the Corporation or of a corporation related (within the meaning of the ITA) thereto at a time that is within the period that commences one year prior to the Participant's Termination Date and ends at the time the amount is received. For greater certainty, no Participant, nor any Person who does not deal at arm's length, within the meaning of the ITA, with such Participant, shall be entitled, either immediately or in the future, either absolutely or contingently, to receive or obtain any amount or benefit granted or to be granted, under this Plan or pursuant to any other arrangement, and no additional Awards will be granted to such Participant, for the purpose of reducing the impact, in whole or in part, of any reduction in the fair market value of the Shares or the shares of any corporation related, within the meaning of the ITA, to the Corporation.

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**6.3 DSU Awards**

(1) Subject to the provisions of this Plan, any Shareholder or regulatory approval which may be required, and the requirements of Section 6801(d) of the ITA Regulations and Code Section 409A, the Board may, from time to time, in its sole discretion: (a) designate the Eligible Participants who may receive DSUs; (b) fix the number of DSUs, if any, to be granted to each Eligible Participant and the date(s) on which such DSUs will be granted; and (c) determine the relevant conditions and vesting provisions for such DSUs, in each case subject to the terms and conditions of this Plan, any applicable DSU Agreement, and the Exchange Rules. For DSUs granted to Employees, Management Company Employees and Consultants, the Corporation and the Participant are responsible for ensuring and confirming that the Participant is a bona fide Employee, Management Company Employee or Consultant, as the case may be.

(2) Each DSU will vest in accordance with the terms of the DSU Agreement entered into in respect of such DSU, provided that no DSU will vest before one year after the Grant Date.

(3) Subject to the vesting and other conditions and provisions in this Plan and any applicable DSU Agreement, each DSU will entitle the Participant to receive, on settlement, a cash payment equal to the Market Price or, in the sole discretion of the Board, one Share, or any combination of cash and Shares as the Corporation in its sole discretion may determine. For greater certainty, no Participant will have any right to demand to be paid in, or receive, Shares in respect of any DSU, and, notwithstanding any discretion exercised by the Corporation to settle any DSU, or portion thereof, in the form of Shares, the Corporation reserves the right to change such form of payment at any time until payment is actually made.

**6.4 DSU Agreements**

(1) Each grant of a DSU will be evidenced by a DSU Agreement in substantially the form attached as Exhibit "D" or such other form as the Board may determine in its discretion from time to time. Each DSU Agreement will be subject to all applicable terms and conditions of this Plan and any other terms and conditions (including any recoupment, reimbursement or claw-back compensation policy as may be adopted by the Board from time to time) as the Board may deem appropriate, provided that they are not inconsistent with Applicable Law. No DSU Agreements entered into pursuant to this Plan must be identical.

(2) Each DSU Agreement will contain such terms as the Corporation considers necessary in order that the DSUs granted to U.S. Taxpayers will comply with Code Section 409A and the DSUs will comply with any provisions respecting deferred share units in the income tax laws (including, in respect of Canadian Employee Participants, such terms and conditions so as to ensure that the DSUs will not constitute a "salary deferral arrangement" as defined in Section 248(1) of the ITA by reason of the exemption in Section 6801(d) of the ITA Regulations) or other Applicable Laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen, or provide services in, or the rules of any regulatory body having jurisdiction over the Corporation.

**6.5 Redemption / Settlement of DSUs**

(1) Except as otherwise provided in this Plan, (i) DSUs of a Participant who is a U.S. Taxpayer will be redeemed and settled by the Corporation as soon as reasonably practicable following the Participant's Separation from Service, and (ii) DSUs of a Participant who is a Canadian Participant (or who is neither a U.S. Taxpayer nor a Canadian Participant) will be redeemed and settled by the Corporation as soon as reasonably practicable following the Participant's Termination Date, but in any event not later than, and any payment (whether in cash or in Shares) in respect of the settlement of such DSUs will be made no later than, December 15<sup>th</sup> of the first calendar year commencing immediately after the Participant's Termination Date. Notwithstanding the foregoing, if a payment in settlement of DSUs of a Participant who is both a U.S. Taxpayer and a Canadian Participant:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is required as a result of their Separation from Service in accordance with clause (1) above, but such payment would result in such DSUs failing to satisfy the requirements of Section 6801(d) of the ITA Regulations, and the Board determines that it is not practical to make such payment in some other manner or at some other time that complies with both Code Section 409A and Section 6801(d) of the ITA Regulations, then such payment will be made to a trustee to be held in trust for the benefit of the Participant in a manner that causes the payment to be included in the Participant's income under the Code but does not contravene the requirements of Section 6801(d) of the ITA Regulations, and the amount will thereafter be paid out of trust at such time and in such manner as complies with the requirements of Section 6801(d) of the ITA Regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is required pursuant to clause (ii) above, but such payment would result in such DSUs failing to satisfy the requirements of Code Section 409A because the Participant has not experienced a Separation from Service, and if the Board determines that it is not practical to make such payment in some other manner or at some other time that satisfies the requirements of both Code Section 409A and Section 6801(d) of the ITA Regulations, then the Participant will forfeit such DSUs without compensation for such DSUs.

(2) The Corporation will have, in its sole discretion, the ability to elect to settle all or any portion of the cash payment obligation arising in respect of the redemption and settlement of a Participant's DSUs either: (a) by the issuance of Shares to the Participant (or its legal representative) on the DSU Redemption Date, or (b) by paying all or a portion of such cash payment obligation to the Designated Broker, who will use the funds received to purchase Shares in the open market, which Shares will be registered in the name of the Designated Broker in a separate account for the Participant's benefit.

(3) For greater certainty, the Corporation will not pay any cash or issue or deliver any Shares to a Participant in satisfaction of the redemption of such Participant's DSUs prior to the Corporation being satisfied, in its sole discretion, that all Applicable Withholding Taxes and other applicable source deductions under Section 9.2 will be timely withheld or received and remitted to the appropriate taxation authorities in respect of such DSUs.

(4) The redemption and settlement of a Participant's vested DSUs will occur on the applicable DSU Redemption Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Corporation has elected to settle all or a portion of such DSUs in Shares issued from treasury, cause the transfer agent and registrar of the Shares :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) deliver to the Participant (or its legal representative) a certificate in the name of the Participant (or its legal representative) representing the aggregate number of Shares that the Participant (or its legal representative) is entitled to, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions in accordance with Section 9.2, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Shares issued in uncertificated form, issue to the Participant (or its legal representative) the aggregate number of Shares that the Participant (or its legal representative) is entitled to, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, which Shares will be evidenced by a book position on the register of the Shareholders to be maintained by the transfer agent and registrar of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Corporation has elected to settle all or a portion of such DSUs in Shares purchased in the open market, by delivery by the Corporation to the Designated Broker of readily available funds in an amount equal to the Market Price as of the applicable DSU Redemption Date multiplied by the number of DSUs to be settled in Shares purchased in the open market, less the amount of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, along with directions instructing the Designated Broker to use such funds to purchase Shares in the open market for the benefit of the Participant and to be evidenced by a confirmation from the Designated Broker of such purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any cash payment to which the Participant is entitled (excluding, for the avoidance of doubt, any amount payable in respect of such DSUs that the Corporation has elected to settle in Shares) will, subject to satisfaction of any Applicable Withholding Taxes and other applicable source deductions under Section 9.2, be paid to the Participant (or its legal representative) by the Corporation in cash, by cheque, wire transfer or such other payment method as the Corporation and the Participant may agree; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Corporation has elected to settle a portion, but not all, of such DSUs in Shares, the Participant will be deemed to have instructed the Corporation to withhold from the cash portion of the payment to which the Participant is otherwise entitled such amount as may be required in accordance with Section 9.2, and to remit such withheld amount to the applicable taxation authorities on account of any withholding tax obligations, and the Corporation will deliver any remaining cash payable, after making any such remittance, to the Participant (or its legal representative) as soon as reasonably practicable. If the cash portion elected by the Corporation to settle such DSUs is not sufficient to satisfy the withholding obligations of the Corporation pursuant to Section 9.2, any remaining amounts will be satisfied by the Corporation by any other mechanism as may be required or determined by the Corporation in its sole discretion.

**6.6 Determination of Amounts**

(1) The cash payment obligation arising in respect of the redemption and settlement of a vested DSU pursuant to Section 6.5 will be equal to the Market Price as of the applicable DSU Redemption Date. For the avoidance of doubt, the aggregate cash amount to be paid to a Participant (or its legal representative) in respect of a particular redemption of the Participant's DSUs will, subject to any adjustment in accordance with Section 8.1 and any withholding required pursuant to Section 9.2, be equal to the Market Price as of the DSU Redemption Date multiplied by the number of DSUs being redeemed (after deducting any such DSUs in respect of which the Corporation makes an election under Section 6.5(2) to settle such DSUs in Shares).

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(2) If the Corporation elects in accordance with Section 6.5(2) to settle all or a portion of the cash payment obligation arising in respect of the redemption of a Participant's DSUs by the issuance of Shares, the Corporation will, subject to any adjustments in accordance with Section 8.1 and any withholding required pursuant to Section 9.2, issue to the Participant, for each DSU which the Corporation elects to settle in Shares, one Share. Where, as a result of any adjustment in accordance with Section 8.1 and/or any withholding required pursuant to Section 9.2, the aggregate number of Shares to be received by a Participant upon an election by the Corporation to settle all or a portion of the Participant's DSUs includes a fractional Share, the aggregate number of Shares to be received by the Participant will be rounded down to the nearest whole number of Shares.

**6.7 Award of Dividend Equivalents**

(1) Dividend Equivalents may, as determined by the Board in its sole discretion, be awarded in respect of DSUs in a Participant's Account on the same basis as cash dividends declared and paid on Shares as if the Participant was a Shareholder of record on the relevant record date. Dividend Equivalents, if any, will be credited to the Participant's Account in additional DSUs, the number of which will be equal to a fraction where the numerator is the product of: (a) the number of DSUs in such Participant's Account on the date that dividends are paid multiplied by (b) the dividend paid per Share, and the denominator of which is the Market Price calculated as of the date that dividends are paid. Any additional DSUs credited to a Participant's Account as a Dividend Equivalent will be subject to the same terms and conditions (including vesting conditions) as the DSUs in respect of which such additional DSUs are credited. For greater certainty, the foregoing is subject to the limits in Sections 2.4 and 2.5 of this Plan.

(2) In the event that a Participant's DSUs do not vest, all Dividend Equivalents, if any, associated with such DSUs will be forfeited by the Participant.

**ARTICLE 7**<br>**GENERAL CONDITIONS**

**7.1 General Conditions Applicable to Awards**

Each Award will be subject to the following conditions:

(1) **Vesting Period**. Each Award will vest in accordance with the terms of this Plan and the Award Agreement entered into in respect of such Award. The Board has the right, in its sole discretion, to waive any vesting conditions or accelerate the vesting of any Award, or to deem any Performance Criteria or other vesting conditions to be satisfied, notwithstanding the vesting schedule set forth for such Award, provided that, if, and for so long as, the Shares are listed on the TSXV (or as otherwise may be required under Applicable Law): (a) no acceleration of the vesting provisions of Options granted to Investor Relations Service Providers is allowed without the prior acceptance of the Exchange and (b) and no Award, other than Options or as set forth in Sections 7.3(2) and 8.2, may vest before the date that is 12 months following the Grant Date.

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(2) **Employment**. Notwithstanding any express or implied term of this Plan to the contrary, the granting of an Award will in no way be construed as a guarantee by the Corporation to a Participant of employment or another service relationship with the Corporation. The granting of an Award to a Participant will not impose upon the Corporation or any Subsidiary any obligation to retain the Participant in its employ or service in any capacity. Nothing contained in this Plan or in any Award Agreement entered into pursuant to this Plan will interfere in any way with the rights of the Corporation or any Subsidiary in connection with the employment, retention or termination of any Participant. The loss of existing or potential profit in Shares underlying Awards granted under this Plan will not constitute an element of damages in the event of termination of a Participant's employment or service in any office or otherwise.

(3) **Grant of Awards**. Eligibility to participate in this Plan does not confer upon any Eligible Participant any right to be granted any Award. The grant of an Award to an Eligible Participant does not confer upon such Eligible Participant the right to receive nor preclude such Eligible Participant from receiving any additional Award(s) at any time. The extent to which any Eligible Participant is entitled to be granted Awards will be determined in the sole discretion of the Board. Participation in this Plan will be entirely voluntary and any decision not to participate will not affect an Eligible Participant's relationship or employment with the Corporation or any Subsidiary.

(4) **Rights as a Shareholder**. Neither the Participant nor such Participant's personal representatives or legatees will have any rights whatsoever as a Shareholder in respect of any Shares covered by such Participant's Awards by reason of the grant of such Award (including voting rights, dividend entitlement or rights on liquidation) until such Award is duly vested, exercised, as applicable, and settled and Shares have been issued in respect thereof. Without in any way limiting the generality of the foregoing and except as provided under this Plan, no adjustment will be made for dividends or other rights for which the record date is prior to the date such Shares have been issued.

(5) **Conformity to Plan**. In the event that an Award is granted or an Award Agreement is entered into which does not conform with the provisions of this Plan, the grant of such Award or the terms of such Award Agreement, as the case may be, will not be in any way void or invalidated, but such Award or Award Agreement, as the case may be, will be amended to become, in all respects, in order to bring them in conformity with this Plan.

(6) **Non-Transferability**. Except as set forth in this Plan, each Award is personal to a Participant and will not be assignable or transferable by such Participant, whether voluntarily or by operation of law, except by will or by the laws of descent and distribution. Each Award may be exercised only by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Participant to whom such Award is granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) upon a Participant's death, by the legal representative of such Participant's estate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) upon a Participant's incapacity, the legal representative having authority to deal with the property of such Participant,

provided that any such legal representative will first deliver evidence satisfactory to the Corporation of entitlement to exercise such Award, and in the case of a Participant's death, any claim to such Award must be filed with the Corporation within one year after such Participant's death. A Person exercising an Award may subscribe for Shares only in the Person's own name or in the Person's capacity as a legal representative.

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(7) **Participant's Entitlement**. Except as otherwise provided in this Plan (including pursuant to Section 7.2), or unless the Board permits otherwise, upon any Subsidiary ceasing to be a Subsidiary, Awards previously granted under this Plan that, at the time of such change, are held by a Person who is a Director, Employee or Consultant of such Subsidiary and not of the Corporation itself, whether or not then exercisable, will automatically terminate on the date of such change.

**7.2 General Conditions Applicable to Options**

Except as otherwise provided in any Employment Agreement or Consulting Agreement or in any Award Agreement, each Option will be subject to the following conditions:

(1) **Termination for Cause**. Upon a Participant ceasing to be an Eligible Participant for Cause, any vested or unvested Option granted to such Participant will terminate automatically and become void immediately. For the purposes of this Plan, the determination by the Corporation that a Participant was discharged for Cause will be binding on such Participant. "**Cause**" will include, among other things, gross misconduct, theft, fraud, breach of confidentiality, breach of the Corporation's code of conduct and any other reason determined by the Corporation to be cause for termination.

(2) **Termination not for Cause**. Upon a Participant ceasing to be an Eligible Participant as a result of their employment or service relationship with the Corporation or a Subsidiary being terminated without Cause (including, for the avoidance of doubt, as a result of any Subsidiary ceasing to be a Subsidiary, as contemplated by Section 7.1(7)): (a) each unvested Option granted to such Participant will terminate and become void immediately upon such termination, and (b) each vested Option held by such Participant will cease to be exercisable on the earlier of (i) 90 days after the Participant's Termination Date (or such later date as the Board may, in its sole discretion, determine) and (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

(3) **Resignation**. Upon a Participant ceasing to be an Eligible Participant as a result of their resignation from the Corporation or a Subsidiary: (a) each unvested Option granted to such Participant will terminate and become void immediately upon such resignation, and (b) each vested Option held by such Participant will cease to be exercisable on the earlier of (i) 90 days after the Participant's Termination Date (or such later date as the Board may, in its sole discretion, determine) and (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

(4) **Retirement/Permanent Disability**. Upon a Participant ceasing to be an Eligible Participant by reason of retirement or permanent disability: (a) each unvested Option granted to such Participant will terminate and become void immediately, and (b) each vested Option held by such Participant will cease to be exercisable on the earlier of (i) 90 days from the date of retirement or the date on which the Participant ceases their employment or service relationship with the Corporation or any Subsidiary by reason of permanent disability (or such later date as the Board may, in its sole discretion, determine) and (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

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(5) **Death**. Upon a Participant ceasing to be an Eligible Participant by reason of death: (a) each unvested Option granted to such Participant will terminate and become void immediately, and (b) each vested Option held by such Participant at the time of death may be exercised by the legal representative of the Participant, provided that any such vested Option will cease to be exercisable on the earlier of (i) the date that is 12 months after the Participant's death or (ii) the Expiry Date of such Option as set forth in the applicable Award Agreement, after which such vested Option will expire.

(6) **Leave of Absence**. Upon a Participant electing a voluntary leave of absence of more than 12 months, including maternity and paternity leaves, the Board may determine, in its sole discretion but subject to Applicable Laws, that such Participant's participation in this Plan will be terminated, provided that all vested Options will remain outstanding and in effect until the applicable exercise date, or such earlier date determined by the Board in its sole discretion. Notwithstanding the foregoing, the Awards granted to such Participant will expire no later than the date that is 12 months from the date that the Participant ceases to be an Eligible Participant.

For greater certainty, in the event of any conflict between the terms of this Plan and the terms of any applicable Employment Agreement, Consulting Agreement or Award Agreement with respect to the time of termination of any Option, the terms of such Employment Agreement, Consulting Agreement or Award Agreement will govern unless prohibited by Applicable Law.

**7.3 General Conditions Applicable to Awards other than Options**

Except as otherwise provided in any Employment Agreement or Consulting Agreement or in any Award Agreement, each Award, other than Options, will be subject to the following conditions:

(1) **Termination for Cause and Resignation**. Upon a Participant ceasing to be an Eligible Participant for Cause or as a result of their resignation from the Corporation or a Subsidiary, the Participant's participation in this Plan will be terminated immediately, all Awards, other than Options, credited to such Participant's Account that have not vested will be forfeited and cancelled, and the Participant's rights that relate to such Participant's unvested Awards will be forfeited and cancelled on the Termination Date.

(2) **Death, Leave of Absence or Termination of Service**. Except as otherwise determined by the Board from time to time, at its sole discretion, upon a Participant electing a voluntary leave of absence of more than 12 months, including maternity and paternity leaves, or upon a Participant ceasing to be an Eligible Participant as a result of such Participant's: (a) death, (b) retirement, (c) Termination of Service for reasons other than for Cause, (d) employment or service relationship with the Corporation being terminated by reason of injury or disability, or (e) being eligible to receive long-term disability benefits, all unvested Awards, other than Options, in the Participant's Account as of such date relating to a Restriction Period in progress will be forfeited and cancelled. Notwithstanding the foregoing, if the Board, in its sole discretion, instead accelerates the vesting or waives vesting conditions with respect to all or some portion of outstanding unvested Awards, other than Options, the date of such action is the Vesting Date, provided that the Awards granted to such Participant will expire no later than the date that is 12 months from the date that the Participant ceases to be an Eligible Participant.

(3) **General**. For greater certainty, where (a) a Participant's employment or service relationship with the Corporation is terminated pursuant to Section 7.3(1) or Section 7.3(2), (b) a Participant elects to take a voluntary leave of absence pursuant to Section 7.3(2), following the satisfaction of all vesting conditions in respect of particular Awards, other than Options, but before receipt of the corresponding distribution or payment in respect of such Awards, the Participant will remain entitled to such distribution or payment.

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For greater certainty, in the event of any conflict between the terms of this Plan and the terms of any applicable Employment Agreement, Consulting Agreement or Award Agreement with respect to the time of termination of any Award, the terms of such Employment Agreement, Consulting Agreement or Award Agreement will govern unless prohibited by Applicable Law.

**ARTICLE 8**<br>**ADJUSTMENTS AND AMENDMENTS**

**8.1 Adjustment to Shares Subject to Outstanding Awards**

At any time after the grant of an Award to a Participant and prior to the expiration of the term of such Award or the forfeiture or cancellation of such Award, in the event of (a) any subdivision of the Shares into a greater number of Shares; (b) any consolidation of the Shares into a lesser number of Shares; (c) any reclassification, reorganization or other change affecting the Shares; (d) any merger, amalgamation, consolidation or other business combination of the Corporation with or into any other Person, or (e) any distribution to all holders of Shares or other securities in the capital of the Corporation of cash, evidences of indebtedness or other assets of the Corporation (excluding an ordinary course dividend in cash or Shares, but including for greater certainty shares or equity interests in a Subsidiary or business unit of the Corporation or one of its Subsidiaries or cash proceeds of the disposition of such a Subsidiary or business unit) or any transaction or change having a similar effect, then the Board will in its sole discretion, subject to the required approval of the Exchange and to Shareholder approval where applicable, determine the appropriate adjustments or substitutions to be made in such circumstances in order to maintain the economic rights of the Participant in respect of such Award in connection with such occurrence or change, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) adjustments to the exercise price of such Award without any change in the total price applicable to the unexercised portion of the Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adjustments to the number of Shares or cash payment to which the Participant is entitled upon exercise or settlement of such Award; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) adjustments to the number or kind of Shares reserved for issuance pursuant to this Plan.

**8.2 Change of Control**

(1) In the event of a potential Change of Control, the Board will have the power, in its sole discretion, subject to Exchange and Shareholder approval, if required, to accelerate the vesting of Options to assist the Participants to tender into a takeover bid or participate in any other transaction leading to a Change of Control. For greater certainty, in the event of a take-over bid or any other transaction leading to a Change of Control, the Board will have the power, in its sole discretion, to (a) provide that any or all Options will thereupon terminate, provided that any such outstanding Options that have vested will remain exercisable until the consummation of such Change of Control, and (b) permit Participants to conditionally exercise their vested Options immediately prior to the consummation of the take-over bid and the Shares issuable under such Options to be tendered to such bid, such conditional exercise to be conditional upon the take-up by such offeror of the Shares or other securities tendered to such take-over bid in accordance with the terms of such take-over bid (or the effectiveness of such other transaction leading to a Change of Control). If, however, the potential Change of Control referred to in this Section 8.2 is not completed within the time specified therein (as the same may be extended), then notwithstanding this Section 8.2 or the definition of "Change of Control": (i) any conditional exercise of vested Options will be deemed to be null, void and of no effect, and such conditionally exercised Options will for all purposes be deemed not to have been exercised, (ii) Shares which were issued pursuant to the exercise of Options which vested pursuant to this Section 8.2 will be returned by the Participant to the Corporation and reinstated as authorized but unissued Shares, and (iii) the original terms applicable to Options which vested pursuant to this Section 8.2 will be reinstated. In the event of a Change of Control, the Board may exercise its discretion to accelerate the vesting of, or waive the Performance Criteria or other vesting conditions applicable to, outstanding Share Units, and the date of such action will be the Vesting Date of such Share Units.

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(2) If the Corporation completes a transaction constituting a Change of Control and within 12 months following the Change of Control a Participant who was also an Officer or Employee of, or Consultant to, the Corporation prior to the Change of Control has their Employment Agreement or Consulting Agreement terminated, then: (a) all unvested Options granted to such Participant will immediately vest and become exercisable, and remain open for exercise until the earlier of (i) their Expiry Date as set out in the applicable Award Agreement, and (ii) the date that is 90 days after such termination or dismissal; and (b) all unvested Share Units will become vested, and the date of such Participant's Termination Date will be deemed to be the Vesting Date.

**8.3 Initial Approval, Amendment or Discontinuance of this Plan**

(1) Prior to its implementation by the Corporation, this Plan is subject to approval by the Exchange and the Shareholders and thereafter this Plan must be approved by Shareholders and the Exchange on an annual basis.

(2) The Corporation may grant Awards under this Plan prior to obtaining the initial approval of the Exchange and Shareholders required in Section 8.3(1), however no Award that is granted or issued under this Plan may be exercised by the holder thereof until this Plan has been approved by the Exchange and all such grants of Awards approved by the Shareholders at an annual general or special meeting of Shareholders.

(3) The Board may amend this Plan or any Award at any time without the consent of the Participants, provided that such amendment will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not adversely alter or impair the rights of any Participant, without the consent of such Participant, except as permitted by the provisions of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be in compliance with Applicable Law (including Code Section 409A and the provisions of the ITA, to the extent applicable), and subject to any regulatory approvals where required, including the approval of the Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be subject to Shareholder approval to the extent such approval is required by Applicable Law or the requirements of the Exchange, provided that the Board may, from time to time, in its absolute discretion and without approval of the Shareholders, make the following amendments:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any amendment necessary to comply with Applicable Law (including taxation laws) or the requirements of the Exchange or any other regulatory body to which the Corporation is subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any amendment of a "housekeeping" nature, including, without limitation, amending the wording of any provision of this Plan for the purpose of clarifying the meaning of existing provisions or to correct or supplement any provision of this Plan that is inconsistent with any other provision of this Plan, correcting grammatical or typographical errors and amending the definitions contained within this Plan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any amendment regarding the administration or implementation of this Plan.

(4) Notwithstanding Section 8.3(3)(c), the Board will be required to obtain Shareholder approval, including, if required by the Exchange, Disinterested Shareholder Approval, to make any amendment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the maximum percentage or number of Shares that may be reserved for issuance pursuant to the exercise or settlement of Awards granted under this Plan, including an increase to the maximum percentage of Shares or a change from a fixed maximum percentage of Shares to a fixed maximum number of Shares or vice versa, except in the event of an adjustment pursuant to Section 8.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) which reduces the exercise price of any Award, as applicable, after such Award has been granted or any cancellation of an Award and the replacement of such Award with an Award with a lower exercise price or other entitlements, except in the event of an adjustment pursuant to Section 8.1; provided, however, that, for greater certainty, Disinterested Shareholder Approval will be required for any amendment which reduces the exercise price of any Option if the Participant is an Insider at the time of the proposed amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to Section 3.5, to the maximum term of any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) which extends the Expiry Date of any Award, or the Restriction Period of any Share Unit beyond the original Expiry Date or Restriction Period, except in the event of an extension due to a Blackout Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) which would permit Awards granted under this Plan to be transferable or assignable other than for normal estate settlement purposes as allowed by Section 7.1(6);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to the definition of an Eligible Participant under this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) that results in a benefit to an Insider, which shall require Disinterested Shareholder Approval, and for further clarity, if the Corporation cancels any Awards and within one year grants or issues new Awards to the same Person, that is considered an amendment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) to the participation limits set out in Section 2.5; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to this Section 8.3 of this Plan;

(5) The Board may, by resolution, but subject to applicable regulatory approvals, decide that any of the provisions hereof concerning the effect of termination of the Participant's employment or engagement will not apply for any reason acceptable to the Board.

(6) The Board may, subject to any required regulatory or Exchange approvals, discontinue this Plan at any time without the consent of the Participants provided that such discontinuance will not materially and adversely affect any Awards previously granted to a Participant under this Plan.

**ARTICLE 9**<br>**MISCELLANEOUS**

**9.1 Use of an Administrative Agent** 

The Board may, in its sole discretion, appoint from time to time one or more entities to act as administrative agent to administer the Awards granted under this Plan and to hold and administer the assets that may be held in respect of Awards granted under this Plan, the whole in accordance with the terms and conditions determined by the Board in its sole discretion. The Corporation and the administrative agent will maintain records showing the number of Awards granted to each Participant under this Plan.

**9.2 Tax Withholding**

Notwithstanding any other provision of this Plan and subject to Policy 4.4 of the Exchange, all distributions, delivery of Shares and/or payments to a Participant (or its legal representative) under this Plan will be made net of any applicable withholdings, including in respect of Applicable Withholding Taxes, as the Corporation or Employer determines. Subject to Policy 4.4 of the Exchange, if the event giving rise to the withholding obligation involves an issuance or delivery of Shares, then the withholding obligation may be satisfied in such manner as the Corporation or Employer determines, including: (a) by the sale of a portion of such Shares by the Corporation, the Corporation's transfer agent and registrar or any trustee appointed by the Corporation pursuant to Section 9.1, on behalf of and as agent for the Participant, as soon as permissible and practicable, with the proceeds of such sale being used to satisfy any withholding and remittance obligations of the Corporation (and any remaining proceeds, following such withholding and remittance, to be paid to the Participant); (b) by requiring the Participant, as a condition of receiving such Shares, to pay to the Corporation or Employer an amount in cash sufficient to satisfy such withholding; or (c) any other mechanism as may be required or determined by the Corporation or Employer as appropriate.

**9.3 Clawback**

Notwithstanding any other provision of this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange requirement), or any policy adopted by the Company. The Board may provide that any outstanding Awards (whether or not vested or exercisable) and the proceeds from the exercise or disposition of any Awards, or Shares acquired under Awards, will be subject to forfeiture and disgorgement to the Company, with interest and other related earnings, if the Participant to whom the Award was granted violates: (a) any non-competition, non-solicitation, confidentiality or other restrictive covenant by which the Participant is bound, or (b) any policy adopted by the Company applicable to the Participant that provides for forfeiture or disgorgement with respect to incentive compensation that includes Awards under the Plan. In addition, the Board may require forfeiture and disgorgement to the Company of outstanding Awards, and the proceeds from the exercise or disposition of Awards or Shares acquired under Awards, with interest and other related earnings, to the extent required by law or applicable stock exchange standards, including any related policy adopted by the Company. Each Participant, by accepting or being deemed to have accepted an Award under this Plan, agrees to cooperate fully with the Board, and to cause any and all permitted transferees of the Participant to cooperate fully with the Board, to effectuate any forfeiture or disgorgement required under this Plan. Neither the Board, the Company, nor any other Person, other than the Participant and the Participant's permitted transferees, if any, will be responsible for any adverse tax or other consequences to a Participant or the Participant's permitted transferees, if any, that may arise in connection with this Section 9.3.

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**9.4 Securities Law Compliance**

(1) This Plan (including any amendments to it), the terms of the grant of any Award, the grant of any Award, the exercise of any Option, the delivery of any Shares upon exercise or settlement of any Award, or the Corporation's election to deliver Shares in settlement of any Share Units, SARs or DSUs, will be subject to all applicable federal, provincial, state and foreign laws, rules and regulations, the rules and regulations of applicable Exchanges and to such approvals by any regulatory or governmental agency as may, as determined by the Corporation, be required. The Corporation will not be obliged by any provision of this Plan, or the grant or settlement of any Award, or exercise of any Option under this Plan to issue, sell or deliver Shares in violation of such laws, rules and regulations or any condition of such approvals.

(2) No Awards will be granted, and no Shares will be issued, sold or delivered pursuant to this Plan, where such grant, issue, sale or delivery would require registration of this Plan or of the Shares under the securities laws of any jurisdiction or the filing of any prospectus for the qualification of same thereunder, and any purported grant of any Award or purported issue or sale of Shares in violation of this provision will be void.

(3) Shares issued, sold or delivered to Participants under this Plan may be subject to limitations on sale or resale under Applicable Securities Laws and/or certain hold periods required by the Exchange.

(4) If Shares cannot be issued to a Participant upon the exercise of an Option due to legal or regulatory restrictions, the obligation of the Corporation to issue such Shares will terminate and any funds paid to the Corporation in connection with the exercise of such Option will be returned to the applicable Participant as soon as practicable.

(5) With respect to Awards granted in the United States or to U.S. Persons or at such time as the Corporation ceases to be a "foreign private issuer" (as defined under the U.S. Securities Act), unless the Shares which may be issued upon the exercise or settlement of such Awards are registered under the U.S. Securities Act, the Awards granted and any Shares that may be issuable upon the exercise or settlement of such Awards will be considered "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act). Accordingly, any such Awards or Shares issued prior to an effective registration statement filed with the SEC may not be transferred, sold, assigned, pledged, hypothecated or otherwise disposed by the Participant, directly or indirectly, without registration under the U.S. Securities Act and applicable state securities laws or unless in compliance with an available exemption therefrom (the "**U.S. Resale Restrictions**"). In addition to U.S. Resale Restrictions, such Awards granted in the United States or to U.S. Persons shall be subject to any hold periods required by the Exchange and, in addition to the legend described in this Section 9.4(5), endorsed with a legend in the form prescribed by the Exchange. Certificate(s) representing the Awards and any Shares issued upon the exercise or settlement of such Awards prior to an effective registration statement filed with the SEC, and all certificate(s) issued in exchange therefor or in substitution thereof, will be endorsed with the following or a similar legend until such time as it is no longer required under the applicable requirements of the U.S. Securities Act:

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"THE SECURITIES REPRESENTED HEREBY [for Awards add: AND ANY SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER. HEDGING TRANSACTIONS INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT.‎"

**9.5 Reorganization of the Corporation**

The existence of any Awards will not affect in any way the right or power of the Corporation or its Shareholders to make or authorize any adjustment, reclassification, recapitalization, reorganization or other change in the Corporation's capital structure or its business, or any amalgamation, combination, merger or consolidation involving the Corporation or to create or issue any bonds, debentures, Shares or other securities of the Corporation or the rights and conditions attaching thereto or to affect the dissolution or liquidation of the Corporation or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar nature or otherwise.

**9.6 Quotation of Shares**

So long as the Shares are listed on one or more Exchanges, the Corporation must apply to such Exchange or Exchanges for the listing or quotation, as applicable, of the Shares underlying the Awards granted under this Plan, however, the Corporation cannot guarantee that such Shares will be listed or quoted on any Exchange.

**9.7 Governing Laws**

This Plan and all matters to which reference is made in this Plan will be governed by and interpreted in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

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**9.8 Severability**

The invalidity or unenforceability of any provision of this Plan will not affect the validity or enforceability of any other provision and any invalid or unenforceable provision will be severed from this Plan.

**9.9 Code Section 409A**

It is intended that any payments under this Plan to U.S. Taxpayers will be exempt from or comply with Code Section 409A, and all provisions of this Plan will be construed and interpreted in a manner consistent with the requirements for avoiding taxes and penalties under Code Section 409A. Solely to the extent that Awards of a U.S. Taxpayer are determined to be subject to Code Section 409A, the following will apply with respect to the rights and benefits of U.S. Taxpayers under this Plan:

(1) Except as permitted under Code Section 409A, any deferred compensation (within the meaning of Code Section 409A) payable to or for the benefit of a U.S. Taxpayer may not be reduced by, or offset against, any amount owing by the U.S. Taxpayer to the Corporation or any of its Affiliates.

(2) Subject to the terms of this Plan, if a U.S. Taxpayer becomes entitled to receive payment in respect of any Share Units or any DSUs that are subject to Code Section 409A, as a result of their Separation from Service and the U.S. Taxpayer is a "specified Employee" (within the meaning of Code Section 409A) at the time of their Separation from Service, and the Board makes a good faith determination that (a) all or a portion of the Share Units or DSUs constitute "deferred compensation" (within the meaning of Code Section 409A) and (b) any such deferred compensation that would otherwise be payable during the six-month period following such Separation from Service is required to be delayed pursuant to the six-month delay rule set forth in Code Section 409A in order to avoid taxes or penalties under Code Section 409A, then payment of such "deferred compensation" will not be made to the U.S. Taxpayer before the date which is six months after the date of their Separation from Service (and will be paid in a single lump sum on the first day of the seventh month following the date of such Separation from Service) or, if earlier, the U.S. Taxpayer's date of death.

(3) A U.S. Taxpayer's status as a "specified Employee" (within the meaning of Code Section 409A) will be determined by the Corporation as required by Code Section 409A on a basis consistent with Code Section 409A and such basis for determination will be consistently applied to all plans, programs, contracts, agreements, etc. maintained by the Corporation that are subject to Code Section 409A.

(4) Although the Corporation intends that Share Units will be exempt from Code Section 409A or will comply with Code Section 409A, and that DSUs will comply with Code Section 409A, the Corporation makes no assurances that the Share Units will be exempt from Code Section 409A or will comply with it. Each U.S. Taxpayer, any Beneficiary or the U.S. Taxpayer's estate, as the case may be, is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of such U.S. Taxpayer in connection with this Plan (including any taxes and penalties under Code Section 409A), and neither the Corporation nor any Subsidiary will have any obligation to indemnify or otherwise hold such U.S. Taxpayer or Beneficiary or the U.S. Taxpayer's estate harmless from any or all of such taxes or penalties.

(5) In the event that the Board determines that any amounts payable under this Plan will be taxable to a Participant under Code Section 409A prior to payment to such Participant of such amount, the Corporation may, subject to any requirements for Shareholder approval set out in the Exchange Rules, (a) adopt such amendments to this Plan and Share Units and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Board determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Plan and Share Units under this Plan and/or (b) take such other actions as the Board determines necessary or appropriate to avoid or limit the imposition of an additional tax under Code Section 409A.

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(6) In the event the Corporation amends, suspends or terminates this Plan or Share Units as permitted under this Plan, such amendment, suspension or termination will be undertaken in a manner that does not result in adverse tax consequences under Code Section 409A.

**9.10 Effective Date of this Plan**

This Plan will become effective upon a date to be determined by the Board.

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**EXHIBIT "A"**<br>**TO OMNIBUS EQUITY INCENTIVE PLAN OF SANDBOX ROYALTIES CORP.** 

<u>**FORM OF OPTION AGREEMENT**</u>

This Option Agreement (this "**Agreement**") is entered into as of **[date]** between Sandbox Royalties Corp. (the "**Corporation**") and the Participant (as defined below) pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached to this Agreement, and confirms that on:

1. __________________ (the "**Grant Date**"),

2. __________________ (the "**Participant**")

3. was granted _________________________ options ("**Options**") to purchase common shares in the capital from treasury of the Corporation (each, a "**Share**"), in accordance with the terms of the Plan, which Options will bear the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Exercise Price and Expiry</u>. Subject to the vesting conditions specified below, the Options will be exercisable by the Participant at a price of CAD$**[●]** per Share (the "**Option Price**") at any time prior to expiry on **[●]** (the "**Expiry Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting; Time of Exercise</u>. Subject to the terms of the Plan, the Options will vest and become exercisable as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp; **Number of Options** | &nbsp;&nbsp; **Vested On** |

---

If the aggregate number of Shares vesting in a tranche set forth above includes a fractional Share, the aggregate number of Shares will be rounded down to the nearest whole number of Shares. Notwithstanding anything to the contrary in this Agreement, the Options will expire on the Expiry Date set forth above and must be exercised, if at all, on or before the Expiry Date. Options are denominated in Canadian dollars (CAD$).

4. The Options will be exercisable only by delivery to the Corporation of a duly completed and executed notice in the form attached to this Agreement (the "**Exercise Notice**"), together with (a) payment of the Option Price for each Share covered by the Exercise Notice, and (b) payment of any withholding taxes as required in accordance with the terms of the Exercise Notice. Any such payment to the Corporation will be made by certified cheque or wire transfer in readily available funds.

5. Subject to the terms of the Plan, the Options specified in an Exercise Notice will be deemed to be exercised upon receipt by the Corporation of such written Exercise Notice, together with the payment of all amounts required to be paid by the Participant to the Corporation pursuant to Section 4 of this Agreement.

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6. The Participant represents and warrants to the Corporation (on the date of this Agreement and upon each exercise of Options) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Participant has not received any offering memorandum, or any other documents (other than annual financial statements, interim financial statements or any other document the content of which is prescribed by statute or regulation, other than an offering memorandum) describing the business and affairs of the Corporation that has been prepared for delivery to, and review by, a prospective purchaser in order to assist it in making an investment decision in respect of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Participant is acquiring the Shares without the requirement for the delivery of a prospectus or offering memorandum, pursuant to an exemption under applicable securities legislation and, as a consequence, is restricted from relying upon the civil remedies otherwise available under applicable securities legislation and may not receive information that would otherwise be required to be provided to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Participant has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the Corporation and does not desire to utilize a registrant in connection with evaluating such merits and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Participant acknowledges that an investment in the Shares involves a high degree of risk, and represents that it understands the economic risks of such investment and is able to bear the economic risks of this investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Participant is responsible for paying any applicable taxes and withholding taxes arising from the exercise of any Options, as provided in Section 9.2 of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) this Agreement constitutes a legal, valid and binding obligation of the Participant, enforceable against the Participant in accordance with its terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the execution and delivery of this Agreement and the performance of the obligations of the Participant under this Agreement will not result in the creation or imposition of any lien, charge or encumbrance upon the Shares.

The Participant acknowledges that the Corporation is relying upon such representations and warranties in granting the Options and issuing any Shares upon exercise thereof.

7. The Participant: (a) acknowledges and represents that the Participant fully understands and agrees to be bound by the terms and provisions of this Agreement and the Plan; (b) agrees and acknowledges that the Participant has received a copy of the Plan and that the terms of the Plan form part of this Agreement, and (c) accepts these Options subject to all of the terms and provisions hereof and of the Plan. [To the extent of any inconsistency between the terms of this Agreement and those of the Plan, the terms of the Plan will govern]. The Participant has reviewed this Agreement and the Plan, and has had an opportunity to obtain the advice of counsel prior to executing this Agreement.

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8. This Agreement and the terms of the Plan (including any Exercise Notice delivered in connection with the exercise of any Options) constitute the entire agreement of the Corporation and the Participant (collectively, the "**Parties**") with respect to the Options and supersede in their entirety all prior undertakings and agreements of the Parties with respect to the subject matter of this Agreement, and may not be modified adversely to the Participant's interest except by means of a writing signed by the Parties. This Agreement and the terms of the Plan incorporated in this Agreement are to be construed in accordance with and governed by the laws of the Province of British Columbia. Should any provision of this Agreement or the Plan be determined by a court of law to be illegal or unenforceable, such provision will be enforced to the fullest extent allowed by law and the other provisions will nevertheless remain effective and will remain enforceable.

9. In accordance with Section 9.4(5) of the Plan, if the Options and the underlying Shares are not registered under the United States *Securities Act of 1933*, as amended (the "**U.S. Securities Act**"), or any state securities laws, the Options may not be exercised in the United States or by U.S. Persons unless an exemption from the registration requirements of the U.S. Securities Act is available. Any Shares issued to Option holders in the United States that have not been registered under the U.S. Securities Act will be deemed "restricted securities" (as defined in Rule 144(a)(3) of the U.S. Securities Act) and bear a restrictive legend to such effect.

All capitalized terms used but not otherwise defined in this Agreement will have the meaning given in the Plan.

**[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]**

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**IN WITNESS WHEREOF** the Parties have executed this Agreement as of the date first set out above. <br>

Per: 

 Authorized Signatory

 **[NAME OF PARTICIPANT]** **[Name of Authorized Signatory:** ●]

 **[Title of Authorized Signatory:** ●]

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to delivery an executed copy of this Agreement by such date will result in the cancellation of your Options.

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<u>**FORM OF OPTION EXERCISE NOTICE**</u>

**TO: SANDBOX ROYALTIES CORP.**<br>

This Exercise Notice is made in reference to the Omnibus Equity Incentive Plan (the "**Plan**") of Sandbox Royalties Corp. (the "**Corporation**").

The undersigned (the "**Participant**") holds options ("**Options**") under the Plan to purchase **●** common shares of the Corporation (each, a "**Share**") at a price per Share of CAD$**●** (the "**Option Price**") pursuant to the terms and conditions set out in that certain option agreement between the Participant and the Corporation dated **●** (the "**Agreement**"). The Participant confirms the representations and warranties contained in the Agreement.

The Participant hereby irrevocably gives notice of the exercise of __________ Options held by the Participant pursuant to the Agreement at the Option Price, for an aggregate exercise price of CAD$__________ (the "**Aggregate Option Price**"), on the terms specified in the Agreement and encloses herewith a certified cheque payable to the Corporation or evidence of wire transfer to the Corporation in full satisfaction of the Aggregate Option Price.

The Participant acknowledges and agrees that: (i) in addition to the Aggregate Option Price, the Corporation may require the Participant to also provide the Corporation with a certified cheque or evidence of wire transfer equal to the amount of any Applicable Withholding Taxes associated with the exercise of such Options, before the Corporation will issue any Shares to the Participant in settlement of the Options; and (ii) the Corporation will have the sole discretion to determine the amount of any Applicable Withholding Taxes associated with the exercise of such Options, and will inform the Participant of such amount as soon as reasonably practicable upon receipt of this completed Exercise Notice.

**Registration:**

The Shares issued pursuant to this Exercise Notice are to be registered in the name of the undersigned and are to be delivered, as directed below:

Name:   <br>Address:  

<u><br></u>   <br> Date Name of Participant

<br>  <br> Signature of Participant

------

**EXHIBIT "B"**<br>**TO OMNIBUS EQUITY INCENTIVE PLAN OF SANDBOX ROYALTIES CORP.**

<u>**FORM OF SHARE APPRECIATION RIGHT AGREEMENT**</u>

This Share Appreciation Right Agreement (this "**Agreement**") is entered into as of **[date]** between Sandbox Royalties Corp. (the "**Corporation**") and the Participant (as defined below) pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached to this Agreement, and confirms that on:

1. __________________ (the "**Grant Date**"),

2. __________________ (the "**Participant**")

3. was granted _________________________ share appreciation rights ("**SARs**") in accordance with the terms of the Plan, which SARs will bear the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Settlement Price</u>. Subject to the vesting conditions specified below, the SARs will have a Base Value of CAD$● per Share and shall be settled by the Corporation by the payment of cash, issuance of Shares or a combination thereof (as determined by the Corporation in its discretion), having an aggregate value equal to the Appreciation Value of the SARs to be settled, after deduction of any Applicable Withholding Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting</u>. Subject to the terms of the Plan, the SARs will vest as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Number of SARs** | &nbsp;&nbsp; **Vesting Date / Condition** |

---

If the aggregate number of Shares vesting in a tranche set forth above includes a fractional Share, the aggregate number of Shares will be rounded down to the nearest whole number of Shares.

4. The Participant represents and warrants to the Corporation (on the date of this Agreement and upon each settlement of the SARs granted pursuant to this Agreement) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Participant has not received any offering memorandum or any other document describing the business and affairs of the Corporation that has been prepared for delivery to, and review by, a prospective purchaser in order to assist it in making an investment decision in respect of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Participant is acquiring the SARs and any underlying Shares, if any, without the requirement for the delivery of a prospectus or offering memorandum pursuant to an exemption under applicable securities laws and, as a consequence, is restricted from relying upon the civil remedies otherwise available under applicable securities laws, and may not receive information that would otherwise be required to be provided to it;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Participant has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the Corporation and does not desire to utilize a registrant in connection with evaluating such merits and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Participant acknowledges that an investment in the Shares involves a high degree of risk, and represents that it understands the economic risks of such investment and is able to bear the economic risks of this investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Participant acknowledges that the Participant is responsible for paying any applicable taxes, including withholding taxes, arising from or with respect to the settlement of any SARs, and the sale of any Shares acquired in connection with such settlement, if any, as provided in Section 9.2 of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) this Agreement constitutes a legal, valid and binding obligation of the Participant, enforceable against the Participant in accordance with its terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the execution and delivery of this Agreement and the performance by the Participant of its obligations under this Agreement will not result in the creation or imposition of any lien, charge or encumbrance upon the Shares.

The Participant acknowledges that the Corporation is relying upon such representations and warranties in granting the SARs and paying any cash and/or issuing any Shares upon settlement of any SARs.

5. The Participant: (a) acknowledges and represents that the Participant fully understands and agrees to be bound by the terms and provisions of this Agreement and the Plan; (b) agrees and acknowledges that the Participant has received a copy of the Plan and that the terms of the Plan form part of this Agreement, and (c) accepts the SARs subject to all of the terms and provisions of this Agreement and of the Plan. [If there is any inconsistency between the terms of this Agreement and those of the Plan, the terms of the Plan will govern]. The Participant has reviewed this Agreement and the Plan, and has had an opportunity to obtain the advice of counsel prior to executing this Agreement.

6. This Agreement and the Plan constitute the entire agreement of the Corporation and the Participant (collectively, the "**Parties**") with respect to the SARs and supersede in their entirety all prior undertakings and agreements of the Parties with respect to the subject matter of this Agreement, and may not be modified adversely to the Participant's interest except by means of a writing signed by the Parties. This Agreement and the terms of the Plan are to be construed in accordance with and governed by the laws of the Province of British Columbia. Should any provision of this Agreement or the Plan be determined by a court of law to be illegal or unenforceable, such provision will be enforced to the fullest extent allowed by law and the other provisions will nevertheless remain effective and will remain enforceable.

7. In accordance with Section 9.4(5) of the Plan, if the SARs and any Shares that may be issued upon settlement of the SARs are not registered under the United States *Securities Act of 1933*, as amended (the "**U.S. Securities Act**"), or any applicable state securities laws, the SARs may not be settled by the issuance of Shares in the United States or by U.S. Persons, unless an exemption from the registration requirements of the U.S. Securities Act is available. If the Participant is a U.S. Person or is in the United States, any Shares issued to the Participant that have not been registered under the U.S. Securities Act will be deemed "restricted securities" (as defined in Rule 144(a)(3) of the U.S. Securities Act) and bear a restrictive legend to such effect.

------

All capitalized terms used but not otherwise defined in this Agreement will have the meaning given in the Plan.

**[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]**

------

**IN WITNESS WHEREOF** the Parties have executed this Agreement as of the date first set out above. <br>

Per: 

 Authorized Signatory

 **[NAME OF PARTICIPANT]** **[Name of Authorized Signatory:** ●]

 **[Title of Authorized Signatory:** ●]

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to return an executed copy of this Agreement by such time will result in the cancellation of your SARs.

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**EXHIBIT "C"**<br>**TO OMNIBUS EQUITY INCENTIVE PLAN OF SANDBOX ROYALTIES CORP.**

<u>**FORM OF SHARE UNIT AGREEMENT**</u>

This Share Unit Agreement (this "**Agreement**") is entered into between Sandbox Royalties Corp. (the "**Corporation**") and the Participant (as defined below) as of **[date]**, pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached to this Agreement, and confirms that on:

1. __________________________________ (the "**Grant Date**"),

2. __________________________________ (the "**Participant**")

3. was granted _________________________ Share Units (the "**Share Units**") in accordance with the terms of the Plan, which Share Units will vest as follows:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Number of Share Units** | &nbsp;&nbsp; **Time Vesting**<br>**Conditions** | &nbsp;&nbsp; **Performance Vesting Conditions** |

---

all on the terms and subject to the conditions set out in the Plan.

4. The Share Units granted hereunder are **[Cash-or-Share Settled Share Units]** <u>**OR**</u> **[Share-Settled Share Units]. [Sandbox to select wording to reflect which is applicable]** 

5. Subject to the terms and conditions of the Plan, the Performance Period for any performance-based Share Units commences on the Grant Date and ends at the close of business on **[●]** (the "**Performance Period**"), while the restriction period for any time-based Share Units commences on the Grant Date and ends at the close of business on **[●]** (the "**Restriction Period**"). Subject to the terms and conditions of the Plan, the Share Units will be redeemed and settled 15 days after the applicable Vesting Date, all in accordance with the terms of the Plan.

6. By signing this Agreement, the Participant acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Participant has read and understands the Plan and agrees with the terms and conditions of the Plan, which terms and conditions are incorporated into and form part of this Agreement (subject to any specific variations contained in this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to the vesting and other conditions and provisions in this Agreement and the Plan, each Share Unit will entitle the Participant to receive on settlement a payment described in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Participant is responsible for paying any applicable taxes, including withholding taxes, arising from the vesting and redemption of any Share Unit, including any Shares issued in connection with such redemption, as determined by the Corporation in its sole discretion;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Share Units do not carry any voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the value of the Share Units is denominated in Canadian dollars (CAD$) and such value is not guaranteed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in the sole discretion of the Corporation, the Plan can be administered by a designee of the Corporation by virtue of Section 2.2 of the Plan and any communication from or to the designee will be deemed to be from or to the Corporation.

7. The Participant: (a) acknowledges and represents that the Participant fully understands and agrees to be bound by the terms and provisions of this Agreement and the Plan; (b) agrees and acknowledges that the Participant has received a copy of the Plan and that the terms of the Plan form part of this Agreement, and (c) accepts the Share Units subject to all of the terms and provisions of this Agreement and the Plan. [If there is any inconsistency between the terms of this Agreement and those of the Plan, the terms of the Plan will govern]. The Participant has reviewed this Agreement and the Plan and has had an opportunity to obtain the advice of counsel prior to executing this Agreement.

8. This Agreement and the terms of the Plan constitute the entire agreement of the Corporation and the Participant (collectively, the "**Parties**") with respect to the Share Units and supersede in their entirety all prior undertakings and agreements of the Parties with respect to the subject matter of this Agreement. This Agreement may not be modified adversely to the Participant's interest except by mutual written consent of the Parties. This Agreement and the terms of the Plan are to be construed in accordance with and governed by the laws of the Province of British Columbia. Should any provision of this Agreement or the Plan be determined by a court of law to be illegal or unenforceable, such provision will be enforced to the fullest extent allowed by law and the other provisions will nevertheless remain effective and will remain enforceable.

9. In accordance with Section 9.4(5) of the Plan, unless the Shares that may be issued upon the settlement of vested Share Units are registered under the United States *Securities Act of 1933*, as amended (the "**U.S. Securities Act**"), and any applicable state securities laws, such Shares may not be issued in the United States or to U.S. Persons, unless an exemption from the registration requirements of the U.S. Securities Act is available. Any Shares issued to a Participant in the United States that have not been registered under the U.S. Securities Act will be deemed "restricted securities" (as defined in Rule 144(a)(3) of the U.S. Securities Act) and bear a restrictive legend to such effect.

All capitalized terms used but not otherwise defined in this Agreement will have the meaning given in the Plan.

**[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]**

------

**IN WITNESS WHEREOF** the Parties have executed this Agreement as of the date first set out above. <br>

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| | |
|:---|:---|
| **SANDBOX ROYALTIES CORP.** | **SANDBOX ROYALTIES CORP.** |
| Per: |  |
|  | Authorized Signatory |
|  | &nbsp;&nbsp;**[NAME OF PARTICIPANT]** |

---

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to acknowledge acceptance of this grant will result in the cancellation of your Share Units.

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**EXHIBIT "D"**<br>**TO OMNIBUS EQUITY INCENTIVE PLAN OF SANDBOX ROYALTIES CORP.**

<u>**FORM OF DEFERRED SHARE UNIT AGREEMENT**</u>

This DSU Agreement (this "**Agreement**") is entered into as of **[date]** between Sandbox Royalties Corp. (the "**Corporation**") and the Participant (as defined below), pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached to this Agreement, and confirms that on:

1. __________________________________ (the "**Grant Date**"),

2. __________________________________ (the "**Participant**")

3. was granted _________________ deferred share units ("**DSUs**"), in accordance with the terms of the Plan.

4. The DSUs subject to this Agreement [are fully vested] [will become vested as follows: _________________].

5. Subject to the terms of the Plan, the settlement of the DSUs, in cash (or, at the election of the Corporation, in Shares or a combination of cash and Shares), will be payable to the Participant, net of any Applicable Withholding Taxes in accordance with the Plan, not later than December 15<sup>th</sup> of the first calendar year commencing immediately after the Termination Date, provided that if the Participant is a U.S. Taxpayer, the settlement will be as soon as administratively feasible following the Participant's Separation from Service. If the Participant is both a U.S. Taxpayer and a Canadian Participant, the settlement of the DSUs will be subject to the provisions of Section 6.5(1) of the Plan.

6. By signing this agreement, the Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acknowledges that the Participant has read and understands the Plan and agrees with the terms and conditions of the Plan, which terms and conditions are incorporated into and form part of this Agreement (subject to any specific variations contained in this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) acknowledges that the Participant is responsible for paying any applicable taxes, including withholding taxes, arising from the vesting and redemption of any DSU, as determined by the Corporation in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees that the DSUs do not carry any voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) acknowledges that the value of the DSUs is denominated in Canadian dollars (CAD$), and such value is not guaranteed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) recognizes that, in the sole discretion of the Corporation, the Plan can be administered by a designee of the Corporation by virtue of Section 2.2 of the Plan and any communication from or to the designee will be deemed to be from or to the Corporation.

7. The Participant: (a) acknowledges and represents that the Participant fully understands and agrees to be bound by the terms and provisions of this Agreement and the Plan; (b) agrees and acknowledges that the Participant has received a copy of the Plan and that the terms of the Plan form part of this Agreement, and (c) accepts the DSUs subject to all of the terms and provisions of this Agreement and of the Plan. [If there is any inconsistency between the terms of this Agreement and the Plan, the terms of the Plan will govern]. The Participant has reviewed this Agreement and the Plan, and has had an opportunity to obtain the advice of counsel prior to executing this Agreement.

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8. This Agreement and the Plan constitute the entire agreement of the Corporation and the Participant (collectively, the "**Parties**") with respect to the DSUs and supersede in their entirety all prior undertakings and agreements of the Parties with respect to the DSUs. This Agreement may not be modified adversely to the Participant's interest except by mutual written consent of the Parties. This Agreement and the terms of the Plan are to be construed in accordance with and governed by the laws of the Province of British Columbia. Should any provision of this Agreement or the Plan be determined by a court of law to be illegal or unenforceable, such provision will be enforced to the fullest extent allowed by law and the other provisions will nevertheless remain effective and will remain enforceable.

9. In accordance with Section 9.4(5) of the Plan, unless the Shares that may be issued upon the settlement of the DSUs are registered under the United States *Securities Act of 1933*, as amended (the "**U.S. Securities Act**"), and any applicable state securities laws, such Shares may not be issued in the United States or to U.S. Persons, unless an exemption from the registration requirements of the U.S. Securities Act is available. Any Shares issued to a Participant in the United States that have not been registered under the U.S. Securities Act will be deemed "restricted securities" (as defined in Rule 144(a)(3) of the U.S. Securities Act) and bear a restrictive legend to such effect.

All capitalized terms used but not otherwise defined in this Agreement will have the meaning given in the Plan.

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**[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]**

**IN WITNESS WHEREOF** the Parties have executed this Agreement as of the date first set out above. <br>

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| | |
|:---|:---|
| **SANDBOX ROYALTIES CORP.** | **SANDBOX ROYALTIES CORP.** |
| Per: |  |
|  | Authorized Signatory |
|  | &nbsp;&nbsp; **[NAME OF PARTICIPANT]** |

---

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to acknowledge acceptance of this grant will result in the cancellation of your DSUs.

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**EXHIBIT "E"**<br>**TO OMNIBUS EQUITY INCENTIVE PLAN OF SANDBOX ROYALTIES CORP.**

<u>**FORM OF SHARE-SETTLED SHARE UNIT DEFERRED SETTLEMENT ELECTION**</u>

This Share-Settled Share Unit Deferred Settlement Election (this "**Election**") is provided by the Participant noted below to Sandbox Royalties Corp. (the "**Corporation**") as of **[date]**, pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"). All capitalized terms used but not otherwise defined in this Election will have the meaning given in the Plan.

Pursuant to Section 5.6(4) of the Plan, the undersigned hereby elects to defer the Redemption Date in respect of the following Share-Settled Share Units:

[number] Share-Settled Share Units which have a Vesting Date of [insert date].

By signing this Election, the Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acknowledges that the Participant has read and understands the Plan and agrees with the terms and conditions of the Plan, including as to the making of this Election, which terms and conditions are incorporated into and form part of this Election;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) acknowledges that this Election is valid only if provided to the Corporation not later than 30 days prior to the Vesting Date for the Share-Settled Share Units designated above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) confirms that this Election does not apply in respect of any Cash-or-Share Settled Share Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) acknowledges that this Election is irrevocable in respect of the calendar year in which it is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) confirms that the Participant is responsible for providing written notice to the Corporation of the Participant's revocation of this Election;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) acknowledges that, by virtue of making this Election, the Redemption Date for the Share-Settled Share Units designated above will be the date that is the earlier of: (a) the 15th day following the date that the Participant has informed, in writing, the Corporation of the revocation of his or her Election (or, if such day is not a Business Day, on the immediately following Business Day); and (b) the Termination Date of the Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) acknowledges that the value of the Shares to be issued to the Participant on the Redemption Date of the Share-Settled Share Units designated above is not guaranteed and may decrease in value from the Vesting Date of such Share-Settled Share Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) acknowledges and confirms that the Corporation is not providing any tax or legal advice to the Participant in respect of the tax or other implications of making this Election and that the Participant has had the opportunity to receive independent tax advice.

<br>**[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]** <br>

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&nbsp;&nbsp; **[NAME OF PARTICIPANT]**<br>

------