# EDGAR Filing Document

**Accession Number:** 0001898722
**File Stem:** 0001213900-23-019246
**Filing Date:** 2023-3
**Character Count:** 839313
**Document Hash:** 2a83fdaa72a7d656c8569d4e67280655
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-019246.hdr.sgml**: 20230614

**ACCESSION NUMBER**: 0001213900-23-019246

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 25

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Modern Mining Technology Corp.
- **CENTRAL INDEX KEY:** 0001898722
- **STANDARD INDUSTRIAL CLASSIFICATION:** REFUSE SYSTEMS [4953]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-06452
- **FILM NUMBER:** 23724580

**BUSINESS ADDRESS:**
- **STREET 1:** 1500 - 1055 WEST GEORGIA STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6E 4N7
- **BUSINESS PHONE:** 604-418-3856

**MAIL ADDRESS:**
- **STREET 1:** 1500 - 1055 WEST GEORGIA STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6E 4N7

**CONFIDENTIAL TREATMENT REQUESTED<br>As confidentially submitted to the U.S. Securities and Exchange Commission on March 10, 2023.<br>This Draft Registration Statement has not been filed publicly with the U.S. Securities and Exchange Commission and all information contained herein remains strictly confidential.**

**Registration No. 333-** 

#### UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549

#### ________________________

#### AMENDMENT NO. 2 <br>TO<br>FORM F-1<br>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

#### ________________________

#### Modern Mining Technology Corp.<br> (Exact name of Registrant as specified in its charter)

#### ________________________

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| | | |
|:---|:---|:---|
|  **British Columbia, Canada** | **5093** | **Not Applicable** |
|  **(State or other jurisdiction of<br>incorporation or organization)** | **(Primary Standard Industrial<br>Classification Code Number)** | **(I.R.S. Employer<br>Identification No.)** |

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**Modern Mining Technology Corp.<br>1055 West Georgia Street, 1500 Royal Centre<br>Vancouver, British Columbia, V6E 4N7, Canada<br>Tel: +1 (604) 418**-3856**<br>(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)**

**Cogency Global Inc.<br>122 East 42**<sup>nd</sup> **Street, 18**<sup>th</sup> **Floor<br>New York, NY 10168<br>Tel: +1 (212) 947**-7200**<br>(Name, address, including zip code, and telephone number, including area code, of agent for service)**

***With copies to:***

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Mark C. Lee<br>Juan J. Grana<br>Rimon, P.C.<br>423 Washington Street, Suite 600<br>San Francisco, California 94111<br>Tel: +1 (916) 603 3444** | **Thomas A. Fenton<br>Aird & Berlis LLP<br>Brookfield Place, 181 Bay Street, Suite 1800<br>Toronto, Canada M5J 2T9<br>Tel: +1 (416) 865**-4631 | **Virgil Hlus<br>Clark Wilson, LLP<br>900**-885 **West Georgia Street<br>Vancouver, British Columbia V6C 3H1<br>Tel: +1 (604) 687**-5700 |

---

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this registration statement becomes effective.

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

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

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

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

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

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 7(a)(2)(B) of the Securities Act. ☐

____________

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.**

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

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| | | |
|:---|:---|:---|
|  **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION** | **DATED MARCH 10, 2023** |

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#### Common Shares
 **Modern Mining Technology Corp.**<br>

This is firm commitment initial public offering of our Common Shares. Prior to this offering, there has been no public market for our Common Shares. We anticipate that the initial public offering price of our shares will be between $ and $.

We intend to apply to list our Common Shares for listing on under the symbol " ".

We are organized under the laws of the Province of British Columbia and are an "emerging growth company", as defined in the Jumpstart Our Business Start-ups Act of 2012, under applicable U.S. federal securities laws, and are eligible for reduced public company reporting requirements. See "Prospectus Summary — Emerging Growth Company Status."

**Investing in our securities is highly speculative and involves a high degree of risk. See "Risk Factors" beginning on page 12. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
|  Offering Price | $| $|
|  Underwriting discounts and commissions<sup>(1)</sup> | $| $|
|  Proceeds to us, before expenses | $| $|

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(1) See "Underwriting" for additional information regarding compensation payable to the underwriters.

We have granted a 45-day option to the representative of the underwriters to purchase up to additional Common Shares solely to cover over-allotments, if any.

The underwriters expect to deliver the shares to purchasers on or about .

#### ThinkEquity
The date of this Prospectus is .

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#T19) | iii |
|  [PROSPECTUS SUMMARY](#T18) | 1 |
|  [THE OFFERING](#T17) | 10 |
|  [RISK FACTORS](#T16) | 12 |
|  [USE OF PROCEEDS](#T15) | 29 |
|  [DIVIDEND POLICY](#T14) | 31 |
|  [DILUTION](#T13) | 33 |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#T9950) | 35 |
|  [BUSINESS](#T21122) | 43 |
|  [MANAGEMENT](#T12) | 52 |
|  [EXECUTIVE COMPENSATION](#T11) | 57 |
|  [PRINCIPAL SHAREHOLDERS](#T10) | 63 |
|  [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#T9) | 66 |
|  [SECURITIES ELIGIBLE FOR FUTURE SALE](#T8) | 76 |
|  [MATERIAL TAX CONSIDERATIONS](#T7) | 78 |
|  [UNDERWRITING](#T6) | 87 |
|  [EXPENSES RELATED TO THE OFFERING](#T5) | 96 |
|  [LEGAL MATTERS](#T4) | 97 |
|  [EXPERTS](#T3) | 97 |
|  [ENFORCEABILITY OF CIVIL LIABILITIES](#T2) | 97 |
|  [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#T1) | 98 |
|  [INDEX TO FINANCIAL STATEMENTS](#T70) | F-1 |

---

**You should rely only on the information contained in this Prospectus. Neither we nor the Underwriters have authorized anyone to provide you with information that is different, and neither we nor the Underwriters take any responsibility for, or provide any assurance as to the reliability of, any information, other than the information in this Prospectus. We are offering to sell our securities, and seeking offers to buy our securities, only in jurisdictions where such offers and sales are permitted. This Prospectus is not an offer to sell, or a solicitation of an offer to buy, our securities in any jurisdictions where, or under any circumstances under which, the offer, sale, or solicitation is not permitted. In particular, our securities have not been qualified for distribution by prospectus in Canada and may not be offered or sold in Canada during the course of their distribution hereunder except pursuant to a Canadian prospectus or prospectus exemption. The information in this Prospectus is accurate only as of the date on its respective cover, regardless of the time of delivery of this Prospectus or the time of any sale of our securities. Our business, results of operations, financial condition, or prospects may have changed since those dates.**

**Before you invest in our securities, you should read the registration statement (including the exhibits thereto and the documents incorporated by reference therein) of which this Prospectus forms a part.**

**For investors outside of the United States:** Neither we nor the Underwriters have done anything that would permit this Offering, or the possession or distribution of this Prospectus, in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about, and observe any restrictions relating to, this Offering and the distribution of this Prospectus.

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#### ABOUT THIS PROSPECTUS
As used in this prospectus (the "**Prospectus**"), unless the context otherwise requires or otherwise states, references to "Modern Mining," the "Company," "we," "us," "our," and similar references refer to Modern Mining Technology Corp., a corporation formed under the laws of the Province of British Columbia, Canada, and its subsidiaries.

Our functional currency and reporting currency is the Canadian dollar, the legal currency of Canada ("**C$**"). The functional and reporting currency of Urban Mining International Inc., our US wholly-owned subsidiary, is the U.S. dollar, the legal currency of the United States ("**US$**"). Unless noted otherwise, all references to dollars herein are to US$.

#### INTERNATIONAL FINANCIAL REPORTING STANDARDS
Our financial statements are prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board. Our fiscal year ends on December 31 of each year as does our reporting year. Our most recent fiscal year ended on December 31, 2021. See Notes 2 and 3 to our audited consolidated financial statements for the years ended December 31, 2021 and 2020, and Notes 2 and 3 to our unaudited condensed consolidated interim financial statements for the six months ended June 30, 2022 and 2021, included elsewhere in this Prospectus, for a discussion of the basis of presentation, functional currency and summary of significant accounting policies.

We have made rounding adjustments to some of the figures included in this Prospectus. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them.

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#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Various statements contained in this Prospectus, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning our possible or assumed future results of operations, financial condition, business strategies and plans, market opportunity, competitive position, industry environment, and potential growth opportunities. In some cases, you can identify forward-looking statements by terms such as "may", "will", "should", "believe", "expect", "could", "intend", "plan", "anticipate", "estimate", "continue", "predict", "project", "potential", "target," "goal" or other words that convey the uncertainty of future events or outcomes. You can also identify forward-looking statements by discussions of strategy, plans or intentions. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, because forward-looking statements relate to matters that have not yet occurred, they are inherently subject to significant business, competitive, economic, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These and other important factors, including, among others, those discussed in this Prospectus under the headings "*Risk Factors*", "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Business*", may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements in this Prospectus. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this Prospectus include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are an early-stage company with limited operating history and may never become profitable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our revenue depends on maintaining and increasing feedstock of E-Waste (as defined herein) supply commitments as well as securing new customers and off-take agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in addition to commodity prices, our revenues will be primarily driven by the volume and composition of E-Waste feedstock materials to be processed at our future facilities and changes in the volume or composition of E-Waste feedstock processed could significantly impact our revenues and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our success will depend on our ability to economically source, extract and recover E-Waste, and to meet the market demand for sustainable and environmentally driven solutions for E-Waste processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not be able to successfully implement our growth strategy, on a timely basis or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development of our Greenville, North Carolina facility, and future projects, if any, are subject to risks, including with respect to engineering, permitting, procurement, construction, commissioning and ramp-up, and we cannot guarantee that these projects will be completed in a timely manner, that our costs will not be significantly higher than estimated, or that the completed projects will meet expectations with respect to their productivity or the specifications of their and products, among others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to manage future growth effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to materially increase recycling capacity and efficiency could have a material adverse effect on our business, results of operations or financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future acquisitions and strategic investments could be difficult to integrate, diver the attention of key management personnel, disrupt our business, dilute shareholder value, and harm our results of operations and financial conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expanding internationally involves risks that could delay our expansion plans and/or prohibit us from entering markets in certain jurisdictions, which could have a material adverse effect on our results of operations.

Given the foregoing risks and uncertainties, you are cautioned not to place undue reliance on the forward-looking statements in this Prospectus. The forward-looking statements contained in this Prospectus are not guarantees of future performance, and our actual results of operations and financial condition may differ materially from such forward-looking statements. In addition, even if our results of operations and financial condition are consistent with the forward-looking statements in this Prospectus, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this Prospectus speaks only as of the date of this Prospectus. Except as required by applicable law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements in this Prospectus, whether as a result of new information, future events or otherwise, after the date of this Prospectus.

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#### PROSPECTUS SUMMARY
***This summary highlights selected information presented in greater detail elsewhere in this Prospectus. This summary does not include all the information you should consider before investing in our securities. You should read this summary together with the more detailed information appearing elsewhere in this Prospectus, including our audited and unaudited financial statements and related notes and the sections entitled "Risk Factors" on page 12 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" elsewhere in this Prospectus. Some of the statements in this summary and elsewhere in this Prospectus constitute forward***-looking ***statements. See "Cautionary Note Regarding Forward***-Looking ***Statements."***

#### Our Company
Modern Mining Technology Corp. (formerly known as Urban Mining International Inc.) is a "landfill-to-commodity" focused business venture, offering a cleaner, safer, and lower-cost alternative compared to traditional mining operations. Our core business is aimed at processing and extracting strategic commodities from the vast, growing, and largely ignored global resource of electronic waste ("**E**-Waste"), and transforming these end-of-life landfill-bound materials into high-value resources. Value is captured by using our aqueous based processes to recover, process and refine commodity metals such as: gold, palladium, silver, copper and potentially 30 other metals.

#### Our Market
Our market consists of two parts — E-Waste feed supply and produced commodity sales.

E-Waste Feed Supply

The report, entitled *Global E*-Waste *Monitor 2020* (the "**Report**"), provides that the world dumped a staggering 53.6 million tonnes of E-Waste in 2019 alone — equivalent to the weight of 250,000 jumbo jets. The Report also predicts global E-Waste will reach 74 million tonnes annually by 2030. The Report further indicates that approximately $57 billion worth of gold, silver, copper, platinum and other high-value, recoverable materials were wasted through landfill dumping or incineration burning, rather than being collected for treatment and reuse. It is Modern Mining's business objective to address this situation and recover lost commodity materials from this E-Waste.

Commodity Sales

*The Journal of Management Science and Engineering*<sup>1</sup> (the "**Journal**") also produced findings that the cost to recycle E-Waste is significantly less than the cost of traditional mining. Lower production costs is a strategic advantage compared to traditional commodity producers. In addition to an increasing world demand for commodities, a number of large companies have announced their planned roadmaps to a more socially responsible supply chain. For example, in 2017, Apple announced its intention to use only renewable or recyclable materials in its products while, in 2021, Dell announced its goal of making more than 50% of their products content with recycled or renewable material. These are two examples of a growing trend of companies being more aware of their supply chains.

#### Our Business, Our Products and Services

____________

1 See *Comparing the Costs and Benefits of Virgin and Urban Mining*; Zeng, Xia et al.

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To achieve our objectives, we have developed a two-step propriety process while our envisioned value-chain can be broken down into 3 main steps:

1) We secure quality E-Waste feedstock from primary recyclers.

2) We separate the plastics from the metals using our proprietary pre-concentration methods. The plastics are then sold to downstream third-party recyclers and suppliers.

3) The concentrated metals streams are treated though our proprietary aqueous purification process, and the metal products are then sold into industrial supply chains.

The following depicts the Company's three main processing steps:

We plan to sell final products produced by the APP on the metal commodities markets into both domestic and international supply chains.

We have engaged a third-party process modelling and industrial optimization firm to assist in layout optimization, three dimensional ("**3D**") modelling, and dynamic simulation studies on our first commercial scale PCP and APP. These plants will be co-located in our future commercial facility in North Carolina. Our current Greenville facility presently serves only as a pilot and demonstration plant that we intend to use to continue to optimize our recovery processes that we ultimately plan to move to commercial scale production at a future location. In the long-term, we intend to secure a larger facility in the Raleigh or Greenville area of North Carolina to serve as our commercial-scale production facility although such future facility has yet to be identified as our current pilot plant facility still has significant capacity that we foresee being adequate in the short-term. The commercial PCP will be designed to treat approximately 8,000 tonnes of E-Waste per year and the commercial APP will be designed to be able to process concentrate from up to four PCPs.

After build-out of our initial PCP and APP plants (expected to take approximately 18 months inclusive of a 6 month commissioning period), we believe that we can be a commercial producer of commodity materials, supplying both domestic and international supply chains with strategic metals within 12 months of completion of the initial 18 month build-out phase. The processes we have developed for recycling E-Waste are environmentally beneficial compared to material going to landfill. Furthermore, we believe that the design of our proprietary processes (PCP and APP) will allow for the ability to scale and grow our business, and take advantage of a worldwide resource, E-Waste.

#### Our Competitive Strengths
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Combining Four Core Market Trends***

Modern Mining anticipates benefiting from the overlap of four core market trends: (a) the growing global demand for commodity metals; (b) the importance of strengthening local and domestic supply chains; (c) the importance of developing sustainable and environmentally friendly driven solutions to support a 'circular' economy; and (d) the increasing importance of hedging against inflationary pressures.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Benefit from Proprietary Technology***

We have developed proprietary technologies that we believe set us apart from other E-Waste processors and from other commodity producers. We believe that our two-step approach of regional pre-concentration and centralized purification, combined with our modular and scalable design, will reduce capital and operating costs and will allow for a rapid expansion into other future potential major E-Waste generating locations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Designed to Comply with Government Mandates***

Due to our anticipated high recovery rates and sustainable, environmentally friendly processes, and non-toxic effluent, we believe we are well-positioned to comply with environmental guidelines around the world.

Our e-waste recycling processes are environmentally friendly and do not generate any significant gaseous, liquid, or solids emissions only noise, air borne dust, and sewer discharges at this time. Our pre-concentration processes are purely water based with no chemical addition, and our purification methods utilize controlled aqueous based reagent blends in connection with our refined metal production. To that end, we have noise control and dust control systems in place and we currently use a closed-loop water recirculation system to manage effluent discharge. We envision that we will be well positioned to meet any environmental guidelines around the world when and if we expand our operations from our current facility in Greenville, North Carolina.

Global environmental guidelines that may be applicable to our operations include (a) the Basel Convention, which monitors the transboundary movements of hazardous and other wastes; (b) the UN Sustainable Development Goals encompassing e-waste, such as SDG 6, which covers clean waste and sanitation and; (c) E-Waste legislation implemented around the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Superior to Current Standard E***-Waste ***Recycling Processes***

We believe that our business plan sets us apart from others in the industry, in particular given our ability to be one of the non-carbon generating processors in the space with our proprietary aqueous based pre-concentration and purification technologies, versus the incineration-based methods of others in the industry. Incineration methods are extremely energy intensive methods<sup>2</sup>. The plastics are burned off resulting in major carbon dioxide and other hazardous emissions. Attempts to separate metals using pyrometallurgical methods result in significant metal losses as not all metals can be economically recovered. Modern Mining's process, being aqueous-based, is largely carbon neutral, safer for both workers and for the environment, and allows for the recovery of a broader range of metals as separation and recovery is driven by physical methods and simple reagent addition, not complex pyrometallurgy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Decreased Risk Profile***

Traditional exploration and mining projects are inherently layered with significant risk as a consequence of having to deal with the earth's crust and all of its natural variability. Major risks include: (a) exploration risk (the success rate of making a new discovery is low); (b) geological risk (the made grades of newly discovered deposits are generally decreasing); (c) engineering risk (the nature of newly discovered deposits is complex) and (d) geopolitical risk (various commodity resources are hosted in politically unstable and hostile jurisdictions).

In contrast, E-Waste is a man-made engineered product. It contains a very prescriptive blend and known quantity of strategic metals. As a result, the processing of E-Waste carries negligible exploration, geological, and geopolitical risk. Furthermore, as industry standard payment terms for our feedstock E-Waste are linked to the proportions of metals recovered, the impact and risk of fluctuating commodity prices are reduced as well. Feedstock E-Waste also delivers 100 times better<sup>3</sup> grades than traditional mined ores and the processing of E-Waste carries less than 1/80<sup>th</sup> the capital expenditures<sup>4</sup> of a traditional gold mine.

____________

2 See *Value*-Added *Products From Thermochemical Treatments of Contained E*-Waste *Plastics*, Das, Gabriel, Tay and Lee.

3 See *S&P Capital IQ data* publicly available which reports grade and tonnage values for the reserves and resources of every active primary gold mine currently in production across the world up to the date May 25, 2022. The average gold grade of global reserves and resources is approximately 1.29 g/t Au. We anticipate the average grade of our feedstock to be approximately136 g/t Au, which represents a grade 100 times better than traditional mined ores like gold.

4 See *S&P Capital IQ data* publicly available. The average capital expenditure for every primary gold project in North America between January 2021 and May 2022 is approximately $425 million. Our estimated capital expenditure costs are anticipated to be between $5 million and $5.5 million, yielding a figure of 1/80<sup>th</sup> the capital expenditure of traditional ore mines.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Availability of Supply***

The amount of E-Waste produced by the world in 2016 was approximately 50 million tonnes<sup>5</sup>. With 5% of that E-Waste being printed circuit boards ("**PCBs**'), that amounts to 2.5 million tonnes of potential feedstock, of which only 17.4% is currently being recycled. At our current plant design capacity of approximately 8,000 tonnes per PCP, capturing "wasted" E-Waste would require over 250 concentrator plants.

We currently have non-binding letters of intent to secure one and one-half times the quantity of feedstock needed to operate our initial PCP at 100% capacity, however, there are no guaranteed obligations for such suppliers to provide any amount of such feedstock to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Positioned to Benefit from Raising Commodity Prices***

We further believe we are positioned to benefit from any rise in commodity metal prices for our recovered metals: Gold, Silver, Copper, Platinum and Palladium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Continuous Process Research and Development Plans***

We plan to have a continuing research and development program. This program will have two main goals. The first goal will be to optimize our proprietary processes to increase recoveries and reduce costs. The second goal will be to expand our core technology to be able to recover additional metals and to be able to process additional types of E-Waste feedstock.

#### Our Growth Strategy
The Company intends to expand its footprint to other locations around the United States and internationally so that multiple concentrator plants are strategically located geographically near major third-party, primary recycling facilities, significantly reducing raw material transportation costs. Our plan is that the first additional PCPs will feed into the initial APP in North Carolina. Expansion of our aqueous purification capacity will be undertaken as material supply and economics dictate.

#### Our North Carolina Plant
We recently surrendered our existing research and development facility lease containing roughly 3,500 square feet of effective working space in Raleigh, North Carolina, as we look to expand our growth and operations. In September 2022, we secured a new facility lease containing approximately 10,000 square feet of effective working space in nearby Greenville, North Carolina to serve as our pilot plant facility.

It is anticipated that this facility will allow us to operate at approximately 10% of the processing capacity envisioned for our future planned commercial-scale plant. We intend to use this facility to house both our pilot PCP and APP equipment. We intend to operate our pilot plant as needed for the following business purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To demonstrate the operability and scalability of our full end-to-end process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To generate additional operating data for detailed engineering and scale-up studies for our commercial plant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To conduct process expansion studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To optimize the performance objectives of our technology; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To serve as an operations training platform to help streamline the commissioning and start-up activities of our commercial plant.

We elected to make North Carolina our U.S. processing home as a logical extension of our past local research efforts, favorable incentives, proximity to major logistics networks, and direct access to some of the world's largest supplies of E-Waste through proximity to the densely populated eastern U.S. seaboard.

In the long-term, we intend to secure a larger facility in the Raleigh or Greenville area of North Carolina to serve as our commercial-scale production facility although such future facility has yet to be identified as our current pilot plant facility still has significant capacity that we foresee being adequate in the short-term.

____________

5 See *Waste Printed Circuit Board Recycling: Conventional and Emerging Technology Approach*, Muammer Kaya.

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#### Company Information
The Company was incorporated under the laws of the Province of British Columbia, Canada, as 1285896 B.C. Ltd, on January 26, 2021. In connection with the completion of the Merger (as defined below), the Company changed its name to its current name, "Modern Mining Technology Corp.", on September 1, 2021.

Urban Mining International Inc. ("**UMI**"), our US wholly-owned subsidiary, was formed under the laws of the State of Delaware. UMI was first incorporated on August 8, 2017, under the name "Evotus Inc.". UMI changed its name from "Evotus Inc." to "Urban Mining International Inc." on October 14, 2020. On December 13, 2021, UMI changed its name from "Urban Mining International Inc." to "Modern Mining Technology Corp.".

Our principal executive office and mailing address is located at 1055 West Georgia Street, 1500 Royal Centre, Vancouver, British Columbia, Canada V6E 4N7, and our telephone number is 604-418-3856. Our website is *www.modernmining.com*. The information contained on our website or accessible through our website is not incorporated into this Prospectus.

#### Background
In March 2021, UMI and Fortuna Advisors Ltd. ("**Fortuna**"), a private company with offices in Vancouver, British Columbia, Canada engaged in due diligence and preliminary discussions regarding a possible business combination transaction. In connection with such discussions, on or around May 5, 2021, UMI and Fortuna entered into a non-binding letter of intent. Negotiation regarding the Merger Agreement (as defined below) and related matters commenced thereafter and continued until the merger agreement between UMI, the Company and Urban Mining Merger Sub, Inc. ("**Merger Sub**"), a Delaware corporation and wholly-owned subsidiary of the Company, was executed on August 18, 2021, as amended on August 27, 2021 (the "**Merger Agreement**").

In connection with the Merger (as defined below), on August 19, 2021, the board of directors of UMI unanimously: (a) approved the consummation of the Merger and the transactions contemplated therein; and (b) determined that the Merger was in the best interests of UMI and its stakeholders. On August 23, 2021, the shareholders of UMI approved the Merger.

Pursuant to the Merger Agreement, on September 1, 2021, Merger Sub merged with and into UMI, with UMI continuing as a wholly-owned U.S. subsidiary of the Company (the "**Merger**"). UMI then changed its name to Modern Mining Technology Corp. on December 8, 2021.

Prior to the completion of the Merger, UMI consolidated its outstanding common shares on a 3 for 1 basis effective August 25, 2021 (the "**Consolidation**") and accordingly, 21,868,905 common shares were consolidated into 7,289,635 common shares. Upon completion of the Merger, all such shares of UMI were exchanged into 7,289,635 Common Shares.

The current corporate structure of the Company is as follows:

#### Recent Developments
Prior to, and following, the Merger, the Company has raised capital to fund its operations.

With effect as of March 1, 2022, Kuljit (Jeet) Basi was appointed the President and Chief Executive Officer of the Company and Basil Botha, the Company's former President, Chief Executive Officer and a director of the Company, transitioned into a new role with the Company as its Principal Technical Advisor. In addition, on this same day, Olga Balanovskaya was appointed as the Company's Chief Financial Officer.

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On April 7, 2022, the Company issued (herein, the "**Debenture Offering**") $3,331,390 principal amount of 5% unsecured convertible debentures ("**Debentures**") in a private placement. The Debentures were issued pursuant to an indenture made as of April 7, 2022 (the "**Debenture Indenture**") between the Company and Computershare Trust Company of Canada ("**Computershare**") as trustee. The Debenture Indenture contains customary provisions typically found in an instrument of this type including, among other things, mechanisms for the holding of Debenture holder meetings. The Debentures rank *pari*-passu with each other series of Debentures issued pursuant to the Debenture Indenture. The Debentures bear interest at five percent (5%) per annum and are unsecured obligations of the Company. The Debentures are due thirty-six (36) months following their issuance on April 7, 2025. The Debenture Indenture also provides that in the event the Company completes a U.S. listing, such as this Offering, the principal amount of the Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00, and shall be subject to a six (6) month hold period from the closing of the Offering.

On July 13, 2022, the Company entered into an Investor Rights Agreement (the "**Investor Rights Agreement**") with Kuljit (Jeet) Basi, our Chief Executive Officer, serving as representative (the "**Warrantholder Representative**") of the holders of the Investor Rights Warrants (as defined herein). The Investor Rights Warrants were issued at $0.0083 for total proceeds of $137,365 (CAD$173,250). Each Investor Rights Warrant allows the owner to purchase one share at $0.20 (CAD$0.25) for three (3) years from the closing of this Offering. The Investor Rights Warrants (including any Common Shares issuable thereunder) are subject to further restrictions such that they will be released from lock-up six (6) months following the closing of the Offering.

Pursuant to the Investor Rights Agreement, the Company agreed that each Investor (as defined in the Investor Rights Agreement) shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote on any matter at any meetings of shareholders of the Company. Each Investor Rights Warrant entitles the holder thereof to one vote per Investor Rights Warrant. Further, the Warrantholder Representative shall be entitled to nominate three (3) directors to the Board, provided that each director nominee shall be a Canadian resident and shall meet the requirements of applicable corporate, securities and other laws. The Investor Rights Agreement will terminate upon completion of the Offering, and consequently, the voting rights granted under the Investor Rights Agreement to the holders of the Investor Rights Warrants will also terminate at such time.

On August 31, 2022, the Company entered into an Investor Rights Agreement (the "**Convertible Debentures IRA**") with Kuljit (Jeet) Basi, our Chief Executive Officer, serving as representative (the "**Convertible Debenture Holder Representative**") of the holders of the Convertible Debentures. Pursuant to the Convertible Debentures IRA, the Company agreed that each Investor (as defined in the Convertible Debentures IRA) shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote on any matter at any meetings of shareholders of the Company. Assuming an Offering Price of $, which would be the midpoint of the offering price range on the front of this Prospectus, each $ of Convertible Debentures will equal to one Common Share, entitling the holder thereof to one vote.

On September 21, 2022, the Company entered into a lease agreement with Grand Ventures, LLC, a North Carolina limited liability company, for the lease of the Company's North Carolina facility for E-Waste feedstock processing. The lease term is for three years, with a right to extend for three additional one year terms. Annual rent during the first three lease years is $120,000, payable in monthly installments of $10,000. This is subject to adjustment upon extension of the lease term. A security deposit in the amount of $30,000 was paid upon execution of the lease and will be returned without interest at the end of the term, or upon the earlier termination within the conditions of this lease.

In connection with the Company's operations, as it builds out its commercial production facility and ramps up operations of that facility, the Company currently anticipates needing up to 8,000 tonnes of feedstock per annum. Although the Company currently has non-binding letters of intent for 12,000 tonnes of feedstock and it believes the availability of such feedstock will be assured, it cannot be assured of the cost or pricing of such feedstock as, like other commodities, pricing is subject to the fluctuations of the supply and demand of such feedstock.

#### Recent Developments Since November 2022
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All of the key demonstration-scale PCP equipment has been installed, energized, and commissioned at our pilot plant Greenville facility. Updates on each of the 6 units operations in our pre-concentration process are provided below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Feedstock Storage: we have procured and received roughly 5,000lbs of printed circuit board (PCB) feedstock for commissioning.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Transfer conveyor: this unit is operational and will be used to safely feed the PCB feedstock into our pre-shredding machine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Pre-shredding: we have processed roughly 500lbs of PCB feedstock through our pre-shredding unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Milling: we have processed approximately 100lbs of shredded feedstock through our mill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Primary Pre-concentration: we have processed roughly 50lbs of milled feedstock through our separation unit, and generated approximately 20lbs of MSC. Assay results with respect to MSC quality and overall metal recovery are in-progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Water recirculation: almost all of the water used in the pre-concentration process is recovered, recycled, and re-used, and we have not discharged any water to-date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All of our pilot APP equipment (previously in storage) has also been relocated to our Greenville facility, and is currently in the process of being installed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We plan to continue conducting trial runs at our pilot plant Greenville facility throughout the upcoming weeks and months.

#### Recent Developments Since January 2023
Updates on the units operations in our pre-concentration process are provided below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Feedstock Storage: we have procured an additional 5,000 lbs. of printed circuit board (PCB) feedstock for commissioning, bringing our total to 10,000 lbs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Dismantling: we have installed a dismantling station to allow us to accept more whole feedstock and a broader range of electronic items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Depopulation: we have installed a de-populating station to allow us pre-sort and upgrade our feedstock ahead of shredding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Primary Pre-concentration: we have processed roughly 1,000 lbs. of milled feedstock through our separation unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Test Results: mass and metallurgical balances from the unoptimized, single-pass, open-circuit primary pre-concentration tests performed in the pilot plant in December 2022 revealed copper recovery values ranging from 85% to 98%. These result are in-line with the overall performance objectives envisioned for our future commercial plant as referenced on page 46 of *Our Business, Our Products, Our Services*.

<u>**<u>Summary of Risks Related to Our Business and Industry</u>**</u>

There are a number of risks that you should carefully consider before making an investment decision regarding this Offering. These risks are discussed more fully in the section entitled "***Risk Factors***" beginning on page 12 of this Prospectus. You should read and carefully consider these risks and all of the other information in this Prospectus, including the financial statements and the related notes thereto included in this Prospectus, before deciding whether to invest in our securities. If any of these risks actually occur, our business, financial condition, operating results and cash flows could be materially and adversely affected. In such case, the trading price of our securities would likely decline, and you may lose all or part of your investment. These risk factors include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are an early-stage company with limited operating history and may never become profitable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our revenue depends on maintaining and increasing feedstock of E-Waste supply commitments as well as securing new customers and off-take agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in addition to commodity prices, our revenues will be primarily driven by the volume and composition of E-Waste feedstock materials to be processed at our future facilities and changes in the volume or composition of E-Waste feedstock processed could significantly impact our revenues and results of operations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our success will depend on our ability to economically source, extract and recover E-Waste, and to meet the market demand for sustainable and environmentally driven solutions for E-Waste processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not be able to successfully implement our growth strategy, on a timely basis or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development of our Greenville, North Carolina facility, and any future projects are subject to risks, including with respect to engineering, permitting, procurement, construction, commissioning and ramp-up, and we cannot guarantee that these projects will be completed in a timely manner, that our costs will not be significantly higher than estimated, or that the completed projects will meet expectations with respect to their productivity or the specifications of their and products, among others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to manage future growth effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to materially increase recycling capacity and efficiency could have a material adverse effect on our business, results of operations or financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future acquisitions and strategic investments could be difficult to integrate, diver the attention of key management personnel, disrupt our business, dilute shareholder value, and harm our results of operations and financial conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expanding internationally involves risks that could delay our expansion plans and/or prohibit us from entering markets in certain jurisdictions, which could have a material adverse effect on our results of operations.

<u>**<u>Implications of Being an Emerging Growth Company and a Foreign Private Issuer</u>**</u>

We are an "emerging growth company", as defined in Section 2(a) of the Securities Act of 1933, as amended (the "**Securities Act**"), as modified by the Jumpstart Our Business Start-ups Act of 2012 (the "**JOBS Act**"). As such, we are eligible to take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to reporting companies that make filings with the U.S. Securities and Exchange Commission (the "**SEC**"). For so long as we remain an emerging growth company, we will not be required to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• present more than two years of audited financial statements and two years of related management's discussion and analysis of financial condition and results of operations disclosure in our registration statement of which this Prospectus forms a part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 (the "**Sarbanes**-Oxley **Act**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disclose certain executive compensation related items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seek shareholder non-binding advisory votes on certain executive compensation matters and golden parachute arrangements, to the extent applicable to our Company as a foreign private issuer.

We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the completion of this Offering, (ii) the last day of the fiscal year during which we have total annual gross revenue of at least $1.07 billion, (iii) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), which means the market value of our Common Shares that are held by non-affiliates exceeds $700.0 million as of the last business day of our most recently completed second fiscal quarter, and (iv) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

In addition, upon the consummation of this Offering, we will report in accordance with the rules and regulations applicable to a "**foreign private issuer**." As a foreign private issuer, we will take advantage of certain provisions under the rules that allow us to follow the applicable laws of the Province of British Columbia for certain corporate governance matters. Even when we no longer qualify as an emerging growth company, as long as we continue to qualify as a foreign private issuer under the Exchange Act, we will be exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations with respect to a security registered under the Exchange Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, and current reports on Form 8-K upon the occurrence of specified significant events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulation Fair Disclosure ("**Regulation FD**"), which regulates selective disclosures of material information by issuers.

As a foreign private issuer, we will have four months after the end of each fiscal year to file our annual report on Form 20-F with the SEC. In addition, our executive officers, directors, and principal shareholders will be exempt from the requirements to report transactions in our equity securities and from the short-swing profit liability provisions contained in Section 16 of the Exchange Act.

Foreign private issuers, like emerging growth companies, are exempt from certain more stringent executive compensation disclosure rules. As such, even when we no longer qualify as an emerging growth company, as long as we continue to qualify as a foreign private issuer under the Exchange Act, we will continue to be exempt from the more stringent compensation disclosures required of public companies that are not foreign private issuers.

We may take advantage of these exemptions until such time as we are no longer a foreign private issuer. We are required to determine our status as a foreign private issuer on an annual basis at the end of our second fiscal quarter. We would cease to be a foreign private issuer at such time as more than 50% of our outstanding voting securities are held by U.S. residents and any of the following three circumstances applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the majority of our executive officers or directors are U.S. citizens or residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) more than 50% of our assets are located in the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) our business is administered principally in the United States.

In this Prospectus, we have taken advantage of certain of the reduced reporting requirements as a result of being an emerging growth company and a foreign private issuer. Accordingly, the information that we provide in this Prospectus may be different than the information you may receive from other public companies in which you hold equity interests. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

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#### THE OFFERING

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| | |
|:---|:---|
|  **Common Shares Offered** | • common shares of the Company (each, a "**Common Share**") |
|  **Offering Price** | The assumed public offering price is $ per Common Share, which is the midpoint of the price range set forth on the cover page of this Prospectus. |
|  **Common Shares to be Outstanding Immediately After this Offering** | • Common Shares<sup>(1)</sup>. |
|  **Underwriters Option to Purchase Additional Shares** |  |
|  **Underwriters Option to Purchase Additional Shares** | • Common Shares (which may be purchased from us for 45-days from the date of this Prospectus to cover over-allotments, if any). |
|  **Use of Proceeds** | We estimate that the net proceeds to us from this Offering will be approximately $, assuming an Offering Price of $ per Common Share, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us. We will use these net proceeds for research and development expenses, marketing expenditures, capital expenditures, working capital and general corporate purposes, and such other purposes described in the "***Use of Proceeds***" section of this Prospectus. |
|  **Lock-ups** | Our Company, our directors, executive officers and our existing securityholders have agreed with the Underwriters not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of, or otherwise dispose of, any of our securities for, in the case of our directors and executive officers, a period of twelve (12) months, and in the case of our Company and our existing securityholders, for a period of six (6) months, following the closing of this offering, subject to certain exceptions. See "***Underwriting***" for more information. |
|  **Listing** | We intend to apply for listing of our Common Shares on under the symbol " ". The closing of this offering is contingent upon the successful listing of our Common Shares on . |
|  **Transfer Agent**  | The transfer and co-transfer agent and registrar for our Common Shares is Computershare Investor Services Inc. |
|  **Risk Factors** | **Investing in our securities is highly speculative and involves a high degree of risk**. You should carefully read and consider the information set forth under the heading "***Risk Factors***" beginning on page 12, and all other information contained in this Prospectus, before deciding to invest in our securities. |

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____________

(1) The number of Common Shares to be outstanding immediately after this Offering is based on our Common Shares outstanding as of , 2022. Unless otherwise indicated, all information in this Prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assumes no exercise by the Underwriters of the Over-Allotment Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assumes no exercise of the representative's warrants to be issued upon consummation of this offering at an exercise price equal to 125% of the initial offering price of the Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assumes an initial public offering price of $ per share, which is the midpoint of the estimate of the price range set forth on the cover page of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Excludes: (i) 25,208,116 Common Shares issuable upon exercise of common share purchase warrants outstanding which are exercisable at exercise prices ranging from $0.05 to $0.90 per share, with a weighted average exercise price of $0.21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gives effect to the full conversion of outstanding Debentures into Common Shares, which will convert automatically, as described elsewhere in this Prospectus, upon a U.S. listing, such as this Offering.

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#### Summary Financial Information
*The following tables summarize our audited consolidated financial data for our business for each of the financial years ended December 31, 2021 and 2020 and our unaudited consolidated financial data for our business for the period ended June 30, 2022. Our financial statements are prepared and presented in accordance with International Financial Reporting Standards ("****IFRS****") as issued by the International Accounting Standards Board ("****IASB****"). Our historical results are not necessarily indicative of our future results. You should read this data together with our consolidated financial statements and related notes appearing elsewhere in this prospectus and the information contained under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations."*

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| | | | |
|:---|:---|:---|:---|
|  **Balance Sheet Data:** | **As of June 30, 2022** | **As of June 30, 2022** | **As of June 30, 2022** |
|  | **Actual** | **Pro Forma<sup>(1)</sup>** | **Pro Forma, <br>as Adjusted<sup>(2)</sup>** |
|  Cash and cash equivalents | $2278685 | $| $|
|  Total assets | $2326366 | $| $|
|  Total liabilities | $4167492 | $| $|
|  Total equity (deficit) | $(1841126) | $| $|
|  Total liabilities & equity (deficit) | $2326366 | $| $|

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____________

<sup>(1)</sup> Pro Forma includes conversion of our Debentures into Common Shares in connection with the offering.

<sup>(2)</sup> Pro Forma as Adjusted includes the Pro Forma adjustments set forth above and approximately $___ million net proceeds from the offering after underwriting discounts and fees and offering expenses.

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| | | | | |
|:---|:---|:---|:---|:---|
|  **Statement of Operations Data:** | **For the years <br>ended <br>December 31,** | **For the years <br>ended <br>December 31,** | **For the six months <br>ended <br>June 30,** | **For the six months <br>ended <br>June 30,** |
|  | **2021** | **2020** | **2022** | **2021** |
|  Revenue | $— | $23586 | $— | $— |
|  Cost of sales |  | (51222) |  |  |
|  Gross loss |  | (27636) |  |  |
|  **Expenses** |  |  |  |  |
|  Professional fees | 535161 | 64298 | 386889 | 45938 |
|  Employee cost | 358996 | 168674 | 151341 | 186292 |
|  Share-based compensation | 310950 | 210050 |  | 310950 |
|  Management and director fees | 149661 |  | 223099 |  |
|  Amortization of right-of-use asset | 124665 | 148559 |  | 83389 |
|  General and administration | 75227 | 85645 | 29730 | 15469 |
|  Depreciation expense | 66871 | 76187 |  | 44981 |
|  Rental (lease recovery) | 47618 |  | (10000) |  |
|  Consulting fees | 26724 | 39481 | 289538 | 21062 |
|  Insurance | 26701 | 24523 | 52391 | 9422 |
|  Travel and entertainment | 26577 | 5751 | 29991 | 1472 |
|  Research and development | 13548 | 62023 |  | 13548 |
|  Transfer agent |  |  | 12568 |  |
|  Chemical disposal |  |  | 44962 |  |
|  Foreign exchange | 5380 |  | 347 | 13 |
|  Total Operating Expenses | 1768079 | 885191 | 1210856 | 732536 |
|  Loss from Continuing Operations | (1768079) | (912827) | (1210856) | (732536) |
|  Other Income (Expenses) | (318292) | 222788 | (56592) | (23223) |
|  NET LOSS | (2086371) | (690039) | (1267448) | (755759) |

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#### RISK FACTORS
***An investment in our securities is highly speculative and carries a high degree of risk. We operate in a highly competitive, dynamic and rapidly changing industry that involves numerous risks and uncertainties. You should carefully consider the factors described below, together with all of the other information contained in this Prospectus, including our financial statements and the related notes included in this Prospectus, before deciding whether to invest in our securities. These risk factors are not presented in the order of importance or probability of occurrence. If any of the following risks actually occurs, our business, financial condition and results of operations could be materially and negatively affected. In that event, the market price of our securities could decline, and you could lose part or all of your investment. Additional risks and uncertainties not currently known to us or which we currently deem immaterial may also have a material adverse effect on our business, financial condition and results of operations. Some statements in this Prospectus, including statements in the following risk factors, constitute forward***-looking ***statements. Please refer to the section entitled "Cautionary Note Regarding Forward***-Looking ***Statements."***

<u>***<u>Risks Related to our Business and Industry</u>***</u>

#### We are an early-stage company with limited operating history and may never become profitable.
We are a development stage company with no meaningful commercial revenues and only net losses. For the year ended December 31, 2021, our revenue was $Nil and we recorded a net loss of $2,075,092. For the six months ended June 30, 2022, our revenue was $Nil and we recorded a net loss of $1,237,292. Our primary sources of liquidity are currently the funds raised from the issuance of the offering of the UMI Warrants, the Debenture Offering, and the funds borrowed from Fortuna Investment Corp. and former directors and officers. We expect both our capital and operating expenditures will increase significantly in connection with our ongoing activities.

We expect to require adequate proceeds generated from this Offering and additional funding to expand our operations and develop our sales and distribution channels. However, there can be no assurance that additional funding will be available to us for the development of our business, which will require the commitment of substantial resources. Accordingly, you should consider our prospects in light of the costs, uncertainties, delays and difficulties frequently encountered by companies in the early stages of development. Potential investors should carefully consider the risks and uncertainties that an early-stage company with a very limited operating history will face. In particular, potential investors should consider that we may be unable to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully implement or execute our business plan if our business plan is not sound or for other reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain sufficient and affordable quantities of high quality feedstock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively process the E-Waste we obtain to produce sufficient quantities of commercially saleable commodities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• develop our proposed facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively pursue business opportunities, including potential acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adjust to changing conditions or keep pace with increased demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract and retain an experienced management team; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• raise sufficient funds in the capital markets to effectuate our business plan, including building production capacity.

We believe that our performance and future success is dependent on multiple factors that present significant opportunities for us to increase revenues, but also pose risks and challenges. If we cannot successfully develop, manufacture and distribute our products, or if we experience difficulties in the development process, such as capacity constraints, quality control problems or other disruptions, we may not be able to develop or offer market-ready commercial products at acceptable costs, which would adversely affect our ability to effectively enter the market or expand our market share. A failure by us to achieve a low-cost structure through economies of scale or improvements in cultivation, manufacturing or distribution processes would have a material adverse effect on our commercialization plans and our business, prospects, results of operations and financial condition.

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#### Our revenue depends on obtaining, maintaining and increasing feedstock of E-Waste supply commitments as well as securing new customers and off-take agreements.
We must obtain, maintain and grow our E-Waste feedstock supply commitments as well as new customers (including through entry into off-take agreements for our concentrates) in order to generate revenue. As of the date of this Prospectus, we have no firm commitments for the supply of E-Waste feedstock to our operating facility, and only have non-binding letters of intent from numerous suppliers. Such suppliers have no contractual obligation to provide us any E-waste feedstock for our current operations. Going forward, we may be unable to secure contracts with such E-Waste feedstock vendors and even if we do secure such contracts, E-Waste feedstock suppliers may change or delay supply contracts for any number of reasons, such as force majeure or government approval factors that are unrelated to Modern Mining. Likewise, we do not currently have any off-take agreements for the sale of our products. Even if we do secure such off-take contracts, suppliers may fail to perform under their contracts for similar reasons outline above.

As a result, in order to operate our business, we must develop and obtain feedstock supply and product off-take agreements. However, it is difficult to predict whether and when we will secure such commitments and/or contracts due to competition for suppliers and the lengthy process of negotiating supplier agreements as well as buyer contracts, all of which may be affected by factors that we do not control, such as market and economic conditions, financing arrangements, commodity prices, environmental issues and government approvals.

***In addition to commodity prices, our revenues will be primarily driven by the volume and composition of E-Waste feedstock materials to be processed at our future facilities and changes in the volume or composition of E-Waste feedstock processed could significantly impact our revenues and results of operations.***

Our future revenues depend on processing high volumes of E-Waste feedstock, and our revenues will be directly impacted by the chemistry of the feedstock processed, particularly as market chemistries shift. Certain feedstock chemistries produce raw materials for which we receive higher prices than others. A decline in overall volume of E-Waste feedstock processed, or a decline in volume of chemistries with higher priced content relative to other chemistries, could result in a significant decline in our revenues, which in turn would have a material impact on our results of operations.

***Our success will depend on our ability to economically source, extract, and recover E-Waste, and to meet the market demand for sustainable and environmentally driven solutions for E-Waste processing.***

Our future business depends in large part on our ability to economically and effectively process and recover strategic metals and materials from E-Waste, and to meet the market demand for sustainable and environmentally driven solutions for E-Waste processing. Although we have conducted research and development ("**R&D**") and testing of our proprietary two-step PCP and APP process, we will need to scale our processing capacity in order to successfully implement our growth strategy and plan to do so in the future by, among other things, successfully building and developing our first commercial facility in Greenville, North Carolina. Although we have experience in processing E-Waste materials in our previous facilities, such operations were conducted on a limited scale, and we have not yet developed or operated a facility on a commercial scale to produce and sell end products. We do not know whether we will be able to develop efficient and low-cost processing capabilities, or whether we will be able to secure reliable sources of supply, in each case that will enable us to meet the production standards, costs and volumes required to successfully process E-Waste and meet our business objectives and customer needs. Even if we are successful in high-volume recycling and processing in our future facilities, we do not know whether we will be able to do so in a manner that avoids significant delays and cost overruns, including as a result of factors beyond our control, such as problems with suppliers, or in time to meet the commercialization schedules of future recycling needs or to satisfy the requirements of our customers. Our ability to effectively reduce our cost structure over time is limited by the fixed nature of many of our planned expenses in the near-term, and our ability to reduce long-term expenses is constrained by our need to continue investment in our growth strategy. Any failure to develop and scale such manufacturing processes and capabilities within our projected costs and timelines could have a material adverse effect on our business, results of operations or financial condition.

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#### We may not be able to successfully implement our growth strategy, on a timely basis or at all.
Our future growth, results of operations and financial condition depend upon our ability to successfully implement our growth strategy, which, in turn, is dependent upon a number of factors, some of which are beyond our control, including our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economically process E-Waste and recover strategic metals and materials and meet customers' business needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively introduce methods for higher extraction and higher recovery rates of strategic metals, including metals recovery from R&D initiatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complete the construction of our future facilities, including the Greenville, North Carolina facility, at a reasonable cost and on a timely basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively ramp-up our facilities to expected performance targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• invest and keep pace in technology, research and development efforts, and the expansion into additional commodities recovery beyond gold, silver, copper, and palladium;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• secure and maintain required strategic supply arrangements, and obtain appropriate operating environmental and industrial quality certifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively compete in the markets in which we operate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract and retain management or other employees who possess specialized knowledge and technical skills.

There can be no assurance that we can successfully achieve any or all of the above initiatives in the manner or time period that we expect. Further, achieving these objectives will require investments that may result in both short-term and long-term costs without generating any current revenue and therefore may be dilutive to earnings. We cannot provide any assurance that we will realize, in full or in part, the anticipated benefits we expect to generate from our growth strategy. Failure to realize those benefits could have a material adverse effect on our business, results of operations or financial condition.

***The development of our Greenville, North Carolina facility, and future projects, if any, are subject to risks, including with respect to engineering, permitting, procurement, construction, commissioning and ramp-up, and we cannot guarantee that these projects will be completed in a timely manner, that our costs will not be significantly higher than estimated, or that the completed projects will meet expectations with respect to their productivity or the specifications of their end products, among others.***

Our Greenville, North Carolina facility (herein, the "**Facility**"), and future projects, if any, are subject to development risks, including with respect to engineering, permitting, procurement, construction, commissioning and ramp-up. Because of the uncertainties inherent in estimating construction and labor costs and the potential for the scope of a project to change, it is relatively difficult to evaluate accurately the total funds that will be required to complete the Facility, or future projects. Further, our estimate of the amount of time it will take to complete the Facility, or future projects, are based on assumptions about the timing of engineering studies, permitting, procurement, construction, commissioning and ramp-up, all of which can vary significantly from the time an estimate is made to the time of completion. We cannot guarantee that the costs of the Facility, or future projects, will not be higher than estimated, or that we will have sufficient capital to cover any increased costs, or that we will be able to complete the Facility, or future projects, within expected timeframes. Any such cost increases or delays could negatively affect our results of operations and ability to continue to grow, particularly if the Facility, or any future project, cannot be completed. Further, there can be no assurance that the Facility will perform at the expected production rates or unit costs, or that the end products will meet the intended specifications.

#### We may be unable to manage future growth effectively.
Even if we can successfully implement our growth strategy, any failure to manage our growth effectively could materially and adversely affect our business, results of operations and financial condition. We intend to expand our operations around the United States, and internationally in the long-term, which will require us to hire and train new employees; accurately forecast supply and demand, production and revenue; control expenses and investments

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in anticipation of expanded operations; establish new or expand current design, production, and sales and service facilities; and implement and enhance administrative infrastructure, systems and processes. Future growth may also be tied to acquisitions, and we cannot guarantee that we will be able to effectively acquire other businesses or integrate businesses that we acquire. Failure to efficiently manage any of the above could have a material adverse effect on our business, results of operations or financial condition.

#### Failure to materially increase recycling capacity and efficiency could have a material adverse effect on our business, results of operations or financial condition.
Although our facility in Greenville, North Carolina is expected to have an annual total processing capacity of 8,000 tonnes of E-Waste, the future success of our business depends in part on our ability to significantly increase our recycling capacity and efficiency. We may be unable to expand our business, satisfy demand from customers, maintain our competitive position and achieve profitability if we are unable to build and operate any future facilities. The construction of future facilities will require significant cash investments and management resources and may not meet our expectations with respect to increasing capacity and efficiency. For example, if there are delays in any future planned facilities, or if our facilities do not meet expected performance standards or are not able to produce materials that meet the quality standards we expect, we may not meet our target for adding capacity, which would limit our ability to increase sales and result in lower-than-expected sales and higher than expected costs and expenses. Failure to drastically increase recycling and processing capacity or otherwise satisfy customers' demands may result in a loss of market share to competitors, damage our relationships with our key customers, a loss of business opportunities or otherwise materially adversely affect our business, results of operations or financial condition.

***Future acquisitions and strategic investments could be difficult to integrate, divert the attention of key management personnel, disrupt our business, dilute shareholder value, and harm our results of operations and financial condition.***

We may in the future seek to acquire or invest in, businesses, products, or technologies that we believe could complement our operations or expand our breadth, enhance our capabilities, or otherwise offer growth opportunities. While our growth strategy includes broadening our product offerings, implementing an aggressive marketing plan and employing product diversification, there can be no assurance that our systems, procedures and controls will be adequate to support our operations as they expand. We cannot assure you that our personnel, systems, procedures or controls will be adequate to support our operations in the future or that we will be able to successfully implement appropriate measures consistent with our growth strategy. As part of our planned growth and diversified product offerings, we may have to implement new operational and financial systems, procedures and controls to expand, train and manage our employee base, and maintain close coordination among our staff. We cannot guarantee that we will be able to do so, or that if we are able to do so, we will be able to effectively integrate them into our existing staff and systems.

Additionally, the integration of our acquisitions and pursuit of potential future acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating, and pursuing suitable acquisitions, whether or not they are consummated. Any acquisition, investment or business relationship may result in unforeseen operating difficulties and expenditures. In addition, we have limited experience in acquiring other businesses. Specifically, we may not successfully evaluate or utilize the acquired products, assets or personnel, or accurately forecast the financial impact of an acquisition transaction, including accounting charges. Moreover, the anticipated benefits of any acquisition, investment, or business relationship may not be realized, or we may be exposed to unknown risks or liabilities associated with our acquisitions.

We may not be able to find and identify desirable acquisition targets or we may not be successful in entering into an agreement with any one target. Acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, which could harm our results of operations. In addition, if an acquired business fails to meet our expectations, our business, results of operations, and financial condition may suffer. In some cases, minority shareholders may exist in certain of our non-wholly-owned acquisitions and may retain minority shareholder rights which could make a future change of control or necessary corporate approvals for actions more difficult to achieve and/or more costly.

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We may also make strategic investments in early-stage companies developing products or technologies that we believe could complement our business or expand our breadth, enhance our technical capabilities, or otherwise offer growth opportunities. These investments may be in early-stage private companies for restricted shares. Such investments are generally illiquid and may never generate value. Further, the companies in which we invest may not succeed, and our investments could lose their value.

***Expanding internationally involves risks that could delay our expansion plans and/or prohibit us from entering markets in certain jurisdictions, which could have a material adverse effect on our results of operations.***

At present, we have no current intention to expand our operations outside of North America. If we were to expand more broadly and pursue international operations, those operations would be subject to certain risks inherent in doing business abroad, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political, civil and economic instability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corruption risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trade, customs and tax risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• currency exchange rates and currency controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on the repatriation of funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insufficient infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on exports, imports and foreign investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in working capital requirements related to long supply chains;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in labor laws and regimes and disagreements with the labor force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in protecting intellectual property rights and complying with data privacy and protection laws and regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• different and less established legal systems.

***We will be dependent on our facilities. If one or more of our facilities become inoperative, capacity constrained or if operations are disrupted, our business, results of operations or financial condition could be materially adversely affected.***

Our revenue will be dependent on the continued operations of our facilities, including our Greenville, North Carolina head office/processing facility and any other facilities we may develop in the future. To the extent that we experience any operational risk including, among other things, fire and explosions, severe weather and natural disasters (such as floods and hurricanes), failures in water supply, major power failures, equipment failures (including any failure of our information technology, air conditioning, and cooling and compressor systems), a cyber-attack or other incident, failures to comply with applicable regulations and standards, labor force and work stoppages, including those resulting from local or global pandemics or otherwise, or if our current or future facilities become capacity constrained, we may be required to make capital expenditures even though we may not have sufficient available resources at such time.

Additionally, there is no guarantee that the proceeds available from our insurance policies will be sufficient to cover such capital expenditures. Our insurance coverage and available resources may prove to be inadequate for events that may cause significant disruption to our operations. Any disruption in our recycling processes could result in production delays, scheduling problems, increased costs or production interruption, which, in turn, may result in our customers deciding to send their E-Waste feedstock to our competitors. We will be dependent on our future facilities, which will require a high degree of capital expenditures. If one or more of our future facilities become inoperative, capacity constrained or if operations are disrupted, our business, results of operations or financial condition could be materially adversely affected.

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***We may need to raise additional funds in the future to meet our capital requirements and such funds may not be available to us on commercially reasonable terms or at all, which could materially adversely affect our business, results of operations or financial condition.***

Our operations are highly capital-intensive. Although we believe that we will have sufficient funds to meet our capital requirements for the next 24 months, we may in the future need to raise additional funds, including through the issuance of equity, equity linked or debt securities or through obtaining credit from government or financial institutions, and the availability of additional funds to us will depend on a variety of factors, some of which are outside of our control. Additional funds may not be available to us on commercially reasonable terms or at all, which could materially adversely affect our business, results of operations or financial condition. If additional funds are raised by issuing equity or equity-linked securities, our shareholders may incur dilution.

#### Our financial situation creates doubt as to whether we will continue as a going concern.
We are a development stage company with no meaningful commercial revenues and incurred a net loss of approximately $2,075,092 for the year ended December 31, 2021, a net loss of $690,039 for the year ended December 31, 2020, a net loss of $1,237,292 for the six months ended June 30, 2022 and a net loss of $755,759 for the six months ended June 30, 2021 and expect to incur a net loss for the fiscal year ending December 31, 2022, and thereafter, primarily as a result of the costs of listing, building concentrator plants as well as increased operating expenses to execute our business plan and growth strategy. There can be no assurances that we will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or obtain funding from this offering or additional financing through private placements, public offerings and/or bank financing necessary to support our working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, we will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on acceptable terms. These conditions raise substantial doubt about our ability to continue as a going concern. If adequate working capital is not available, we may be forced to discontinue operations, which would cause investors to lose their entire investment.

#### Our business is subject to operational risks that could disrupt our business, some of which may not be insured or fully covered by insurance.
Our operations are subject to risks inherent in the E-Waste industry, including potential liability which could result from, among other circumstances, personal injury, environmental claims or property damage some of which may not be insured or fully covered by insurance. The availability of, and the ability to collect on, insurance coverage is subject to factors beyond our control and is not guaranteed to cover any or all of our losses in every circumstance. Our insurance coverage may also be inadequate to cover liabilities related to such operational risks. We have no control over changing conditions and pricing in the insurance marketplace and the cost or availability of various types of insurance may change dramatically in the future. Moreover, we may not be able to maintain adequate insurance in the future at rates we consider reasonable and commercial justifiable, and insurance may not continue to be available on terms as favorable as our current arrangements. The occurrence of a significant uninsured claim, or a claim in excess of the insurance coverage limits maintained by us could adversely affect our business, results of operations and financial condition.

#### We are subject to the inherent risk of exposure to environmental pollution claims.
As a concentrator and refiner of E-Waste containing metals and user of chemical products, we face an inherent risk of exposure to pollution and environmental liability claims, regulatory action and litigation if our processes are alleged to have caused bodily harm or injury. Adverse reactions resulting from contamination of soil and water sources could occur. We may be subject to various liability claims, including, among others, that our concentrator and refinery facilities caused injury or illness, include inadequate disposal of chemicals, discharge of chemicals into the air, possible side effects or interactions with such chemical substances. Liability claims or regulatory actions against us could result in increased costs, could adversely affect our reputation with our clients and consumers generally, and could have a material adverse effect on our results of operations and financial condition. There can be no assurances that we will be able to obtain or maintain environmental liability insurance on acceptable terms or with adequate coverage against potential liabilities. Such insurance is expensive and may not be available in the future on acceptable terms, or at all. The inability to obtain sufficient insurance coverage on reasonable terms or to otherwise protect against potential liability claims could prevent or inhibit the concentration and processing of E-Waste and separation of minerals.

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#### The mining and metal recycling industries face strong opposition.
Many political and social organizations oppose mining and mineral recycling for their environmental risks. Our business will need support from local governments, industry participants, consumers and residents to be successful. Additionally, there are large, well-funded businesses and industry groups that may have a strong opposition to the mining and mineral recycling industries. For example, the pharmaceutical and alcohol industries have traditionally opposed mining and mineral recycling. Any efforts by these or other industries opposed to mining and mineral recycling to halt or impede mining and mineral recycling could have detrimental effects on our business.

#### Decreases and fluctuations in benchmark prices for the metals contained in our offtake could significantly impact our revenues and results of operations.
The prices that we obtain for our offtake are generally tied to commodity prices for their principal contained metals, such as gold, silver, copper and palladium. Fluctuations in the prices of these commodities will affect our revenues and declines in the prices of these commodities could have a material adverse impact on our revenues. Any significant decline in our revenues will have a material impact on our results of operations.

Fluctuations in commodities prices, such as the minerals we are extracting from E-Waste, are caused by varied and complex factors beyond our control or the control of our suppliers, including global supply and demand balances and inventory levels; global economic and political conditions; international regulatory, trade and tax policies, including national tariffs; commodities investment activity and speculation; interest rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology. Volatility in global economic growth, particularly in developing economies, has the potential to adversely affect future demand and prices for commodities. Geopolitical uncertainty and protectionism, including the United Kingdom's decision to exit from the European Union (commonly referred to as "Brexit") and the Russian invasion of Ukraine have the potential to inhibit international trade and negatively impact business confidence, which creates the risk of constraints on our ability to trade in certain markets and has the potential to increase price volatility.

Mineral prices may be affected by supply from China, which has become the largest producer of minerals in the world, and by changes in demand for products that require certain minerals. Rising trade tensions between the U.S. and China and efforts by the Chinese government to reduce debt levels contributed to a recent slowdown in China's growth. A continued slowing in China's economic growth and demand and continued trade tensions between the U.S. and China could result in lower production of minerals and higher mineral prices which could have a material adverse impact on our operations, including cash flow and the ability to purchase raw materials from our suppliers if they raise prices as well. The adoption and expansion of trade restrictions, changes in the state of China-U.S. relations, including the current trade war, or other governmental action related to tariffs or trade agreements, or policies are difficult to predict and could adversely affect demand for our minerals, our costs, our customers, our suppliers, and the U.S. economy, which in turn could have a material adverse effect on our business, results of operations, or financial condition. Additionally, our suppliers could be raising prices of materials which could in turn have a material adverse effect on our operations.

#### Disruptions in our supply chain could adversely affect our business.
Global trade conditions, inflation and consumer trends that originated during the COVID-19 pandemic continue to persist and have created significant disruptions to the global supply chain, which may impact our ability to obtain equipment and other supplies necessary for our business on a timely basis and at anticipated costs. Any continued supply chain disruptions, inflation or shortages in the availability of equipment from our suppliers, could adversely affect our business and operating results.

#### Our markets are exposed to recessionary risk
A global recession may result in lost or delayed sales orders, as many of our targeted customers may cut back their proposed capital spending in the face of economic uncertainty and limited access to financing. This would impact the ability of us to grow our business and, as a result, sales orders may be lower than expected. Any decrease in sales would negatively impact our cash flows and other financial results. Different markets and different geographies in which we operate may be impacted to different extents, making it difficult to forecast the likely impact.

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#### Our reliance on the experience and expertise of our management may cause adverse impacts to us if a management member departs.
Our success is dependent upon the ability, expertise, judgment, discretion and good faith of our senior management and key employees, including, without limitation: (i) Kuljit (Jeet) Basi, Director, Chief Executive Officer and President; (ii) Olga Balanovskaya, Chief Financial Officer; (iii) Peter Dielwart, General Manager; (iv) Darrell Campanella, Production Manager; and (v) Mark Zorko, Chairman of the Board of Directors. Our business may be severely disrupted if we lose the services of our key executives and employees or fail to add new senior and middle managers to our management. Our future success is heavily dependent upon the continued service of our key executives. We also rely on a number of key technology staff for our continued operation. Our future success is also dependent upon our ability to attract and retain qualified senior and middle managers to our management team. If one or more of our current or future key executives or employees are unable or unwilling to continue in their present positions, we may not be able to easily replace them, and our business may be severely disrupted. In addition, if any of these key executives or employees joins a competitor or forms a competing company, we could lose customers and suppliers and incur additional expenses to recruit and train personnel.

#### Our Chief Financial Officer also serves as the Chief Financial Officer of other companies which may divert her time and attention from our operations.
Our Chief Financial Officer, Ms. Olga Balanovskaya, has previously served as the Chief Financial Officer for various public and private companies in North America, and is currently serving as the Chief Financial Officer of Starfighters Space, Inc., where she has served since October 2022. Ms. Balanovskaya is also currently the president of Koral Financial Inc., where she also serves as a principal. These additional roles, and particularly should any complications arise in connection with these roles, may divert Ms. Balanovskaya's time and efforts away from our day-to-day operational and other business matters, which may in turn impact our business, prospects, financial conditions, and operating results.

#### We are subject to the risk of litigation or regulatory proceedings which could impact our financial results.
All industries, including the E-Waste recycling industry, are subject to legal claims, with or without merit. We are not currently, nor have we ever been, party to any legal proceedings, but we could be involved in various litigation and regulatory proceedings arising in the normal course of business in the future. Due to the inherent uncertainty of the litigation process, we may not be able to predict with any reasonable degree of certainty the outcome of any litigation or the potential for future litigation. Regardless of the outcome, any legal or regulatory proceeding could have an adverse impact on our business, prospects, financial conditions, and operating results due to defense costs, the diversion of management resources and other factors.

#### We operate in an emerging, competitive industry and if we are unable to compete successfully our revenue and profitability will be adversely affected.
The E-Waste recycling market is competitive. As the industry evolves and the demand increases, we anticipate that competition will increase. We also compete against companies that have a substantial competitive advantage because of longer operating histories and larger budgets, as well as greater financial and other resources. National or global competitors could enter the market with more substantial financial and workforce resources, stronger existing customer relationships, and greater name recognition, or could choose to target medium to small companies in our traditional markets. Competitors could focus their substantial resources on developing a more efficient recovery solution than our solutions. Competition also places downward pressure on our contract prices and profit margins, which presents us with significant challenges in our ability to maintain strong growth rates and acceptable profit margins. If we are unable to meet these competitive challenges, we could lose market share to our competitors and experience an adverse impact to our business, financial condition and results of operations.

***Increases in income tax rates, changes in income tax laws or disagreements with tax authorities could adversely affect our business, financial condition or results of operations.***

We are subject to income taxes in the United States and Canada. Increases in income tax rates or other changes in income tax laws that apply to our business could reduce our after-tax income from such jurisdiction and could adversely affect our business, financial condition or results of operations.

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#### Our operating and financial results may vary significantly from period to period due to fluctuations in our operating costs and other factors.
We expect our period-to-period operating and financial results to vary based on a multitude of factors, some of which are outside of our control. We expect our period-to-period financial results to vary based on operating costs, which we anticipate will fluctuate with the pace at which it increases its operating capacity. As a result of these factors and others, we believe that quarter-to-quarter comparisons of our operating or financial results, especially in the short term, are not necessarily meaningful and that these comparisons cannot be relied upon as indicators of future performance. Moreover, our financial results may not meet expectations of equity research analysts, ratings agencies or investors, who may be focused only on quarterly financial results. If any of this occurs, the trading price of our Common Shares could fall substantially, either suddenly or over time.

#### Failure to develop our internal controls over financial reporting as we grow could have an adverse effect on our operations.
As we mature, we will need to continue to develop and improve our current internal control systems and procedures to manage our growth. We are required to establish and maintain appropriate internal controls over financial reporting. Failure to establish appropriate controls, or any failure of those controls once established, could adversely affect our public disclosures regarding our business, financial condition or results of operations. In addition, management's assessment of internal controls over financial reporting may identify weaknesses and conditions that need to be addressed in our internal controls over financial reporting or other matters that may raise concerns for investors.

***Unfavorable economic conditions, including the consequences of the global COVID-19 pandemic, may have a material adverse effect on our business, results of operations and financial condition.***

We have been impacted by the COVID-19 pandemic, and we cannot predict the future impacts the COVID-19 pandemic, including the emergence of new strains such as the Omicron variant, may have on our business, results of operations and financial condition. Beginning in March 2020, numerous government regulations and public advisories, as well as shifting social behaviors, temporarily and from time to time limited or closed non-essential transportation, government functions, business activities and person-to-person interactions, and the duration of such trends is difficult to predict. The continued impact of COVID-19 on manufacturing production may impact the contribution of scrap material to the recycling market over the short-to-medium term.

Our operations and timelines may also be affected by global economic markets and levels of consumer comfort and spend, including recessions, slow economic growth, economic and pricing instability, increase of interest rates and credit market volatility, all of which could impact demand in the worldwide transportation industries or otherwise have a material adverse effect on our business, operating results and financial condition. Because the impact of current conditions on an ongoing basis is yet largely unknown, is rapidly evolving and has been varied across geographic regions, this ongoing assessment will be particularly critical to allow us to accurately project supply and demand and infrastructure requirements and allocate resources accordingly. If current global market conditions continue or worsen, our business, results of operations and financial condition could be materially adversely affected.

***Natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events could materially adversely affect our business, results of operations or financial condition.***

The occurrence of one or more natural disasters, such as fires, hurricanes and earthquakes, unusually adverse weather, epidemic or pandemic outbreaks, such as the ongoing COVID-19 pandemic, cyber incidents such as ransomware attacks, boycotts and geo-political events, such as civil unrest and acts of terrorism (including cyber terrorism or other cyber incidents), or similar disruptions could materially adversely affect our business, power supply, results of operations or financial condition. These events could result in physical damage to property, an increase in energy prices, temporary or permanent closure of the Facility, temporary lack of an adequate workforce in a market, temporary or long-term disruption in the supply of raw materials, temporary disruption in transport from overseas, or disruption to our information systems. We may incur expenses or delays relating to such events outside of our control, which could have a material adverse impact on our business, operating results and financial condition.

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***We may be subject to intellectual property rights claims by third parties, which could be costly to defend, could require payment of significant damages and could limit our ability to use certain technologies.***

We are subject to the risk of third parties asserting claims of infringement of intellectual property rights or violation of other statutory, license or contractual rights in technology or data. Any such claim by a third party, even if without merit, could cause us to incur substantial costs defending against such claim and could distract our management and development teams from our business.

Although third parties may offer a license to their technology or data, the terms of any offered license may not be acceptable or commercially reasonable and the failure to obtain a license or the costs associated with any license could cause our business, prospects, financial condition, and operating results to be adversely affected. In addition, some licenses may be non-exclusive, and therefore our competitors may have access to the same technology or data licensed to us. Alternatively, we may be required to develop non-infringing technology or data which could require significant effort and expense and ultimately may not be successful. Furthermore, a successful claimant could secure a judgment, or we may agree to a settlement that prevents us from selling certain products or performing certain services in a given country or countries or that requires us to pay royalties, substantial damages, including treble damages if we are found to have willfully infringed the claimant's patents, copyrights, trade secrets or other statutory rights, or other fees. Any of these events could have an adverse effect on our business, prospects, financial condition, and operating results.

The laws of some foreign countries do not protect proprietary rights to the same extent as the laws of the United States, and we may encounter significant problems and costs in protecting our proprietary rights in these foreign countries.

#### Directors, executive officers and consultants may be subject to conflicts of interest.
We may be subject to various potential conflicts of interest because of the fact that some of our officers, directors and consultants may be engaged in a range of business activities, including certain officers, directors and consultants that provide services to other companies involved material development. Our executive officers, directors and consultants may devote time to their outside business interests, so long as such activities do not materially or adversely interfere with their duties to us. In some cases, our executive officers, directors and consultants may have fiduciary obligations associated with these business interests that may interfere with their ability to devote time to our business and affairs and that could adversely affect our operations. In addition, we may also become involved in other transactions which conflict with the interests of our directors, officers and consultants who may from time to time deal with persons, firms, institutions or corporations with which we may be dealing, or which may be seeking investments similar to those desired by us. The interests of these persons could conflict with ours. Conflicts of interest, if any, will be subject to the procedures and remedies provided under applicable laws. In particular, in the event that such a conflict of interest arises at a meeting of our directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms. In accordance with applicable laws, our directors are required to act honestly, in good faith and in our best interests.

#### We could be subject to a security breach that could result in significant damage or theft of products and equipment.
Breaches of security at our facilities may occur and could result in damage to or theft of products and equipment. A security breach at our facilities could result in a significant loss of inventory or work in process, expose us to liability under applicable regulations and increase expenses relating to the investigation of the breach and implementation of additional preventative security measures, any of which could have an adverse effect on our business, financial condition and results of operations.

***If we sustain cyber-attacks or other privacy or data security incidents that result in security breaches that disrupt our operations or result in the unintended dissemination of protected personal information or proprietary or confidential information, or if we are found by regulators to be non-compliant with statutory requirements for the protection and storage of personal data, we could suffer a loss of revenue, increased costs, exposure to significant liability, reputational harm and other serious negative consequences.***

As our operations expand, we may process, store and transmit large amounts of data in our operations, including protected personal information as well as proprietary or confidential information relating to our business and third parties. Experienced computer programmers and hackers may be able to penetrate our layered security controls and misappropriate or compromise our protected personal information or proprietary or confidential information or that of third parties, create system disruptions or cause system shutdowns. They also may be able to develop and deploy viruses,

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worms and other malicious software programs that attack our systems or otherwise exploit any security vulnerabilities. Hardware, software, or applications we develop or procure from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. Our facilities may also be vulnerable to security incidents or security attacks, acts of vandalism or theft, coordinated attacks by activist entities, misplaced or lost data, human errors, or other similar events that could negatively affect our systems and our customer's data.

<u>***<u>Risks Related to our Regulatory Framework</u>***</u>

#### Our business is subject to environmental and employee health and safety regulations and risks.
Our operations are subject to environmental and safety laws and regulations concerning, among other things, emissions and discharges to water, air and land, the handling and disposal of hazardous and non-hazardous materials and wastes, and employee health and safety. We will incur ongoing costs and obligations related to compliance with environmental and employee health and safety matters. Failure to comply with environmental and safety laws and regulations may result in additional costs for corrective measures, penalties or in restrictions on our operations. Government approvals and permits are currently and may in the future be required in connection with our operations. To the extent such approvals are required and not obtained, we may be curtailed from proceeding with the development of our operations as currently proposed.

#### There are risks associated with the regulatory regime and permitting requirements of our operations.
Achievement of our business objectives is contingent, in part, upon compliance with regulatory requirements enacted by governmental authorities and obtaining all regulatory approvals, where necessary, for the concentration and metal separation and sale of our products. As our only facility in operation is our pilot plant in Greenville, North Carolina, we must comply with local and State ambient air quality standards in respect to emissions from any stack, vent, or outlet, of sulphur oxides, suspended particulates, carbon monoxide, nitrogen oxide, etc. Furthermore, we must comply with National Ambient Air Quality Standards ("NAAQS"), water quality standards under the Clean Water Act and local noise regulations. We may not be able to obtain or maintain the necessary licenses, permits, quotas, authorizations, certifications or accreditations to operate our business going forward, or may only be able to do so at great cost. We cannot predict the time required to secure all appropriate regulatory approvals for our concentrator and purification plants, or the extent of testing and documentation that may be required by local governmental authorities in other states and other countries.

Our officers and directors must rely, to a great extent, on our local legal counsel and local consultants retained in such jurisdictions in order to keep abreast of material legal, regulatory and governmental developments as they pertain to and affect our business operations, and to assist us with governmental relations. We must rely, to some extent, on those members of management and the Board of Directors who have previous experience working and conducting business in the United States or abroad in order to enhance our understanding of and appreciation for the local business culture and practices in such jurisdictions.

We also rely on the advice of local experts and professionals in connection with any current and new regulations that develop in respect of banking, financing and tax matters in the jurisdictions in which we operate. Any developments or changes in such legal, regulatory or governmental requirements or in local business practices in such jurisdictions are beyond our control and may adversely affect our business.

We will incur ongoing costs and obligations related to regulatory compliance. Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. We may be required to compensate those suffering loss or damage by reason of our operations and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. In addition, changes in regulations, more vigorous enforcement thereof or other unanticipated events could require extensive changes to our operations, increased compliance costs or give rise to material liabilities, which could have a material adverse effect on our business, results of operations and financial condition.

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***Any failure on our part to comply with applicable regulations or to obtain and maintain the necessary licenses and certifications could prevent us from being able to carry on our business, and there may be additional costs associated with any such failure.***

Our business activities are heavily regulated in all jurisdictions where we will do business. Our operations are subject to various laws, regulations and guidelines by governmental authorities relating to the handling, processing, management, distribution, transportation, storage, sale, and disposal of chemicals and minerals. In addition, we are subject to laws and regulations relating to employee health and safety, insurance coverage and the environment. Laws and regulations, applied generally, grant government agencies and self-regulatory bodies broad administrative discretion over our activities, including the power to limit or restrict business activities as well as impose additional disclosure requirements on our materials and products.

Any failure by us to comply with applicable regulatory requirements could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require extensive changes to our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• result in regulatory or agency proceedings or investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• result in the revocation of our licenses and permits, the imposition of additional conditions on licenses to operate our business, and increased compliance costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• result in damage awards, civil or criminal fines or penalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• result in the suspension or expulsion from a particular market or jurisdiction of our key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• result in restrictions on our operations or the imposition of additional or more stringent inspection, testing and reporting requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• harm our reputation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• give rise to material liabilities.

There can be no assurance that any future regulatory or agency proceedings, investigations or audits will not result in substantial costs, a diversion of management's attention and resources or other adverse consequences to our business.

In addition, changes in regulations, government or judicial interpretation of regulations, or more vigorous enforcement thereof or other unanticipated events could require extensive changes to our operations, increase compliance costs or give rise to material liabilities or a revocation of our licenses and other permits. Furthermore, governmental authorities may change their administration, application or enforcement procedures at any time, which may adversely affect our ongoing regulatory compliance costs. There is no assurance that we will be able to comply or continue to comply with applicable regulations.

***We cannot predict the impact of any new environmental laws or regulations or of changes in current environmental laws or regulations on our business and operations in the future.***

We believe we possess all material environmental permits and licenses necessary for the operation of our business and that our operations will be in substantial compliance with the terms of all applicable environmental laws and regulations. We cannot predict the impact of any new environmental laws or regulations or of changes in current environmental laws or regulations on our operations. The government may in future take steps towards the adoption of more stringent environmental regulations in respect of our business. Due to the possibility of unanticipated regulatory or other developments, the amount and timing of future environmental expenditures may vary substantially from those currently anticipated. If there is any unanticipated change in the environmental regulations, we may need to incur substantial capital expenditures to install, replace, upgrade or supplement our equipment or make operational changes to limit any adverse impact or potential adverse impact on the environment in order to comply with any new environmental protection laws and regulations. If such costs become prohibitively expensive, this may adversely affect our business operations.

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<u>***<u>Risks Related to our Common Shares and this Offering</u>***</u>

#### The trading price of our Common Shares could be subject to wide fluctuations due to a variety of factors, including:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the COVID-19 pandemic and its impact on the markets and economies in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our actual or anticipated operating performance and the operating performance of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our failure to meet the estimates or the expectations of investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any major change in our Board of Directors, management, or key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions such as recessions, interest rates, fuel prices, international currency fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rumors and market speculation involving us or other companies in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of significant innovations, new products, services or capabilities, acquisitions, strategic investments, partnerships, joint venture or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the legal and regulatory landscape and changes in the application of existing laws or adoption of new laws that impact our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal and regulatory claims, litigation, or pre-litigation disputes and other proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, including those resulting from war, incidents of terrorism, or responses to these events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales or expected sales of our Common Shares by us, our officers, directors, significant shareholders, and employees.

In addition, stock markets have experienced significant price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. The stock market in general and have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the particular companies affected. These fluctuations may be even more pronounced in the trading market for our Common Shares as a result of the supply and demand forces for newly public companies. In the past, shareholders have instituted securities class action litigation following periods of share volatility.

***Holders of our Investor Rights Warrants may exert significant control over us, which may limit your ability to influence corporate matters and may give rise to conflicts of interest.***

As of the date of this Prospectus, holders of our Investor Rights Warrants (as defined herein) held 16,500,000 Investor Rights Warrants representing 65.8% of our combined Common Shares and warrants. One holder, F1 Advisory Group Ltd. ("F1 Advisory Group") held 31.3% of our Investor Rights Warrants. The Investor Rights Warrants are exercisable for three (3) years from the closing of the Offering. Pursuant to the Investor Rights Agreement, holders of our Investor Rights Warrants shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote on any matter at any meetings of shareholders of the Company. The Investor Rights Agreement will terminate upon completion of the Offering, and consequently, the voting rights granted under the Investor Rights Agreement to the holders of the Investor Rights Warrants will also terminate at such time. Each Investor Rights Warrant entitles the holder thereof to one vote per Investor Rights Warrant. Further, the holders of our Investor Rights Warrants, through their Warrantholder Representative, shall be entitled to nominate three (3) directors to the Board subject to the provisions of the Investor Rights Agreement. See a discussion of the Investor Rights Agreement under "***Business — Recent Developments***." Accordingly, holders of our Investor Rights Warrants will exert significant influence over us and any action requiring the approval of our shareholders and/or our Board prior to completion of the Offering. Furthermore, the interests of the holders of our Investor Rights Warrants may not always coincide with your interests or the interests of other shareholders and they may act in a manner that advances their best interests and not necessarily those of other shareholders.

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***Holders of our Convertible Debentures may exert significant control over us, which may limit your ability to influence corporate matters and may give rise to conflicts of interest.***

On April 7, 2022, we issued Debentures pursuant to the Debenture Indenture. The Debenture Indenture provides that in the event that we complete a U.S. listing, such as this Offering, the principal amount of the Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00, and shall be subject to a six (6) month hold period from the closing of the Offering.

On August 31, 2022, we entered into the Convertible Debentures IRA, pursuant to which holders of our Convertible Debentures shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote on any matter at any meetings of shareholders of the Company. Assuming an Offering Price of $, which would be the midpoint of the offering price range on the front of this Prospectus, each $ of Convertible Debentures will equal to one Common Share, entitling the holder thereof to one vote. See a discussion of the Convertible Debentures IRA under "***Business — Recent Developments***." Accordingly, holders of our Convertible Debentures will exert significant influence over us and any action requiring the approval of our shareholders and/or our Board prior to the completion of this Offering and conversion of the Debentures into Common Shares. Furthermore, the interests of the holders of our Debentures may not always coincide with your interests or the interests of other shareholders and they may, prior to the completion of this Offering, act in a manner that advances their best interests and not necessarily those of other shareholders.

***We are a foreign private issuer and intend to take advantage of the less frequent and less detailed reporting obligations applicable to foreign private issuers.***

We are a "foreign private issuer", as such term is defined in Rule 405 under the Securities Act, and are not subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Exchange Act, we will be 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 will not file the same reports that a U.S. domestic issuer would file with the SEC, although we will be 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 shares, as the reporting deadlines under the corresponding Canadian insider reporting requirements are longer.

As a foreign private issuer, we will be exempt from the rules and regulations under the Exchange Act related to the furnishing and content of proxy statements. We will also be exempt from Regulation FD, which prohibits issuers from making selective disclosures of material non-public information. While we will 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 will have more time than U.S. domestic companies after the end of each fiscal year to file our annual report with the SEC and will not be required under the Exchange Act to file quarterly reports with the SEC.

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.

***We may lose our status as a foreign private issuer in the United States, which would result in increased costs related to regulatory compliance under United States securities laws.***

We will cease to qualify as a "foreign private issuer," as defined in Rule 405 under the Securities Act and Rule 3b-4 under the Exchange Act, if, as of the last business day of our second fiscal quarter, more than 50% of our outstanding Common Shares are directly or indirectly owned by residents of the United States and any of the following three circumstances applies: (i) the majority of our executive officers or directors are U.S. citizens or residents; (ii) more than 50% of our assets are located in the United States; or (iii) our business is administered

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principally in the United States. If we determine that we fail to qualify as a foreign private issuer, we will cease to be eligible to avail ourselves of the forms and rules designated for foreign private issuers beginning on the first day of the fiscal year following such determination. Among other things, this will result in loss of the exemption from registration under the Exchange Act provided by Rule 12g3-2(b) thereunder, and, if we are required to register our Common Shares under section 12(g) of the Exchange Act, we will have to do so as a domestic issuer. Further, any securities that we issue in unregistered or unqualified offerings both within and outside the United States will be "restricted securities" (as defined in Rule 144(a)(3) under the Securities Act) and will continue to be subject to United States resale restrictions notwithstanding their resale in "offshore transactions" pursuant to Regulation S under the Securities Act. As a practical matter, this will likely require us to register more offerings of our securities under the Securities Act on either a primary offering or resale basis, even if they take place entirely outside the United States. The resulting legal and administrative costs of complying with the resulting regulatory requirements are anticipated to be substantial, and to subject us to additional exposure to liability for which we may not be able to obtain insurance coverage on favorable terms, or at all.

#### After the completion of this Offering, we may be at an increased risk of securities class action litigation.
Historically, securities class action litigation has often been brought against a company following a decline in the market price of its securities. If the price of our Common Shares decreases and we were sued, it could result in substantial costs and a diversion of management's attention and resources, which could harm our business.

#### Listing our Common Shares on a securities exchange will increase our regulatory burden.
We have applied for the listing of our Common Shares under the symbol " " on . Our application has not yet been approved by and there is no guarantee that our application will be approved in connection with this Offering. Although to date we have not been subject to the continuous and timely disclosure requirements of exchange rules, regulations and policies of , we are working with our legal, accounting and financial advisors to identify those areas in which changes should be made to our financial management control systems to manage our obligations as a public company listed on . These areas include corporate governance, corporate controls, disclosure controls and procedures and financial reporting and accounting systems. We have made, and will continue to make, changes in these and other areas, including our internal controls over financial reporting. However, we cannot assure holders of our Common Shares that these and other measures that we might take will be sufficient to allow us to satisfy our obligations as a public company listed on on a timely basis and that we will be able to achieve and maintain compliance with applicable listing requirements. In addition, compliance with reporting and other requirements applicable to public companies listed on will create additional costs for us and will require the time and attention of management. We cannot predict the amount of the additional costs that we might incur, the timing of such costs or the effects that management's attention to these matters will have on our business.

 ****may delist our Common Shares, which could limit investors' ability to engage in transactions in our Common Shares and subject us to additional trading restrictions.***

If were to delist our Common Shares as a result of a failure to meet its listing requirements, we could face significant material adverse consequences, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited availability of market quotations for our Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited amount of news and analyst coverage for the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decreased ability to obtain capital or pursue acquisitions by issuing additional equity or convertible securities.

***We will incur increased costs as a result of operating as a public company and our management will be required to devote substantial time to new compliance initiatives.***

As a public company, particularly after we are no longer an emerging growth company, we will incur significant legal, accounting and other expenses that we did not incur as a private company. In addition, the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, and rules implemented by the SEC and , impose various requirements on public companies, including requirements to file periodic and event-driven reports with respect to our business and

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financial condition and operations and establish and maintain effective disclosure and financial controls and corporate governance practices. Our management and other personnel have limited experience operating a public company, which may result in operational inefficiencies or errors, or a failure to improve or maintain effective internal controls over financial reporting and disclosure controls and procedures necessary to ensure timely and accurate reporting of operational and financial results. Our existing management team will need to devote a substantial amount of time to these compliance initiatives, and we may need to hire additional personnel to assist us with compliance. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time consuming and costly.

Pursuant to Section 404 of the Sarbanes-Oxley Act, we will be required to furnish a report by our management on our ICFR, which, after we are no longer an emerging growth company, may be accompanied by an attestation report on ICFR issued by our independent registered public accounting firm if we are an "accelerated filer" or a "large accelerated filer" under the Exchange Act. To achieve compliance with Section 404 within the prescribed period, we will document and evaluate our ICFR, which is both costly and challenging. In this regard, we will need to continue to dedicate internal resources, potentially engage outside consultants, and adopt a detailed work plan to assess and document the adequacy of our ICFR, continue steps to improve control processes as appropriate, validate through testing that controls are functioning as documented, and implement a continuous reporting and improvement process for ICFR. If our management and/or auditors determine that there are one or more material weaknesses in our ICFR, such a determination could cause an adverse reaction in the financial markets due to a loss of confidence in the reliability of our consolidated financial statements.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some public company required activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and divert management's time and attention from revenue generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies, regulatory authorities may initiate legal proceedings against us and our business may be harmed.

We also expect that being a public company and complying with applicable rules and regulations will make it more expensive for us to obtain director and officer liability insurance. These factors could also make it more difficult for us to attract and retain qualified executive officers and members of our Board.

***We may issue additional Common Shares or other equity securities without shareholder approval, which would dilute the ownership interests of existing shareholders in the Company and may depress the market price of our Common Shares.***

We may issue additional Common Shares or other equity securities in the future in connection with, among other things, capital raises, future acquisitions, repayment of outstanding indebtedness or grants under our 2022 Plan without shareholder approval in a number of circumstances. The issuance of additional Common Shares or other equity securities could have one or more of the following effects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our existing shareholders' proportionate ownership will decrease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount of cash available per share, including for payment of dividends in the future, may decrease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the relative voting strength of each previously issued and outstanding Common Share may be diminished; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market price of our Common Shares may decline.

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***Our ability to meet expectations and projections in any research or reports published by securities or industry analysts, or a lack of coverage by securities or industry analysts, could result in a depressed market price and limited liquidity for our Common Shares.***

The trading market for our Common Shares will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market, or our competitors. If no securities or industry analysts commence coverage of us, our share price would likely be less than that which would be obtained if we had such coverage and the liquidity, or trading volume of our Common Shares may be limited, making it more difficult for a shareholder to sell shares at an acceptable price or amount. If any analysts do cover us, their projections may vary widely and may not accurately predict the results we actually achieve. Our share price may decline if our actual results do not match the projections of research analysts covering us. Similarly, if one or more of the analysts who write reports on us downgrades our shares or publishes inaccurate or unfavorable research about our business, our share price could decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, our share price or trading volume could decline.

***We may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and share price, which could cause you to lose some or all of your investment.***

We may be forced to later write down or write off assets, restructure our operations, or incur impairment or other charges that could result in losses. Unexpected risks may arise and previously known risks may materialize. Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we may report charges of this nature could contribute to negative market perceptions about our or its securities. In addition, charges of this nature may cause us to be unable to obtain future financing on favorable terms or at all.

#### We should be treated as a U.S. corporation for all U.S. federal income tax purposes.
***Section 7874 of the of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), provides a rule pursuant to which a foreign***-incorporated ***entity may, in certain circumstances, be treated as a U.S. corporation for U.S. federal income tax purposes, such corporation an "inverted corporation." We should be treated as an inverted corporation for U.S. federal income tax purposes pursuant to Section 7874 of the Code. This means that, notwithstanding that we are a company incorporated in Canada, we should be treated for all U.S. federal income tax purposes as if we are a U.S. corporation and you will be treated for all U.S. federal income tax purposes as holding the shares of a U.S. corporation. As such, we should be subject to U.S. federal income tax as if we were organized under the laws of the United States or a state thereof. Generally, we should be required to file a U.S. federal income tax return annually with the U.S. Internal Revenue Service. We are also subject to tax in Canada. It is unclear how the foreign tax credit rules under the Code will operate in certain circumstances, given our treatment as a U.S. domestic corporation for U.S. federal income tax purposes and the taxation of the Company in Canada. Accordingly, it is possible that we will be subject to double taxation with respect to all or part of our taxable income.***

***The rules under Section 7874 are complex and require analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties as to aspects of their application. If it were determined that we should be taxed as a foreign corporation for U.S. federal income tax purposes under Section 7874 of the Code, the U.S. federal income tax consequences described herein could be materially and adversely affected. For example, U.S. Holders (as defined below in "MATERIAL TAX CONSIDERATIONS — Material U.S. Federal Income Tax Considerations") could be subject to the rules applicable to passive foreign investment companies. Beneficial owners of our shares should consult their own tax advisors with respect the tax consequences if we were classified as a foreign corporation for U.S. federal income tax purposes. The remainder of this Prospectus assumes that we will be treated for all U.S. federal income tax purposes as if we are a U.S. corporation. For a more detailed discussion on tax considerations, see "MATERIAL TAX CONSIDERATIONS — Material U.S. Federal Income Tax Considerations" below.***

#### We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividend on our Common Shares and do not currently intend to do so in the foreseeable future. We currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not anticipate declaring or paying any cash dividends in the foreseeable future. Therefore, the success of an investment in our Common Shares will depend upon any future appreciation in their value. There is no guarantee that our Common Shares will appreciate in value or even maintain the price at which you purchased them.

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#### USE OF PROCEEDS
We estimate that we will receive approximately $ million in net proceeds from the sale of Common Shares offered by us in this Offering (or approximately $ million if the Underwriters exercise in full the Over-Allotment Option), based on an assumed Offering Price of $ per Common Share, after deducting the underwriting discounts and commissions and estimated offering expenses of approximately $ million payable by us.

The underwriters have an option to purchase up to additional Common Shares at the public offering price less the underwriting discounts and commissions within 45 days after the date of this prospectus to cover-allotments, if any. Exercise by the underwriters of this option in full would result in additional net proceeds to us of approximately $ million.

We intend to use the net proceeds from this Offering for the following purposes: (i) capital expenditures (39%), (ii) working capital and general corporate purposes (43%), (iii) marketing expenditures (14%) and (iv) research and development expenses (4%).

In particular, we intend to use the net proceeds from this Offering for the following target milestones, provided that, any shortfall in the offering proceeds will be prorated accordingly and any excess will be allocated in accordance with the percentages in the preceding paragraph.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Target Milestone** | **Target <br>Start Date** | **Target <br>Completion <br>Date** | **Cost <br>Estimate** |
| 1 | Complete the build-out of our commercial scale PCP and APP facilities to be used in our future commercial plant in North Carolina (inclusive of all estimated direct and indirect capital expenditures) | IPO | IPO +6 months | $5.5M |
| 2 | Secure high-quality E-Waste feedstock through written supply arrangements to support process development, commissioning, and start-up activities | IPO | IPO +6 months | NA |
| 3 | Grow and train our front-line PCP and APP operating teams | IPO | IPO +6 months | $1M |
| 4 | Complete the commissioning of our facilities, and demonstrate ramp-up to full-scale PCP processing capacity of approximately 20-25 tonnes of E-Waste per day, including re-engineering and debottlenecking as needed | IPO +6 months | IPO +12 months | $1M |
| 5 | Initiate and seek R2 Standard (as defined herein) certification | IPO +6 months | IPO +18 months | $250k |
| 6 | Add supplementary E-Waste supply contracts to ensure our PCP facility can be operated at design capacity of approximately 8,000 tonnes per year | IPO +6 months | IPO +18 months | NA |
| 7 | Achieve steady-state commercial production and revenue status | IPO +12 months | IPO +18 months | $1M |
| 8 | Initiate our R&D program to expand our competitive and environmental advantages | IPO +18 months |  |  |
| 9 | Develop facilities expansion and business growth roadmap (additional PCP and APP facilities, domestically/internationally) | IPO +18 months |  |  |

---

The amounts and timing of our actual expenditures will depend upon numerous factors, including the progress of our expansion and development efforts, whether or not we enter into strategic transactions, our general operating costs and expenditures, and the changing needs of our business.

Our management will have discretion in allocating the net proceeds in accordance with the above priorities and purposes. The amounts and timing of our actual expenditures will depend upon numerous factors, including the progress of our expansion and development efforts, whether or not we enter into strategic transactions, our general operating costs and expenditures, and the changing needs of our businesses.

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Each $1.00 increase (decrease) in the assumed Offering Price of $ per Common Share would increase (decrease) the net proceeds to us from this Offering by approximately $ million, assuming the number of Common Shares offered by us, as set forth on the cover page of this Prospectus, remains the same, and after deducting the underwriting discounts and commissions payable by us. We may also increase or decrease the number of Common Shares we are selling in this Offering. An increase (decrease) of 1,000,000 in the number of Common Shares offered by us in this Offering, as set forth on the cover page of this Prospectus, would increase (decrease) the net proceeds to us from this Offering by approximately $ million, assuming the Offering Price of $ per Common Share remains the same, and after deducting the underwriting discounts and commissions payable by us.

We believe that our funds and the net proceeds from this Offering will be sufficient to continue our business and operations as currently conducted through 2023; however, changing circumstances may cause us to consume capital significantly faster than we currently anticipate.

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#### DIVIDEND POLICY
We have never paid dividends on our Common Shares. We currently intend to retain all available funds and any future earnings to support operations and to finance the growth and development of our business. As such, we do not intend to declare or pay cash dividends on our Common Shares in the foreseeable future. Any future determination to pay dividends will be made at the discretion of our Board of Directors subject to applicable laws and will depend upon, among other factors, our earnings, operating results, financial condition and current and anticipated cash needs. Our future ability to pay cash dividends on our Common Shares may be limited by the terms of any then-outstanding debt or preferred securities.

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#### CAPITALIZATION
The following table sets forth our cash and cash equivalents, debt and capitalization as of December 31, 2021, and June 30, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma, as adjusted, basis to give effect to the above and the issuance of Common Shares in this Offering at the Offering Price of $ per Common Share, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, as set forth in this Prospectus.

You should read the following table in conjunction with the sections entitled "***Use of Proceeds***" and "***Management's Discussion and Analysis of Financial Condition and Results of Operations***", and our financial statements and the related notes thereto included elsewhere in this Prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of <br>December 31, 2021** | **As of <br>June 30, 2022** | **As of <br>June 30, 2022** | **As of <br>June 30, 2022** |
|  **(*in thousands, except share amounts*)** | **Actual** | **Actual** | **Pro Forma** | **Pro Forma, <br>as Adjusted** |
|  Cash and cash equivalents | $414047 | $2278685 | $| $|
|  Debt: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Short-term loans | 277331 | 124509 |  |  |
| &nbsp;&nbsp;&nbsp; Debentures and interest payable<sup>(1)</sup> | nil | 3223685 | nil | nil |
|  Total debt: | $277331 | 3348194  | $| $|
|  Shareholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Common shares issued | 8559784 | 8559784 |  |  |
| &nbsp;&nbsp;&nbsp; Options issued | nil | nil |  |  |
| &nbsp;&nbsp;&nbsp; Warrants issued | 25208116 | 25208116 |  |  |
| &nbsp;&nbsp;&nbsp; Retained earnings (accumulated deficit) | $(3673739) | $(4941187) |  |  |
| &nbsp;&nbsp;&nbsp; Treasury shares, at cost | $2822311 | $2822311 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity (deficiency) | $(576294) | $(1841126) |  |  |
|  Total capitalization | $576294 | $1841126 | $| $|

---

____________

(1) The Company issued $3,331,390 principal amount of Debentures on April 7, 2022. See "Liquidity and Capital Resources".

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#### DILUTION
Purchasers of the Common Shares in this Offering will experience immediate and substantial dilution to the extent of the difference between the Offering Price per Common Share paid by the purchasers of the Common Shares in this Offering and the pro forma, as adjusted net tangible book value per Common Share immediately after, and giving effect to, this Offering. Dilution results from the fact that the Offering Price per Common Share in this Offering is substantially in excess of the net tangible book value per Common Share attributable to our existing shareholders for our presently outstanding Common Shares.

Our historical net tangible book value per Common Share is determined by dividing our net tangible book value, which is the book value of our total tangible assets less the book value of our total liabilities, by the number of outstanding Common Shares. As of June 30, 2022, the historical net tangible book value of our Common Shares was $(1,841,126), or $(0.22) per Common Share. On a pro forma basis, after giving effect to issuances of Common Shares after June 30, 2022 in connection with the exercise of outstanding share options, our historical net tangible book value as of June 30, 2022 would have been $, or $ per Common Share.

After giving effect to the sale by us of Common Shares in this Offering at an assumed Offering Price of $ per Common Share, and (iii) receipt by us of the net proceeds of this Offering, after deduction of the underwriting discounts and commissions and the estimated offering expenses payable by us, our pro forma, as adjusted net tangible book value as of June 30, 2022 would have been $, or $ per Common Share. The pro forma, as adjusted net tangible book value per Common Share immediately after the Offering is calculated by dividing the pro forma, as adjusted net tangible book value of $ by Common Shares (which is the pro forma, as adjusted Common Shares outstanding as of June 30, 2022). The difference between the Offering Price per Common Share and the pro forma, as adjusted net tangible book value per Common Share represents an immediate increase in net tangible book value of $ per Common Share to our existing shareholders, and an immediate dilution in net tangible book value of $ per Common Share to purchasers of Common Shares in this Offering.

The following table illustrates this dilution to purchasers in this Offering on a per Common Share basis (*in [thousands/millions]*):

---

| | |
|:---|:---|
|  Assumed Offering Price per Common Share | $|
| &nbsp;&nbsp;&nbsp; Net tangible book value per Common Share before this Offering (as of June 30, 2022) | $|
| &nbsp;&nbsp;&nbsp; Pro forma net tangible book value per Common Share before this Offering (as of June 30, 2022) |  |
| &nbsp;&nbsp;&nbsp; Increase in net tangible book value per Common Share attributable to purchasers in this Offering | $|
| &nbsp;&nbsp;&nbsp; Pro forma, as adjusted net tangible book value per Common Share immediately after this Offering | $|
|  Dilution in pro forma, as adjusted net tangible book value per Common Share to purchasers in this Offering | $|

---

Each $1.00 increase (decrease) in the assumed Offering Price of $ per Common Share would increase (decrease) the pro forma, as adjusted net tangible book value per Common Share immediately after this Offering by $, and the dilution in pro forma, as adjusted net tangible book value per Common Share to purchasers in this Offering by $, assuming the number of Common Shares offered by us, as set forth on the cover page of this Prospectus, remains the same, and after deducting the underwriting discounts and commissions payable by us.

We may also increase or decrease the number of Common Shares we are selling in this Offering. An increase (decrease) of 1,000,000 in the number of Common Shares offered by us in this Offering, as set forth on the cover page of this Prospectus, would increase (decrease) the pro forma, as adjusted net tangible book value per Common Share immediately after this Offering by $, and the dilution in pro forma, as adjusted net tangible book value per Common Share to purchasers in this Offering by $, assuming the assumed Offering Price of $ per Common Share remains the same, and after deducting the underwriting discounts and commissions payable by us.

The table and information above assume no exercise by the Underwriters of their option to purchase additional Common Shares in this Offering. If the Underwriters exercise in full their option to purchase up to additional Common Shares from us, the pro forma, as adjusted net tangible book value per Common Share immediately after this

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Offering would be $ per Common Share, and the dilution in pro forma, as adjusted net tangible book value per Common Share to purchasers in this Offering would be $ per Common Share, in each case assuming an assumed Offering Price of $ per Common Share, and after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.

The following table summarizes, as of the date hereof, on an adjusted pro forma basis as described above, the number of Common Shares acquired or to be acquired, and the total consideration and the average price per Common Share (i) paid to us by existing shareholders and (ii) to be paid by new investors purchasing Common Shares in this Offering at an assumed Offering Price of $ per Common Share, before deducting underwriting discounts and commissions and estimated offering expenses payable by us.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** | **Total Consideration** | **Total Consideration** |
|  | **Number** | **Percent** | **Percent** | **Weighted Average<br>Price Per Share** |
|  Existing shareholders<sup>(1)</sup> | 8559784 | % | $% | $|
|  Purchasers in this Offering |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Total<sup>(1)(2)</sup> |  | 100% | $100% | $|

---

____________

(1) (2) Each $1.00 increase (decrease) in the assumed Offering Price of $ per Common Share would increase (decrease) the total consideration paid by purchasers in this Offering and the weighted average price per share paid by all shareholders by $ and $ per share, respectively, and in the case of an increase, would increase the percentage of total consideration paid by purchasers in this Offering by %, and in the case of a decrease, would decrease the percentage of total consideration paid by purchasers in this Offering by %, assuming the number of Common Shares offered by us, as set forth on the cover page of this Prospectus, remains the same, and after deducting the underwriting discounts and commissions payable by us.

Similarly, an increase (decrease) of 1,000,000 in the number of Common Shares offered by us in this Offering, as set forth on the cover page of this Prospectus, would increase (decrease) the total consideration paid by purchasers in this Offering and the weighted average price per share paid by all shareholders by $ and $ per share, respectively, and in the case of an increase, would increase the percentage of total consideration paid by purchasers in this Offering by %, and in the case of a decrease, would decrease the percentage of total consideration paid by purchasers in this Offering by %, assuming the assumed Offering Price of $ per Common Share remains the same, and after deducting the underwriting discounts and commissions payable by us.

The table and information above assume no exercise by the Underwriters of their option to purchase additional Common Shares in this Offering. If the Underwriters exercise in full their option to purchase up to additional Common Shares from us, the number of Common Shares underlying the Common Shares held by purchasers in this Offering would be increased to Common Shares, or % of the total number of Common Shares outstanding immediately after this Offering, and the percentage of Common Shares held by our existing shareholders would be reduced to % of the total number of Common Shares outstanding immediately after this Offering.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF<br>FINANCIAL CONDITION AND RESULTS OF OPERATIONS
*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the section of this Prospectus entitled "Business", and our consolidated financial statements and related notes thereto, included elsewhere in this Prospectus. In addition to historical financial information, the following discussion contains forward*-looking *statements that reflect our current plans, expectations, estimates and beliefs. Our actual results could differ materially from those discussed in the forward*-looking *statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Prospectus, particularly in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward*-Looking *Statements."*

This Management Discussion and Analysis ("**MD&A**") supplements, but does not form part of, the Consolidated Financial Statements for the year ended December 31, 2021 and the Condensed Consolidated Interim Financial Statements for the six months ended June 30, 2022. Consequently, the following discussion and analysis of the financial condition and results of operations for the Company should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2021, and the related notes therein, and the unaudited Condensed Consolidated Interim Financial Statements for the six months ended June 30, 2022, and the related notes therein, which have been prepared in accordance with International Financial Reporting Standards, consistently applied.

#### Corporate Overview
The Company was incorporated under *Business Corporations Act* (British Columbia) on January 26, 2021.

On August 19, 2021, the Company and UMI entered into the Merger Agreement, providing for the acquisition of all the issued and outstanding common shares of UMI. Pursuant to the Merger Agreement, UMI and Urban Mining Merger Sub, Inc., a wholly-owned subsidiary of the Company, amalgamated/merged and continued under the name of UMI. As a result of the Merger, UMI became a wholly-owned subsidiary of the Company on September 1, 2021. Subsequently, UMI changed its name to Modern Mining Technology Corp. as of December 8, 2021. UMI was incorporated in the State of Delaware on August 8, 2017 for the purpose of refining precious metals from E-Waste.

Modern Mining is a "landfill-to-commodity" business aiding the transition away from traditional mining to a cleaner, safer and profitable process to mine valuable metals from a vast, growing and largely ignored global resource, electronic waste or *E*-Waste *(or sometimes also referred in the waste industry as "EEE" for Electrical and Electronic Equipment or "WEEE" for Waste Electrical and Electronic Equipment).* E-Waste includes all items of electrical and electronic equipment that have been discarded as waste (including a wide range of products; almost any household or business item with circuitry or electrical components). Once concentrated, the resulting material serves as feedstock for the Company's purification process.

Our U.S. wholly-owned operating subsidiary (formerly, "Urban Mining International Inc.", and subsequent to the completion of the Merger, "Modern Mining Technology Corp.") was originally incorporated in August, 2017. Since 2017, management has been focused on research and development activities relating to the feasibility of its business of the treatment of electronic waste and the processes associated therewith. To that end, the Company purchased and installed certain equipment that allowed for the testing of the Company's E-Waste recovery processes. Such research and development activities resulted in the sale of recovered gold in 2020 in the amount of $23,586.

The Company formerly operated out of a 14,400 square foot facility located at 5905 Triangle Dr., Raleigh, North Carolina, 27617 pursuant to a lease dated July 29, 2020 (the "**Former Facility Lease**"). On October 22, 2021, the Company, with the consent of the landlord thereunder, surrendered the Former Facility Lease due to the fact that the Company determined it needed a larger facility to accommodate its anticipated growth and scale-up plans. On September 21, 2022, the Company entered into a lease agreement with Grand Ventures, LLC, a North Carolina limited liability company, for the lease of the Company's North Carolina facility for E-Waste feedstock processing. The lease term is for three years, with a right to extend it for three additional one year terms. Annual rent during the first three lease years is $120,000, payable in monthly installments of $10,000. This is subject to adjustment upon extension of the lease term.

#### Operating Segments
The Company operates in one operating segment, namely the refinement of precious metals from E-Waste.

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To date, the Company has generated nominal revenues from its operations. For the year ended December 31, 2021, the Company had no revenues and for the year ended December 31, 2020, the Company generated approximately $23,600 in revenues, consisting primarily of the sale of gold. The decrease in revenue, year-over year, was due to the Company focusing on revamping its business operations, facility, and financing opportunities.

The Company has and expects to continue to report negative earnings until the Company's E-Waste processing program ramps up to full-scale production. The Company will continue to utilize proceeds from financing and equity issuances to fund its business operations and general and administrative operating costs.

#### Six Months Ended June 30, 2022 and 2021

#### Results of Operations
The comprehensive loss reported during the six months ended June 30, 2022 was $1,264,833 compared to loss of $755,759 in the prior six month period. The main fluctuations in costs were as follows:

---

| | | |
|:---|:---|:---|
|  **Professional fees (rounded to the nearest '000)** | **Six Months <br>Ended <br>June 30, <br>2022** | **Six Months <br>Ended <br>June 30, <br>2021** |
|  | $387000 | $46000 |
|  Variance | $341000 |  |

---

Increased professional fees were due to additional legal and accounting fees related to the Company preparing for this Offering.

---

| | | |
|:---|:---|:---|
|  **Consulting fees (rounded to the nearest '000)** | **Six Months <br>Ended <br>June 30, <br>2022** | **Six Months <br>Ended <br>June 30, <br>2021** |
|  | $290000 | $21000 |
|  Variance | $269000 |  |

---

The increase in consulting fees were due to additional consulting fees related to the Company preparing for this Offering.

---

| | | |
|:---|:---|:---|
|  **Management and director fees (rounded to the nearest '000)** | **Six Months <br>Ended <br>June 30, <br>2022** | **Six Months <br>Ended <br>June 30, <br>2021** |
|  | $223000 | $— |
|  Variance | $223000 |  |

---

The increase in management and director fees was due to director and consulting fees paid to the Company's directors and executive officers during the six months ended June 30, 2022. See Note 17 to the unaudited Condensed Consolidated Interim Financial Statements for the six months ended June 30, 2022.

---

| | | |
|:---|:---|:---|
|  **Share based compensation (rounded to the nearest '000)** | **Six Months <br>Ended <br>June 30, <br>2022** | **Six Months <br>Ended <br>June 30, <br>2021** |
|  | $— | $311000 |
|  Variance | $(311000) |  |

---

Share based compensation was nil during the six months ended June 30, 2022 as no additional shares were authorized during the period and there were no share issuances.

---

| | | |
|:---|:---|:---|
|  **Amortization of right-of-use asset (rounded to the nearest '000)** | **Six Months Ended <br>June 30, <br>2022** | **Six Months <br>Ended <br>June 30, <br>2021** |
|  | $— | $83000 |
|  Variance | $(83000) |  |

---

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Amortization of right-of-use assets was nil as of the six months ended June 30, 2022 because the termination fee of $70,000 in connection with the facility lease agreement originally set to expire in August 2025 was fully paid and there were no amounts outstanding and recorded in accounts payable and accrued liabilities.

#### Years Ended December 31, 2021 and 2020

#### Results of Operations
The comprehensive loss reported during the year ended December 31, 2021 was $2,075,902 compared to loss of $690,039 in the prior year. The main fluctuations in costs were as follows:

---

| | | |
|:---|:---|:---|
|  **Professional fees (rounded to the nearest '000)** | **Year Ended December 31, 2021** | **Year Ended December 31, 2020** |
|  | $535000 | $64000 |
|  Variance | $471000 |  |

---

Increased professional fees were due to additional legal and accounting fees related to the Company preparing for this Offering.

---

| | | |
|:---|:---|:---|
|  **Employee cost (rounded to the nearest '000)** | **Year Ended December 31, 2021** | **Year Ended December 31, 2020** |
|  | $359000 | $169000 |
|  Variance | $190000 |  |

---

The increase in employee costs related to fiscal 2021 was for the full year of employee costs compared to the prior year's operations commencing part way through the year.

---

| | | |
|:---|:---|:---|
|  **Share based compensation (rounded to the nearest '000)** | **Year Ended December 31, 2021** | **Year Ended December 31, 2020** |
|  | $311000 | $210000 |
|  Variance | $101000 |  |

---

The increase in share based compensation related to management's efforts in preserving cash of the Company and therefore awarding shares to management in lieu of cash.

---

| | | |
|:---|:---|:---|
|  **Impairment of equipment (rounded to the nearest '000)** | **Year Ended December 31, 2021** | **Year Ended December 31, 2020** |
|  | $295000 | $— |
|  Variance | $295000 |  |

---

Due to uncertainty surrounding the realization of future economic benefits and the lease termination on October 22, 2021, the Company carried out a review of the recoverable amounts of its manufacturing equipment. The review led to the recognition of a non-cash impairment loss of $294,748 in the consolidated statements of loss and comprehensive loss (2020 — $Nil).

<u>**<u>Liquidity and Capital Resources</u>**</u>

#### Subsequent to June 30, 2022
On September 21, 2022, the Company entered into a lease agreement with Grand Ventures, LLC, a North Carolina limited liability company, for the lease of the Company's North Carolina facility for E-Waste feedstock processing. The lease term is for three years, with a right to extend for three additional one year terms. Annual rent during the first three lease years is $120,000, payable in monthly installments of $10,000. This is subject to adjustment upon extension of the lease term. A security deposit in the amount of $30,000 was paid upon execution of the lease and will be returned without interest at the end of the term, or upon the earlier termination within the conditions of this lease.

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#### Subsequent to December 31, 2021
On April 7, 2022, pursuant to the Debenture Offering, the Company issued $3,331,390 principal amount of 5% unsecured Debentures in a private placement. The Debentures were issued pursuant to a Debenture Indenture made as of April 7, 2022 between the Company and Computershare, as trustee.

Pursuant to the Debenture Offering, CDS & Co is the registered holder of a global debenture certificate in the amount of $2,159,850 and holds same for multiple beneficial holders of the Debentures while the balance of Debentures (namely $1,171,540 principal amount), are held in certificated form or are represented by DRS advices in the name of various investors. In connection with the Debenture Offering, a total of 535 investors participated and the Company paid $156,994 in commissions to various investment dealers/brokers.

The Debenture Indenture contains customary provisions typically found in an instrument of this type including, among other things, mechanisms for the holding of Debenture holder meetings. The Debentures rank *pari*-passu with each other series of Debentures issued pursuant to the Debenture Indenture. The Debentures bear interest at five percent (5%) per annum and are unsecured obligations of the Company. The Debentures are due thirty-six (36) months following their issuance (i.e. April 7, 2025). The Debenture Indenture also provides that in the event the Company completes a U.S. listing (i.e., the Offering), the principal amount plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00, and shall be subject to a six (6) month hold period from the closing of the Offering.

In February 2022, the Company entered into the transition agreement with Basil Botha, to provide technical advisory services at $14,000 per month payable until eighteen months following the date of completion of the Offering. Mr. Botha will also be entitled to a one-time bonus of $50,000 upon Mr. Botha assisting the Company in (i) securing the lease of the new Facility, (ii) assisting in the commissioning of key pilot plant equipment and (iii) managing the engineering study presently being conducted by a third party process modelling and industrial optimization firm. The Company further agreed to repay the short-term loan of $78,050 plus interest within ten days of closing of the Offering.

#### Years Ended December 31, 2021 and 2020
The Company has financed its operations from equity and debt advances from its shareholders. The Company has no external credit facilities or bank loans.

The Company has an authorized capital consisting of an unlimited number of Common Shares of which, as of the date hereof, 8,559,784 Common Shares are issued and outstanding.

As stated previously, ahead of the completion of the Merger, Fortuna Investment Corp., an affiliate of Fortuna, loaned funds to UMI in the aggregate principal amount of $111,000. The principal amount was advanced in two installments (on June 4, 2021 for $60,000 and on July 14, 2021 for $51,000). In addition, on June 17, 2021, and arm's-length investor advanced $45,000 to UMI. All such advances bore interest at five percent (5%) per annum. Such advances, together with interest thereon, were paid in full between April 21-26, 2022.

Basil Botha, the Company's former President, Chief Executive Officer and Director, advanced $78,050 in three installments (on March 15, 2021 for $16,050; on March 29, 2021 for $34,000 and on July 15, 2021 for $28,000). These advances, which bear interest at one percent (1%) per month on a compounded basis, are to be repaid in full within ten (10) days of the closing of the Offering.

Howard Glicksman, the Company's former Chief Technology Officer and Director, advanced $31,000 in two installments (April 15, 2021 for $16,000**)**; and September 30, 2021 for $15,000). The advances carried interest at one percent (1%) per month and were to be repaid when the Company was able to make repayment. The Company fully repaid these installments in July 2022.

On July 28, 2021, UMI issued 49,500,000 warrants (the "**UMI Warrants**") to investors in a private placement. Each UMI Warrant was issued for consideration of C$0.0035 for aggregate gross proceeds of C$173,250 ($137,365). Upon completion of UMI's Consolidation, the UMI Warrants were consolidated into 16,500,000 warrants with a revised exercise price of C$0.25 (the "**Investor Rights Warrants**"). Subsequently, upon completion of the Merger, the Investor Rights Warrants were exchanged for an equivalent number of warrants of the Company. The Investor

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Rights Warrants are exercisable for three (3) years from the closing of the Offering. The Investor Rights Warrants (including any Common Shares issuable thereunder) are subject to further restrictions such that they will be released from lock-up six (6) months following the closing of the Offering.

On November 9, 2021, the Company issued 1,270,149 Common Shares in a private placement for $0.50 per Common Share (C$0.6224), to raise aggregate gross proceeds of $635,075.

<u>**<u>Plan of Operations</u>**</u>

The continuation of our current plan of operations requires us to raise significant additional capital. If we are successful in raising capital through the sale of Common Shares pursuant to this Offering, we believe that the Company will have sufficient cash resources to fund its plan of operations for the next 24 months. If we are unable to do so, we may have to curtail and possibly cease some operations. The Company intends to receive proceeds from the Offering to carry out the following near term and longer-term goals. The approximate timing and costs associated with these target milestones are also summarized below. These target dates and cost estimates may change subject to multiple factors including, but not limited to, the following: (i) the timing of the Offering and quantity of capital raised; (ii) key equipment availability, cost, and delivery timing; (iii) supply chain fluctuations; (iv) availability and access to labor markets (skilled and unskilled); (v) permitting processes; and (vi) availability and costs of E-Waste feedstock supply. See also "Risk Factors".

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Target Milestone** | **Target <br>Start Date** | **Target <br>Completion Date** | **Cost <br>Estimate** |
| 1 | Complete the build-out of our commercial scale PCP and APP facilities to be used in our future commercial plant in North Carolina (inclusive of all estimated direct and indirect capital expenditures) | IPO | IPO +6 months | $5.5M |
| 2 | Secure high-quality E-Waste feedstock through written supply arrangements to support process development, commissioning, and start-up activities | IPO | IPO +6 months | NA |
| 3 | Grow and train our front-line PCP and APP operating teams | IPO | IPO +6 months | $1M |
| 4 | Complete the commissioning of our facilities, and demonstrate ramp-up to full-scale PCP processing capacity of approximately 20-25 tonnes of E-Waste per day, including re-engineering and debottlenecking as needed | IPO +6 months | IPO +12 months | $1M |
| 5 | Initiate and seek R2 Standard (as defined herein) certification | IPO +6 months | IPO +18 months | $250k |
| 6 | Add supplementary E-Waste supply contracts to ensure our PCP facility can be operated at design capacity of approximately 8,000 tonnes per year; | IPO +6 months | IPO +18 months | NA |
| 7 | Achieve steady-state commercial production and revenue status | IPO +12 months | IPO +18 months | $1M |
| 8 | Initiate our R&D program to expand our competitive and environmental advantages | IPO +18 months |  |  |
| 9 | Develop facilities expansion and business growth roadmap (additional PCP and APP facilities, domestically/internationally) | IPO +18 months |  |  |

---

We will continually evaluate our plan of operations to determine the manner in which we can most effectively utilize our limited cash resources. The timing of completion of any aspect of our plan of operations is highly dependent upon the availability of cash to implement that aspect of the plan and other factors beyond our control. There is no assurance that we will successfully obtain the required capital or revenues, or, if obtained, that the amounts will be sufficient to fund our ongoing operations.

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#### Historical Cash Flow Information

#### Summary of Annual and Interim Results
The following tables summarize selected financial data for the Company for each of the two most recently completed financial years and six month periods. The information set forth below should be read in conjunction with the consolidated audited financial statements and the unaudited condensed consolidated interim financial statements, prepared in accordance with International Financial Reporting Standards and Canadian generally accepted accounting principles as applicable.

---

| | | |
|:---|:---|:---|
|  **Fiscal Year Ended** | **December 31, 2021** | **December 31, 2020** |
|  Total Revenues | $— | $23586 |
|  Net and Comprehensive Loss for the Year | $2076190 | $690039 |
|  Loss and Comprehensive Loss per Share (Basic and Diluted) | $(0.28) | $(0.18) |
|  Total Assets | $1314172 | $1255849 |

---

---

| | | |
|:---|:---|:---|
|  **Six Months Ended** | **June 30, <br>2022** | **June 30, <br>2021** |
|  Total Revenues | $— | $— |
|  Net Loss for the Period | $1267448 | $755759 |
|  Comprehensive Loss for the Period | $1264832 | $755759 |
|  Loss per Share (Basic and Diluted) | $(0.14) | $(0.11) |
|  Total Assets | $2326366 | $1071258 |

---

#### Outstanding Shares
As at December 31, 2021 and June 30, 2022, the Company had 8,559,784 Common Shares issued and outstanding on a non-diluted basis.

As at December 31, 2021 and June 30, 2022, the Company had 25,208,116 warrants that were issued and outstanding. These warrants remained anti-dilutive as at December 31, 2021 and as at the date hereof, and therefore, were not included in the calculation of diluted earnings per share.

As at the date hereof, potentially dilutive securities for the diluted earnings per share calculations consist of 666,278 contingently issuable shares of convertible debt at an assumed conversion price of $5 per common share and 25,208,116 share purchase warrants. When a loss from continuing operations exists, all dilutive securities and potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share.

As of the date hereof, the Company has 16,500,000 Investor Rights Warrants issued and outstanding, which are exercisable for three (3) years from the closing of this Offering.

On April 7, 2022, the Company issued $3,331,390 principal amount of 5% unsecured convertible debentures in a private placement. The Debenture Indenture provides that in the event the Company completes a U.S. listing, such as this Offering, the principal amount of the Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00, and shall be subject to a six (6) month hold period from the closing of the Offering.

#### Financial Position and Liquidity as at December 31, 2021
As at December 31, 2021, the Company's financial instruments consisted of cash and cash equivalents, security deposit, accounts payable and accrued liabilities, equipment loan and short-term loans.

The following discussion relates to the year ended December 31, 2021 and compares that to the fiscal 2020:

As at December 31, 2021, the Company had a working capital deficit of $576,000 compared to a working capital deficit of $137,000 as at December 31, 2020.

Cash used in operating activities during year ended December 31, 2021 totaled $622,768 (December 31, 2020: $267,482).

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Cash used in investing activities during the year ended December 31, 2021 totaled $Nil (December 31, 2020: $142,136).

Cash raised in financing activities during the year ended December 31, 2021 totaled $936,918 (December 31, 2020: $505,707).

#### Financial Position and Liquidity as at June 30, 2022
As at June 30, 2022, the Company's financial instruments consisted of cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities, equipment loan and short-term loans, convertible debt and interest payable.

The following discussion relates to the six months period ended June 30, 2022 and compares that to the same period in 2021:

As at June 30, 2022, the Company had a working capital of $1,383,000 compared to a working capital deficit of $576,000 as at December 31, 2021.

Cash used in operating activities during the six months period ended June 30, 2022 totaled $1,148,221 (June 30, 2021: $242,842).

Cash raised in financing activities during the six months period ended June 30, 2022 totaled $3,011,770 (June 30, 2021: $191,951).

<u>**<u>Trend Information</u>**</u>

Because we are still in the start-up phase of our operations, we are unable to identify any recent trends in revenue or expenses. Thus, we are unable to identify any known trends, uncertainties, demands, commitments or events involving our business that are reasonably likely to have a material effect on our revenues, income from operations, profitability, liquidity or capital resources, or that would cause the reported financial information in this Prospectus to not be indicative of future operating results or financial condition.

#### Going Concern
The Company is in the preliminary stages of its planned operations and has not yet determined whether its processes and business plans are economically viable. The continued operations of the Company are dependent upon the ability of the Company to obtain sufficient funding to carry out its business plans, the existence of future profitable production, or alternatively, upon the Company's ability to dispose of its assets on an advantageous basis, all of which are uncertain.

The Company's financial statements have been prepared on a going concern basis, which assumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company will need to raise additional capital in the near term to fund its ongoing operations and business activities. There can be no assurance that this Offering will conclude or that other financings will be available on terms acceptable to the Company or at all. As a result of these circumstances, there are material uncertainties that cast significant doubt as to the appropriateness of the going concern presumption.

The business of environmental recycling and processing involves a high degree of risk, and there can be no assurance that current business development programs will result in profitable operations. The Company's continued existence is dependent upon the acquisition of assets, preservation of its interest in the underlying assets, acquisition of various licenses, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company's ability to dispose of its assets and operations on an advantageous basis.

The Company's financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and classifications in the statement of financial position that may be necessary if the Company were unable to continue as a going concern, and these adjustments could be material.

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#### Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.

#### Direct Capital Expenditures
Our contractual obligations for ongoing capital expenditures are described below. With the proceeds from the recently completed Debenture Offering, we have entered into a new facility lease in Greenville, North Carolina and acquired various pieces of production equipment.

The Company estimates that to equip its new production facility with the required processing equipment (including laboratory equipment) to run its main US processing facility, will require an initial investment of approximately $1.6-$2.1 million in direct capital. Such equipment includes, but is not limited to, gas scrubbers, conveyor belt systems, sensor based sorters, air compressors, various shredders and sizers, dying units, dissolution and precipitate vessels, various chemical process tanks, induction melting systems, vacuum filtration units, security systems, etc. The Company understands that such capital costs and time lines could change, and as such, it continues to review and update major equipment quotes ahead of any advance procurement strategies.

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to pursue the Company's objectives. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.

In the management of capital, the Company includes its cash balances and components of shareholders' equity. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue additional shares, issue debt, acquire or adjust the amount of cash and cash equivalents and investments.

At this stage of the Company's development, in order to maximize ongoing development efforts, the Company does not pay out dividends. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

#### Emerging Growth Company Status
We are an "emerging growth company", as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to SEC reporting companies that are not emerging growth companies. For so long as we remain an emerging growth company, we will not be required to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• present more than two years of audited financial statements and two years of related management's discussion and analysis of financial condition and results of operations disclosure in our registration statement of which this Prospectus forms a part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disclose certain executive compensation related items.

We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the completion of this Offering, (ii) the last day of the fiscal year during which we have total annual gross revenue of at least $1.07 billion, (iii) the date on which we are deemed to be a "large accelerated filer" under the Exchange Act, which means the market value of our Common Shares that are held by non-affiliates exceeds $700.0 million as of the last business day of our most recently completed second fiscal quarter, and (iv) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

In this Prospectus, we have taken advantage of certain of the reduced reporting requirements as a result of being an emerging growth company and a foreign private issuer. Accordingly, the information that we provide in this Prospectus may be different than the information you may receive from other public companies in which you hold equity interests. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

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#### BUSINESS
<u>**<u>Our History</u>**</u>

The Company was incorporated on January 26, 2021 in the Province of British Columbia, Canada as 1285896 B.C. Ltd. The Company's name was changed to "Modern Mining Technology Corp." on September 1, 2021. The Company is an early-stage company headquartered in Vancouver, Canada with a focus on E-Waste recycling and processing.

Our registered and head office is located at 1055 West Georgia Street, 1500 Royal Centre, Vancouver, British Columbia, V6E 4N7 Canada. Our business operations will be located in Greenville, North Carolina. Our website address is *www.modernmining.com.* The information contained therein or accessible thereby shall not be deemed to be incorporated into this Prospectus.

Pursuant to our notice of articles, we are authorized to issue an unlimited number of Common Shares. As of December 31, 2021, we had 8,559,784 Common Shares issued and outstanding.

The Company has one wholly-owned U.S. subsidiary, Modern Mining Technology Corp., which was formed under the laws of the State of Delaware on August 8, 2017 under the name "Evotus Inc." It subsequently changed its name to "Urban Mining International Inc." and ultimately, "Modern Mining Technology Corp."

<u>**<u>Recent Developments</u>**</u>

In March 2021, UMI and Fortuna engaged in due diligence and preliminary discussions regarding a possible business combination transaction. In connection with such discussions, on or around May 5, 2021, UMI and Fortuna entered into a non-binding letter of intent. Negotiation regarding the Merger Agreement (as defined below) and related matters commenced thereafter and continued until the Merger Agreement between UMI, the Company and Merger Sub was executed.

In connection with the Merger, on August 19, 2021, the board of directors of UMI unanimously: (a) approved the consummation of the Merger and the transactions contemplated therein; and (b) determined that the Merger was in the best interests of UMI and its stakeholders. On August 23, 2021, the shareholders of UMI approved the Merger.

Pursuant to the Merger Agreement, on September 1, 2021, the Merger was completed. UMI then changed its name to Modern Mining Technology Corp. on December 8, 2021.

All securities issued by the Company in connection with the Merger (other than the Investor Rights Warrants and Common Shares issuable thereunder) are subject to restrictions such that during the period ending on the date twelve (12) months after the Offering (herein, the "**Lock**-Up **Period**") the holder thereof may not (a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Common Shares, preferred shares or securities exercisable, convertible or exchangeable for Common Shares or preferred shares of the Company ("**Capital Shares**") or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Shares, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Capital Shares or other securities, in cash or otherwise. After the expiration of such Lock-Up Period, until the date twenty-eight (28) months after the date of the IPO (the "**Leak**-Out **Period**") such holder may only sell shares of Capital Shares within the following cumulative limits based on the aggregate number of shares of Capital Shares beneficially owned by such holder on the commencement date of such Leak-Out Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12 months from closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 16 months from closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 20 months from closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 24 months from closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 28 months from closing of the Offering — 20%

Prior to the completion of the Merger, UMI completed the Consolidation. As a result, 21,868,905 common shares were consolidated into 7,289,635 common shares. Upon completion of the Merger, all such shares of UMI were exchanged into 7,289,635 Common Shares.

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In addition to the completion on September 1, 2021 of the Merger described above, the Company and its wholly-owned U.S. subsidiary, have raised debt and equity capital as described below.

In connection with the anticipated completion of the Merger, Fortuna Investment Corp., an affiliate of Fortuna, loaned funds to UMI in the aggregate principal amount of $111,000. The principal amount was advanced in two installments (June 4, 2021 for $60,000 and July 14, 2021 for $51,000). In addition, on June 17, 2021, an arm's-length investor advanced $45,000 to UMI. All such advances bore interest at five percent (5%) per annum. Such advances, together with interest thereon, were paid in full between April 21-26, 2022.

Basil Botha, the Company's former President, Chief Executive Officer and Director, advanced $78,050 in three installments (March 15, 2021 for $16,050; March 29, 2021 for $34,000 and July 15, 2021 for $28,000). The advances bear interest at one percent (1%) per month and are to be repaid in full within ten (10) days of closing of the Offering.

Howard Glicksman, the Company's former Chief Technology Officer and Director, advanced $31,000 in two installments (April 15, 2021 for $16,000); and September 30, 2021 for $15,000). The advances carried interest at one percent (1%) per month and were to be repaid when the Company was able to make repayment. The Company fully repaid these installments in July 2022.

In connection with the anticipated completion of the Merger, on July 28, 2021, UMI issued 49,500,000 **UMI Warrants** to investors in a private placement. Each UMI Warrant was issued for consideration of C$0.0035 for aggregate gross proceeds of C$173,250 ($137,365). Upon completion of the Consolidation, the UMI Warrants were consolidated into 16,500,000 Investor Rights Warrants. Subsequently, upon completion of the Merger, the Investor Rights Warrants were exchanged for an equivalent number of warrants of the Company. The warrants are exercisable for three (3) years from the closing of the Offering. The Investor Rights Warrants (including any Common Shares issuable thereunder) are subject to further resale restrictions such that they will be released from lock-up six (6) months following the closing of the Offering.

On November 9, 2021, the Company issued 1,270,149 Common Shares in a private placement for $0.50 per Common Share (C$0.6224), to raise aggregate gross proceeds of $635,075.

With effect as of March 1, 2022, Kuljit (Jeet) Basi was appointed the President and Chief Executive Officer of the Company and Basil Botha, the Company's former President, Chief Executive Officer and director of the Company, transitioned into a new role with the Company as its Principal Technical Advisor.

On April 7, 2022, the Company completed the Debenture Offering. The Debentures were issued pursuant the Debenture Indenture between the Company and Computershare. The Debenture Indenture contains customary provisions typically found in an instrument of this type including, among other things, mechanisms for the holding of Debenture holder meetings. The Debentures rank *pari*-passu with each other series of Debentures issued pursuant to the Debenture Indenture. The Debentures bear interest at five percent (5%) per annum and are unsecured obligations of the Company. The Debentures are due thirty-six (36) months following their issuance (i.e. April 7, 2025). The Debenture Indenture also provides in the event the Company completes a U.S. listing (i.e., the Offering), the principal amount plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00, and shall be subject to a six (6) month hold period from the closing of the Offering.

On July 13, 2022, the Company entered into the Investor Rights Agreement. Pursuant to the Investor Rights Agreement, the Company agreed that each Investor (as defined in the Investor Rights Agreement) shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote on any matter at any meetings of shareholders of the Company. Each Company warrant entitles the holder thereof to one vote per warrant. Further, the Warrantholder Representative shall be entitled to nominate three (3) directors to the Board, provided that each director nominee shall be a Canadian resident and shall meet the requirements of applicable corporate, securities and other laws. The Investor Rights Agreement will terminate upon completion of the Offering, and consequently, the voting rights granted under the Investor Rights Agreement to the holders of the Investor Rights Warrants will also terminate at such time.

On August 31, 2022, the Company entered into the Convertible Debentures IRA. Pursuant to the Convertible Debentures IRA, the Company agreed that each Investor (as defined in the Convertible Debentures IRA) shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote on any matter at any meetings of shareholders of the Company. Assuming an Offering Price of $, which would be the midpoint of the offering price range on the front of this Prospectus, each $ of Convertible Debentures will equal to one Common Share, entitling the holder thereof to one vote.

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On September 21, 2022, the Company entered into a lease agreement with Grand Ventures, LLC, a North Carolina limited liability company, for the lease of the Company's North Carolina facility for E-Waste feedstock processing. The lease term is for three years, with a right to extend it for three additional one year terms. Annual rent during the first three lease years is $120,000, payable in monthly installments of $10,000. This is subject to adjustment upon extension of the lease term. At any time during the lease term, the Company has the right to terminate the lease upon twelve (12) months' prior written notice to Grand Ventures, LLC.

<u>***<u>Our Company</u>***</u>

The Company is a "landfill-to-commodity" focused business venture, offering a cleaner, safer, and lower-cost alternative compared to traditional mining operations. Our core business is aimed at processing and extracting strategic commodities from the vast, growing, and largely ignored global resource of E-Waste, and transforming these end-of-life landfill-bound materials into high-value resources. Value is captured by using our aqueous based processes to recover, process and refine commodity metals such as: gold, palladium, silver, copper and potentially 30 other metals.

<u>***<u>Our Market</u>***</u>

Our market consists of two parts: E-Waste feed supply and produced commodity sales.

*E-Waste Feed Supply*

The Report provides that the world dumped a staggering 53.6 million tonnes of E-Waste in 2019 alone — equivalent to the weight of 250,000 jumbo jets. The Report also predicts global E-Waste will reach 74 million tonnes annually by 2030. The Report further indicates that approximately $57 billion worth of gold, silver, copper, platinum and other high-value, recoverable materials were wasted through landfill dumping or incineration burning, rather than being collected for treatment and reuse. It is Modern Mining's business objective to address this situation and recover lost commodity materials from this E-Waste.

*Commodity Sales*

The Journal also produced findings that the cost to recycle E-Waste is significantly less than the cost of traditional mining. Lower production costs is a strategic advantage compared to traditional commodity producers. In addition to an increasing world appetite for commodities, a number of large companies have announced their roadmaps to a more socially responsible supply chain. For example, in 2017, Apple announced its intention to use only renewable or recyclable materials in its products while, in 2021, Dell announced its goal of making more than 50% of their products content with recycled or renewable material. These are two examples of a growing trend of companies being more aware of their supply chains.

<u>***<u>Our Business, Our Products and Services</u>***</u>

To achieve our objectives, we have developed a two-step propriety process while our envisioned value-chain can be broken down into 3 main steps:

1) We secure quality E-Waste feedstock from primary recyclers.

2) We separate the plastics from the metals using our proprietary pre-concentration methods. The plastics are then sold to downstream third-party recyclers and suppliers.

3) The concentrated metals streams are treated though our proprietary aqueous purification process, and the metal products are then sold into industrial supply chains.

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The following depicts the Company's three main processing steps:

![](tflowchart_001.jpg)

The first step in our process is securing quality E-Waste feedstock from established primary recyclers through stringent but practical contracts to ensure source consistent quality and quantities. These recyclers collect and break down bulk products and combine the E-Waste into separate product streams for downstream processing.

By its nature, the feedstock will be variable, due to the large variety of PCBs that exist. To give a basis for the plant design, we calculated a "typical" feedstock composition. This was done by assigning the feedstock into one of five categories (low grade, low to mid-grade, mid-grade, mobile phone PCBs, and ram PCBs). Metal concentration values were collected from public literature for each of these categories. The lowest non-zero published concentration for each metal and for each category was using in the typical feed stock calculations. With these metal concentration numbers, we calculated a weighted average, based on our existing non-binding supplier LOIs, and calculated a global "typical" feedstock composition. The "typical" metal concentrations was used in the typical feedstock calculations. The "typical" metal concentrations are: Cu 150.7 kg/t; Sn:14.1 kg/t; Au: 136.11 g/t; Ag: 619.65 g/t and Pd: 60.17 g/t. The calculated typical gold grade if 136 g/t is 100 times higher than the average gold mine grade.

#### Pre-Concentration Plant
The second step in our process is the PCP. The primary purpose of the PCP is to isolate and separate the high-value metals from the plastics, epoxy resins, and fiberglass contained in the feedstock. Building on our bench and pilot plant process designs, target commodities in the incoming feedstock will be liberated using various mechanical methods and then recovered into MSC. This will be done using various combinations of advanced beneficiation techniques, such as sensor-based sorting, gravimetric discretization, electromagnetic scanning and physical separation. By locating PCPs close to suppliers of E-Waste, we aim to reduce transportation costs of both our incoming feedstock and the MSC for downstream processing at our centralized APP.

The PCP design was tested at both the low grade and ram PCB (high grade) ends of the supply spectrum and was found to produce comparable MSC, independent of the feed grade.

#### Aqueous Purification Plant
The third step in our process is the APP itself. The primary purpose of the APP is to isolate the high-value metals within the MSC, separate them from each other, and then convert the individual metals into refined products for sale. Target commodities from the incoming MSC (such as gold, silver, copper, platinum, palladium and tin) will be liberated and separated using liquid-based methods, and then purified into further refined products using specialized combinations of advanced hydrometallurgical techniques, such as precipitation reactions, ionic dissolution, lixiviant saturation and selective concentration. APPs will be strategically located in centralized hubs to take advantage of logistical and infrastructure related synergies. Commercial APPs will be expected to process MSCs from multiple PCPs, thus, they will be designed to allow the facility to operate across a wide range of metal recovery and product grade conditions.

Test work, coupled with published literature, indicate that an overall plant performance objective of greater than 90% recovery of economic metals is achievable for our combined processes. For illustrative purposes, based

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on the envisioned "typical" feedstock metal concentrations, coupled with our recovery performance objectives, it is anticipated that on average every 1,000lbs of processed feedstock will yield approximately 135 pounds of copper, 13 pounds of tin, 1.8 ounces of gold, 8.2 ounces of silver, and 0.8 ounces of palladium.

We plan to sell final products produced by the APPs on the metal commodities markets into both domestic and international supply chains.

The Company aims to target an All-In Sustainable Cost (AISC) of $1,350 per Gold Equivalent Ounce (GEO) produced from start-up through commercialization, and will seek to reduce AISC and grow margins post commercialization through the implementation of prescriptive growth, optimization, and R&D plans.

We have engaged a third-party process modelling and industrial optimization firm to assist in layout optimization, 3D modelling, and dynamic simulation studies on our first commercial scale PCP and APP. These proposed plants will be co-located in our future commercial facility in North Carolina. Our current Greenville facility presently serves only as a pilot and demonstration plant that we intend to use to continue to optimize our recovery processes that we ultimately plan to move to commercial scale production at a future location. In the long-term, we intend to secure a larger facility in the Raleigh or Greenville area of North Carolina to serve as our commercial-scale production facility although such future facility has yet to be identified as our current pilot plant facility still has significant capacity that we foresee being adequate in the short-term. The commercial PCP will be designed to treat approximately 8,000 tonnes of E-Waste per year and the commercial APP will be designed to be able to process concentrate from up to four future PCPs.

After completion of the build-out of our initial PCP and APP plants (expected to take approximately eighteen (18) months including a six (6) month commissioning period), we believe that we can be a commercial producer of commodity materials, supplying both domestic and international supply chains with strategic metals within 12 months. The processes we have developed for recycling E-Waste are environmentally beneficial compared to material going to landfill. Furthermore, we believe that the design of our proprietary processes (PCP and APP) will allow for the ability to scale and grow our business, and take advantage of a worldwide resource, E-Waste.

To this end, the Company intends to seek external accreditation to become certified in meeting current "Reuse and Recycling Standards". The R2 Standard, now in its third version, was developed by a group of recycling stakeholders and industry experts. The R2v3 standard sets forth a list of voluntary principles and guidelines designed to promote and assess responsible practices for electronics recyclers. The R2v3 standard requires implementing a management system which is accountable for practices affecting worker health and safety, data security, the environment, and the downstream management of end-of-life electronic material and equipment, both domestically and internationally. The R2 Standard prioritizes reuse over recovery or disposal processes in a global effort to minimize electronic waste streams and promotes standardized testing and grading protocols for consistency across the industry.

<u>***<u>Our Competitive Strengths</u>***</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Combining Four Core Market Trends*

Modern Mining anticipates benefiting from the overlap of four core market trends: (a) the growing global demand for commodity metals; (b) the importance of strengthening local and domestic supply chains; (c) the importance of developing sustainable and environmentally friendly driven solutions to support a 'circular' economy; and (d) the increasing importance of hedging against inflationary pressures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Benefit from Proprietary Technology*

We have developed proprietary technologies that we believe set us apart from other E-Waste processors and from other commodity producers. Our pre-concentration process allows us to treat a wide range of feedstock grades and our aqueous-based purification process allows us to produce refined metals in an environmentally sustainable manner.

We believe that our processes will be unique among the major E-Waste recyclers that utilize the traditional process of pyrolysis and incineration. Research has shown that these incineration-based methods are carbon-intensive and generate harmful emissions. By utilizing an aqueous based process, we eliminate common environmental concerns of traditional E-Waste recyclers of emitting toxic chemicals into the atmosphere as well as minimizing our carbon footprint.

Our two-step approach of regional pre-concentration and centralized purification, combined with our planned scalable design, will be engineered to reduce capital and operating costs. We expect this reduced capital burden will help facilitate rapid expansion into major E-Waste generating locations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Designed to Comply with Government Mandates*

Due to our anticipated high recovery rates and sustainable, environmentally friendly processes, and non-toxic effluent, we believe we are well-positioned to comply with environmental guidelines around the world.

Our e-waste recycling processes are environmentally friendly and do not generate any significant gaseous, liquid, or solids emissions only noise, air borne dust, and sewer discharges at this time. Our pre-concentration processes are purely water based with no chemical addition, and our purification methods utilize controlled aqueous based reagent blends in connection with our refined metal production. To that end, we have noise control and dust control systems in place and we currently use a closed-loop water recirculation system to manage effluent discharge. We envision that we will be well positioned to meet any environmental guidelines around the world when and if we expand our operations from our current facility in Greenville, North Carolina.

Global environmental guidelines that may be applicable to our operations include (a) the Basel Convention, which monitors the transboundary movements of hazardous and other wastes; (b) the UN Sustainable Development Goals encompassing e-waste, such as SDG 6, which covers clean waste and sanitation and; (c) E-Waste legislation implemented around the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Superior to Current Standard E*-Waste *Recycling Processes*

Our business plan sets us apart, we believe, from others in the industry given our ability to be one of the non-carbon generating processors in the space with our proprietary aqueous based pre-concentration and purification technologies, versus the incineration-based methods of others in the industry. Incineration methods are extremely energy intensive methods. The plastics are burned off resulting in major carbon dioxide and other hazardous emissions. Attempts to separate metals using pyrometallurgical methods result in significant metal losses as not all metals can be economically recovered. Modern Mining's process, being aqueous-based, eliminates the need for carbon intensive incineration, which has been shown to have a negative impact on both workers and the environment, and allows for the recovery of a broader range of metals as separation and recovery is driven by physical methods and simple reagent addition, not complex pyrometallurgy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Decreased Risk Profile*

Traditional exploration and mining projects are inherently layered with significant risk as a consequence of having to deal with the earth's crust and all of its natural variability. Major risks include: (a) exploration risk (the success rate of making a new discovery is low); (b) geological risk (the made grades of newly discovered deposits are generally decreasing); (c) engineering risk (the nature of newly discovered deposits is complex) and (d) geopolitical risk (various commodity resources are hosted in politically unstable and hostile jurisdictions).

In contrast, E-waste is a man-made engineered product. It contains a very prescriptive blend and known quantity of strategic metals. As a result, the processing of E-Waste carries negligible exploration, geological, and geopolitical risk. Furthermore, as industry standard payment terms for our feedstock E-Waste are linked to the proportions of metals recovered, the impact and risk of fluctuating commodity prices are reduced as well. Feedstock E-Waste also delivers 100 times better grades than traditional mined ores and the processing of E-Waste carries less than 1/80<sup>th</sup> the capital expenditures of a traditional gold mine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Availability of Supply*

In connection with our operations, as we build out our commercial production facility and ramp-up operations of that facility, we currently anticipate needing up to 8,000 tonnes of feedstock per annum. Although we currently have non-binding letters of intent for 12,000 tonnes of feedstock and we believe the availability of such feedstock will be assured, we cannot be assured of the cost or pricing of such feedstock as, like other commodities, pricing is subject to the fluctuations of the supply and demand of such feedstock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Positioned to Benefit from Raising Commodity Prices*

As our products are anticipated to be sold on the global commodities markets, we believe we are positioned to benefit from any rise in commodity metal prices for our recovered products: gold, silver, copper, platinum and palladium.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Global Demand for Socially Responsible Commodities

In addition to an increasing world appetite for commodities, a number of large companies have announced their roadmaps to a more socially responsible supply chain. For example, in 2017, Apple announced its intention to use only renewable or recyclable materials in its products while, in 2021, Dell announced its goal of making more than 50% of their products content with recycled or renewable material. These are two examples of a growing trend of companies being more aware of their supply chains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Continuous Process Research and Development Plans*

We plan to have a continuing research and development program. This program will have two main goals. The first goal will be to optimize our proprietary processes to increase recoveries and reduce costs. The second goal will be to expand our core technology to be able to recover additional metals and to be able to process additional types of E-Waste feedstock.

<u>**<u>Our Growth Strategy</u>**</u>

The Company intends to expand its footprint to other locations around the U.S. and internationally so that multiple concentrator plants are strategically located geographically near major third-party, primary recycling facilities, significantly reducing raw material transportation costs. The first additional PCPs will feed into the initial APP in North Carolina. Expansion of our aqueous purification capacity will be undertaken as material supply and economics dictate.

<u>**<u>Corporate Structure</u>**</u>

The current corporate structure of the Company is as follows:

![](tflowchart_002.jpg)

<u>**<u>Our Property</u>**</u>

The Company recently surrendered its existing research and development facility lease containing roughly 3,500 square feet of effective working space in Raleigh, North Carolina, as it looks to expand its growth and operations. In September 2022, the Company secured a new facility lease containing approximately 10,000 square feet of effective working space in nearby Greenville, North Carolina to serve as its pilot plant facility.

It is anticipated that this facility will allow the Company to operate at approximately 10% of the processing capacity envisioned for its future planned commercial-scale plant. The Company intends to use this facility to house both its pilot PCP and APP equipment. The Company intends to operate the pilot plant as needed for the following business purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To demonstrate the operability and scalability of its full end-to-end process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To generate additional operating data for detailed engineering and scale-up studies for its commercial plant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To conduct process expansion studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To optimize the performance objectives of its technology; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To serve as an operations training platform to help streamline the commissioning and start-up activities of its commercial plant.

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The Company elected to make North Carolina its U.S. processing home as a logical extension of its past local research efforts, favorable incentives, proximity to major logistics networks, and direct access to some of the world's largest supplies of E-Waste through proximity to the densely populated eastern U.S. seaboard.

The Company has retained a third-party full service process modelling and industrial optimization firm to provide the Company with various studies with a view to enabling the Company to maximize its manufacturing capabilities in the long term. In particular, such company will provide the following studies to Modern Mining:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Plan for Every Part (PFEP): build a complete and thorough PFEP study which will include the use of all raw materials, work-in-progress and finished goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Process Flow: perform a process flow studies that will be used as inputs for various simulations. Such studies are intended to identify options to increase the design capacity of our planned commercial facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Material Flow: perform a material flow studies to identify the movement and efficiencies of material movement through the facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Layout: design new layouts as the future state simulations are built, and each layout to include the material flows to be used at each stage of production; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Future State Dynamic Simulations: build a number of future state dynamic simulators. Each simulator will include the new layout, new material flow and the new process flow for each option of the input process.

The above studies were completed in February 2023.

<u>**<u>Our Employees</u>**</u>

We currently have three full-time employees. Our main operational employees located in Greenville, North Carolina include: Peter Dielwart, General Manager; Darrell Campanella, Production Manager; and David Gordon, Procurement Manager.

Kuljit (Jeet) Basi, the President and Chief Executive Officer of the Company, Viktoriya Griffin, Controller and Basil Botha, Principal Technical Advisor are located in Vancouver, British Columbia. Olga Balanovskaya, the Company's Chief Financial Officer, is located in Toronto, Ontario.

<u>**<u>Intellectual Property</u>**</u>

The individual unit operations of the Company's two-step process are common within their various typical industries. The Company has used the equipment in a potentially non-traditional way and has developed an overall process sequence that it believes is unique. To the Company's knowledge, there are no other pure aqueous based E-Waste processors operating at a commercial scale.

At this time and except as set out below, the Company has not filed any applications in connection with its intellectual property (including in respect to its proprietary two-step process further described under the section entitled "Our Business, Our Products and Services") and there is no present intention to do so. The Company currently protects its process by trade secret.

The Company's wholly-owned Delaware subsidiary has one registered trademark for GOLD CONCIERGE in the USA.

#### REGULATION OF OUR INDUSTRY

#### Regulatory Framework in the United States
The Company's only facility in operation is its pilot plant in Greenville, North Carolina. As such, the Company is subject to regulation in the State of North Carolina and federally in the United States in respect to its operations including, but not limited to, complying with local and State ambient air quality standards in respect to emissions from any stack, vent, or outlet, of sulphur oxides, suspended particulates, carbon monoxide, nitrogen oxide, etc. Additionally, the company must comply with the National Ambient Air Quality Standards ("NAAQS"). Of the six principal pollutants that NAAQS sets levels for, the Company's process only produces particulate matter.

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The Company is also mandated to meet water quality standards as required by the Environmental Protection Agency (the "EPA") under applicable legislation including, but not limited to, the Clean Water Act. The Company is required by the local authority to comply with noise regulations, mandating a maximum sound level below 100dB, outside the building while in operation. Internally completed noise level measurements show that the operating plant pilot produced approximately 70dB outside of the building. The Company believes it has been fully compliant with these standards in the past and intends to be fully compliant in its future operations.

The Company's e-waste recycling processes are environmentally friendly and do not generate any significant gaseous, liquid, or solids emissions only noise, air borne dust, and sewer discharges at this time. Its pre-concentration processes are purely water based with no chemical addition, and its purification methods utilize controlled aqueous based reagent blends in connection with its refined metal production. To that end, the Company has noise control and dust control systems in place and currently uses a closed-loop water recirculation system to manage effluent discharge.

The Company requires a business license to operate which is issued by the local state authority. The Company, so far, has had no local or state regulatory matters to address in connection with its operations and the Company intends to continue to operate its main processing facility in North Carolina in accordance with all applicable local and state laws. In addition, when and if the Company's operations expand beyond North Carolina, the Company will continue to ensure it operates it facilities in accordance with all applicable laws.

In addition, the government may in future impose additional environmental laws or specific regulations applicable to the Company's business. The Company cannot predict the impact of any new environmental laws or regulations or of changes in current environmental laws or regulations on its operations. However, any such unanticipated changes may materially affect the Company's business and operations. See "*Risk Related to Our Regulatory Framework*".

#### Conflict Minerals Rule
The Company will be subject to the Conflict Minerals Rule, adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires that publicly traded companies that manufacture or contract to manufacture products containing tantalum, tin, tungsten or gold ("**3TG**") that is necessary to the functionality or production of such products take certain steps to determine the origin of such necessary 3TG, and to report their findings annually to the SEC.

In compliance with the Conflict Minerals Rule, the Company has adopted a Conflict Minerals Policy that outlines a process to conduct a reasonable country of origin inquiry based on a review of its business operations to determine whether any of the 3TG contained in its products came from recycled or scrap sources or if it did not, whether the 3TG originated in the Democratic Republic of the Congo (DRC) region and adjoining countries.

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#### MANAGEMENT

#### Our Executive Officers and Directors
The following table sets forth the names, ages and positions of our executive officers and members of our Board of Directors as of the date of this Prospectus. The business address of all of persons identified below is c/o Modern Mining Technology Corp., 1055 West Georgia Street, 1500 Royal Centre, Vancouver, British Columbia, V6E 4N7 Canada.

---

| | | | |
|:---|:---|:---|:---|
|  **Name** | **Name** | **Position** | **Age** |
| 1 | Kuljit (Jeet) Basi | Chief Executive Officer, President & Director | 40 |
| 2 | Olga Balanovskaya | Chief Financial Officer | 45 |
| 3 | Mark Zorko | Chairman of the Board, Director | 70 |
| 4 | Sean Bromley | Director | 31 |
| 5 | Matthew Chatterton | Director | 42 |
| 6 | Michael Hepworth | Director | 72 |
| 7 | Thomas A. Fenton | Secretary | 62 |

---

There are no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any of our directors or executive officers was selected to serve as a director or executive officer of the Company.

Pursuant to the Investor Rights Agreement, each Investor (as defined in the Investor Rights Agreement) shall be entitled, through the Warrantholder Representative, Kuljit (Jeet) Basi, to nominate three (3) directors to the Board, provided that each director nominee shall be a Canadian resident and shall meet the requirements of applicable corporate, securities and other laws. All of the current directors were nominated prior to execution of the Investor Rights Agreement. The Investor Rights Agreement will terminate upon completion of the Offering.

#### Biographical Information
The following is a summary of certain biographical information concerning our executive officers, and directors.

**Kuljit (Jeet) Basi**, President, Chief Executive Officer and Director. Mr. Basi is an established mining industry professional with over 17 years of technical leadership experience in global public mining companies including Newmont Corporation ("**Newmont**"), Goldcorp Inc. ("**Goldcorp**") and Teck Resources Ltd. ("**Teck**"). Jeet has a passion for growing a collaborative culture of technical excellence focused on maximizing net asset values. Since July 2020 to present, Mr. Basi has been the principal consultant for SVK Metrix Inc. ("**SVK**"), which company provides consulting advice to numerous natural resource companies. Prior thereto, from July 2019 to February 2020, Mr. Basi held the position of Senior Advisor, Newmont North America, where he was responsible for implementing industry leading best practices in the areas of technical services, project development and strategic planning across all of Newmont's Canadian, U.S. and Mexican assets. Prior thereto, from February 2011 to June 2019, Jeet held various positions with Goldcorp including the position of Corporate Manager of Processing & Metallurgy. During his eight-year tenure with Goldcorp, Mr. Basi established a track record of delivering bottom-line growth across major assets within Goldcorp's global portfolio. Prior to Goldcorp, Mr. Basi worked, from September 2006 to January 2011, at Teck's Highland Valley Copper operation where he most notably was involved in the mill optimization and expansion projects. Mr. Basi is an industry professional and has co-authored multiple publications within the technical community. Mr. Basi obtained his *Bachelor of Applied Science in Mining and Mineral Process Engineering* degree from the University of British Columbia with a Minor in Commerce in 2006.

**Olga Balanovskaya**, Chief Financial Officer. Ms. Balanovskaya has an extensive background with over 20 years in financial management of privately owned and public companies, M&A, tax, and financing. Ms. Balanovskaya has extensive experience with fast paced fast growth companies serving as Chief Financial Officer for various public and private companies in North America. She is currently the Chief Financial Officer of Starfighters Space, Inc., where she has served since October 2022. From May 2019 to May 2021, Ms. Balanovskaya was the Chief Financial Officer of XTM Inc. (CSE: PAID), where she has also served as a director since October 2022. She was also the Chief Financial Officer of Adex Mining Inc. (TSXV: ADE) from October 2017 to May 2021. Prior to that, Ms. Balanovskaya was the Chief Financial Officer of Organic Potash Corporation (CSE: OPC) from March 2016 to November 2019 and Organic Garage Ltd. (TSXV: OG) from October 2016 to June 2018. She also co-founded Koral Financial Inc. ("**Koral**") in March, 2015. Koral provides outsourced CFO and consulting services for public and privately owned companies. Ms. Balanovskaya still remains a principal of Koral and its President. She is a member of the Chartered Professional Accountants of Ontario as well as the Association of Chartered Certified Accountants (UK); has a Diploma in *International Accounting Standards* from the Institute of Financial Accountants (UK).

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**Mark Zorko**, Chairman of the Board, Director. Mr. Zorko co-founded, in October 2013 and remains a principal with, the executive management firm, Brentwood Advisory Group. In January 2016, Mr. Zorko founded Brentwood 401k, LLC, to provide 401(k) plan advisory services to middle market firms. Mr. Zorko was the interim Chief Financial Officer at radiation science and services firm Landauer Inc. (NYSE: LDR) from June 2014 until April 2015. Mr. Zorko served as the Chief Financial Officer of Steel Excel, Inc. (Nasdaq: SXCL), a public energy industry firm, from August 2011 until May 2013. He also served as the President and Chief Executive Officer of SXCL's subsidiary Wells Services Ltd. (WSL), a Steel Excel business, in 2012 and CFO of DGT Holdings (DGTC), a medical imaging firm, from 2006 through 2012. SXCL, WSL and DGTC are all affiliated with Steel Partners Holding, L.P., a publicly traded diversified global holding company. Mr. Zorko received an *MBA* in IT from the University of Minnesota and a *Bachelor of Science in Accounting* from The Ohio State University. After completing his MBA, Mr. Zorko began his career as a CPA at Arthur Andersen, and worked his way up via the controllership ranks at Honeywell and Zenith Data Systems in the United States and Europe. Mr. Zorko is a Certified Public Accountant, NACD Director Certified and Board Leadership Fellow and earned the NACD's CERT Certificate in Cybersecurity Oversight.

**Sean Bromley**, Independent Director. Mr. Bromley is a self-employed independent consultant to private and public companies and has significant experience in consulting and advising mining and materials companies. As a former investment advisor, Mr. Bromley also brings considerable capital markets and financing expertise to Modern Mining. He has been serving as an investment consultant for the past 7 years and currently serves as a director and consultant for Isracann Biosciences Inc. since December 2019; Pure Extracts Technologies Corp. since December 2018; BMGB Capital Corp. since June 2018; and Bolt Metals Corp. since October 2017. He also currently serves as a director for Element Nutritional Sciences Inc. since August 2020; White Gold Corp. since November 2015; Apollo Silver Corp. since August 2015; and The Vurger Co Ltd since March 2022. He has also been a consultant to Plant Veda Foods Ltd since June 2021. Mr. Bromley also previously served as a director of Loopshare Technologies Corp. from November 2015 to November 2018 and as their Chief Financial Officer from June 2017 to November 2018. Mr. Bromley also previously served as a director of Triangle Industries Ltd. from May 2018 to December 2020. Mr. Bromley obtained a *Bachelor of Commerce* degree, with a specialization in Finance, from the University of Calgary in 2013.

**Matthew Chatterton**, Independent Director. Mr. Chatterton has over 18 years of experience in the design, development and execution across a variety of projects and manufacturing operations and 12 years of experience in the mining sector, primarily in equipment supply and process development for precious metal mines. His expertise includes project management, facility management, logistics, supply side processes and procedures at a number of international manufacturing operations in Canada, United States, China, Bulgaria, the Philippines and now in Israel. He has managed operational teams as large as eight direct or 120 indirect reports and has managed capital projects in excess of $35 million for production facilities and laboratories for mining and manufacturing businesses. He is currently the Chief Science Officer at Isracann Biosciences Inc., where he has been serving in that role since May, 2019. Prior to Isracann, Mr. Chatterton worked as the Vice President of Global Production at iPlayCo (February 2018 to May 2019) and the Manager, Projects and Materials at FLSmidth Ltd. (February 2013 to February 2018). Mr. Chatterton is a Professional Engineer and graduate of Canada's Queens University with a Master of Applied Science degree in *Chemical Engineering* (2003) and an undergraduate degree in Applied Science in *Engineering Chemistry* (2002), a dual accredited Chemistry/Engineering program.

**Michael Hepworth**, Independent Director. Mr. Hepworth has over 45 years of experience working in international markets, including management consulting, corporate development, mergers and acquisitions and go-public transactions. Mr. Hepworth is a seasoned senior executive and entrepreneur who has worked with various Canadian and US publicly listed companies in the banking, mining and exploration and engineering industries. Mr. Hepworth has served as CEO and as a director for a number of Canadian public companies including: Firesteel Resources, Nordic Gold, Latin American Minerals, Lithium Energy Products. Mr. Hepworth served as the President, Chief Executive Officer, and Director of Nordic Gold from January 2012 to July 2019, a 70,000 ounce gold producer in Finland. Since August 2019 to present, Mr. Hepworth has, through his consulting company, Alpha Resources Management Ltd., continued to advise companies primarily in the resource sector.

**Thomas A. Fenton**, Secretary. Mr. Fenton is a partner of the Toronto based law firm, Aird & Berlis LLP, where he has practiced corporate and securities law since June 1997. Mr. Fenton has over 30 years of practice experience and is the former Practice Group Leader of the firm's Capital Markets Group. Tom has also been, and currently is, an

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officer and/or director of a number of private and public companies. Among other things, Mr. Fenton also served for a three-year term on the *Securities Advisory Committee* of the Ontario Securities Commission (from 2016 to 2018). Mr. Fenton received his law degree in 1986 from the *University of Western Ontario* (now Western University).

#### Family Relationships
There are no familial relationships among any of our directors or executive officers.

#### Involvement in Certain Legal Proceedings
To our knowledge, none of our current directors or executive officers have, during the past ten years:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he or she was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Securities Exchange Act of 1934, as amended (the Exchange Act)), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

The Company is not currently a party to any legal proceedings, the adverse outcome of which, individually or in the we believe will have a material adverse effect on our business, financial condition or operating results.

#### Board Practices
<u>Board Leadership Structure and Risk Oversight</u>

The Board of Directors oversees our business and considers the risks associated with our business strategy and decisions. The Board of Directors currently implements its risk oversight function as a whole.

<u>Terms of Office</u>

Each of our officers holds office until his or her successor is elected and qualified. Directors are appointed to serve for one year until the meeting of the Board of Directors following the annual meeting of shareholders and until their successors have been elected and qualified.

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<u>Director Independence</u>

As a result of our expectation that our securities will be listed on , we have elected to adhere to the rules of such exchange in determining whether a director is independent. generally defines an "independent director" as a person other than an executive officer of a company or any other individual having a relationship which, in the opinion of the issuer's board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. 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 Canadian National Instrument 52-110 – *Audit Committees*, or "NI 52-110."

Under such definition, Sean Bromley, Matt Chatterton and Michael Hepworth are independent directors on the Company's Board. However, our Common Shares are not currently quoted or listed on any national exchange or interdealer quotation system with a requirement that a majority of our Board be independent and, therefore, the Company is not subject to any director independence requirements as of the date hereof.

<u>Board Committees</u>

#### Audit Committee
Our Audit Committee is comprised of Sean Bromley (Chairperson), Michael Hepworth and Matthew Chatterton. The Audit Committee is directly responsible for the appointment, compensation, retention, oversight and termination of the work of the independent auditor (including resolution of any disagreements between Company management and the independent auditor regarding financial reporting) and any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or related work or performing other audit, review or attest services for the Company, and the independent auditor and each such other registered public accounting firm must report directly to the Committee. The Committee, or the Chair of the Committee, must pre-approve any audit and non-audit service provided to the Company by the independent auditor or any other registered public accounting firm, unless the engagement is entered into pursuant to appropriate preapproval policies established by the Committee or if such service falls within available exceptions under SEC rules.

#### Compensation Committee
Our Compensation Committee is comprised of Matthew Chatterton (Chairperson), Michael Hepworth and Sean Bromley.

The primary responsibility of the Compensation Committee is the oversight of, and the annual and ongoing review of, the Chief Executive Officer, the compensation of the senior management team, and the bonus programs in place for the balance of the staff. This includes oversight responsibility for ensuring the proper reporting and continuous disclosure in respect of same, and compliance with laws and regulations as well as stock exchange rules and policies in respect of same. The Compensation Committee shall also be responsible for the other matters as set out in this Charter and/or such other matters as may be directed by the Board of Directors from time to time. The Compensation Committee should exercise continuous oversight of developments in these areas.

#### Environmental, Social and Governance ("ESG") Committee
Our ESG Committee is comprised of Michael Hepworth (Chairperson), Matthew Chatterton and Sean Bromley.

The primary responsibility of the ESG Committee is, among other matters, to review and set standards for qualification and criteria for membership to the Board of Directors, review and make recommendations to the Board of Directors as to whether existing directors should stand for re-election and consider, screen and recommend candidates to fill new or open positions to the Board of Directors, recommend candidates for membership in each of the Board of Directors' committees, assist management in the preparation of disclosures in the Company's annual proxy statement regarding corporate governance and director independence, review and make recommendations with respect to the Company's social responsibility efforts, oversee the Company's reporting standards with respect to ESG matters and to make regular reports to the Board of Directors.

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<u><u>Code of Ethics</u></u>

Our Board adopted a written Code of Business Conduct and Ethics on May 19, 2022, which is a "code of ethics" as defined in section 406(c) of the Sarbanes-Oxley Act and which is a "code" under National Instrument 58-101-Disclosure of Corporate Governance Practices, that applies to our directors, officers, and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, and other of our agents. The Code of Ethics will be made publicly available on the Company's website at *www.modernmining.com*

#### Corporate Governance Practices
We are a "foreign private issuer" under the federal securities laws of the United States and . Under the federal securities laws of the United States, foreign private issuers are subject to different disclosure requirements than U.S.-domiciled registrants. We intend to take all actions necessary for us to maintain compliance as a foreign private issuer under the applicable corporate governance requirements of the Sarbanes-Oxley Act, the rules adopted by the SEC and .

Under the SEC rules and , a foreign private issuer is subject to less stringent corporate governance requirements. Subject to certain exceptions, the SEC and permit a foreign private issuer to follow its home country practice in lieu of their respective rules and listing standards. Following our home country governance practices, as opposed to the requirements that would otherwise apply to a company listed on , may provide less protection than is accorded to investors under Rules applicable to U.S. domestic issuers.

The Canadian securities regulatory authorities have issued corporate governance guidelines pursuant to National Policy 58-201 *— Corporate Governance Guidelines* (the "**Corporate Governance Guidelines**"), together with certain related disclosure requirements pursuant to National Instrument 58-101 *— Disclosure of Corporate Governance Practices*. The Corporate Governance Guidelines are recommended as "best practices" for issuers to follow. We recognize that good corporate governance plays an important role in our overall success and in enhancing shareholder value and, accordingly, we have adopted, or in connection with the closing of this Offering will adopt, certain corporate governance policies and practices which reflect our consideration of the recommended Corporate Governance Guidelines.

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#### EXECUTIVE COMPENSATION
*The following discussion and analysis of compensation arrangements should be read together with the compensation tables and related disclosures that follow. This discussion contains forward*-looking *statements that are based on our current plans and expectations regarding future compensation programs. Actual compensation programs that we adopt may differ materially from the programs summarized in this discussion. The following discussion may also contain statements regarding corporate performance targets and goals. These targets and goals are disclosed in the limited context of our compensation programs and should not be understood to be statements of management's expectations or estimates of results or other guidance. We specifically caution investors not to apply these statements to other contexts.*

#### Compensation of our Executive Officers and Directors
The following table sets forth information concerning the compensation of our executive officers and non-employee directors for the 2021 fiscal year.

---

| | | | |
|:---|:---|:---|:---|
|  **Name** | **Fees earned or paid in cash <br>($)** | **Share awards <br>($)** | **Total <br>($)** |
|  **<u>Executive Officers</u>:** |  |  |  |
|  Basil Botha<sup>(1)</sup> | 52000 | 103821<br> Nil<br> Nil<sup>(5)</sup> | 155821 |
|  Kuljit (Jeet) Basi<sup>(2)</sup> | 16667 | Nil | 16667 |
|  Olga Balanovskaya<sup>(3)</sup> | Nil | Nil | Nil |
|  **<u>Directors</u>:** |  |  |  |
|  Mark Zorko | 22500 | 69043<br> Nil<br> Nil<sup>(6)</sup> | 91543 |
|  Michael Hepworth | 18333 | 65293<br> Nil<br> Nil<sup>(7)</sup> | 83626 |
|  Matt Chatterton | 16667 | Nil | 16667 |
|  Sean Bromley | 18333 | Nil | 18333 |
|  Thomas Fenton<sup>(4)</sup> | Nil | Nil | Nil |

---

---

| | | |
|:---|:---|:---|
|  **Notes:** | (1) | Effective March 1, 2022, Mr. Botha resigned as President, Chief Executive Officer and director of the Company and became the Company's Principal Technical Advisor. |
|  | (2) | Effective March 1, 2022, Mr. Basi became the Company's President and Chief Executive Officer. |
|  | (3) | Effective March 1, 2022, Olga Balanovskaya was appointed as the Company's Chief Financial Officer. |
|  | (4) | Mr. Fenton is a partner of the Canadian law firm Aird & Berlis LLP which is counsel to the Company and accordingly legal fees have been paid by the Company for such services. |
|  | (5) | On August 30, 2021, Mr. Botha received 1,400,000 performance warrants, consisting of 600,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 800,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales. |
|  | (6) | On August 30, 2021, Mr. Zorko received 758,000 performance warrants, consisting of 288,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 470,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales. |
|  | (7) | On August 30, 2021, Mr. Hepworth received 757,000 performance warrants, consisting of 287,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 470,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales. |

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The following table sets forth information concerning the compensation of our executive officers and non-employee directors for the 2022 fiscal year.

---

| | | | |
|:---|:---|:---|:---|
|  **Name** | **Fees earned or paid <br>in cash <br>($)** | **Share awards <br>($)** | **Total <br>($)** |
|  **<u>Executive Officers:</u>** |  |  |  |
|  Basil Botha | 26000 | Nil | 26000 |
|  Kuljit (Jeet) Basi | 153333 | 5000<br> Nil | 158333 |
|  Olga Balanovskaya | 40811 | Nil | 40811 |
|  **<u>Directors:</u>** |  |  |  |
|  Mark Zorko | 34390 | 30000<br> Nil | 64390 |
|  Michael Hepworth | 25000 | 30000<br> Nil | 55000 |
|  Matt Chatterton | 23110 | 30000<br> Nil | 53110 |
|  Sean Bromley | 25000 | 30000<br> Nil | 55000 |
|  Thomas Fenton | Nil | Nil | Nil |

---

#### Director Compensation
As of December 31, 2021, we had six directors. During the year ended December 31, 2021, we did not pay our directors any cash compensation for their services as Board members, instead such amounts were accrued. However, the Chart above includes director fee payments as if they had been paid and received.

We currently have five (5) directors. Our four independent directors receive, effective from September 1, 2021, an annual cash retainer of $20,000 to be paid quarterly in arrears and an annual equity retainer equal to $30,000 granted in the form of RSUs under the 2022 Plan, with vesting requirements of one year from date of grant. In addition, the Chair of each Committee (Audit, ESG and Governance) will receive an additional $5,000 cash retainer while the Chair of the Board of Directors will receive an additional $12,500 cash retainer. At present, all cash components of director compensation has been paid up to the period ended June 30, 2022. Subsequently, all director fees are still being accrued.

#### Employment Agreements, Arrangements or Plans
The following describes the respective employment agreements and consulting agreements entered into and in place as of the date hereof between the Company and its executive officers and directors.

Kuljit (Jeet) Basi's services as Chief Executive Officer of the Company are provided pursuant to a consulting agreement (the "**Basi Consulting Agreement**") made effective the 8<sup>th</sup> day of March, 2022 between the Company and SVK. Mr. Basi is the principal of SVK. Pursuant to the Basi Consulting Agreement, Mr. Basi is paid a consulting fee of $15,000 per month and is entitled to be reimbursed for expenses incurred in connection with his services to the Company.

The Basi Consulting Agreement continues on an ongoing basis until otherwise terminated in accordance with the provisions thereof. In the event the Basi Consulting Agreement is terminated for any reason (other than for "Cause" (as such term is defined in the Basi Consulting Agreement)), the Company must provide SVK with 30 days' written notice of such termination and must pay SVK a lump sum equivalent to 18 months worth of consulting fees.

Basil Botha's services as Principal Technical Advisor to the Company are provided pursuant to a transition letter (the "**Botha Transition Letter**") entered into as of February 28, 2022 between Basil Botha, his personal services company (616538 BC Ltd) and the Company. Pursuant to the Botha Transition Letter, the Company agreed to: (1) pay all outstanding expenses previously incurred by Mr. Botha on behalf of the Company in the amount of approximately $13,000; (2) pay all accrued salary owing to him from September 1, 2021 to February 28, 2022 in the amount of $78,000; and (3) commencing March 1, 2022, pay Mr. Botha and/or his consulting company, $14,000 per month. Such salary will be payable until eighteen (18) months following the date of completion of the Offering; and (4) pay all reasonable out-of-pocket expenses incurred by Mr. Botha on behalf of the Company and in accordance with the Company's reimbursement policies.

Pursuant to the Botha Transition Letter, Mr. Botha will retain 1,400,000 performance warrants of the Company, each of which is exercisable for one Common Share at $0.05 per performance warrant (600,000 of such performance warrants vest when the Company achieves gross sales of $10 million and 800,000 of such performance warrants vest when the Company achieves gross sales of $20 million).

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Mr. Botha will also be entitled to a one-time bonus of $50,000 upon Mr. Botha assisting the Company in (i) securing the lease of the new Facility, (ii) assisting in the commissioning of key pilot plant equipment and (iii) managing the engineering study presently being conducted by a third party process modelling and industrial optimization firm. It has also been further agreed that Mr. Botha's $78,050 in shareholder advances he made to the Company would be repaid withing ten (10) days of closing of the Offering.

Pursuant to the Botha Transition Letter, Mr. Botha has agreed to ensure that the Company has a solid basis for the ordering of equipment and commissioning of the Facility. In addition, Mr. Botha has agreed to provide the following scope of work to the Company: human resources, staff training and recruitment, security, safety, procurement of feedstock, instituting production metrics for quality control and recoveries, set-up the laboratory and any other aspects relating to the operation of the Facility. From March 1, 2022 onward, Mr. Botha has agreed to devote 100% of his time to the Company's affairs which will include spending two to three weeks per month at the Facility.

Olga Balanovskaya's services as Chief Financial Officer of the Company are provided pursuant to a consulting agreement (the "**CFO Agreement**") made effective the 15<sup>th</sup> day of March, 2022 between the Company and Koral Financial Inc., a company controlled by Ms. Balanovskaya. Pursuant to the CFO Agreement, Koral is paid a consulting fee of C$5,625 per month and is entitled to be reimbursed for expenses incurred in connection with its services to the Company in accordance with the Company's remuneration policies. The CFO Agreement runs month-to-month and can be terminated upon 30 days' notice. In the event the Company completes the Offering and still engages Koral, and thereby Ms. Balanovskaya, as its Chief Financial Officer, the monthly base fee shall be increased to C$11,250 per month effective upon the closing of the Offering.

#### Equity Incentive Plan
<u>**<u>Introduction</u>**</u>

The principal features of our equity incentive plan (the "**2022 Plan**") are summarized below. This summary is qualified in its entirety by reference to the actual text of the 2022 Plan, which is filed as an exhibit to the registration statement.

The 2022 Plan was approved by the Company's shareholders on July 6, 2022.

The principal purpose of the 2022 Plan is to assist us in securing and retaining the services of eligible employees, officers, directors and consultants and motivate such Participants so that they may increase their equity participation in the Company and benefit from increases in the value of the Common Shares.

<u>**<u>Eligibility</u>**</u>

Our 2022 Plan provides for the grant of incentive share options ("**ISOs**") to employees, including employees of any parent or subsidiary, and for the grant of non-statutory share options ("**NSOs**"), share appreciation rights, restricted share unit awards and other forms of share awards to employees, directors, and consultants, including employees and consultants of our affiliates. There are additional restrictions on the awards of ISOs to shareholders who own greater than 10% of our Common Shares.

<u>**<u>Share Reserve</u>**</u>

The maximum number of Common Shares available for grant under the 2022 Plan and our other security-based compensation arrangements will be determined from time to time by the Board of Directors, but in any event, will not exceed 15% of the total Common Shares issued and outstanding from time to time. As at the date hereof, we have no securities convertible into Common Shares outstanding under the 2022 Plan.

The calculation of the share reserve does not limit the granting of awards that do not involve the issuance of Common Shares to the Participant, such as share appreciation rights. The following counting provisions will be in effect in the calculation of the share reserve under the 2022 Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent that an award (or a portion thereof) is exercised, terminates, expires or lapses for any reason or an award is settled in cash without the delivery of Common Shares, any Common Shares subject to the award at such time will be available for future grants under the 2022 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent that Common Shares awarded by us are forfeited back to or repurchased by us prior to vesting, such Common Shares will be available for future grants under the 2022 Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent that Common Shares are reacquired or withheld by us to satisfy the grant, exercise price or tax withholding obligation with respect to any award under the 2022 Plan, such Common Shares will be available for future grants under the 2022 Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent that Common Shares are issued through the assumption or substitution of equity-based awards by an acquired company, the number of Common Shares issuable under the 2022 Plan shall not be reduced.

<u>**<u>Plan Administration</u>**</u>

The 2022 Plan provides that the Board of Directors or a duly authorized committee of the Board of Directors may administer the 2022 Plan. The Board of Directors may delegate its authority to one or more officers to (i) designate employees other than officers of the Company to receive specified share awards; and (ii) determine the number of Common Shares to be subject to those awards.

Subject to the terms and conditions of the 2022 Plan, the administrator has the authority to select the persons to whom awards are to be made, to determine the number of Common Shares to be subject to awards, and the terms and conditions of awards, and to make all other determinations and to take all other actions necessary or advisable for the administration of the 2022 Plan. The administrator generally has the authority to effect, with the consent of any adversely affected Participant: (i) the reduction of the exercise, purchase, or strike price of any outstanding award; (ii) the cancellation of any outstanding award and the grant in substitution therefore of other awards, cash, or other consideration, as determined by the Board of Directors in its full discretion; or (iii) any other action that is treated as a repricing under generally accepted accounting principles.

The administrator may terminate, amend, or modify the 2022 Plan, provided that such action does not materially impair the existing rights of any Participant without such Participant's written consent. However, we must generally obtain shareholder approval to the extent required by applicable law, rule, or regulation (including any applicable stock exchange rule).

<u>**<u>Awards</u>**</u>

#### Share Options
ISOs and NSOs are granted under share option agreements adopted by the plan administrator. Each grant of share options will specifically designate the options are either ISOs or NSOs at the date of grant. The plan administrator determines the term and the exercise price for share options, within the terms and conditions of the 2022 Plan, provided that (i) the term of a share option may not exceed ten (10) years from the date of grant; and (ii) the exercise price of a share option generally cannot be less than 100% of the fair market value of the Common Shares on the date of grant. Share options granted under the 2022 Plan will vest at the discretion of the administrator at the rate specified in the share option agreement and may vest in one or more installments after the grant date and need not be in equal amounts. Unless otherwise set out in the award agreement or consented to by the Board of Directors, share options are not assignable or transferable.

An ISO may be purchased by the option holder by cash, certified cheque, bank draft, money order or in any other form of consideration set forth in the option agreement. In addition to the above, an NSO may be purchased by the option holder by a "net exercise" arrangement pursuant to which we will reduce the number of Common Shares issuable upon exercise by the largest whole number of shares with a market value that does not exceed the aggregate exercise price.

The aggregate fair market value, determined at the time of grant, of the Common Shares with respect to ISOs that are exercisable for the first time by an option holder during any calendar year under all of our equity compensation plans may not exceed $100,000. Share options or portions thereof that exceed such limit will generally be treated as NSOs.

No ISO may be granted to any person who, at the time of the grant, owns or is deemed to own Common Shares possessing more than 10% of our total combined voting power or that of any of our affiliates unless (i) the option exercise price is at least 110% of the fair market value of the shares subject to the option on the date of grant; and (ii) the option is not exercisable after the expiration of five years from the date of grant.

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#### Restricted Share Units
Restricted share units are granted under restricted share unit award agreements adopted by the plan administrator. At the time of the grant of each restricted share unit, the Board of Directors will determine the consideration, if any, to be paid by the Participant upon delivery of the Common Shares. The consideration, if any, can be in any form of legal consideration that may be acceptable to the Board of Directors and permissible under applicable law. The plan administrator will determine any vesting restrictions on the restricted share units, at its sole discretion.

A restricted share unit may be settled by cash, delivery of Common Shares, a combination of cash and Common Shares, as deemed appropriate by the plan administrator, or in any other form of consideration set forth in the restricted share unit agreement. Additionally, dividend equivalents may be credited in respect of shares covered by a restricted share unit.

#### Share Appreciation Rights
Share appreciation rights are granted under share appreciation grant agreements adopted by the plan administrator. The plan administrator determines the purchase price or strike price for a share appreciation right, which generally cannot be less than 100% of the fair market value of the Common Shares on the date of grant. A share appreciation right granted under the 2022 Plan vests at the rate specified in the share appreciation right agreement as determined by the plan administrator.

To exercise a share appreciation right, the Participant must provide written notice of exercise to us as provided for in the share appreciation right agreement. Upon exercise, the share appreciation right payable may be settled by cash, delivery of Common Shares, a combination of cash and Common Shares, as deemed appropriate by the plan administrator, or in any other form of consideration set forth in the share appreciation right agreement.

Unless otherwise set out in the award agreement or consented to by the Board of Directors, share appreciation rights are not assignable or transferable.

#### Other Share-Based Awards
Under the 2022 Plan, the plan administrator may grant other awards based in whole or in part by reference to our Common Shares. The plan administrator will set the number of Common Shares under the share award and all other terms and conditions of such awards.

<u>**<u>Termination of Employee, Death or Disability</u>**</u>

#### Share Options and Share Appreciation Rights
Except as otherwise provided in the award agreement, a Participant's share options or share appreciation rights will expire 90 days after a Participant ceases to act as a Participant, other than by reason of death, disability or termination for cause, and subject to amendment at the discretion of the Board of Directors. Under the 2022 Plan, in the event of the death or disability of a participant, the participant (in the case of disability) or the participant's estate (in the case of death) shall have 12 months in which to exercise the outstanding share options or share appreciation rights, subject to their earlier expiry in accordance with the award agreement.

Except as otherwise provided in the award agreement, if a Participant is terminated for cause, the share options or share appreciation rights, as applicable, will terminate immediately and the Participant will not be eligible to exercise the options or share appreciation rights from the date of termination.

#### Restricted Share Units
Except as otherwise provided in the applicable restricted share unit agreement, restricted share units that have not vested will be forfeited once the participant's continuous service ends for any reason.

<u>**<u>Adjustments</u>**</u>

The 2022 Plan contains typical adjustment provisions in the event that certain events occur, including a corporate transaction, a change in our capital structure or a change of control of the Company.

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#### Change in Capital Structure
In the event there is a specified type of change in our capital structure, such as a share split, reverse share split, or recapitalization, appropriate adjustments will be made to (i) the class and maximum number of Common Shares reserved for issuance under the 2022 Plan, (ii) the class and maximum number of Common Shares by which the share reserve may increase automatically each year, (iii) the class and maximum number of Common Shares that may be issued on the exercise of ISOs, and (iv) the class and number of Common Shares and exercise price, strike price, or purchase price, if applicable, of all outstanding share awards.

#### Corporate Transactions
The following applies to share awards under the 2022 Plan in the event of a corporate transaction, unless otherwise provided in a participant's share award agreement or other written agreement with us or one of our affiliates or unless otherwise expressly provided by the plan administrator at the time of grant.

Under the 2022 Plan, a corporate transaction is defined to include: (i) a sale of all or substantially all of our assets; (ii) the sale or disposition of more than 50% of our outstanding securities; (iii) the consummation of a merger or consolidation where we do not survive the transaction; and (iv) the consummation of a merger or consolidation where we do survive the transaction but the shares of our Common Shares outstanding before such transaction are converted or exchanged into other property by virtue of the transaction.

In the event of a corporate transaction, the Board of Directors may take one or more of the following actions with respect to the awards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• arrange for any share awards outstanding under the 2022 Plan to be assumed, continued or substituted for by any surviving or acquiring corporation (or its parent company), and/or arrange for any reacquisition or repurchase rights held by us with respect to the share award to assigned to the successor (or its parent company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accelerate the vesting of any awards to a date prior to the effective time of the corporate transaction, with any such award terminating if not exercised prior to the effective time of the corporate transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by us with respect to the awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cancel or arrange for the cancellation of the awards to the extent not vested or exercised prior to the effective time of the corporate transaction in exchange for cash consideration as determined by the Board of Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that the holder of such share award may not exercise such share award but instead will receive a payment equal in value to the excess (if any) of (i) the value of the property the Participant would have received upon the exercise of the share award over (ii) any exercise price payable by such holder in connection with such exercise.

The Board of Directors does not need to take the same actions with respect to all awards or with respect to all Participants. The Board of the Directors may also take different actions with respect to the vested and unvested portions of an award.

#### Change of Control
In the event of a change in control (as defined in the 2022 Plan), awards granted under the 2022 Plan will not receive automatic acceleration of vesting and exercisability, although this treatment may be provided for in an award agreement.

<u>**<u>Termination</u>**</u>

The Board of Directors may terminate the 2022 Plan at any time. No awards may be granted pursuant to the 2022 Plan after the 10<sup>th</sup> anniversary of the date the 2022 Plan was adopted by the Board of Directors. Any award that is outstanding on the termination date of the 2022 Plan will remain in force according to the terms of the 2022 Plan and the applicable award agreement, except with the written consent of the Participant or as otherwise allowed under the 2022 Plan.

As of the date of this Prospectus, the Company has does not have any outstanding share options with respect to our Common Shares granted to our executive officers and directors.

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#### PRINCIPAL SHAREHOLDERS
The following table and accompanying footnotes set forth certain information with respect to the beneficial ownership of the Company's Common Shares, the Investor Rights Warrants and the Convertible Debentures, immediately prior to and immediately after the completion of this Offering, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers and directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our current executive officers and directors as a group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person or entity (or group of affiliated persons or entities) known by us to be the beneficial owner of 5% or more of our Common Shares, the Investor Rights Warrants and the Convertible Debentures (by number or by voting power).

As described in "Description of Share Capital and Articles of Incorporation–Warrants," the Company granted to holders of Investor Rights Warrants the right to vote, voting together with Common Shares as a single class, on any matter at any meeting of shareholders of the Company. Each of the Investor Rights Warrants entitles the holder thereof to one vote per Investor Rights Warrant. The Investor Rights Agreement will terminate upon completion of the Offering, and consequently, the voting rights granted under the Investor Rights Agreement to the holders of the Investor Rights Warrants will also terminate at such time. Pursuant to the Convertible Debentures IRA, the Company also granted holders of the Convertible Debentures a vote on any matter at any meetings of shareholders of the Company, voting together with Common Shares as a single class. Assuming an Offering Price of $, which would be the midpoint of the offering price range on the front of this Prospectus, each $ of Convertible Debentures will equal to one Common Share, entitling the holder thereof to one vote.

To our knowledge, each person or entity named in the table has sole voting and investment power with respect to our Common Shares, the Investor Rights Warrants and the Convertible Debentures "beneficially owned" (as determined in accordance with Rule 13d-3 under the Exchange Act) by such person or entity, subject to applicable community property laws and except as otherwise set forth in the footnotes to the table. The SEC has defined "beneficial" ownership of a security to mean the possession, directly or indirectly, of voting power and/or investment power. Pursuant to the rules of the SEC, common shares which an individual or group has a right to acquire within 60 days pursuant to the exercise of options or warrants are deemed to be outstanding for the purpose of computing the percentage ownership of such individual or group, but are not deemed to be beneficially owned and outstanding for the purpose of computing the percentage ownership of any person shown in the table.

The percentages ownership for the Common Shares, Convertible Debentures and Investor Rights Warrants immediately prior to this Offering, are based on 17,267,900 Common Shares and warrants outstanding (consisting of 8,559,784 Common Shares outstanding and 8,708,116 warrants outstanding), 16,500,000 Investor Rights Warrants outstanding and $3,122,752.50 principal amount of Convertible Debentures outstanding, respectively, as of the date immediately prior to the completion of this Offering. Such ownership percentages do not represent the voting percentages of each individual holder. Holders of the Common Shares, Convertible Debentures and Investor Rights Warrants all vote together as a single class. The percentages assume no exercise by the Underwriters of the Over-Allotment Option. The Convertible Debentures will automatically convert to Common Shares upon completion of the Offering as described elsewhere in this Prospectus.

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Except as noted in the footnotes to the table below, the address for all of the shareholders in the table below is c/o Modern Mining Technology Corp., 1055 West Georgia Street, 1500 Royal Centre, Vancouver, British Columbia, V6E 4N7 Canada.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately After this Offering** | **Beneficial Ownership <br>Immediately After this Offering** |
|  | **Common Shares** | **Common Shares** | **Debenture <br>Common Shares** | **Debenture <br>Common Shares** | **Investor Rights <br>Warrants<sup>(18)</sup>** | **Investor Rights <br>Warrants<sup>(18)</sup>** | **Common Shares** | **Common Shares** |
|  **Name of Beneficial Owner** | **Number** | **%<sup>(16)</sup>** | **Number<sup>(17)</sup>** | **%** | **Number** | **%<sup>(1</sup><sup>9</sup><sup>)</sup>** | **Number** | **%** |
|  **Named Executive Officers and Directors:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Mark Zorko<sup>(1)</sup> | 1385298 | 8.0% |  |  |  |  | 1385298 | 8.0% |
| &nbsp;&nbsp;&nbsp; Michael Hepworth<sup>(2)</sup> | 1713883 | 9.9% | [ ] | [ ]% | 1000000 | 6.1% | [ ]<br><sup>(20)</sup> | [ ]% |
| &nbsp;&nbsp;&nbsp; Basil Botha<sup>(3)(4)</sup> | 2271264 | 13.2% | [ ] | [ ]% | 1000000 | 6.1% | [ ]<br><sup>(20)</sup> | [ ]% |
| &nbsp;&nbsp;&nbsp; Sean Bromley |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Kuljit (Jeet) Basi<sup>(5)</sup> | 250000 | 1.4% |  |  |  |  | 250000 | 1.4% |
| &nbsp;&nbsp;&nbsp; Matt Chatterton<sup>(6)</sup> | 208800 | 1.2% |  |  | 25000<br><sup>(15)</sup> | \* | 208800 | 1.2% |
| &nbsp;&nbsp;&nbsp; Olga Balanovskaya<sup>(7)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Thomas Fenton |  |  |  |  |  |  |  |  |
|  **All named executive officers and directors as a group (8 persons)** | 5829245 | 33.8% | [ ] | [ ]% | 1025000 | 6.2% | [ ]<br><sup>(20)</sup> | [ ]% |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately Prior to this Offering** | **Beneficial Ownership <br>Immediately After this Offering** | **Beneficial Ownership <br>Immediately After this Offering** |
|  | **Common Shares** | **Common Shares** | **Debenture <br>Common Shares** | **Debenture <br>Common Shares** | **Investor Rights <br>Warrants<sup>(18)</sup>** | **Investor Rights <br>Warrants<sup>(18)</sup>** | **Common Shares** | **Common Shares** |
|  **Name of Beneficial Owner** | **Number** | **%<sup>(16)</sup>** | **Number** | **%** | **Number** | **%<sup>(1</sup><sup>9</sup><sup>)</sup>** | **Number** | **%** |
|  **Other 5% holders:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Howard Glicksman | 1242702 | 7.2% |  |  |  |  | 1242702 | 7.2% |
| &nbsp;&nbsp;&nbsp; Jeremey Blum | 990990 | 5.7% |  |  |  |  | 990990 | 5.7% |
| &nbsp;&nbsp;&nbsp; Alpha Resource Management Ltd.<sup>(</sup><sup>8</sup><sup>)(</sup><sup>9)</sup> | 317026 | 1.8% |  |  | 1000000 | 6.1% | 317026 | 1.8% |
| &nbsp;&nbsp;&nbsp; F1 Advisory Group Ltd.<sup>(10)</sup> |  |  |  |  | 5167500<br><sup>(15)</sup> | 31.3% |  |  |
| &nbsp;&nbsp;&nbsp; Balvinder Parhar<sup>(11)</sup> | 137500 | \* |  |  | 1530833<br><sup>(15)</sup> | 9.3% | 137500 | \* |
| &nbsp;&nbsp;&nbsp; Naranjan Parhar<sup>(</sup><sup>12)</sup> |  |  |  |  | 1530833<br><sup>(15)</sup> | 9.3% |  |  |
| &nbsp;&nbsp;&nbsp; Steven Parhar<sup>(13)</sup> |  |  |  |  | 1550000<br><sup>(15)</sup> | 9.4% |  |  |
| &nbsp;&nbsp;&nbsp; Kayla Thompson<sup>(14)</sup> |  |  |  |  | 1280833<br><sup>(15)</sup> | 7.8% |  |  |

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____________

\* Represents beneficial ownership of less than 1%.

(1) Consists of (i) 493,965 Common Shares held by Mark Zorko, (ii) 758,000 performance warrants, consisting of 288,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 470,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales, and (iii) 133,333 Common Shares held by the Zorko Living Trust, for which Mr. Zorko shares joint control with his spouse, Patricia Zorko.

(2) Consists of (i) 639,857 Common Shares held by Michael Hepworth, (ii) 757,000 performance warrants, consisting of 287,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 470,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales, and (iii) 317,026 Common Shares and 1,000,000 Investor Rights Warrants held by Alpha Resources Management Ltd. ("**Alpha Resources**"), a company for which Mr. Hepworth shares joint control.

(3) Consists of (i) 554,238 Common Shares held by Basil Botha, (ii) 1,400,000 performance warrants, consisting of 600,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 800,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales, and (iii) 317,026 Common Shares and 1,000,000 Investor Rights Warrants held by Alpha Resources, a company for which Mr. Botha shares joint control.

(4) Effective March 1, 2022, Basil Botha resigned as the President, Chief Executive Officer and a director of the Company and became the Company's Principal Technical Advisor.

(5) Consists of 250,000 performance warrants consisting of 83,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 167,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales. Effective March 1, 2022, Kuljit (Jeet) Basi was appointed as the Company's President and Chief Executive Officer.

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(6) Consists of (i) 200,000 performance warrants consisting of 67,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales and 133,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales and (ii) 8,800 Common Shares and 25,000 Investor Rights Warrants held by Danielle Chatterton, the spouse of Matt Chatterton.

(7) Effective March 1, 2022, Olga Balanovskaya was appointed as the Company's Chief Financial Officer.

(8) Michael Hepworth and Basil Botha jointly own Alpha Resources, and they share voting and investment power with respect to its Common Shares and Investor Rights Warrants.

(9) The address of Alpha Resources is Suite 1001, 409 Granville St., Vancouver, BC V6C 1T2.

(10) Jeff Lipton exercises voting and investment power over the Investor Rights Warrants of F1 Advisory Group. Fortuna Investment Corp., an affiliate of Fortuna is a minority shareholder and the only other shareholder of F1 Advisory Group. See "***Certain Relationships and Related Party Transactions***" for further information on Fortuna Investment Corp. The address of F1 Advisory Group and Jeff Lipton is Venture Two, Dayrells Road, Christ Church, Barbados BB14107. The address of Fortuna Investment Corp. is 1177 W Hastings St Suite 2288, Vancouver, BC, V6E 2K3.

(11) The address of Balvinder Parhar is 1920-1075 W Georgia St., Vancouver, BC V6E 3C9.

(12) The address of Naranjar Parhar is 1920-1075 W Georgia St., Vancouver, BC V6E 3C9.

(13) The address of Steven Parhar is 1920-1075 W Georgia St., Vancouver, BC V6E 3C9.

(14) The address of Kayla Thompson is 152 Levista Pl., Victoria, BC V9B 0K7.

(15) Under the terms of the Investor Rights Warrants, a warrantholder may not exercise the warrants to the extent such exercise would cause such warrantholder, together with its affiliates, to beneficially own a number of Common Shares which would exceed 4.99% of our then outstanding Common Shares following such exercise, excluding for purposes of such determination Common Shares issuable upon exercise of the warrants which have not been exercised (the "**IRA Blocker**").

(16) Represents the percentage of Common Shares owned out of 17,267,900 Common Shares and warrants outstanding (excluding the Investor Rights Warrants) as of the date immediately prior to the completion of this Offering.

(17) Upon completion of this Offering, the principal amount of the Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00.) Consists of ______ Common Shares held by Michael Hepworth and ________ Common Shares held by Basil Botha convertible from the Convertible Debentures upon completion of this Offering at a conversion price of $ based on an Offering Price of $ per Common Share, which represents the midpoint of the offering price range on the front of this Prospectus.

(18) The Investor Rights Warrants are exercisable for three (3) years from the closing of the Offering following a six month lock-up period post-closing of the Offering. The Investor Rights Agreement will terminate upon completion of the Offering, and consequently, the voting rights granted under the Investor Rights Agreement to the holders of the Investor Rights Warrants will also terminate at such time.

(19) Represents the percentage of Investor Rights Warrants owned out of 16,500,000 Investor Rights Warrants outstanding as of the date immediately prior to the completion of this Offering.

(20) Includes Common Shares held by Michael Hepworth and Common Shares held by Basil Botha convertible from the Convertible Debentures upon completion of this Offering at a conversion price of $ based on an Offering Price of $_____ per Common Share, which represents the midpoint of the offering price range on the front of this Prospectus.

For additional information about our principal shareholders, please see "***Certain Relationships and Related Party Transactions***.

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#### CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
In addition to the compensation arrangements discussed under "***Executive Compensation***" and "***Principal Shareholders***" the following is a description of the material terms of: (i) those transactions within the last three fiscal years to which we are party and in which any of our directors, executive officers or shareholders that beneficially own or control (directly or indirectly) more than 10% of any class of series of our outstanding voting securities, or any associate or affiliate of the forgoing persons, has, had or will have a direct or indirect material interest; and (ii) any other material contracts, other than contracts entered into in the ordinary course of business, to which we were a party within the last two fiscal years.

#### Transactions with Related Parties
See "***Executive Compensation — Employment Agreements, Arrangements or Plans***" for a description of our transactions with our former President, Chief Executive Officer and Director, Basil Botha.

See "***Description of Share Capital and Articles of Incorporation***" for a description of the Investor Rights Agreement dated July 13, 2022, which we entered into with our Chief Executive Officer, Kuljit (Jeet) Basi, as the representative of the holders of our warrants, and for a description of the Convertible Debentures Investor Rights Agreement, dated August 31, 2022, which we entered into with our Chief Executive Officer, Kuljit (Jeet) Basi, as the representative of the holders of our Convertible Debentures.

Basil Botha, our former Chief Executive Officer and Director, and Michael Hepworth, our Director, currently share joint control over Alpha Resources, which holds 317,206 Common Shares and 1,000,000 of our Investor Rights Warrants pursuant to the UMI Warrant issuance in July 2021 and the subsequent consolidating of the UMI Warrants into Investor Rights Warrants.

Fortuna Investment Corp., an affiliate of Fortuna, is a minority shareholder and the only other shareholder of F1 Advisory Group which holds 5,167,500 of our Investor Rights Warrants pursuant to the UMI Warrant issuance in July 2021 and the subsequent consolidating of the UMI Warrants into Investor Rights Warrants. Justus Parmar exercises voting and investment power over Fortuna Investment Corp. In March 2021, UMI engaged in due diligence and preliminary discussions with Fortuna regarding a possible business combination transaction. In May 2021, UMI and Fortuna entered into a non-binding letter of intent and ahead of the completion of the Merger, Fortuna Investment Corp., an affiliate of Fortuna, loaned funds to UMI in the aggregate principal amount of $111,000.

See note 13 to our Audited Financial Statements for the Years Ended December 31, 2021 and 2020 for a description of short-term loans with our former Chief Executive Officer and Director, Basil Botha and our former Chief Technology Officer and Director, Howard Glicksman.

See note 17 to our Audited Financial Statements for the Years Ended December 31, 2021 and 2020 and note 17 to our Unaudited Interim Financial Statements for the Six Months Ended June 30, 2022 and 2021 for a description of our transactions with our key management personnel.

See note 22 to our Audited Financial Statements for the Years Ended December 31, 2021 and 2020 for a description of the transition agreement we entered into with our former Chief Executive Officer and Director, Basil Botha to provide technical advisory services.

#### Review, Approval and Ratification of Related Party Transactions
The Company has adopted a Related Party Transactions Policy for the review and approval of related party transactions.

Our Related Party Transactions Policy is administrated by our audit and risk committee and provides that, in determining whether or not to recommend the initial approval or ratification of a related party transaction, the relevant facts and circumstances available shall be considered, including, among other factors it deems appropriate, whether the interested transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related party's interest in the transaction.

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#### DESCRIPTION OF SHARE CAPITAL AND ARTICLES OF INCORPORATION
We are a British Columbia corporation, and our affairs are governed by our notice of articles and our articles, each as amended from time to time, and the provisions of the *Business Corporations Act* (British Columbia). As of the date of this Prospectus, our authorized share capital consists of an unlimited number of Common Shares without par value.

As of December 31, 2021 and June 30, 2022, there were 8,559,784 Common Shares issued and outstanding. The following summary description of our share capital does not purport to be complete and is qualified in its entirety by reference to our notice of articles and articles. If you would like more information on our Common Shares, you should review our notice of articles, articles and the BCBCA.

As of December 31, 2021 and June 30, 2022, there were 25,208,116 Warrants and Nil Options issued and outstanding.

<u>**<u>History of Share Capital</u>**</u>

During the year ended December 31, 2019, the Company (as UMI) issued 1,416,667 common shares for total cash consideration of $564.

<u><u>During the year ended December 31, 2020:</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 30, 2020, 712,356 preferred shares of UMI were converted to common shares on a 1:1 conversion basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, 3,476,667 units of UMI were issued as part of a private placement at a price of $0.15 per unit. Each unit consisted of one common share and one common share purchase warrant. Each warrant entitled the holder thereof to purchase one additional common share at an exercise price of $0.45 per share for three years from the completion of the private placement. As a result, 3,476,666 warrants were issued with the fair value of $115,500.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, 1,381,999 common shares of UMI were issued to officers and directors at $0.15 per share. The fair value of the common shares issued was $210,050.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, as part of a debt settlement arrangement entered into with various vendors of UMI, 196,233 units were issued to settle debt valued at $95,574. Each unit consisted of one common share and one-half of one common share purchase warrant. Each full warrant entitled the holder thereof to purchase one common share of UMI at an exercise price of $0.45 per share for three years from the completion of the private placement. As a result, 98,117 warrants were granted as debt settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2020, 36,667 common shares were issued to employees of UMI at $0.15 per share. The fair value of the common shares issued was $2,750.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2020, 74,851 common shares of UMI were issued at $0.45 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During 2020, 830,138 common shares of UMI were redeemed.

<u><u>During the year ended December 31, 2021:</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2021, 133,333 units of UMI were issued at a price of $0.45 per common share. Each unit included one warrant allowing the owner to purchase one share at $0.90 over a three-year period. The fair value of these 133,333 warrants is $15,800, and these warrants will expiry on 15 January 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2021, 691,000 common shares of UMI were issued to officers and directors of the Company at $0.45 per common share. The fair value of the common shares granted was $310,950.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 28, 2021, UMI issued 49,500,000 UMI Warrants to investors in a private placement. Each UMI Warrant was issued for consideration of C$0.0035 for aggregate gross proceeds of C$173,250 ($137,365). Upon completion of the Consolidation, the UMI Warrants were consolidated into 16,500,000 Investor Rights Warrants issued for consideration of $0.0105 per warrant and are exercisable for $0.20 for three (3) years from the closing of the Offering.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On August 30, 2021, the Company granted 5,000,000 performance warrants with an exercise price of $0.05 vesting upon $10,000,000 and $20,000, 0000 in gross sales targets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 9, 2021, the Company completed a private placement offering of 1,270,149 Common Shares at a price of $0.50 per share for total proceeds of $635,075, share issuance costs of $6,245 and no finders' fees.

<u><u>During the year ended December 31, 2022</u></u>

On April 7, 2022, the Company issued $3,331,390 principal amount of 5% unsecured convertible debentures in a private placement. The debentures bear interest at five percent (5%) per annum. The debentures are due thirty-six (36) months following their issuance (on April 7, 2025). The Debenture Indenture executed in relation to the debentures also provides that in the event the Company completes a U.S. listing (such as the Offering), the principal amount plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00. In connection with the Debenture Offering, the Company paid $156,994.50 in commissions to various investment dealers/brokers.

<u>**<u>Warrants</u>**</u>

The Company had a number of warrants outstanding as of December 31, 2021, and of the date hereof, having various expiry periods and exercises prices, summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  **Issuance Date** | **Expiry<br>Date** | **Exercise<br>Price\*** | **December 31,<br>2021\*** |
|  July 14, 2020 | July 14, 2023 | $0.45 | **3476666** |
|  July 15, 2020 | July 15, 2023 | $0.45 | **98117** |
|  January 15, 2021 | January 15, 2024 | $0.90 | **133333** |
|  August 7, 2021 | 3 years post offering | $0.20 | **16500000** |
|  August 30, 2021 | 3 years post offering | $0.05 | **5000000** |
|  |  |  | **25208116** |

---

____________

\* During the year ended December 31, 2021, the Company completed a Consolidation (3:1). The numbers shown represent the number of warrants after the Consolidation.

On any exercise of any of the warrants, in lieu of payment of the aggregate exercise, holders may elect to receive Common Shares equal to the value of the warrants, or a portion as to which the warrants are being exercised.

On July 13, 2022, the Company entered into the Investor Rights Agreement. Pursuant to the Investor Rights Agreement, the Company agreed that each Investor (as defined in the Investor Rights Agreement) shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote, as a separate class, on any matter at any meetings of shareholders of the Company. Each Investor Rights Warrant entitles the holder thereof to one vote per Investor Rights Warrant. Further, the Warrantholder Representative shall be entitled to nominate three (3) directors to the Board, provided that each director nominee shall be a Canadian resident and shall meet the requirements of applicable corporate, securities and other laws. The Investor Rights Agreement will terminate upon completion of the Offering, and consequently, the voting rights granted under the Investor Rights Agreement to the holders of the Investor Rights Warrants will also terminate at such time.

<u>**<u>Common Shares</u>**</u>

#### General
All of our Common Shares are fully paid and non-assessable. Our Common Shares are issued in registered form and may or may not be certificated although every shareholder is entitled at their option to a share certificate that complies with the BCBCA. Except as provided in the *Investment Canada Act* (Canada), there are no limitations on the rights of shareholders who are not residents of Canada to hold and vote Common Shares.

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#### Dividends
Holders of our Common Shares are entitled to receive, from funds legally available therefor, dividends when and as declared by the Board of Directors, subject to any prior rights of the holders of shares with special rights if issued. The BCBCA provides that a corporation may not declare or pay a dividend if there are reasonable grounds for believing that the corporation is, or would be after the payment of the dividend, unable to pay its liabilities as they become due or the realizable value of its assets would thereby be less than the aggregate of its liabilities and stated capital of all classes of shares of its capital. These rights are subject to the rights, privileges, restrictions and conditions attaching to any other series or class of shares ranking senior in priority to or on a pro rata basis with the holders of Common Shares with respect to dividends.

#### Voting Rights
Each Common Share is entitled to one vote on all matters upon which the Common Shares are entitled to vote.

#### Liquidation
With respect to a distribution of assets in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets for the purposes of winding up our affairs, assets available for distribution among the holders of Common Shares shall be distributed among the holders of the Common Shares on a pro rata basis, subject to any prior rights of the holders of shares with special rights if issued.

#### Transfer Agent and Registrar
Computershare Investor Services Inc. is the transfer agent and registrar for our Common Shares. The address of Computershare is 800-324 8 Avenue SW, Calgary, Alberta T2P 2Z2.

#### Shareholders' Rights
The BCBCA, our notice of articles and our articles govern us and our relations with our shareholders. The following is a summary of certain rights of holders of our Common Shares under our articles and the BCBCA. This summary is not intended to be complete and is qualified in its entirety by reference to the BCBCA, our notice of articles and articles.

#### Stated Objects or Purposes
Our articles do not contain any stated objects or purposes and do not place any limitations on the business that we may carry on.

#### Shareholder Meetings
Pursuant to the BCBCA, we must hold an annual meeting of our shareholders at least once every calendar year at a time and place determined by the Board of Directors, provided that the meeting must not be held later than 15 months after the preceding annual meeting. A meeting of our shareholders may be held at any place within British Columbia or, if determined by our directors, any location outside British Columbia.

Subject to any special rights or restrictions attached to any shares, voting at a meeting of shareholders may be conducted by way of poll or by show of hands or, in certain other circumstances as required by the BCBCA, in any other manner that adequately discloses the intentions of the shareholders present. Accordingly, the articles provide that: (a) on a poll, every shareholder entitled to vote has one vote in respect of each share held by that shareholder that carries the right to vote on that poll and may exercise that vote either in person or by proxy; and (b) on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to vote at the meeting has one vote.

A poll may be demanded by the chairman of the meeting or by any shareholder present in person or by proxy. However, if such a poll is demanded, the poll must be taken at the meeting or within seven days after the date of the meeting, as the chair of the meeting so directs, and in the manner, at the time and at the place that the chair of the meeting directs.

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A special resolution is a resolution passed by not less than two-thirds of the votes cast by the shareholders entitled to vote on the resolution at a meeting at which a quorum is present. An ordinary resolution is a resolution passed by not less than a simple majority of the votes cast by the shareholders entitled to vote on the resolution at a meeting at which a quorum is present.

#### Notice of Meeting of Shareholders
Our articles provide that we 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 the articles, or in such other manner, if any, as may be prescribed by ordinary 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 the articles otherwise provide, at least 21 days before the meeting.

#### Quorum
Our articles provide that, subject to the special rights and restrictions attached to the shares of any affected class or series of shares, the quorum for the transaction of business at a meeting of shareholders is one or more persons, present in person or by proxy and together holding or representing by proxy shares carrying at five percent of the votes entitled to be voted at the meeting.

#### Record Date for Notice of Meeting of Shareholders
Our board may fix, in advance, a date as the record date for the determination of shareholders entitled to receive notice of a meeting of shareholders, but such record date shall not precede by more than two months or by less than 21 days the date on which the meeting is to be held. If no record date is fixed, the record date for the determination of shareholders entitled to receive notice of a meeting of shareholders shall be 5:00 p.m. on the day immediately preceding the day on which the notice is given or, if no notice is given, the beginning of the meeting.

#### Ability to Requisition Special Meetings of the Shareholders
The BCBCA provides that the holders of not less than five percent of the issued shares of a corporation that carry the right to vote at a meeting sought to be held may give notice to the directors requiring them to call a meeting for the purposes stated in the requisition.

#### Authorization of Certain Corporate Action
Under the BCBCA, certain substantive changes to the charter documents of the corporation, such as an alteration of the restrictions, if any, on the business carried on by the corporation, a change in the name of the corporation, an increase, reduction or elimination of the maximum number of shares that the corporation is authorized to issue out of any class or series of shares, or an alteration of the special rights and restrictions attached to issued shares, require a resolution of the type specified in the articles. Accordingly, if the articles fail to specify the type of resolution or, if the articles do not contain such a provision, a special resolution passed by at least two-thirds of the votes cast by shareholders on the resolution. Other fundamental changes such as a proposed amalgamation or arrangement require a similar special resolution passed by the holders of shares of each class entitled to vote at a general meeting and the holders of all classes of shares adversely affected by such changes.

Under the Company's articles, the directors have the authority to exercise all such powers of the Company as are not, by the BCBCA or by its articles, required to be exercised by the shareholders of the Company. Such powers include the power to alter the restrictions, if any, on the business carried on by the Company, to change the name of the Company, to subdivide or consolidate all or any of the Company's unissued, or fully paid issued, shares, and to alter the identifying name of any of its shares.

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#### Dissent Rights
The BCBCA provides that our shareholders are entitled to exercise dissent rights and demand payment of the fair value of their shares in certain circumstances and provided that the procedures set out in the BCBCA are followed. For this purpose, there is no distinction between listed and unlisted shares. Dissent rights of holders of any class of our shares exist when we resolve to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) alter the articles to alter restrictions on our powers or on the business we are permitted to carry on;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adopt an amalgamation agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) approve an amalgamation into a foreign jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) approve an arrangement, the terms of which arrangement permit dissent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) authorize or ratify the sale, lease or other disposition of all or substantially all our' undertaking;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) authorize our continuation into a jurisdiction other than British Columbia; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) pass any other resolution, if dissent is authorized by the resolution. In addition, a court order in connection with an arrangement proposed by us may permit shareholders to dissent if the arrangement is adopted.

#### Action by Written Consent
Under the BCBCA, shareholders can take action by written resolution and without a meeting only if all shareholders sign the written resolution.

<u>**<u>Directors</u>**</u>

#### Number of Directors and Election
Under the BCBCA, our charter documents consist of (i) the notice of articles, which sets forth the name of the corporation, the corporation's registered and records office, the names and addresses of our directors and the amount and type of authorized capital, and (ii) the articles, which govern the management of the corporation, set out any special rights or restrictions attached our shares and establishes the procedures for changing the number of directors on our board.

Accordingly, as we are a public company, as such term is defined in the BCBCA, the articles provide that the Board of Directors must consist of the greater of: (i) three directors; and (ii) such number of directors equal to the number of directors most recently elected by ordinary resolution at a meeting of shareholders. Our Board of Directors currently consists of six directors. Our articles provide that our board may appoint one or more additional directors, who shall hold office for a term expiring not later than the close of the next annual meeting of shareholders, to fill any casual vacancy occurring on the Board of Directors provided the total number of directors so appointed may not exceed one-third the number of directors elected at the previous annual meeting of shareholders. Shareholders of a corporation governed by the BCBCA elect directors by ordinary resolution at each annual meeting of shareholders at which such an election is required.

#### Director Qualifications
Under the BCBCA a director must not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) under eighteen years of age;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) found by a court, in Canada or elsewhere, to be incapable of managing their own affairs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an undischarged bankrupt; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) convicted in or out of the Province of British Columbia of an offence in connection with the promotion, formation or management of a corporation or unincorporated business, or of an offence involving fraud, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a court orders otherwise,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 5 years have elapsed since the last to occur of: (A) the expiration of the period set for suspension of the passing of sentence without a sentence having been passed; (B) the imposition of a fine; (C) the conclusion of the term of any imprisonment; and (D) the conclusion of the term of any probation imposed, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a pardon was granted or issued, or a record suspension was ordered, under the Criminal Records Act (Canada) and the pardon or record suspension, as the case may be, has not been revoked or ceased to have effect.

#### Removal of Directors

#### Vacancies on the Board of Directors
Under the BCBCA, vacancies that exist on the Board of Directors, except a vacancy resulting from an increase in the number or the minimum or maximum number of directors or a failure to elect the number or minimum number of directors provided for in the articles, may be filled by the Board of Directors if the remaining directors constitute a quorum. In the absence of a quorum, the remaining directors may only act for the purpose of appointing directors up to such number so as to establish quorum or summon a meeting of shareholders to fill any vacancies on the Board of Directors or for any other purpose permitted by the BCBCA.

#### Limitation of Personal Liability of Directors and Officers
Under the BCBCA, in exercising their powers and discharging their duties, directors and officers must act honestly and in good faith with a view to the best interests of the corporation and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. No provision in the corporation's articles, resolutions or contracts can relieve a director or officer from the duty to act in accordance with the BCBCA or relieve a director from liability for a breach thereof. However, a director will not be liable for breaching his or her duty to act in accordance with the BCBCA if the director relied in good faith on: (i) financial statements represented to them by an officer or in a written report of the auditor to fairly reflect the financial condition of the corporation; or (ii) a report of a person whose profession lends credibility to a statement made by such person.

#### Indemnification of Directors and Officers
Under Division 5 of Part 5 of the BCBCA, we may indemnify any present or former director or officer or an individual who acts or has acted at our request as a director or officer, or an individual acting in a similar capacity, of another corporation or entity, against all judgments, penalties or fines awarded or imposed in, or amounts paid in settlement of, a proceeding in which any such director, officer or other individual, by reason of him or her being or having been a director of officer of, or holding or having held a position equivalent to that of a director or officer of, our company or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding. In addition we may, after the final disposition of any such proceeding, pay the expenses actually and reasonably incurred by any such director, officer or other individual in respect of that proceeding, or in certain circumstances we may pay such expenses as they are incurred. However, Division 5 of Part 5 of the BCBCA also provides that we must not provide such indemnification or payment of expenses in certain circumstances including if, in relation to the subject matter of the proceeding, such director, officer or other individual did not act honestly and in good faith with a view to our best interests, or, as the case may be, to the best interests of the associated corporation, and if, in the case of a proceeding other than a civil proceeding, such director, officer or other individual did not have reasonable grounds for believing that his or her conduct was lawful.

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Under our articles, our Board of Directors must cause us to indemnify our directors and officers and former directors and officers, and their respective heirs and personal or other legal representatives to the greatest extent permitted by Division 5 of Part 5 of the BCBCA.

We have entered into indemnity agreements with each of our directors and officers agreeing to indemnify them, to the fullest extent permitted by law, against all liability, loss, harm damage cost or expense, reasonably incurred by the director in respect of any threatened, pending, ongoing or completed claim or civil, criminal, administrative, investigative or other action or proceeding made or commenced against him or in which he is or was involved by reason of the fact that he is or was a director of our Company.

#### Sources of Dividends
Dividends may be declared at the discretion of the Board of Directors. Under the BCBCA, the directors may not declare, and we may not pay, dividends if there are reasonable grounds for believing that (i) we are, or would after such payment be unable to pay our liabilities as they become due or (ii) the realizable value of our assets would be less than the aggregate of our liabilities and of our stated capital of all classes of shares.

#### Amendments to the Notice of Articles and Articles
Subject to the articles and the BCBCA, our directors may by resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change the name of the corporation or adopt or change any translation of that name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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;(c) increase, reduce or eliminate the maximum number of shares that we are authorized to issue out of any class or series of shares or establish a maximum number of shares that we are 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;(d) if we are authorized to issue shares of a class of shares with par value: (i) decrease the par value of those shares, (ii) if none of the shares of that class of shares are allotted or issued, increase the par value of those shares, (iii) subdivide all or any of its unissued or fully paid issued shares with par value into shares of smaller par value, or (iv) consolidate all or any of its unissued or fully paid issued shares with par value into shares of larger par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) change all or any of our unissued or fully paid issued shares with par value into shares without par value or all or any of its unissued shares without par value into shares with par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) alter the identifying name of any of our shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) otherwise alter our shares or authorized share structure when required or permitted to do so by the BCBCA.

#### Interested Directors Transactions
Under the BCBCA, a director or senior officer of a company holds a disclosable interest in a contract or transaction if (a) the contract or transaction is material to the company, (b) the company has entered, or proposes to enter, into the contract or transaction, and (c) either the director or senior officer has a material interest in the contract or transaction, or the director or senior officer is a director or senior officer of, or has a material interest in, a person who has a material interest in the contract or transaction. A director who has a disclosable interest in a contract or transaction is not entitled to vote on any directors' resolution to approve that contract or transaction. Further, subject to the BCBCA, generally a director or senior officer of the company is liable to account to the company for any profit that accrues to him or her under or as a result of a contract or transaction in which he or she holds a disclosable interest. However in certain circumstances a director or senior officer of the company will not be liable to account for and may retain any such profit including if the contract or transaction is approved by the directors after the nature and extent of the disclosable interest has been disclosed to the directors, or if the contract or transaction is approved by a special resolution of the shareholders after the nature and extent of the disclosable interest has been disclosed to the shareholders entitled to vote on that resolution. The disclosure of the nature and extent of a disclosable interest may be made to the company in writing or be evidenced in a consent resolution, the minutes of a meeting or other record deposited in the company's records office.

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#### Committees
Under the BCBCA and our articles, our directors may, by way of resolution, appoint one or more committees consisting of directors from their number or other persons, as desired, and delegate to such committee members certain powers of the directors.

#### Derivative Actions
Under the BCBCA, a complainant (as defined below) may, with leave of the court, prosecute or defend a legal proceeding in the name and on behalf of the corporation to enforce a right, duty or obligation owed to the corporation that could be enforced by the corporation itself or to obtain damages for any breach of such a right, duty or obligation. A "complainant" includes, in relation to us, a shareholder or director of the corporation. Accordingly, no such action may be brought and no such intervention in an action may be made unless the court is satisfied that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the complainant has made reasonable efforts to cause our directors to prosecute or defend the legal proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notice of the application for leave has been given to us and to any other person the court may order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the complainant is acting in good faith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it appears to the court that it is in the best interests of the company for the legal proceeding to be prosecuted or defended.

Under the BCBCA, the court in a derivative action may make any order it thinks fit, including orders pertaining to the awarding of costs and the indemnification of certain individuals, including the complainant. Further, no legal proceeding prosecuted or defended in regards to a derivative action brought forward by a complainant may be discontinued, settled or dismissed without the approval of the court under the BCBCA.

#### Oppression Remedy
Under the BCBCA, a shareholder of a corporation or any other person who, in the discretion of the court, is an appropriate person to make an application has the right to apply to the court on the grounds that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the affairs of the corporation are being or have been conducted, or that the powers of the directors are being or have been exercised, in a manner oppressive to one or more of the shareholders, including the applicant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) some act of the corporation has been done or is threatened, or that some resolution of the shareholders or of the shareholders holding shares of a class or series of shares has been passed or is proposed, that is unfairly prejudicial to one or more of the shareholders, including the applicant.

On such an application, the court can grant a variety of remedies, ranging from an order restraining the conduct complained of to an order requiring the corporation to repurchase the shareholder's shares or an order liquidating the corporation.

#### Inspection of Books and Records
Under the BCBCA, our shareholders may examine, free of charge during normal business hours:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) our notice of articles and articles and all amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the minutes and resolutions of our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) copies of all notices of directors filed under the BCBCA;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) our register of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) our central securities register.

Any of our shareholders may request copies of our notice of articles and articles and all amendments thereto free of charge.

#### Resale Restrictions
See Lock-Up Agreements discussed below.

#### Listing
We intend to apply for listing of our Common Shares on under the symbol " ".

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#### SECURITIES ELIGIBLE FOR FUTURE SALE
Prior to this Offering, there has been no market for our Common Shares. Future sales of substantial amounts of our Common Shares in the public market or the perception that such sales might occur could adversely affect market prices prevailing from time to time. Furthermore, because only a limited number of Common Shares will be available for sale shortly after this Offering due to existing contractual and legal restrictions on resale as described below, there may be sales of substantial amounts of our Common Shares in the public market after the restrictions lapse. This may adversely affect the prevailing market price of our Common Shares and our ability to raise equity capital in the future.

After completion of this Offering, we will have Common Shares issued and outstanding (or Common Shares if the Underwriters' option to purchase additional Common Shares is exercised in full).

All of the Common Shares sold in this Offering will be freely tradable without restrictions or further registration under the Securities Act, unless the shares are purchased by our "affiliates" as that term is defined in Rule 144 and except certain shares that will be subject to the lock-up period described below after completion of this Offering. Any shares owned by our affiliates may not be resold except in compliance with Rule 144 volume limitations, manner of sale and notice requirements, pursuant to another applicable exemption from registration or pursuant to an effective registration statement.

Each of our directors, officers and any other holder of outstanding common shares (or securities convertible into common shares, including options and warrants) as of the effective date of the registration statement, of which this prospectus forms a part, have entered into "lock-up" agreements in favor of the representative pursuant to which such persons and entities have agreed, for a period of twelve (12) months from the date of the offering in the case of our directors and officers and six (6) months from the date of the offering in the case of any other holder of outstanding securities, that they will neither offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our securities without the representative's prior written consent. "***Underwriting***" on page 87. Accordingly, there will be a corresponding increase in the number of shares that become eligible for sale after the lock-up period expires. As a result of these agreements, subject to the provisions of Rule 144 or Rule 701, shares will be available for sale in the public market as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning on the date of this Prospectus, all of the shares sold in this Offering will be immediately available for sale in the public market (except as described above); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning days after the date of this Prospectus, at the expiration of the lock-up period for our officers, directors and holders of at least % of our outstanding securities, additional Common Shares will become eligible for sale in the public market, all of which shares will be held by affiliates and subject to the volume and other restrictions of Rule 144 and Rule 701 as described below.

#### Lock-Up Agreements
The Company has various lock-up agreements in effect as a result of the Merger and financing transactions it has undertaken, as summarized below.

All securities issued by the Company in connection with the Merger (other than the Investor Rights Warrants and any Common Shares issuable thereunder) are subject to restrictions such that during the Lock-Up Period the holders thereof may not (a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Capital Shares or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Shares, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Capital Shares or other securities, in cash or otherwise. After the expiration of the Lock-Up Period, until the expiration of the Leak-Out Period such holders may only sell shares of Capital Shares within the following cumulative limits based on the aggregate number of shares of Capital Shares beneficially owned by such holders on the commencement date of the Leak-Out Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12 months from the closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 16 months from the closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 20 months from the closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 24 months from the closing of the Offering — 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 28 months from the closing of the Offering — 20%

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Investor Rights Warrants (including any Common Shares issuable thereunder) are subject to a resale restrictions such that they will be released from lock-up six (6) months following the closing of the Offering (i.e. U.S. listing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In connection with the Debenture Offering, upon completion of the U.S. listing (i.e. the Offering), the principal amount of such Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the offering price, and (B) $5.00 and all such Common Shares issued on such automatic conversion shall be subject to a six (6) month hold period/resale restriction from the closing of the Offering.

#### Rule 144
In general, under Rule 144 as currently in effect, once we have been subject to public company reporting requirements for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the Common Shares proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those Common Shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the Common Shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person would be entitled to sell those Common Shares without complying with any of the requirements of Rule 144.

In general, under Rule 144, as currently in effect, our affiliates or persons selling Common Shares on behalf of our affiliates are entitled to sell upon expiration of the lock-up agreements described above, within any three-month period, a number of Common Shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of Common Shares then outstanding, which will equal approximately Common Shares immediately after this Offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of our Common Shares during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
Rule 701 generally allows a shareholder who purchased our Common Shares pursuant to a written compensatory plan or contract and who is not deemed to have been our affiliate during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits our affiliates to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required by that rule to wait until 90 days after the date of this Prospectus before selling those shares pursuant to Rule 701 and are subject to the lock-up agreements described above.

The Common Shares may be sold in Canada only to purchasers, purchasing, or deemed to be purchasing, as principal, that are accredited investors, as defined in National Instrument 45-106 *Prospectus Exemptions* or subsection 73.3(1) of the Securities Act (Ontario). Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable Canadian securities laws. Canadian purchasers should refer to any applicable provisions of the securities legislation of their province or territory for particulars of these rights or consult with a legal advisor.

**THE DISCUSSION ABOVE IS A GENERAL SUMMARY. IT DOES NOT COVER ALL MATTERS RELATING TO SHARE TRANSFER RESTRICTIONS THAT MAY BE OF IMPORTANCE TO A PROSPECTIVE INVESTOR. EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN LEGAL ADVISOR REGARDING THE PARTICULAR SECURITIES LAWS AND TRANSFER RESTRICTION CONSEQUENCES OF PURCHASING, HOLDING, AND DISPOSING OF OUR COMMON SHARES, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAWS.**

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#### MATERIAL TAX CONSIDERATIONS
*The following description is not intended to constitute a complete analysis of all tax consequences relating to the ownership or disposition of our Common Shares, including the Common Shares. You should consult your own tax advisor concerning the tax consequences of your particular situation, as well as any tax consequences that may arise under the laws of any local, state, foreign (including Canada), or other taxing jurisdiction.*

#### Taxation in Canada

#### Material Canadian Federal Income Tax Considerations
In the opinion of Aird & Berlis LLP, Canadian counsel to the Company, the following summary describes the principal Canadian federal income tax considerations pursuant to the *Income Tax Act* (Canada) and the regulations thereunder (the "**Tax Act**") generally applicable to the acquisition, holding and disposition of the Common Shares by a holder who acquires, as beneficial owner, the Common Shares pursuant to the Offering and who, for purposes of the Tax Act and at all relevant times, holds the Common Shares as capital property, deals at arm's length with the Company and each underwriter and is not affiliated with the Company or any underwriter (a "**Holder**"). Generally, the Common Shares will be considered to be capital property to a Holder provided the Holder does not acquire or hold the Common Shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade.

This summary does not apply to a Holder (i) that is a "financial institution" for the purposes of the mark-to-market rules contained in the Tax Act; (ii) that is a "specified financial institution" as defined in the Tax Act; (iii) an interest in which would be, or for whom a Common Share would be, a "tax shelter investment" as defined in the Tax Act; (iv) that has made a functional currency reporting election under the Tax Act to report in a currency other than the Canadian currency; (v) that has or will enter into a "derivative forward agreement", a "synthetic disposition arrangement" or a "dividend rental arrangement", each as defined under the Tax Act, with respect to the Common Shares; or (vi) that carries on, or is deemed to carry on, an insurance business in Canada or elsewhere. Such Holders should consult their own tax advisors with respect to an investment in the Common Shares.

Additional considerations, not discussed herein, may be applicable to a Holder that is a corporation resident in Canada and that is or becomes, or does not deal at arm's length for purposes of the Tax Act with a corporation resident in Canada that is or becomes, as part of a transaction or event or series of transactions or events that includes the acquisition of the Common Shares, controlled by a non-resident person or group of non-resident persons not dealing with each other at arm's length for purposes of the "foreign affiliate dumping" rules in section 212.3 of the Tax Act. Such Holders should consult their own tax advisors with respect to the possible application of these rules.

In addition, this summary does not address the deductibility of interest by a Holder who has borrowed money or otherwise incurred debt in connection with the acquisition of the Common Shares.

This summary is based upon the provisions of the Tax Act in force as of the date hereof, all specific proposals to amend the Tax Act that have been publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof(the "**Proposed Amendments**") and counsel's understanding of the current administrative policies and assessing practices of the Canada Revenue Agency ("**CRA**") made publicly available prior to the date hereof. This summary assumes the Proposed Amendments will be enacted in the form proposed; however, no assurance can be given that the Proposed Amendments will be enacted in the form proposed, if at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except for the Proposed Amendments, does not take into account or anticipate any changes in law or the administrative policies or assessing practices of the CRA, whether by legislative, governmental or judicial action or decision, nor does it take into account provincial, territorial or foreign tax considerations, which may differ significantly from those discussed herein.

Subject to certain exceptions that are not discussed in this summary, for the purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of Common Shares, including dividends, must be determined in Canadian dollars using the relevant exchange rate determined in accordance with the Tax Act.

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This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular holder or prospective holder of the Common Shares, and no representations with respect to the income tax consequences to any holder or prospective holder are made. Consequently, holders and prospective holders of the Common Shares should consult their own tax advisors for advice with respect to the tax consequences to them of acquiring the Common Shares, having regard to their particular circumstances.

#### Holders Resident in Canada
This portion of the summary applies to a Holder who, at all relevant times, for purposes of the Tax Act and any applicable income tax treaty or convention, is or is deemed to be resident in Canada (a "**Resident Holder**").

Certain Resident Holders who might not otherwise be considered to hold their Common Shares as capital property may, in certain circumstances, be entitled to have the Common Shares, and all other "Canadian securities" (as defined in the Tax Act) owned by such Resident Holders in the taxation year of the election and any subsequent taxation year, treated as capital property by making the irrevocable election permitted by subsection 39(4) of the Tax Act. Resident Holders should consult their own tax advisors regarding the availability or advisability of this election.

#### Dividends on the Common Shares
Dividends received or deemed to be received on the Common Shares by a Resident Holder who is an individual (other than certain trusts) will generally be included in the individual's income and will be subject to the gross-up and dividend tax credit rules applicable to taxable dividends received from taxable Canadian corporations, including the enhanced dividend tax credit rules applicable to any dividends designated by the Company as "eligible dividends" in accordance with the Tax Act. There may be limitations on the ability of the Company to designate dividends as "eligible dividends."

In the case of a Resident Holder that is a corporation, the amount of any such taxable dividend that is included in its income for a taxation year will generally also be deductible in computing its taxable income for that taxation year. In certain circumstances, a dividend received or deemed to be received by a Resident Holder that is a corporation may be deemed to be proceeds of disposition or a capital gain pursuant to subsection 55(2) of the Tax Act. Resident Holders that are corporations should consult their own tax advisors having regard to their own particular circumstances.

A Resident Holder that is a "private corporation" or a "subject corporation", each as defined in the Tax Act will generally be liable to pay a refundable tax under Part IV of the Tax Act on dividends received or deemed to be received on the Common Shares to the extent such dividends are deductible in computing its taxable income for the taxation year. Such additional tax may be refundable in certain circumstances.

#### Dispositions of Common Shares
Upon a disposition (or a deemed disposition) of a Common Share, a Resident Holder generally will realize a capital gain (or a capital loss) equal to the amount, if any, by which the proceeds of disposition of such Common Share, net of any reasonable costs of disposition, are greater (or are less) than the adjusted cost base of such Common Share to the Resident Holder.

The adjusted cost base to a Resident Holder of Common Shares acquired hereunder will be determined by averaging the cost of such Common Shares to the Resident Holder with the adjusted cost base of any other Common Shares held by the Resident Holder as capital property immediately before the acquisition.

#### Taxation of Capital Gains and Capital Losses
Generally, one-half of any capital gain (a "taxable capital gain") realized by a Resident Holder in a taxation year must be included in the Resident Holder's income for the year and one-half of any capital loss (an "allowable capital loss") realized by a Resident Holder in a taxation year must be deducted from taxable capital gains realized by the Resident Holder in that year. Allowable capital losses in excess of taxable capital gains realized in a taxation year generally may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year against net taxable capital gains realized in such years, to the extent and under the circumstances described in the Tax Act.

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The amount of any capital loss realized by a Resident Holder that is a corporation on the disposition of a Common Share may be reduced by the amount of dividends received or deemed to be received by it on such Common Share, to the extent and under the circumstances described in the Tax Act. Similar rules may apply where a Common Share is owned by a partnership or trust of which a corporation, trust or partnership is a member or beneficiary. Resident Holders to whom these rules may be relevant should consult their own tax advisors.

#### Aggregate Investment Income
A Resident Holder that is, throughout the relevant taxation year, a "Canadian-controlled private corporation", as defined in the Tax Act, may be liable to pay a refundable tax on its "aggregate investment income", which is defined in the Tax Act to include an amount in respect of taxable capital gains and dividends or deemed dividends that are not deductible in computing such corporation's income. Pursuant to Proposed Amendments released on April 7, 2022 in a Notice of Ways and Means Motion (the "Notice") released with the federal budget, it is proposed that the refundable tax on investment income will also apply to corporations that are "substantive CCPCs" as defined in the Notice.

#### Alternative Minimum Tax
Capital gains realized and dividends received or deemed to be received by an individual (including certain trusts) may give rise to liability for alternative minimum tax as calculated under the detailed rules set out in the Tax Act. Resident Holders who are individuals should consult their own tax advisors in this regard.

#### Holders Not Resident in Canada
This portion of the summary applies to a Holder who, at all relevant times, for purposes of the Tax Act and any applicable income tax treaty or convention (i) is neither resident nor deemed to be resident in Canada, and (ii) does not, and is not deemed to, use or hold the Common Shares in a business carried on in Canada (a "Non-Resident Holder"). In addition, this portion of the summary does not apply to an insurer who carries on an insurance business in Canada and elsewhere or an "authorized foreign bank" (as defined in the Tax Act) and such Non-Resident Holders should consult their own tax advisors.

#### Dividends on the Common Shares
Any dividends paid or credited, or deemed to be paid or credited, on the Common Shares, as the case may be, to a Non-Resident Holder will generally be subject to Canadian withholding tax at the rate of 25% of the gross amount of the dividend, subject to any reduction in the rate of withholding to which that Non-Resident Holder may be entitled under an applicable income tax treaty or convention. For instance, where the Non-Resident Holder is a resident of the United States that is entitled to applicable benefits under the Canada-United States Income Tax Convention (1980), as amended, and is the beneficial owner of the dividends, the rate of Canadian withholding tax applicable to dividends is generally reduced to 15%. The rate of withholding tax is generally further reduced to 5% if the beneficial owner of such dividend is a company that owns, directly or indirectly, at least 10% of the voting shares of the Company. Non-Resident Holders should consult their own tax advisors to determine their entitlement to relief under an applicable income tax treaty or convention.

#### Disposition of the Common Shares
A Non-Resident Holder will not be subject to tax under the Tax Act in respect of any capital gain realized by such Non-Resident Holder on a disposition of a Common Share unless such share constitutes "taxable Canadian property" (as defined in the Tax Act) of the Non-Resident Holder at the time of disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax treaty or convention.

Generally, the Common Shares will not constitute "taxable Canadian property" of a Non-Resident Holder at any particular time provided that the Common Shares are then listed on a "designated stock exchange" for the purposes of the Tax Act (which currently includes), unless at any time during the 60-month period immediately preceding such time: (i) at least 25% or more of the issued shares of any class or series of the capital shares of the Company were owned by or belonged to any combination of (x) the Non-Resident Holder, (y) persons with whom the Non-Resident Holder did not deal at arm's length (for the purposes of the Tax Act), and (z) partnerships in which the Non-Resident Holder or a person described in (y) holds a membership interest directly or indirectly through one or more partnerships; and (ii) more than 50% of the fair market value of such shares was derived directly or

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indirectly from one, or any combination of, real or immovable property situated in Canada, Canadian resource property (as defined in the Tax Act), timber resource property (as defined in the Tax Act) or options in respect of, interests in or for civil law rights in, any such property (whether or not such property exists). Notwithstanding the foregoing, the Common Shares may also be deemed to be "taxable Canadian property" in certain circumstances.

In cases where a Non-Resident Holder disposes (or is deemed to have disposed) of a Common Share that is "taxable Canadian property" to that Non-Resident Holder, and the Non-Resident Holder is not entitled to an exemption under an applicable income tax treaty or convention, the consequences described above under the headings "Holders Resident in Canada — Dispositions of Common Shares" and "Taxation of Capital Gains and Capital Losses" will generally be applicable to such disposition. Non-Resident Holders for whom a Common Share is, or may be, "taxable Canadian property" should consult their own tax advisors.

#### Material U.S. Federal Income Tax Considerations
The following discussion is a general summary of material U.S. federal income tax considerations with respect to the ownership and disposition of shares of our Common Shares. This summary is based on current U.S. federal income tax laws (including provisions of the U.S. Internal Revenue Code of 1986, as amended (the "**Code**"), U.S. Treasury regulations promulgated thereunder and administrative rulings and court decisions, all in effect as of the date hereof), all of which are subject to change at any time, possibly with retroactive effect. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect owners of our Common Shares.

For purposes of this discussion, the term "U.S. Holder" means a beneficial owner of one or more of our Common Shares that is for U.S. federal income tax purposes one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual citizen or resident of the United States, including individuals treated as residents of the United States solely for tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation created or organized in or under the laws of the United States or any political subdivision thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate the income of which is subject to U.S. federal income taxation regardless of its source, or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust if (1) a court within the United States can exercise primary supervision over it, and one or more United States persons have the authority to control all substantial decisions of the trust, or (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person.

This discussion applies only to a U.S. Holder that holds Common Shares as "capital assets" within the meaning of Section 1221 of the Code (generally, property held for investment). Unless otherwise provided, this summary does not discuss reporting requirements. This discussion is of a general nature only and does not take into account the particular facts and circumstances, with respect to U.S. federal income tax issues, of any particular U.S. Holder. In addition, this discussion does not address any tax consequences other than U.S. federal income tax consequences, such as U.S. state and local tax consequences, U.S. estate and gift tax consequences, and non-U.S. tax consequences, and does not describe all of the U.S. federal income tax consequences that may be relevant in light of a U.S. Holder's particular circumstances, including alternative minimum tax consequences, the net investment income tax, and tax consequences to holders that are subject to special provisions under the Code, including, but not limited to, holders that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are tax exempt organizations, qualified retirement plans, individual retirement accounts, or other tax deferred accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are financial institutions, underwriters, insurance companies, real estate investment trusts, or regulated investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are brokers or dealers in securities or currencies or holders that are traders in securities that elect to apply a mark-to-market accounting method;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have a "functional currency" for U.S. federal income tax purposes that is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• own Common Shares as part of a straddle, hedging transaction, conversion transaction, constructive sale, or other arrangement involving more than one position;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquire Common Shares in connection with the exercise of employee share options or otherwise as compensation for services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are partnerships or other pass-through entities for U.S. federal income tax purposes (or investors in such partnerships and entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are required to accelerate the recognition of any item of gross income with respect to the Common Shares as a result of such income being recognized on an applicable financial statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are controlled foreign corporations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are passive foreign investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hold the Common Shares in connection with trade or business conducted outside of the United States or in connection with a permanent establishment or other fixed place of business outside of the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are former U.S. citizens or former long-term residents of the United States.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds shares of our securities, the tax treatment of a person treated as a partner for U.S. federal income tax purposes generally will depend on the status of the partner and the activities of the partnership. Persons that for U.S. federal income tax purposes are treated as a partner in a partnership holding shares of our securities should consult their tax advisors.

We have not sought, and do not expect to seek, a ruling from the United States Internal Revenue Service (the "**IRS**"), as to any United States federal income tax consequence described herein. The IRS may disagree with the discussion herein, and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or court decisions will not adversely affect the accuracy of the statements in this discussion.

**WE RECOMMEND THAT PROSPECTIVE HOLDERS OF OUR COMMON SHARES CONSULT WITH THEIR TAX ADVISORS REGARDING THE TAX CONSEQUENCES TO THEM (INCLUDING THE APPLICATION AND EFFECT OF ANY FEDERAL, STATE, LOCAL, NON**-U**.S. INCOME AND OTHER TAX LAWS) OF THE OWNERSHIP AND DISPOSITION OF OUR COMMON SHARES.**

#### U.S. Tax Status of the Company
Although the Company is incorporated under Canadian law, as a result of the consummation of the Merger, the Company should be treated, pursuant to Section 7874 of the Code, as a U.S. corporation for all purposes under the Code. As a result, since the Company should be treated as a U.S. corporation for U.S. federal income tax purposes, we do not intend to treat the Company as a "passive foreign investment company," as such rules apply only to non-U.S. corporations that are treated as such for U.S. federal income tax purposes. Since the Company is a taxable corporation in Canada, it would likely be subject to income taxation in both the United States and Canada on the same income, which could reduce the amount of income available for distribution to shareholders. The ability of the Company to take foreign tax credits against its U.S. tax liability in respect of taxes paid in Canada may be limited.

The rules under Section 7874 are complex and require analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties as to aspects of their application. If it were determined that we should be taxed as a foreign corporation for U.S. federal income tax purposes under Section 7874 of the Code, the U.S. federal income tax consequences described herein could be materially and adversely affected. For example, U.S. Holders could be subject to the rules applicable to passive foreign investment companies. Beneficial owners of our shares should consult their own tax advisors with respect the tax consequences if we were classified as a foreign corporation for U.S. federal income tax purposes.

The remainder of this discussion assumes that the Company is treated as a U.S. corporation for all U.S. federal income tax purposes.

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#### U.S. Holders

#### Taxation of Distributions
If we pay distributions in cash or other property (other than certain distributions of our Common Share or rights to acquire our Common Share) to U.S. Holders of our Common Shares, such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder's adjusted tax basis in our Common Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the Common Shares and will be treated as described under "*U.S. Holders — Sale, Taxable Exchange or Other Taxable Disposition of Our Common Shares*" below.

Dividends we pay to a U.S. Holder that is a taxable corporation generally will qualify for the dividends received deduction if the requisite holding period is satisfied. With certain exceptions and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. Holder may constitute "qualified dividend income" that will be subject to tax at the applicable tax rate accorded to long-term capital gains. If the holding period requirements are not satisfied, then a corporation may not be able to qualify for the dividends received deduction and would have taxable income equal to the entire dividend amount, and non-corporate holders may be subject to tax on such dividend at regular ordinary income tax rates instead of the preferential rate that applies to qualified dividend income. If a U.S. Holder is subject to Canadian withholding tax on dividends paid on the holder's securities to the U.S. Holder, the dividends will be considered U.S. source income, which could limit the ability of a U.S. Holder to claim a foreign tax credit for the Canadian withholding taxes imposed in respect of such a dividend. See "*U.S. Holders — Foreign Tax Credit Limitations*" below

#### Sale, Taxable Exchange or Other Taxable Disposition of Our Common Shares
Subject to the discussion below under "*U.S. Holders — Redemption of Our Common Shares*," upon a sale, taxable exchange or other taxable disposition of our Common Shares, a U.S. Holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. Holder's adjusted tax basis in such Common Shares. Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder's holding period for the Common Shares so disposed of exceeds one year. Long-term capital gains recognized by non-corporate U.S. Holders currently will be eligible to be taxed at reduced rates. The deductibility of capital losses is subject to limitations.

To the extent a U.S. Holder pays any Canadian tax on a sale, exchange or disposition of our Common Shares, a U.S. foreign tax credit may not be available. See "*U.S. Holders — Foreign Tax Credit Limitations*" below.

#### Foreign Tax Credit Limitations
Because the Company is subject to tax both as a U.S. domestic corporation and as a Canadian corporation, a U.S. Holder may pay, through withholding, Canadian tax, as well as U.S. federal income tax, with respect to dividends paid on its securities. For U.S. federal income tax purposes, a U.S. Holder may elect for any taxable year to receive either a credit or a deduction for all foreign income taxes paid by the holder during the year. Complex limitations apply to the foreign tax credit, including a general limitation that the credit cannot exceed the proportionate share of a taxpayer's U.S. federal income tax that the taxpayer's foreign source taxable income bears to the taxpayer's worldwide taxable income. In applying this limitation, items of income and deduction must be classified, under complex rules, as either foreign source or U.S. source.

The status of the Company as a U.S. domestic corporation for U.S. federal income tax purposes will cause dividends paid by the Company to be treated as U.S. source rather than foreign source income for this purpose. As a result, a foreign tax credit may be unavailable for any Canadian tax paid on dividends received from the Company. Similarly, to the extent a sale or disposition securities by a U.S. Holder results in Canadian tax payable by the U.S. Holder (for example, because the Common Shares constitute taxable Canadian property within the meaning of the Tax Act), a U.S. foreign tax credit may be unavailable to the U.S. Holder for such Canadian tax. In each case, however, the U.S. Holder may be able to take a deduction for the U.S. Holder's Canadian tax paid, provided that the U.S. Holder has not elected to credit other foreign taxes during the same taxable year. The foreign tax credit rules are complex, and each U.S. Holder should consult its own tax advisor regarding these rules.

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#### Information Reporting and Backup Withholding
In general, information reporting requirements may apply to dividends paid to a U.S. Holder and to the proceeds of the sale, taxable exchange or other taxable disposition of our Common Shares unless the U.S. Holder is an exempt recipient. Backup withholding may apply to such payments if the U.S. Holder fails to provide a taxpayer identification number, a certification of exempt status or has been notified by the IRS that it is subject to backup withholding (and such notification has not been withdrawn).

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a credit against a U.S. Holder's U.S. federal income tax liability and may entitle such holder to a refund, provided the required information is timely furnished to the IRS.

#### Non-U .S. Holders
This section applies to you if you are a "Non-U.S. Holder." As used herein, the term "Non-U.S. Holder" means a beneficial owner of our Common Shares that is for United States federal income tax purposes not a U.S. Holder, as defined above.

#### Taxation of Distributions
If we pay distributions in cash or other property (other than certain distributions of our Common Shares or rights to acquire our Common Shares) to Non-U.S. Holders of our Common Shares, such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the Non-U.S. Holder's adjusted tax basis in our Common Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the Common Shares and will be treated as described under "*Non*-U*.S. Holders — Sale, Taxable Exchange or Other Taxable Disposition of Our Common Shares*."

Subject to the discussions below on effectively connected income, dividends paid to a Non-U.S. Holder of our Common Shares will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder generally must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net basis at the regular graduated rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected dividends, as adjusted for certain items.

Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

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#### Sale, Taxable Exchange or Other Taxable Disposition of Our Common Shares
Subject to the discussion below under "*Non*-U*.S. Holders — Redemption of Our Common Shares*," a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale, taxable exchange or other taxable disposition of our Common Shares unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is attributable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Common Shares constitute a U.S. real property interest ("**USRPI**") by reason of our status as a U.S. real property holding corporation ("**USRPHC**") for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular graduated rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may be offset by U.S. source capital losses of the Non-U.S. Holder, provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe we currently are not, and do not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends, however, on the fair market value of our USRPIs relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance we currently are not a USRPHC or will not become one in the future. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition by a Non-U.S. Holder of our Common Shares will not be subject to U.S. federal income tax if our Common Shares are "regularly traded," as defined by applicable Treasury Regulations, on an established securities market, and such Non-U.S. Holder owned, actually and constructively, 5% or less of our Common Shares throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition and the Non-U.S. Holder's holding period.

Non-U.S. Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

#### Information Reporting and Backup Withholding
Payments of dividends on our Common Shares will not be subject to backup withholding, provided the applicable withholding agent does not have actual knowledge or reason to know the Non-U.S. Holder is a United States person and the Non-U.S. Holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS in connection with any dividends on our Common Shares paid to the Non-U.S. Holder, regardless of whether any tax was actually withheld. In addition, proceeds of the sale, taxable exchange or other taxable disposition of our Common Shares within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such Non-U.S. Holder is a United States person, or the Non-U.S. Holder otherwise establishes an exemption. Proceeds of a disposition of our Common Shares conducted through a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is established.

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Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

All Non-U.S. Holders should consult their tax advisors regarding the application of information reporting and backup withholding to them.

#### FATCA Withholding Taxes
Sections 1471 through 1474 of the Code and the Treasury Regulations and administrative guidance promulgated thereunder (commonly referred to as the "**Foreign Account Tax Compliance Act**" or "**FATCA**") generally impose withholding of 30% on payments of dividends (including constructive dividends) on our Common Shares to "foreign financial institutions" (which is broadly defined for this purpose and in general includes investment vehicles) and certain other non-U.S. entities unless various U.S. information reporting and due diligence requirements (generally relating to ownership by U.S. persons of interests in or accounts with those entities) have been satisfied by, or an exemption applies to, the payee (typically certified as to by the delivery of a properly completed IRS Form W-8BEN-E). The IRS has issued proposed regulations (on which taxpayers may rely until final regulations are issued) that provide that these withholding requirements would generally not apply to gross proceeds from sales or other dispositions of our Common Shares. However, there can be no assurance that final Treasury regulations will provide the same exceptions from FATCA withholding as the proposed Treasury regulations. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. Under certain circumstances, a Non-U.S. Holder might be eligible for refunds or credits of such withholding taxes, and a Non-U.S. Holder might be required to file a U.S. federal income tax return to claim such refunds or credits. Similarly, dividends in respect of our Common Shares held by an investor that is a non-financial non-U.S. entity that does not qualify under certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (1) certifies to us or the applicable withholding agent that such entity does not have any "substantial United States owners" or (2) provides certain information regarding the entity's "substantial United States owners," which will in turn be provided to the U.S. Department of Treasury. Prospective investors should consult their tax advisors regarding the effects of FATCA on their investment in our Common Shares.

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#### UNDERWRITING
ThinkEquity LLC is the representative for the several underwriters of this offering, or the representative. We have entered into an underwriting agreement dated , 2022, with the underwriters named below. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriters, and each underwriter has agreed, severally and not jointly, to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this Prospectus, the number of Common Shares at the initial public offering price, less the underwriting discounts and commissions, as set forth on the cover page of this Prospectus, the number of shares listed next to its name in the following table:

---

| | |
|:---|:---|
|  **Name** | **Number of <br>Common <br>Shares** |
|  ThinkEquity LLC |  |
|  **Total** |  |

---

The underwriters are committed to purchase all Common Shares offered by us other than those covered by the over-allotment option described below, if any are purchased. The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, the underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the Common Shares offered by us in this Prospectus are subject to various representations and warranties and other customary conditions specified in the underwriting agreement, such as receipt by the representative of officers' certificates and legal opinions.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect thereof.

The underwriters are offering the Common Shares subject to prior sale, when, as and if issued to and accepted by them, subject to approval of legal matters by its counsel and other conditions specified in the underwriting agreement. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

#### Over-Allotment Option
We have granted the underwriters an over-allotment option. This option, which is exercisable for up to 45 days after the date of this Prospectus, permits the underwriters to purchase up to an aggregate of additional Common Shares (equal to 15% of the Common Shares sold in this offering) at the public offering price per share, less underwriting discounts and commissions, solely to cover over-allotments, if any. If the underwriters exercise this option in whole or in part, then the underwriters will be committed, subject to the conditions described in the underwriting agreement, to purchase the additional Common Shares in proportion to their respective commitments set forth in the prior table.

#### Discounts, Commissions and Reimbursement
The representative has advised us that the underwriters propose to offer the shares to the public at the initial public offering price per share set forth on the cover page of this Prospectus. The underwriters may offer shares to securities dealers at that price less a concession of not more than $ per share. After the initial offering to the public, the public offering price and other selling terms may be changed by the representative.

The following table summarizes the underwriting discounts and commissions, non-accountable underwriters' expense allowance and proceeds, before expenses, to us assuming both no exercise and full exercise by the underwriters of their over-allotment option:

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total** | **Total** |
|  | **Per Share** | **Offering without <br>Over-Allotment <br>Option** | **Offering <br>with <br>Over-Allotment <br>Option** |
|  Public offering price | $| $| $|
|  Underwriting discounts and commissions (7.5%) |  |  |  |
|  Non-accountable expense allowance (1%) |  |  |  |
|  Proceeds, before expenses, to us | $| $| $|

---

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We have agreed to reimburse the representative for its out-of-pocket accountable expenses relating to this offering up to $40,000. We have agreed to pay an expense deposit of $40,000 to the representative of the underwriters upon execution of an engagement letter relating to this offering (the "Advance"), which will be applied against the actual out-of-pocket accountable expenses that will be incurred by the underwriters in connection with this offering, and will be reimbursed to us to the extent not incurred, of which $40,000 has been paid as of the date hereof.

In addition, we have agreed to pay a non-accountable expense allowance equal to 1.0% of the public offering price payable to the underwriters. We have also agreed to pay certain expenses of the representative in connection with this offering, including: (a) all filing fees and communication expenses associated with the review of this offering by the Financial Industry Regulatory Authority, Inc. ("FINRA"); (b) fees, expenses and disbursements relating to background checks of our officers and directors, in an amount not to exceed $15,000; (c) fees, expenses and disbursements relating to the registration, qualification or exemption of securities offered under the securities laws of such states and foreign jurisdictions designated by the representative; (d) fees and expenses of the representative's legal counsel, not to exceed $125,000 (e) $29,500 for costs and expenses for the underwriters' use of book-building, prospectus tracking and compliance software for this offering; (f) fees and expenses for data services and communications expenses; (g) the costs associated with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones, each of which the Company or its designee will provide within a reasonable time after the closing in such quantities as the representative may reasonably request, in an amount not to exceed $3,000; (h) $10,000 for data services and communications expenses; (i) up to $10,000 of the representative's actual accountable "road show" expenses; and (j) up to $30,000 of the representative's market making and trading, and clearing firm settlement expenses for the offering.

We estimate that the total expenses of this offering payable by us, not including underwriting discounts, commissions and expenses, will be approximately $.

#### Representative's Warrants
Upon the closing of this offering, we have agreed to issue to the representative warrants to purchase up to Common Shares equal in the aggregate to 5% of the total shares sold in this public offering (the "Representative's Warrants"). The Representative's Warrants will be exercisable at a per share exercise price equal to $, which represents 125% of the public offering price per share sold in this offering. The Representative's Warrants are exercisable at any time and from time to time, in whole or in part, during the four-and-½-year period commencing six months after the effective date of the registration statement related to this offering. The Representative's Warrants also provide for one demand registration right of the shares underlying the Representative's Warrants, and unlimited "piggyback" registration rights with respect to the registration of the shares of Common Shares underlying the Representative's Warrants and customary antidilution provisions. The demand registration right provided will not be greater than five years from the effective date of the registration statement related to this offering in compliance with FINRA Rule 5110(g)(8)(C). The piggyback registration right provided will not be greater than seven years from the effective date of the registration statement related to this offering in compliance with FINRA Rule 5110(g)(8)(D).

The Representative's Warrants and the Common Shares underlying the Representative's Warrants have been deemed compensation by the Financial Industry Regulatory Authority, or FINRA, and are therefore subject to a 180-day lock-up pursuant to Rule 5110(e)(1) of FINRA. The representative, or permitted assignees under such rule, may not sell, transfer, assign, pledge, or hypothecate the Representative's Warrants or the securities underlying the Representative's Warrants, nor will the representative engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the Representative's Warrants or the underlying shares for a period of 180 days from the effective date of the registration statement. Additionally, the Representative's Warrants may not be sold transferred, assigned, pledged or hypothecated for a 180-day period following the effective date of the registration statement except to any underwriter and selected dealer participating in the offering and their bona fide officers or partners. The Representative's Warrants will provide for adjustment in the number and price of the Representative's Warrants and the Common Shares underlying such Representative's Warrants in the event of recapitalization, merger, share split or other structural transaction, or a future financing undertaken by us.

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#### Right of First Refusal
Until fifteen (15) months from the closing of this offering, the representative shall have an irrevocable right of first refusal to act as sole investment banker, sole book-runner, sole financial advisor, sole underwriter and/or sole placement agent, at the representative's sole discretion, for each and every future public and private equity offerings for our company, or any successor to or any subsidiary of our company, including all equity linked financings, on terms customary to the representative. The representative shall have the sole right to determine whether or not any other broker-dealer shall have the right to participate in any such offering and the economic terms of any such participation. The representative will not have more than one opportunity to waive or terminate the right of first refusal in consideration of any such transaction.

#### Discretionary Accounts
The underwriters do not intend to confirm sales of the securities offered hereby to any accounts over which they have discretionary authority.

#### Lock-Up Agreements
We have agreed that for a period of six (6) months after the closing of this offering we (and any of our successors) will not, without the prior written consent of the representative and subject to certain exceptions, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• file or caused to be filed any registration statement with SEC relating to the offering of any Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complete any offering of our debt securities, other than entering into a line of credit with a traditional bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Common Shares, whether any such transaction is to be settled by delivery of Common Shares or such other securities, in cash or otherwise.

Additionally, we agreed that for a period of 24 months after the offering we will not directly or indirectly in any variable rate or equity line transaction, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares without the prior written consent of the representative.

In addition, each of our directors, officers and any other holder of outstanding Common Shares (or securities convertible into Common Shares, including options and warrants) as of the effective date of the registration statement have entered into customary "lock-up" agreements in favor of the representative pursuant to which such persons and entities have agreed, for a period of twelve (12) months from the date of the offering in the case of our directors and officers and six (6) months from the date of the offering in the case of any other holder of outstanding securities, that they will neither offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our securities without the representative's prior written consent.

#### Electronic Offer, Sale and Distribution of Securities
A prospectus in electronic format may be made available on the websites maintained by the underwriters or selling group members. The underwriters may agree to allocate a number of securities to selling group members for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members that will make internet distributions on the same basis as other allocations. Other than the Prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this Prospectus or the registration statement of which this Prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors.

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#### Stabilization

Stabilizing transactions permit bids to purchase shares so long as the stabilizing bids do not exceed a specified maximum, and are engaged in for the purpose of preventing or retarding a decline in the market price of the shares while this offering is in progress.

Over-allotment transactions involve sales by the underwriters of common shares in excess of the number of common shares the underwriters are obligated to purchase. This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short position, the number of common shares over-allotted by the underwriters are not greater than the number of common shares that they may purchase in the over-allotment option. In a naked short position, the number of common shares involved is greater than the number of common shares in the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or purchasing common shares in the open market.

Syndicate covering transactions involve purchases of common shares in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of common shares to close out the short position, the underwriters will consider, among other things, the price of common shares available for purchase in the open market as compared with the price at which it may purchase common shares through exercise of the over-allotment option. If the underwriters sell more common shares than could be covered by exercise of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying common shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there could be downward pressure on the price of the common shares in the open market that could adversely affect investors who purchase in this offering.

Penalty bids permit an underwriter to reclaim a selling concession from a syndicate member when the common shares originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Common Shares or preventing or retarding a decline in the market price of our Common Shares. As a result, the price of our Common Shares in the open market may be higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our Common Shares. These transactions may be effected in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.

#### Passive Market Making
In connection with this offering, underwriters and selling group members may engage in passive market making transactions in our Common Shares on in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the securities and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

#### Other Relationships
The underwriters and their affiliates may in the future provide various investment banking, commercial banking and other financial services for us and our affiliates for which they may in the future receive customary fees.

#### Offer Restrictions Outside The United States
Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this Prospectus in any jurisdiction where action for that purpose is required. The securities offered by this Prospectus may not be offered or sold, directly or indirectly, nor may this Prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and

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regulations of that jurisdiction. Persons into whose possession this Prospectus comes are advised to inform themselves about and to observe any restrictions relating to this offering and the distribution of this Prospectus. This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this Prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

#### Australia
This Prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this Prospectus is only made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this Prospectus is made available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this Prospectus.

#### China
The information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in the People's Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to "qualified domestic institutional investors."

#### European Economic Area — Belgium, Germany, Luxembourg and Netherlands
The information in this document has been prepared on the basis that no offers of securities will be in member states ("Member State") of the European Economic Area (the "EEA")other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to legal entities that are qualified investors as defined in the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to fewer than 150 natural or legal persons (other than qualified investors within the meaning of the Prospectus Regulation) subject to obtaining the prior consent of our company or any underwriter for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in any other circumstances falling within Article 1(4) of the Prospectus Regulation, provided that no such offer of securities shall result in a requirement for the publication by us of a prospectus pursuant to Article 3 of the Prospectus Directive.

This Prospectus has been prepared on the basis that any offer of common shares in any Member State of the EEA will be made pursuant to an exemption under the Prospectus Regulation from the requirement to publish a prospectus for offers of shares. Accordingly any person making or intending to make an offer in that Member State of our Common Shares which are the subject of the offering contemplated in this Prospectus supplement may only do so in circumstances in which no obligation arises for the Company or any of the Representatives to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation, in each case, in relation to such offer. Neither the Company nor the Representatives have authorized, nor do they authorize, the making of any offer of our Common Shares in circumstances in which an obligation arises for the Company or the Representatives to publish a prospectus for such offer.

For the purposes of this provision, the expression an "offer of our common shares to the public" in relation to any common shares in any Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the common shares to be offered so as to enable an investor to decide to purchase or subscribe the common shares, as the same may be varied in that Member State by any measure implementing the Prospectus Regulation in that Member State, the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

The above selling restriction is in addition to any other selling restrictions set out below.

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#### Notice to Prospective Investors in the United Kingdom
In relation to the United Kingdom, no offer of common shares which are the subject of the offering has been, or will be made to the public in the United Kingdom, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a qualified investor as defined in Article 2 of the UK Prospectus Regulation (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than qualified investors as defined in Article 2 of the UK Prospectus Regulation) in the United Kingdom subject to obtaining the prior consent of Representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within section 86 of the FSMA,

provided that no such offer of common shares shall require us or any underwriter to publish a prospectus pursuant to section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

In the United Kingdom, this Prospectus is not a prospectus for the purposes of the UK Prospectus Regulation (as defined below). This Prospectus has been prepared on the basis that any offer of common shares in the United Kingdom will be made pursuant to an exemption under the UK Prospectus Regulation from the requirement to publish a prospectus for offers of common shares. Accordingly any person making or intending to make an offer in the United Kingdom of common shares which are the subject of the offering contemplated in this Prospectus supplement may only do so in circumstances in which no obligation arises for us or any of the underwriters to publish a prospectus pursuant to Article 3 of the UK Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation, in each case, in relation to such offer. Neither us nor the underwriters have authorized, nor do they authorize, the making of any offer of common shares in circumstances in which an obligation arises for us or the underwriters to publish or supplement a prospectus for such offer.

For the purposes of this provision, the expression an "offer of our common shares to the public" in relation to any of our Common Shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and the common shares to be offered so as to enable an investor to decide to purchase or subscribe to the common shares, as the same may be varied in United Kingdom by any measure implementing the UK Prospectus Regulation, the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

The communication of prospectus and any other document or materials relating to the issue of the common shares offered hereby is not being made, and such documents and/or materials have not been approved, by an authorized person for the purposes of section 21 of the United Kingdom's Financial Services and Markets Act 2000, as amended (the "FSMA"). Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom (i) who have professional experience in matters relating to investments falling within Article 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") and/or (ii) who are high net worth companies (or persons to whom it may otherwise be lawfully communicated) falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). This document must not be acted on or relied on in the United Kingdom by persons who are not relevant persons. In the United Kingdom, any investment or investment activity to which this document relates is only available to, and will be engaged in with, relevant persons.

Any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) in connection with the issue or sale of common shares may only be communicated or caused to be communicated in circumstances in which Section 21(1) of the FSMA does not apply to us.

All applicable provisions of the FSMA must be complied with in respect to anything done by any person in relation to the common shares in, from or otherwise involving the United Kingdom.

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#### France
This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code monétaire et financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité des marchés financiers, or AMF. The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.

This document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.

Such offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifiés) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-1 to D.411-3, D. 744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number of non-qualified investors (cercle restreint d'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-4, D.744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation.

Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French Monetary and Financial Code.

#### Ireland
The information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005, or the Prospectus Regulations. The securities have not been offered or sold, and will not be offered, sold or delivered directly or indirectly in Ireland by way of a public offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus Regulations and (ii) fewer than 100 natural or legal persons who are not qualified investors.

#### Israel
The securities offered by this Prospectus have not been approved or disapproved by the Israeli Securities Authority, or the ISA, nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection with this offering or publishing the Prospectus; nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered by this Prospectus is subject to restrictions on transferability and must be effected only in compliance with the Israeli securities laws and regulations.

#### Italy
The offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Società e la Borsa), or CONSOB, pursuant to the Italian securities legislation and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to Italian qualified investors, or Qualified Investors, as defined in Article 100 of Decree no.58 by reference to Article 34-ter of CONSOB Regulation no. 11971 of 14 May 1999, or Regulation no. 1197l, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in other circumstances that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of Regulation No. 11971 as amended.

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Any offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No. 385 of 1 September 1993 (as amended), Decree No.58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.

Any subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and the Regulation No. 11971 as amended, unless an exception from those rules applies. Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities for any damages suffered by the investors.

#### Japan
The securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended, or the FIEL, pursuant to an exemption from the registration requirements applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article2, paragraph 3 of the FIEL and the regulations promulgated thereunder). Accordingly, the securities may not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors. Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to that effect.

#### Portugal
This document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities Market Commission (Comissăo do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

#### Sweden
This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

#### Switzerland
The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or SIX, or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the

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listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority.

This document is personal to the recipient only and not for general circulation in Switzerland.

#### United Arab Emirates
Neither this document nor the securities have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates, nor have we received authorization or licensing from the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates to market or sell the securities within the United Arab Emirates. This document does not constitute and may not be used for the purpose of an offer or invitation. No services relating to the securities, including the receipt of applications and/or the allotment or redemption of such shares, may be rendered within the United Arab Emirates by us.

No offer or invitation to subscribe for securities is valid or permitted in the Dubai International Financial Centre.

#### Canada
The securities may be sold in Canada only to purchasers, purchasing, or deemed to be purchasing, as principal, that are accredited investors, as defined in National Instrument 45-106 *Prospectus Exemptions* or subsection 73.3(1) of the Securities Act (Ontario). Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable Canadian securities laws. Canadian purchasers should refer to any applicable provisions of the securities legislation of their province or territory for particulars of these rights or consult with a legal advisor.

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#### EXPENSES RELATED TO THE OFFERING
The following table sets forth the costs and expenses, other than the underwriting discounts and commissions and expenses, payable in connection with this Offering. All amounts shown are estimates and subject to future contingencies, except the SEC registration fee, the Financial Industry Regulatory Authority filing fee, and entry and listing fee.

---

| | |
|:---|:---|
|  **Description** | **Amount** |
|  SEC registration fee | $|
|  FINRA filing fee |  |
|  listing fee |  |
|  Accounting and Audit fees and expenses |  |
|  Legal fees and expenses |  |
|  Transfer agent fees and expenses |  |
|  Printing fees and expenses |  |
|  Miscellaneous |  |
| &nbsp;&nbsp;&nbsp; **Total** | $|

---

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#### LEGAL MATTERS
We are being represented by Rimon, P.C., with respect to certain legal matters as to United States federal securities law. The underwriters are being represented by Clark Wilson LLP, with respect to certain legal matters as to United States federal securities law. The validity of the Common Shares offered in this offering and certain legal matters as to Canadian law will be passed upon for us by Aird & Berlis LLP.

#### EXPERTS
MNP LLP, an independent registered public accounting firm, has audited our consolidated financial statements as of, and for the years ended, December 31, 2021 and 2020, as set forth in their report thereon. We have included such consolidated financial statements in this Prospectus in reliance on the report of such firm given on their authority as experts in accounting and auditing. MNP is independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB on auditor independence. MNP's headquarters are located at 111 Richmond Street West, Suit 300, Toronto, ON, M5H 2G4.

#### ENFORCEABILITY OF CIVIL LIABILITIES
We are a corporation organized under the laws of the Province of British Columbia, Canada. Most of our directors and executive officers reside in Canada, and significantly all of our assets and the assets of such persons are located outside of the United States. As a result, it may not be possible for investors to effect service of process within the United States upon these persons or us, or to enforce against them or us judgments obtained in U.S. courts, whether or not predicated upon the civil liability provisions of the federal securities laws of the United States or of the securities laws of any state of the United States. There is doubt as to the enforceability in Canada, either in original actions or in actions for enforcement of judgments of U.S. courts, of civil liabilities predicated solely on the federal securities laws of the United States or the securities laws of any state of the United States.

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#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed with the U.S. Securities and Exchange Commission (the "**SEC**") a registration statement on Form F-1 under the Securities Act relating to the securities we are offering to sell. This Prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules which are part of the registration statement. Some items included in the registration statement have been omitted from this Prospectus in accordance with the rules and regulations of the SEC. For further with respect to us and our securities, we refer you to the registration statement, including all amendments, supplements, exhibits, and schedules thereto. Statements contained in this Prospectus regarding the contents of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement, please see a copy of such contract or document that has been filed. Each statement in this Prospectus relating to a contract or document that is filed as an exhibit to the registration statement is qualified in all respects by reference to the full text of such contract or document filed as an exhibit to the registration statement.

You may access and read the registration statement and this Prospectus, including the related exhibits and schedules, and any document we file with the SEC at the SEC's Internet website that contains reports and other information regarding issuers that file electronically with the SEC. Our filings with the SEC are available to the public without charge through the SEC's website at *http://www.sec.gov*.

Upon completion of this Offering, we will be subject to the information reporting requirements of the Exchange Act, that are applicable to "foreign private issuers," and under those requirements will file reports with the SEC. Those other reports or other information may be inspected without charge at the locations described above. As a "foreign private issuer," we will be exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements, and our officers, directors, and principal shareholders will be exempt from the reporting and "short-swing" profit recovery provisions contained in Section 16 of the Exchange Act with respect to their purchases and sales of common shares. Furthermore, as a "foreign private issuer," we are also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act. In addition, we will not be required under the Exchange Act to file annual or other reports and financial statements with the SEC as frequently or as promptly as U.S. companies that have securities registered under the Exchange Act. As such, we will file with the SEC, within 120 days after the end of each fiscal year, or such other applicable time as required by the SEC, an annual report on Form 20-F containing financial statements audited by an independent registered public accounting firm. We also intend to furnish to the SEC under cover of Form 6-K certain other material information. Our corporate website is *www.modernmining.com*. After the consummation of this Offering, you may go to our website to access our periodic reports and other information that we file with the SEC as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not incorporated by reference into, and is not a part of, this Prospectus. We have included our website address in this Prospectus solely for informational purposes.

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#### INDEX TO FINANCIAL STATEMENTS

#### MODERN MINING TECHNOLOGY CORP.

---

| | |
|:---|:---|
|  | **Page** |
|  **Audited Financial Statements of Modern Mining Technology Corp. for the Years Ended December 31, 2021 and 2020 (Expressed in United States Dollars)** |  |
|  [Independent Auditor's Report](#T71) | F-3 |
|  [Statement of Financial Position as of December 31, 2021 and 2020](#T72) | F-4 |
|  [Statement of Loss and Comprehensive Loss for the Years Ended December 31, 2021 and 2020](#T73) | F-5 |
|  [Statement of Changes in Shareholders' Equity for the Years Ended December 31, 2021 and 2020](#T74) | F-6 |
|  [Statement of Cash Flows for the Years Ended December 31, 2021 and 2020](#T75) | F-7 |
|  [Notes to the Audited Financial Statements for the Years Ended December 31, 2021 and 2020](#T77) | F-8 |

---

---

| | |
|:---|:---|
|  **Consolidated Financial Statements of Modern Mining Technology Corp. (unaudited) for the <br>Six-Month Periods ended June 30, 2022 and 2021** |  |
|  [Condensed Consolidated Interim Statements of Financial Position](#T9881) | F-31 |
|  [Condensed Consolidated Interim Statements of Loss and Comprehensive Loss](#T9882) | F-32 |
|  [Condensed Consolidated Interim Statements of Changes in Equity](#T9883) | F-33 |
|  [Condensed Consolidated Interim Statements of Cash Flows](#T9884) | F-34 |
|  [Notes to the Condensed Consolidated Interim Financial Statements](#T9885) | F-35 |

---

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#### Modern Mining Technology Corp.

#### Consolidated Financial Statements

#### THE YEARS ENDED 31 DECEMBER 2021 AND 2020

------

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#### Independent Auditor's Report
To the Board of Directors and Shareholders of Modern Mining Technology Corp.

#### Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statements of financial position of Modern Mining Technology Corp. (the Company) as of December 31, 2021 and 2020, and the related consolidated statements of loss and comprehensive loss, statements of equity, and cash flows for the years ended December 31, 2021 and 2020, and the related notes (collectively referred to as the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2021 and 2020, and the results of its consolidated operations and its consolidated cash flows for the years ended December 31, 2021 and 2020, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

#### Material Uncertainty Related to Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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

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

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

#### Critical Audit Matters
Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.

We have served as the Company's auditor since 2021.

---

| | |
|:---|:---|
|  | ![](tmnp_sig.jpg) |
|  Toronto, Canada | Chartered Professional Accountants |
|  July 5, 2022 | Licensed Public Accountants |

---

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#### MODERN MINING TECHNOLOGY CORP.<br>US Dollars<br>CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **As at <br>31 December <br>2021** | **As at <br>31 December <br>2020** |
|  **Assets** |  |  |  |
|  **Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | $**414047** | $98579 |
| &nbsp;&nbsp;&nbsp; Trust account | (16) | **885391** |  |
| &nbsp;&nbsp;&nbsp; Goods and services tax receivable |  | **13033** |  |
| &nbsp;&nbsp;&nbsp; Prepaid expenses | (8) | **1701** | 15331 |
|  **Total Current Assets** |  | **1314172** | 113910 |
|  **Non-current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp; Property and equipment, net | (9) | **—** | 361619 |
| &nbsp;&nbsp;&nbsp; Right-of-use asset | (15) | **—** | 771320 |
| &nbsp;&nbsp;&nbsp; Security deposit | (10) | **—** | 9000 |
|  **Total Assets** |  | $**1314172** | $1255849 |
|  **Liabilities** |  |  |  |
|  **Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (17) | $**651744** | $28110 |
| &nbsp;&nbsp;&nbsp; Trust liability | (16) | **885391** |  |
| &nbsp;&nbsp;&nbsp; Loan payable | (14) | **61000** | 61000 |
| &nbsp;&nbsp;&nbsp; Grant payable | (12) | **15000** | 20000 |
| &nbsp;&nbsp;&nbsp; Lease liability – current | (15) | **—** | 142213 |
| &nbsp;&nbsp;&nbsp; Short-term loans | (13) | **277331** |  |
|  |  | **1890466** | 251323 |
|  **Non-current Liabilities** |  |  |  |
|  Lease liability – non-current | (15) | **—** | 641766 |
|  **Total Liabilities** |  | $**1890466** | $893089 |
|  **Equity (Deficit)** |  |  |  |
| &nbsp;&nbsp;&nbsp; Share capital | (16) | **2822311** | 1838628 |
| &nbsp;&nbsp;&nbsp; Contributed surplus – warrants |  | **264665** | 111500 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income ("OCI") |  | **10469** |  |
| &nbsp;&nbsp;&nbsp; Accumulated deficit |  | **(3673739)** | (1587368) |
| &nbsp;&nbsp;&nbsp; **Total Equity (Deficit)** |  | **(576294)** | 362760 |
|  |  | $**1314172** | $1255849 |

---

<u> Nature of operations and going concern </u>   <u> (1) </u>   <u> Capital management </u>   <u> (19 </u> <u>) </u> <br> <u> Commitments </u>   <u> (21) </u>   <u> Subsequent events </u>   <u> (22 </u> <u>) </u>

The Consolidated Financial Statements were approved by the Board of Directors on 5 July 2022 and were signed on its behalf by:

<u> "Signed" </u>       <u> "Signed" </u> <br> <u> Sean Bromley, Director </u>       <u> Michael Hepworth, Director </u>

The accompanying notes form an integral part of the consolidated financial statements

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#### MODERN MINING TECHNOLOGY CORP.<br>US Dollars <br> CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **Year Ended <br>31 December <br>2021** | **Year Ended <br>31 December <br>2020** |
|  **Revenue** |  | $**—** | $23586 |
|  Cost of sales |  | **—** | 51222 |
|  Gross loss |  | **—** | (27636) |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp; Professional fees |  | $**535161** | $64298 |
| &nbsp;&nbsp;&nbsp; Employee cost |  | **358996** | 168674 |
| &nbsp;&nbsp;&nbsp; Share-based compensation | (16) | **310950** | 210050 |
| &nbsp;&nbsp;&nbsp; Management and director fees |  | **149661** |  |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use asset | (15) | **124665** | 148559 |
| &nbsp;&nbsp;&nbsp; General and administration |  | **75227** | 85645 |
| &nbsp;&nbsp;&nbsp; Depreciation expense | (9) | **66871** | 76187 |
| &nbsp;&nbsp;&nbsp; Rental |  | **47618** |  |
| &nbsp;&nbsp;&nbsp; Consulting fees |  | **26724** | 39481 |
| &nbsp;&nbsp;&nbsp; Insurance |  | **26701** | 24523 |
| &nbsp;&nbsp;&nbsp; Travel and entertainment |  | **26577** | 5751 |
| &nbsp;&nbsp;&nbsp; Research and development |  | **13548** | 62023 |
| &nbsp;&nbsp;&nbsp; Loss from foreign exchange  |  | **5380** | 18 |
|  **Total Operating Expenses** |  | **1768079** | 885208 |
|  **Loss from Continuing Operations** |  | $**(1768079)** | $(912844) |
|  **Other Income (Expense)** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gain on lease modification/termination | (15) | **19889** | 103046 |
| &nbsp;&nbsp;&nbsp; Other income from the grant | (12) | **5000** | 5000 |
| &nbsp;&nbsp;&nbsp; Interest income |  | **202** | (432) |
| &nbsp;&nbsp;&nbsp; Impairment of equipment | (9) | **(294748)** |  |
| &nbsp;&nbsp;&nbsp; Finance cost |  | **(36354)** | (67995) |
| &nbsp;&nbsp;&nbsp; Interest on short-term loans |  | **(12281)** |  |
| &nbsp;&nbsp;&nbsp; Forgiveness of debt | (11) |  | 183187 |
|  |  | **(318292)** | 222805 |
|  **Net Loss for the Year** |  | $**(2086371)** | $(690039) |
|  **Other Comprehensive Income (Loss)** |  |  |  |
| &nbsp;&nbsp;&nbsp; **Foreign operations – foreign exchange** |  | **10469** |  |
|  **Comprehensive Loss for the Year** |  | $**(2086371)** | $(690039) |
|  **Basic and Diluted Loss per Share** |  | $**(0.28)** | $(0.18) |
|  **Weighted Average Shares Outstanding** |  | **7412236** | 3832730 |

---

The accompanying notes form an integral part of the consolidated financial statements

[**Table of Contents**](#TOC001)

#### MODERN MINING TECHNOLOGY CORP.<br>Audited <br>US Dollars<br>CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common <br>Shares\*** | **Common <br>Shares <br>Amount** | **Preferred <br>Shares <br>Amount** | **Contributed <br>Surplus** | **Accumulated <br>OCI** | **Accumulated <br>Deficit** | **Shareholders' <br>Equity <br>(Deficit)** |
|  **Balance as at 31 December 2019** | 1416667 | $425 | $917457 | $— | $— | $(897329) | $20553 |
| &nbsp;&nbsp;&nbsp; Issuance of preferred shares |  |  | 226751 |  |  |  | 226751 |
| &nbsp;&nbsp;&nbsp; Preferred shares converted 1:1 | 712356 | 1144208 | (1144208) |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Issuance of common shares @ $0.15 | 3476667 | 410000 |  | 111500 |  |  | 521500 |
| &nbsp;&nbsp;&nbsp; Share based compensation | 1381999 | 210050 |  |  |  |  | 210050 |
| &nbsp;&nbsp;&nbsp; Employee grant | 36667 | 2750 |  |  |  |  | 2750 |
| &nbsp;&nbsp;&nbsp; Shares issued to settle debt | 196233 | 87613 |  |  |  |  | 87613 |
| &nbsp;&nbsp;&nbsp; Share redemption | (830138) | (50000) |  |  |  |  | (50000) |
| &nbsp;&nbsp;&nbsp; Issuance of shares @ $0.45 | 74851 | 33582 |  |  |  |  | 33582 |
| &nbsp;&nbsp;&nbsp; Net loss for the year |  |  |  |  |  | (690039) | (690039) |
|  **Balance as at 31 December 2020** | **6465302** | $**1838628** | $**—** | $**111500** | $**—** | **(1587368**) | $**362760** |
| &nbsp;&nbsp;&nbsp; Issuance of common shares @ $0.45 | **133333** | **44200** | **—** | **15800** | **—** | **—** | **60000** |
| &nbsp;&nbsp;&nbsp; Share based compensation | **691000** | **310950** | **—** | **—** | **—** | **—** | **310950** |
| &nbsp;&nbsp;&nbsp; Warrants issued @ $0.0083 | **—** | **—** | **—** | **137365** | **—** | **—** | **137365** |
| &nbsp;&nbsp;&nbsp; Issuance of common shares @ $0.50 | **1270149** | **635075** | **—** | **—** | **—** | **—** | **635075** |
| &nbsp;&nbsp;&nbsp; Share issuance cost | **—** | **(6542**) | **—** | **—** | **—** | **—** | **(6542**) |
| &nbsp;&nbsp;&nbsp; Other comprehensive income | **—** | **—** | **—** | **—** | **10469** | **—** | **10469** |
| &nbsp;&nbsp;&nbsp; Net loss for the year | **—** | **—** | **—** | **—** | **—** | **(2086371**) | **(2086371**) |
|  **Balance as at 31 December 2021** | **8559784** | $**2822311** | $**—** | $**264665** | $**10469** | $**(3673739**) | $**(576294**) |

---

____________

\* Prior to the Merger Transaction, UMI elected a share consolidation prior to the Acquisition on the basis of one (1) post-consolidation Common Share for every three (3) outstanding Common Shares existing immediately before the consolidation; 21,868,905 shares outstanding were re-issued as 7,289,635 common shares post-consolidation. All comparative information has been adjusted to reflect the share consolidation.

The accompanying notes form an integral part of the consolidated financial statements.

[**Table of Contents**](#TOC001)

#### MODERN MINING TECHNOLOGY CORP.<br>US Dollars<br>CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **Year ended <br>31 December <br>2021** | **Year ended <br>31 December <br>2020** |
|  **Operative Activities** |  |  |  |
|  **Net Loss for the Year** |  | $**(2086371)** | $(690039) |
|  **Items not Affecting Cash** |  |  |  |
| &nbsp;&nbsp;&nbsp; Share- based compensation | (16) | **310950** | 210050 |
| &nbsp;&nbsp;&nbsp; Impairment of equipment | (9) | **294748** |  |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use asset | (15) | **124665** | 148559 |
| &nbsp;&nbsp;&nbsp; Depreciation expense | (9) | **66871** | 76187 |
| &nbsp;&nbsp;&nbsp; Interest on lease liability |  | **36595** | 67995 |
| &nbsp;&nbsp;&nbsp; Gain on lease modification/termination | (15) | **(19889)** | (103046) |
| &nbsp;&nbsp;&nbsp; Interest on short-term loans |  | **12281** |  |
| &nbsp;&nbsp;&nbsp; Other income from the grant | (12) | **(5000)** | (5000) |
| &nbsp;&nbsp;&nbsp; Employee grant |  |  | 2750 |
| &nbsp;&nbsp;&nbsp; Foreign exchange |  | **9151** | (4229) |
| &nbsp;&nbsp;&nbsp; Forgiveness of debt | (11) |  | 183187 |
|  |  | **830372** | 576453 |
|  |  | **(1255999)** | (113586) |
|  **Net Change in Non-cash Working Capital** |  |  |  |
| &nbsp;&nbsp;&nbsp; Goods and services tax receivable |  | **(13033)** |  |
| &nbsp;&nbsp;&nbsp; Prepaid expenses |  | **13630** | (15331) |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities |  | **632634** | (138565) |
|  **Cash Used in Operating Activities** |  | **(622768)** | (267482) |
|  **Investing Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Purchase of property and equipment | (9) | **—** | (142136) |
|  **Cash (Used in) Investing Activities** |  | **—** | (142136) |
|  **Financing Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Issuance of common shares | (16) | **695075** | 555129 |
| &nbsp;&nbsp;&nbsp; Short-term loans received |  | **265050** |  |
| &nbsp;&nbsp;&nbsp; Warrants issued |  | **137365** |  |
| &nbsp;&nbsp;&nbsp; Share issuance cost |  | **(6542)** |  |
| &nbsp;&nbsp;&nbsp; Lease payments |  | **(154030)** | (251173) |
| &nbsp;&nbsp;&nbsp; Share redemption |  | **—** | (50000) |
| &nbsp;&nbsp;&nbsp; Issuance of preferred shares |  | **—** | 226751 |
| &nbsp;&nbsp;&nbsp; Equipment grant received | (12) | **—** | 25000 |
|  **Cash Provided by Financing Activities** |  | **936918** | 505707 |
|  **Net effect of foreign currency translation** |  | **1318** |  |
|  **Net Increase in Cash** |  | **315468** | 96089 |
| &nbsp;&nbsp;&nbsp; Cash Position – Beginning of Year |  | **98579** | 2490 |
|  **Cash Position – End of Year** |  | $**414047** | $98579 |
|  **Supplementary Disclosure of Cash Flow Information** |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares issued for debt |  | $**—** | $87613 |
| &nbsp;&nbsp;&nbsp; Advances received in trust |  | $**885391** | $— |

---

The accompanying notes form an integral part of the consolidated financial statements

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 1) Nature of operations and going concern
Modern Mining Technology Corp. (the "Company" or "MMTC") was incorporated under British Columbia Business Corporations Act on 26 January 2021. The Company's registered office is held at Suite 1001, 409 Granville Street, Vancouver, BC V6C 1T2, Canada.

On 19 August 2021, the Company and Urban Mining International, Inc. ("UMI") entered into a merger agreement (the "Merger Agreement"), providing for the acquisition of all the issued and outstanding common shares of UMI by the Company (the "Merger Transaction"). Pursuant to the merger transaction, UMI and Urban Mining Merger Sub, Inc. (a Delaware subsidiary of the Company, created for the merger transaction) amalgamated and continued under the name of UMI. The Merger Transaction closed on 1 September 2021. The Consolidated Statements of Financial Position are presented as a continuance of UMI and comparative figures presented in these Consolidated Financial Statements are those of UMI. Subsequently, the Company changed its name to Modern Mining Technology Corp. as of 8 December 2021 (Note 7).

UMI was incorporated in the State of Delaware, USA on 8 August 2017 for the purpose of refining precious metals from electronic waste. UMI's principal operating facility is now located in Greenville, NC.

These Consolidated Financial Statements (the "Financial Statements") have been prepared on the basis of the accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. There are several adverse conditions that cast significant doubt upon the soundness of this assumption. These financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations.

Management believes that the Company's ability to continue as a going concern is dependent on its ability to raise additional capital. There cannot be any assurance that the Company will ever generate additional revenue or even if it does generate revenue that it will achieve profitable operations. Furthermore, no assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on the Company's operations, in the case of debt financing, or cause substantial dilution for the existing shareholders, in case of equity financing. These factors represent material uncertainties that cast substantial doubt about its ability to continue as a going concern.

These Financial Statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and thus be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in these financial statements.

---

| | | |
|:---|:---|:---|
|  **(Rounded)** | **31 December<br> 2021** | **31 December<br> 2020** |
|  Working capital deficit | $**(576000)** | $(137000) |
|  Accumulated deficit | $**(3674000)** | $(1587000) |

---

During 2020, the global outbreak of COVID-19 ensued, which has had a significant impact on organizations through the restrictions put in place by Canadian, US, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. At this time, although the Company's operations have not been drastically affected by COVID-19, it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place by Canada, US and other countries to fight the virus.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 2) Basis of presentation — Statement of Compliance
These Consolidated Financial Statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Consolidated Financial Statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these Consolidated Financial Statements have been prepared using the accrual basis of accounting except for cash flow information.

#### 3) Summary of significant accounting policies
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Basis of presentation**

These consolidated Financial Statements incorporate the financial statements of the Company and the entities controlled by the Company, which consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Modern Mining Technology Corp., which was incorporated on 26 January 2021 in the province of British Columbia, Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Modern Mining Technology Corp., ("MMTC Delaware"), formerly known as UMI, which was incorporated on 8 August 2017 in the state of Delaware in the United States, wholly owned by the Company.

Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial activity of subsidiaries are included in these Financial Statements from the date that control commences until the date that control ceases. All significant intercompany transactions and balances have been eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Foreign Currency**

These consolidated Financial Statements are presented in the U.S. dollar ("US$"). The functional and reporting currency for the Company is the Canadian dollar. The functional and reporting currency of UMI is the US$. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates.

Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the "Functional Currency"). Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of the reporting period, monetary assets and liabilities of the Company which are denominated in foreign currencies are translated at the period-end exchange rate. Non-monetary assets and liabilities are translated at rates in effect at the date the assets were acquired, and liabilities incurred. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities not denominated in the Functional Currency of an entity are recognized in profit or loss in the year in which the gain or loss arises.

Assets and liabilities of operations with a functional currency other than the US$ are translated at the reporting period end rates of exchange, and the results of its operations are translated at average rates of exchange for the year. The resulting translation adjustments are recognized in other comprehensive (loss) Income. Additionally, foreign exchange gains and losses related to certain intercompany amounts that are neither planned nor likely to be settled in the foreseeable future are included in other comprehensive (loss) Income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) Income taxes**

Income tax expense consists of current and deferred tax expense. Income tax expense is recognized in the consolidated statement of loss and comprehensive loss, except to the extent that it relates directly to equity.

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates and laws enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 3) Summary of significant accounting policies (cont.)
Deferred tax assets and liabilities are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured on a non-discounted basis using the enacted or substantively enacted tax rates at the end of the year, and which are expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that enactment or substantive enactment occurs.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d) Income (Loss) per share**

The Company presents basic and diluted loss per share data for its ordinary shares. Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of the Company by the weighted average number of common and proportionate voting shares outstanding during the period. Diluted loss earnings per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common and proportionate voting shares outstanding, adjusted for the effects of all dilutive potential common and proportionate voting shares. Proportionate voting shares are converted to their common share equivalent of one thousand common shares for every one proportionate voting share for the purposes of calculating basic and diluted loss per share. In a period of losses, the options are excluded in the determination of dilutive net loss per share because their effect is antidilutive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e) Government grants**

Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f) Cash and cash equivalents**

Cash and cash equivalents include cash on hand, deposits held with banks, and redeemable term deposits. Where term deposits held with banks have a maturity in excess of three months, but are redeemable without principal penalty, they will be classified as cash equivalents. There are no cash equivalents as at 31 December 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g) Accounts receivable**

Accounts receivable are carried at the original invoiced amount less credit losses. For accounts receivable only, the Company applies the simplified approach as permitted by IFRS 9. The simplified approach to the recognition of expected losses does not require the Company to track the changes in credit risk; rather, from the dates of the trade receivables, the Company assesses whether a loss allowance is needed based on lifetime expected credit losses at each reporting date.

Expected credit losses are measured as the difference in the present value of the contractual cash flows that are due to the Company under the contract, and the cash flows that the Company expects to receive. The Company assesses all information available, including past due status, credit ratings, the existence of third-party insurance, and

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 3) Summary of significant accounting policies (cont.)
forward-looking macro-economic factors in the measurement of the expected credit losses associated with its assets carried at amortized cost. The Company measures expected credit loss by considering the risk of default over the contract period and incorporates forward-looking information into its measurement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**h) Property and equipment**

Property and equipment are initially recorded at cost. As assets are available for use, they are amortized over their estimated useful lives on a straight-line basis at the following rates: equipment 5 years; leasehold improvements 5 years. The depreciation method, useful life and residual values are assessed annually.

In determining amounts of amortization and depreciation the Company is required to estimates how long the assets will be available for use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i) Leases**

The Company has accounted for leases in accordance with IFRS 16. Contract arrangements are reviewed to determine if the agreement includes identifiable assets that the Company has the right to obtain sustainably all the economic benefits from the use of the asset during the period of use.

A right-of-use asset and lease liability are recognized at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate.

A change in the scope of a lease contract, or the consideration for a lease, that was not part of its original terms and conditions is considered a lease modification. A lease modification is assessed to determine whether it meets the criteria of a separate lease that would require a separate right-of-use asset and a corresponding lease liability at the effective date of the modification. If the lease modification is not a separate lease, the Company remeasures the lease liability to reflect changes to the lease payments and adjusts the carrying amount of the right-of-use asset.

On transition to IFRS 16, the Company recognized right-of-use assets and a lease liability. The impact on transition is summarized below as of January 1, 2019:

---

| | |
|:---|:---|
|  Right-of-use assets | $1463818 |
|  Lease liability | $1463818 |

---

See (Note 15) for details of the leases entered into by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**j) Impairment**

At the end of each reporting period the carrying amounts of the Company' assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 3) Summary of significant accounting policies (cont.)
estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

Where an impairment subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate and its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**k) Financial instruments**

<u>***<u>Financial Assets</u>***</u>

#### Recognition and initial measurement
The Company recognizes financial assets when it becomes party to the contractual provisions of the instrument. Financial assets are measured initially at their fair value plus, in the case of financial assets not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Transaction costs attributable to the acquisition of financial assets subsequently measured at fair value through profit or loss are expensed in profit or loss when incurred.

#### Classification and subsequent measurement
On initial recognition, financial assets are classified as subsequently measured at amortized cost, fair value through other comprehensive (loss) income ("FVOCI") or fair value through profit or loss ("FVTPL"). The Company determines the classification of its financial assets, together with any embedded derivatives, based on the business model for managing the financial assets and their contractual cash flow characteristics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**j) Financial instruments**

Subsequent to initial recognition, all financial liabilities are measured at amortized cost using the effective interest rate method. Interest, gains and losses relating to a financial liability are recognized in profit or loss.

The financial instruments of the Company are classified as follows:

---

| | | |
|:---|:---|:---|
|  | **IFRS 9** | **IFRS 9** |
|  | **Classification** | **Measurement** |
|  Cash and cash equivalent | Amortized cost | Amortized cost |
|  Security deposit | Amortized cost | Amortized cost |
|  Accounts payable and accrued liabilities | Other financial liabilities | Amortized cost |
|  Loan payable | Other financial liabilities | Amortized cost |
|  Short-term loans | Other financial liabilities | Amortized cost |

---

Financial assets are classified as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amortized cost — Assets that are held for collection of contractual cash flows where those cash flows are solely payments of principal and interest are measured at amortized cost. Interest revenue is calculated using the effective interest method and gains or losses arising from impairment, foreign exchange and derecognition are recognized in profit or loss. Financial assets measured at amortized cost are comprised of cash and cash equivalent.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 3) Summary of significant accounting policies (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair value through other comprehensive (loss) income — Assets that are held for collection of contractual cash flows and for selling the financial assets, and for which the contractual cash flows are solely payments of principal and interest, are measured at fair value through other comprehensive (loss) income. Interest income calculated using the effective interest method and gains or losses arising from impairment and foreign exchange are recognized in profit or loss. All other changes in the carrying amount of the financial assets are recognized in other comprehensive (loss) income. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive (loss) income is reclassified to profit or loss. The Company does not hold any financial assets measured at fair value through other comprehensive (loss) income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mandatorily at fair value through profit or loss — Assets that do not meet the criteria to be measured at amortized cost, or fair value through other comprehensive (loss) income, are measured at fair value through profit or loss. All interest income and changes in the financial assets' carrying amount are recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Designated at fair value through profit or loss — On initial recognition, the Company may irrevocably designate a financial asset to be measured at fair value through profit or loss in order to eliminate or significantly reduce an accounting mismatch that would otherwise arise from measuring assets or liabilities, or recognizing the gains and losses on them, on different bases. All interest income and changes in the financial assets' carrying amount are recognized in profit or loss. The Company does not hold any financial assets designated to be measured at fair value through profit or loss.

#### Definition of default
The Company considers a financial instrument defaulted and therefore Stage 3 (credit-impaired) for ECL calculations in all cases when the borrower becomes 90 days past due on its contractual payments. In certain other cases, where qualitative thresholds indicate unlikeliness to pay as a result of a credit event, the Company carefully considers whether the event should result in an assessment at Stage 2 or 3 for ECL calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**k) Financial instruments**

The Company applies the simplified approach for accounts receivable. Using the simplified approach, the Company records a loss allowance equal to the expected credit losses resulting from all possible default events over the assets' contractual lifetime.

The Company assesses whether a financial asset is credit-impaired at the reporting date. Regular indicators that a financial instrument is credit-impaired include significant financial difficulties as evidenced through borrowing patterns or observed balances in other accounts and breaches of borrowing contracts such as default events or breaches of borrowing covenants. For financial assets assessed as credit-impaired at the reporting date, the Company continues to recognize a loss allowance equal to lifetime expected credit losses.

For financial assets measured at amortized cost, loss allowances for expected credit losses are presented in the statements of financial position as a deduction from the gross carrying amount of the financial asset.

Financial assets are written off when the Company has no reasonable expectations of recovering all or any portion thereof.

#### Derecognition of financial assets
The Company derecognizes a financial asset when its contractual rights to the cash flows from the financial asset expire.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 3) Summary of significant accounting policies (cont.)
<u>***<u>Financial liabilities</u>***</u>

#### Recognition and initial measurement
The Company recognizes a financial liability when it becomes party to the contractual provisions of the instrument. At initial recognition, the Company measures financial liabilities at their fair value plus transaction costs that are directly attributable to their issuance, with the exception of financial liabilities subsequently measured at fair value through profit or loss for which transaction costs are immediately recorded in profit or loss.

#### Derecognition of financial liabilities
The Company derecognizes a financial liability only when its contractual obligations are discharged, cancelled or expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**l) Revenue**

The Company derives revenue from the sale of precious metals.

The Company recognized revenue when there is evidence a sale arrangement exists, specific performance obligations have been satisfied, the sales price is fixed and determinable, and collectability is reasonably assured.

Once products are shipped to the Company's customers, shall the customer have accepted the products in accordance with the sales order and the Company has objective evidence that all criteria for acceptance have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**m) Related party transactions**

Parties are considered to be 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. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**n) Share capital**

The Company's shares and share warrants are classified as equity instruments. Incremental costs directly attributable to the issue of new shares are charged directly to share capital. Proceeds received on the issuance of units, comprised of common shares and warrants are allocated to common shares and warrants based on the relative fair value.

Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in contributed surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**o) Share based compensation**

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 3) Summary of significant accounting policies (cont.)
The Company recognizes compensation expense over the vesting period based on the Company's estimate of equity instruments that will eventually vest. Fair value is measured using the Black-Scholes option pricing model. Expected forfeitures are estimated at the date of grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. Any revisions are recognized in the consolidated statements of loss and comprehensive loss such that the cumulative expense reflects the revised estimate.

#### 4) Critical accounting judgments and key sources of estimation uncertainty
The preparation of the Company's financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

Management must make significant judgments or assessments as to how financial assets and liabilities are categorized.

The following are the critical judgments and areas involving estimates that management have made in the process of applying the Company's accounting policies and that have the most significant effect on the amount recognized in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Critical accounting estimates:**

Significant assumptions about the future that management has made and about other sources of estimation uncertainty at the financial position reporting date that could result in a material adjustment to the carrying amounts of assets and liabilities relate to but are not limited to the following:

#### Term and incremental borrowing rate of lease
The calculation of lease liabilities and associated interest expense is dependent on estimates of how many lease renewal options will be exercised, as well as the determination of the Company's incremental borrowing rate. These are determined through the exercise of judgment and are dependent upon estimates that take into account factors such as economic and market conditions, operational plans and anticipated changes in laws.

#### Depreciation and amortization of property, plant and equipment and right of use assets
Depreciation and amortization rates are dependent upon estimates of useful lives, which are determined through the exercise of judgment. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that consider factors such as economic and market conditions and the useful lives of assets.

#### Fair value measurement of warrants and share options
The Company measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date on which they are granted. Estimating fair value for warrants and share options requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires the determination of the most appropriate inputs to the valuation model including the expected life of the warrants and share options, volatility, and making assumptions about them.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 4) Critical accounting judgments and key sources of estimation uncertainty (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Critical accounting judgments:**

Significant judgments about the future that management has made and about other sources of judgment uncertainty at the financial position reporting date that could result in a material adjustment to the carrying amounts of assets and liabilities relate to but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Functional currency: The determination of the functional currency of the Company as the Canadian dollar and it's subsidiary as the US$.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Going concern: The Company's ability to execute its strategy by funding future working capital requirements requires judgment. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, such as expectations of future events that are believed to be reasonable under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Indications of impairment: Management assesses at least once per period whether the facts and circumstances surrounding their assets indicate that the carrying value exceed the recoverable amount. The Company recognizes a loss allowance for the expected credit losses associated with its financial assets, other than financial assets measured at fair value through profit or loss. Expected credit losses are measured to reflect a probability-weighted amount, the time value of money, and reasonable and supportable information regarding past events, current conditions and forecasts of future economic conditions.

#### 5) Financial instruments and risk management
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Financial instrument classification and measurement**

Financial instruments of the Company carried on the Consolidated Statements of Financial Position are carried at amortized cost. There are no significant differences between the carrying value of financial instruments and their estimated fair values as at 31 December 2021 and 2020, due to the immediate or short-term maturities of the financial instruments.

The Company classifies the fair value of these transactions according to the following hierarchy:

Level 1 — quoted prices in active markets for identical financial instruments.

Level 2 — quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant and significant value drivers are observable in active markets.

Level 3 — valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Fair values of financial assets and liabilities**

The Company's financial instruments include cash and cash equivalents, security deposit, accounts payable and accrued liabilities, loan payable, and short-term loans. As at 31 December 2021 and 2020, the financial instruments approximate their fair value due to their short-term nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) Other risk**

Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of other price risk, currency risk, and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. These market risks are evaluated by monitoring changes in key economic indicators and market information on an on-going basis, adjusting operations and budgets accordingly.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 5) Financial instruments and risk management (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d) Credit risk**

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e) Liquidity risk**

Liquidity risk is the risk that the Company will not be able to settle or manage its obligations associated with financial liabilities. In the management of liquidity risk, the Company maintains a balance between continuity of funding and the flexibility through the use of borrowings. Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Company's projects and operations. The Company is dependent on external financing and will be required to raise additional capital in the future to fund its operations (Note 1).

As at 31 December 2021, the Company had a cash balance of $414,047 (31 December 2020 — $98,579) to settle current liabilities of $1,005,075 (31 December 2020 — $251,323). So far, the Company is not profitable and has had to rely on the issuance of equity securities for cash, primarily through private placements and from related and other parties. The Company's access to financing is always uncertain. There can be no assurance of continued access to significant equity funding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f) Interest rate risk**

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to cash flow interest rate risk on the variable rate of interest earned on its cash. The cash flow interest rate risk on cash is insignificant since deposits are short term in nature. The Company does not hold any other financial assets or liabilities which incur interest. The fair value interest rate risk on the Company's other assets and liabilities are deemed to be insignificant.

The Company has not entered into any derivative instruments to manage interest rate fluctuations; however, management closely monitors interest rate exposure, and the risk exposure is limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g) Foreign currency risk**

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Company's major operating expenses and acquisition costs are denominated in US$ and incurred by UMI, and a portion of the expenses of the Company are in Canadian dollars. The Company's corporate office is based in Canada, and the exposure to exchange rate fluctuations arises mainly on foreign currencies, which are the US$.

The Company is exposed to foreign exchange risk. The Company has not entered into any derivative instruments to manage foreign exchange fluctuations; however, management monitors foreign exchange exposure, and if rates continue to fall, management will look at entering into derivative contracts. Should the US dollar and Canadian dollar exchange rate have changed by 5% at the year end the impact to profit or loss would be +/- $9,300.

The Company's monetary assets and liabilities denominated in Canadian dollars are shown here in US$:

---

| | | |
|:---|:---|:---|
|  | **31 December <br>2021** | **31 December <br>2020** |
|  Cash | $**90000** | $— |
|  Accounts payable | $**(276000)** | $— |

---

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 6) New standards, amendments and interpretations
The Company did not adopt any new accounting standard changes or amendments in the current year that had a material impact on the Company's financial statements.

#### Classification of Liabilities as Current or Non-current — Amendments to IAS 1.
In January, 2020, the IASB amended IAS 1 Presentation of Financial Statements. The amendment clarifies that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period which only impacts the presentation of liabilities in the balance sheet. The classification is unaffected by expectations about whether the Company will exercise its right to defer settlement of a liability.

#### Disclosure of Accounting Policy Information — Amendments to IAS 1 and IFRS Practice Statement 2
In February, 2021, the IASB amended IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements to require the Company to disclose its material accounting policy information rather than its significant accounting policies.

#### Definition of Accounting Estimates — Amendments to IAS 8
In February, 2021, the IASB amended IAS 8 Accounting Policies, Changes in Accounting estimates and Errors to introduce a definition of accounting estimates and to help entities distinguish changes in accounting policies from changes in accounting estimates. This distinction is important because changes in accounting policies must be applied retrospectively while changes in accounting estimates are accounted for prospectively.

#### Deferred Tax related to Assets and Liabilities arising from a Single Transaction — Amendments to IAS 12
In May 2021, the IASB amended IAS 12 Income Taxes, to narrow the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

#### 7) Acquisition
On 19 August 2021, the Company and Urban Mining International, Inc. ("UMI") entered into a merger agreement (the "Merger Agreement"), providing for the acquisition of all the issued and outstanding common shares of UMI. For accounting purposes, UMI being the accounting acquirer and therefore, the Company's historical financial statements reflect those of UMI. Prior to the Transaction, MMTC was a shell company with no business operations.

Upon closing of the Transaction on 1 September 2021, UMI became a wholly owned subsidiary of MMTC.

Details of the transaction are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UMI completed a share consolidation prior to the Acquisition on the basis of one (1) post-consolidation Common Share for every three (3) outstanding Common Shares existing immediately before the consolidation; 21,868,905 shares outstanding were re-issued as 7,289,635 common shares post-consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the Transaction, UMI completed the private placement of 49,500,000 warrants for total proceeds of $137,365 (CAD$173,250); the warrants have an exercise price of CAD$0.08. Post-consolidation, the 49,500,000 warrants were re-issued as 16,500,000 warrants with an exercise price of $0.20 (CAD$0.25) and expire three (3) years from the closing of the Offering.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 7) Acquisition (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the Transaction, UMI granted 5,000,000 performance warrants with an exercise price of $0.05 vesting upon the following sales targets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,000,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,000,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Previously issued 10,724,350 warrants with an exercise price of $0.15 expiring July 2023 were re-issued as 3,574,783 warrants with an exercise price of US $0.45 (CAD$0.5625) post-consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Previously issued 400,000 warrants with an exercise price of $0.30 expiring July 2023 were re-issued as 133,333 warrants with an exercise price of US $0.90 (CAD$1.13) post-consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Urban Mining Merger Sub Inc. (Subco), direct, wholly — owned subsidiary of MMTC was formed for the purpose of effecting the merger. Each share of Subco became one common share of Mergeco such that Mergeco is a wholly owned subsidiary of the resulting entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each UMI common share was converted into the right to receive a number of resulting issuer common shares multiplied by 1 (the "Exchange Ratio"). Thus, for every 1 issued UMI share MMTC issued 1 Share and for every 1 issued UMI Warrant, MMTC issued 1 Warrant.

#### 8) Prepaid expenses
As at 31 December 2021, the balance in prepaid expenses of $1,701 (31 December 2020 — $15,331) represents a retainer for professional fee (31 December 2020 — prepaid rent).

#### 9) Property and Equipment

---

| | | |
|:---|:---|:---|
|  **Property and Equipment** | **Manufacturing <br>Equipment** | **Total** |
|  **Cost** |  |  |
|  Balance as at 1 January 2020 | $295670 | $295670 |
| &nbsp;&nbsp;&nbsp; Addition | 142136 | 142136 |
|  **Balance as at 31 December 2020 and 2021** | $**437806** | $**437806** |
|  **Depreciation and Impairment** |  |  |
|  Balance as at 1 January 2020 | $— | $— |
| &nbsp;&nbsp;&nbsp; Depreciation for the year | 76187 | 76187 |
|  Balance as at 31 December 2020 | 76187 | 76187 |
| &nbsp;&nbsp;&nbsp; **Depreciation for the year** | **66871** | **66871** |
| &nbsp;&nbsp;&nbsp; **Impairment** | **294748** | **294748** |
|  **Balance as at 31 December 2021** | $**437806** | $**437806** |
|  **Carrying Amounts** |  |  |
|  Balance as at 1 January 2020 | $295670 | $295670 |
|  **Balance as at 31 December 2020** | $**361619** | $**361619** |
|  **Balance as at 31 December 2021** | $**—** | $**—** |

---

Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 9) Property and Equipment (cont.)
Depreciation is charged to recognize the cost of the asset on the consolidated statements of comprehensive loss using the straight-line method over the estimated useful life of the asset.

<u><u>During the year ended 31 December 2021:</u></u>

Due to uncertainty surrounding the realization of future economic benefits and the lease termination on 22 October 2021 described in (Note 15), the Company carried out a review of the recoverable amounts of the manufacturing equipment. The review led to the recognition of a non-cash impairment loss of $294,748 in the consolidated statements of loss and comprehensive loss (2020–$Nil).

<u><u>During the year</u> <u>ended 31 December 2020:</u></u>

During the year ended 31 December 2020, the Company acquired additional manufacturing equipment and recorded depreciation of $76,187 as it was available for use.

#### 10) Security deposit
As at 31 December 2021, the balance in security deposit was applied to the final settlement in termination of the lease (Note 15). As at 31 December 2020, $9,000 related to security deposit for a 10-year lease agreement.

#### 11) Accounts payable and accrued liabilities
Accounts Payable and accrued liabilities consist of:

---

| | | |
|:---|:---|:---|
|  **Accounts Payable and Accrued Liabilities** | **31 December <br>2021** | **31 December <br>2020** |
|  Accounts payable & accrued liabilities | $**646607** | $17295 |
|  Payroll liabilities | **5137** | 10815 |
|  | $**651744** | $28110 |

---

During the year ended 31 December 2020, the Company negotiated with certain vendors regarding balances outstanding for prior services and equipment purchased, resulting in a gain on forgiveness of debt included in the statement of loss and comprehensive loss for $183,187.

#### 12) Grant payable
As at 31 December 2021, the balance in grant payable of $15,000 (31 December 2020 — $20,000) represents a grant from the City of Raleigh for equipment acquired.

---

| | | |
|:---|:---|:---|
|  **Grant Payable** | **31 December <br>2021** | **31 December <br>2020** |
|  Grant Payable | $**15000** | $**20000** |
|  | $**15000** | $**20000** |

---

Grant income is recognized on the consolidated statements of loss and comprehensive loss using the straight-line method over 5 years, the estimated useful life of the equipment acquired. During the year ended December 31, 2020, the Company received $25,000 from the City of Raleigh as part of the building up-lift program set up by the city towards eligible capital expenditure. The Company recognizes government grants when there is reasonable assurance that it will comply with the conditions required to qualify for the grant, and that the grant will be received. The Company recognizes government grants as a reduction to the related expense that the grant is intended to offset. The Company has recognized $5,000 of the building up lift grant during the year ended December 31, 2021 (2020 — $5,000) and has recorded it as other income in the consolidated statement of loss and comprehensive loss.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 13) Short term loans
As at 31 December 2021, the balance in short term loan of $277,331 (31 December 2020 — $nil) represents loan and interest for operations:

---

| | | | |
|:---|:---|:---|:---|
|  **Short-Term Loans** | **Principal** | **Interest** | **Total** |
|  Balance as at 31 December 2020 and 2019 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp; **Addition** | **265050** | **12281** | **277331** |
|  **Balance as at 31 December 2021** | $**265050** | $**12281** | $**277331** |

---

Short-term loan details are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 31 December 2021, the Company owes the former CEO & Director $84,316 (31 December 2020 — $nil), of which $6,266 is accrued interest. Amounts owing to the former CEO & Director consists of the following three loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 15 March 2021, the Company received an interest-bearing loan of $16,050 from the former CEO & Director of the Company. The loan is subject to interest at one percent (1%) per month compounded and is due and payable in full on 30 April 2022. As at 31 December 2021, the principal of $16,050 and interest of $1,535 remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 29 March 2021, the Company received an interest-bearing loan of $34,000 from the former CEO & Director of the Company. The loan is subject to interest at one percent (1%) per month compounded and is due and payable in full on 30 April 2022. As at 31 December 2021, the principal of $34,000 and interest of $3,175 remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 15 July 2021, the Company received an interest-bearing loan of $28,000 from the former CEO & Director of the Company. The loan is subject to interest at one percent (1%) per month compounded and is due and payable in full on 30 April 2022. As at 31 December 2021, the principal of $28,000 and interest of $1,556 remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 31 December 2021, the Company owes the former CTO & Director $32,900 (31 December 2020 — $nil), of which $1,900 is accrued interest. Amounts owing to the former CTO & Director consists of the following two loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 15 April 2021, the Company received an interest-bearing loan of $16,000 from the the former CTO & Director of the Company. The loan is subject to interest at one percent (1%) per month compounded and is due when the Company is able to repay the loan. As at 31 December 2021, the principal of $16,000 and interest of $1,446 remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 30 September 2021, the Company received an interest-bearing loan of $15,000 from the the former CTO & Director of the Company. The loan is subject to interest at one percent (1%) per month compounded and is due when the Company is able to repay the loan. As at 31 December 2021, the principal of $15,000 and interest of $454 remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 31 December 2021, the Company owes an unrelated party $160,115 (31 December 2020 — $nil), of which $4,115 is accrued interest. Amounts owing to the unrelated party consists of the following three loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 4 June 2021, the Company received an interest-bearing loan of $60,000 from an unrelated party. The loan is subject to interest at five percent (5%) per annum compounded annually and is due and payable in full on 4 December 2021. As at 31 December 2021, the principal of $60,000 and interest of $1,726 remains unpaid.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 13) Short term loans (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 17 June 2021, the Company received an interest-bearing loan of $45,000 from an unrelated party. The loan is subject to interest at five percent (5%) per annum compounded annually and is due and payable in full on 4 December 2021. As at 31 December 2021, the principal of $45,000 and interest of $1,208 remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 14 July 2021, the Company received an interest-bearing loan of $51,000 from an unrelated party. The loan is subject to interest at five percent (5%) per annum compounded annually and is due and payable in full on 4 December 2021. As at 31 December 2021, the principal of $51,000 and interest of $1,181 remains unpaid.

#### 14) Loan payable
As at 31 December 2021, the loan payable in the amount of $61,000 (31 December 2020 — $61,000) has no interest. This is an unsecured loan with no terms for repayment, received from an unrelated party.

#### 15) Right-of-use assets and lease liability
The Company has entered into various contractual arrangements that include right-of-use assets that relate to the lease of its operating facility. The weighted average interest rate utilized to discount future lease payments is 6.0%.

The Company entered into a facility lease agreement which was originally set to expire in August 2025. On 22 October 2021, the lease was terminated. Upon termination of the lease, a termination fee of $70,000 is payable in 7 instalments ($10,000/month starting 1 December 2021). The termination fee may be prepaid in full at any time. As at 31 December 2021, $50,000 was outstanding and recorded in accounts payable and accrued liabilities.

---

| | | |
|:---|:---|:---|
|  **Lease liability net book value consists of:** | **31 December <br>2021** | **31 December <br>2020** |
|  Current | $**—** | $142213 |
|  Long-term | **—** | 641766 |
|  Total | $**—** | $783979 |

---

The lease liability consists of the following:

---

| | |
|:---|:---|
|  | **Amount** |
|  Balance as at 1 January 2020 | $1463818 |
|  Lease payments | **(183178)** |
|  Interest expense | **67995** |
|  Modification | **(564656)** |
|  **Balance as at 31 December 2020** | $**783979** |

---

---

| | |
|:---|:---|
|  | **Amount** |
|  Balance as at 1 January 2021 | $783979 |
|  Lease payments | **(154030)** |
|  Interest expense | **36595** |
|  Termination of the lease | **(666544)** |
|  **Balance as at 31 December 2021** | $**—** |

---

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 15) Right-of-use assets and lease liability (cont.)
<u><u>During the year ended</u> <u>31 December 2021:</u></u>

Due to termination of the lease on 22 October 2021, the Company wrote down the value of its right-of-use asset to $Nil and recognized an impairment loss of $646,655 in the consolidated statements of loss and comprehensive loss (2020–$Nil). The Company also wrote down the value of its lease liability to $Nil and recognized a gain on termination of $666,544 in the consolidated statements of loss and comprehensive loss (2020–$Nil) for the net impact of $19,889.

<u><u>During the year ended 31 December 2020:</u></u>

During the year ended 31 December 2020, the terms of a facility lease were modified causing the capitalized leases and lease liability to be decreased by $564,656.

The Company amended the facility lease agreement in July 2020, which resulted in the term of the agreement being shortened to expire in August 2025 from the original expiry date of July 2029. As a result, total lease payment were reduced over the term. The modification reduced the right of use asset and operating lease liability resulting in a $103,046 gain on modification, which was recorded as other income in the consolidated statement of loss and comprehensive loss.

---

| | | | |
|:---|:---|:---|:---|
|  **Right-of-use assets** | **Cost** | **Amortization** | **Carrying <br>Amount** |
|  Balance as at 1 January 2020 | $1445824 | $(136613) | $1309211 |
| &nbsp;&nbsp;&nbsp; Addition | **—** | **(224746)** |  |
| &nbsp;&nbsp;&nbsp; Modification/Revaluation | (606547) | 293402 |  |
|  Balance as at 31 December 2020 | $839277 | $(67957) | $771320 |
| &nbsp;&nbsp;&nbsp; Addition | **—** | **(124665)** |  |
| &nbsp;&nbsp;&nbsp; Impairment | **(839277)** | **192622** |  |
|  **Balance as at 31 December 2021** | $**—** | $**—** | $**—** |

---

#### 16) Share capital
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a. Authorized:**

The Company's Board and shareholders authorized shares to 60,000,000 at its 30 July 2020 board meeting. As at 31 December 2021, 20,000,000 common shares were authorized, this has taken into account a 3 for 1 consolidation (31 December 2020 — 60,000,000).

No preferred shares were authorized as at 31 December 2021 and 31 December 2020. The Company's Board and shareholders voted to convert the preferred shares, 1 for 1, into common shares at its 30 July 2020 meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b. Issued or allotted and fully paid:**

After a 3 for 1 consolidation, there were 8,559,784 common shares issued and outstanding as at 31 December 2021 (31 December 2020 — 6,465,302).

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 16) Share capital (cont.)
<u><u>During the year ended 31 December 2021:</u></u>

---

| | | |
|:---|:---|:---|
|  | **Number of <br>Shares** | **Amount** |
|  **Balance as at 1 January 2021** | 6465302 | $1838628 |
| &nbsp;&nbsp;&nbsp; Shares issued at $0.45 | **133333** | **44200** |
| &nbsp;&nbsp;&nbsp; Shares issued at $0.50, net of share issuance cost | **1270149** | **628533** |
| &nbsp;&nbsp;&nbsp; Shares based compensation | **691000** | **310950** |
|  **Balance as 31 December 2021** | **8559784** | $**2822311** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2021, 133,333 common shares were issued at a price of $0.45 per common share. Each unit also included one warrant allowing the owner to purchase one share at CAD$1.13 over a three-year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2021, 691,000 common shares were issued to officers and directors of the Company at $0.45 per common share. The fair value of the common shares granted was $310,950.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 9 November 2021, MMTC completed a private placement offering of 1,270,149 common shares of the Company at a price of $0.50 per Share for total proceeds of $635,075, share issuance costs of $6,245, and no finders' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of 31 December 2021, $885,391 was held in trust by the Company's legal counsel and represent advances received from investors who signed their debenture agreements with the Company prior to December 31, 2021. The debenture financing closed subsequent to year end (see Note 22).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 31 December 2021, the Company had 25,208,116 warrants that were issued and outstanding. These warrants remained anti-dilutive as at 31 December 2021, and therefore, were not included in the calculation of diluted earnings per share.

<u><u>During the</u> <u>year ended 31 December 2020:</u></u>

---

| | | |
|:---|:---|:---|
|  | **Number of Shares** | **Amount** |
|  Balance as at 1 January 2020 | 1416667 | $425 |
| &nbsp;&nbsp;&nbsp; Preferred shares converted to common shares | 712356 | 1144208 |
| &nbsp;&nbsp;&nbsp; Shares issued at $0.15 | 3476667 | 410000 |
| &nbsp;&nbsp;&nbsp; Employee grant | 36667 | 2750 |
| &nbsp;&nbsp;&nbsp; Shares issued to settle debt | 196233 | 87613 |
| &nbsp;&nbsp;&nbsp; Share redemption | (830138) | (50000) |
| &nbsp;&nbsp;&nbsp; Shares issued at $0.45, net of share issuance cost | 74851 | 33582 |
| &nbsp;&nbsp;&nbsp; Shares based compensation | 1381999 | 210050 |
|  Balance as 31 December 2020 | 6465302 | $1838628 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 30 July 2020, 712,356 preferred shares were converted to common shares on a 1:1 conversion basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, 3,476,667 units were issued as part of a private placement at a price of $0.15 per unit. Each unit consisted of one common share and one common share purchase warrant. Each warrant entitled the holder thereof to purchase one common share in the share capital of the Company at an exercise price of $0.45 per Warrant Share for a 3-year period following the date of closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, 1,381,999 common shares were issued to officers and directors of the Company at $0.15 per common share. The fair value of the common shares granted was $210,050.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 16) Share capital (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, as part of a debt settlement arrangement entered into with various vendors of the Company, 196,233 units were issued to settle debt. Each unit consisted of one common share and one-half common share purchase warrant. Each full warrant entitled the holder thereof to purchase one common share in the share capital of the Company at an exercise price of $0.45 per Warrant Share for a 3-year period following the date of closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During 2020, 36,667 common shares were issued to employees of the Company at $0.15 per common share. The fair value of the common shares granted was $2,750.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2020, 74,851 commons shares were issued at $0.45 per share for cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c. Warrants**

Warrant transactions for the year ended 31 December 2021 and 31 December 2020 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Warrant Activity** | **31 December <br>2021\*** | **Weighted <br>Average <br>Exercise Price** | **31 December <br>2020** | **Weighted <br>Average <br>Exercise Price** |
|  **Balance – Beginning of year** | **3574783** | $**0.45** |  | $— |
| &nbsp;&nbsp;&nbsp; Issued | **16633333** | **0.20** | 3574783 | 0.45 |
| &nbsp;&nbsp;&nbsp; Granted | **5000000** | **0.05** |  |  |
|  **Balance – End of year** | **25208116** | $**0.21** | 3574783 | $0.45 |

---

____________

\* During the year ended 31 December 2021, a 3 for 1 consolidation occurred. The numbers shown represent the number of warrants after the 3 for 1 consolidation.

As at 31 December 2021, 20,208,116 warrants have a weighted average remaining life of 1.54 years (31 December 2020 — 2.53 years) and a weighted average exercise price of $0.20 (31 December 2020 — $0.45). The 5,000,000 performance warrants do not have an expiry date, vesting upon sales targets are reached, exercisable at $0.05.

The fair values of warrants issued have been estimated on the date of grant using the Black-Scholes pricing model. Assumptions used in the pricing model are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Expiry Date** | **Grant date <br>share price <br>$** | **Exercise <br>price <br>$** | **Expected <br>volatility %** | **Expected <br>warrant life <br>(Years)** | **Expected <br>dividend <br>yield %** | **Risk-free <br>interest rate %** |
|  14 July 2023 | 0.45 | 0.45 | 82.29 | 3.00 | 0 | 0.30 |
|  15 July 2023 | 0.45 | 0.45 | 82.29 | 3.00 | 0 | 0.30 |
|  15 January 2024 | 0.45 | 0.90 | 81.63 | 3.00 | 0 | 0.15 |

---

Warrant pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 16) Share capital (cont.)
The number of warrants outstanding as at 31 December 2021 and 31 December 2020 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Issuance Date** | **Expiry Date** | **Exercise Price\*** | **31 December <br>2021\*** | **31 December <br>2020** |
|  14 July 2020 | 14 July 2023 | $0.45 | **3476666** | 3476666 |
|  15 July 2020 | 15 July 2023 | $0.45 | **98117** | 98117 |
|  15 January 2021 | 15 January 2024 | $0.90 | **133333** |  |
|  7 August 2021 | 3 years post offering | $0.20 | **16500000** |  |
|  30 August 2021 | 3 years post offering | $0.05 | **5000000** |  |
|  |  |  | **25208116** | 3574783 |

---

____________

\* During the year ended 31 December 2021, a 3 for 1 consolidation occurred. The numbers shown represent the number of warrants after the 3 for 1 consolidation.

<u><u>During the year ended 31 December 2021:</u></u>

On 30 August 2021, the Company granted 5,000,000 performance warrants with an exercise price of $0.05 vesting upon $10,000,000 and $20,000, 0000 in gross sales targets. The fair value of these warrants was determined to be $nil due to management assessment of the Company meeting the target as being remote as at December 31, 2021.

Private placement of warrant financing of 16,500,000 was completed on 7 August 2021. Warrants were issued at $0.0083 for total proceeds of $137,365 (CAD$173,250). Each warrant allows the owner to purchase one share at $0.20 (CAD$0.25) for three (3) years from the closing of the Offering.

On 15 January 2021, the fair value of 133,333 warrants issued is $15,800. Each warrant allows the owner to purchase one share at $0.90 (CAD$1.125) over a three-year period, expiring January 2024.

<u><u>During the</u> <u>year ended 31 December 2020:</u></u>

On 15 July 2020, 98,117 warrants were granted as debt settlement. Each full warrant entitled the holder thereof to purchase one common share in the share capital of the Company at an exercise price of $0.45 (CAD$0.5625) per warrant share for a 3-year period following the date of closing, expiring July 2023.

On 14 July 2020, the fair value of the warrants issued were $115,500. Each of the 3,476,666 warrants entitled the holder thereof to purchase one common share in the share capital of the Company at an exercise price of $0.45 (CAD$0.5625) per Warrant Share for a 3-year period following the date of closing, expiring July 2023.

#### 17) Related party transactions and obligations
Parties are considered to be 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 to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 17) Related party transactions and obligations (cont.)
The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company's executive officers and members of its Board of Directors. Transactions and balances with key management personnel and related parties not disclosed elsewhere in the Financial Statements are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Related Party Disclosure <br>Name and Principal Position<sup>(i)</sup>** | **Period** | **Director & <br>Officer <br>Fees** | **Short-term <br>Loan and <br>accrued <br>interest** | **Share-based <br>Compensation** | **Accounts Payable** |
|  Chairman (Mark Zorko) | **2021** | $**22500** | $**—** | $**69043** | $**22500** |
|  | 2020 | $— | $— | $46029 | $— |
|  Director (Michael Hepworth) | **2021** | $**18333** | $**—** | $**65293** | $**18333** |
|  | 2020 | $**—** | $— | $69214 | $— |
|  Director (Matt Chatterton) | **2021** | $**16667** | $**—** | $— | $**16667** |
|  | 2020 | $**—** | $**—** | $— | $— |
|  Director (Sean Bromley) | **2021** | $**18333** | $**—** | $— | $**18333** |
|  | 2020 | $**—** | $— | $— | $— |
|  CEO & Director (Jeet Basi) | **2021** | $**16667** | $**—** | $— | $**16667** |
|  | 2020 | $**—** | $— | $— | $— |
|  Former CEO & Director (Basil Botha)<sup>(ii)</sup> | **2021** | $**52000** | $**84316** | $**103821** | $**57600** |
|  | 2020 | $— | $**—** | $43529 | $— |
|  Former CTO & Director | **2021** | $**—** | $**32900** | $**65293** | $**—** |
| &nbsp;&nbsp;&nbsp; (Howard Glicksman) | 2020 | $**—** | $— | $43529 | $— |
|  Former Independent Director | **2021** | $**—** | $**—** | $**7500** | $**—** |
| &nbsp;&nbsp;&nbsp; (Jeremy Blum) | 2020 | $— | $— | $5000 | $— |
|  **Total** | **2021** | $**144500** | $**117216** | $**310950** | $**150100** |
|  | 2020 | $— | $— | $207301 | $— |

---

____________

(i) For the year ended December 2021 and 2020.

(ii) Effective 1 March, 2022, Chief Executive Officer and director of the Company became the Company's Principal Technical Advisor and new CEO and Director was appointed from the Board.

During the year ended December 31, 2021, the Company entered into various consulting agreements with certain shareholders of the company and recorded consulting fees of $51,000 (2020–$nil).

These transactions were in the normal course of operations, which is the amount of consideration established and agreed to by the related parties.

Short-term loans with related parties are described in (Note 13).

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 18) Income taxes
The following table reconciles the expected income tax expense (recovery) at the Canadian and USA statutory income tax rates to the amounts recognized in the consolidated statements of loss and comprehensive loss for the years ended 31 December 2021 and 2020.

---

| | | |
|:---|:---|:---|
|  | **31 December <br>2021** | **31 December <br>2020** |
|  Net loss before tax | $**(2086371)** | $(690040) |
|  Statutory tax rate | **21.00%** | 22.98% |
|  Expected income tax (recovery) | **(438000)** | (158571) |
|  Change in statutory, foreign tax, foreign exchange rates | **(24000)** |  |
|  Permanent differences and other | **74000** | 210050 |
|  Effect of changes in statutory tax rates | **—** | 696 |
|  Change in deferred tax asset not recognized | **388000** | (52175) |
|  Total income tax expense (recovery) | $**—** | $— |

---

The unrecognized deductible temporary differences and deferred income tax assets as at 31 December 2021 and 2020 are comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **31 December 2020** | **31 December 2020** |
|  | **Temporary <br>difference** | **Temporary <br>difference** |
|  Non-capital losses carry-forwards | $**2395295** | $1010469 |
|  ROU asset | **—** | (771321) |
|  Lease liability | **—** | 783979 |
|  Reserve for unpaid amounts | **55984** |  |
|  Share issuance cost | **13174** |  |
|  Property and equipment | **305194** | 13625 |
|  Total unrecognized deductible temporary differences and deferred income tax assets | $**2769647** | $1036752 |

---

The Company is treated as a United States corporation for United States federal income tax purposes under section 7874 of the U.S. Tax Code and is expected to be subject to United States federal income tax on its worldwide income. However, for Canadian tax purposes, the Company is expected, regardless of any application of section 7874 of the U.S. Tax Code, to be treated as a Canadian resident company (as defined in the Income Tax Act (Canada) (the "ITA") for Canadian income tax purposes. As a result, the Company will be subject to taxation both in Canada and the United States.

#### 19) Capital management
The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to pursue the Company's objectives. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.

In the management of capital, the Company includes its components of shareholders' equity. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue debt, acquire or adjust the amount of cash and cash equivalents and investments.

At this stage of the Company's development, in order to maximize ongoing development efforts, the Company does not pay out dividends. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For The Years Ended 31 December 2021 and 2020

#### US Dollars

#### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### 20) Segmented information
The Company operates in one operating segment, which is the refinement of precious metals from electronic waste in the US. The following table provides segmented disclosure on assets and liabilities as reviewed by management regularly:

---

| | | | |
|:---|:---|:---|:---|
|  | **US** | **Canada** | **Total** |
|  **31 December 2021** |  |  |  |
|  Current assets | $**95000** | $**1219000** | $**1314000** |
|  Non-current assets | $**—** | $**—** | $**—** |
|  Current liabilities | $**(189000)** | $**(1702000)** | $**(1891000)** |
|  **31 December 2020** |  |  |  |
|  Current assets | $114000 | $— | $114000 |
|  Non-current assets | $1142000 | $— | $1142000 |
|  Current liabilities | $(251000) | $— | $(251000) |

---

#### 21) Commitments
The Company entered into a facility lease agreement which was originally set to expire in August 2025. On 22 October 2021, the lease was terminated. Upon termination of the lease, described in (Note 15), there is a commitment to pay a termination fee totalling $70,000 payable in 7 instalments ($10,000/month starting 1 December 2021). As at 31 December 2021, $20,000 of the $70,000 lease termination fee has been paid.

The Company has entered into four consulting contracts dated between 1 August 2021 and 1 November 2021 in respect of various accounting services, public relations, general administrative, and capital markets services provided to the Company. Out of four, two are with minority shareholders of the Company (Note 17). These consulting contracts shall continue for 12 months from the effective date, unless terminated earlier in accordance with their terms. The total compensation of these consulting contracts is based on CAD$22,500 per month and $6,000 per month, plus taxes.

#### 22) Subsequent events
In April 2022, MMTC arranged for an offering of unsecured convertible debentures ("Debentures") in an aggregate principal amount of $3,331,390. The Debentures bear interest at five percent (5%) per annum and are unsecured obligations of the Company. The Debentures are due thirty-six (36) months following their issuance (i.e. April 7, 2025). The Debenture also provides that in the event the Company completes a U.S. Listing (i.e., the offering), the principal amount of the Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the price of the offering, and (B) $5.00, and shall be subject to a six (6) month hold period from the completion of the offering.

In March 2022, the Company has entered into two (2) consulting contracts in respect of corporate development, merger & acquisition and market advisory services, as well as project management and advisory services to the Company. These consulting contracts shall continue for 12 months from the effective date, unless terminated earlier in accordance with their terms. The total compensation is CAD$11,666 per month, plus taxes.

In February 2022, the Company has entered into the transition agreement with the related party, former CEO, to provide technical advisory services at $14,000 per month payable until eighteen (18) months following the date of completion of the offering. Mr. Botha will also be entitled to a one-time bonus of $50,000 upon Mr. Botha assisting the Company in (i) securing the lease of the new Facility, (ii) assisting in the commissioning of key pilot plant equipment and (iii) managing the engineering study presently being conducted by a third party process modelling and industrial optimization firm. It was further agreed to repay the short-term loan of $78,050 plus interest within ten (10) days of closing of the offering.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### Unaudited Condensed Consolidated Interim Financial Statements

#### For the Six and Three Months Ended 30 June 2022

------

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.
***(Unaudited)***

#### US Dollars

#### Condensed Consolidated Interim Statements of Financial Position

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | (Unaudited) <br>As at <br>30 June <br>2022 | **As at <br>31 December <br>2021** |
|  **Assets** |  |  |  |
|  **Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | $**2278685** | $414047 |
| &nbsp;&nbsp;&nbsp; Goods and services tax receivable |  | **45980** | 13033 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses | (8) | **1701** | 1701 |
| &nbsp;&nbsp;&nbsp; Trust account | (15)(16b) | **—** | 885391 |
|  |  | $**2326366** | $1314172 |
|  **Liabilities** |  |  |  |
|  **Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (17)(10) | $**745799** | $651744 |
| &nbsp;&nbsp;&nbsp; Short-term loans | (12) | **124509** | 277331 |
| &nbsp;&nbsp;&nbsp; Equipment loan | (13) | **61000** | 61000 |
| &nbsp;&nbsp;&nbsp; Grant payable | (11) | **12500** | 15000 |
| &nbsp;&nbsp;&nbsp; Trust liability | (16b) | **—** | 885391 |
|  |  | **943808** | 1890466 |
|  **Non-Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Convertible debt | (15) | **3185351** |  |
| &nbsp;&nbsp;&nbsp; Interest payable | (15) | **38334** |  |
|  |  | $**4167492** | $1890466 |
|  **Equity** |  |  |  |
|  **Share capital** | (16) | **2822311** | 2822311 |
| &nbsp;&nbsp;&nbsp; Contributed surplus – warrants |  | **264665** | 264665 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income ("OCI") |  | **13085** | 10469 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit |  | **(4941187)** | (3673739) |
|  |  | **(1841126)** | (576294) |
|  |  | $**2326366** | $1314172 |

---

<u> Nature of operations and going concern </u>   <u> (1) </u>   <u> Commitments </u>   <u> (20 </u> <u>) </u> <br> <u> Capital management </u>   <u> (18) </u>   <u> Subsequent events </u>   <u> (21 </u> <u>) </u>

The Condensed Consolidated Interim Financial Statements were approved by the Board of Directors and were signed on its behalf by:

<u> "Signed" </u>       <u> "Signed" </u> <br> <u> Sean Bromley, Director </u>       <u> Michael Hepworth, Director </u>

The accompanying notes form an integral part of the condensed consolidated interim financial statement

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.
***(Unaudited)***

#### US Dollars

#### Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Note** | **3 Months <br>Ended <br>30 June <br>2022** | **3 Months <br>Ended <br>30 June <br>2021** | **6 Months <br>Ended <br>30 June <br>2022** | **6 Months <br>Ended <br>30 June <br>2021** |
|  **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Professional fees |  | $**308628** | $5290 | $**386889** | $45938 |
| &nbsp;&nbsp;&nbsp; Consulting fees |  | **199201** | 18629 | **289538** | 21062 |
| &nbsp;&nbsp;&nbsp; Management and director fees | (17) | **116454** |  | **223099** |  |
| &nbsp;&nbsp;&nbsp; Employee cost |  | **73676** | 92049 | **151341** | 186292 |
| &nbsp;&nbsp;&nbsp; Insurance |  | **50983** | 5011 | **52391** | 9422 |
| &nbsp;&nbsp;&nbsp; General and administration |  | **25048** | 7388 | **29730** | 15469 |
| &nbsp;&nbsp;&nbsp; Transfer agent |  | **12568** |  | **12568** |  |
| &nbsp;&nbsp;&nbsp; Travel and entertainment |  | **542** |  | **29991** | 1472 |
| &nbsp;&nbsp;&nbsp; Depreciation expense | (9) | **—** | 21891 | **—** | 44981 |
| &nbsp;&nbsp;&nbsp; Share based compensation | (16) | **—** |  | **—** | 310950 |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use asset | (14) | **—** | 41276 | **—** | 83389 |
| &nbsp;&nbsp;&nbsp; Research and development |  | **—** |  | **—** | 13548 |
| &nbsp;&nbsp;&nbsp; Chemical disposal |  | **—** |  | **44962** |  |
| &nbsp;&nbsp;&nbsp; Foreign exchange |  | **632** | 3 | **347** | 13 |
| &nbsp;&nbsp;&nbsp; Rental (lease recovery) |  | **(10000)** |  | **(10000)** |  |
|  |  | **777732** | 191537 | **1210856** | 732536 |
|  |  | **(777732)** | (191537) | **(1210856)** | (732536) |
|  **Other Income (Expense)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other income | (11) | **1250** | 1250 | **2500** | 2500 |
| &nbsp;&nbsp;&nbsp; Accretion expense |  | **(10955)** |  | **(10955)** |  |
| &nbsp;&nbsp;&nbsp; Interest expense |  | **(42865)** | (14121) | **(48137)** | (25723) |
|  |  | **(52570)** | (12871) | **(56592)** | (23223) |
|  **Net Loss for the Period** |  | $**(829718)** | $(204408) | $**(1267448)** | $(755759) |
|  **Other Comprehensive Income (Loss)** |  |  |  |  |  |
|  Foreign operations – foreign exchange |  | **(700)** |  | **2616** |  |
|  **Comprehensive Loss for the Period** |  | **(831002)** | (204408) | **(1264832)** | (755759) |
|  **Basic and Diluted Loss per Share** |  | $**(0.09)** | $(0.03) | $**(0.14)** | $(0.11) |
|  **Weighted Average Shares Outstanding** |  | **8559784** | 7289635 | **8559784** | 7149188 |

---

The accompanying notes form an integral part of the condensed consolidated interim financial statement

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.
***(Unaudited)***

#### US Dollars

#### Condensed Consolidated Interim Statements of Changes in Equity

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common <br>Shares\*** | **Common <br>Shares <br>Amount** | **Contributed <br>Surplus** | **Accumulated <br>OCI** | **Accumulated <br>Deficit** | **Shareholders' <br>Equity** |
|  **Balance as at 1 January 2021** | 6465302 | $1838628 | $111500 | $— | $(1587368) | $362760 |
| &nbsp;&nbsp;&nbsp; Issuance of common shares @ $0.45 | 133333 | 44200 | 15800 |  |  | 60000 |
| &nbsp;&nbsp;&nbsp; Share based compensation | 691000 | 310950 |  |  |  | 310950 |
| &nbsp;&nbsp;&nbsp; Net loss for the year |  |  |  |  | (755759) | (755759) |
|  **Balance as at 30 June 2021** | 7289635 | $2193778 | $127300 | $— | $(2343127) | $(22049) |
|  **Balance as at 1 January 2022** | **8559784** | $**2822311** | $**264665** | $**10469** | $**(3673739)** | $**(576294)** |
| &nbsp;&nbsp;&nbsp; Other comprehensive income | **—** | **—** | **—** | **2616** | **—** | **2616** |
| &nbsp;&nbsp;&nbsp; Net loss for the period | **—** | **—** | **—** | **—** | **(1267448)** | **(1267448)** |
|  **Balance as at 30 June 2022** | **8559784** | $**2822311** | $**264665** | $**13085** | $**(4941187)** | $**(1841126)** |

---

____________

\* Prior to the Merger Transaction, Urban Mining International Inc. elected to have a share consolidation on the basis of one (1) post-consolidation Common Share for every three (3) outstanding Common Shares existing immediately before the consolidation; 21,868,905 shares outstanding were re-issued as 7,289,635 common shares post-consolidation.

The accompanying notes form an integral part of the condensed consolidated interim financial statement

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.
***(Unaudited)***

#### US Dollars

#### Condensed Consolidated Interim Statements of Cash Flows

---

| | | |
|:---|:---|:---|
|  | **6 Months <br>Ended <br>30 June <br>2022** | **6 Months <br>Ended <br>30 June <br>2021** |
|  **Operative Activities** |  |  |
|  **Net Loss for the period** | $**(1267448)** | $(755759) |
|  **Items not Affecting Cash** |  |  |
| &nbsp;&nbsp;&nbsp; Share based compensation | **—** | 310950 |
| &nbsp;&nbsp;&nbsp; Interest on convertible debt | **38334** |  |
| &nbsp;&nbsp;&nbsp; Foreign exchange | **1527** |  |
| &nbsp;&nbsp;&nbsp; Accretion expense | **10955** |  |
| &nbsp;&nbsp;&nbsp; Amortization of property and equipment | **—** | 44981 |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use asset | **—** | 83389 |
|  | **(1216632)** | (316439) |
|  **Net Change in Non-cash Working Capital** |  |  |
| &nbsp;&nbsp;&nbsp; Accounts receivable | **(32947)** |  |
| &nbsp;&nbsp;&nbsp; Prepaid expenses | **—** | 5331 |
| &nbsp;&nbsp;&nbsp; Grant payable | **(2500)** | (2500) |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | **103858** | 70766 |
|  **Cash Used in by Operating Activities** | **(1148221)** | (242842) |
|  **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp; Issuance of common shares | **—** | 60000 |
| &nbsp;&nbsp;&nbsp; Short-term loans repaid | **(162625)** | 201279 |
| &nbsp;&nbsp;&nbsp; Convertible debt received | **3174395** |  |
| &nbsp;&nbsp;&nbsp; Lease payments | **—** | (69328) |
|  **Cash Provided by Financing Activities** | **3011770** | 191951 |
|  **Net effect of translation on foreign currency** | **1089** |  |
|  **Net Increase (Decrease) in Cash and cash equivalent** | **1864638** | (50891) |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalent – Beginning of Period | **414047** | 98579 |
|  **Cash and cash equivalent – End of Period** | $**2278685** | $47688 |

---

The accompanying notes form an integral part of the condensed consolidated interim financial statement

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 1) Nature of operations and going concern
Modern Mining Technology Corp. (the "Company" or "MMTC") was incorporated under British Columbia Business Corporations Act on 26 January 2021. The Company's registered office is held at Suite 1001, 409 Granville Street, Vancouver, BC V6C 1T2, Canada.

On 19 August 2021, the Company and Urban Mining International, Inc. ("UMI") entered into a merger agreement (the "Merger Agreement"), providing for the acquisition of all the issued and outstanding common shares of UMI by the Company. Pursuant to the Merger Agreement, UMI and Urban Mining Merger Sub, Inc. (a subsidiary of UMI, created for the transaction) amalgamated and continued under the name of UMI. As a result of the Merger Transaction, UMI became a wholly owned subsidiary of MMTC on 1 September 2021. These Condensed Consolidated Interim Financial Statements are presented as a continuance of UMI and comparative figures presented in these condensed consolidated interim financial statements are those of UMI. Subsequently, UMI changed its name to Modern Mining Technology Corp. as of 8 December 2021 (Note 7).

UMI was incorporated in the State of Delaware, USA on 8 August 2017 for the purpose of refining precious metals from electronic waste. UMI's principal operating facility is now located in Greenville, NC.

These Condensed Consolidated Interim Financial Statements (the "Interim Financial Statements") have been prepared on the basis of the accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. There are several adverse conditions that cast significant doubt upon the soundness of this assumption. These financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations.

Management believes that the Company's ability to continue as a going concern is dependent on its ability to raise additional capital. There cannot be any assurance that the Company will ever generate revenue or even if it does generate revenue that it will achieve profitable operations. Furthermore, no assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on the Company's operations, in the case of debt financing, or cause substantial dilution for the existing shareholders, in case of equity financing. These factors represent material uncertainties that cast substantial doubt about its ability to continue as a going concern.

These Financial Statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and thus be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in these financial statements.

---

| | | |
|:---|:---|:---|
|  **(Rounded 000's)** | **30 June <br>2022** | **31 December <br>2021** |
|  Working capital (deficit) | $**1383000** | $(576000) |
|  Accumulated (deficit) | $**(4941000)** | $(3674000) |

---

During the years ended December 31, 2021 and 2020, and the period ending June 30, 2022, there was a global outbreak of COVID-19, which has had a significant impact on businesses through the restrictions put in place by the Canadian, US, federal, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place by Canada, US, and other countries to fight the virus. There is significant uncertainty as to the likely effects of this outbreak which may, among other things, impact our ability to raise further financing. The duration and impact of the COVID-19 outbreak is unknown at this time, as

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 1) Nature of operations and going concern (cont.)
is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments or quantify the impact this pandemic may have on the financial results and condition of the Company in future periods.

Although the Company's operations have not been drastically affected by COVID-19, it has slowed activities down. The lease for the larger facility and ordering of commercial scale equipment was postponed to the post IPO stage with the use of proceeds. The current lease allows the company to continue with its R&D work.

#### 2) Basis of presentation — Statement of Compliance
These Interim Financial Statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting. The Interim Financial Statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these Interim Financial Statements have been prepared using the accrual basis of accounting except for cash flow information.

Since the Interim Financial Statements do not include all disclosures required by the International Financial Reporting Standards ("IFRS") for annual financial statements, they should be read in conjunction with the Company's audited annual consolidated financial statements for the year ended 31 December 2021.

The policies set out were consistently applied to all the years presented unless otherwise noted below. The preparation of the condensed interim consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The preparation of the Interim Financial Statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, profit and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

#### 3) Summary of significant accounting policies
The accounting policies and methods of computation followed in preparing these Interim Financial Statements are the same as those followed in preparing the most recent audited annual consolidated financial statements. For a complete summary of significant accounting policies, please refer to the Company's audited annual consolidated financial statements for the year ended 31 December 2021.

#### 4) Critical accounting judgments and key sources of estimation uncertainty
The preparation of the Company's interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the interim financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 4) Critical accounting judgments and key sources of estimation uncertainty (cont.)
Management must make significant judgments or assessments as to how financial assets and liabilities are categorized. The following are the critical judgments and areas involving estimates that management have made in the process of applying the Company's accounting policies and that have the most significant effect on the amount recognized in the condensed consolidated interim financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Critical accounting estimates:**

Significant assumptions about the future that management has made and about other sources of estimation uncertainty at the financial position reporting date that could result in a material adjustment to the carrying amounts of assets and liabilities relate to but are not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The estimated useful lives of equipment and right-of-use assets, which are included in the condensed consolidated interim statement of financial position and the related depreciation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The inputs used in accounting for the fair value measurement of warrants and share options; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Company's incremental borrowing rate in determining the present value of lease liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Critical accounting judgments:**

Significant judgments about the future that management has made and about other sources of judgment uncertainty at the financial position reporting date that could result in a material adjustment to the carrying amounts of assets and liabilities relate to but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Functional currency: The determination of the functional currency of the Company as the Canadian dollar and it's subsidiary as the US$.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Going concern: The Company's ability to execute its strategy by funding future working capital requirements requires judgment. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, such as expectations of future events that are believed to be reasonable under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Indications of impairment: Management assesses at least once per period whether the facts and circumstances surrounding their assets indicate that the carrying value exceed the recoverable amount. The Company recognizes a loss allowance for the expected credit losses associated with its financial assets, other than financial assets measured at fair value through profit or loss. Expected credit losses are measured to reflect a probability-weighted amount, the time value of money, and reasonable and supportable information regarding past events, current conditions and forecasts of future economic conditions.

Convertible debentures: the identification of the components is based on interpretations of the substance of the contractual arrangement and therefore requires judgement from management.

#### 5) Recent Accounting Pronouncements
Adoption of Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

The Company adopted Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) on January 1, 2022. These amendments clarify the accounting for the net proceeds from selling any items produced while bringing an item of property, plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management. The amendments prohibit entities from deducting amounts received from selling items produced from the cost of property, plant and equipment while the Company is preparing the asset for its intended use. Instead, sales proceeds and the cost of producing these items will be recognized in the consolidated statement of operations. The amendments did not have any impact on the Company's consolidated financial statements upon adoption.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 6) Financial instruments and risk management
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Financial instrument classification and measurement**

Financial instruments of the Company carried on the Condensed Consolidated Interim Statements of Financial Position are carried at amortized cost. There are no significant differences between the carrying value of financial instruments and their estimated fair values as at 30 June 2022., except for convertible debt

The Company classifies the fair value of these transactions according to the following hierarchy:

Level 1 — quoted prices in active markets for identical financial instruments.

Level 2 — quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 — valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Fair values of financial assets and liabilities**

The Company's financial instruments include cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities, equipment loan, short-term loans, convertible debt and interest payable. As at 30 June 2022, the financial instruments approximate their fair value due to their short-term nature, except for convertible debt (Note 15).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) Other risk**

Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of other price risk, currency risk, and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. These market risks are evaluated by monitoring changes in key economic indicators and market information on an on-going basis, adjusting operations and budgets accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d) Credit risk**

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e) Liquidity risk**

Liquidity risk is the risk that the Company will not be able to settle or manage its obligations associated with financial liabilities. In the management of liquidity risk, the Company maintains a balance between continuity of funding and the flexibility through the use of borrowings. Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Company's projects and operations. The Company is dependent on external financing and will be required to raise additional capital in the future to fund its operations (Note 1).

As at 30 June 2022, the Company had a cash balance of $2,278,685 (31 December 2021 - $414,047) to settle current liabilities of $943,808 (31 December 2021 - $1,890,466). So far, the Company is not profitable and has had to rely on the issuance of equity securities and debt for cash, primarily through private placements and from related and other parties. The Company's access to financing is always uncertain. There can be no assurance of continued access to significant equity funding.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 6) Financial instruments and risk management (cont.)
The following table shows the Company's liabilities and potential due dates related to liquidity risk as at 30 June 2022:

---

| | | | |
|:---|:---|:---|:---|
|  **Liabilities and Obligations** | **Less than <br>1 year** | **1 – 3 years** | **Non-cash <br>payable** |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $**745799** | $**—** | **—** |
| &nbsp;&nbsp;&nbsp; Equipment loan | **61000** | **—** | **—** |
| &nbsp;&nbsp;&nbsp; Short-term loans | **124509** | **—** | **—** |
| &nbsp;&nbsp;&nbsp; Convertible debt | **—** | **3185351** | **—** |
| &nbsp;&nbsp;&nbsp; Interest payable | **—** | **38334** | **—** |
| &nbsp;&nbsp;&nbsp; Grant payable | **—** | **—** | **12500** |
|  **Balance as at 30 June 2022** | $**931308** | $**3223685** | $**12500** |

---

The following table shows the Company's liabilities and potential due dates related to liquidity risk as at 31 December 2021:

---

| | | | |
|:---|:---|:---|:---|
|  **Liabilities and Obligations** | **Less than <br>1 year** | **1 – 3 years** | **Non-cash <br>payable** |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $651744 | $— |  |
| &nbsp;&nbsp;&nbsp; Equipment loan | 61000 |  |  |
| &nbsp;&nbsp;&nbsp; Short-term loans | 277331 |  |  |
| &nbsp;&nbsp;&nbsp; Trust liability |  |  | 885391 |
| &nbsp;&nbsp;&nbsp; Grant payable |  |  | 15000 |
|  **Balance as at 31 December 2021** | $990075 | $— | $900391 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f) Interest rate risk**

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to cash flow interest rate risk on the variable rate of interest earned on its cash. The cash flow interest rate risk on cash is insignificant since deposits are either short term or pay interest at rates of 1.2% or less. The Company holds short-term loan with fixed interest rates, and does not hold any other financial assets or liabilities which incur interest. The fair value interest rate risk on the Company's other assets and liabilities are deemed to be insignificant.

The Company has not entered into any derivative instruments to manage interest rate fluctuations; however, management closely monitors interest rate exposure, and the risk exposure is limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g) Foreign currency risk**

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Company's major operating expenses and acquisition costs are denominated in US$ and incurred by UMI, and a portion of the expenses of the Company are in Canadian dollars. The Company's corporate office is based in Canada, and the exposure to exchange rate fluctuations arises mainly on foreign currencies, which are the US$.

The Company is exposed to foreign exchange risk. The Company has not entered into any derivative instruments to manage foreign exchange fluctuations; however, management monitors foreign exchange exposure, and if rates continue to fall, management will look at entering into derivative contracts. Should the US dollar and Canadian dollar exchange rate have changed by 5% at the period end the impact to profit or loss would be +/- $(22,000).

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 6) Financial instruments and risk management (cont.)
The Company's monetary assets and liabilities denominated in Canadian dollars are shown here in US$:

---

| | | |
|:---|:---|:---|
|  **(rounded '000)** | **30 June <br>2022** | **31 December <br>2021** |
|  Cash | $**44000** | $90000 |
|  Accounts payable and accrued liabilities | $**(390000)** | $(276000) |

---

#### 7) Acquisition
On 19 August 2021, the Company and Urban Mining International, Inc. ("UMI") entered into a merger agreement (the "Merger Agreement"), providing for the acquisition of all the issued and outstanding common shares of UMI. For accounting purposes, UMI being the accounting acquirer and therefore, the Company's historical financial statements reflect those of UMI. Prior to the Transaction, MMTC was a shell company with no business operations.

Upon closing of the Transaction on 1 September 2021, UMI became a wholly owned subsidiary of MMTC.

Details of the transaction are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UMI completed a share consolidation prior to the Acquisition on the basis of one (1) post-consolidation Common Share for every three (3) outstanding Common Shares existing immediately before the consolidation; 21,868,905 shares outstanding were re-issued as 7,289,635 common shares post-consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the Transaction, UMI completed the private placement of 49,500,000 warrants for total proceeds of $137,365 (CAD$173,250); the warrants have an exercise price of CAD$0.08 expiring August 2024. Post consolidation, the 49,500,000 warrants were re-issued as 16,500,000 warrants with an exercise price of $0.20 (CAD$0.25).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the Transaction, UMI granted 5,000,000 performance warrants with an exercise price of $0.05 vesting upon the following sales targets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,000,000 performance warrants exercisable upon the Company achieving at least $10,000,000 in gross sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,000,000 performance warrants exercisable upon the Company achieving at least $20,000,000 in gross sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Previously issued 10,724,350 warrants with an exercise price of $0.15 expiring July 2023 were re-issued as 3,574,783 warrants with an exercise price of $0.45 (CAD$0.5625) post-consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Previously issued 400,000 warrants with an exercise price of $0.30 expiring July 2023 were re-issued as 133,333 warrants with an exercise price of $0.90 (CAD$1.13) post-consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Urban Mining Merger Sub Inc. (Subco), direct, wholly — owned subsidiary of MMTC was formed for the purpose of effecting the merger. Each share of Subco became one common share of Mergeco such that Mergeco is a wholly owned subsidiary of the resulting entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each UMI common share was converted into the right to receive a number of resulting issuer common shares multiplied by 1 (the "Exchange Ratio"). Thus, for every 1 issued UMI share MMTC issued 1 Share and for every 1 issued UMI Warrant, MMTC issued 1 Warrant.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 8) Prepaid expenses
As at 30 June 2022, the balance in prepaid expenses of $1,701 (31 December 2021 — $1,701) represents a retainer for professional fee.

#### 9) Property and Equipment

---

| | | | |
|:---|:---|:---|:---|
|  **Manufacturing Equipment** | **Cost** | **Depreciation** | **Carrying <br>Amounts** |
|  Balance as at 1 January 2021 | $437806 | $121187 | $316619 |
| &nbsp;&nbsp;&nbsp; Depreciation for the period |  | 44981 |  |
|  Balance as at 30 June 2021 | $437806 | $166168 | $271638 |

---

---

| | | | |
|:---|:---|:---|:---|
|  **Manufacturing Equipment** | **Cost** | **Depreciation** | **Carrying <br>Amounts** |
|  Balance as at 1 January 2022 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp; Depreciation for the period |  |  |  |
|  **Balance as at 30 June 2022** | $**—** | $**—** | $**—** |

---

Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is charged to the condensed consolidated interim statements of comprehensive loss using the straight-line method over the estimated useful life of the asset. During the year ended 31 December 2021, property and equipment were fully impaired due to uncertainty surrounding the realization of future economic benefits from the asset.

#### 10) Accounts payable and accrued liabilities
Accounts Payable and accrued liabilities consist of:

---

| | | |
|:---|:---|:---|
|  **Accounts Payable and Accrued Liabilities** | **30 June <br>2022** | **31 December <br>2021** |
| &nbsp;&nbsp;&nbsp; Accounts payable & accrued liabilities | $**742415** | $646607 |
| &nbsp;&nbsp;&nbsp; Payroll liabilities | **3384** | 5137 |
|  | $**745799** | $651744 |

---

#### 11) Grant payable
As at 30 June 2022, the balance in grant payable of $12,500 (31 December 2021 — $15,000) represents a grant from the City of Raleigh for equipment acquired.

---

| | | |
|:---|:---|:---|
|  **Grant Payable** | **30 June <br>2022** | **31 December <br>2021** |
| &nbsp;&nbsp;&nbsp; Grant Payable | $**12500** | $**15000** |
|  | $**12500** | $**15000** |

---

Grant income is recognized on the condensed consolidated interim statements of loss and comprehensive loss using the straight-line method over 5 years, the estimated useful life of the equipment acquired. In 2020, the Company received $25,000 from the City of Raleigh as part of the building up-lift program set up by the city towards eligible capital expenditure. The Company recognizes government grants when there is reasonable assurance that it will comply with the conditions required to qualify for the grant, and that the grant will be received. The Company recognizes government grants as a reduction to the related expense that the grant is intended to offset. The Company has recognized $1,250 and $2,500 of the building up lift grant during the 3 month and 6 month period ended 30 June 2022 respectively (3 month and 6 month period ended 30 June 2021 — $1,250 and $2,500) and has recorded it as other income in the condensed consolidated interim statements of loss and comprehensive loss.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 12) Short term loans
As at 30 June 2022, the balance in short term loan of $124,509 (31 December 2021 — $277,331) represents loan and accrued interest:

---

| | | | |
|:---|:---|:---|:---|
|  **Short-Term Loans** | **Principal** | **Interest** | **Total** |
|  Balance as at 31 December 2021 | $265050 | $12281 | $277331 |
| &nbsp;&nbsp;&nbsp; Addition | **—** | **9803** | **9803** |
| &nbsp;&nbsp;&nbsp; Repayment | **(156000)** | **(6625)** | **(162625)** |
|  **Balance as at 30 June 2022** | $**109050** | $**15459** | $**124509** |

---

Short-term loan details are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 30 June 2022, the Company owes the former CEO & Director $89,765 (31 December 2021 — $84,316), of which $11,715 is accrued interest. Amounts owing to the former CEO & Director were advanced in three instalments: on 15 March 2021 for $16,050, on 29 March 2021 for 34,000, and on 15 July 2021 for $28,000. The interest at one percent (1%) per month compounded and is due within 10 days of closing of the offering. As at 30 June 2022, the principal and interest portion of these loans remained unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 30 June 2022, the Company owes the former CTO & Director $34,745 (31 December 2021 — $32,900), of which $3,744 was accrued interest. Amounts owing to the former CTO & Director were advanced in two instalments: on 15 April 2021 for $16,000, and on 30 September 2021 for $15,000. The interest at one percent (1%) per month compounded and is due when the Company can repay the loan. As at 30 June 2022, the principal and interest portion of these loans remained unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 30 June 2022, the Company repaid a loan from an unrelated party (31 December 2021 — $160,115). During 31 December 2021, the Company received an interest-bearing loan of $60,000, $45,000, and $51,000 from an unrelated party. These loans were subject to interest at five percent (5%) per annum compounded annually and the sum of principal amounts of $156,000 and accumulated interest of $6,625 were all repaid.

#### 13) Equipment loan
As at 30 June 2022, the balance in equipment loan is $61,000 (31 December 2021 — $61,000). This is an unsecured loan with no terms for repayment.

#### 14) Right-of -use assets and lease liability
The Company has entered into various contractual arrangements that include right-of-use assets that relate to the lease of its operating facility. The weighted average interest rate utilized to discount future lease payments is 6.0%.

The Company entered into a facility lease agreement which was originally set to expire in August 2025. On 22 October 2021, the lease was terminated. Upon termination of the lease, a termination fee of $70,000 was payable in 7 instalments ($10,000/month starting on 1 December 2021). The termination fee may be prepaid in full at any time. As at 30 June 2022, $nil (31 December 2021 — $50,000) was outstanding and recorded in accounts payable and accrued liabilities because the Company has satisfied the lease termination fee.

The lease liability consists of the following:

---

| | |
|:---|:---|
|  | **Amount** |
|  Balance as at 1 January 2021 | $783979 |
| &nbsp;&nbsp;&nbsp; Lease payments | **(154030)** |
| &nbsp;&nbsp;&nbsp; Interest expense | **36595** |
| &nbsp;&nbsp;&nbsp; Modification | **(666544)** |
|  **Balance as at 31 December 2021 and 30 June 2022** | $**—** |

---

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 14) Right-of -use assets and lease liability (cont.)

---

| | | | |
|:---|:---|:---|:---|
|  **Right-of-use assets** | **Cost** | **Amortization** | **Carrying <br>Amount** |
|  Balance as at 1 January 2021 | $839277 | $(67957) | $771320 |
| &nbsp;&nbsp;&nbsp; Addition | **—** | **(124665)** | **(124665)** |
| &nbsp;&nbsp;&nbsp; Impairment | **(839277)** | **192622** | **(646655)** |
|  **Balance as at 31 December 2021 and 30 June 2022** | $**—** | $**—** | $**—** |

---

**15) Convertible debenture**

In April 2022, MMTC arranged for an offering of unsecured convertible debentures ("Debentures") in an aggregate principal amount of $3,331,390. As of December 31, 2021, $885,391 was held in trust by the Company's legal counsel and represent advances received from investors who signed their debenture agreements with the Company prior to year-end. The Debentures bear interest at five percent (5%) per annum and are unsecured obligations of the Company. The Debentures are due thirty-six months following their issuance (i.e. 7 April 2025). The Debentures also provide that in the event the Company completes a U.S. Listing (i.e., the offering), the principal amount of the Debentures plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the price of the offering, and (B) $5.00, and shall be subject to a six (6) month hold period from the completion of the offering.

The Company evaluated the terms and conditions of the contingent settlement provision and determined that the entire instrument would be treated as a financial liability at amortised cost as there is no unconditional right to avoid delivering cash or another financial asset. The transaction price was determined to be the fair value of the convertible debt. The Company incurred $156,994 in finder's fees which was deducted from the convertible debts principal value. Interest is accrued at the rate of 5.0% per annum (based on a year of 360 days comprised of twelve 30-day months), payable only on the Maturity Date of the Debentures. During the period ended June 30, 2022, the Company recorded $38,334 in interest which was recorded as interest expense in the condensed interim consolidated statements of loss and comprehensive loss. The Debentures are being amortized over the life of the debenture using the effective interest rate of 6.74%. Accretion for the period was $10,955.

#### 16) Share capital
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Authorized:**

The Company's Board and shareholders authorized shares to 60,000,000 at its 30 July 2020 board meeting. As at 31 December 2021, 20,000,000 common shares were authorized, this has taken into account a 3 for 1 consolidation.

No preferred shares were authorized as at 30 June 2022 and 31 December 2021. The Company's Board and shareholders voted to convert the preferred shares, 1 for 1, into common shares at its 30 July 2020 meeting.

<u><u>During the year ended 31 December 2021 and 30 June 2022:</u></u>

---

| | | |
|:---|:---|:---|
|  | **Number of <br>Shares** | **Amount** |
|  **Balance as at 1 January 2021** | 6465302 | $1838628 |
| &nbsp;&nbsp;&nbsp; Shares issued at $0.45 | **133333** | **44200** |
| &nbsp;&nbsp;&nbsp; Shares based compensation | **691000** | **310950** |
|  **Balance as 30 June 2021** | **7289635** | $**2193778** |
| &nbsp;&nbsp;&nbsp; Shares issued at $0.50, net of share issuance cost | **1270149** | **628533** |
|  **Balance as 31 December 2021 and 30 June 2022** | **8559784** | $**2822311** |

---

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 16) Share capital (cont.)
**b) Issued or allotted and fully paid:**

After a 3 for 1 consolidation, there are 8,559,784 common shares issued and outstanding as at 30 June 2022 (31 December 2021 — 8,559,784).

<u><u>During the year ended 31 December 2021</u> <u>and 30 June 2022</u><u>:</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2021, 133,333 common shares were issued at a price of $0.45 per common share. Each unit also included one warrant allowing the owner to purchase one share at CAD$1.13 over a three-year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2021, 691,000 common shares were issued to officers and directors of the Company at $0.45 per common share. The fair value of the common shares granted was $310,950.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On 9 November 2021, MMTC completed a private placement offering of 1,270,149 common shares of the Company at a price of $0.50 per Share for total proceeds of $635,075, share issuance costs of $6,245, and no finders' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of 31 December 2021, $885,391 was held in trust by the Company's legal counsel and represented advances received from investors who signed their debenture agreements with the Company prior to 31 December 2021. The debenture financing closed during the six months period ended 30 June 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at 31 December 2021, the Company had 25,208,116 warrants that were issued and outstanding. These warrants remained anti-dilutive as at 31 December 2021, and therefore, were not included in the calculation of diluted earnings per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of June 30, 2022, potentially dilutive securities for the diluted earnings per share calculations consist of 666,278 contingently issuable shares of convertible debt at an assumed conversion price of $5 per common share and 25,208,116 share purchase warrants. When a loss from continuing operations exists, all dilutive securities and potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share.

**c) Warrants**

Warrant transactions for the six months ended 30 June 2022 and year ended 31 December 2021 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Warrant Activity** | **30 June <br>2022** | **Weighted <br>Average <br>Exercise <br>Price** | **31 December <br>2021\*** | **Weighted <br>Average <br>Exercise <br>Price** |
|  **Balance – Beginning of period** | 25208116 | $0.21 | 3574783 | $0.45 |
| &nbsp;&nbsp;&nbsp; Issued |  |  | 16633333 | 0.20 |
| &nbsp;&nbsp;&nbsp; Granted |  |  | 5000000 | 0.05 |
|  **Balance – End of period** | 25208116 | $0.21 | 25208116 | $0.21 |

---

____________

\* During the year ended 31 December 2021, a 3 for 1 consolidation occurred. The numbers shown represent the number of warrants after the 3 for 1 consolidation.

As at 30 June 2022, 25,208,116 warrants have a weighted average remaining life of 1.04 years (31 December 2021 — 1.28 years) and a weighted average exercise price of $0.21 (31 December 2021 — $0.21). The 5,000,000 performance warrants do not have an expiry date, vesting upon sales targets are reached, exercisable at $0.05.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 16) Share capital (cont.)
The fair values of warrants issued have been estimated on the date of grant using the Black-Scholes pricing model. Assumptions used in the pricing model are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Expiry Date** | **Grant date <br>share price<br>$** | **Exercise <br>price<br>$** | **Expected <br>volatility %** | **Expected <br>warrant <br>life <br>(Years)** | **Expected <br>dividend <br>yield %** | **Risk-free <br>interest <br>rate %** |
|  14 July 2023 | 0.45 | 0.45 | 82.29 | 3.00 | 0 | 0.30 |
|  15 July 2023 | 0.45 | 0.45 | 82.29 | 3.00 | 0 | 0.30 |
|  15 January 2024 | 0.45 | 0.90 | 81.63 | 3.00 | 0 | 0.15 |

---

Warrant pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate.

The number of warrants outstanding as at 30 June 2022 and 31 December 2021 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Issuance Date** | **Expiry Date** | **Exercise <br>Price\*** | **30 June <br>2022\*** | **31 December <br>2021\*** |
|  14 July 2020 | 14 July 2023 | $0.45 | **3476666** | 3476666 |
|  15 July 2020 | 15 July 2023 | $0.45 | **98117** | 98117 |
|  15 January 2021 | 15 January 2024 | $0.90 | **133333** | 133333 |
|  7 August 2021 | Three years post-Offering | $0.20 | **16500000** | 16500000 |
|  30 August 2021 |  | $0.05 | **5000000** | 5000000 |
|  |  |  | **25208116** | 25208116 |

---

____________

\* During the year ended 31 December 2021, a 3 for 1 consolidation occurred. The numbers shown represent the number of warrants after the 3 for 1 consolidation.

<u><u>During the year ended 31 December 2021:</u></u>

On 30 August 2021, the Company granted 5,000,000 performance warrants with an exercise price of $0.05 vesting upon $10,000,000 and $20,000,000 in gross sales targets. The fair value of these warrants will take place upon the vesting conditions of these performance warrants. As at 30 June 2022 and 31 December 2021, the warrants had a $nil fair value.

Private placement of warrant financing of 16,500,000 was completed on 7 August 2021. Warrants were issued at $0.0083 for total proceeds of $137,365 (CAD$173,250). Each warrant allows the owner to purchase one share at $0.20 (CAD$0.25) for three (3) years from the closing of the Offering.

On 15 January 2021, the fair value of 133,333 warrants issued is $15,800. Each warrant allows the owner to purchase one share at $0.90 (CAD$1.13) over a three-year period, expiring July 2023.

#### 17) Related party transactions and obligations
Parties are considered to be 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 to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 17) Related party transactions and obligations (cont.)
The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company's executive officers and members of its Board of Directors. Transactions and balances with key management personnel and related parties not disclosed elsewhere in the Interim Financial Statements are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Related Party Disclosure <br>Name and Principal Position** | **Period<sup>(i)</sup>** | **Director Fee/ Consulting Fee** | **Short-term Loan and Accrued Interest** | **Share-based Compensation** | **Accounts Payable and Accrued Liabilities** |
|  Chairman | **2022** | $**33145** | $**—** | $**—** | $**55645** |
|  (Mark Zorko) | 2021 | $— | $— | $69043 | $— |
|  Director | **2022** | $**27500** | $**—** | $**—** | $**45833** |
|  (Michael Hepworth) | 2021 | $— | $— | $65293 | $— |
|  Director | **2022** | $**27500** | $**—** | $**—** | $**45833** |
|  (Sean Bromley) | 2021 | $— | $— | $— | $— |
|  Director | **2022** | $**25575** | $**—** | $**—** | $**42242** |
|  (Matt Chatterton) | 2021 | $— | $— | $— | $— |
|  CEO | **2022** | $**68333** | $**—** | $**—** | $**88000** |
|  (SVK Metrix Inc./Jeet Basi)<sup>(iii)</sup> | 2021 | $— | $— | $— | $— |
|  CFO | **2022** | $**15484** | $**—** | $**—** | $**4583** |
|  (Koral Financial Inc./Olga Balanovskaya)<sup>(iv)</sup> | 2021 | $— | $— | $— | $— |
|  Former CEO & Director | **2022** | $**26000** | $**89764** | $**—** | $**83** |
|  (Basil Botha) | 2021 | $— | $51763 | $103821 | $— |
|  Former CTO & Director | **2022** | $**—** | $**34745** | $**—** | $**—** |
|  (Howard Glicksman) | 2021 | $— | $16479 | $65293 | $— |
|  Former Independent Director | **2022** | $**—** | $**—** | $**—** | $**—** |
|  (Jeremy Blum) | 2021 | $— | $— | $7500 | $— |
|  | **2022** | $**223537** | $**124509** | $**—** | $**282219** |
|  **Total** | 2021 | $— | $68242 | $310950 | $— |

---

____________

i) For the six months ended 30 June 2022 and 2021.

ii) Amounts disclosed were paid or accrued to the related party.

iii) Appointed CEO and director as at 1 March 2022.

iv) Appointed CFO as at 15 March 2022.

These transactions were in the normal course of operations, which is the amount of consideration established and agreed to by the related parties.

#### 18) Capital management
The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to pursue the Company's objectives. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.

In the management of capital, the Company includes its cash balances and components of shareholders' equity. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue debt, acquire or adjust the amount of cash and cash equivalents and investments.

At this stage of the Company's development, in order to maximize ongoing development efforts, the Company does not pay out dividends. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

[**Table of Contents**](#TOC001)

#### Modern Mining Technology Corp.

#### For the Six Months Ended 30 June 2022 and 2021

#### (Unaudited) us dollars

#### Notes to the Condensed Consolidated Interim Financial Statements

#### 19) Segmented information
The Company has one operating segment, which is the refinement of precious metals from electronic waste in the US. The following table provides segmented disclosure on assets and liabilities as reviewed by management regularly by geographical location:

---

| | | | |
|:---|:---|:---|:---|
|  **(Rounded to 000's)** | **US** | **Canada** | **Total** |
|  **30 June 2022** |  |  |  |
|  Current assets | $**69000** | $**2258000** | $**2327000** |
|  Current liabilities | $**(213000)** | $**(731000)** | $**(944000)** |
|  **31 December 2021** |  |  |  |
|  Current assets | $95000 | $1219000 | $1314000 |
|  Current liabilities | $(189000) | $(1702000) | $(1891000) |

---

#### 20) Commitment
The Company entered into a facility lease agreement which was originally set to expire in August 2025. On 22 October 2021, the lease was terminated. Upon termination of the lease, described in Note 14), a commitment to pay a termination fee of $70,000 was payable in 7 instalments ($10,000 per month starting on 1 December 2021). The termination fee may be prepaid in full at any time. As at 30 June 2022, $nil (31 December 2021 — $50,000) was outstanding and recorded in accounts payable and accrued liabilities because the Company has satisfied the lease termination fee.

In March 2022, the Company has entered into two (2) consulting contracts in respect of corporate development, merger & acquisition and market advisory services, as well as project management and advisory services to the Company. These consulting contracts shall continue for 12 months from the effective date, unless terminated earlier in accordance with their terms. The total compensation is CAD$11,666 per month, plus taxes.

In February 2022, the Company has entered into the transition agreement with the related party, former CEO & Director, to provide technical advisory services at $14,000 per month payable until eighteen (18) months following the date of completion of the offering. Mr. Botha will also be entitled to a one-time bonus of $50,000 upon Mr. Botha assisting the Company in (i) securing the lease of the new Facility, (ii) assisting in the commissioning of key pilot plant equipment and (iii) managing the engineering study presently being conducted by a third party process modelling and industrial optimization firm. It was further agreed to repay the short-term loan of $78,050 plus interest within ten (10) days of closing of the offering.

In January 2022, The Company has engaged the firm underwriting of the proposed initial public offering whereby the Company will pay an underwriting discount of 7% of the public offering price and expense allowance equal to 1% of the public offering price. In addition, the Company shall issue the warrants to purchase that number of shares equal to 5% of the aggregate number of shares sold in the offering, exercisable during the four- and one-half-year period, commencing 180 days from the offering, at a price per share equal to 125% pf the public offering price per share.

#### 21) Subsequent events
On September 21, 2022, the Company entered into a lease agreement with Grand Ventures, LLC, a North Carolina limited liability company, for the lease of the Company's North Carolina facility for E-Waste feedstock processing. The lease term is for three years, with a right to extend for three additional one year terms. Annual rent during the first three lease years is $120,000, payable in monthly installments of $10,000. This is subject to adjustment upon extension of the lease term. A security deposit in the amount of $30,000 was paid upon execution of the lease and will be returned without interest at the end of the term, or upon the earlier termination within the conditions of this lease.

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 **Common Shares**

#### Modern Mining Technology Corp.

#### ____________________________

#### PRELIMINARY PROSPECTUS

#### ____________________________

#### ThinkEquity
, 2022

Until and including , 2022 (the 25<sup>th</sup> day after the date of this Prospectus), all dealers that effect transactions in these securities, whether or not participating in this Offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

------

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#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 6. Indemnification of Directors and Officers.
<u><u>Business Corporations Act (British Columbia)</u></u>

Division 5 of Part 5 of the *Business Corporations Act* (British Columbia) ("**BCBCA**") provides that a corporation may (a) indemnify an eligible party against all eligible penalties to which the eligible party is or may be liable and (b) after the final disposition of an eligible proceeding, pay the expenses (not including judgments, penalties, fines or amounts paid in settlement of a proceeding) actually and reasonably incurred by an eligible party in respect of that proceeding.

An "eligible party" means an individual who (a) is or was a director or officer of the corporation, (b) is or was a director or officer of another corporation (i) at a time when the corporation is or was an affiliate of the corporation, or (ii) at the request of the corporation, or (c) at the request of the corporation, is or was, or holds or held a position equivalent to that of, a director or officer of a partnership, trust, joint venture or other unincorporated entity. An "eligible proceeding" means a proceeding in which an eligible party or any of the heirs and personal or other legal representatives of the eligible party, by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the corporation or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding.

A corporation must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by the eligible party in respect of that proceeding if the eligible party (a) has not been reimbursed for those expenses, and (b) is wholly successful, on the merits or otherwise, in the outcome of the proceeding or is substantially successful on the merits in the outcome of the proceeding.

A corporation may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding, provided the corporation first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited, the eligible party will repay the amounts advanced.

A corporation must not indemnify an eligible party or pay the expenses of an eligible party if any of the following circumstances apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the indemnity or payment is made under an earlier agreement to indemnify or pay expenses and, at the time that the agreement to indemnify or pay expenses was made, the corporation was prohibited from giving the indemnity or paying the expenses by its memorandum or articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the indemnity or payment is made otherwise than under an earlier agreement to indemnify or pay expenses and, at the time that the indemnity or payment is made, the corporation is prohibited from giving the indemnity or paying the expenses by its memorandum or articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if, in relation to the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view to the best interests of the corporation or the associated corporation, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of an eligible proceeding other than a civil proceeding, if the eligible party did not have reasonable grounds for believing that the eligible party's conduct in respect of which the proceeding was brought was lawful.

If an eligible proceeding is brought against an eligible party by or on behalf of the corporation or by or on behalf of an associated corporation, the corporation must not (a) indemnify the eligible party in respect of the proceeding or (b) pay the expenses of the eligible party in respect of the proceeding.

[**Table of Contents**](#TOC001)

A corporation may purchase and maintain insurance for the benefit of an eligible party or the heirs and personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the corporation or an associated corporation.

<u><u>Articles</u></u>

Our articles provide that our directors must cause our company to indemnify our directors and former directors, and their respective heirs and personal or other legal representatives to the greatest extent permitted by Division 5 of Part 5 of the BCBCA and each director is deemed to have contracted with our company on this term.

<u><u>Indemnification Agreements</u></u>

We also entered into indemnification agreements with each of our executive officers and directors. The indemnification agreements provide the indemnitees with contractual rights to indemnification, and expense advancement and reimbursement, to the fullest extent permitted under British Columbia law.

#### Item 7. Recent Sales of Unregistered Securities.
<u><u>During the year ended December 31, 2022</u></u>

On April 7, 2022, the Company issued $3,331,390 principal amount of 5% unsecured convertible debentures in a private placement. The debentures bear interest at five percent (5%) per annum. The debentures are due thirty-six (36) months following their issuance (on April 7, 2025). The Debenture Indenture executed in relation to the debentures also provides that in the event the Company completes a U.S. listing (such as the Offering), the principal amount plus any accrued unpaid interest will automatically convert into Common Shares at a conversion price equal to the lessor of (A) a 40% discount to the Offering Price, and (B) $5.00. In connection with the Debenture Offering, the Company paid $156,994.50 in commissions to various investment dealers/brokers.

<u><u>During the year ended December 31, 2021:</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2021, 133,333 units of UMI were issued at a price of $0.45 per common share. Each unit included one warrant allowing the owner to purchase one share at $0.90 over a three-year period. The fair value of these 133,333 warrants is $15,800, and these warrants will expiry on 15 January 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2021, 691,000 common shares of UMI were issued to officers and directors of the Company at $0.45 per common share. The fair value of the common shares granted was $310,950.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 28, 2021, UMI issued 49,500,000 UMI Warrants to investors in a private placement. Each UMI Warrant was issued for consideration of C$0.0035 for aggregate gross proceeds of C$173,250 ($137,365). Upon completion of the Consolidation, the UMI Warrants were consolidated into 16,500,000 Investor Rights Warrants issued for consideration of $0.0105 per warrant and exercisable for $0.20 for three (3) years from the closing of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On August 30, 2021, the Company granted 5,000,000 performance warrants with an exercise price of $0.05 vesting upon $10,000,000 and $20,000, 0000 in gross sales targets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 9, 2021, the Company completed a private placement offering of 1,270,149 Common Shares at a price of $0.50 per share for total proceeds of $635,075, share issuance costs of $6,245 and no finders' fees.

<u><u>During the year ended December 31, 2020:</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 30, 2020, 712,356 preferred shares of UMI were converted to common shares on a 1:1 conversion basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, 3,476,667 units of UMI were issued as part of a private placement at a price of $0.15 per unit. Each unit consisted of one common share and one common share purchase warrant. Each warrant entitled

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the holder thereof to purchase one additional common share at an exercise price of $0.45 per share for three years from the completion of the private placement. As a result, 3,476,666 warrants were issued with the fair value of $115,500.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, 1,381,999 common shares of UMI were issued to officers and directors at $0.15 per share. The fair value of the common shares issued was $210,050.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2020, as part of a debt settlement arrangement entered into with various vendors of UMI, 196,233 units were issued to settle debt valued at $95,574. Each unit consisted of one common share and one-half of one common share purchase warrant. Each full warrant entitled the holder thereof to purchase one share of common shares of UMI at an exercise price of $0.45 per share for three years from the completion of the private placement. As a result, 98,117 warrants were granted as debt settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2020, 36,667 common shares were issued to employees of UMI at $0.15 per share. The fair value of the common shares issued was $2,750.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2020, 74,851 common shares of UMI were issued at $0.45 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During 2020, 830,138 common shares of UMI were redeemed.

<u><u>During the year of inception:</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UMI issued 1,416,667 common shares for total cash consideration of $564.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There were no share options issued during the last three years or prior to.

Note: all numbers above have been adjusted to give effect to the 3:1 consolidation of UMI's common shares effected on August 24, 2021.

None of the foregoing transactions involved any underwriters, underwriting discounts or any public offering. The issuances of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder, as transactions by an issuer not involving any public offering, or were issued in reliance upon Regulation S of the Securities Act, to an investor who is an "accredited investor," as such term is defined in Rule 501(a) under the Securities Act, in an offshore transaction (as defined in Rule 902 under Regulation S of the Securities Act), based upon representations made by such investor.

#### Item 8. Exhibits and Financial Statements Schedule
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following exhibits are filed as part of this Registration Statement and are numbered in accordance with Item 601 of Regulation S-K:

---

| | |
|:---|:---|
|  **Exhibit Number** | **Description** |
|  1.1\*\* | Form of Underwriting Agreement |
|  2.1\* | Merger Agreement and Plan of Reorganization among 1285896 B.C. Ltd. and Urban Mining International Inc. and Urban Mining Merger Sub, Inc. dated August 19, 2021, and amended August 26, 2021. |
|  3.1\* | Certificate of Incorporation of Modern Mining Technology Corp. |
|  3.2\*+ | Notice of Articles of Modern Mining Technology Corp. |
|  3.3\* | Articles of Modern Mining Technology Corp. |
|  4.1\* | Indenture between Modern Mining Technology Corp. and Computershare Trust Company of Canada dated April 7, 2022. |
| 4.2 | [Investor Rights Agreement dated July 13, 2022 between Modern Mining Technology Corp. and Kuljit (Jeet) Basi.](drs2023a2ex4-2_modernmin.htm) |
|  4.3\* | Investor Rights Agreement dated August 31, 2022 between Modern Mining Technology Corp. and Kuljit (Jeet) Basi. |
| 4.4 | [Amendment to Investor Rights Agreement dated November 3, 2022 between Modern Mining Technology Corp. and Kuljit (Jeet) Basi.](drs2023a2ex4-4_modernmin.htm) |
|  5.1\*\* | Form of Opinion of Aird & Berlis LLP. |
|  8.1\*\* | Form of Opinion of Aird & Berlis LLP as to Canadian tax matters (included in Exhibit 5.1). |

---

[**Table of Contents**](#TOC001)

---

| | |
|:---|:---|
|  **Exhibit Number** | **Description** |
|  10.1\*§ | Equity Incentive Plan dated July 6, 2022. |
|  10.2\* | Form of Indemnity Agreement with directors and executive officers. |
|  10.3\* | Interest Bearing Promissory Note payable by Urban Mining International Inc. to Basil Botha dated July 15, 2021. |
|  10.4\* | Interest Bearing Promissory Note payable by Urban Mining International Inc. to Basil Botha dated March 29, 2021. |
|  10.5\* | Interest Bearing Promissory Note payable by Urban Mining International Inc. to Basil Botha dated March 15, 2021. |
|  10.6\* | Form of Common Share Subscription Agreement in connection with the Modern Mining Technology Corp.'s November 9, 2021 private placement. |
|  10.7\* | Form of Warrant Subscription Agreement in connection with the Modern Mining Technology Corp.'s July 28, 2021 private placement. |
| 10.8 | [Form of Investor Rights Warrant dated August 7, 2021.](drs2023a2ex10-8_modernmin.htm) |
| 10.9 | [Form of Performance Warrant exercisable upon $10,000,000 and $20,000,000 gross sales, respectively, dated August 30, 2021.](drs2023a2ex10-9_modernmin.htm) |
| 10.10 | [Form of Share Award Agreement dated February 1, 2021 between Urban Mining International Inc. and various directors.](drs2023a2ex10-10_modernmin.htm) |
| 10.11 | [Form of Subscription Agreement to purchase shares of common shares and warrants of Urban Mining International, Inc., dated January 2021.](drs2023a2ex10-11_modernmin.htm) |
| 10.12 | [Form of Subscription Agreement to purchase shares of common shares and warrants of Urban Mining International, Inc., dated July 2020.](drs2023a2ex10-12_modernmin.htm) |
| 10.13 | [Form of Share Award Agreement dated July 2020 by Urban Mining International Inc.](drs2023a2ex10-13_modernmin.htm) |
| 10.14 | [Form of Subscription Agreement to purchase shares of common shares of Urban Mining International, Inc., dated November 2020.](drs2023a2ex10-14_modernmin.htm) |
| 10.15 | [Form of Share Award Agreement dated November 18, 2020 by Urban Mining International Inc.](drs2023a2ex10-15_modernmin.htm) |
|  10.16+ | [Transition Agreement, dated February 28, 2022 between Modern Mining Technology Corp. and Basil Botha.](drs2023a2ex10-16_modernmin.htm) |
| 10.17 | [Lease Agreement, dated September 21, 2022, between Modern Mining Technology Corp. and Grand Ventures, LLC.](drs2023a2ex10-17_modernmin.htm) |
|  14.1\* | Code of Business Conduct and Ethics of Modern Mining Technology Corp. |
|  14.2\* | Whistleblower Policy of Modern Mining Technology Corp. |
|  14.3\* | Related Party Transactions Policy of Modern Mining Technology Corp. |
|  14.4\* | Conflict Minerals Policy |
|  21.1\* | List of subsidiaries of Modern Mining Technology Corp. |
|  23.1\*\* | Consent of Aird & Berlis LLP (included in Exhibit 5.1). |
|  23.2\*\* | Consent of MNP LLP, independent registered public accounting firm. |
|  24.1\* | [Power of Attorney (included on the signature page to this Registration Statement).](#T551) |
|  99.1\* | Request for Waiver under Item 8.A.4. |
|  107\*\* | Filing Fee Table |

---

____________

**\*** Previously filed.

\*\* To be filed by Amendment.

§ Indicates compensatory plan.

+ Certain portions of this exhibit (indicated by "[\*\*\*]") have been omitted pursuant to Regulation S-K, Item (601)(b)(10).

[**Table of Contents**](#TOC001)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Statements Schedules

See our Financial Statements starting on page F-1. All other schedules have been omitted because they are not required, are not applicable or the information is otherwise set forth in the financial statements and related notes thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Filing Fee

A table furnishing the calculation of filing fees paid for the securities being registered hereby is set forth in Exhibit 107 to this Registration Statement in the manner required by Item 601(b)(107) of Regulation S-K.

#### Item 9. Undertakings
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) That, for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A under the Securities Act and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

[**Table of Contents**](#TOC001)

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Colombia, Canada on March 10, 2023.

---

| | | |
|:---|:---|:---|
|  | **Modern Mining Technology Corp.** | **Modern Mining Technology Corp.** |
|  Date: March 10, 2023 | By: |  |
|  |  | Name: Kuljit (Jeet) Basi |
|  |  | Title: President and Chief Executive Officer |

---

#### POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints • his or her true and lawful attorney-in-fact and agent, with full power of substitution, for her or him and in her or his name, place and stead, in any and all capacities, to sign any and all amendments to this Form 1 registration statement, and to file the same with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and ratifying and confirming all that said attorney-in-fact and agent or her or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
|  |  | Date: March 10, 2023 |
|  Name:<br> Title: | Kuljit (Jeet) Basi<br> President, Chief Executive Officer and Director<br> (Principal Executive Officer) |  |
|  |  | Date: March 10, 2023 |
|  Name:<br> Title: | Olga Balanovskaya<br> Chief Financial Officer<br> (Principal Financial Officer and<br>Principal Accounting Officer) |  |
|  |  | Date: March 10, 2023 |
|  Name:<br> Title: | Sean Bromley<br> Director |  |
|  |  | Date: March 10, 2023 |
|  Name:<br> Title: | Matt Chatterton<br> Director |  |
|  |  | Date: March 10, 2023 |
|  Name:<br> Title: | Mark Zorko<br> Director |  |
|  |  | Date: March 10, 2023 |
|  Name:<br> Title: | Michael Hepworth<br> Director |  |

---

[**Table of Contents**](#TOC001)

#### Signature of Authorized U.S. Representative of Registrant
Pursuant to the requirements of the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of Modern Mining Technology Corp., has signed this registration statement on March 10, 2023.

      <br>   <u> Name: Mark Zorko </u>

## Exhibit 4.2

**Exhibit 4.2**

**INVESTOR RIGHTS AGREEMENT**

**MODERN MINING TECHNOLOGY CORP.**

**and**

**JEET BASI** 

**(as representative of the holders of Warrants)**

**July 13, 2022**

**INVESTOR RIGHTS AGREEMENT**

This Investor Rights Agreement (this "**Agreement**") is made the 13th day of July, 2022.

**BETWEEN:**

**MODERN MINING TECHNOLOGY CORP.**

(the "**Company**")

- and -

**JEET BASI**

(the "**Warrantholder Representative**")

**WHEREAS** Urban Mining International Inc. ("**Urban Mining**"), the Company's wholly-owned subsidiary, and certain investors (the "**Investors**") entered into subscription agreements whereby such investors purchased an aggregate of 49,500,000 warrants (the "**Urban Mining Warrants**") to acquire common shares of Urban Mining;

**AND WHEREAS** on August 31, 2021, the Company acquired all the issued and outstanding shares of Urban Mining pursuant to a Merger Agreement and Plan of Reorganization dated August 18, 2021 (the "**Merger Agreement**") among the Company, Urban Mining and Urban Mining Merger Sub, Inc.,

**AND WHEREAS** pursuant to the terms of the Merger Agreement, the Company issued common share purchase warrants (the "**Warrants**") in exchange for the Urban Mining Warrants resulting in an issuance of an aggregate of 16,500,000 Warrants, on the same terms and conditions of the Urban Mining Warrants;

**AND WHEREAS** the Company has agreed to grant the Investors certain additional rights as set out herein;

**AND WHEREAS** the Investors have agreed that Jeet Basi shall act as a representative of the Investors;

**THIS AGREEMENT WITNESSES THAT** in consideration of the respective covenants and agreements of the Parties herein contained 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> INTERPRETATION**

**1.1** **Defined Terms** 

For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:

"**Act**" means the *Business Corporations Act* (British Columbia);

"**Affiliate**" has the meaning ascribed to such term in the Act, as in effect on the date of this Agreement;

"**Board**" means the board of directors of the Company;

"**Business Day**" means any day, other than (i) a Saturday, Sunday or statutory holiday in the Province of British Columbia; and (ii) a day on which banks are generally closed in the Province of British Columbia;

"**Common Shares**" means the common shares in the capital of the Company issued and outstanding from time to time and includes any common shares that may be issued hereafter;

"**Exchange**" means the New York Stock Exchange, the NYSE American or the National Association of Securities Dealers Automated Quotations, Toronto Stock Exchange, TSX Venture Exchange, or such other stock exchange in Canada or the United States where the Common Shares may be listed from time to time;

"**Parties**" means the parties to this Agreement and "**Party**" means one of them; and

"**Warrants**" has the meaning set out in the recitals hereto.

**1.2** **Rules of Construction** 

Except as may be otherwise specifically provided in this Agreement and unless the context otherwise requires, in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) references to an "Article" or "Section" followed by a number or letter refer to the specified Article or Section to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the division of this Agreement into articles and sections and the insertion of headings are 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;&nbsp;&nbsp;&nbsp;&nbsp;(d) 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) the word "including" is deemed to mean "including without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any reference to this Agreement means this Agreement as amended, modified, replaced or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any reference to a statute, regulation or rule shall be construed to be a reference thereto as the same may from time to time be amended, re-enacted or replaced, and any reference to a statute shall include any regulations or rules made thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all dollar amounts refer to Canadian dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all references to a percentage ownership of shares shall be calculated on a non-diluted basis, unless otherwise indicated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any time period within which a payment is to be made or any other action is to be taken hereunder 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;&nbsp;&nbsp;&nbsp;&nbsp;(k) 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** **Entire Agreement** 

This Agreement constitute the entire agreement between the Parties with respect to the subject matter hereof and thereof and supersedes all prior agreements, understandings, negotiations and discussions, whether written or oral. There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter hereof except as provided in the aforesaid agreements.

**1.4** **Time of Essence** 

Time shall be of the essence of this Agreement.

**1.5** **Governing Law and Submission to Jurisdiction** 

This Agreement shall be interpreted and enforced in accordance with, and the respective rights and obligations of the Parties shall be governed by, the laws of the Province of British Columbia and the federal laws of Canada applicable in that province.

Each of the Parties irrevocably and unconditionally (i) submits to the exclusive jurisdiction of the courts of the Province of British Columbia in the City of Vancouver over any action or proceeding arising out of or relating to this Agreement, (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.

**1.6** **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 hereby is not affected in any manner materially adverse to either Party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

**Article 2<br> VOTING RIGHT**

**2.1** **Grant of Voting Right** 

The Company agrees that each Investor (directly or through an Affiliate) shall be entitled to receive notice of and to attend any meeting of the shareholders of the Company and to vote, as a separate class, on any matter at any meetings of shareholders of the Company. Each Warrant entitles the holder thereof to one vote per Warrant.

**Article 3<br> MISCELLANEOUS**

**3.1** **Nomination of Director(s)** 

The Warrantholder Representative shall be entitled to nominate three (3) directors to the Board, provided that each director nominee shall be a Canadian resident and shall meet the requirements of applicable corporate, securities and other laws, including the rules of the Exchange, if applicable. If permitted by applicable law and, if applicable, Exchange rules, the Company shall appoint such director(s) to the Board. In respect of any meeting of shareholders at which directors are to be elected, the Company shall take all actions necessary and advisable to ensure that (i) proxies are solicited by or on behalf of the Company in favour of the election of the director nominees nominated in accordance with this Section 3.1 and (ii) every such nominee is endorsed and recommended in the applicable management information circular and other proxy solicitation materials provided by or on behalf of the Company to shareholders. The Company shall take all other commercially reasonable actions necessary to permit the election or appointment to the Board of such nominees. The Company shall notify the Representative when such thresholds are achieved, and at least 20 Business Days prior to the dissemination of materials for an annual meeting of shareholders, to allow the Representative to identify its nominees (which the Representative shall provide to the Company at least five (5) Business Days prior to the dissemination of such materials).

**3.2** **Termination** 

This Agreement shall terminate on the earlier of (i) the date that Investors and its Affiliates does not own, directly or indirectly, any Warrants and (ii) the expiry date of the Warrants.

**3.3** **Notices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be delivered in person, transmitted by e-mail or similar means of recorded electronic communication or sent by registered mail, charges prepaid, addressed as follows:

&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 the Representative:

[●]

Email: [●]

&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 the Company:

Modern Mining Technology Corp.<br> 1500-1055 West Georgia Street

Vancouver, British Columbia

V6E 4N7

Attention: [●]<br> Email: [●]

With a copy to:

McMillan LLP

1500-1055 West Georgia Street

Vancouver, British Columbia Attention:

Desmond Balakrishnan

Email: desmond.balakrishnan@mcmillan.ca

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any such notice or other communication shall be deemed to have been given and received on the day on which it was delivered or transmitted (or, if such day is not a Business Day or if delivery or transmission is made on a Business Day after 5:00 p.m. local time at the place of receipt, then on the next following Business Day) or, if mailed, on the third Business Day following the date of mailing; provided, however, that if at the time of mailing or within three Business Days thereafter there is or occurs a labour dispute or other event which might reasonably be expected to disrupt the delivery of documents by mail, any notice or other communication hereunder shall be delivered or transmitted by means of recorded electronic communication as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Party may at any time change its address for service from time to time by giving notice to the other Party in accordance with this Section 3.3.

**3.4** **Amendments and Waivers** 

No amendment or waiver of any provision of this Agreement shall be binding on any Party unless consented to in writing by such Party. No waiver of any provision of this Agreement shall constitute a waiver of any other provision, nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided.

**3.5** **Assignment** 

No Party may assign any of its rights or benefits under this Agreement, or delegate any of its duties or obligations, except with the prior written consent of the other Parties, such consent to be in their sole discretion. Notwithstanding the forgoing, the Parties agree that Investor may assign this Agreement to an Affiliate provided that Investor agrees to remain bound by the terms of this Agreement.

**3.6** **Successors and Assigns** 

This Agreement shall enure to the benefit of and shall be binding on and enforceable by and against the Parties and their respective successors or heirs, executors, administrators and other legal personal representatives, and permitted assigns.

**3.7** **Expenses** 

Except as otherwise expressly provided in this Agreement, each Party will pay for its own costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated herein, including the fees and expenses of legal counsel, financial advisors, accountants, consultants and other professional advisors.

**3.8** **Further Assurances** 

Each of the Parties hereto shall, from time to time hereafter and upon any reasonable request of the other, promptly do, execute, deliver or cause to be done, executed and delivered all further acts, documents and things as may be required or necessary for the purposes of giving effect to this Agreement.

**3.9** **Right to Injunctive Relief** 

The Parties agree that any breach of the terms of this Agreement by any of the Parties may result in immediate and irreparable injury and damage to the other Parties which may not be adequately compensated by damages. The Parties therefore also agree that in the event of any such breach or any anticipated or threatened breach by the defaulting Party, the other Parties shall be entitled to seek equitable relief, including by way of temporary or permanent injunction or specific performance, in addition to any other remedies (including damages) to which such other Parties may be entitled at law or in equity.

**3.10** **Counterparts** 

This Agreement may be executed and delivered in any number of counterparts, by facsimile copy, by electronic or digital signature or by other written acknowledgement of consent and agreement to be legally bound by its terms. Each counterpart when executed and delivered will be considered an original but all counterparts taken together constitute one and the same instrument.

**[Remainder of page intentionally left blank]** 

IN WITNESS WHEREOF this Agreement has been executed by the Parties on the date first above written.

---

| | | |
|:---|:---|:---|
| **MODERN MINING TECHNOLOGY CORP.** | **MODERN MINING TECHNOLOGY CORP.** | **MODERN MINING TECHNOLOGY CORP.** |
| By: | /s/ Jeet Basi | /s/ Jeet Basi |
|  | Name: | Jeet Basi |
|  | Title: | Chief Executive Officer |
| /s/ Jeet Basi | /s/ Jeet Basi | /s/ Jeet Basi |
| **Jeet Basi** | **Jeet Basi** | **Jeet Basi** |

---

INVESTOR RIGHTS AGREEMENT

## Exhibit 4.4

**Exhibit 4.4**

**INVESTOR RIGHTS AMENDING AGREEMENT**

This Investor Rights Amending Agreement (this "**Agreement**") is made the 3rd day of November, 2022.

**BETWEEN:**

**MODERN MINING TECHNOLOGY CORP.**

(the "**Company**")

- and -

**JEET BASI**

(the "**Warrantholder Representative**")

**WHEREAS** the Company entered into an Investor Rights Agreement (the "**Original Agreement**") dated July 13, 2022 with the Warrantholder Representative, as representative for the Investors, to grant the Investors certain rights as set out therein;

**AND WHEREAS** the Company and the Warrantholder Representative desire to amend the Original Agreement to provide that the Original Agreement shall terminate in the event the Company completes an initial public offering of its common shares on a U.S. stock exchange;

**THIS AGREEMENT WITNESSES THAT** in consideration of the respective covenants and agreements of the Parties herein contained and for other good and valuable consideration (the receipt and sufficiency of which are acknowledged by each Party), the Parties agree as follows:

**1.1** **Defined Terms** 

For the purposes of this Agreement, unless otherwise defined, all terms shall have the respective meanings ascribed thereto in the Original Agreement.

**1.2** **Amendment** 

The Original Agreement is hereby amended to delete Paragraph 3.2 in its entirety, and replace it with the following:

**3.2** **Termination** 

This Agreement shall terminate on the earliest of (i) the date that Investors and its Affiliates does not own, directly or indirectly, any Warrants (ii) the expiry date of the Warrants, and (iii) immediately prior to the completion by the Company of an initial public offering of its common shares and listing on a U.S stock exchange.

**1.3** **Original Agreement Still in Effect** 

The Original Agreement and this Agreement shall together constitute and be read as one and the same written instrument. Except as otherwise amended by the foregoing, the provisions of the Original Agreement shall be and continue in full force and effect and are hereby confirmed as of the date hereof.

**1.4** **Governing Law** 

This Agreement shall be interpreted and enforced in accordance with, and the respective rights and obligations of the Parties shall be governed by, the laws of the Province of British Columbia and the federal laws of Canada applicable in that province.

**1.5** **Successors and Assigns** 

This Agreement shall enure to the benefit of and shall be binding on and enforceable by and against the Parties and their respective successors or heirs, executors, administrators and other legal personal representatives, and permitted assigns.

**1.6** **Counterparts** 

This Agreement may be executed and delivered in any number of counterparts, by facsimile copy, by electronic or digital signature or by other written acknowledgement of consent and agreement to be legally bound by its terms. Each counterpart when executed and delivered will be considered an original but all counterparts taken together constitute one and the same instrument.

**[Remainder of page intentionally left blank]**

IN WITNESS WHEREOF this Agreement has been executed by the Parties on the date first above written.

---

| | | |
|:---|:---|:---|
| **MODERN MINING TECHNOLOGY CORP.** | **MODERN MINING TECHNOLOGY CORP.** | **MODERN MINING TECHNOLOGY CORP.** |
| By: | /s/ Jeet Basi | /s/ Jeet Basi |
|  | Name: | Jeet Basi |
|  | Title: | Chief Executive Officer |
| /s/ Jeet Basi | /s/ Jeet Basi | /s/ Jeet Basi |
| **JEET BASI** | **JEET BASI** | **JEET BASI** |

---

INVESTOR RIGHTS AMENDING AGREEMENT

## Exhibit 10.8

**Exhibit 10.8**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;No.:W2021-[X] | &nbsp;&nbsp; <br> **1055 West Georgia Street, 1500 Royal Centre,** <br> **Vancouver, BC V6E 4N7**<br> Continued under the *Business Corporations Act* (British Columbia) |  |
| &nbsp;&nbsp;No.:W2021-[X] | &nbsp;&nbsp; <br> **1055 West Georgia Street, 1500 Royal Centre,** <br> **Vancouver, BC V6E 4N7**<br> Continued under the *Business Corporations Act* (British Columbia) |  |
|  | &nbsp;&nbsp; <br> **1055 West Georgia Street, 1500 Royal Centre,** <br> **Vancouver, BC V6E 4N7**<br> Continued under the *Business Corporations Act* (British Columbia) |  |
|  | **WARRANT CERTIFICATE** |  |
| &nbsp;&nbsp;THIS CERTIFICATE ATTESTS THAT | **[NAME OF HOLDER]** |  |
|  | **[NAME OF HOLDER]** |  |
| &nbsp;&nbsp;**Is the registered holder of** |  | &nbsp;&nbsp;**[NUMBER] WARRANTS** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | **EXERCISE FORM**<br> (COMPLETE THIS FORM ONLY IF YOU ARE EXERCISING WARRANTS FOR COMMON SHARES) | **EXERCISE FORM**<br> (COMPLETE THIS FORM ONLY IF YOU ARE EXERCISING WARRANTS FOR COMMON SHARES) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | TO: MODERN MINING TECHNOLOGY CORP. (the "**Corporation**") | TO: MODERN MINING TECHNOLOGY CORP. (the "**Corporation**") |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | The undersigned holder hereby exercises its right to purchase Common Shares and hereby subscribes for _____________ Common Shares in the capital of the Corporation at an exercise price equal to Cdn$0.25 per Common Share pursuant to the terms and conditions of this Warrant Certificate and hereby delivers the total payment of the exercise price for the number of subscribed Common Shares. | The undersigned holder hereby exercises its right to purchase Common Shares and hereby subscribes for _____________ Common Shares in the capital of the Corporation at an exercise price equal to Cdn$0.25 per Common Share pursuant to the terms and conditions of this Warrant Certificate and hereby delivers the total payment of the exercise price for the number of subscribed Common Shares. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | The undersigned holder hereby exercises its right to purchase Common Shares and hereby subscribes for _____________ Common Shares in the capital of the Corporation at an exercise price equal to Cdn$0.25 per Common Share pursuant to the terms and conditions of this Warrant Certificate and hereby delivers the total payment of the exercise price for the number of subscribed Common Shares. | The undersigned holder hereby exercises its right to purchase Common Shares and hereby subscribes for _____________ Common Shares in the capital of the Corporation at an exercise price equal to Cdn$0.25 per Common Share pursuant to the terms and conditions of this Warrant Certificate and hereby delivers the total payment of the exercise price for the number of subscribed Common Shares. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | Number of Common Shares: | Total exercise price: $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | <br> DATED this _____day of _______________, 20____ | <br> DATED this _____day of _______________, 20____ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | Complete name of the subscriber | Signature of the subscriber |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS CERTIFICATE ATTESTS THAT the registered holder of this Warrant Certificate has the right to purchase, at any time, until 5:00 p.m. (Toronto time) on that date which is three (3) years following the Corporation's initial public offering of its common shares on Nasdaq, the number of common shares (the "**Common Shares**") as fully paid and non-assessable in the capital of Modern Mining Technology Corp. (hereinafter the "**Corporation**"), pursuant to the number of hereinabove warrants granted, subject to the terms and conditions contained herein, at an exercise price of Cdn.$0.25. **Unless permitted under applicable securities legislation, the holder of this Warrant Certificate and the Common Shares issued following the exercise of any warrants underlying this Warrant Certificate must not trade such securities before the date that is 4 months and a day after the later (i) July 28, 2021 and (ii) the date the Corporation becomes a reporting issuer in any province or territory.** <br>IN WITNESS WHEREOF THE Corporation caused this Warrant Certificate to be signed by of its duly authorized officer as of the 30th day of August, 2021.<br>**MODERN MINING TECHNOLOGY CORP.**<br>By: ___________________________<br> Name: Thomas A. Fenton<br> Title: Corporate Secretary | Subscriber's complete address | Subscriber's complete address |

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**TERMS AND CONDITIONS**

**1. Exercise of warrant; partial exercise.** The preferred share purchase warrants of the Corporation may only be exercised by the registered holder thereof within the time stipulated on the front of this Warrant Certificate by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** signing and filling out the exercise form on the front of this Warrant Certificate
; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** delivering this Warrant Certificate to the Secretary of the Corporation,
at the head office at 1055 West Georgia Street, 1500 Royal Centre, Vancouver, BC, V6E 4N7, accompanied by a wire transfer in the name
of the Corporation, in Canadian dollars, for the applicable exercise price for the subscribed Common Shares.

Upon delivery and payment as mentioned above, the registered holder, shall be deemed, for all purposes, the registered holder of the number of Common Shares of the Corporation that must be issued to such holder: (i) shall have the right to receive one or more share certificates (or DRS advices) representing these Common Shares; and (ii) the Corporation shall cause the share certificate(s) (or DRS advices) to be mailed to the registered holder at the address indicated in the exercise form within ten days of the delivery and of the payment. The registered holder of the Warrant Certificate may subscribe or purchase any number of whole Common Shares lower than the number of Common Shares that it may purchase pursuant to the terms of this Warrant Certificate; in that case, it has the right to receive a new certificate for the remainder of the warrants that were not exercised at the time of this exercise and purchase. The possession of this Warrant Certificate shall not make its holder a shareholder of the Corporation and shall not grant any right or interest with regards to this Warrant Certificate, except as expressly provided herein.

**2. Transfer Prohibited.** This Warrant Certificate is non-assignable and non-transferable by the holder, without the prior written approval of the Corporation.

The holder of this Warrant Certificate may, at any time before its expiration date and upon delivery of this Warrant Certificate to the Corporation's Secretary at its head office, exchange this Warrant Certificate for certificates of any other denomination, attesting the same total number of warrants as those attested in this Warrant Certificate.

**3. Replacement of certificates.** Upon receipt of reasonably satisfactory evidence for the Corporation of the loss, theft, destruction or mutilation of this Warrant Certificate and, in case of such loss, theft or destruction, upon receipt of an indemnification agreement in a form and amount reasonably satisfactory to the Corporation or, in case of such mutilation, upon delivery and cancellation of this Warrant Certificate, the Corporation, at its expense, shall execute and deliver a new replacement certificate of the same content and denomination.

**4. Adjustment of the exercise price and the shares that may be issued at the time of the exercise.** At any time after the date hereof, if the Corporation splits or consolidates its issued Common Shares, the exercise price and the number of Common Shares that may be purchased under this Warrant Certificate for every warrant shall be adjusted accordingly.

In the event of a reclassification or modification of the Common Shares which have been issued (other than a split or consolidation) after the date hereof, or in the event of a consolidation or a merger of the Corporation with another corporation (other than a merger with a subsidiary resulting in the continuation of the Corporation following such merger and does not cause a reclassification or modification of the issued Common Shares) after the date hereof, or in the event of a sale or transfer to another corporation, after the date hereof, of all or substantially all of the Corporation's assets, the holder of this Warrant Certificate shall thus have the right to purchase and receive, instead of the Common Shares which it had the right to purchase and receive immediately before exercising this Warrant Certificate, the type and the number of shares, other securities and property likely to be received following such reclassification, modification, consolidation, merger, sale or transfer, that the holder of a number of Common Shares equal to the number of Common Shares that may be purchased and received immediately before exercising this warrant and would have received following such reclassification, modification, consolidation, merger, sale or transfer. The provisions of this Section 4 apply to successive consolidations, mergers, sales or transfers.

The Corporation shall not be obliged to issue fractions of Common Shares in order to satisfy its obligations herein. In lieu of any fractional entitlement the number of Common Shares issuable to the holder shall be rounded down to the next whole number of Common Shares.

In the event that at any time after the date hereof the Corporation distributes shares of any category of the Corporation or the Corporation's property to the holders of Common Shares (except a share dividend instead of a cash dividend paid in the normal course of business), the registered holder of this Warrant Certificate shall have the right, after the warrants are exercised, to receive, with the Common Shares resulting from the exercise of the warrants without additional payment, the number of shares or property that the registered holder would have received if it would have been the owner of the Common Shares resulting from the exercise at the moment of the distribution of shares or property.

**5. Expiration.** No holder of this Warrant Certificate shall have the right, pursuant to this Warrant Certificate, to purchase Common Shares of the Corporation after 5:00 p.m. (Toronto time) on that date that is three (3) years following the closing of the Corporation's initial public offering on its Common Shares on Nasdaq at the Corporation's head office where this Warrant Certificate is to be delivered in order to be exercised (herein designated as the "*expiration date*"). After the expiration date of this Warrant Certificate, all warrants under this Warrant Certificate which were not yet exercised shall expire and this Warrant Certificate shall be null and void.

**6. Creation of warrants and reservation of shares.** The Corporation agrees and declares that it is duly authorized to create and issue this Warrant Certificate and that this Warrant Certificate, when signed as provided herein, will be valid and enforceable against the Corporation in accordance with the provisions of this Warrant Certificate and that, subject to the provisions herein, the Corporation shall issue or cause to be issued the Common Shares purchased from time to time as provided herein; moreover, the Corporation agrees and declares that at any time while this Warrant Certificate is in circulation, it will reserve and will keep within its share capital a sufficient number of non-issued Common Shares in order to satisfy the purchase rights herein. All Common Shares that shall be issued at the time this warrant is exercised shall be deemed fully paid and non-assessable upon payment for the Common Shares, as provided herein, of the applicable amount to which the Common Shares may be purchased in accordance of the provision hereof.

**7. Claims.** Subject to the following provisions, all of the rights conferred to the registered holder of this Warrant Certificate may be exercised by the holder hereof via suitable legal procedures. No claims under the terms of an obligation, agreement or undertaking contained herein may be exercised against a shareholder, an officer or a director of the Corporation whether directly or through the Corporation, being expressly agreed and declared that the obligations under the terms of this Warrant Certificate are only corporate obligations and that no personal liability whatsoever will bind or will be incurred by the shareholders, the officers or the directors of the Corporation nor either of them in this respect; as a condition and in consideration of the execution and issuance of this Warrant Certificate, any right and claim against each of its shareholders, officers or directors are hereby expressly waived.

**8. Use of terms.** Unless otherwise required by the subject or the context, the words hereto, hereby, herein, hereof, under or pursuant and other similar expressions refer to this Warrant Certificate in general and not to a section, paragraph or any other particular part of this Warrant Certificate, the word holder designates the registered holder at the issuance of this Warrant Certificate; the singular includes the plural and vice versa, any reference to gender includes both the masculine and the feminine and words referring to persons include corporations, companies and vice versa.

**9. Statutory holidays.** If the date to take any action pursuant to this Warrant Certificate is a Saturday, a Sunday or a statutory holiday, the action shall be taken the first business day following said day and shall have the same effect as if it had been taken on the appropriate date on which it was to be taken.

**10. Notices.** All notices issued by the Corporation to the holder of this Warrant Certificate shall be via first class pre-paid postage at the registered address of the holder and shall be deemed to have been given on the date of postage.

**11. Governing law.** This Warrant Certificate herein attested are governed in all respects by the laws of the Province of British Columbia and shall be treated as contracts entered into and entirely executed in the Province of Ontario.

**12. Execution.** This certificate may be executed in one or more counterparts, each of which may be delivered by facsimile, by email in PDF, or other legally permissible electronic signature, and each of which will be deemed an original, and all of which together will be deemed to be one and the same document.

**13. Time of the essence.** Time is of the essence in the performance of all obligations contained herein.

## Exhibit 10.9

**Exhibit 10.9**

**THIS WARRANT CERTIFICATE, AND THE WARRANTS EVIDENCED HEREBY ARE NOT TRANSFERABLE AND WILL BE VOID AND OF NO VALUE UNLESS EXERCISED WITHIN THE LIMITS HEREIN PROVIDED**

**THE WARRANTS REPRESENTED HEREBY AND THE SECURITIES DELIVERABLE UPON THE EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY: (A) TO MODERN MINING TECHNOLOGY CORP. (THE "COMPANY"), (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE COMPANY MUST FIRST BE PROVIDED TO ENDEAVOR TRUST COMPANY TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.**

**THESE WARRANTS MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THIS SECURITY AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LEGISLATION OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."**

**PERFORMANCE WARRANT TO PURCHASE COMMON SHARES**

**OF**

**MODERN MINING TECHNOLOGY CORP.**<br> (a company incorporated under the laws of the British Columbia)

---

| | |
|:---|:---|
| **Number: PW - [●]** | Number of Warrants represented by this Certificate: [●] |

---

**THIS CERTIFIES THAT**, for value received, [Name], of [Address] (the "**Holder**"), being a Service Provider (as defined herein) and the registered holder of that number of performance warrants (individually, a "**Warrant**" and collectively, the "**Warrants**") set forth above is entitled, at any time after the Performance Date (as defined herein) and prior to the Expiry Time (as defined herein) to subscribe for and purchase the number of common shares (the "**Shares**", and each, a "**Share**") of the Company set forth above on the basis of one Share at a price of US$0.05 (the "**Exercise Price**") for each Warrant exercised, subject to adjustment as set out herein, by surrendering to the Company at its principal office, 1500-1055 West Georgia Street, Vancouver, BC V6E 4N7, this warrant certificate (the "**Warrant Certificate**"), together with a completed and executed Subscription Form attached hereto, and payment in full for the Shares being purchased.

The Company shall treat the Holder as the absolute owner of the Warrants evidenced by this Warrant Certificate for all purposes and the Company shall not be affected by any notice or knowledge to the contrary. The Holder shall be entitled to the rights evidenced by this Warrant Certificate free from all equities and rights of set-off or counterclaim between the Company and the original or any intermediate holder and all persons may act accordingly and the receipt by the Holder of the Shares issuable upon exercise hereof shall be a good discharge to the Company and the Company shall not be bound to inquire into the title of any such Holder.

1.  **<u>Definitions</u>:** In this Warrant Certificate, unless there is something in the subject matter or context
 inconsistent therewith, the following expressions shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Adjustment Period**" means the period commencing on the date hereof and ending at the Expiry
 Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Affiliate"** means a company that is a parent or subsidiary of the Company, or that is controlled
 by the same entity as the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"Board"** means the board of directors of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Business Day**" means any day other than a Saturday, Sunday, legal holiday or a day on which
 banking institutions are closed in Vancouver, British Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Company** "
 means Modern Mining Technology Corp., and its successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Common Shares**" means the common shares of the Company as such shares are constituted on
 the date hereof, as the same may be reorganized, reclassified or otherwise changed pursuant
 to any of the events set out in Section 11 or Section 13 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **"Consultant"** means an individual or Consultant Company, other than an Employee, Officer or Director
 that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provides
 on an ongoing bona fide basis, consulting, technical, managerial or like services to the
 Company or an Affiliate of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) provides
 the services under a written contract between the Company or an Affiliate and the individual
 or the Consultant Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 the reasonable opinion of the Company, spends or will spend a significant amount of time
 and attention on the business and affairs of the Company or an Affiliate of the Company;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has
 a relationship with the Company or an Affiliate of the Company that enables the individual
 or Consultant Company to be knowledgeable about the business and affairs of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Consultant Company"** means for an individual Consultant, a company or partnership of which
 the individual is an employee, shareholder or partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Current Market Price**" of a Common Share at any date means the price per share equal to
 the volume weighted average trading price at which the Common Shares have traded on the principal
 stock exchange or over-the-counter market on which the Common Shares may then be listed or
 posted for trading during the twenty (20) consecutive Trading Days prior to the relevant
 date, with the volume weighted average trading price per Common Share being determined by
 dividing the aggregate sale price of all Common Shares sold on the said exchange or market,
 as the case may be, during the said twenty (20) consecutive Trading Days by the aggregate
 number of Common Shares so sold or, if the Common Shares are not listed or quoted on any
 stock exchange or over-the-counter market, then the Current Market Price shall be as determined
 by the directors of the Company, acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Directors** "
 means the directors of the Company as may be elected from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Dividends Paid in the Common Course**" means dividends paid in any financial year of the Company,
 whether in (i) cash, (ii) shares of the Company, or (iii) warrants or similar rights to purchase
 any shares of the Company or property or other assets of the Company, provided that the value
 of such dividends does not in such financial year exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 150%
 of the aggregate amount of dividends paid by the Company on the Common Shares in the 12-month
 period ending immediately prior to the first day of such financial year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 100%
 of the consolidated net earnings from continuing operations of the Company, before any extraordinary
 items, for the 12-month period ending immediately prior to the first day of such financial
 year (such consolidated net earnings from continuing operations to be computed in accordance
 with generally accepted accounting principles in Canada);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **"Employee"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 individual who is considered an employee under the Income Tax Act Canada (i.e. for whom income
 tax, employment insurance and CPP deductions must be made at source);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an
 individual who works full-time for the Company or a subsidiary thereof providing services
 normally provided by an employee and who is subject to the same control and direction by
 the Company over the details and methods of work as an employee of the Company, but for whom
 income tax deductions are not made at source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an
 individual who works for the Company or its subsidiary on a continuing and regular basis
 for a minimum amount of time per week providing services normally provided by an employee
 and who is subject to the same control and direction by the Company over the details and
 methods of work as an employee of the Company, but for whom income tax deductions need not
 be made at source;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Exercise Price**" means CAD$0.05 per Share, subject to adjustment in accordance with Section
 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Expiry Time**" means three years from the date of the IPO; provided however:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 the case of the death of a Holder following the Performance Date, any Warrant held by him
 or her at the date of death will become exercisable by the Holder's lawful personal
 representatives, heirs or executors until one year after the date of death of such Holder;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 the Performance Date has occurred on or before the date the Holder ceased to be so employed
 by or to provide services to the Company, a Warrant issued to any Service Provider will expire
 90 days after the date the Holder ceases to be employed by or provide services to the Company,
 provided that in the case of the Service Provider being dismissed from employment or service
 for cause, such Warrants, whether or not the Performance Date has occurred at the date of
 dismissal will immediately terminate without right to exercise same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Holder** "
 means the holder set forth on the first page hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**IPO** "
 means the initial public offering of the Company and listing of its Common Shares on a recognized
 stock exchange in Canada or the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Management Company Employee**" means an individual employed by a person providing management
 services to the Company which are required for the ongoing successful operation of the business
 enterprise of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Officer** "
 means a officer of the Company appointed by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Performance Date**" means the date on which the Board determines, based on the Company's
 published financial statements, that the Company achieves cumulative Gross Revenue (as defined
 under International Financial Reporting Standards as issued by the International Accounting
 Board) of [$10/$20] million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**person** "
 means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization,
 trust, trustee, executor, administrator, or other legal representative, or any group or combination
 thereof or any other entity whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **"Shares** "
 means the Common Shares issuable upon due exercise of the Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **"Service Provider"** means a person who is a bona fide Director, Officer, Employee, Management
 Company Employee, Consultant, and also includes a company, 100% of the share capital of which
 is beneficially owned by one or more Service Providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Trading Day**" with respect to a stock exchange, market or over-the-counter market means
 a day on which such stock exchange or over-the-counter market is open for business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**United States**" means the United States of America, its territories and possessions, any
 state of the United States and the District of Colombia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**U.S. Person**" means "U.S. person" as that term is defined in Regulation S
 under the U.S. Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**U.S. Securities Act**" means the *United States Securities Act of 1933*, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Warrant** "
 means a Warrant, each exercisable to purchase one Share at the Exercise Price at any time
 after the Performance Date and prior to the Expiry Time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Warrant Certificate**" means this certificate representing the Warrants, together with any
 duly issued replacement or substitution therefor.

2.  **<u>Expiry Time</u>:** At the Expiry Time, all rights under the Warrants evidenced hereby, in respect
 of which the right of subscription and purchase herein provided for shall not theretofore
 have been exercised, shall expire and be of no further force and effect. Nothing contained
 herein shall confer any right upon the Holder hereof or any other person to subscribe for
 or purchase any Shares at any time subsequent to the Expiry Time.

3.  **<u>Exercise Procedure</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Holder may exercise the right to subscribe and purchase the number of Shares herein provided
 for by delivering to the Company, at any time after the Performance Date and prior to the
 Expiry Time, at its principal office, this Warrant Certificate, with the Subscription Form
 attached hereto duly completed and executed by the Holder or its legal representative or
 attorney, duly appointed by an instrument in writing in form and manner satisfactory to the
 Company, together with a certified cheque, wire transfer or bank draft payable to or to the
 order of the Company in an amount in the lawful currency of Canada equal to the aggregate
 Exercise Price in respect of the Warrants so exercised. Any Warrant Certificate so surrendered
 shall be deemed to be surrendered only upon delivery thereof to the Company at its principal
 office set forth herein (or to such other address as the Company may notify the Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On
 any exercise of the Warrants, in lieu of payment of the aggregate Exercise Price in the manner
 as specified above, but otherwise in accordance with the requirements of Section 3(a), the
 Holder may elect to receive the Shares equal to the value of the Warrants, or portion hereof
 as to which the Warrants is being exercised. Thereupon, the Company shall issue to the Holder
 such number of fully paid and non-assessable Shares as are computed using the following formula:

X = Y(A-B)/A

where:

X = the number of Shares to be issued to the Holder;

Y = the number of Shares with respect to which the Warrants are being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Exercise Price);

A = the fair market value (as determined pursuant to this Section 3(b)) (the "**Fair Market Value**") of one (1) Share; and

B = the Exercise Price.

If the Common Shares are then traded or quoted on a U.S. or Canadian securities exchange, inter-dealer quotation system or over-the-counter market (a "**Trading Market**"), the Fair Market Value of a Common Share shall be the closing price or last sale price of a Common Share reported for the business day immediately before the date on which Holder delivers this Warrant Certificate together with its Subscription Form to the Company. If the Common Shares are not traded in a Trading Market, the Board of Directors of the Company shall determine the Fair Market Value of a Common Share in its reasonable good faith judgment, as of the business day immediately before the date on which Holder delivers this Warrant Certificate together with its Subscription Form to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 such delivery as aforesaid, the Company shall cause to be issued to the Holder hereof the
 Shares subscribed for not exceeding those which such Holder is entitled to purchase pursuant
 to this Warrant Certificate and the Holder hereof shall become a shareholder of the Company
 in respect of the Shares subscribed for with effect from the date of such delivery and shall
 be entitled to delivery of certificates evidencing the Shares and the Company shall cause
 such certificates to be delivered to the Holder hereof at the address or addresses specified
 in such subscription as soon as practicable, and in any event within three Business Days
 of such delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) These
 Warrants and the Shares issuable upon exercise of these Warrants have not been and will not
 be registered under the U.S. Securities Act or under state securities laws of any state in
 the United States. Accordingly, these Warrants may not be transferred to, or be exercised
 by or on behalf of, a person in the United States or a U.S. Person, unless an exemption from
 registration is available under the U.S. Securities Act and applicable state securities laws
 and the Holder has furnished an opinion of counsel of recognized standing in form and substance
 satisfactory to the Company to such effect, and if the Warrants are so exercised, the certificates
 representing the Shares shall bear the appropriate legends as determined by legal counsel
 for the Company.

4.  **<u>Partial Exercise</u>:** The Holder may subscribe for and purchase a number of Shares less than
 the maximum number the Holder is entitled to purchase pursuant to the full exercise of this
 Warrant Certificate. In the event of any such subscription prior to the Expiry Time, the
 Holder shall in addition be entitled to receive, without charge, a new Warrant Certificate
 in respect of the balance of the Shares which the Holder was entitled to subscribe for pursuant
 to this Warrant Certificate and which were then not purchased (with or without legends as
 appropriate).

5.  **<u>No Fractional Shares</u>:** Notwithstanding any adjustments provided for in Section 11 hereof
 or otherwise, the Company shall not be required upon the exercise of any Warrants to issue
 fractional Shares and, in any such case, the number of Shares issuable upon the exercise
 of any Warrants shall be rounded down to the nearest whole number, without payment or compensation
 in lieu thereof.

6.  **<u>Exchange of Warrant Certificates</u>:** This Warrant Certificate may be exchanged for Warrant Certificates
 representing in the aggregate the same number of Warrants and entitling the Holder thereof
 to subscribe for and purchase an equal aggregate number of Shares at the same Exercise Price
 and on the same terms as this Warrant Certificate (with or without legends as may be appropriate).
 Any Warrant Certificate tendered for exchange shall be surrendered to the Company and cancelled.

7.  **<u>Transfer of Warrants</u>:** The Warrants evidenced by this Warrant Certificate are non-assignable
 and non-transferable and may not be exercised by or for the benefit of any person other than
 the Holder without the prior written consent of the Company.

8.  **<u>Not a Shareholder</u>:** Nothing in this Warrant Certificate or in the holding of a Warrant
 evidenced hereby shall be construed as conferring upon the Holder any right or interest whatsoever
 as a shareholder of the Company. All Warrants shall rank *pari passu*, notwithstanding
 the date of issue thereof.

9.  **<u>No Obligation to Purchase</u>:** Nothing herein contained or done pursuant hereto shall obligate
 the Holder to subscribe for or the Company to issue any shares except those Shares in respect
 of which the Holder shall have exercised its right to purchase hereunder in the manner provided
 herein.

10.  **<u>Covenants</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company covenants and agrees that so long as any Warrants evidenced hereby remain outstanding,
 (i) it shall use commercially reasonable efforts to preserve and maintain its corporate existence,
 and (ii) it shall allot and authorize for issuance a sufficient number of Shares to satisfy
 the right of purchase provided for herein, and upon due exercise of the Warrants in accordance
 with the terms of the Warrant Certificate, the Company will cause the Shares subscribed for
 and purchased in the manner herein provided to be issued and delivered as directed and such
 Shares shall be issued as fully paid and non-assessable Common Shares and the holders thereof
 shall not be liable to the Company or to its creditors in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the issuance of the Shares upon the exercise of the Warrants requires any filing or registration
 with or approval of any securities regulatory authority or other governmental authority in
 Canada or compliance with any other requirement under any Canadian law before such securities
 may be validly issued (other than the filing of a prospectus or similar disclosure document),
 the Company agrees to take such actions as may be necessary to secure such filing, registration,
 approval or compliance, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Company will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged
 and delivered, all other acts, deeds and assurances in law as may be reasonably required
 to accomplish and effect the intentions and provisions of this Warrant Certificate.

11.  **<u>Adjustments</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustment</u>:
 The rights of the Holder, including the number of Shares issuable upon the exercise of such
 Warrants, will be adjusted from time to time in the events and in the manner provided in,
 and in accordance with the provisions of, this Section. The purpose and intent of the adjustments
 provided for in this Section are to ensure that the rights and obligations of the Holder
 are neither diminished nor enhanced as a result of any of the events set forth in paragraphs
 (b) or (c) of this Section. Accordingly, the provisions of this Section shall be interpreted
 and applied in accordance with such purpose and intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Exercise Price in effect at any date will be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Share Reorganization</u>: If and whenever at any time during the Adjustment Period, the Company
 shall (A) subdivide, redivide or change the outstanding Common Shares into a greater number
 of Common Shares, (B) consolidate, combine or reduce the outstanding Common Shares into a
 lesser number of Common Shares, or (C) fix a record date for the issue of, or issue, Common
 Shares or securities convertible into or exchangeable for Common Shares to all or substantially
 all of the holders of Common Shares by way of a stock dividend or other distribution other
 than a Dividend Paid in the Common Course then, in each such event, the Exercise Price shall,
 on the record date for such event or, if no record date is fixed, the effective date of such
 event, be adjusted so that it will equal the rate determined by multiplying the Exercise
 Price in effect immediately prior to such date by a fraction, of which the numerator shall
 be the total number of Common Shares outstanding on such date before giving effect to such
 event, and of which the denominator shall be the total number of Common Shares outstanding
 on such date after giving effect to such event. Such adjustment shall be made successively
 whenever any such event shall occur. Any such issue of Common Shares by way of a stock dividend
 shall be deemed to have been made on the record date for such stock dividend for the purpose
 of calculating the number of outstanding Common Shares under paragraphs 12(b)(i) and (ii)
 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Rights Offering</u>: If and whenever at any time during the Adjustment Period, the Company shall
 fix a record date for the issue of rights, options or warrants to all or substantially all
 of the holders of Common Shares entitling the holders thereof, within a period expiring not
 more than 45 days after the record date for such issue, to subscribe for or purchase Common
 Shares (or securities convertible into or exchangeable for Common Shares) at a price per
 share (or having a conversion or exchange price per share) less than 95% of the Current Market
 Price on such record date, then the Exercise Price shall be adjusted immediately after such
 record date so that it will equal the rate determined by multiplying the Exercise Price in
 effect on such record date by a fraction, of which the numerator shall be the total number
 of Common Shares outstanding on such record date plus the number of Common Shares equal to
 the number arrived at by dividing the aggregate price of the total number of additional Common
 Shares so offered for subscription or purchase (or the aggregate conversion or exchange price
 of the convertible or exchangeable securities so offered) by such Current Market Price, and
 of which the denominator shall be the total number of Common Shares outstanding on such record
 date plus the total number of additional Common Shares so offered for subscription or purchase
 (or into or for which the convertible or exchangeable securities so offered are convertible
 or exchangeable). Any Common Shares owned by or held for the account of the Company or any
 subsidiary of the Company shall be deemed not to be outstanding for the purpose of any such
 computation. Such adjustment shall be made successively whenever such a record date is fixed,
 provided that if two or more such record dates referred to in this paragraph 11(b)(ii) are
 fixed within a period of 25 Business Days, such adjustment will be made successively as if
 each of such record dates occurred on the earliest of such record dates. To the extent that
 any such rights, options or warrants are not exercised prior to the expiration thereof, the
 Exercise Price shall then be readjusted to the Exercise Price which would then be in effect
 based upon the number of Common Shares (or securities convertible into or exchangeable for
 Common Shares) actually issued upon the exercise of such rights, options or warrants, as
 the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Distribution</u>:
 If and whenever at any time during the Adjustment Period, the Company shall fix a record
 date for the making of a distribution to all or substantially all of the holders of Common
 Shares of (A) shares of any class other than Common Shares whether of the Company or any
 other corporation, (B) rights, options or warrants to acquire Common Shares or securities
 exchangeable for or convertible into Common Shares or property or other assets of the Company
 (other than a rights offering as described in Section 11(b)(ii) above), (C) evidences of
 indebtedness, or (D) cash (including any cash dividend), securities or other property or
 assets then, in each such case and if such distribution does not constitute a Dividend Paid
 in the Common Course, or fall under clauses (i) or (ii) above, the Exercise Price will be
 adjusted immediately after such record date so that it will equal the rate determined by
 multiplying the Exercise Price in effect on such record date by a fraction, of which the
 numerator shall be the total number of Common Shares outstanding on such record date multiplied
 by the Current Market Price on the earlier of such record date and the date on which the
 Company announces its intention to make such distribution, less the aggregate fair market
 value (as determined by the directors, acting reasonably, at the time such distribution is
 authorized) of such shares or rights, options or warrants or evidences of indebtedness or
 cash, securities or other property or assets so distributed, and of which the denominator
 shall be the total number of Common Shares outstanding on such record date multiplied by
 such Current Market Price. Any Common Shares owned by or held for the account of the Company
 or any subsidiary of the Company shall be deemed not to be outstanding for the purpose of
 any such computation. Such adjustment shall be made successively whenever such a record date
 is fixed, provided that if two or more such record dates referred to in this paragraph 11(b)(iii)
 are fixed within a period of 25 Business Days, such adjustment will be made successively
 as if each of such record dates occurred on the earliest of such record dates. To the extent
 that any such rights, options or warrants so distributed are not exercised prior to the expiration
 thereof, the Exercise Price shall then be readjusted to the Exercise Price which would then
 be in effect based upon such rights, options or warrants or evidences of indebtedness or
 cash, securities or other property or assets actually distributed or based upon the number
 or amount of securities or the property or assets actually issued or distributed upon the
 exercise of such rights, options or warrants, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reclassifications</u>:
 If and whenever at any time during the Adjustment Period, there is (A) any reclassification
 of, or redesignation of or amendment to the outstanding Common Shares, any change of the
 Common Shares into other shares or any other reorganization of the Company (other than as
 described in subsection 11(b) hereof), (B) any consolidation, amalgamation, arrangement,
 merger or other form of business combination of the Company with or into any other corporation
 resulting in any reclassification of the outstanding Common Shares, any change or exchange
 of the Common Shares into other shares or any other reorganization of the Company, or (C)
 any sale, lease, exchange or transfer of the undertaking or assets of the Company as an entirety
 or substantially as an entirety to another corporation or entity, then, in each such event,
 the Holder of this Warrant Certificate which is thereafter exercised shall be entitled to
 receive, and shall accept, in lieu of the number of Common Shares to which such Holder was
 theretofore entitled upon such exercise, the kind and number or amount of shares or other
 securities or property which such Holder would have been entitled to receive as a result
 of such event if, on the effective date thereof, such Holder had been the registered holder
 of the number of Common Shares to which such Holder was theretofore entitled upon such exercise.
 If necessary as a result of any such event, appropriate adjustments will be made in the application
 of the provisions set forth in this subsection with respect to the rights and interests thereafter
 of the Holder of this Warrant Certificate to the end that the provisions set forth in this
 subsection will thereafter correspondingly be made applicable, as nearly as may reasonably
 be, in relation to any shares or other securities or property thereafter deliverable upon
 the exercise of these Warrants. Any such adjustments will be made by and set forth in an
 instrument supplemental hereto approved by the directors, acting reasonably, and shall for
 all purposes be conclusively deemed to be an appropriate adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price
 shall occur pursuant to the provisions of subsection 11(b) or 11(c) of this Warrant Certificate,
 then the number of Shares purchasable upon the subsequent exercise of the Warrants shall
 be simultaneously adjusted or readjusted, as the case may be, by multiplying the number of
 Shares purchasable upon the exercise of the Warrants immediately prior to such adjustment
 or readjustment by a fraction which shall be the reciprocal of the fraction used in the adjustment
 or readjustment of the Exercise Price.

12.  **<u>Rules Regarding Calculation of Adjustment of Exercise Price</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 adjustments provided for in Section 11 are cumulative and will, in the case of adjustments
 to the Exercise Price, be computed to the nearest whole cent and will be made successively
 whenever an event referred to therein occurs, subject to the following subsections of this
 Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No
 adjustment in the Exercise Price is required to be made unless such adjustment would result
 in a change of at least 1% in the prevailing Exercise Price and no adjustment in the Exercise
 Price is required unless such adjustment would result in a change of at least one one-hundredth
 of a Share; provided, however, that any adjustments which, except for the provisions of this
 subsection, would otherwise have been required to be made, will be carried forward and taken
 into account in any subsequent adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No
 adjustment in the Exercise Price will be made in respect of any event described in Section
 11, other than the events referred to in clauses 11(b)(i)(A) and 11(b)(i)(B) and Section
 11(c), if the Holder is entitled to participate in such event on the same terms, *mutatis mutandis*, as if the Holder had exercised these Warrants prior to or on the effective
 date or record date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No
 adjustment in the Exercise Price will be made under Section 11 in respect of the issue from
 time to time of Common Shares issuable from time to time as Dividends Paid in the Common
 Course to holders of Common Shares who exercise an option or election to receive substantially
 equivalent dividends in Common Shares in lieu of receiving a cash dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 at any time a question or dispute arises with respect to adjustments provided for in Section
 11, such question or dispute will be conclusively determined by the auditor of the Company
 or, if they are unable or unwilling to act, by such other firm of independent chartered professional
 accountants as may be selected by action of the directors of the Company and any such determination,
 subject to regulatory approval and absent manifest error, will be binding upon the Company
 and the Holder. The Company will provide such auditor or chartered professional accountant
 with access to all necessary records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In
 case the Company after the date of issuance of this Warrant Certificate takes any action
 affecting the Common Shares, other than an action described in Section 11, which in the opinion
 of the Board would materially affect the rights of the Holder, the Exercise Price will be
 adjusted in such manner, if any, and at such time, by action of the Board in their sole discretion,
 acting reasonably and in good faith, but subject in all cases to any necessary regulatory
 approval. Failure of the taking of action by the Board so as to provide for an adjustment
 on or prior to the effective date of any action by the Company affecting the Common Shares
 will be conclusive evidence that the Board has determined that it is equitable to make no
 adjustment in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If
 the Company sets a record date to determine the holders of the Common Shares for the purpose
 of entitling them to receive any dividend or distribution or sets a record date to take any
 other action and, thereafter and before the distribution to such shareholders of any such
 dividend or distribution or the taking of any other action, decides not to implement its
 plan to pay or deliver such dividend or distribution or take such other action, then no adjustment
 in the Exercise Price will be required by reason of the setting of such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In
 the absence of a resolution of the Board fixing a record date for any event which would require
 any adjustment pursuant to this Warrant Certificate, the Company will be deemed to have fixed
 as the record date therefor the date on which the event is effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As
 a condition precedent to the taking of any action which would require any adjustment pursuant
 to this Warrant Certificate, including the Exercise Price, the Company shall take any corporate
 action which may be necessary in order that the Company or any successor to the Company or
 successor to the undertaking or assets of the Company have unissued and reserved in its authorized
 capital and may validly and legally issue as fully paid and non-assessable all the shares
 or other securities which the Holder is entitled to receive on the full exercise thereof
 in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Company will from time to time, immediately after the occurrence of any event which requires
 an adjustment or readjustment as provided in Section 11, forthwith give notice to the Holder
 specifying the event requiring such adjustment or readjustment and the results thereof, including
 the resulting Exercise Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Company covenants to and in favour of the Holder that so long as any Warrants represented
 by this Warrant Certificate remain outstanding, it will give notice to the Holder of the
 effective date or of its intention to fix a record date for any event referred to in Section
 11 whether or not such action would give rise to an adjustment in the Exercise Price or the
 number and type of securities issuable upon the exercise of the Warrants and, in each case,
 such notice shall specify the particulars of such event and the record date and the effective
 date for such event; provided that the Company shall only be required to specify in such
 notice such particulars of such event as have been fixed and determined on the date on which
 such notice is given. Such notice shall be given not less than 14 days in each case prior
 to such applicable record date or effective date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) In
 any case that an adjustment pursuant to Section 11 shall become effective immediately after
 a record date for or an effective date of an event referred to herein, the Company may defer,
 until the occurrence and consummation of such event, issuing to the Holder of this Warrant
 Certificate, if exercised after such record date or effective date and before the occurrence
 and consummation of such event, the additional Shares or other securities or property issuable
 upon such exercise by reason of the adjustment required by such event; provided, however,
 that the Company will deliver to the Holder an appropriate instrument evidencing the Holder's
 right to receive such additional Shares or other securities or property upon the occurrence
 and consummation of such event and the right to receive any dividend or other distribution
 in respect of such additional Shares or other securities or property declared in favour of
 the holders of record of Common Shares or of such other securities or property on or after
 the date of exercise of the Warrants or such later date as the Holder would, but for the
 provisions of this subsection, have become the holder of record of such additional Shares
 or of such other securities or property.

13.  **<u>Consolidation and Amalgamation</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company shall not enter into any transaction whereby all or substantially all of its undertaking,
 property and assets would become the property of any other corporation (herein called a "**successor corporation**") whether by way of reorganization, reconstruction, consolidation,
 arrangement, amalgamation, merger, transfer, sale, disposition or otherwise, unless prior
 to or contemporaneously with the consummation of such transaction the Company and the successor
 corporation shall have executed such instruments and done such things as the Company, acting
 reasonably, considers necessary or advisable to establish that upon the consummation of such
 transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 successor corporation will have assumed all the covenants and obligations of the Company
 under this Warrant Certificate, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Warrants and the terms set forth in this Warrant Certificate will be a valid and binding
 obligation of the successor corporation entitling the Holder, as against the successor corporation,
 to all the rights and benefits of the Holder under this Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever
 the conditions of subsection 13(a) shall have been duly observed and performed, the successor
 corporation shall possess, and from time to time may exercise, each and every right and power
 of the Company under this Warrant Certificate in the name of the Company or otherwise and
 any act or proceeding by any provision hereof required to be done or performed by any director
 or officer of the Company may be done and performed with like force and effect by the like
 directors or officers of the successor corporation.

14.  **<u>Representation and Warranty</u>:** The Company hereby represents and warrants with and to the Holder that
 the Company is duly authorized and has all corporate and lawful power and authority to create
 and issue the Warrants evidenced hereby and the Shares issuable upon the exercise hereof
 and to perform its obligations hereunder and that this Warrant Certificate represents a valid,
 legal and binding obligation of the Company enforceable against the Company in accordance
 with its terms, provided that enforcement thereof may be limited by laws affecting creditors'
 rights generally and that specific performance and other equitable remedies may only be granted
 in the discretion of a court of competent jurisdiction.

15.  **<u>If Share Transfer Books Closed</u>:** The Company shall not be required to deliver certificates
 for Shares while the share transfer books of the Company are properly closed, prior to any
 meeting of shareholders or for the payment of dividends or for any other purpose and in the
 event of the exercise of Warrants and the surrender of this Warrant Certificate in accordance
 with the provisions hereof during any such period, delivery of certificates for Shares may
 be postponed for a period not exceeding three Business Days after the date of the re-opening
 of said share transfer books provided that any such postponement of delivery of certificates
 shall be without prejudice to the right of the Holder, if the Holder has surrendered the
 same and made payment during such period, to receive such certificates for the Shares called
 for after the share transfer books shall have been re-opened and shall be without prejudice
 to the rights of the Holder pursuant to this Warrant Certificate and the Shares that would
 have otherwise been issued had it not been for such postponement.

16.  **<u>Lost Certificate</u>:** If the Warrant Certificate evidencing the Warrants issued hereby becomes
 stolen, lost, mutilated or destroyed, the Company may, on such terms as it may in its discretion,
 acting reasonably, impose, issue and countersign a new Warrant Certificate of like denomination,
 tenor and date as the Warrant Certificate so stolen, lost, mutilated or destroyed.

17.  **<u>Governing Law</u>:** This Warrant Certificate 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.

18.  **<u>Severability</u>:** If any one or more of the provisions or parts thereof contained in this Warrant Certificate
 should be or become invalid, illegal or unenforceable in any respect in any jurisdiction,
 the remaining provisions or parts thereof contained herein shall be and shall be conclusively
 deemed to be, as to such jurisdiction, severable therefrom.

19.  **<u>Amendments:</u>** The provisions of this Warrant Certificate may from time to time be amended, modified
 or waived, if such amendment, modification or waiver is in writing and consented to in writing
 by the Company and the Holder **.** 

20.  **<u>Headings</u>:** The headings of the articles, sections, subsections, clauses and subclauses of this Warrant
 Certificate have been inserted for convenience and reference only and do not define, limit,
 alter or enlarge the meaning of any provision of this Warrant Certificate.

21.  **<u>Numbering of Articles, etc.</u>:** Unless otherwise stated, a reference herein to a numbered or lettered
 article, section, subsection, clause, or subclause refers to the article, section, subsection,
 clause or subclause bearing that number or letter in this Warrant Certificate.

22.  **<u>Gender</u>:** Whenever used in this Warrant Certificate, words importing the singular number only shall
 include the plural, and vice versa, and words importing the masculine gender shall include
 the feminine and neuter gender, and vice versa.

23.  **<u>Day not a Business Day</u>:** In the event that any day on or before which any action is required
 to be taken hereunder is not a Business Day, then such action shall be required to be taken
 on or before the requisite time on the next succeeding day that is a Business Day.

24.  **<u>Binding Effect</u>:** This Warrant Certificate and all of its provisions shall enure to the benefit
 of the Holder and its successors, permitted assigns and legal representatives and shall be
 binding upon the Company and its successors, assigns and legal representatives.

25.  **<u>Notice</u>:** Unless herein otherwise expressly provided, a notice to be given hereunder will be deemed
 to be validly given if the notice is sent electronically or by prepaid same day courier addressed
 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 to the Holder, at the latest address of the Holder as recorded on the books of the Company;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 to the Company, at:

**Modern Mining Technology Corp.**

1500-1055 West Georgia Street

Vancouver, BC V6E 4N7

Attention: Kuljit Basi

Email: jeet@modernmining.com

26.  **<u>Time of Essence</u>:** Time shall be of the essence hereof.

27.  **<u>US Dollars</u>:** Except as otherwise expressly noted, all references herein to dollar amounts
 are to the lawful money of the United States of Amercia.

**[Signature Page Follows]**

**IN WITNESS WHEREOF** the Company has caused this Warrant Certificate to be signed by its duly authorized officer as of this 30th day of August, 2021.

---

| | |
|:---|:---|
| **MODERN MINING TECHNOLOGY CORP.** | **MODERN MINING TECHNOLOGY CORP.** |
| Per: | |
|  | Authorized Signatory |

---

*Signature Page – Performance Warrant*

**SUBSCRIPTION FORM**

---

| | |
|:---|:---|
| **TO:** | **MODERN MINING TECHNOLOGY CORP.** |

---

1500-1055 West Georgia Street,

Vancouver, BC V6E 4N7

The undersigned holder of the within Warrant Certificate hereby irrevocably subscribes for ______________ Shares of Modern Mining Technology Corp. (the "**Company**") pursuant to the within Warrant Certificate and tenders herewith a certified cheque, wire transfer or bank draft payable to the order of the Company for CAD$____________ (CAD$0.05 per Share) in full payment therefor and delivers the Warrant Certificate representing the Warrants entitling the undersigned to subscribe for the above-mentioned number of Shares.

The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):

---

| | | |
|:---|:---|:---|
| ☐ | (A) | the undersigned holder at the time of exercise of the Warrants (i) is not in the United States, (ii) is not a U.S. Person, (iii) is not exercising the Warrants for the account or benefit of a U.S. Person or a person in the United States, (iv) did not execute or deliver this exercise form in the United States and (v) delivery of the underlying Shares will not be to an address in the United States; OR |

---

---

| | | |
|:---|:---|:---|
| ☐ | (B) | the undersigned holder (a) is the original U.S. Person who received the Warrants directly from the Company and who delivered the U.S. Investment Agreement, (b) is exercising the Warrants for its own account, and (c) is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act of 1933, as amended (the "**U.S. Securities Act**") at the time of exercise of these Warrants, and the representations and warranties of the holder made in the U.S. Investment Agreement pursuant to which the holder acquired the Warrants remain true and correct as of the date of exercise of these Warrants. |

---

**Note: Certificates or other instruments representing Shares will not be registered or delivered to an address in the United States unless box (B) immediately above is checked. Unless box (A) is checked the Shares delivered will be "restricted securities" under the U.S. Securities Act, will be subject to transfer restrictions under the U.S. Securities Act and any applicable U.S. state securities laws. As used herein "United States" and "U.S. Person" have the meaning given such terms in Regulation S under the U.S. Securities Act.**

If the undersigned has marked box (B) above, the undersigned additionally represents and warrants to the Company as follows:

1. the
 undersigned has such knowledge and experience in financial and business matters as to be
 capable of evaluating the merits and risks of an investment in the Shares, and the undersigned
 is able to bear the economic risk of loss of his or her entire investment; and

2. funds
 representing the subscription price for the Shares which will be advanced by the undersigned
 to the Company upon exercise of the Warrants will not represent proceeds of crime for the
 purposes of the United States *Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act* (the "**PATRIOT Act** "),
 and the undersigned acknowledges that the Company may in the future be required by law to
 disclose the undersigned's name and other information relating to this exercise form and
 the undersigned's subscription hereunder, on a confidential basis, pursuant to the PATRIOT
 Act. No portion of the subscription price to be provided by the undersigned (i) has been
 or will be derived from or related to any activity that is deemed criminal under the laws
 of the United States, or any other jurisdiction, or (ii) is being tendered on behalf of a
 person or entity who has not been identified to or by the undersigned, and it shall promptly
 notify the Company if the undersigned discovers that any of such representations ceases to
 be true and provide the Company with appropriate information in connection therewith;

If the undersigned has marked box (B) above, the undersigned acknowledges and agrees that:

1. the
 Company has provided to the undersigned the opportunity to ask questions and receive answers
 concerning the terms and conditions of the offering of the Shares, and the undersigned has
 had access to such information concerning the Company as the undersigned has considered necessary
 or appropriate in connection with the undersigned's investment decision to acquire
 the Shares;

2. if
 the undersigned decides to offer, sell or otherwise transfer any of the Shares, the undersigned
 must not, and will not, offer, sell or otherwise transfer any of such Shares directly or
 indirectly, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 sale is to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 sale is made outside the United States in a transaction meeting the requirements of Rule
 904 of Regulation S under the U.S. Securities Act and in compliance with applicable local
 laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 sale is made pursuant to the exemption from the registration requirements under the U.S.
 Securities Act provided by Rule 144 thereunder and in accordance with any applicable state
 securities or "blue sky" laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Shares are sold in a transaction that does not require registration under the U.S. Securities
 Act or any applicable state laws and regulations governing the offer and sale of securities,
 and it has prior to such sale furnished to the Company an opinion of counsel of recognized
 standing in form and substance reasonably satisfactory to the Company;

3. the
 Shares are "restricted securities" (as defined in Rule 144(a)(3) under the U.S.
 Securities Act) and that the U.S. Securities Act and the rules of the United States Securities
 and Exchange Commission provide in substance that the undersigned may dispose of the Shares
 only pursuant to an effective registration statement under the U.S. Securities Act or an
 exemption or exclusion therefrom;

4. the
 Company has no obligation to register any of the Shares or to take any other action so as
 to permit sales pursuant to the U.S. Securities Act (including Rule 144 thereunder);

5. the
 certificates or other instruments representing the Shares as well as all certificates or
 other instruments issued in exchange for or in substitution of therefor, until such time
 as is no longer required under the applicable requirements of the U.S. Securities Act and
 applicable state securities laws, will bear, on the face of such certificate, the following
 legend:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY: (A) TO THE COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT; (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; AND, IN THE CASE OF CLAUSE (C) OR (D), THE SELLER FURNISHES TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY TO SUCH EFFECT. THE PRESENCE OF THIS LEGEND MAY IMPAIR THE ABILITY OF THE HOLDER HEREOF TO EFFECT "GOOD DELIVERY" OF THE SECURITIES REPRESENTED HEREBY ON A CANADIAN STOCK EXCHANGE.";

provided that if the Shares are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S and the Company was a "foreign issuer" as defined in Regulation S at the time of issuance of the Shares, the legend set forth above may be removed by providing a declaration to the registrar and transfer agent of the Company, as set forth in **Exhibit 1** hereto (or in such other form as the Company may prescribe from time to time) and, if requested by the Company or transfer agent, an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company to the effect that the transfer is in compliance with Rule 904; and provided, further, that, if any Shares are being sold otherwise than in accordance with Regulation S and other than to the Company, the legend may be removed by delivery to the registrar and transfer agent and the Company of an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act;

6. the
 Company is not obligated to remain a "foreign issuer";

7. the
 financial statements of the Company have been prepared in accordance with Canadian generally
 accepted accounting principles or International Financial Reporting Standards as issued by
 the International Accounting Standards Board, which differ in some respects from United States
 generally accepted accounting principles, and thus may not be comparable to financial statements
 of United States companies;

8. it
 consents to the Company making a notation on its records or giving instructions to any transfer
 agent of the Company in order to implement the restrictions on transfer set forth and described
 in this Warrant Exercise Form; and

9. it
 acknowledges and consents to the fact that the Company is collecting personal information
 (as that term is defined under applicable privacy legislation, including, without limitation,
 the *Personal Information Protection and Electronic Documents Act* (Canada) and any
 other applicable similar, replacement or supplemental provincial or federal legislation or
 laws in effect from time to time) of the undersigned for the purpose of facilitating the
 subscription for the Shares hereunder. The undersigned acknowledges and consents to the Company
 retaining such personal information for as long as permitted or required by law or business
 practices and agrees and acknowledges that the Company may use and disclose such personal
 information: (a) for internal use with respect to managing the relationships between and
 contractual obligations of the Company and the undersigned; (b) for use and disclosure for
 income tax-related purposes, including without limitation, where required by law disclosure
 to Canada Revenue Agency; (c) disclosure to professional advisers of the Company in connection
 with the performance of their professional services; (d) disclosure to securities regulatory
 authorities and other regulatory bodies with jurisdiction with respect to reports of trade
 or similar regulatory filings; (e) disclosure to a governmental or other authority to which
 the disclosure is required by court order or subpoena compelling such disclosure and where
 there is no reasonable alternative to such disclosure; (f) disclosure to any person where
 such disclosure is necessary for legitimate business reasons and is made with your prior
 written consent; (g) disclosure to a court determining the rights of the parties under this
 Agreement; and (h) for use and disclosure as otherwise required or permitted by law.

The undersigned hereby directs that the Shares be issued as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NAME(S) IN FULL** | &nbsp;&nbsp;**ADDRESS(ES)** | &nbsp;&nbsp;**NUMBER OF<br> SHARES** |

---

---

| | |
|:---|:---|
| **DATED** this<u> </u> day of<u> </u>, 202<u> </u>. |  |
|  | Signature of individual (if the holder **is** an individual) |
|  | Authorized signatory (if the holder is **not** an individual) |
|  | Name of holder (**please print**) |
|  | Name of authorized signatory (**please print**) |
|  | Official capacity of authorized signatory (**please print**) |

---

☐ Please check if the certificate(s) representing the Shares are to be delivered at the office where this Warrant Certificate is surrendered, failing which such certificate(s) will be mailed to the address in the registration instructions set out above.

**<u>Notes</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;1. Terms
 used herein but not otherwise defined have the meanings ascribed thereto in the attached
 Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 any Warrants represented by the Warrant Certificate are not being exercised, a new Warrant
 Certificate representing the unexercised Warrants will be issued and delivered with the certificates
 representing the Shares.

**ExHIBIT "I"**

**Declaration for removal of legend**

TO: **MODERN MINING TECHNOLOGY CORP**. (the "**Company**")

TO: Registrar and transfer agent for the shares of the Company

The undersigned (A) acknowledges that the sale of __________________ common shares (the "**Securities**") of the Company, represented by certificate number(s) __________________ or held in Direct Registration System (DRS) account number _____________, to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), and (B) certifies that (1) the undersigned is not (a) an "affiliate" of the Company (as that term is defined in Rule 405 under the U.S. Securities Act, except any officer or director of the Company who is an affiliate solely by virtue of holding such position) (b) a "distributor" as defined in Regulation S or (c) an affiliate of a distributor; (2) the offer of such Securities was not made to a person in the United States and either (a) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (b) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange, the NEO Exchange or another "designated offshore securities market", and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such Securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the Securities are "restricted securities" (as that term is defined in Rule 144(a)(3) under the U. S. Securities Act); (5) the seller does not intend to replace such Securities with fungible unrestricted securities; and (6) the contemplated sale is not a transaction, or part of a series of transactions, which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act. Terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

---

| | |
|:---|:---|
| Dated _______________ 20__. | **X** |
|  | Signature of individual (if Seller **is** an individual) |
|  | **X** |
|  | Authorized signatory (if Seller is **not** an individual) |
|  | Name of Seller (**please print**) |
|  | Name of authorized signatory (**please print**) |
|  | Official capacity of authorized signatory (**please print**) |

---

****

<br> **Affirmation by Seller's Broker-Dealer<br> (Required for sales pursuant to Section B(2)(b) above)**

We have read the foregoing representations of our customer, _________________________ (the "**Seller**"), dated ____________, with regard to the sale, for such Seller's account, of _________________ common shares (the "**Securities**") of the Company represented by certificate number(s) ______________ or held in Direct Registration System (DRS) account number _____________. We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) no
 offer to sell Securities was made to a person in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the
 sale of the Securities was executed in, on or through the facilities of the Toronto Stock
 Exchange, the TSX Venture Exchange, the Canadian Securities Exchange, the NEO Exchange or
 another "designated offshore securities market" (as defined in Rule 902(b) of
 Regulation S under the U.S. Securities Act), and, to the best of our knowledge, the sale
 was not pre-arranged with a buyer in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) no
 "directed selling efforts" were made in the United States by the undersigned,
 any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) we
 have done no more than execute the order or orders to sell the Securities as agent for the
 Seller and will receive no more than the usual and customary broker's commission that
 would be received by a person executing such transaction as agent.

For purposes of these representations: "**affiliate**" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "**directed selling efforts**" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "**United States**" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Company shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

---

| | |
|:---|:---|
| Dated: |  |
| Name of Firm | Name of Firm |
| By: |  |
|  | Authorized Officer |

---

## Exhibit 10.10

**Exhibit 10.10**

**STOCK AWARD AGREEMENT**

This Stock Award Agreement (this "**Agreement**") is executed as of February 1, 2021 and effective as of February 1, 2021 (the "**Effective Date**") by and between Urban Mining International Inc., a Delaware corporation (the "**Company**"), and [ ] (the "**Recipient**").

In consideration of the mutual covenants and representations set forth below, the Company and the Recipient agree as follows:

1. <u>Award of the Shares</u>. The parties acknowledge that the Company issued to the Recipient as of the Stock Award Date, and the Recipient accepted from the Company as of the Stock Award Date, subject to the terms and conditions set forth in this Agreement [ ] shares of the Company's Common Stock, $0.0001 par value per share (the "**Shares**"), with a price per share as of the Stock Award Date of $0.15.

2. <u>Restrictions on Transfer; Rights of First Refusal and Shareholder Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient acknowledges and agrees that the Shares are subject to the provisions of the Company's Bylaws, as amended from time to time (the "**Bylaws**"), including without limitation, all restrictions on transfer and rights of first refusal described in the Bylaws. The Recipient may inspect the Bylaws at the Company's principal office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shareholder Agreements</u>. The Recipient acknowledges and agrees that upon the request of the Company, the Recipient shall join and become a party to such shareholder agreements, which may impose certain contractual rights and obligations on the Shares, as may be entered into from time to time by and among the Company and the holders of the Company's capital stock.

3. <u>Agreement in Connection with Public Offering</u>. The Recipient agrees, in connection with the initial underwritten public offering of the Company's securities pursuant to a registration statement under the Securities Act of 1933, as amended (the "**Securities Act**"): (i) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of Common Stock of the Company held by the Recipient (other than those shares included in the offering) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company's securities for a period of 180 days from the effective date of such registration statement, which period may be extended upon the request of the underwriters for an additional period of up to 15 days if the Company issues or proposes to issue an earnings or other public release within 15 days of the expiration of the 180-day lockup period, and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering.

The Recipient agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters of such offering which are consistent with the foregoing or which are necessary to give further effect thereto. In addition, if requested, by the Company or the underwriters of such offering, the Recipient shall provide, within 10 days of such request, such information as may be required by the Company or such underwriters in connection with the completion of any public offering of the Company's securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 3 shall not apply to a registration relating solely to employee benefits plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the Shares and any shares of Common Stock (or other securities) held by the Recipient subject to the foregoing restriction until the end of the applicable period. Recipient agrees that any transferee of the Shares issued pursuant to this Agreement shall be bound by this Section 3.

4. <u>Investment Representations</u>. The Recipient represents, warrants and covenants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient is acquiring the Shares for the Recipient's own account for investment only, and not with a view to, or for sale in connection with, any distribution of the Shares in violation of the Securities Act, or any rule or regulation under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Recipient has had such opportunity as the Recipient deems adequate to obtain from representatives of the Company such information as is necessary to permit the Recipient to evaluate the merits and risks of the Recipient's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Recipient has sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the acquisition of the Shares and to make an informed investment decision with respect to the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Recipient can afford a complete loss of the value of the Shares and is able to bear the economic risk of holding such Shares for an indefinite period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Recipient acknowledges that the Company has encouraged the Recipient to consult the Recipient's own advisor to determine the tax consequences of acquiring, holding and disposing of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Recipient acknowledges that the Shares shall be subject to the Company's right of first refusal and the market stand-off (sometimes referred to as the "lock-up"), as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Recipient understands that (i) the Shares have not been registered under the Securities Act and are "restricted securities" within the meaning of Rule 144 under the Securities Act, (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the Securities Act or an exemption from registration is then available; (iii) in any event, the exemption from registration under Rule 144 will be available only after the applicable holding period required by Rule 144 has been satisfied and even then will not be available unless a public market then exists for the Common Stock, adequate information concerning the Company is then available to the public, and the other terms and conditions of Rule 144 are complied with; and (iv) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the Securities Act or to satisfy the conditions of Rule 144. Recipient further understands and agrees that regardless of whether the Shares under this Agreement have been or are registered under the Securities Act or have been registered or qualified under the securities laws of any State, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of the Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any State or any other law.

5. <u>Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Recipient any federal, state or local taxes of any kind required by law to be withheld with respect to the acquisition of the Shares by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Recipient has reviewed or has been advised to review with the Recipient's own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Recipient is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Recipient understands that the Recipient (and not the Company) shall be responsible for the Recipient's own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Rights to Continued Service</u>. The Recipient acknowledges and agrees that the transactions contemplated hereunder do not constitute an express or implied promise of continued engagement as an employee or consultant, for any period, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the Company and the Recipient and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 2 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice</u>. All notices required or permitted hereunder shall be in writing and deemed effectively given upon personal delivery or five days after deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at the address shown beneath his or its respective signature to this Agreement, or at such other address or addresses as either party shall designate to the other in accordance with this Section 6(e). Notwithstanding the foregoing, notices with respect to the Shares shall be provided in accordance with the Company's Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement; Governing Law</u>. This Agreement constitutes the entire agreement between the Company and the Recipient with respect to the subject matter hereof and supersedes in their entirety all prior undertakings and agreements of the Company and the Recipient with respect to the subject matter hereof. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to conflict of law provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Amendment</u>. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Recipient's Acknowledgments</u>. The Recipient acknowledges that the Recipient: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Recipient's own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Hutchison PLLC, is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for the Recipient.

[*Remainder of Page Intentionally Left Blank*]

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first set forth above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **Urban Mining International Inc.** | **Urban Mining International Inc.** |
| By: | /s/ Mark Zorko |
| Name: | Mark Zorko |
| Title: | Chairman |
| Mailing Address For Notice: | Mailing Address For Notice: |
| **RECIPIENT:** | **RECIPIENT:** |
| **[Awardee Name]** | **[Awardee Name]** |
| Mailing Address For Notice: | Mailing Address For Notice: |

---

## Exhibit 10.11

**Exhibit 10.11**

**URBAN MINING INTERNATIONAL, INC.**

**NOTICE OF SUBSCRIPTION TO PURCHASE SHARES OF COMMON STOCK AND WARRANT**

---

| | |
|:---|:---|
| **Subscriber:** | |
|  | *(Print name exactly as you would like it to appear on your stock certificate(s))* |
| **Number of Shares:** |  |
|  | *(Round down to nearest whole share. No fractional shares will be issued)* |
| **Purchase Price per Share:** | $0.15/share |
| **Total Purchase Price:** | $|
|  | *(No. of shares of Common X Purchase Price per Share)* |
| **SSN / TIN:** |  |
| **Address for Notice:** |  |
| **Accredited Investor Qualification:** | *(Subscriber understands and acknowledges that this Offering is limited to "Accredited Investors," as defined in rule 501 of Regulation D promulgated pursuant to the Securities Act (as defined below).)* |
|  | ***Subscriber certifies that Subscriber is an "Accredited Investor" because Subscriber is (select all that apply):*** |

---

☐ a natural person whose individual net worth, or joint net worth, with that person's spouse, at the time of purchase exceeds $1,000,000 (not including the value of such individual's primary residence). The related amount of indebtedness secured by such primary residence up to its fair market value may also be excluded; however, indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from net worth;

☐ a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year (the year in which the purchase is made);

☐ any trust or organization, with total assets in excess of $5,000,000, not formed for the specific purpose of investing in the Company, whose purchase is directed by a sophisticated person having such knowledge and experience in financial and business matters that he is capable of evaluating the risks and merits of investing in the Company;

☐ a director or executive officer of the Company; or

☐ an entity in which all of the equity owners are accredited investors.

Subscriber understands that the Company is relying upon the representations and warranties of Subscriber contained in the attached Subscription Agreement to ensure compliance with the Securities Act of 1933, as amended (the **"*Securities Act*"**), and applicable state securities laws, and the rules and regulations promulgated thereunder. Accordingly, Subscriber hereby affirms the truth and accuracy of all information provided by Subscriber and undertakes to inform the Company if at any time prior to the purchase of the Shares any of the information provided by Subscriber herein shall cease to be true and correct.

---

| | |
|:---|:---|
| **Subscriber:** | **Acceptance by the Company:** |
| (Signature) | Name: |
|  | Title: |
| (Print Title if Signing on Behalf of an Entity) | (Date of Acceptance) |
| (Date of Subscription) | |

---

## Exhibit 10.12

**Exhibit 10.12**

**EVOTUS, INC.**

**NOTICE OF SUBSCRIPTION TO PURCHASE SHARES OF COMMON STOCK AND WARRANT**

---

| | |
|:---|:---|
| **Subscriber:** | |
|  | *(Print name exactly as you would like it to appear on your stock certificate(s))* |
| **Number of Shares:** |  |
|  | *(Round down to nearest whole share. No fractional shares will be issued)* |
| **Purchase Price per Share:** | $0.05 |
| **Total Purchase Price:** | $|
|  | *(No. of shares of Common X Purchase Price per Share)* |
| **SSN / TIN:** |  |
| **Address for Notice:** |  |
| **Accredited Investor Qualification:** | *(Subscriber understands and acknowledges that this Offering is limited to "Accredited Investors," as defined in rule 501 of Regulation D promulgated pursuant to the Securities Act (as defined below).)* |
|  | ***Subscriber certifies that Subscriber is an "Accredited Investor" because Subscriber is (select all that apply):*** |

---

☐ a natural person whose individual net worth, or joint net worth, with that person's spouse, at the time of purchase exceeds $1,000,000 (not including the value of such individual's primary residence). The related amount of indebtedness secured by such primary residence up to its fair market value may also be excluded; however, indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from net worth;

☐ a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year (the year in which the purchase is made);

☐ any trust or organization, with total assets in excess of $5,000,000, not formed for the specific purpose of investing in the Company, whose purchase is directed by a sophisticated person having such knowledge and experience in financial and business matters that he is capable of evaluating the risks and merits of investing in the Company;

☐ a director or executive officer of the Company; or

☐ an entity in which all of the equity owners are accredited investors.

Subscriber understands that the Company is relying upon the representations and warranties of Subscriber contained in the attached Subscription Agreement to ensure compliance with the Securities Act of 1933, as amended (the "Securities Act"), and applicable state securities laws, and the rules and regulations promulgated thereunder. Accordingly, Subscriber hereby affirms the truth and accuracy of all information provided by Subscriber and undertakes to inform the Company if at any time prior to the purchase of the Shares any of the information provided by Subscriber herein shall cease to be true and correct.

---

| | |
|:---|:---|
| **Subscriber:** | **Acceptance by the Company:** |
| (Signature) | Name: |
|  | Title: |
| (Print Title if Signing on Behalf of an Entity) | (Date of Acceptance) |
| (Date of Subscription) | |

---

## Exhibit 10.13

**Exhibit 10.13**

**STOCK AWARD AGREEMENT**

This Stock Award Agreement (this "**Agreement**") is executed as of July 30, 2020 and effective as of July 30, 2020 (the "**Effective Date**") by and between Urban Mining International Inc., a Delaware corporation (the "**Company**"), and [ ] (the "**Recipient**").

In consideration of the mutual covenants and representations set forth below, the Company and the Recipient agree as follows:

1. <u>Award of the Shares</u>. The parties acknowledge that the Company issued to the Recipient as of the Stock Award Date, and the Recipient accepted from the Company as of the Stock Award Date, subject to the terms and conditions set forth in this Agreement [ ] shares of the Company's Common Stock, $0.0001 par value per share (the "**Shares**"), with a price per share as of the Stock Award Date of $0.05.

2. <u>Restrictions on Transfer; Rights of First Refusal and Shareholder Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient acknowledges and agrees that the Shares are subject to the provisions of the Company's Bylaws, as amended from time to time (the "**Bylaws**"), including without limitation, all restrictions on transfer and rights of first refusal described in the Bylaws. The Recipient may inspect the Bylaws at the Company's principal office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shareholder Agreements</u>. The Recipient acknowledges and agrees that upon the request of the Company, the Recipient shall join and become a party to such shareholder agreements, which may impose certain contractual rights and obligations on the Shares, as may be entered into from time to time by and among the Company and the holders of the Company's capital stock.

3. <u>Agreement in Connection with Public Offering</u>. The Recipient agrees, in connection with the initial underwritten public offering of the Company's securities pursuant to a registration statement under the Securities Act of 1933, as amended (the "**Securities Act**"): (i) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of Common Stock of the Company held by the Recipient (other than those shares included in the offering) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company's securities for a period of 180 days from the effective date of such registration statement, which period may be extended upon the request of the underwriters for an additional period of up to 15 days if the Company issues or proposes to issue an earnings or other public release within 15 days of the expiration of the 180-day lockup period, and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering.

The Recipient agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters of such offering which are consistent with the foregoing or which are necessary to give further effect thereto. In addition, if requested, by the Company or the underwriters of such offering, the Recipient shall provide, within 10 days of such request, such information as may be required by the Company or such underwriters in connection with the completion of any public offering of the Company's securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 3 shall not apply to a registration relating solely to employee benefits plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the Shares and any shares of Common Stock (or other securities) held by the Recipient subject to the foregoing restriction until the end of the applicable period. Recipient agrees that any transferee of the Shares issued pursuant to this Agreement shall be bound by this Section 3.

4. <u>Investment Representations</u>. The Recipient represents, warrants and covenants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient is acquiring the Shares for the Recipient's own account for investment only, and not with a view to, or for sale in connection with, any distribution of the Shares in violation of the Securities Act, or any rule or regulation under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Recipient has had such opportunity as the Recipient deems adequate to obtain from representatives of the Company such information as is necessary to permit the Recipient to evaluate the merits and risks of the Recipient's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Recipient has sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the acquisition of the Shares and to make an informed investment decision with respect to the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Recipient can afford a complete loss of the value of the Shares and is able to bear the economic risk of holding such Shares for an indefinite period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Recipient acknowledges that the Company has encouraged the Recipient to consult the Recipient's own advisor to determine the tax consequences of acquiring, holding and disposing of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Recipient acknowledges that the Shares shall be subject to the Company's right of first refusal and the market stand-off (sometimes referred to as the "lock-up"), as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Recipient understands that (i) the Shares have not been registered under the Securities Act and are "restricted securities" within the meaning of Rule 144 under the Securities Act, (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the Securities Act or an exemption from registration is then available; (iii) in any event, the exemption from registration under Rule 144 will be available only after the applicable holding period required by Rule 144 has been satisfied and even then will not be available unless a public market then exists for the Common Stock, adequate information concerning the Company is then available to the public, and the other terms and conditions of Rule 144 are complied with; and (iv) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the Securities Act or to satisfy the conditions of Rule 144. Recipient further understands and agrees that regardless of whether the Shares under this Agreement have been or are registered under the Securities Act or have been registered or qualified under the securities laws of any State, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of the Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any State or any other law.

5. <u>Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Recipient any federal, state or local taxes of any kind required by law to be withheld with respect to the acquisition of the Shares by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Recipient has reviewed or has been advised to review with the Recipient's own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Recipient is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Recipient understands that the Recipient (and not the Company) shall be responsible for the Recipient's own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Rights to Continued Service</u>. The Recipient acknowledges and agrees that the transactions contemplated hereunder do not constitute an express or implied promise of continued engagement as an employee or consultant, for any period, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the Company and the Recipient and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 2 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice</u>. All notices required or permitted hereunder shall be in writing and deemed effectively given upon personal delivery or five days after deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at the address shown beneath his or its respective signature to this Agreement, or at such other address or addresses as either party shall designate to the other in accordance with this Section 6(e). Notwithstanding the foregoing, notices with respect to the Shares shall be provided in accordance with the Company's Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement; Governing Law</u>. This Agreement constitutes the entire agreement between the Company and the Recipient with respect to the subject matter hereof and supersedes in their entirety all prior undertakings and agreements of the Company and the Recipient with respect to the subject matter hereof. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to conflict of law provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Amendment</u>. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Recipient's Acknowledgments</u>. The Recipient acknowledges that the Recipient: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Recipient's own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Hutchison PLLC, is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for the Recipient.

[*Remainder of Page Intentionally Left Blank*]

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first set forth above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **Urban Mining International Inc.** | **Urban Mining International Inc.** |
| By: | /s/ Mark Zorko |
| Name: | Mark Zorko |
| Title: | Chairman |
| Mailing Address For Notice: | Mailing Address For Notice: |
| **RECIPIENT:** | **RECIPIENT:** |
| **[Awardee Name]** | **[Awardee Name]** |
| Mailing Address For Notice: | Mailing Address For Notice: |

---

## Exhibit 10.14

**Exhibit 10.14**

**URBAN MINING INTERNATIONAL INC. f/k/a Evotus, Inc.**

**NOTICE OF SUBSCRIPTION TO PURCHASE SHARES OF COMMON STOCK**

---

| | |
|:---|:---|
| **Subscriber:** | |
|  | *(Print name exactly as you would like it to appear on your stock certificate(s))* |
| **Number of Shares:** |  |
|  | *(Round down to nearest whole share. No fractional shares will be issued)* |
| **Purchase Price per Share:** | $0.15 |
| **Total Purchase Price:** | $|
|  | *(No. of shares of Common X Purchase Price per Share)* |
| **SSN / TIN:** |  |
| **Address for Notice:** |  |
| **Accredited Investor Qualification:** | *(Subscriber understands and acknowledges that this Offering is limited to "Accredited Investors," as defined in rule 501 of Regulation D promulgated pursuant to the Securities Act (as defined below).)* |
|  | ***Subscriber certifies that Subscriber is an "Accredited Investor" because Subscriber is (select all that apply):*** |

---

☐ a natural person whose individual net worth, or joint net worth, with that person's spouse, at the time of purchase exceeds $1,000,000 (not including the value of such individual's primary residence). The related amount of indebtedness secured by such primary residence up to its fair market value may also be excluded; however, indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from net worth;

☐ a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year (the year in which the purchase is made);

☐ any trust or organization, with total assets in excess of $5,000,000, not formed for the specific purpose of investing in the Company, whose purchase is directed by a sophisticated person having such knowledge and experience in financial and business matters that he is capable of evaluating the risks and merits of investing in the Company;

☐ a director or executive officer of the Company; or

☐ an entity in which all of the equity owners are accredited investors.

Subscriber understands that the Company is relying upon the representations and warranties of Subscriber contained in the attached Subscription Agreement to ensure compliance with the Securities Act of 1933, as amended (the *"**Securities Act**"),* and applicable state securities laws, and the rules and regulations promulgated thereunder. Accordingly, Subscriber hereby affirms the truth and accuracy of all information provided by Subscriber and undertakes to inform the Company if at any time prior to the purchase of the Shares any of the information provided by Subscriber herein shall cease to be true and correct.

---

| | |
|:---|:---|
| **Subscriber:** | **Acceptance by the Company:** |
| | Name: |
| (Signature) | Title: |
| (Print Title if Signing on Behalf of an Entity) | (Date of Acceptanee) |
| (Date of Subscription) |  |

---

## Exhibit 10.15

**Exhibit 10.15**

**STOCK AWARD AGREEMENT**

This Stock Award Agreement (this "**Agreement**") is executed as of November 18 , 2020 and effective as of November 18, 2020 (the "**Effective Date**") by and between Urban Mining International Inc., a Delaware corporation (the "**Company**"), and [ ] (the "**Recipient**").

In consideration of the mutual covenants and representations set forth below, the Company and the Recipient agree as follows:

1. <u>Award of the Shares</u>. The parties acknowledge that the Company issued to the Recipient as of the Stock Award Date, and the Recipient accepted from the Company as of the Stock Award Date, subject to the terms and conditions set forth in this Agreement [ ] shares of the Company's Common Stock, $0.0001 par value per share (the "**Shares**"), with a price per share as of the Stock Award Date of $0.05.

2. <u>Restrictions on Transfer; Rights of First Refusal and Shareholder Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient acknowledges and agrees that the Shares are subject to the provisions of the Company's Bylaws, as amended from time to time (the "**Bylaws**"), including without limitation, all restrictions on transfer and rights of first refusal described in the Bylaws. The Recipient may inspect the Bylaws at the Company's principal office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shareholder Agreements</u>. The Recipient acknowledges and agrees that upon the request of the Company, the Recipient shall join and become a party to such shareholder agreements, which may impose certain contractual rights and obligations on the Shares, as may be entered into from time to time by and among the Company and the holders of the Company's capital stock.

3. <u>Agreement in Connection with Public Offering</u>. The Recipient agrees, in connection with the initial underwritten public offering of the Company's securities pursuant to a registration statement under the Securities Act of 1933, as amended (the "**Securities Act**"): (i) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of Common Stock of the Company held by the Recipient (other than those shares included in the offering) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company's securities for a period of 180 days from the effective date of such registration statement, which period may be extended upon the request of the underwriters for an additional period of up to 15 days if the Company issues or proposes to issue an earnings or other public release within 15 days of the expiration of the 180-day lockup period, and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering.

The Recipient agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters of such offering which are consistent with the foregoing or which are necessary to give further effect thereto. In addition, if requested, by the Company or the underwriters of such offering, the Recipient shall provide, within 10 days of such request, such information as may be required by the Company or such underwriters in connection with the completion of any public offering of the Company's securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 3 shall not apply to a registration relating solely to employee benefits plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the Shares and any shares of Common Stock (or other securities) held by the Recipient subject to the foregoing restriction until the end of the applicable period. Recipient agrees that any transferee of the Shares issued pursuant to this Agreement shall be bound by this Section 3.

4. <u>Investment Representations</u>. The Recipient represents, warrants and covenants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient is acquiring the Shares for the Recipient's own account for investment only, and not with a view to, or for sale in connection with, any distribution of the Shares in violation of the Securities Act, or any rule or regulation under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Recipient has had such opportunity as the Recipient deems adequate to obtain from representatives of the Company such information as is necessary to permit the Recipient to evaluate the merits and risks of the Recipient's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Recipient has sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the acquisition of the Shares and to make an informed investment decision with respect to the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Recipient can afford a complete loss of the value of the Shares and is able to bear the economic risk of holding such Shares for an indefinite period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Recipient acknowledges that the Company has encouraged the Recipient to consult the Recipient's own advisor to determine the tax consequences of acquiring, holding and disposing of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Recipient acknowledges that the Shares shall be subject to the Company's right of first refusal and the market stand-off (sometimes referred to as the "lock-up"), as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Recipient understands that (i) the Shares have not been registered under the Securities Act and are "restricted securities" within the meaning of Rule 144 under the Securities Act, (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the Securities Act or an exemption from registration is then available; (iii) in any event, the exemption from registration under Rule 144 will be available only after the applicable holding period required by Rule 144 has been satisfied and even then will not be available unless a public market then exists for the Common Stock, adequate information concerning the Company is then available to the public, and the other terms and conditions of Rule 144 are complied with; and (iv) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the Securities Act or to satisfy the conditions of Rule 144. Recipient further understands and agrees that regardless of whether the Shares under this Agreement have been or are registered under the Securities Act or have been registered or qualified under the securities laws of any State, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of the Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any State or any other law.

5. <u>Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recipient acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Recipient any federal, state or local taxes of any kind required by law to be withheld with respect to the acquisition of the Shares by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Recipient has reviewed or has been advised to review with the Recipient's own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Recipient is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Recipient understands that the Recipient (and not the Company) shall be responsible for the Recipient's own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Rights to Continued Service</u>. The Recipient acknowledges and agrees that the transactions contemplated hereunder do not constitute an express or implied promise of continued engagement as an employee or consultant, for any period, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the Company and the Recipient and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 2 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice</u>. All notices required or permitted hereunder shall be in writing and deemed effectively given upon personal delivery or five days after deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at the address shown beneath his or its respective signature to this Agreement, or at such other address or addresses as either party shall designate to the other in accordance with this Section 6(e). Notwithstanding the foregoing, notices with respect to the Shares shall be provided in accordance with the Company's Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement; Governing Law</u>. This Agreement constitutes the entire agreement between the Company and the Recipient with respect to the subject matter hereof and supersedes in their entirety all prior undertakings and agreements of the Company and the Recipient with respect to the subject matter hereof. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to conflict of law provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Amendment</u>. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Recipient's Acknowledgments</u>. The Recipient acknowledges that the Recipient: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Recipient's own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Hutchison PLLC, is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for the Recipient.

[*Remainder of Page Intentionally Left Blank*]

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first set forth above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **Urban Mining International Inc.** | **Urban Mining International Inc.** |
| By: | /s/ Mark Zorko |
| Name: | Mark Zorko |
| Title: | Chairman |
| Mailing Address For Notice: | Mailing Address For Notice: |
| **RECIPIENT:** | **RECIPIENT:** |
| **[Awardee Name]** | **[Awardee Name]** |
| Mailing Address For Notice: | Mailing Address For Notice: |

---

## Exhibit 10.16

**Exhibit 10.16**

*Certain identified information has been excluded from this exhibit because it is both not material and is the type that the registrant treats as private or confidential. Information that was omitted has been noted in this document with a placeholder identified by the mark "[\*\*\*]".*

**Modern ![](ex10-16_001.jpg) Mining**

February 28, 2022

**Privileged and Confidential**

Basil Botha

[\*\*\*]

Dear Basil:

<u>Re: Modern Mining Technology Corp, (the "Corporation" or "MMT"</u> 

This letter outlines the agreement (the "**Agreement**") we have reached to change your role with the Corporation. As you and the board of directors (the "**Board**") are aware, you are currently the Corporation's CEO and a Director. As you and the Board are further aware, this proposed change has been discussed at length at the Board level.

To recap, MMT proposes the following in respect to your changed role:

&nbsp;&nbsp;&nbsp;&nbsp;1. You
 will resign as a director of the Corporation and as the Corporation's CEO effective
 upon the date agreement this settlement is effective (namely, March 1, 2022 (the "**Effective Date** ")); and

&nbsp;&nbsp;&nbsp;&nbsp;2. You
will be appointed as the "Principal Technical Advisor'' of the Corporation having the duties and responsibilities outlined below. We further understand you will provide such services through
your company, 616538 BC Ltd ()"**616** "). Any references to you herein shall be deemed to include 616.

The Corporation's financial obligations to you (sometimes also referred to as the "**Executive**") will be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) MMT
 will pay all outstanding accumulated expenses incurred by you to date in the amount of approximately
 US$13,000;

&nbsp;&nbsp;&nbsp;&nbsp;(b) MMT
 will pay all accrued salary owing to you from September 1, 2021 to February 28, 2022 in the
 amount of US$78,000. This amount is based on your current salary of US$13,000/month;

&nbsp;&nbsp;&nbsp;&nbsp;(c) commencing
 March 1, 2022, your salary will increase to US$14,000 per month. Such salary will be payable
 for the period starting March 1, 2022 and run for eighteen (18) months post the Corporation's
 proposed Nasdaq IPO (herein, the "**IPO** ").

MMT can terminate your employment at any time for "cause" (as defined below) or, failing having Cause for dismissal, by paying the full term of salary owing through the balance of the 18 months post IPO - either in a lump sum or monthly through the employment term;

For the purposes herein, "**Cause**" shall be limited to the Executive's: (A) embezzlement or willful misappropriation of funds of MMT, (B) conduct that causes material harm to MMT or willful misconduct by the Executive; (C) conviction or commission of, or plea of nolo contendere by, Executive of any felony, misdemeanor or other illegal conduct involving an act of moral turpitude or otherwise relating directly or indirectly to the business or reputation of MMT; (D) habitual drug or other substance abuse that interferes in any material respects with the performance of Executive's duties under this Agreement; (E) debarment by any federal agency that would limit or prohibit Executive from serving in his prescribed capacity for MMT under this Agreement; (F) continuing failure to communicate and fully disclose any and all information related to the business, operations, management and accounting of the Corporation to the Board, the failure of which would adversely impact the Corporation or may result in a violation of state or federal securities laws; (G) continuing willful and intentional failure to perform is duties as stated herein or as reasonably requested by the Board; or (I) dishonesty towarids, fraud upon, or deliberate injury or attempted injury to MMT;

&nbsp;&nbsp;&nbsp;&nbsp;(d) MMT
will pay your reasonable documented out-of-pocket expenses during your term of employment;

&nbsp;&nbsp;&nbsp;&nbsp;(e) MMT
will leave your performance warrants in place, unamended. Such warrants will be considered fully vested and shall not expire in the case
of the Executive's employment being unilaterally terminated by the Corporation. Specifically, 600,00 performance warrants will be issued when the Corporation achieves a gross turnover of US$10MM and 800,000 performance warrants will be issued when the Corporation
achieves a gross turnover of US$20MM. In each case, the performance warrants will be issued at US$0.05 cents per each performance warrant
and will be issued within 14 days of the Corporation's financial statements being completed.

&nbsp;&nbsp;&nbsp;&nbsp;(f) MMT
 will pay you a one-time bonus of US$50,000 contingent upon the completion of the IPO. Specifically,
 such bonus amount will be paid within thirty (30) days of closing of the IPO. If there is
 no IPO, MMT will have no obligation to pay you any bonus; and

&nbsp;&nbsp;&nbsp;&nbsp;(g) MMT
 further agrees to pay the US$78,050 in advances you have made to MMT (bearing 1% interest)
 within ten (10) days of closing the IPO.

We further confirm that you will report directly to the Board. Your priorities and responsibilities will be to ensure that MMT establishes a solid basis for the ordering of equipment and commissioning of the Raleigh, North Carolina production facility within a period of six (6) months following the IPO. From March 1, 2022 onward, you agree to devote 100% of your time to MMT's affairs and you agree to spend two to three weeks per month at the facility in Raleigh.

The scope of work you will be responsible for will be the following: human resources, staff training (including, if directed by the Board, training Peter Dielwart to assume a greater role and title with the Corporation) and recruitment, security, safety, procurement of feed-stock, instituting production metrics for quality control and recoveries, set-up of the laboratory and any other aspects relating to operation of the facility.

You hereby further agree that you will not, without the prior written consent of the Corporation, during the period commencing on the date hereof and ending on the date twelve (12) months after the Corporation's initial public offering (the "**IPO**") (the "**Lock-Up Period**") (a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of common stock, preferred stock or securities exercisable, convertible or exchangeable for common stock or preferred stock of the Corporation ("**Capital Stock**") or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. After the expiration of such Lock-Up Period, until the date twenty-eight (28) months after the date of the IPO (the "**Leak-Out Period**") you may sell shares of Capital Stock within the following cumulative limits based on the aggregate number of shares of Capital Stock beneficially owned by you on the commencement date of such Leak-Out Period:

12 months — 20%

16 months — 20%

20 months — 20%

24 months — 20%

28 months — 20%

For purposes of determining whether the overall percentage limit has been reached during the Leak-Out Period, all prior sales of Capital Stock made during the Leak-Out Period shall be aggregated with the proposed sale.

In addition, you hereby agree that you will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the IPO and ending on the date specified by the Corporation and the managing underwriter (such period not to exceed 365 days), or such other period as may be requested by the Corporation or an underwriter to accommodate regulatory restrictions on (1)the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), (a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Capital Stock held immediately prior to the effectiveness of the registration statement for the IPO or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. The foregoing provisions of this paragraph shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable to you if all officers, directors and holders of more than ten percent (10%) of the outstanding shares of voting common stock (after giving effect to the conversion into voting common stock of all outstanding preferred stock and warrants) enter into similar agreements. The underwriters in connection with the IPO are intended third-party beneficiaries of this paragraph and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. You further agree to execute such agreements as may be reasonably requested by the underwriters in the IPO that are consistent with this paragraph or that are necessary to give further effect thereto.

You agree that you will seek *independent legal advice* before signing this Agreement and confirm that you have either done so or have decided to waive your right to do so.

In connection with this Agreement, you agree to sign, on the Effective Date, a Resignation and Mutual Release. The Mutual Release shall be in standard form whereby each Party releases the other Party from making any claims against the other Party in respect to any matter leading up to the execution of this Agreement; provided, for clarity, nothing in the Mutual Release shall release the Executive or MMT from their respective obligations under this Agreement.

Concurrent with your changed role with the Corporation effective the Effective Date, ivilvIT confirms its tentative plans to do the following:

&nbsp;&nbsp;&nbsp;&nbsp;I. replace
 you with Jeet Basi as the Corporation's Chief Executive Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;2. appoint
 Olga Balanovskaya, CPA, CGA, ACCA as the Corporation's new Chief Financial Officer.

&nbsp;&nbsp;&nbsp;&nbsp;3. MMT
 will carry out its on-going plans and complete the long discussed debenture financing (the
 "Debenture Financing").

&nbsp;&nbsp;&nbsp;&nbsp;4. This
 Agreement is effective upon closing by the Corporation of the Debenture Financing.

If the foregoing terms are acceptable, please sign the acknowledgment below confirming same.

Yours truly,

MODERN MINING TECHNOLOGY CORP.

---

| | | |
|:---|:---|:---|
| Per: | /s/ Sean Bromley | /s/ Sean Bromley |
|  | Name: | Sean Bromley |
|  | Title: | Authorized Signing Officer |

---

---

| | |
|:---|:---|
|  | The foregoing terms are agreed to and <br> accepted this 1<sup>st</sup> day of March, 2022 |
| /s/ L. Watt | /s/ Basil Botha |
| Witness Name: | Basil Botha |

---

**616538 BC LTD.** 

---

| | | |
|:---|:---|:---|
| Per: | /s/ Basil Botha | /s/ Basil Botha |
|  | Name: | Basil Botha |
|  | Title: | Authorized Signing Officer |

---

## Exhibit 10.17

**Exhibit 10.17**

---

| | |
|:---|:---|
| STATE OF NORTH CAROLINA<br>COUNTY OF PITT | **LEASE AGREEMENT** |

---

THIS LEASE AGREEMENT is made and entered this 22<sup>ND</sup> day of September, 2022, by and between GRAND VENTURES, LLC*,* a North Carolina limited liability company (the "Lessor"); and MODERN MINING TECHNOLOGY CORP., a Delaware corporation authorized to transact business in the State of North Carolina (the "Lessee").

**<u>W I T N E S S E T H</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>PREMISES LEASED</u>. Lessor hereby leases to Lessee a building containing ten thousand (10,000) square feet (the "Premises") and associated improvements and non-exclusive parking rights on the parcel of land located at 2255 County Home Road, Greenville, Pitt County, North Carolina, and being more particularly located on the property described on **Exhibit A** attached hereto and incorporated herein by reference. Subject to the option contained in Section 39 below, Lessor specifically reserves the right to construct an addition to the building located in the grassy area located on the south side of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>TERM</u>.

&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. The term of this lease shall commence immediately following Lessor's acquisition of the Premises (the "Commencement Date"), which the parties anticipate will occur on or before October 1, 2022 (the "Outside Delivery Date"). The Lease shall continue for a period for of three (3) Lease Years following the Commencement Date. As used herein, the term "Lease Year" shall mean a period of approximately one (1) year, with the first Lease Year beginning on the Commencement Date and expiring on the last day of the month containing the first anniversary of Commencement Date, with each subsequent Lease Year commencing upon the expiration of the prior Lease Year and continuing for a period of twelve (12) months thereafter.

&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 the event that Lessor does not acquire the Premises on or prior to the Outside Delivery Date, then Lessee shall have the option to terminate this Lease upon written notice to Lessor, and upon such written notice, this Lease shall be terminated, Lessee shall receive a full refund of any prepaid rents and security deposits, and neither party shall have any further rights or obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>RIGHT TO EXTEND TERM</u>. Provided Lessee is not in default of its obligations under the terms of this Lease, Lessee shall have the option to extend the term of this lease for three (3) additional one (1) year terms by giving notice thereof to Lessor in writing at least one hundred twenty (120) days prior to the expiration of the current term of the lease. Annual rental shall increase upon each such extension by Lessee as provided in Section 4 below.

**Lease - Page 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>RENT</u>.

&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. <u>Base Rent</u>. Subject to any specific provision of this Lease, Lessee shall pay to Lessor annual rent during the first three (3) Lease Years in the sum of ONE HUNDRED TWENTY THOUSAND AND 00/100 DOLLARS ($120,000.00) payable in monthly installments of TEN THOUSAND AND 00/100 DOLLARS ($10,000.00) each. The first month's rent shall be paid upon the execution of this Lease. Thereafter, all such rental installments shall be due and payable in advance on the 1<sup>ST</sup> day of each calendar month for and during the Term of this Lease. Rental for any partial month shall be prorated on the basis of a thirty (30) day 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Adjusted Base Rent</u>. At the beginning of each renewal term, the rent shall be increased by an amount determined by multiplying the rent paid during the prior rent period by a fraction, the denominator of which shall be the Consumer Price Index ("CPI" as defined below) for the first month of the prior Lease Year and the numerator of which shall be the same CPI for the first month of the current Lease Year. Notwithstanding anything herein to the contrary, the adjusted rent amount determined hereunder shall never be less than the rent amount paid during the immediately preceding Lease Year. The term "CPI" means the Consumer Price Index - U.S. City Averages for All Urban Consumers - All Items (1982- 84=100), of the United States Bureau of Labor Statistics. If the Bureau of Labor Statistics revises the manner in which such CPI is determined, Lessor may adjust the revised index to produce results equivalent, as nearly as possible, to those which would have been obtained if the CPI had not been so revised. If the 1982-84 average shall no longer be used as an index of 100, such change shall constitute a revision. If the CPI shall become unavailable to the public because publication is discontinued, or otherwise, Lessor will substitute therefor, a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall be available then a comparable index published by a major bank or other financial institution.

&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. The increased rent to be paid on account of the rent adjustment shall be paid in equal monthly installments in the same manner as provided for Base Rent.

&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;d. All rental shall be paid to Lessor or its authorized agent at the address set out in the NOTICE paragraph below or at such other place as may be designated by Lessor from time to time. Delivery and payment of rent shall be deemed made only upon receipt of the applicable rent payment at the address of the Lessor set out in the NOTICE paragraph below; placing a rent payment in the mail shall not constitute delivery or payment of the rent.

&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;e. <u>Security Deposit</u>. Lessee, contemporaneously with the execution of this Lease, will deposit with Lessor forthwith the sum of Thirty Thousand and 00/100 Dollars ($30,000.00) which shall be treated as a security deposit and shall be held by Lessor, without liability for interest as security for the faithful performance by Lessee of all of the terms, covenants, and conditions of this Lease by said Lessee to be kept and performed during the term hereof (the "Security Deposit"). It is expressly understood that the Security Deposit does not apply toward rent, except that if at any time during the term of this Lease any of the rent herein reserved shall be overdue and unpaid, or any other sum payable by Lessee to Lessor hereunder shall be overdue and unpaid then Lessor may, at the option of Lessor (but Lessor shall not be required to), appropriate and apply any portion of the Security Deposit to the payment of any such overdue rent or other sum.

**Lease - Page 3**

In the event of the failure to keep and perform any of the terms, covenants, and conditions of this Lease to be kept and performed by Lessee, then the Lessor at its option may, after terminating this Lease, appropriate and apply the Security Deposit or so much thereof as sustained or suffered by Lessor due to such breach on the part of Lessee. Should the entire Security Deposit, or any portion thereof, be appropriated and applied by Lessor for the payment of overdue rent or other sums due and payable to Lessor by Lessee hereunder, then Lessee shall, upon the written demand of Lessor forthwith remit to Lessor a sufficient amount in cash to restore the Security Deposit to the original sum deposited, and Lessee's failure to do so within five (5) days after receipt of such demand shall constitute a breach of this Lease. Should Lessee comply with all of said terms, covenants, and conditions and promptly pay all of the rental herein provided for as it falls due, and all other sums payable by Lessee to Lessor hereunder, the Security Deposit shall be returned in full to Lessee at the end of the term of this Lease, or upon the earlier termination of this Lease.

Lessor shall deliver the Security Deposit deposited hereunder by Lessee to the purchaser of Lessor's interest in the Premises in the event that such interest is sold, and thereupon Lessor shall be discharged from any further liability with respect to such deposit.

Lessor shall be entitled to intermingle the Security Deposit with its own funds. The Security Deposit shall not preclude the Lessor from recovering any additional rent or damage which may be due or sustained as a result of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>EXPENSE REIMBURSEMENT</u>. As additional rental hereunder, Lessee also agrees to reimburse Lessor for all property taxes, property insurance premium costs and fire and extended coverage insurance premium costs for the Premises (the "Building Expenses") actually incurred by Lessor. Within twenty (20) days of Lease signing, Lessee shall reimburse Lessor for 2022 property taxes for the months of October, November and December in the amount of $1,885.68, and property insurance for the twelve-month period commencing on the Commencement Date in the amount of $3,094.00. Thereafter, Lessee shall pay Lessor within twenty (20) days after receipt of an invoice therefor from Lessor accompanied by reasonable documentation of the actual Building Expenses for the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>USE AND OCCUPANCY</u>.

&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. Lessee shall use the Premises for office, manufacturing, warehouse, distribution and related purposes and for other uses permitted under applicable zoning ordinances and restrictive covenants. Lessee shall not use the Premises for personal habitation or any unlawful purpose. Notwithstanding the anything to the contrary herein, if applicable zoning ordinances or restrictive covenants no longer permit Lessee's use of the Premises, Lessee has the option to terminate this Lease effective as of the date upon which such zoning ordinance or restrictive covenant takes effect.

**Lease - Page 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Premises shall be open and accessible to Lessee twenty-four hours per day, seven days per week, including holidays. Lessee shall comply with all applicable statutes, ordinances, rules and regulations of federal, state and municipal governments applicable to Lessee's use of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>ALTERATIONS AND IMPROVEMENTS</u>. Lessee may alter, improve and change the Premises with the written consent of Lessor which Lessor will not unreasonably withhold; provided, however, that the locating and relocating of moveable partitions, telephone and electrical outlets, light fixtures, equipment, and trade fixtures shall not be deemed alterations, improvements or changes to the Premises. Notwithstanding anything to the contrary herein, Lessee shall be permitted to make non-structural alterations to the interior of the Premises which do not cost in excess of $5,000 (per calendar year) without any prior consent or approval of Lessee provided that (A) such alterations do not impact the structure of the Premises or the building systems; (B) such alterations are not visible from the exterior of the Premises, (C) such alterations do not require a building permit or local equivalent and (D) Lessee shall in any event provide Lessor with written notice of such alterations not less than five (5) business days prior to commencement of same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>MAINTENANCE AND REPAIRS; NET LEASE</u>. Lessor represents and warrants that the roof and all mechanical systems in the Premises will be in good working order at the start of this Lease. Throughout the term of this Lease Agreement, Lessee shall be responsible for all repairs and maintenance to the Premises, including without limitation, all repairs and maintenance of all structural components, all walls, doors and windows, the roof, the heating, ventilation and air conditioning systems, all parking and landscaped areas, all mechanical systems, and the plumbing and electrical systems, and shall return the Premises to the Lessor at the expiration of the term of the Lease in as good a state of repair as when the Lessee's occupancy started, reasonable wear and tear excepted. Lessee further shall be responsible for all snow and ice removal from the Premises. If Lessee fails to make any repairs promptly and adequately, Lessor may, but need not, make the repair. In the event Lessor makes the repairs, Lessee shall promptly pay the reasonable costs of the repair incurred by Lessor. Notwithstanding anything to the contrary herein, if in any calendar year the cost of maintenance and repairs for the roof and all mechanical systems in the Premises, in the aggregate, exceed $15,000 (the "Annual Repair Cap"), all subsequent repairs and maintenance shall be Lessor's responsibility. In the event that costs to repair and maintain the roof and mechanical systems of the Premises exceed the Annual Repair Cap in a given calendar year, Lessee, at its option, may (a) notify Lessor of a repair, after which Lessor shall promptly (but in no event longer than ten (10) business days) initiate the requested repair, or (b) make such repair and seek reimbursement for reasonable expenses from Lessor within thirty (30) days of notice 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;9. <u>COMPLIANCE WITH CODES</u>. All repairs, alteration, additions, or improvements made by Lessee shall comply with applicable building codes.

**Lease - Page 5**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>TRADE FIXTURE AND SURRENDER OF PREMISES</u>. All trade fixtures, merchandise, supplies, and equipment owned by Lessee and installed in the Premises shall remain the property of Lessee and at the end of the term or any final extension thereof Lessee shall remove the same and peaceably yield up the Premises to Lessor in as good repair and condition as when delivered to it, excepting ordinary wear and tear, damage by fire, elements or casualty, or any damage not due to the negligence of Lessee; including, the obligation of Lessee to remove any improvement which it has made to the Premises during the lease term if so requested by Lessor. Lessee further agrees to repair any damage to the Premises caused by the removal of its property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>LESSEE'S SIGNS</u>. Lessee may install its customary and usual signs on and adjacent to the Premises, subject to applicable zoning ordinances and restrictive covenants. All signs located on the Premises shall be in good taste so as not to detract from the general appearance of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>UTILITY SERVICE; WASTE REMOVAL.</u>

&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. Lessee shall pay all charges for utility services including heat, air conditioning, water, gas, electricity and data services used on the Premises by Lessee.

&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. Lessee shall pay all charges for trash and waste removal from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>MECHANIC'S LIENS</u>. Any mechanic's lien filed against the Premises for work or materials furnished to either Lessor or Lessee shall be discharged by such respective party responsible therefore prior to the commencement of any legal action to perfect the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>ACCESS BY LESSOR</u>.

&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. Lessor, at reasonable times and frequency and with at least forty- eight (48) hours' prior written notice to Lessee (except for emergency situations when Lessor may have immediate access), shall have the right to enter the Premises to examine the same, to show them to prospective purchasers, mortgagees, or lessees and to make such repairs, alterations, improvements or additions required hereunder without the same constituting an eviction of Lessee in whole or in part. Rent shall not abate while any repairs, alterations, improvements or additions are being made provided that Lessor shall proceed expeditiously with the same and without unreasonable interference or interruption to Lessee's use of the Premises.

&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. If Lessee shall not have exercised its right to extend the term within the required time, Lessor may post a customary sign on the Premises advertising the property for lease or sale, but no sign shall be posted in any window or doorway of the store portion of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>PAYMENT OF PROPERTY TAXES</u>.

&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. During the term of this Lease and any renewals thereof and subject to Lessee's obligation to reimburse Lessor as provided in Section 5 above, Lessor shall pay for all real estate ad valorem taxes and assessments levied against the land and the improvements on the Premises.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Lessee shall pay promptly all personal property taxes lawfully levied against personal property of any kind upon or about the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>PERSONAL INJURY AND PROPERTY DAMAGE INSURANCE</u>.

&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. Except to the extent caused by the gross negligence and willful misconduct of Lessor, Lessee shall indemnify Lessor and save it harmless from and against any and all claims, liability and expense for damages to any person or property in, on, or about the Premises arising out of the acts or neglect of Lessee. As additional rental, Lessee shall procure and keep in effect during the entire term hereof public liability and property damage insurance in which the limits of public liability shall be at least Two Million Dollars ($2,000,000.00) combined single limit coverage, and shall cause Lessor to be named as an insured party therein to the extent of its interest.

&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. Lessor shall carry fire and extended coverage insurance on all of the buildings and improvements on the Premises in an amount equal to the replacement value thereof and such insurance coverage shall be adjusted as needed to reflect change in property values. Said insurance shall insure against such hazards as are included in a standard extended coverage endorsement. As additional rental, Lessee shall reimburse Lessor for the cost thereof as provided in Section 5 above.

&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. Lessee shall cause Lessor to be named as an additional insured on all insurance policies it is required to carry under this Section 15 and shall provide Lessor with certificates of insurance or copies of all such policies within five (5) days of the Commencement Date which shall reflect that the policies shall not be canceled without thirty (30) days prior notice to Lessor.

&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;d. Lessee shall pay for and maintain such insurance on its contents as Lessee so desires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>DAMAGE TO PREMISES</u>.

&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. In the event the Premises or any material portion thereof or any adjoining property shall be damaged by fire or other casualty during the term hereof so as to render the Premises untenantable, Lessor shall promptly restore the Premises to its previous condition, and rent shall equitably abate during any such period based upon the portion of the Premises which are untenantable during such period of repair. Notwithstanding anything to the contrary herein, (i) if a fire or other casualty occurs and Lessor estimates that damage to any casualty cannot be repaired within 180 days, then Lessee shall have the option to terminate this Lease effective as of the date of the casualty; and (ii) if a fire or other casualty occurs and (x) Lessor has failed to substantially restore the Premises within 180 days of the casualty (the "Restoration Period"), (y) the Restoration Period has not been delayed by Lessee delays or force majeure and (z) Lessee gives Lessor written notice of the termination within fifteen (15) business days after the end of the Restoration Period (as extended day for day by any Lessee delay or force majeure event), then Lessee shall have the option of terminating this Lease effective as of the date of the casualty; provided, however, that if Lessor is delayed by Lessee of force majeure, then Lessor must provide Lessee with notice of the delays within ten (10) days of the Lessee delay event or force majeure stating the reason for the delays and a good faith estimate of the length of the delays.

**Lease - Page 7**

&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. Lessor and Lessee hereby release and discharge each other and any employee or representative of each from liability whatsoever hereafter arising from loss, damage, or injury caused by fire or other casualty for which insurance is required to be carried hereunder by the injured party at the time of such loss, damage, or injury to the extent of any recovery by the injured party under such insurance, provided such insurance permits a waiver of liability and subrogation 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;18. <u>EMINENT DOMAIN</u>. If the whole or any material part of the Premises or any building in which the Premises are located, or more than fifty percent (50%) of any parking area which is a part of the Premises, shall be taken by or conveyed to any public authority under the power of eminent domain or by private purchase in lieu thereof, then and in that 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Lessee shall be entitled to terminate this lease in its discretion;

&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. Lessor and Lessee shall share in the proceeds arising from condemnation or the threat thereof in accordance with their respective interests in the Premises; 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;c. Nothing contained herein shall be deemed or construed to prevent Lessor or Lessee from enforcing and prosecuting a claim for the value of their respective interests in a condemnation proceeding brought against either under a power of eminent domain. For the avoidance of doubt, Lessee shall not be prevented from making a claim against the condemning party (but not against Lessor) for any moving expenses, loss of profits, or taking of Lessee's personal property (other than its leasehold estate) to which Lessor may be entitled; provided that any such award shall not reduce the amount of the award otherwise payable for the taking of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>BANKRUPTCY</u>. In the event the Premises or any rights therein shall be levied on by execution or other process of law by a creditor of either party, or if either party shall be adjudged bankrupt or insolvent, or if any receiver shall be appointed for the business and property of either party, or if any assignment shall be made of either party's property for the benefit of creditors, thereby diminishing any right or privilege granted by this lease to the other party, then the other party may terminate this lease forthwith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>FORCE MAJEURE</u>. Neither party hereto shall be required to perform any term, condition, or covenant of this lease during such time performance, after the exercise of due diligence to perform, is delayed or prevented by acts of God, civil riots, organized labor disputes, or governmental restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>WARRANTIES AND REPRESENTATION BY LESSOR</u>. In addition to any other warranties and representations by Lessor contained herein, Lessor expressly warrants and represents to Lessee:

&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. That Lessor has not covenanted or agreed with anyone to restrict the use of the Premises for Lessee's purposes and Lessor knows of no covenants, agreements or restrictions affecting the Premises which would prohibit or restrict such use by Lessee; 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. That Lessor owns the Premises or will own the Premises on the Commencement Date; and

**Lease - Page 8**

&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. That to the best of Lessor's knowledge and belief, the Premises is not identified on the current or proposed (i) National Priorities List under 40 C.R.F. § 300, (ii) Comprehensive Environmental Response Compensation and Liability Inventory System ("CERCLIS") list, or (iii) any list arising from a state statute similar to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601 <u>et seq</u>. ("CERCLA"). To the best of Lessor's knowledge and belief, there are no present or past actions, activities, circumstances, conditions, events or incidents affecting the Premises that could form the basis for assertion of any claim against the Lessee under any federal, state or local law or regulation relating to protection of human health or the environment, including, without limitation, any release (as defined in CERCLA, or in any applicable state or local law or regulations) of chemicals, pollutants, contaminants, wastes or toxic substances, including, without limitation, the following: (i) solid or hazardous waste, as defined in the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 <u>et seq</u>., or in any applicable state or local law or regulation; (ii) hazardous substances, as defined in CERCLA, or in any applicable state or local law or regulation; (iii) chemical substances or mixtures, as defined in the Toxic Substances Control Act, 15 U.S.C. 2601 <u>et seq</u>., or in any applicable state or local law or regulation; (iv) pesticides, as defined in the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 135 <u>et seq</u>., or in any applicable state or local law or regulation; or (v) crude oil or fractions thereof, gasoline or any other petroleum product or byproduct, polychlorinated biphenols, asbestos or urea formaldehyde; (collectively, "Hazardous Materials"). To the best of Lessor's knowledge and belief, there are currently no underground storage tanks existing on the Premises, and no underground storage tanks have existed on the Premises which are or were used to store Hazardous Materials of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>HAZARDOUS SUBSTANCES</u>. Lessee shall not cause or permit any Hazardous Materials to be used, stored, generated, or disposed of on, in, or about the Premises. If any Hazardous Materials are used, stored, generated, or disposed of on, in, or about the Premises, except pursuant to Lessor's prior written consent, or if any part of the Premises becomes contaminated in any manner for which Lessee is legally liable, then, except to the extent caused by the gross negligence and willful misconduct of Lessor, Lessee shall indemnify and hold Lessor harmless from any and all claims, damages, fines, judgments, penalties, costs, liabilities and/or losses (including without limitation, a decrease in the value of the Premises, damages caused by loss or restriction of rentable or usable space, damages caused by adverse impact on marketing of space, and any and all sums paid for settlement of claims, attorneys' fees, consultants' fees and experts' fees) arising during or after the Lease term or any renewal thereof and arising in connection with such Hazardous Materials or contamination. This indemnification includes, without limitation, any and all costs incurred because of any investigation of the site or any clean- up, removal, or restoration mandated or conducted by or on behalf of any federal, state or local agency or political subdivision. Without limitation of the foregoing, if Lessee causes or permits the presence of any Hazardous Materials on the Premises and that results in contamination, then Lessee shall promptly, at its sole expense, take any and all necessary or appropriate actions to return the Premises to the condition existing prior to the presence of any such Hazardous Materials. Lessee shall first obtain Lessor's written approval for any such remedial action.

**Lease - Page 9**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>QUIET ENJOYMENT BY LESSEE</u>. Lessor covenants that if Lessee performs all the terms, conditions and covenants of this lease to be performed by Lessee, Lessee shall peaceably and quietly hold and enjoy the Premises for Lessee's purposes for the term hereof without hindrance or interruption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>ASSIGNMENT AND SUBLEASING BY LESSEE</u>. Lessee shall not allow or permit any transfer or conveyance of this Lease or any interest under it or any lien upon Lessee's interest by operation of law, or assign or convey this Lease or any interest under it, or sublet the Premises or any part thereof, without the prior written consent of Lessor which will not be unreasonably withheld. Notwithstanding the foregoing, (a) Lessee may assign this Lease or sublease part or all of the Premises without Lessor's consent (but with notice to Lessor) to: (i) any corporation, limited liability company, or partnership that controls, is controlled by, or is under common control with, Lessee; or (ii) any corporation, limited liability company, limited partnership or other business entity resulting from the merger or consolidation with Lessee or to any entity that acquires all of Lessee's equity or assets as a going concern of the business that is being conducted on the Premises; provided, however, in either case, (x) the assignor remains liable under the Lease and the assignee or sublessee is a bona fide entity and assumes the obligations of Lessee in writing, (y) Lessor receives notice of the assignment, or subletting, and a copy of the assignment and assumption agreement, or sublease, within ten (10) days after the effective date thereof; and (z) in the case of an assignment, the tangible net worth of the assignor and assignee, in the aggregate, following such assignment, shall exceed the tangible net worth of the Lessee immediately prior to such transfer; and (b) without Lessor's consent, Lessee may effectuate a public offering of Lessee's stock on any stock exchange in the United States or Canada, including, without limitation, the New York Stock Exchange or the Toronto Stock Exchange, or on the over- the-counter market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>REMEDIES</u>. All rights and remedies of Lessor herein enumerated shall be cumulative, and none shall exclude any other right or remedy allowed by law.

&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. Lessee shall pay a late fee equal to five percent (5%) of each monthly installment of rent required in Section 4 herein, which is not received by the Lessor within ten (10) days from the date that the same is due. The assessment, and or acceptance of a late fee by the Lessor shall not be deemed a waiver by Lessor of any other remedies available to Lessor under the terms of this Lease Agreement or the applicable laws of the State of North Carolina.

&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 the event Lessee fails to make any other payment on the date it is due to Lessor as provided for under this Lease Agreement, Lessee shall pay interest at a variable per annum rate equal to the "prime rate" (or its substantial equivalent) as announced by Wells Fargo Bank, N.A. (or its successor) as adjusted monthly, plus four percent (4%) per annum on the overdue payment from the date the payment is due until final payment is made.

&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. In the event (a) the leasehold created hereby shall be taken in execution or by other process of law, (b) Lessee shall (i) file a petition in bankruptcy or have such a petition filed against it, which petition is not dismissed within thirty (30) days, or (ii) be adjudicated insolvent or bankrupt pursuant to the provisions of any state or federal insolvency or bankruptcy law, (c) a receiver or trustee of the property of Lessee shall be appointed by reason of Lessee's insolvency or inability to pay its debts, or (d) any assignment shall be made of Lessee's property for the benefit of its creditors, then and in any of such events, Lessor may terminate this Lease by written notice to Lessee and Lessor shall be entitled to recover damages in an amount equal to the then-present value of the basic rent reserved under Section 4 of this Lease for the remainder of the stated term hereof.

**Lease - Page 10**

&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;d. If, more than twice in any calendar year, Lessee defaults in the payment of Rent and such default continues for ten (10) days after Lessor's notice thereof to Lessee, or if Lessee defaults in the prompt and full performance of any other provision of this Lease, Lessor may, if Lessor so elects, but not otherwise, forthwith terminate this Lease and Lessee's rights to possession of the Premises by written notice to Lessee and Lessor shall be entitled to recover damages in an amount equal to the then-present value of the basic rent reserved under Section 4 of this Lease for the remainder of the stated term hereof.

&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;e. Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Lessee's rights to possession without termination of the Lease, Lessee shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Lessor, and Lessee hereby grants to Lessor full and free license to enter into and upon the Premises in such event in accordance with applicable laws (including applicable court rules) and to repossess the Premises as of Lessor's former estate and to expel or remove Lessee and any others who may be occupying or within the Premises and to remove any and all property therefrom, in accordance with applicable laws (including court rules), without being deemed guilty of trespass, eviction or forcible entry or detainer, and without relinquishing Lessor's rights to rental or any other right given to Lessor hereunder or by operation of law.

&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;f. If Lessee abandons the Premises or is otherwise in default of its obligations beyond the expiration of any applicable notice and cure period hereunder, Lessor may elect to terminate Lessee's right to possession only, without terminating the Lease, and upon such termination of the Lessee's right of possession, Lessor may at Lessor's option enter into the Premises, remove Lessee's property (not including retail merchandise) and other evidences of tenancy, without such entry and possession terminating the Lease or releasing Lessee, in whole or in part, from Lessee's obligation to pay the rent hereunder for the full term, and in any such case, Lessee shall pay forthwith the Lessor a sum equal to the entire amount of the rent reserved under Section 4 of this Lease for the remainder of the stated term plus any other sums then due hereunder. Upon and after entry into possession without termination of this Lease, Lessor may, but need not, relet the Premises or any part thereof for the account of Lessee to any person, firm, or corporation other than Lessee for such rent for such time and upon such terms as Lessor in Lessor's sole discretion shall determine. Lessor shall not be required to accept any tenant offered by Lessee or to observe any instruction given by Lessee about such reletting. In any case, Lessor may make repairs, alterations and additions in or to the Premises, and redecorate the same to the extent deemed by Lessor necessary or desirable, and Lessee shall, upon demand, pay the cost thereof, together with Lessor's expenses of the reletting. If the consideration collected by Lessor upon any such reletting for Lessee's account is not sufficient to pay monthly the full amount of the rent reserved in this Lease, together with the costs of repairs, alterations, additions, redecorating and Lessor's expenses, Lessee shall pay to Lessor the amount of each monthly deficiency upon demand; and if the consideration so collected from any such reletting is more than sufficient to pay the full amount of the rent reserved herein, together with the costs and expenses of Lessor, Lessor at the end of the stated term of the Lease, shall account for the surplus to Lessee.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. In the event any lien upon Lessor's title results from any act or neglect of Lessee, and Lessee fails to remove said lien within ten (10) days after Lessor's notice to do so, Lessor may remove the lien by paying the full amount thereof or otherwise and without any investigation or contest of the validity thereof, and Lessee shall pay Lessor upon request the amount paid out by Lessor in such behalf, including Lessor's costs, expenses and counsel fees.

&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;h. In addition to the remedies enumerated herein, Lessor shall have the right to pursue any right or remedy to which Lessor is entitled, under applicable law, for any breach of this Lease.

&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;i. Any and all costs or expenses incurred by Lessor including, without limitation, attorneys' fees, in enforcing any of its rights or remedies under this Lease shall be deemed to be additional rent and shall be repaid to Lessor by Lessee upon demand.

&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;j. Notwithstanding anything to the contrary herein, in any termination by Lessor of this Lease or of Lessee's right of possession of the Premises, Lessor must pursue other opportunities to lease the Premises and act in a commercially reasonable manner in an effort to mitigate its damages and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>NON-WAIVER OF DEFAULT</u>. Waiver of any breach of the terms, conditions, or covenants of this lease or the nonperformance of the same for any particular time shall not be construed as a waiver of any succeeding breach of the same or another term, condition, or covenant hereof, and the consent, approval, or acquiescence by Lessor or Lessee to any breach shall not waive or render unnecessary such consent or approval to or of any subsequent similar breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>HOLDING OVER</u>. If Lessee holds over after termination of this lease, the tenancy thereafter shall be from month to month, subject to all terms, conditions and covenants of this lease unless otherwise agreed by the parties hereto, and Lessee shall pay rent therefor in an amount equal to 150% of the rate payable at the termination of this Lease unless otherwise agreed in writing by Lessor. Lessor's acceptance of any rent after holding over begins does not renew this Lease. This provision does not waive Lessor's rights of re-entry or any other right hereunder, or any right as made or provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>RECORDING OF LEASE</u>. Lessee shall not record this lease without written consent of Lessor, however, upon the request of either party hereto, the other party shall join in the execution of a memorandum or so called "short form" of this lease for the purpose of recordation in such form as required for recordation. Lessor, on its own behalf and on behalf of any succeeding Lessor, expressly and affirmatively waives any statutory right under North Carolina law to terminate this Lease upon the sale or other conveyance of the Premises due the length of the initial Term of this Lease and lack of a memorandum of lease being recorded in the applicable county records. The waiver contained in this Section 28 shall be binding on Lessor, its successors and assigns, and any purchaser of the Premises.

**Lease - Page 12**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>ENTIRE AGREEMENT</u>. This lease shall constitute the entire agreement of the parties hereto and any prior agreement between the parties relating to the Premises, whether written or oral, is merged herein and shall be of no separate force and effect and this lease shall only be changed, modified or discharged by agreement in writing signed by both parties 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;30. <u>EXERCISE OF RIGHTS AND NOTICE</u>. The exercise of any right or privilege or the giving of any notice by a party hereunder shall be effective upon actual receipt by any method or by mailing by registered or certified United States mail, return receipt requested, postage prepaid and properly addressed as follows:

&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.** **If to Lessor:** 

Grand Ventures, LLC

108 Brownlea Drive, Suite A

Greenville, NC 27858-1643

or at such other address as Lessor may designate by written notice; an

&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.** **If to Lessee:** 

Modern Mining Technology Corp.

5905 Triangle Drive

Raleigh, NC 27617

or to the Premises after Lessee has taken occupancy or at such other address as Lessee may designate by written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. <u>APPLICABLE LAW</u>. This lease shall be governed by, and construed in accordance with the laws of the state where the Premises is located. If any provision of this lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this lease shall not be affected thereby and each provision of the lease shall be valid and enforceable to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. <u>BENEFIT OF AGREEMENT</u>. The terms, conditions and covenants contained in this lease shall inure to the benefit of and be binding upon the parties hereto, their respective heirs, administrators, executors, representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. <u>SUBORDINATION TO MORTGAGE</u>. This Lease is subject and subordinate at all times to the lien of any mortgage which may now or hereafter affect the Premises and to all renewals, modifications, amendments, consolidations, replacements, and extensions thereof. Lessee shall execute and deliver any instrument which may be reasonably required by the Lessor in confirmation of such subordination promptly upon the Lessor's request. The Lessor, however, shall exercise its best efforts to arrange with the holder of any such underlying lease or mortgage for an agreement that if, by foreclosure or otherwise, such holder, or any successor in interest, shall come into possession of the leased property, or shall become the owner of the leased property, or shall take over the rights of the Lessor in the leased property, it will not disturb the possession, use, or enjoyment of the leased property by the Lessee, its successors or assigns, nor disaffirm this Lease or the Lessee's rights or estate hereunder, so long as all of the obligations of the Lessee are fully performed in accordance with the terms of this Lease.

**Lease - Page 13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. <u>ESTOPPEL CERTIFICATE</u>. Lessee agrees within ten (10) days after request therefor by Lessor to execute in recordable form and deliver to Lessor a written certificate, certifying (a) that this Lease is in full force and effect, (b) the date of commencement of the term of this Lease and the amount of rental payable under the Lease, (c) that rent is paid currently without any off-set, reduction, claim or defense thereto, (d) the amount of rent, if any, paid in advance, (e) that there are no actions, whether voluntary or involuntary, pending against the Lessee under the bankruptcy laws of the United States or any similar state law, and (f) that there are no uncured defaults by Lessor or stating those claimed by Lessee, provided that in the case of the foregoing in clauses (a) through (f), in fact, such facts are accurate and ascertainable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. <u>CAPTIONS</u>. The captions contained in this agreement are for convenience of reference only, and they shall not be interpreted to affect the meaning of this agreement in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. <u>SEPARATE COUNTERPARTS</u>. This agreement may be executed in separate counterparts which shall collectively and separately be considered one and the same 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;37. <u>LIMITED TERMINATION RIGHT</u>: At anytime during the Lease term, Lessee shall have the right to terminate this Lease upon twelve (12) months' prior written notice to Lessor (the "Termination Notice"). Lessee shall continue to pay monthly rent at the applicable monthly rate during such twelve (12) month notice period. After receipt of the Termination Notice, Lessor may terminate Lessee's continued occupancy of the Premises upon one hundred twenty (120) days' written notice to Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. <u>FINANCIAL STATEMENTS</u>. Upon Lessor's written request but in no event more than once per calendar year, Lessee shall promptly furnish to Lessor financial statements describing Lessee's then current financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. <u>FIRST OPTION TO LEASE ADDITIONAL SPACE.</u> During the Lease term, Lessor reserves the right to construct an addition on the Building in the grassy area lying south of the Premises (the "Additional Space"). In the event that Lessor constructs the Additional Space, Lessor shall notify Lessee in writing of such fact, and Lessee shall have thirty (30) days from receipt of written notice from Lessor (the "Notice Period") to notify Lessor that it agrees to lease the Additional Space. If Lessee agrees to lease the Additional Space, then the lease for the Additional Space shall be on the same terms and conditions as the existing lease. The failure of Lessee to notify Lessor in writing of its agreement to lease the Additional Space before the end of the Notice Period shall constitute an election not to lease the Additional Space. In such event, Lessee shall execute a waiver of its first option to lease the Additional Space in a form acceptable to Lessor within ten (10) days after receipt of a written request from Lessor, and Lessor and Lessee will enter into an amendment to this Lease which equitably apportions the parking spaces, insurance premiums, property tax expense, maintenance obligations and utility expenses between the Premises and the new space constructed by Lessor.

**Lease - Page 14**

IN WITNESS WHEREOF, Lessor and Lessee have duly executed this lease as of the day and year first above written.

---

| | |
|:---|:---|
| LESSOR: | LESSOR: |
| **Grand Ventures, LLC** | **Grand Ventures, LLC** |
| By: | /s/ George S. Saad, Jr., |
|  | George S. Saad, Jr., Manager |
| LESSEE:  | LESSEE:  |
| **Modern Mining Technology Corp.** | **Modern Mining Technology Corp.** |
| By: | /s/ Jeet Basi |
|  | Jeet Basi, CEO |

---

**Lease - Page 15**

**EXHIBIT A**

**<u>Legal Description</u>**

All that certain lot or parcel of land more particularly described as follows:

Lying and being in the City of Greenville, Winterville Township, Pitt County, North Carolina and the POINT OF BEGINNING is the intersection of the southern right-of-way line of Old Firetower Road (NCSR 2235) and the eastern right-of-way line of the County Home Road (NCSR 1725) and running from said POINT OF BEGINNING along the southern right-of-way line of Old Firetower Road N 82-53-04 East 106.66 feet to a point, thence N 81-45-29 East 77.00 feet to a point in the southern right-of-way line of Old Firetower Road, a corner; thence S 05-33- 14 East 300.35 feet to an iron pipe, a corner; thence S 84-09-14 West 164.22 feet to a point in the eastern right-of-way line of County Home Road, a corner; thence N 05-50-46 West 203.54 feet to a point in the eastern right-of-way line of County Home Road, thence N 16-23-56 West 92.95 feet to the POINT OF BEGINNING and being Lot 1 Rosemont Square as shown on that map entitled "Easement Map for Lanco, Inc." prepared by Baldwin & Associates dated April 7, 1998, a copy of which is attached to the deed from Cherry Construction Company, Inc. to Burton Lumber Corporation recorded in Book 813, Page 623 of the Pitt County Registry.