Document:

Exhibit 4.9

 

Gold Royalties Corporation

 

Consolidated Financial Statements

For the year ended December 31, 2014 and December 31, 2013

(expressed in Canadian dollars)

(Audited)

  

     

     

    

 

 

 

INDEPENDENT AUDITORS' REPORT

 

To the Shareholders of

Gold Royalties Corporation

 

We have audited the accompanying consolidated
financial statements of Gold Royalties Corporation, which comprise the consolidated statements of financial position as at December
31, 2014 and 2013, and the consolidated statements of loss and comprehensive loss, changes in shareholders’ equity and cash
flows for the years then ended, and a summary of significant accounting policies and other explanatory information.

 

Management’s Responsibility
for the Consolidated Financial Statements

 

Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards,
and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.

 

Auditors’ Responsibility 

 

Our responsibility is to express an opinion
on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted
auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free from material misstatement.

 

An audit involves performing procedures
to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.

 

We believe that the audit evidence we have
obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

 

Opinion

 

In our opinion, these consolidated financial
statements present fairly, in all material respects, the financial position of Gold Royalties Corporation as at December 31, 2014
and 2013 and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting
Standards.

 

 

 

     

     

    

 

Emphasis of Matter

 

Without qualifying our opinion, we draw
attention to Note 1 in the consolidated financial statements which describes conditions and matters that indicate the existence
of a material uncertainty that may cast significant doubt about Gold Royalties Corporation’s ability to continue as a going
concern.

 

“DAVIDSON & COMPANY LLP”

 

	Vancouver, Canada 	Chartered Accountants
	 	 
	April 24, 2015	 

 

 

     

     

    

 

	Gold Royalties Corporation
	Consolidated Statement of Financial Position
	As at December 31, 2014 and December 31, 2013
	(Audited)

 

	 	 	December 31, 2014
 $	 	 	December 31, 2013
 $	 
	Assets	 	 	 	 	 	 	 	 
	Current assets	 	 	 	 	 	 	 	 
	Cash	 	 	634,801	 	 	 	589,847	 
	Accounts receivable	 	 	73,393	 	 	 	70,797	 
	Prepaid expenses and deposits	 	 	1,865	 	 	 	1,865	 
	Assets held for sale (note 6)	 	 	8,349,608	 	 	 	-	 
	Total current assets	 	 	9,059,667	 	 	 	662,509	 
	 	 	 	 	 	 	 	 	 
	Non-current assets	 	 	 	 	 	 	 	 
	Royalty interests (note 7)	 	 	1,657,194	 	 	 	15,085,022	 
	Total assets	 	 	10,716,861	 	 	 	15,747,531	 
	 	 	 	 	 	 	 	 	 
	Liabilities	 	 	 	 	 	 	 	 
	Current liabilities	 	 	 	 	 	 	 	 
	Accounts payable and accrued liabilities	 	 	66,130	 	 	 	104,103	 
	Total current liabilities	 	 	66,130	 	 	 	104,103	 
	 	 	 	 	 	 	 	 	 
	Non-current liabilities	 	 	 	 	 	 	 	 
	Convertible debenture (note 8)	 	 	6,490,411	 	 	 	5,602,302	 
	Total liabilities	 	 	6,556,541	 	 	 	5,706,405	 
	 	 	 	 	 	 	 	 	 
	Shareholders’ Equity	 	 	 	 	 	 	 	 
	Share capital (note 9(b))	 	 	12,085,980	 	 	 	11,832,793	 
	Contributed surplus (note 9(e))	 	 	1,849,354	 	 	 	616,263	 
	Warrants (note 9 (f))	 	 	607,447	 	 	 	1,622,854	 
	Other equity (note 8)	 	 	713,991	 	 	 	713,991	 
	Deficit	 	 	(11,096,452	)	 	 	(4,744,775	)
	Total equity	 	 	4,160,320	 	 	 	10,041,126	 
	 	 	 	 	 	 	 	 	 
	Total liabilities and equity	 	 	10,716,861	 	 	 	15,747,531	 
	 	 	 	 	 	 	 	 	 
	Going concern (note 2)	 	 	 	 	 	 	 	 
	Subsequent events (note 6, 8, 9, and 14)	 	 	 	 	 	 	 	 

 

	Approved on behalf of the Board of Directors
	 	 	 
	“Brian Hearst”	 	 
	Director 	 	 
	 	 	 
	“Steve King”	 	 
	Director	 	 

 

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

 

    	 	 	4

     

    

 

	Gold Royalties Corporation
	Consolidated Statement of Loss and Comprehensive Loss
	For the years ended December 31, 2014 and 2013
	(Audited)

 

	 	 	December 31, 2014
 $	 	 	December 31, 2013
 $	 
	Royalty revenue	 	 	331,764	 	 	 	254,091	 
	 	 	 	 	 	 	 	 	 
	Expenses	 	 	 	 	 	 	 	 
	Salary and benefits	 	 	330,790	 	 	 	358,468	 
	Share based expense (note 9 (d))	 	 	144,903	 	 	 	232,887	 
	Professional fees	 	 	93,172	 	 	 	199,941	 
	Office and general	 	 	76,352	 	 	 	163,548	 
	Depletion expense (note 7)	 	 	176,234	 	 	 	132,195	 
	Impairment of GST receivable	 	 	-	 	 	 	46,509	 
	Rent	 	 	18,569	 	 	 	20,013	 
	 	 	 	840,020	 	 	 	1,153,561	 
	 	 	 	 	 	 	 	 	 
	Net operating loss	 	 	(508,256	)	 	 	(899,470	)
	 	 	 	 	 	 	 	 	 
	Financing expenses	 	 	 	 	 	 	 	 
	Accretion of convertible debenture (note 8)	 	 	237,996	 	 	 	237,996	 
	Interest on convertible debenture (note 8)	 	 	650,113	 	 	 	588,969	 
	Net financing expenses	 	 	(888,109	)	 	 	(826,965	)
	 	 	 	 	 	 	 	 	 
	Other expenses	 	 	 	 	 	 	 	 
	Royalty interest impairment (note 7)	 	 	4,955,312	 	 	 	414,684	 
	Loss on disposal of royalty interest (note 7)	 	 	-	 	 	 	228,514	 
	 	 	 	(4,955,312	)	 	 	643,198	 
	 	 	 	 	 	 	 	 	 
	Loss and comprehensive loss	 	 	(6,351,677	)	 	 	(2,369,633	)
	 	 	 	 	 	 	 	 	 
	Basic and diluted loss per share	 	 	(0.25	)	 	 	(0.11	)
	Weighted average number of common shares outstanding during the year	 	 	25,468,227	 	 	 	21,246,976	 

 

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

 

    	 	 	5

     

    

 

	Gold Royalties Corporation
	Consolidated Statement of Changes in Shareholders’ Equity
	For the years ended December 31, 2014 and 2013
	(Audited)

 

	 	 	Share capital

    $	 	 	Contributed surplus

    $	 	 	Warrants
 $	 	 	Other Equity

    $	 	 	Deficit
 $	 	 	Total equity

    $	 
	Balance, December 31, 2012	 	 	10,150,106	 	 	 	367,424	 	 	 	1,268,288	 	 	 	713,991	 	 	 	(2,375,142	)	 	 	10,124,667	 
	Private placements, less issue costs	 	 	364,838	 	 	 	-	 	 	 	362,517	 	 	 	-	 	 	 	-	 	 	 	727,355	 
	Broker units issued pursuant
    to private placement	 	 	(8,001	)	 	 	15,952	 	 	 	(7,951	)	 	 	-	 	 	 	-	 	 	 	-	 
	Common shares issued in
    asset acquisition	 	 	1,315,000	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,315,000	 
	Loss for the year	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(2,369,633	)	 	 	(2,369,633	)
	Share based expense	 	 	-	 	 	 	232,887	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	232,887	 
	Shares issued on exercise
    of broker warrants	 	 	10,850	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	10,850	 
	Balance, December 31, 2013	 	 	11,832,793	 	 	 	616,263	 	 	 	1,622,854	 	 	 	713,991	 	 	 	(4,744,775	)	 	 	10,041,126	 
	Shares issued to acquire
    royalty interest	 	 	85,526	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	85,526	 
	Shares issued pursuant
    to private placement, net of share issue costs	 	 	167,661	 	 	 	-	 	 	 	72,781	 	 	 	-	 	 	 	-	 	 	 	240,442	 
	Loss for the year	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(6,351,677	)	 	 	(6,351,677	)
	Reclassification of
    warrant fair value upon expiry	 	 	-	 	 	 	1,088,188	 	 	 	(1,088,188	)	 	 	-	 	 	 	-	 	 	 	-	 
	Share-based payment expense	 	 	-	 	 	 	144,903	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	144,903	 
	Balance, December 31, 2014	 	 	12,085,980	 	 	 	1,849,354	 	 	 	607,447	 	 	 	713,991	 	 	 	(11,096,452	)	 	 	4,160,320	 

 

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

 

    	 	 	6

     

    

 

	Gold Royalties Corporation
	Consolidated Statement of Cash Flows
	For the years ended December 31, 2014 and 2013
	(Audited)

 

	 	 	December 31, 2014
 $	 	 	December 31, 2013
 $	 
	Cash (used in) provided by:	 	 	 	 	 	 	 	 
	Operating activities	 	 	 	 	 	 	 	 
	Loss for the year	 	 	(6,351,677	)	 	 	(2,369,633	)
	Adjustments for:	 	 	 	 	 	 	 	 
	Share based payments	 	 	144,903	 	 	 	232,887	 
	Accretion of convertible debenture	 	 	237,996	 	 	 	237,996	 
	Depletion expense	 	 	176,234	 	 	 	132,195	 
	Loss on disposal of royalty interest	 	 	-	 	 	 	228,514	 
	Impairment of GST receivable	 	 	-	 	 	 	46,509	 
	Accrued interest on convertible debt	 	 	650,113	 	 	 	-	 
	Royalty interest impairment	 	 	4,955,312	 	 	 	414,684	 
	 	 	 	(187,119	)	 	 	(1,076,848	)
	 	 	 	 	 	 	 	 	 
	Change in accounts receivable	 	 	(2,596	)	 	 	20,299	 
	Change in prepaid expenses and deposits	 	 	-	 	 	 	(237	)
	Change in accounts payable and accrued liabilities	 	 	(37,973	)	 	 	59	 
	 	 	 	(227,688	)	 	 	(1,056,727	)
	 	 	 	 	 	 	 	 	 
	Investing activities	 	 	 	 	 	 	 	 
	Acquisition of royalty interests	 	 	(2,800	)	 	 	(1,238,703	)
	Disposal of royalty interests	 	 	-	 	 	 	500,000	 
	Royalty advance payments	 	 	35,000	 	 	 	35,000	 
	 	 	 	32,200	 	 	 	(703,703	)
	 	 	 	 	 	 	 	 	 
	Financing activities	 	 	 	 	 	 	 	 
	Proceeds from issuance of common shares and common share purchase warrants, net of issue costs	 	 	240,442	 	 	 	727,355	 
	Exercise of broker warrants	 	 	-	 	 	 	10,850	 
	Accrued interest on convertible debt	 	 	-	 	 	 	588,969	 
	 	 	 	240,442	 	 	 	1,327,174	 
	 	 	 	 	 	 	 	 	 
	Change in cash	 	 	44,954	 	 	 	(433,256	)
	Cash, beginning of year	 	 	589,847	 	 	 	1,023,103	 
	Cash, end of year	 	 	634,801	 	 	 	589,847	 

 

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

 

    	 	 	7

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

		1	Reporting entity 

 

Gold Royalties Corporation (the
“Company”), is incorporated under the Alberta Business Corporations Act. The Company’s operations focus primarily
on precious metals mining royalties, particularly gold net smelter returns and gold metal stream royalties. The Company’s
head office is located at Suite 200, 638 11th Avenue SW, Calgary, Alberta, T2R 0E2.

 

		2	Going concern

 

These consolidated financial
statements have been prepared on a going concern basis which assumes that the Company will realize the carrying value of its assets
and discharge its liabilities in the normal course of business. Currently, the Company holds twenty royalty interests on properties
within Canada, the majority of which have yet to start production. As a royalty company, there are limited requirements for capital
expenditures.

 

During the year ended December
31, 2014, the Company incurred a loss totaling $6,351,677 (2013 – 2,369,633) and used funds in operations totaling $187,119
(2013 – 1,076,848). The ability of the Company to continue as a going concern including meeting its obligations, funding
future operations and recovering the carrying value of the royalty interests is dependent upon the successful extraction of minerals
and receipt of royalty revenue in relation to its royalty interests. There can be no assurance that the extraction of minerals
will be successful or that sufficient royalty revenues will be earned to meet the Company’s ongoing cash outflows, and these
material uncertainties may cast significant doubt over the Company’s ability to continue as a going concern. If unsuccessful,
the Company may be required to curtail operations unless additional financing arrangements are completed or support from shareholders
is received. The outcome of these matters cannot be determined at this time.

 

Subsequent to December 31, 2014,
the Company closed a transaction to dispose of a significant royalty interest. A portion of the proceeds were used to extinguish
the convertible debenture.

 

These consolidated 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 therefore, 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 the accompanying consolidated financial statements.

 

    	 	 	8

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

		3	Basis of presentation

 

The annual consolidated financial
statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting
Interpretation Committee (“IFRIC”).

 

The policies applied in these
annual financial statements are based on IFRS issued as of April 24, 2015, the date the Board of Directors approved the statements.

 

		4	Significant accounting policies

 

The accounting policies set out
below have been applied consistently to all periods presented in these financial statements.

 

Basis of measurement and currency

 

The financial statements have
been prepared on a historical cost basis except for share based payment transactions and financial assets or liabilities classified
or designated as held for trading, available-for-sale financial assets or derivative financial instruments, which are measured
at fair value.

 

These financial statements are
presented in Canadian dollars, which is the Company’s functional currency.

 

Significant
accounting judgments, estimates and assumptions

 

The preparation of financial
statements in conformity with IFRS requires the Company to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions
are reviewed on an ongoing basis and are based on management’s best knowledge of the relevant facts and circumstances, having
regard to previous experience. However, actual outcomes may differ from these estimates. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.

 

    	 	 	9

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

In particular, significant areas
of judgments, estimates and assumptions considered by management include:

 

		(a)	Mineral reserves:

 

Amounts recorded for depreciation,
depletion and amortization and amounts used for impairment calculations are based on estimates of mineral reserves by the operators
of the mineral properties where the Company has a royalty interest. By their nature, the estimates of reserves, including the estimates
of future prices, costs, discount rates and the related future cash flows are subject to measurement uncertainty.

 

			Assessment of the impairment of royalty interests requires the use of judgments, assumptions and
estimates when assessing whether there are any indicators that could give rise to the requirement to conduct a formal impairment
test on the Company’s royalty interests. The assessment of fair values requires the use of estimates and assumptions for
recoverable production, long-term commodity prices, discount rates, reserve/resource conversion, net asset value multiples and
the associated production implications. Changes in any of the assumptions and estimates used in determining the fair value of the
royalty interests could impact the impairment analysis.

 

		(b)	Share-based compensation:

 

Compensation costs accrued for
share-based compensation plans are subject to the estimation of what the ultimate payout will be using pricing models such as the
Black-Scholes model which is based on significant assumptions such as the future volatility of the market price of the Company’s
shares and the expected term of the issued stock option.

 

    	 	 	10

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Financial instruments

 

Financial assets and liabilities
are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized
when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially
all risk and rewards of ownership. Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when there is a legally enforceable right to offset the recognized amount and there is an intention to settle
on a net basis, or realize the asset and settle the liability simultaneously.

 

Non-derivative financial instruments

 

Non-derivative financial instruments
include cash, accounts receivable, accounts payable and accrued liabilities, and the convertible debenture. Non-derivative financial
instruments are recognized initially at fair value. Subsequent to the initial recognition, non-derivative financial instruments
are designated into one of the following categories and measured as described below. Interest, dividends, losses and gains relating
to financial assets and liabilities are recognized in net income, other comprehensive income and within the statement of cash flows.

 

		(i)	Financial assets and liabilities at fair value through profit or loss: A financial asset or liability
is classified in this category if acquired principally for the purpose of selling or repurchasing in the short-term. The Company
has classified cash as financial assets and liabilities at fair value through profit or loss.

 

		(ii)	Held to maturity investments (“HTM”): HTM investments are measured at amortized cost
using the effective interest method, less any impairment losses.

 

As at December 31, 2014 and 2013,
the Company does not have any held to maturity investments.

 

		(iii)	Available for sale investments (“AFS”): AFS investments are non-derivatives that are
either designated in this category or not classified in any of the other categories.

 

AFS investments are recognized
initially at fair value plus transaction costs and are subsequently carried at fair value. Gains or losses arising from changes
in fair value are recognized in other comprehensive income/(loss). AFS investments are classified as non-current, unless the investment
matures within twelve months, or management expects to dispose of them within twelve months.

 

Interest on AFS investments, calculated
using the effective interest method, is recognized in the statement of loss and comprehensive loss as part of finance income. Dividends
on AFS equity instruments are recognized in the statement of loss and comprehensive loss as part of other income and expenses when
the Company’s right to receive payment is established. When an AFS investment is sold or impaired, the accumulated gains
or losses are moved from accumulated other comprehensive income to the statement of loss and comprehensive loss and included in
other income and expenses.

 

    	 	 	11

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

As at December 31, 2014 and 2013,
the Company does not have any AFS investments.

 

		(iv)	Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. The Company’s loans and receivables are comprised of accounts
receivable which are included in current assets due to their short-term nature. Loans and receivables are initially recognized
at the amount expected to be received less, when material, a discount to reduce the loans and receivables to fair value. Subsequently,
loans and receivables are measured at amortized cost using the effective interest method less a provision for impairment.

 

		(v)	Financial liabilities at amortized cost: Financial liabilities at amortized cost include accounts
payable and accrued liabilities and the convertible debenture. Accounts payable and accrued liabilities are initially recognized
at the amount required to be paid less, when material, a discount to reduce the payables to fair value.

 

Financial liabilities are classified
as current liabilities if payment is due within twelve months or if the liability is expected to be settled within twelve months.
Otherwise, they are presented as non-current liabilities.

 

Share
capital

 

Common shares are classified
as equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction
from equity, net of any tax effects.

 

Royalty
interest

 

Royalty interests are capitalized
at cost. All direct costs related to the acquisition of royalty interests are capitalized until the royalty interest is ready for
its intended use, sold or determined to be impaired. Acquisition costs of development and exploration stage royalty interests are
not depleted until such time as royalty-generating production begins. The royalty interest are depleted on a unit-of-production
basis where the denominator is the estimated proven and probable reserves, which is estimated using available estimates of proven
and probable reserves specifically associated with the mineral properties. Management relies on public disclosure for information
on proven and probable reserves from the third-party of the producing mineral interests. The Company may receive advanced minimum
payments prior to the commencement of production on some of its royalty interests. In these circumstances, the Company would record
depletion expense on a units-of-production method, as described above, up to a maximum of the total of the advanced minimum payment
received.

 

    	 	 	12

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Impairment

 

Financial assets

 

A financial asset is assessed
at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered
to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash
flows of that asset. Objective evidence that financial assets are impaired can include: significant financial difficulty of the
issuer or counterparty; the potential loss is significant; a prolonged decline in value (defined as a decline in value lasting
longer than one year); default or delinquency of payments; or it is probable that the borrower will enter bankruptcy or financial
re-organization.

 

		(i)	Financial assets carried at amortized cost: An impairment loss in respect of a financial asset
measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future
cash flows discounted at the original effective interest rate. The carrying amount of the asset is reduced by this amount and losses
are recognized in profit or loss and through the use of an allowance account.

 

		(ii)	Available for sale financial assets: The impairment loss is the difference between the original
cost of the asset and its fair value at the measurement date, less any impairment losses previously recognized in profit or loss.
This amount represents the cumulative loss in accumulated other comprehensive income that is reclassified to the statement of loss
and comprehensive loss.

 

Impairment losses on financial
assets carried at amortized cost are reversed in subsequent periods if the reversal can be related objectively to an event occurring
after the impairment loss was recognized. The reversal is recognized in profit or loss or credited against the allowance account.
Impairment losses on available for sale equity instruments are not reversed.

 

    	 	 	13

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Non-financial assets

 

The carrying amounts of the Company’s
non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated.

 

Royalty interests are reviewed
for impairment if there is any indication that the carrying amount may not be recoverable. Impairment is assessed at the level
of cash-generating units ("CGUs") which are identified as the smallest identifiable group of assets that generate cash
inflows, which are largely independent of the cash inflows from other assets. This is usually at the individual royalty interest
level for each property from which cash inflows are generated.

 

An impairment loss is recognized
for the amount by which the asset's carrying value exceeds its recoverable amount, which is the higher of fair value less costs
to sell and value-in-use. The future cash flow expected is derived using estimates of proven and probable reserves and information
regarding the mineral properties that could affect the future recoverability of the Company's interests. Discount factors are determined
individually for each asset and reflect their respective risk profiles. Any impairment loss is charged to the statement of loss
and comprehensive loss. The royalty interest is subsequently reassessed for indications that an impairment loss previously recognized
may no longer exist and an impairment charge is reversed if the royalty interest's recoverable amount exceeds its carrying amount.

 

Revenue
recognition

 

Revenue from royalty interests
is measured at the fair value of the consideration received or receivable when management can reliably estimate the receivable,
pursuant to the terms of the royalty agreements, and collection is reasonably assured. In some instances, the Company will not
have access to sufficient information to make a reasonable estimate of revenue and, accordingly, revenue recognition is deferred
until management can make a reasonable estimate. Differences between estimates of royalty revenue and actual amounts are adjusted
and recorded in the period that the actual amounts are known.

 

			Share based expense

 

The Company issues stock options
to directors, officers and consultants. The fair value of options granted to employees is measured at grant date, using the Black-Scholes
option pricing model, and is recognized over the vesting period, using a graded vesting model. The fair value is recognized as
an expense within operations with a corresponding increase in contributed surplus. A forfeiture rate is estimated on the grant
date and is adjusted to reflect the actual number of options that vest.

 

    	 	 	14

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

The fair value of the warrants
issued as part of the private placements is measured at the closing date of the private placement, using the Black-Scholes option
pricing model. The fair value is recognized as a deduction against share capital with a corresponding increase in contributed surplus.

 

If and when
the stock options and/or warrants are ultimately exercised, the applicable amounts of contributed surplus are transferred to share
capital.

 

Earnings per share

 

Basic earnings per share is calculated
by dividing the profit or loss attributable to common shareholders of the Company by the weighted average number of common shares
outstanding during the period. Diluted earnings per share is determined by adjusting the profit or loss attributable to common
shareholders and the weighted average number of common shares outstanding for the effects of dilutive instruments such as options
granted to employees.

 

Finance income and expenses

 

Finance expense comprises interest
expense on borrowings and accretion of the discount on provisions.

 

Interest income is recognized
as it accrues in profit or loss, using the effective interest rate method.

 

			Provisions

 

A provision is recognized if,
as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability.

 

Assets held for sale

 

Assets are classified as held
for sale if the carrying amount will be recovered principally through a sale transaction rather than through continued use. The
sale of these assets must be considered highly probable. A sale is considered highly probable if the assets are available for immediate
sale, and management has stated their intention to sell the properties within one year. Assets classified as held for sale are measured at the lower of the carrying value and the fair value less costs to sell,
and are no longer depreciated.

 

    	 	 	15

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Income taxes

 

Income tax expense comprises
current and deferred tax. Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized
directly in equity, in which case it is recognized in equity.

 

Current tax is the expected tax
payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment
to tax payable in respect of previous years.

 

Deferred tax is recognized by
providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and
the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a
transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising
on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred
tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes levied
by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities
and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

 

A deferred tax asset is recognized
to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realized.

 

Deferred income taxes are presented
as non-current.

 

		5	Recent accounting pronouncements

 

The following pronouncements
and amendments became effective for annual periods beginning on or after January 1, 2014.  Adopting these standards has had
minimal or no impact on the Company’s financial statements.

 

IAS 32 – “Financial
Instruments: Presentation”, the amendments clarify that the right to offset financial assets and liabilities must be available
on the current date and cannot be contingent on a future event. The adoption of IAS 32 did not impact the Consolidated Financial
Statements.

 

    	 	 	16

     

    

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

IAS 36 – “Impairment
of Assets” which reduces the circumstances in which the recoverable amount of CGUs is required to be disclosed and clarify
the disclosures required when an impairment loss has been recognized or revered in the period. The adoption of IAS 36 did not impact
the consolidated financial statements.

 

IFRIC 21 – “Levies”
which clarifies that an entity recognizes a liability for a levy when the activity that triggers payment, as identified by the
relevant legislation, occurs. The interpretation also clarifies that no liability should be recognized before the specified minimum
threshold to trigger that levy is reached. The adoption of this interpretation did not have an impact on the Company’s consolidated
financial statements.

 

The Company has reviewed the
new and revised accounting pronouncements that have been issued but are not yet effective and determined that the following may
have an impact on the Company. The Company has not quantified the effect of the following:

 

IFRS 15 – “Revenue
from contracts with customers”, replaces International Accounting Standard 11, “Construction Contracts” (“IAS
11”), IAS 18, “Revenue” (“IAS 18”), and several revenue-related interpretations. IFRS 15 establishes
a single revenue recognition framework that applies to contracts with customers. The standard requires an entity to recognize revenue
to reflect the transfer of goods and services for the amount it expects to receive, when control is transferred to the purchaser.
Disclosure requirements have also been expanded. This IFRS becomes effective for annual periods beginning on or after January 1,
2017 with earlier adoption permitted. The standard may be applied retrospectively or using a modified retrospective approach.
The Company is currently evaluating the impact of adopting IFRS 15 on the Consolidated Financial Statements.

 

IFRS 9 – “Financial
Instruments”, which is the result of the first phase of the IASB’s project to replace IAS 39 – “Financial
Instruments: Recognition and Measurement”. The new standard replaces the current multiple classification and measurement
models for financial assets and liabilities with a single model that has only two classification categories: amortized cost and
fair value. This IFRS becomes effective for periods beginning on or after January 1, 2018. The Company has not yet begun the process
of assessing the impact that the new standard will have on its financial statements

 

    	 	 	17

     

    

 

 

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

		6	Assets held for sale

 

On December 23, 2014, the Company
announced that it had entered into an agreement with an unrelated party to dispose of its Eagle and Lynx royalties (the “Royalties”),
and accordingly these Royalties were classified as held for sale at December 31, 2014. On January 14, 2015, the Company closed
the transaction selling the Royalties for gross proceeds of $7,000,000 USD ($8,349,608 CDN). The carrying value of the Royalties
exceeded the proceeds received and consequently an impairment of $674,312 was recorded in the statement of comprehensive loss as
at December 31, 2014.

 

		7	Royalty interests

 

For the years presented, the
Company had the following royalty interests:

 

	

Royalty
    Interest	 	December
    31, 2013
 Net book
    value
 $	 	 	Acquisition

    Purchase Price
 $	 	 	Acquisition

    Costs
 $	 	 	Royalty
    Advance
 Payments

    $	 	 	Depletion
    &
 Impairment

    $	 	 	Transfer
    to Assets
 Held
    for Sale
 $	 	 	December
    31, 2014
 Net
    book value
 $	 
	Bachelor Lake	 	 	596,319	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(176,234	)	 	 	-	 	 	 	420,085	 
	Blende	 	 	1,012,527	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,012,527	 
	KM61	 	 	55,323	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	55,323	 
	Seymour Lake	 	 	78,548	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	78,548	 
	Hart	 	 	1,492,368	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,492,368	 
	Eagle/Lynx (note 6)	 	 	9,058,929	 	 	 	-	 	 	 	-	 	 	 	(35,000	)	 	 	(674,312	)	 	 	(8,349,608	)	 	 	-	 
	Justin/Hit	 	 	516,240	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	516,240	 
	Barry Project	 	 	452,365	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	452,365	 
	Iron Horse Project	 	 	609,947	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	609,947	 
	Eastern Extension Gold Deposit	 	 	450,446	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	450,446	 
	Bradshaw Gold Deposit	 	 	762,009	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	762,009	 
	Barry/Windfall/Waconichi Royalties	 	 	-	 	 	 	85,526	 	 	 	2,800	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	88,326	 
	Royalty impairment	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(4,281,000	)	 	 	-	 	 	 	(4,281,000	)
	 	 	 	15,085,022	 	 	 	85,526	 	 	 	2,800	 	 	 	(35,000	)	 	 	(5,131,546	)	 	 	(8,349,608	)	 	 	1,657,194	 

 

	

Royalty
    Interest	 	December
    31, 2012
 Net book
    value
 $	 	 	Acquisition

    Purchase Price
 $	 	 	Acquisition

    Costs
 $	 	 	Royalty
    Advance
 Payments

    $	 	 	
Disposals

    $	 	 	Depletion
    &
 Impairment

    $	 	 	December
    31, 2013
 Net
    book value
 $	 
	Bachelor Lake	 	 	1,457,028	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(728,514	)	 	 	(132,195	)	 	 	596,319	 
	Blende	 	 	1,012,527	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,012,527	 
	Bermuda & Bermuda Project	 	 	135,748	 	 	 	275,000	 	 	 	3,936	 	 	 	-	 	 	 	-	 	 	 	(414,684	)	 	 	-	 
	KM61	 	 	55,323	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	55,323	 
	Seymour Lake	 	 	78,548	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	78,548	 
	Yellowjacket	 	 	568,224	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(568,224	)	 	 	-	 	 	 	-	 
	Hart	 	 	1,492,368	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,492,368	 
	Eagle/Lynx	 	 	9,093,929	 	 	 	-	 	 	 	-	 	 	 	(35,000	)	 	 	-	 	 	 	-	 	 	 	9,058,929	 
	Justin/Hit	 	 	516,240	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	516,240	 
	Barry Project	 	 	-	 	 	 	450,000	 	 	 	2,365	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	452,365	 
	Iron Horse Project	 	 	-	 	 	 	600,000	 	 	 	9,947	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	609,947	 
	Eastern Extension Gold Deposit	 	 	-	 	 	 	440,000	 	 	 	10,446	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	450,446	 
	Bradshaw Gold Deposit	 	 	-	 	 	 	750,000	 	 	 	12,009	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	762,009	 
	 	 	 	14,409,935	 	 	 	2,515,000	 	 	 	38,703	 	 	 	(35,000	)	 	 	(1,296,738	)	 	 	(546,879	)	 	 	15,085,022	 

 

    	 	 	18

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

On September 17, 2012, the Company
entered into a royalty acquisition partnership (the “Partnership”) with Franco-Nevada Corporation (“Franco-Nevada”),
an arms-length party. Under the terms of the Partnership, the Company has provided Franco-Nevada a participation right to acquire,
at the time of purchase, a 50% asset-level ownership position in any future royalty transaction which the Company has a signed
letter of intent or binding agreement to acquire. The Partnership applies to any new smelter return, net profits interest or metal
stream royalty acquisition where the total consideration paid for the royalty is up to $15,000,000. The terms of the Partnership
extend until September 17, 2014. The Partnership was not renewed and accordingly has expired as at December 31, 2014.

 

Impairment – royalty
interests

 

On February 18, 2015, the Company
entered into an arrangement agreement (the “Arrangement Agreement”) whereby all of the outstanding common shares of
the Company will be acquired by an unrelated party (the “Acquirer”) by way of a statutory plan of arrangement (the
“Arrangement”). Pursuant to the Arrangement, shareholders of the Company will receive common shares of the Acquirer
on the basis of 0.045 common shares of the Acquirer for each 1 common share of the Company. The net asset position of the Company
at December 31, 2014, adjusted for the subsequent sale of the Eagle and Lynx royalty (note 6) and the repayment of the convertible
debenture (note 8), was in excess of the fair value of the Company and accordingly an impairment of $4,281,000 was taken over the
royalty interests. In addition to the impairment of Eagle and Lynx royalty of $674,312 (note 6), the total impairment expense was
$4,955,312.

 

Barry/Windfall/Waconichi
Royalties

 

On May 1, 2014, the Company closed
a transaction (the “Acquisition”) to acquire a portfolio of net smelter return (“NSR”) interests (the “Assets”)
from an unrelated party. The Assets consist of five NSR interests on Quebec-based gold projects. As consideration for the Acquisition,
the Company issued 328,948 common shares at a value of $0.26 per common share, for total proceeds of $85,526.

 

The Barry Royalties

 

Two of the five NSR interests
include claims surrounding the Barry Gold Deposit being advanced by Metanor Resources Inc. (“Metanor”). The first of
these is a 1% NSR on claims immediately north of the Barry Gold Deposit, which Metanor may repurchase one half of for a cash payment
of $500,000; the second of which is a 0.5% NSR on claims surrounding the Barry Gold Deposit, which Metanor may repurchase one half
of for a cash payment of $250,000.

 

    	 	 	19

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

The Windfall Royalties

 

Two of the five NSR interests
are claims adjacent to the Windfall Lake Gold Deposit (“Windfall Lake”) being advanced by Eagle Hill Exploration Corp.
(“Eagle Hill”). The first of these is a 1% NSR on 184 claims north of Windfall Lake, which Eagle Hill may repurchase
for a cash payment of $500,000; the second of which is a 0.5% NSR on claims immediately north of Windfall Lake, which Eagle Hill
may repurchase for a cash payment of $500,000.

 

The Waconichi Royalty

 

One of the five NSR interests
is a 1% NSR on claims comprising the Waconichi property (the “Waconichi NSR”) operated by Northern Superior Resources
Inc. (“Northern Superior”). Northern Superior may repurchase one half of the Waconichi NSR for a cash payment of $1,000,000.

 

Bradshaw Gold Deposit

 

On December 13, 2013, the Company
closed a purchase agreement pursuant to which the Company acquired royalty interests on the Bradshaw Gold Deposit located in Ontario.
The Company acquired a 1% gross royalty on the Bradshaw Gold Deposit, a 1% gross royalty interest on a portfolio of mineral claims
surrounding the Bradshaw Gold Deposit, and a right-of-first-refusal with respect to the future gold streams associated with the
Bradshaw Gold Deposit (collectively, the “Assets”). As consideration for the Assets, the Company paid cash of $750,000.

 

Eastern Extension Gold
Deposit 

 

On November 7, 2013, the Company
closed a purchase agreement pursuant to which the Company acquired a royalty interest on the Eastern Extension Gold Deposit located
in Quebec from the operator of the project. The royalty interest provides a 1% NSR for total consideration of $440,000, paid through
the issuance of 1,000,000 common shares of the Company at a value of $0.44 per common share. One-half of the shares issued are
subject to an escrow period expiring 10 months from the date of closing of the transaction.

 

Iron Horse Project

 

On August 2, 2013, the Company
entered into an assumption agreement pursuant to which the Company acquired a royalty interest in the Iron Horse Project located
in Newfoundland for total consideration of $600,000, paid through the issuance of 1,333,333 common shares of the Company at a
value of $0.45 per common share. The royalty interest provides a 1% NSR. The shares provided to Metals Creek are subject to an
escrow period whereby 25% of the shares will be released every 6 months from the date of closing of the transaction.

 

    	 	 	20

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Barry Project

 

On March 25, 2013, the Company
entered into an assumption agreement pursuant to which the Company acquired a royalty interest in the Barry Gold Deposit located
in Quebec for total cash consideration of $450,000. The royalty interest acquired is a 1% NSR and covers two property segments
with stand-alone royalty obligations. As part of the royalty agreement, the operating entity has the right to purchase one-half
of the 1% NSR on one of the property segments for an amount of $500,000.

 

Bachelor Lake

 

On March 31, 2011, the Company
entered into an assumption agreement pursuant to which the Company acquired a royalty interest in the Bachelor Lake Property located
in Quebec for $1,200,000. The royalty interest acquired is a 1% NSR on all minerals produced from all or any part of this property
as outlined in the royalty agreement with the operating entity. Pursuant to the assumption agreement, the Company will be entitled
to all royalties paid on the first 200,000 ounces of gold or gold equivalent ounces of other minerals and that royalty payments
for minerals extracted in excess of 200,000 ounces will be split such that the Company will receive 60% of these royalty payments.

 

On March 22, 2012, the Company
entered into an amendment to purchase agreement in exchange for cash consideration of $300,000. The amendment to purchase agreement
changed the assumption agreement dated March 31, 2011 and provided that the Company would receive 100% of royalty payments in excess
of 200,000 ounces of gold or gold equivalent ounces of other minerals. During the period ended December 31, 2012, commercial production
began on the Bachelor Lake property, and accordingly the Company has recorded a depletion expense.

 

As part of the royalty agreement,
the operating entity had the right to re-purchase the royalty for an amount of $1,000,000 subject to the right of the Company to
limit the sale to half of the royalty for an amount of $500,000. The operating entity was entitled to exercise its right to re-purchase
the royalty at any time within eighteen months from the date of the commencement of the commercial production, as defined in the
royalty agreement. On February 5, 2013, the Company accepted the contractual re-purchase right of one half of the Bachelor Lake
NSR royalty in exchange for a cash payment of $500,000 and a declaration by the operator of commercial production. The Company
now retains a 0.5% NSR on all life-of-mine production from the Bachelor Lake properties. The Company recorded a loss on the re-purchase
of the royalty of $228,514.

 

    	 	 	21

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Bermuda & Bermuda Project

 

On December 13, 2011, the Company
entered into an assumption agreement pursuant to which the Company acquired a royalty interest in the Bermuda Property located
in Ontario for $125,000. The royalty interest acquired is a 0.5% NSR on all minerals produced from all or any part of this property
as outlined in a royalty agreement with the operating entity.

 

On March 1, 2013, the Company
entered into an assumption agreement pursuant to which the Company acquired a royalty interest in the Bermuda Project located in
Ontario for total consideration of $275,000, paid through the issuance of 352,565 common shares of the Company at a value of $0.78
per common share. The royalty interest provides an NSR of 1%.

 

Subsequent to December 31, 2013,
the Company determined that the carrying value of the Bermuda and Bermuda project royalties exceeded the recoverable amount and
accordingly impaired the value to $nil as at December 31, 2013.

 

Yellowjacket

 

On January 10, 2012, the Company
entered into a purchase agreement pursuant to which the Company acquired a 1.5% NSR interest in the Yellowjacket property located
in British Columbia. The acquisition cost of the royalty interest is $700,000 and is held by way of an escrow agreement between
the vendor and the Company. Pursuant to the escrow agreement, the Company paid $100,000 to the vendor on the closing date of the
transaction and was required to pay the additional $600,000 by way of six annual payments of $100,000 due on or before each of
the annual anniversary dates of January 10.

 

The present value of the future
annual payments of $600,000 was recorded as a liability in the consolidated statement of financial position. Through a non-cash
accretion expense, the liability was being increased to its face value of $600,000 over the 6 year life of the liability.

 

On January 10, 2013, upon review
of the operator’s strategic announcement indicating the operator was sourcing opportunities to increase the value from the
mining property, the Company elected to discontinue all remaining and future obligations toward the acquisition price. The remaining
cost of the royalty interest recorded and the offsetting current and long-term portion of the royalty interest payable were removed
upon the disposition date.

 

A director and CEO of the Company
was a director of Athabasca Nuclear Corporation (formerly Yellowjacket Resources Ltd) at the time of the above, the owner of the
Yellowjacket Property.

 

    	 	 	22

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

Eagle and Lynx 

 

On July 30, 2012, the Company
entered into an agreement to acquire two royalty interests in the Eagle and Lynx zones for total consideration of $9,000,000. The
Eagle zone interest acquired provides a gross returns royalty of 2%, whereby the production royalty is to be calculated upon commencement
of production. The royalty rate of 2% of gross returns received from the sale of metals produced will be reduced to 1% of the gross
returns after the Company has received $1,000,000 in royalty payments of which $580,000 has been received to date. The operator
has no buy-back rights on this royalty. The Lynx zone interest acquired provides a net smelter royalty of 1.5%, which may be repurchased
by the operator at a rate of $100,000 per 0.1% for a total of $1,500,000, less advance royalty payments received by either the
royalty’s vendor or the Company, as the cumulative case may be. During the year ended December 31, 2014, the Company received
the second annual advance royalty payment of $35,000, which has been recorded as an offset to the cost of the royalty.

 

The Company issued 200,000 share
purchase warrants to those who facilitated the acquisition of the royalty interests and entitles the holders thereof to purchase
one common share of the Company at a price of $0.80 per common share until July 14, 2014. The share purchase warrants were valued
at $68,698 and recorded as an acquisition cost with an offsetting credit to warrants. The share purchase warrants expired unexercised
during the year ended December 31, 2014.

 

On January 14, 2015, the Company
sold its interest in Eagle and Lynx (note 6).

 

    	 	 	23

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

		8	Convertible debenture

 

On July 30, 2012, the Company
issued a non-brokered convertible debenture in the amount of $5,400,000 (the “Debenture”) to Callinan Royalties Corporation.
The Debenture bears an interest rate of 10% per annum, compounded quarterly, and has a maturity date of July 30, 2016. As of December
31, 2014, the Company has accrued $1,239,082 (December 31, 2013 - $817,344) of interest expense. The Debenture is convertible into
units of the Company at the option of the holder at any time up to the date of maturity. The conversion price is $0.80 per unit.
Each unit consists of one common share of the Company and one common share purchase warrant. Each common share purchase warrant
entitles the holder thereof to purchase one common share of the Company at a price of $1.20 per common share until July 30, 2016.
The interest can be deferred in full to the maturity date and can be paid in common shares of the Company at the then 5-day weighted-average
market share price. The Debenture can also be redeemed in either cash, or for a 60% ownership position in royalties on the Eagle
Zone and Lynx Zone mining properties. The Company has the right to redeem the Debenture for a cash payment of $8,600,000 at any
point up to the maturity date, subject to the holder first having a pre-emptive right to convert the amount then outstanding into
equity of the Company. The Debenture is secured by a general security agreement over the Company’s assets.

 

The Debenture is a compound financial
instrument and as such has been bifurcated into a liability and equity component. The residual valuation method was used to determine
the equity portion of the Debenture. Under this approach, the liability component was valued first, and the difference between
the proceeds of the Debenture and the fair value of the liability was assigned to the equity component. The Company allocated $4,448,012
to the liability component and $951,988 to the equity component upon issuance of the Debenture.

 

The present value of the liability
component was calculated using a discount rate of 15% per annum which approximated the interest rate that would have been applicable
to non-convertible debt of the Company at the time the Debenture was issued. Through a non-cash interest expense, the liability
component of the Debenture will be increased to its face value of $5,400,000 over the 4 year life of the Debenture using the effective
yield method.

 

    	 	 	24

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

The following table summarizes
the accounting of the Debenture:

 

	 	 	Debenture
 $	 
	Balance, December 31, 2012	 	 	4,775,337	 
	Accretion of liability component	 	 	237,996	 
	Accrued interest expense	 	 	588,969	 
	Balance, December 31, 2013	 	 	5,602,302	 
	Accretion of liability component	 	 	237,996	 
	Accrued interest expense	 	 	650,113	 
	Balance, December 31, 2014	 	 	6,490,411	 

 

On January 12, 2015, the Company
sold its Eagle and Lynx royalty interests for gross proceeds of $7,000,000 USD ($8,349,608 CDN) (note 6). The proceeds were used
to extinguish the principal balance and accrued interest owing under the Debenture, pursuant to the Company’s right to repay
the Debenture prior to its maturity date of July 2016 for a one-time cash payment of $8,600,000 CDN. The Company made a one-time
cash payment of $6,882,484 CDN and issued 2,836,603 common shares to Callinan Royalties (the “Lender”) at a fair value
of $255,294, which is $0.09 per share. The Lender accepted the cash payment and common shares as settlement for the original principal
and its accrued interest through to the closing date of the settlement of January 12, 2015.

 

		9	Share capital

 

		a)	Authorized

 

Unlimited number of common shares, no par value

Unlimited number of voting convertible, redeemable,
preferred shares, no par value

 

		b)	Issued

 

	 	 	Number of 

Common Shares	 	 	Amount
 $	 
	Balance, December 31, 2012	 	 	20,099,414	 	 	 	10,150,106	 
	Royalty interest acquisition (note 7)	 	 	2,685,898	 	 	 	1,315,000	 
	Private placement (i)	 	 	1,960,000	 	 	 	393,251	 
	Share issue costs (i)	 	 	-	 	 	 	(36,414	)
	Exercise of broker warrants (note 9(g))	 	 	21,700	 	 	 	10,850	 
	Balance, December 31, 2013	 	 	24,767,012	 	 	 	11,832,793	 
	Royalty interest acquisition (note 7)	 	 	328,948	 	 	 	85,526	 
	Private placement (ii)	 	 	720,000	 	 	 	177,309	 
	Share issue costs (ii)	 	 	-	 	 	 	(9,648	)
	Balance, December 31, 2014	 	 	25,815,960	 	 	 	12,085,980	 

 

    	 	 	25

     

    

  

	Gold Royalties Corporation
	Notes to the Consolidated Financial Statements
	For the year ended December 31, 2014 and December 31, 2013 
	(Audited)

 

		i)	On December 6, 2013, the Company completed a private placement (the “Private Placement”),
issuing 1,960,000 units (“Units”) for total proceeds of $784,000 ($0.40/unit). Each unit consisted of one common share
of the Company and one common share purchase warrant, with each whole warrant entitling the holder thereof to purchase one common
share of the Company for $0.50 per common share until December 6, 2015, which was valued at $390,749 (note 9 (f)).

 

In connection with the private
placement, cash commissions of $56,645 were paid to facilitators of the private placement of which $28,413 was allocated to share
capital and $28,232 was allocated to warrants. 38,625 broker units were also issued, valued at $15,952 on the same basis as the
Unit (note 9(g)). The broker units are exercisable until December 6, 2015. $8,001 of the broker unit option value was allocated
to share capital and $7,951 was allocated to warrants, with an offsetting credit to contributed surplus totaling $15,952.

 

		ii)	On May 1, 2014, the Company completed a private placement, issuing 720,000 units for total proceeds
of $252,000 ($0.35/unit). Each unit consisted of one common share of the Company and one common share purchase warrant, with each
whole warrant entitling the holder thereof to purchase one common share of the Company for $0.50 per common share until May 1,
2016, which was valued at $74,691 (note 9 (f)).

 

In connection with the private
placement, cash commissions of $11,558 were paid to facilitators of the private placement of which $9,648 was allocated to share
capital and $1,910 was allocated to warrants.

 

		iii)	As at December 31, 2014, there is 578,400 common shares (2013 – 1,156,800) held in escrow

 

		c)	Stock options

 

The Company established a stock
option plan (the “Plan”) for the benefit of employees, directors, officers and consultants of the Company. The maximum
number of options available under the Plan is limited to 10% of the issued and outstanding common shares on the date the option
is granted. The terms of each grant, including the price, vesting period and the exercisable period are determined by the Board
of Directors.

 

    	 	 	26

     

    

 

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

During the year ended December 31,
2014, there were 375,000 options granted, 70,000 options were cancelled, 140,000 options were forfeited and there were no exercises
or expiries. The following table summarizes information about the Company’s stock options outstanding at December 31, 2014:

 

	 	 	December 31, 2014	 	 	December 31, 2013	 
	 	 	Number of Options
 Exercisable and
 Outstanding	 	 	Weighted Avg.
 Exercise Price
 $
	 	 	Number of Options
 Exercisable and
 Outstanding	 	 	Weighted Avg.
 Exercise Price 
$	 
	Outstanding, beginning of year	 	 	1,150,000	 	 	 	0.79	 	 	 	900,000	 	 	 	0.78	 
	Granted	 	 	375,000	 	 	 	0.40	 	 	 	250,000	 	 	 	0.825	 
	Cancelled	 	 	(70,000	)	 	 	0.825	 	 	 	-	 	 	 	-	 
	Forfeitures	 	 	(140,000	)	 	 	0.825	 	 	 	-	 	 	 	-	 
	Outstanding, end of year	 	 	1,315,000	 	 	 	0.68	 	 	 	1,150,000	 	 	 	0.79	 

 

The total stock options outstanding at December 31, 2014
are as follows:

 

	Exercise
 prices ($)	 	Options
 outstanding	 	 	Weighted average
 remaining term
 (years)	 	 	Weighted
 average exercise
 price ($)	 	 	Options
 exercisable	 	 	Weighted
 average exercise
 price ($)	 
	0.00-1.00	 	 	1,315,000	 	 	 	3.51	 	 	 	0.68	 	 	 	1,167,500	 	 	 	0.66	 

 

On October 4, 2012, the Company announced
its intent to grant 250,000 stock options to officers and employees of the Company. On August 13, 2013, the grant received regulatory
and shareholder approval, and accordingly the stock options were valued as of the approval date. Each option had an exercise price
of $0.825 per option and each has a term of 5 years from the original grant date. The stock options were re-priced to $0.30 on
August 29, 2014. All options vest 1/3 on each of the first, second and third anniversaries of the original grant date.

 

On December 13, 2013, the Company
announced its intent to grant 450,000 stock options to officers and employees of the Company. On August 29, 2014, the grant received
regulatory and shareholder approval, accordingly the stock options were valued as of the approval date. 375,000 stock options were
granted as 75,000 options were granted to officers and employees who resigned prior to the approval date of August 29, 2014. Each
option has an exercise price of $0.40 per option and each has a term of 5 years from the original grant date.

 

		d)	Share based payment expense

 

The stock options granted during
the year ended December 31, 2014 are all exercisable at $0.40 per option and expire 5 years after the grant date. All options vested
immediately on the approval date. Share-based payment expense, being the estimated fair value of the options granted was calculated
using the Black-Scholes option pricing model.

 

    	 	 	27

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

The stock options granted during
the year ended December 31, 2013 are all exercisable at $0.825 per option and expire 5 years after the grant date. All options
vest 1/3 on each of the first, second and third anniversaries of the grant date. Share-based payment expense, being the estimated
fair value of the options granted was calculated using the Black-Scholes option pricing model.

 

The weighted average assumptions
used in the calculation are noted below:

 

	 	 	December 31, 2014	 	 	December 31, 2013	 
	Risk-free interest rate	 	 	1.35	%	 	 	1.71	%
	Expected life	 	 	5
                                         years	 	 	 	3 years	 
	Volatility	 	 	103.87	%	 	 	103.87	%
	Fair value per option	 	$	0.20	 	 	$	0.27	 
	Forfeiture rate	 	 	0.00	%	 	 	0.00	%

 

Compensation expense recognized during
the year ended December 31, 2014 was $144,903 (year ended December 31, 2013 - $232,887).

 

		e)	Contributed surplus

 

	 	 	December
                                         31, 2014
 $
	 	 	December
                                         31, 2013
 $
	 
	Balance, beginning of year	 	 	616,263	 	 	 	367,424	 
	Share based payment expense	 	 	175,293	 	 	 	232,887	 
	Broker warrants issued under Private Placement (note 9(g))	 	 	-	 	 	 	15,952	 
	Fair value reallocation on expiry of warrants	 	 	1,088,188	 	 	 	-	 
	Fair value reallocation on stock option forfeitures	 	 	(30,390	)	 	 	-	 
	Balance, end of year	 	 	1,849,354	 	 	 	616,263	 

 

    	 	 	28

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

		f)	Warrants

 

Warrants to acquire common shares outstanding
at December 31, 2014 are as follows:

 

	 	 	Number of
 warrants issued
 and exercisable	 	 	 
Amount
 $
	 	 	Weighted average
 exercise price
 $
	 	 	Weighted average
 Remaining life
 (years)
	 
	Balance, December 31, 2012	 	 	9,851,114	 	 	 	1,268,288	 	 	 	0.74	 	 	 	2.31	 
	Private placement (note 9 (b)(i))	 	 	1,960,000	 	 	 	390,749	 	 	 	0.50	 	 	 	1.93	 
	Share issue costs (note 9(b)(i) and 9(g))	 	 	-	 	 	 	(36,183	)	 	 	-	 	 	 	-	 
	Balance, December 31, 2013	 	 	11,811,114	 	 	 	1,622,854	 	 	 	0.70	 	 	 	1.42	 
	Private placement (note 9(b)(ii))	 	 	720,000	 	 	 	74,691	 	 	 	0.50	 	 	 	1.33	 
	Share issue costs (note 9(b)(ii))	 	 	-	 	 	 	(1,910	)	 	 	-	 	 	 	-	 
	Reallocation of warrant fair value upon expiry	 	 	(4,391,112	)	 	 	(1,088,188	)	 	 	(0.48	)	 	 	-	 
	Balance, December 31, 2014	 	 	8,140,002	 	 	 	607,447	 	 	 	0.50	 	 	 	0.92	 

 

The fair value of the warrants are
estimated as at the grant date using the Black-Scholes option pricing model. The weighted average assumptions used in the calculation
are noted below:

 

	 	 	December 31, 2014	 	 	December 31, 2013	 
	Risk-free interest rate	 	 	1.05	%	 	 	1.06	%
	Expected life	 	 	2
                                         years	 	 	 	2 years	 
	Expected volatility	 	 	105.61	%	 	 	105.61	%
	Fair value per warrant	 	 	0.10	 	 	 	0.20	 

 

		g)	Broker warrants

 

	 	 	 
 
Number of Broker
 Warrants
	 	 	Weighted
 Average Exercise
 Price
 $
	 	 	 
 
Amount
 $
	 	 	 
Weighted
 Average Life
 (years)
	 
	Balance, December 31, 2012	 	 	647,500	 	 	 	0.79	 	 	 	222,910	 	 	 	1.61	 
	Exercise of broker warrants acquired on Acquisition	 	 	(21,700	)	 	 	-	 	 	 	-	 	 	 	-	 
	Broker Unit – common share portion (i)	 	 	38,625	 	 	 	0.40	 	 	 	8,001	 	 	 	1.93	 
	Broker Unit – warrant portion (i)	 	 	38,625	 	 	 	0.50	 	 	 	7,951	 	 	 	1.93	 
	Balance, December 31, 2013	 	 	703,050	 	 	 	0.76	 	 	 	238,862	 	 	 	0.78	 
	Expiry of broker warrants	 	 	(625,800	)	 	 	0.80	 	 	 	(222,910	)	 	 	-	 
	Balance, December 31, 2014	 	 	77,250	 	 	 	0.40	 	 	 	15,952	 	 	 	0.93	 

 

		i)	Those who facilitated the private placement received an aggregate of 38,625 broker units on the
same basis as the Unit. Each Broker Unit, exercisable until December 6, 2015, consisted of one common share of the Company and
one common share purchase warrant, with each whole warrant entitling the holder thereof to purchase one common share of the Company
for $0.50 per common share until December 6, 2015.

 

    	 	 	29

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

The common share portion of the
broker unit was valued at $8,001 and the warrant portion of the broker unit was valued at $7,951, for an aggregate value of $15,952.
The aggregate value of the Broker Unit was included in share issue costs, allocated between share capital and warrants (note 9(b)(i)),
with a corresponding credit to contributed surplus.

 

The fair value of the broker units
granted was estimated as at the grant date using the Black-Scholes option pricing model. The weighted average assumptions used
in the calculation are noted below:

 

	 	 	December 31, 2013	 
	Risk-free interest rate	 	 	1.06	%
	Expected life	 	 	2 years	 
	Expected volatility	 	 	105.61	%
	Fair value per warrant	 	$	0.20	 

 

		10	Income taxes

 

Income tax expense differs from that which
would be expected from applying the combined effective Canadian federal and provincial corporate tax rates of 25.95% (December
31, 2013 – 25.95%) to income before income taxes as follows:

 

	 	 	December
31, 2014

$
	 	 	December 31, 2013 
$	 
	Loss per statement of comprehensive loss	 	 	(6,351,677	)	 	 	(2,369,633	)
	Tax rate	 	 	25.95	%	 	 	25.95	%
	Expected income tax provision	 	 	(1,648,000	)	 	 	(614,920	)
	Increase (decrease) resulting from:	 	 	 	 	 	 	 	 
	Share-based payments	 	 	40,000	 	 	 	60,434	 
	Other	 	 	207,000	 	 	 	16,451	 
	Items through statement of financial position	 	 	(19,000	)	 	 	(18,839	)
	Change in deferred tax asset not recognized	 	 	1,420,000	 	 	 	556,874	 
	Deferred income tax recovery	 	 	-	 	 	 	-	 

 

    	 	 	30

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

Significant components of deferred
tax assets related to temporary differences and tax loss carry forwards, which have not been recognized in these financial statements,
are as follows:

 

	 	 	December 31, 2014
 $
	 	 	December 31, 2013 
$	 
	Royalty interests	 	 	1,571,344	 	 	 	239,708	 
	Non-capital tax losses carried forward	 	 	829,194	 	 	 	646,294	 
	Share issue costs	 	 	145,295	 	 	 	219,468	 

 

Significant components of deferred
tax liabilities related to temporary differences and tax loss carry forwards, which have been recognized in these financial statements,
are as follows:

 

	 	 	December 31, 2014
 $
	 	 	December 31, 2013 
$	 
	Convertible debenture	 	 	(95,000	)	 	 	(160,000	)
	Non-capital tax losses carried forward	 	 	95,000	 	 	 	160,000	 

 

The accumulated non-capital loss carry
forwards expire as follows:

 

	2034	 	 	454,333	 
	2033	 	 	1,320,167	 
	2032	 	 	450,073	 
	2031	 	 	478,111	 
	2030	 	 	647,613	 
	2029	 	 	211,143	 

 

		11	Related party transactions

 

The Company considers its directors
and executives to be key management personnel. Compensation attributed to the directors and key management personnel, consisting
of the president and chief executive officer and the chief financial officer, is as follows:

 

	 	 	December 31, 2014
 $
	 	 	December 31, 2013 
$	 
	Salaries and benefits	 	 	325,945	 	 	 	358,468	 
	Share based expense	 	 	144,903	 	 	 	232,887	 
	Total	 	 	470,848	 	 	 	591,355	 

 

    	 	 	31

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

		12	Financial instruments and risk management

 

The Board of Directors oversees managements’
establishment and execution of the Company’s risk management framework. Management has implemented and monitors compliance
with risk management policies. The Company’s risk management policies are established to identify and analyze the risks faced
by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company’s
activities.

 

		a)	Fair values 

 

The Company’s financial instruments
consist of cash, accounts receivable, accounts payable and accrued liabilities, and the convertible debenture. The fair value of
all the financial instruments, other than cash and the convertible debenture, approximate their carrying value due to their short-term
nature.

 

The significance of inputs used in
making fair value measurements are examined and classified according to a fair value hierarchy. Fair values of assets and liabilities
included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Assets
and liabilities in Level 2 include valuations using inputs other than quoted prices for which all significant outputs are observable,
either directly or indirectly. Level 3 valuations are based on inputs that are unobservable and significant to the overall fair
value measurement.

 

At December 31, 2014, the Company’s
cash has been subject to Level 1 valuation.

 

		b)	Credit risk

 

Credit risk is the risk that a third
party might fail to fulfill its performance obligations under the terms of a financial instrument. Credit risk arises from cash
and accounts receivables. The Company closely monitors its financial assets and maintains its cash deposits in high quality financial
institutions. The maximum credit risk exposure for all of the Company's current financial assets is the carrying value of those
assets. As at December 31, 2014, $61,589 (December 31, 2013 - $66,954) of the Company’s accounts receivable was held with
one party and was collected subsequent to December 31, 2014.

 

As at December 31, 2014, the Company
had cash of $634,801 (December 31, 2013 - $589,847) deposited with one major Canadian financial institution. As the amounts are
deposited with a Canadian chartered bank, management has assessed the risk of loss to be minimal.

 

    	 	 	32

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

		c)	Market risk

 

Market risk is the risk that changes
in market factors, such as commodity prices or interest rates, will affect the value of the Company’s financial instruments.
The Company manages market risk by either accepting it or mitigating it through the use of economic strategies.

 

		(i)	Commodity price risk

 

The Company’s royalty interest
revenue is subject to fluctuations from changes in market prices of the underlying minerals. The market prices are the primary
drivers of the Company’s profitability and ability to generate free cash flow. All of the Company’s future revenue
is un-hedged.

 

		(ii)	Interest rate risk

 

Interest rate risk refers to the risk
that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest
rates. Currently, the Company’s interest rate exposure arises mainly from the interest receipts on cash and the fixed interest
rate on the convertible debenture.

 

		d)	Liquidity risk

 

Liquidity risk is the risk that the
Company will not be able to meet its financial obligations as they come due. The Company ensures, as far as possible, that it will
have sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses or harm to the Company’s
reputation. The Company’s financial liabilities consist of accounts payable and accrued liabilities, and convertible debenture.
As at December 31, 2014, the Company has sufficient cash resources to meet all of its current liabilities as they become due.

 

		13	Capital management

 

The Company defines capital to be
components of shareholders' equity. The Company's objective in managing capital is to ensure its ability to maintain its operations
and achieve its growth objectives (note 1). The Company does not have any externally imposed capital management requirements. Management
reviews its capital management approach on an ongoing basis and believes its current approach is reasonable given the size of the
Company. There has been no change in management’s approach to capital management during the year.

 

    	 	 	33

     

    

 

Gold Royalties Corporation

Notes to the Consolidated Financial Statements

For the year ended December
31, 2014 and December 31, 2013 

(Audited)

 

		14	Subsequent event

 

Subsequent to December 31, 2014,
the Company entered into the following transactions:

 

On February 17, 2015, the Company
entered into an arrangement agreement (the “Arrangement Agreement”) pursuant to which all of the outstanding common
shares of the Company will be acquired by an unrelated party (the “Acquirer”) by way of a statutory plan of arrangement
(the “Arrangement”). Pursuant to the Arrangement, shareholders of the Company will receive common shares of the Acquirer
on the basis of 0.045 common shares of the Acquirer for each 1 common share of the Company. All warrants and stock options outstanding
within the Company as of the Arrangement date will receive, on subsequent exercise of such warrants and options in accordance with
its terms and for the same aggregate exercise price, 0.045 of an Acquirer common share.

 

The Arrangement received shareholder
approval on April 23, 2015.

 

The Arrangement is subject to certain
regulatory approval. In the event the Arrangement is not completed under certain circumstances, the Company has agreed to pay the
Acquirer a termination fee of $200,000.

 

    	 	 	34SALES CONTRACT

 

THIS SALES CONTRACT (the
“Agreement”) is made as of the 14th day of August, 2015 (the “Effective Date”),
by and between ACRE Realty LP, a Georgia limited partnership (“Seller"), and MAPLE MULTI-FAMILY LAND
SE, L.P., a Delaware limited partnership (“Purchaser”).

 

ARTICLE I -- PROPERTY TO BE CONVEYED

 

A.          
Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, upon the terms and
conditions hereinafter set forth, that certain parcel of land (the “Land”) in Sandy Springs, Fulton County,
Georgia, containing approximately 9.696 acres fronting on Peachtree Dunwoody Road and described on Exhibit A attached
hereto and made a part hereof, together with any improvements on the Land (the “Improvements”) and all
permits, licenses and prepaid fees, impact fees or credits with respect to the Land or the use, occupancy or development of the
Land (all of the foregoing property is hereinafter collectively referred to as the “Property”). 

 

B.      The Property shall include
all right, title and interest, if any, of Seller in and to any land lying in the bed of any street, road, highway or avenue, open
or proposed, in front of or adjoining all or any part of the Land, any and all strips, gores or right-of-way, riparian rights and
easements, and all right, title and interest of Seller, if any, in and to any award or payment made or to be made (i) for damage
to the Property or any part thereof by reason of any change of grade or closing of any street, road, highway or avenue adjoining
the Land, and (ii) for any taking in condemnation or eminent domain of any part of the Property.

 

C.      The Property is commonly known as
6903 Peachtree Dunwoody Road, Sandy Springs, Georgia 30328.

 

ARTICLE II -- PURCHASE PRICE

 

A.           
The purchase price (the “Purchase Price”) for the Property shall be
TWELVE MILLION AND NO/100 DOLLARS ($12,000,000.00) and subject to all prorations and adjustments provided herein, shall be paid
as hereinafter set forth. 

 

B.      
Within three (3) Business Days after the Effective Date, Purchaser shall deliver to Fidelity National Title Group, 5565 Glenridge
Connector, Ste 300, Atlanta, GA 30342, Attn: C. Shane Rogers, Esq., Email:  shane.rogers@fntg.com
(the “Escrow Agent”), One Hundred Thousand and No/100 Dollars ($100,000.00) (such $100,000.00, together
with any interest earned thereon, is hereinafter referred to as the “Initial Deposit”). Conditioned
upon Purchaser’s sending the Notice to Proceed (hereinafter defined), within three (3) Business Days after Purchaser sends
the Notice to Proceed, Purchaser will deliver to the Escrow Agent an additional Four Hundred Thousand and No/100 Dollars ($400,000.00)
(such $400,000.00, together with any interest earned thereon, is hereinafter referred to as the “Subsequent Deposit”).
The Initial Deposit and the Subsequent Deposit are hereinafter collectively referred to as the “Deposit”.
The Deposit shall be applied toward the Purchase Price due at Closing (hereinafter defined) or otherwise shall be applied as elsewhere
provided in this Agreement. After Purchaser delivers the Notice to Proceed, the Deposit shall be nonrefundable except as otherwise
specifically provided in this Agreement.

 

    	 

     

    

C.      The
Purchase Price (less the amount of the Deposit, which shall be paid by Escrow Agent to Seller at Closing) shall be paid by Purchaser
to Seller at Closing by wire -transfer to Seller in immediately available funds, subject to all prorations and adjustments provided
herein. On the Closing Date (as hereinafter defined), Seller shall be responsible at its sole cost and expense to pay off in full
and have cancelled and satisfied of record all deeds of trust, mortgages and similar instruments affecting the Property.

 

D.      (i)
The Escrow Agent joins in the execution of this Agreement solely for the purpose of acknowledging and agreeing to the provisions
of this Section II D.

 

        (ii) The duties
of the Escrow Agent shall be as follows:

 

               (a)      During the term of this
Agreement, the Escrow Agent shall hold and disburse the Deposit in accordance with the terms and provisions of this Agreement.

 

               (b)      The Escrow Agent shall
pay the Deposit in accordance with the joint written instructions of Seller and Purchaser in any of the following events: (i) if
this Agreement shall be terminated by the mutual written agreement of Seller and Purchaser, or (ii) if the Escrow Agent shall be
unable to determine at any time to whom the Deposit should be paid, or (iii) if a dispute shall develop between Seller and Purchaser
concerning to whom the Deposit should be paid; provided, however, notwithstanding anything to the contrary contained herein, if
Purchaser elects to terminate this Agreement by written notice to Seller prior to the Hard Date (as hereinafter defined) (with
a copy to Escrow Agent), Escrow Agent shall pay the Deposit to Purchaser without the need for joint written instructions from Seller.
In the event that such written instructions shall not be received by the Escrow Agent within ten (l0) days after the Escrow Agent
has served a written request for instructions upon Seller and Purchaser, then the Escrow Agent shall have the right to pay the
Deposit into any court of competent jurisdiction and interplead Seller and Purchaser in respect thereof, and thereupon the Escrow
Agent shall be discharged of any obligations in connection with this Agreement.

 

             (c)      If costs or expenses are
incurred by the Escrow Agent in its capacity as Escrow Agent because of litigation or a dispute between the Seller and Purchaser
arising out of the holding of the Deposit in escrow, Seller and Purchaser shall each pay the Escrow Agent one-half of such reasonable
costs and expenses.

 

    	 	-2-	 

     

    

             (d)      By joining herein, the
Escrow Agent undertakes only to perform the duties and obligations imposed upon the Escrow Agent under the terms of this Agreement
and expressly does not undertake to perform any of the other covenants, terms and provisions incumbent upon the Seller and the
Purchaser hereunder.

 

             (e)      Purchaser and Seller hereby
agree and acknowledge that the Escrow Agent assumes no liability in connection herewith except for negligence or willful misconduct;
that the Escrow Agent shall never be responsible for the validity, correctness or genuineness of any document or notice referred
to under this Agreement; and that in the event of any dispute under this Agreement, the Escrow Agent may seek advice from its own
counsel and shall be fully protected in any action taken by it in good faith in accordance with the opinion of its counsel.

 

           (f)      All investments by Escrow
Agent will be made in the regular course of business. To be entitled to same day investment (assuming good funds are provided),
the Deposit must be received by noon; otherwise, such funds will be deposited on the next business day but only if Escrow Agent
has received its required signed investment forms. All investments shall be subject to the rules, regulations, policies and procedures
of the bank depository (the “Depository”) in which such monies are deposited.

 

          (g)      Purchaser agrees to provide
to Escrow Agent a W-9 so that the Deposit can be invested in an interest-bearing account.

 

          (h)      The Deposit may be processed
for collection in the normal course of business by Escrow Agent, but immediately thereafter the Deposit shall be deposited in a
separate escrow account with the Depository and shall not be commingled with funds of others. Escrow Agent shall not be accountable
for any incidental benefit which may be attributable to the funds so deposited. Escrow Agent shall not be liable for any loss caused
by the failure, suspension, bankruptcy or dissolution of the Depository.

 

           (i)       Escrow Agent shall not
be liable for loss or damage resulting from:

 

(i) any good faith act or
forbearance of Escrow Agent;

 

(ii) any default,
error, action or omission of any party, other than Escrow Agent;

 

(iii) any defect
in the title to any property unless such loss is covered under a policy of title insurance issued by the Escrow Agent;

 

(iv) the expiration
of any time limit or other delay which is not solely caused by the failure of Escrow Agent to proceed in its ordinary course of
business, and in no event where such time limit is not disclosed in writing to the Escrow Agent;

 

    	 	-3-	 

     

    

(v) the lack of
authenticity of any writing delivered to Escrow Agent or of any signature thereto, or the lack of authority of the signatory to
sign such writing;

 

(vi) Escrow Agent’s
compliance with all attachments, writs, orders, judgments, or other legal process issued out of any court;

 

(vii) Escrow Agent’s
assertion or failure to assert any cause of action or defense in any judicial or administrative proceedings; or

 

(viii) any loss
or damage which arises after the Deposit has been disbursed in accordance with the terms of this Agreement.

 

      (j)      Escrow Agent shall be
fully indemnified by the parties hereto for all of its expenses, costs, and reasonable attorney’s fees incurred in connection with
any interpleader action which Escrow Agent may file to resolve any dispute as to the Deposit, or which may be filed against the
Escrow Agent.

 

      (k)      If Escrow Agent is made
a party to any judicial, non-judicial or administrative action, hearing or process based on acts of any of the other parties hereto
and not on the malfeasance and/or negligence of Escrow Agent in performing its duties hereunder, the expenses, costs and reasonable
attorneys’ fees incurred by Escrow Agent in responding to such action, hearing or process shall be paid by the party/parties whose
alleged acts are a basis for such proceedings, and such party/parties shall indemnify, save and hold Escrow Agent harmless from
said expenses, costs and fees so incurred.

 

ARTICLE III -- TITLE AND
SURVEY OBJECTIONS

 

      A.      On or before the thirtieth (30th)
day after the Effective Date (the “Title and Survey Objection Date”), Purchaser, at Purchaser’s
sole cost and expense, shall obtain a current and accurate ALTA/ACSM survey of the Land (the “Survey”)
certified to Seller, Purchaser and the Title Company by a licensed Georgia surveyor, showing
the boundaries of the Land, and containing a complete legal description of the Land (including the number of acres to the nearest
1/100th of an acre and the square feet contained therein).

 

      B.      Purchaser, at Purchaser’s
sole cost and expense, on or before the Title and Survey Objection Date, shall obtain from Chicago Title Insurance Company (herein
in this capacity referred to as the “Title Company”), an owner’s title insurance commitment (the “Commitment”),
together with legible copies of all matters referred to therein as exceptions to title. On or before the Title and Survey Objection
Date, Purchaser shall notify Seller of any objections as to the Survey and title to the Land. Seller, at Seller’s expense, shall
have up to ten (10) days immediately following said notice (the “Seller’s Response Period”) to
cure or agree to cure any title defects or Survey objections; provided, however, Seller shall have no obligation to cure any title
defects or Survey objections, except as specifically required in Sections III C, D and E. Seller shall, within Seller’s Response
Period, notify Purchaser in writing whether or not Seller will agree to cure such objections by the Closing Date (and if Seller
does agree to cure, such agreement by Seller shall thereupon become a covenant of Seller under this Agreement). If Seller fails
to cure or agree in writing to cure all of Purchaser’s objections within Seller’s Response Period, then Purchaser shall
elect by written notice to Seller given on or before five (5) days after the end of Seller’s Response Period to either (i) terminate
this Agreement and receive a full refund of so much of the Deposit as is then held by Escrow Agent, and thereafter this Agreement
shall be null and void and of no further force or effect, and neither Purchaser nor Seller shall have any further rights, duties,
liabilities or obligations to the other by reason hereof except for those matters that specifically survive the termination, or
(ii) waive such objections and consummate the transaction contemplated herein without reduction of the Purchase Price. Any
title matters set forth in the Commitment and not timely objected to by Purchaser shall be deemed approved by Purchaser under this
Agreement. If Purchaser does not provide Seller written notice of Purchaser’s election as above provided, then Purchaser shall
be deemed to have elected to terminate this Agreement as provided in the aforesaid item (i). Those documents of record shown on
the Survey or revealed in the Commitment to which Purchaser fails to object or which Purchaser accepts as provided for above and
those matters set forth on Exhibit B attached hereto and made a part hereof which encumber the Property at Closing
shall be the “Permitted Exceptions” for the purpose of this Agreement.

 

    	 	-4-	 

     

    

      C.      Purchaser, at Purchaser’s
sole cost and expense, shall have the right to have its title examination and the Survey updated through the Closing Date (hereinafter
defined), and if any such update discloses any new title exceptions or survey matters as to which Purchaser has an objection and
which were not listed in the Commitment, as to title matters, or which were not shown on the Survey, as to survey matters (any
such new matter being referred to as a “New Objection”), Purchaser shall deliver to Seller a statement
of any such New Objections and Seller shall have until the Closing Date to cure all such New Objections. If Seller fails to cure
such New Objections on or before the Closing Date and provided that such New Objection was created by Seller after the Effective
Date, (i) Purchaser may terminate this Agreement by written notice to Seller given on or before the Closing Date, whereupon Purchaser
shall receive from Escrow Agent a full refund of the Deposit, and thereafter this Agreement shall be null and void and of no further
force or effect, and neither Purchaser nor Seller shall have any further rights, duties, liabilities or obligations to the other
by reason hereof except for those matters that specifically survive such termination, or (ii) if such New Objections created
by Seller may be cured by the payment of a liquidated amount of money, Purchaser may cure such New Objections created by Seller
after the Effective Date, any objections Seller agreed to cure and failed to do so and any matters set forth in Section III
D herein and deduct the reasonable cost thereof from the Purchase Price otherwise payable by Purchaser at Closing, or (iii) Purchaser
may waive such New Objections and consummate the transaction contemplated herein without reduction of the Purchase Price.

 

    	 	-5-	 

     

    

      D.      Notwithstanding anything
to the contrary contained in this Agreement, on or before the Closing, Seller shall be required to cure (i) any mortgages,
deeds of trust, liens or other monetary encumbrances affecting the Property created by Seller; and (ii) any objections that
Seller agrees to cure pursuant to Section III B above.

 

      E.      Anything contained in
the foregoing Sections III C and D to the contrary notwithstanding, Seller shall have the right between the Effective Date and
the Closing Date to encumber the Property with a new Deed to Secure Debt or like encumbrance securing indebtedness of Seller in
an amount not to exceed Eight Million and No/100 Dollars ($8,000,000.00) (a “New Mortgage”) provided that the
New Mortgage does not prohibit prepayment at par, and is not locked out from prepayment at any time, and the New Mortgage shall
not be considered a New Objection but Seller shall be required to cause the New Mortgage to be released as an encumbrance against
the Property prior to or concurrently with the Closing, and the Purchase Price otherwise payable to Seller at Closing may be used
to obtain such release.

 

ARTICLE IV -- ITEMS TO BE DELIVERED BY SELLER AT CLOSING

 

At Closing Seller
agrees to deliver the following items to Purchaser. Drafts of all documents to be delivered at Closing as specified in this Agreement
shall be prepared by Purchaser’s counsel and submitted to Seller for review and approval at least five (5) days prior to the Closing
Date.

 

      A.      A duly executed Limited
Warranty Deed, in the form attached hereto as Exhibit C and by this reference made a part hereof conveying to Purchaser
or its assigns, fee simple title to the Property, using the legal description on Exhibit A hereto and subject only
to the Permitted Exceptions. In the event the Survey legal description on Purchaser’s Survey of the Land differs from the
legal description attached hereto as Exhibit A, then Seller shall also execute a quitclaim deed with the Survey legal
description, in form acceptable for recording, of the type customarily used for commercial real estate transactions in the State
of Georgia.

 

      B.      A duly executed affidavit
in the form attached hereto as Exhibit D.

 

      C.      A duly executed Certification
of Non-Foreign Status that pursuant to Section 1445 of the Internal Revenue Code, certifies Seller is not a foreign person, foreign
corporation, foreign partnership, foreign trust or foreign estate or disregarded entity (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations), provided that if Seller cannot execute such Certification because Seller is a foreign
person, Purchaser shall withhold such portion of the Purchase Price as is required by law.

 

      D.      An affidavit of Seller’s
residence in accordance with O.C.G.A. §48-7-128.

 

    	 	-6-	 

     

    

      E.      A Bring-Down Certificate
executed by Seller as specified in the penultimate paragraph of Article XII.

 

      F.      A General Assignment of
all Seller’s right, title and interest in and to all permits and approvals affecting the Property and all other intangible
property rights of Seller in the Property.

 

      G.      A duly executed IRS Form
1099-S, a duly executed Designation of Reporting Agent Agreement and a duly executed Transferor Identification Certificate.

 

      H.      Such evidence as is required
by the Title Company to delete any and all security deeds encumbering the Land from the Commitment to be marked at Closing.

 

      I.      Such evidence as is reasonably
required by the Title Company and the Purchaser evidencing the authority of Seller and those individuals acting on behalf of Seller
to enter into this Agreement and consummate the transaction contemplated herein.

 

      J.      A Closing Statement evidencing
the prorations between Seller and Purchaser and disbursements made in connection with this transaction (the “Closing
Statement”).

 

      K.      Any other documents referred
to or specified in this Agreement or required by the Title Company, and any other documents or agreements deemed necessary or reasonably
appropriate by Purchaser’s and Seller’s respective counsel.

 

ARTICLE V -- ITEMS TO BE DELIVERED BY PURCHASER AT CLOSING

 

At Closing,
Purchaser agrees to deliver the following items to Seller:

 

      A.      The Purchase Price as
required by and in the manner specified in Section II C hereof.

 

      B.      A counterpart original
of the Closing Statement.

 

      C.      Evidence reasonably acceptable
to Seller that those acting for Purchaser have full authority to consummate the transaction contemplated in this Agreement.

 

      D.      Any other documents referred
to or specified in this Agreement or required by the Title Company, and any other documents or agreements deemed necessary or reasonably
appropriate by Purchaser’s and Seller’s respective counsel.

 

    	 	-7-	 

     

    

ARTICLE VI - SELLER’S DELIVERY OF DOCUMENTS

 

Seller has delivered
or will deliver the following to Purchaser within five (5) Business Days after the Effective Date:

 

      A.      A copy of any environmental
report in respect of the Property in Seller’s possession, if any.

 

      B.      A copy of the latest dated survey
of the Land and title insurance policy in Seller’s possession, if any.

 

      C.      A copy of any soils and geotechnical
reports on the Land in Seller’s possession, if any.

 

      D.      A copy of the latest ad valorem
tax bill in Seller’s possession, if any.

 

      E.      All engineering reports, title
exception documents, site plans, warranties, guaranties, appraisals, utility bills, permits, plans, maps, topographic and tree
surveys, zoning information (including zoning approvals and all conditions imposed as part of the current zoning of the Property
and all agreements with third parties, including litigants, arising out of the current zoning or settlement of any disputes regarding
the current zoning), traffic studies and wetlands reports in Seller’s possession, if any, with respect to all or any part of the
Property.

 

      F.      Copies of all approvals from
any governmental entities in Seller’s possession, if any, with respect to all or any part of the Property.

 

      G.      Copies of all utility capacity
letters in Seller’s possession, if any, with respect to all or any part of the Property.

 

ARTICLE VII -- APPORTIONMENTS

 

The following
items shall be apportioned at Closing and as of the Closing Date:

 

      A.      All real property taxes
including the current installment for any assessment (special, bond, or otherwise). In the event that the current year’s taxes
are not available as of the Closing Date, the proration shall be based upon such taxes for the preceding year, but such taxes shall
be reprorated between Purchaser and Seller as soon as the current year’s taxes are available, immediately upon demand being made
therefor by either Purchaser or Seller. Seller shall be entitled to receive any income in respect of the Property and shall be
obligated to pay all expenses in respect of the Property for all time periods prior to and including the day prior to the Closing
Date. Purchaser shall be entitled to receive all such income and shall be obligated to pay all such expenses for all time periods
commencing with the Closing Date. In the event that any income or any expense item relating to the period prior to the Closing
Date is received or appears after the Closing, such item(s) shall be adjusted between the Seller and the Purchaser within ten (10)
days after such is discovered. This Section VII A shall survive the Closing of the transaction contemplated herein for ninety (90)
days after which the agreement to reprorate shall be of no further force or effect.

 

    	 	-8-	 

     

    

ARTICLE VIII -- TIME AND PLACE OF CLOSING AND CLOSING COSTS

 

      A.      The consummation of the
transaction contemplated herein shall take place through an escrow closing conducted by the Escrow Agent, commencing at 11:00 A.M.
Eastern Time on December 7, 2015. Seller and Purchaser each agrees to deliver to the Escrow Agent the documents and instruments
required of them, respectively, as provided in this Agreement, and Purchaser agrees to deliver to the Escrow Agent the amount of
the Purchase Price and the costs and expenses and net amount of prorations specified in this Agreement, all sufficiently in time
so as to allow the Escrow Agent to conduct the Closing on the Closing Date. The consummation of the transaction contemplated herein
is herein referred to as the “Closing”, and the day the Closing occurs is herein referred to as the “Closing
Date”.

 

      B.      At Closing, Seller shall
pay one-half of the Georgia transfer tax and recording fees for recording the Limited Warranty Deed and one hundred percent (100%)
of the recording costs for recording any satisfaction of any New Mortgage and fifty percent (50%) of the Escrow Agent’s fees
for holding the Deposit in escrow and the Escrow Agent’s settlement fee for conducting the Closing. At Closing, Purchaser
shall pay the cost of the Survey, the cost of the Title Commitment and any owner’s title insurance policy issued in favor
of Purchaser, fifty percent (50%) of the Georgia transfer tax and recording fees for recording the Limited Warranty Deed, fifty
percent (50%) of the Escrow Agent’s fees for holding the Deposit in escrow and the Escrow Agent’s settlement fee for
conducting the Closing, all costs incident to Purchaser’s due diligence and financing costs and expenses, and all other costs
and expenses incurred by Purchaser. Seller and Purchaser will each pay their own attorneys’ fees and any other costs herein specified
to be paid by either of them.

 

      C.      Possession of the Property
will be delivered by Seller to Purchaser on the Closing Date, subject only to the Permitted Exceptions.

 

ARTICLE IX--  CONDITIONS PRECEDENT

 

      A.      Purchaser shall not be
required to purchase the Property unless the following conditions precedent have been satisfied:

 

(i)             
On or before October 2, 2015 (herein referred to as the “Hard Date”) Purchaser
is fully satisfied with the Property and Purchaser’s proposed development of the Property in Purchaser’s sole and absolute
discretion. To that end, Purchaser may, but shall have no obligation to, obtain soil borings, engineering reports, geotechnical
studies, marketing studies, topographical surveys, non-invasive environmental tests and studies and evidence of availability of
water, sewer, telephone, natural gas, and electrical utilities all in sufficient capacities so as to permit the development of
the Property for Purchaser’s intended use as a mixed-use development of approximately 236 multifamily rental units, approximately
100,000 square feet of office space, and approximately 10,000 square feet of retail space (the “Intended Use”),
without the imposition of impact fees, cash proffers or unacceptable conditions as determined by Purchaser in its sole discretion.
Seller shall permit Purchaser to make the foregoing investigations. 

 

    	 	-9-	 

     

    

(ii)           
Before the Hard Date, Seller and Purchaser shall have agreed on the site plan (the “Site
Plan”) to allow for Purchaser’s Intended Use to be submitted to the City of Sandy Springs, Georgia, as specified
in Section IX B below. In the event that Seller and Purchaser are not able to so agree, Purchaser will not send the Notice
to Proceed. The Site Plan shall be based on the preliminary drawing agreed to by the parties and attached hereto as Exhibit
E.

 

If Purchaser determines the Property
is satisfactory in all aspects in Purchaser’s sole discretion, and Seller and Purchaser agree respecting the Site Plan to
be submitted to the City of Sandy Springs, Purchaser shall, on or before the Hard Date, notify Seller and Escrow Agent that the
Property is satisfactory and this condition precedent has been satisfied (which notice is herein referred to as “Notice
to Proceed”) and Purchaser shall deposit the Subsequent Deposit as specified in Section II B above. If Purchaser,
in its sole discretion, does not send the Notice to Proceed on or before the Hard Date, or if on or before the Hard Date Purchaser
sends a notice to Seller and the Escrow Agent that Purchaser will not be sending the Notice to Proceed and Purchaser is terminating
this Agreement, this condition precedent shall have failed and Escrow Agent shall return the Initial Deposit to Purchaser (and
Seller shall consent to such return in writing to Escrow Agent) and thereafter this Agreement shall terminate and be null and void
and of no further force and effect, and neither Purchaser nor Seller shall have any further rights, duties, liabilities or obligations
to the other by reason hereof except for those matters that specifically survive such termination. Concurrently with the execution
hereof, Purchaser has paid to Seller One Hundred and No/100 Dollars ($100.00) in consideration of Seller’s execution of this
Agreement.

 

Purchaser specifically agrees
that prior to the Hard Date and the deposit by Purchaser of the Subsequent Deposit, Purchaser will not communicate with any governmental
officials respecting the submittal and approval of the Site Plan and any related zoning approvals unless prior arrangements are
made so that Charles S. Roberts, Executive Vice President of Seller’s general partner (or his designee) (collectively, a
“Seller Designee”), attends any in person meetings or is a participant in any telephone communications
or has been allowed to previously approve any written or text communications with governmental officials regarding such topic.
Seller agrees to cause Seller Designee to make himself reasonably available for any such meetings, but in no event shall Seller
delay more than two Business Days in making a Seller Designee available for any such governmental meeting. Seller acknowledges
that (and consents to) Purchaser contacting governmental officials regarding other aspects of the Property (e.g. environmental,
permitting, construction standards etc.) that are unrelated to the Site Plan approval process, without the requirement that a Seller
Designee participate in such meetings.

 

    	 	-10-	 

     

    

Purchaser also agrees that
notwithstanding anything contained in this Agreement to the contrary, if this Agreement is terminated for any reason whatsoever
(other than a Seller default), Purchaser shall promptly deliver to Seller all tests, studies, reports and other due diligence information
developed by Purchaser and its agents and representatives regarding the Property without warranty or representation by Purchaser
as to the completeness or accuracy thereof (but expressly excluding any confidential information, internal reports and studies
prepared for Purchaser’ investment committee, and any market information and studies.

 

      B.      Provided that Purchaser
and Seller have agreed to the “Site Plan” as contemplated in Section IX A above, promptly thereafter Purchaser at its
sole cost and expense will make application to the City of Sandy Springs, Georgia to obtain approval of Purchaser’s Site
Plan. Purchaser agrees to timely apply for the approval of its Site Plan and to use commercially reasonable, good faith efforts
to obtain approval of its Site Plan.

 

It shall be
a condition precedent to Purchaser’s obligation to close and consummate the transaction contemplated herein that no later
than the date which is sixty (60) days after the Effective Date Purchaser’s Site Plan shall have been approved by the City
of Sandy Springs.

 

If Purchaser’s
Site Plan has not been approved by the City of Sandy Springs on or before the date that is sixty (60) days after the Effective
Date, Purchaser shall have the right (i) to notify Seller and Escrow Agent no later than the sixty-third (63rd)
date after the Effective Date that the condition precedent set forth in this Section IX B has failed, whereupon Escrow
Agent shall return the Deposit to Purchaser, and thereafter this Agreement shall terminate and be null and void and of no further
force and effect, and neither Purchaser nor Seller shall have any further rights, duties, liabilities or obligations to the other
by reason hereof except for those matters that specifically survive such termination; or (ii) to waive the condition precedent
set forth in this Section IX B and proceed to close the transaction otherwise in accordance with the terms and conditions
of this Agreement. Purchaser’s failure to timely notify Seller and Escrow Agent that Purchaser has elected item (i) in the
preceding sentence shall be deemed to mean that Purchaser has elected (ii) of the preceding sentence.

 

      C      Seller shall have fully and completely
kept, observed, performed, satisfied and complied in all material respects with all terms, covenants, conditions, agreements, requirements,
restrictions and provisions required by this Agreement to be kept, observed, performed, satisfied or complied with by Seller on
the Closing Date.

 

      D.      Purchaser shall not have terminated
this Agreement pursuant to an express right so to terminate set forth in this Agreement.

 

If any of the foregoing conditions in Sections
IX C or D have not been satisfied or performed on or as of the Closing Date, Purchaser shall have the right, at Purchaser’s
option, either (i) to terminate this Agreement by giving written notice to Seller on or before the Closing Date, in which event
all rights and obligations of the parties under this Agreement shall expire, and this Agreement shall become null and void except
for the Inspection Indemnity, (ii) waive such failure and proceed to Closing or (iii) if such failure of condition constitutes
a default by Seller under Section XI B of this Agreement, to exercise such rights and remedies specified in Section XI B.
In the event Purchaser exercises item (i) of the foregoing sentence, the Deposit shall be refunded to Purchaser immediately upon
request.

 

    	 	-11-	 

     

    

ARTICLE X -- EMINENT DOMAIN

 

      A.      If, prior to the Closing
Date, there shall be any condemnation or eminent domain proceedings instituted, pending or threatened against any part of the Property,
then Purchaser may elect to terminate this Agreement by written notice given to Seller and Escrow Agent within ten (10) days after
Purchaser has received notice from Seller of such proceedings, which notice Seller agrees to give to Purchaser promptly upon receiving
such information. Upon such notice to Seller and Escrow Agent, so much of the Deposit as is then being held by Escrow Agent shall
be returned by Escrow Agent to Purchaser, and upon such return, this Agreement shall terminate and be null and void and of no further
force or effect, and neither Purchaser nor Seller shall have any further rights, duties, liabilities or obligations to the other
by reason hereof except for those matters that specifically survive the termination. Failure of Purchaser to so notify Seller and
Escrow Agent within said ten (10) days that Purchaser has elected to terminate this Agreement, shall be deemed to mean that Purchaser
has elected not to terminate this Agreement. If Purchaser does not so elect to terminate this Agreement, then the Closing shall
take place as provided herein without abatement of the Purchase Price, and there shall be paid or assigned to Purchaser at Closing
all interest of Seller in and to any condemnation awards with respect to the Property which have been or may be payable to Seller
on account of such occurrence.

 

ARTICLE XI -- REMEDIES

 

      A.      Seller’s only remedy for
Purchaser’s breach of this Agreement shall be to obtain so much of the Deposit as is then held by Escrow Agent, the amount of which
shall be and constitute Seller’s liquidated damages, it being otherwise difficult or impossible to estimate Seller’s actual damages;
provided, however, that nothing herein shall limit the Inspection Indemnity (as hereinafter defined). Seller hereby waives any
right to specific performance, injunctive relief or other relief to cause Purchaser to perform its obligations under this Agreement,
and Seller hereby waives any right to damages in excess of said liquidated damages occasioned by Purchaser’s breach of this Agreement;
provided, however, that nothing herein shall limit the Inspection Indemnity. Seller and Purchaser acknowledge that it is impossible
to estimate or determine the actual damages Seller would suffer because of Purchaser’s breach hereof, but that the liquidated damages
provided herein represent a reasonable estimate of such actual damages and Seller and Purchaser therefore intend to provide for
liquidated damages as herein provided, and that the agreed upon liquidated damages are not punitive or penalties and are just,
fair and reasonable, all in accordance with applicable Georgia law. Seller’s right to receive the specified liquidated damages
is in lieu of any other right or remedy, all other rights and remedies being waived by Seller; provided, however, that nothing
herein shall limit the Inspection Indemnity.

 

    	 	-12-	 

     

    

      B.      If Seller defaults under
this Agreement, Purchaser shall be entitled, as its only remedies hereunder, to either: (i) close the transaction contemplated
by this Agreement, thereby waiving such default to the extent such default is known to exist by Purchaser as of Closing, or (ii)
terminate this Agreement and receive a return of the Deposit and upon such return, this Agreement shall terminate and be null and
void and of no further force or effect, and neither Purchaser nor Seller shall have any further rights, duties, liabilities or
obligations to the other by reason hereof except for those matters that specifically survive the termination, or (iii) seek specific
performance of this Agreement and of Seller’s obligations, duties and covenants hereunder; provided, however, if the remedy of
specific performance is not available because Seller has voluntarily conveyed all or any interest in (or encumbered other than
a New Mortgage) the Property after the Effective Date, then Purchaser shall have the right to sue Seller for the damages suffered
because of Seller’s default. If Purchaser consummates the transaction contemplated in this Agreement it shall be conclusively deemed
to have waived any breach by Seller of any covenant, representation or warranty under this Agreement (but not under any of the
documents executed at Closing which shall continue in accordance with their terms) which the Purchaser knew existed prior to the
Closing.

 

ARTICLE XII - SELLER’S REPRESENTATIONS,

WARRANTIES AND COVENANTS

 

Seller hereby represents,
warrants and covenants to and with Purchaser, knowing that Purchaser in entering into this Agreement is relying on each such representations,
warranties and covenants, as follows:

 

      A.      Seller is a Georgia limited
partnership duly bound by the actions and execution hereof by Robert Gellert, the Executive Vice President of Seller’s sole
general partner, ACRE Realty Investors Inc., a Georgia corporation. This Agreement and all other agreements to be executed by Seller
in connection herewith have been (or upon execution will have been) duly executed and delivered by Seller, have been effectively
authorized by all necessary action, and constitute (or upon execution will constitute) legal, valid and binding obligations of
Seller enforceable against Seller in accordance with their respective terms.

 

      B.      Neither the entering into of
this Agreement nor the consummation of the transaction contemplated hereby will constitute or result in a violation or breach by
Seller of any judgment, order, writ, injunction or decree issued against or imposed upon Seller, or will result in a violation
of any applicable law, order, rule or regulation of any governmental authority. To Seller’s actual knowledge, (i) there is
no action, suit, proceeding or investigation pending against Seller or the Property which would become a cloud on the title to
the Property or any portion thereof or which questions the validity or enforceability of the transaction contemplated by this Agreement
or any action taken pursuant thereto in any court or before or by any federal, district, county, or municipal department, commission,
board, bureau, agency or other governmental instrumentality, and (ii) no approval, consent, order or authorization of, or designation,
registration or filing (other than for recording purposes) with any governmental authority is required in connection with the due
and valid execution and delivery of this Agreement by Seller, compliance with the provisions hereof by Seller, and consummation
of the transaction contemplated hereby by Seller.

 

    	 	-13-	 

     

    

      C.      No later than the
Closing, Seller will provide a paydown/release letter to the Title Company, satisfactory to the Title Company so as to insure Purchaser
in an owner’s title insurance policy to be issued to Purchaser in connection with this transaction, without exception for
all mortgages, deeds of trust and other monetary encumbrances created by Seller affecting the Property. Except as may be permitted
by Section III E, so long as this Agreement remains in effect, Seller shall not grant, convey or assign any easement, interest,
title or estate in or to any portion of the Property which would survive the Closing.

 

      D.      Seller has not received any
written notice of violation of any zoning, land-use, building, fire, health, labor and safety laws, ordinances, rules and regulations
applicable to the Property, and, to Seller’s knowledge, there is no litigation, action, proceeding or any present plan or study
by any governmental authority, agency or employee thereof, which in any way challenges, affects or would challenge or affect the
Property or any street or highway serving or adjacent to the Property. Seller has disclosed to Purchaser that the City of Sandy
Springs has implemented a moratorium on all new rezoning requests for commercial-type development in Sandy Springs.

 

      E.      There exists no leases or license
agreements or management, maintenance, operating, service, commission or similar contracts affecting the Property that will survive
Closing.

 

      F.      Seller warrants that Seller
is not a foreign person, foreign corporation, foreign partnership, foreign trust, foreign estate or disregarded entity as such
terms are defined in Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended.

 

      G.      Neither
the Seller, nor to the Seller’s knowledge, any director, officer, agent, employee, affiliate or representative of the Seller
or any of the Seller’s subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”) or any similar sanctions imposed by any other body,
governmental or other, to which the Company or any of the Company’s subsidiaries is subject.

 

      H.      Seller
has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy
or suffered the filing of an involuntary petition by Seller’s creditors, (iii) suffered the appointment of a receiver
to take possession of all, or substantially all, of Seller’s assets, (iv) suffered the attachment or other judicial
seizure of all, or substantially all, of Seller’s assets or (v) admitted in writing its inability to pay its debts
as they come due.

 

      I.      Seller
has not entered into an agreement or option for the sale of the Land, which agreement or option remains pending, other than this
Agreement.

 

    	 	-14-	 

     

    

      J.      Other
than conditions imposed as part of the current zoning of the Land all of which are contained in the public records as part of
the current zoning approval or have been delivered to Purchaser pursuant to Section VI E above, Seller has made no commitment
to any governmental authority, utility company, school board, church or other religious body, homeowner or homeowner’s association
or any other organization, group or individual relating to the Land which would impose an obligation upon Seller or its successors-in-title
to the Land to make any contributions or dedications of money or land, or to construct, install or maintain any improvements of
a public or private nature as part of the Land or upon separate lands. Seller has received no written notice of any contemplated
or reassessment of the Land or any portion thereof for general real estate tax purposes. Neither Seller nor any of its affiliates
owns any real property that is contiguous to the Land; and to Seller’s knowledge, the tax parcels in which the Land is a
part contains no other property, other than the Land.

 

     K.      Seller
has received no written notice of pending or threatened claims, actions, suits, proceedings or investigations against Seller,
the Land or any occupant of the Land related to alleged or actual violations of Environmental Laws (as defined below).

 

For the purposes of this Agreement, “Environmental
Law” means any current legal requirement, law, rule, regulation or ordinance (whether federal, state or local) in
effect now and pertaining to (a) the management, manufacture, possession, presence, use, generation, transportation, treatment,
storage, disposal, release, threatened release, abatement, removal, remediation or handling of, or exposure to, any Hazardous Material
(as defined below) or (b) pollution (including any release to air, land, surface water, and groundwater); and includes, without
limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 USC §§9601 et seq., Solid Waste Disposal Act, as amended by
the Resource Conservation Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 USC §§6901 et seq.,
Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 USC §§1251 et seq.,
Clean Air Act of 1966, as amended, 42 USC §§7401 et seq., Toxic Substances Control Act of 1976,
15 USC §§2601 et seq., Hazardous Materials Transportation Act, 49 USC App. §§1801,
Occupational Safety and Health Act of 1970, as amended, 29 USC §§651 et seq., Oil Pollution Act
of 1990, 33 USC §§2701 et seq., Emergency Planning and Community Right-to-Know Act of 1986, 42 USC App. §§11001
et seq., National Environmental Policy Act of 1969, 42 USC §§4321 et seq., Safe Drinking
Water Act of 1974, as amended by 42 USC §§300(f) et seq., and any similar, implementing or
successor law, any amendment, rule, regulation, order or directive, issued thereunder.

For the purposes of this Agreement, “Hazardous
Material” means any hazardous or toxic substance as defined in or regulated by any Environmental Law in effect at
the pertinent date or dates.

L.      Seller has not
used the Land as a landfill, dump or stump pit, and to Seller’s knowledge, the Land has never been so used.

M.      To Seller’s
knowledge, there are no above-ground or underground tanks or any other underground storage facilities located on the Land.

    	 	-15-	 

     

    

N.      To Seller’s
knowledge, the Land is not subject to any ongoing re-zoning, site plan approval, variance request or any similar land use related
proceeding or application (except as may be the case in connection with Purchaser’s application for Site Plan approval pursuant
to this Agreement).

O.      On the Effective
Date Seller owns other real property in addition to the Property; but Seller discloses that Seller is in the process of selling
the other real property owned by Seller.

 

ANYTHING
TO THE CONTRARY CONTAINED IN THIS AGREEMENT NOTWITHSTANDING, IT IS UNDERSTOOD AND AGREED THAT THE PROPERTY IS BEING SOLD AND CONVEYED
HEREUNDER, “AS IS, WHERE IS, AND WITH ALL FAULTS” WITH NO RIGHT OF SETOFF OR DEDUCTION TO THE PURCHASE PRICE AND WITHOUT
ANY REPRESENTATION OR WARRANTY BY SELLER EXCEPT AS EXPRESSLY SET FORTH HEREIN. SELLER HAS NOT MADE AND IS NOT MAKING ANY EXPRESS
OR IMPLIED REPRESENTATIONS OR WARRANTIES WHATSOEVER WITH RESPECT TO THE PROPERTY, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION
OR WARRANTY REGARDING THE SUITABILITY OF THE PROPERTY FOR ANY PARTICULAR PURPOSE OR RELATING IN ANY WAY TO HAZARDOUS SUBSTANCES
OR ANY ENVIRONMENTAL MATTERS, SUITABILITY OF SOIL OR GEOLOGY, ABSENCE OF DEFECTS OR HAZARDOUS OR TOXIC SUBSTANCES OR WASTE. PURCHASER
ACKNOWLEDGES AND REPRESENTS THAT PURCHASER IS ENTERING INTO THIS AGREEMENT WITHOUT RELYING UPON ANY SUCH STATEMENT, REPRESENTATION
OR WARRANTY MADE BY SELLER OR BY ANY AGENT OR ANY OTHER PERSON AND BASED SOLELY UPON PURCHASER’S OWN INSPECTIONS AND INVESTIGATIONS
OF THE PROPERTY. PURCHASER, FOR PURCHASER AND ITS SUCCESSORS AND ASSIGNS, HEREBY RELEASES SELLER FROM AND WAIVES ALL CLAIMS AND
LIABILITY AGAINST SELLER IN CONNECTION WITH OR ARISING OUT OF ANY PHYSICAL OR ENVIRONMENTAL CONDITION IN, AT, ABOUT OR UNDER THE
PROPERTY AND FURTHER RELEASES SELLER FROM AND WAIVES ALL CLAIMS AND LIABILITY AGAINST SELLER ATTRIBUTABLE TO THE PHYSICAL AND ENVIRONMENTAL
CONDITION AND QUALITY OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE PRESENCE, DISCOVERY OR REMOVAL OF ANY HAZARDOUS WASTE,
HAZARDOUS OR TOXIC SUBSTANCES, AS THOSE TERMS ARE DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY
ACT, THE TOXIC SUBSTANCES CONTROL ACT, AND THE RESOURCE CONSERVATION AND RECOVERY ACT, IN EACH CASE, AS AMENDED, AND AS MAY BE
FURTHER AMENDED FROM TIME TO TIME, OR ANY OTHER FEDERAL OR STATE LAWS OR REGULATIONS RELATING TO ENVIRONMENTAL MATTERS IN, AT,
ABOUT OR UNDER THE PROPERTY. ANYTHING HEREIN TO THE CONTRARY NOTWITHSTANDING, THE AGREEMENTS OF PURCHASER SET FORTH IN THIS PARAGRAPH
SHALL SURVIVE THE CLOSING AND SHALL BE ENFORCEABLE AT ANY TIME. Notwithstanding anything
herein to the contrary (including the foregoing release), (a) Purchaser shall have the right to defend (but Purchaser has no right
to assert, file or otherwise proceed with a contribution, indemnity or other claim against Seller) government and third-party claims
by alleging that Seller (or someone acting on Seller’s behalf), not Purchaser, is liable for such claims and Purchaser has
no obligation to indemnify Seller for governmental or third party claims asserted before or after the Closing as a result of any
act or omission taken or failed to be taken by or on Seller’s behalf prior to the Closing, and (b) the release shall not
apply to third-party tort claims relating to the Property and occurring during Seller’s ownership of the Property.

 

    	 	-16-	 

     

    

As used herein, the words “to the best of Seller’s knowledge”
or words of similar import shall mean and refer to the actual and not constructive knowledge, without investigation, of Charles
S. Roberts, Executive Vice President of the sole general partner of Seller, and not anything which he should have known but did
not actually know. Similarly, whenever this Article XII refers to a notice or communication having been received by Seller, the
same shall mean and refer to any written notice or communication actually received by Charles S. Roberts. Charles S. Roberts shall
have no personal liability whatsoever respecting of any Seller’s representations, warranties or covenants or the transaction
contemplated in this Agreement.

 

At the Closing, Seller shall execute and deliver a “Bring-Down
Certificate” with respect to the representations and warranties made by Seller in this Article XII stating either that such
representations and warranties remain true and correct in all material respects as of the Closing Date or stating any of such representations
and warranties which are no longer true and correct in all material respects as of the Closing Date. In the event that Seller’s
Bring-Down Certificate specifies that any of Seller’s representations and warranties are no longer true and correct as of
the Closing Date in any material respect, (i) if the representation and warranty has changed from the Effective Date to the Closing
Date not as a result of a default by Seller under this Agreement, Purchaser’s only rights in respect to such change in representation
and warranty shall be to either (a) waive such change and close and consummate the transaction contemplated herein without reduction
of the Purchase Price, or (b) terminate this Agreement and receive a refund of the Deposit, after which this Agreement shall be
null and void and of no further force or effect and neither Seller nor Purchaser shall have any further rights, duties, liabilities
or obligations to the other hereunder except for the Inspection Indemnity; or (ii) if the change in such representation and warranty
arises because of Seller’s default under this Agreement, Purchaser shall have its rights and remedies specified in Section
XI B hereof.

 

All representations and warranties made by Seller under this Article
XII shall survive the Closing for a period of ninety (90) days after the Closing after which such representations and warranties
shall be of no further force or effect; provided, however, that any claim based upon any alleged breach thereof, in order to be
enforceable, must be asserted by Purchaser in a writing provided to Seller within ninety (90) days after the Closing and a suit
commenced thereon within sixty (60) days after the date of Seller’s receipt of such notice or otherwise such representations and
warranties will be of no further force or effect.

 

    	 	-17-	 

     

    

ARTICLE XIII -- NOTICES

 

Whenever any
notice, demand, or request is required or permitted hereunder, such notice, demand or request shall be in writing and shall be
hand-delivered in person or sent by FedEx or similar national overnight delivery service, or via email in .pdf (with a follow up
copy by other means provided for herein), to the addresses set forth below:

 

To Purchaser:

 

Maple
Multi-Family Land SE, L.P.

3715
Northside Parkway

Suite
400, Suite 450

Atlanta,
GA 30327

Attention:
Mr. Leonard Wood

Email:
lwood@tcresidential.com

 

with
a copy to:

 

			James G. Farris, Jr., Esq.

Alston
& Bird

One
Atlantic Center

1201
West Peachtree Street

Atlanta,
GA 30309-3424

Email:
jay.farris@alston.com

 

			To Seller:

 

ACRE
Realty LP

399
Park Avenue

New
York, NY 10022

Attention:
Mr. Robert Gellert

Email:
bgellert@avenuecapital.com

 

With
a copy to:

 

ACRE
Realty LP

399
Park Avenue

New
York, NY 10022

Attention:
Mr. Greg Simon

Email:
gsimon@avenuecapital.com

 

    	 	-18-	 

     

    

With
a copy to:

 

Roberts
Properties, Inc.

375
Northridge Road

Suite
330

Atlanta,
GA 30350

Attention:
Mr. Charles S. Roberts

Email:
cr@robertsproperties.com

 

			And a copy to:

 

			Sanford H. Zatcoff, Esquire

			Holt Ney Zatcoff & Wasserman, LLP

			100 Galleria Parkway

			Suite 1800

			Atlanta, Georgia 30339

			Email: szatcoff@hnzw.com

 

To
Escrow Agent:

 

Fidelity National Title Group

5565 Glenridge Connector, Ste 300

Atlanta, GA 30342

Attn: C. Shane Rogers, Esq.

Email:
 shane.rogers@fntg.com

 

Any notice, demand, or request which
shall be served upon any of the parties in the manner aforesaid shall be deemed sufficiently given for all purposes hereunder (i) at
the time such notice, demand or request is hand-delivered in person, (ii) on the day such notices, demands or requests are
deposited with FedEx or similar national overnight delivery service in accordance with the preceding portion of this Article XIII;
or (iii) on the day such notices demands or request are emailed to the addresses set forth herein, provided a follow up copy
is sent by other means provided for herein. Any party hereto shall have the right from time to time to designate by written notice
to the others such other person or persons and at such other places in the United States as such party desires written notices,
demands, or requests to be delivered or sent in accordance herewith; provided, however, at no time shall either party be required
to send more than an original and two (2) copies of any such notice, demand or request required or permitted hereunder. Anything
contained in this Article XIII to the contrary notwithstanding, all notices from Seller and Purchaser may be executed and sent
by their respective counsel.

 

ARTICLE XIV -- SETTLEMENT ITEMS

 

In addition
to the items specifically mentioned in this Agreement to be delivered at the Closing, Seller shall deliver the following items
to Purchaser at the Closing: any sewer, water and other utility bills and tax and assessment bills any part of which is to be paid
by Purchaser, and a complete and accurate statement setting forth the necessary information upon which any adjustment or proration
shall be made at the Closing.

 

    	 	-19-	 

     

    

ARTICLE XV -- ACCESS

 

After giving
reasonable notice to Seller (which may be done orally), Purchaser and its agents and representatives shall have the right to enter
upon the Property at any reasonable time after the Effective Date and prior to the Closing Date for any lawful purpose, including
without limitation to conduct the due diligence tests; provided, however, (a) Purchaser shall pay for all such work performed on
the Property and shall not permit the creation of any lien in favor of any contractor, subcontractor, materialman, mechanic, surveyor,
architect or laborer and (b) Purchaser shall not perform any invasive testing for Hazardous Materials without the written permission
of Seller (but in no event shall Purchaser be prohibited for conducting invasive geotechnical testing that is not testing for Hazardous
Materials). Purchaser shall maintain, or shall ensure that its contractors maintain commercial general liability insurance in an
amount no less than $1,000,000.00 combined single limit for injury to or death of one or more persons in the occurrence, and for
damage to tangible property (including loss of use) in an occurrence, insuring Purchaser and the contractors and agents of Purchaser
against any liability arising out of or in connection with any entry upon or inspection of the Property and all areas appurtenant
thereto (and which insurance shall name Seller as an additional insured). Purchaser shall provide Seller with evidence of such
insurance coverage prior to any entry or inspection of the Property. Purchaser hereby expressly agrees to indemnify, defend and
hold Seller harmless against any claim, lien, damage or injury to either persons or property, and all costs and expenses related
thereto (including without limitation reasonable attorneys’ fees and costs), arising out of Purchaser’s or its agent’s or representative’s
actions under this Article XV. The indemnity and hold harmless provisions of this Article XV are herein referred to as the “Inspection
Indemnity”. In the event that Purchaser does not consummate the transaction contemplated in this Agreement, Purchaser
shall restore any damage or destruction caused to the Property by Purchaser. This Article XV shall survive the Closing of
the transaction contemplated herein or any termination of this Agreement.

 

ARTICLE XVI -- BROKER

 

Purchaser and
Seller hereby represent to each other that no real estate broker or agent was involved in negotiating the transaction contemplated
herein. In the event any claim(s) for real estate commissions, fees or compensation arise in connection with this Agreement and
the transaction contemplated herein, Purchaser and Seller further covenant and agree that the party so incurring or causing such
claim(s) shall indemnify, defend and hold harmless the other party from any loss, claim or damage which the other party suffers
because of said claim(s). This Article XVI shall survive the Closing of the transaction contemplated herein or any termination
of this Agreement.

 

    	 	-20-	 

     

    

ARTICLE XVII -- MISCELLANEOUS

 

      A.      This Agreement constitutes
the entire agreement between the parties hereto and cannot be changed or modified other than by a written agreement executed by
both Purchaser and Seller. This Agreement supersedes all previous agreements and understanding between the parties hereto with
respect to the subject matter hereof.

 

      B.      Irrespective of the place
of execution or performance, this Agreement shall be governed by and construed in accordance with the laws of the State of Georgia.
This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing
this Agreement to be drafted. If any words or phrases in this Agreement shall have been stricken out or otherwise eliminated, whether
or not any other words or phrases have been added, this Agreement shall be construed as if the words or phrases so stricken out
or otherwise eliminated were never included in this Agreement and no implication or inference shall be drawn from the fact that
said words or phrases were so stricken out or otherwise eliminated. All terms and words used in this Agreement regardless of the
number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require.
Time is of the essence of this Agreement and each and every provision contained herein.

 

      C.      This Agreement may be
executed in more than one counterpart, each of which shall be deemed an original. The parties agree that facsimile and email signatures
shall be sufficient to bind them hereto.

 

      D.      In the event that the
last day for performance of any matter herein falls on a Saturday, Sunday or legal holiday in Georgia, the time for performance
shall automatically be extended to the next Business Day. As used herein, a “Business Day” is any day
other than a Saturday, Sunday or legal holiday in Georgia.

 

      E.      If any term, covenant
or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable,
the remainder of this Agreement and the application of such terms, covenants and conditions to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant and condition of this
Agreement shall be valid and be enforced to the fullest extent permitted by law.

 

      F.      All rights, powers and
privileges conferred hereunder upon the parties unless otherwise provided shall be cumulative and not restricted to those given
by law.

 

      G.      No failure of any party
to exercise any power given such party hereunder or to insist upon strict compliance by any other party to its obligations hereunder,
and no custom or practice of the parties in variance with the terms hereof, shall constitute a waiver of any party’s right to demand
exact compliance with the terms hereof.

 

      H.      Purchaser reserves the
right to waive, in whole or in part, any condition or contingency herein which is for the Purchaser’s benefit.

 

    	 	-21-	 

     

    

      I.      The provisions of this
Agreement shall extend to, bind and inure to the benefit of the parties hereto and their respective heirs, executors, administrators,
successors, assigns and the legal representatives of their estates.

 

      J.      Notwithstanding any provisions
contained herein to the contrary, whether express or implied, Purchaser shall have the right to assign this Agreement to an affiliate
of Purchaser, but to no other party. If this Agreement is assigned, Purchaser shall give prompt written notice and a copy of such
assignment to Seller and thereafter any reference in this Agreement to Purchaser shall be deemed to refer to such assignee or assignees.

 

      K.      Seller and Purchaser each
shall have the right to consummate the transaction contemplated in this Agreement as part of an exchange of like-kind property
pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, and the Regulations promulgated thereunder. Seller and
Purchaser agree to cooperate with each other to effect such an exchange for Seller, Purchaser or both of them provided, however,
(i) the ability of a party to effect an exchange shall not be a condition precedent to that party’s obligations under this
Agreement, (ii) an exchange being effected by a party shall not result in any additional cost (other than a nominal cost) to the
other party; (iii) neither party shall be obligated to take title to any other real property in order to effect such an exchange
for the other party; (iv) no exchange shall delay the Closing Date; and (iv) any exchange being effected by a party shall be effected
by means of that party’s use of a qualified intermediary.

 

    	 	-22-	 

     

    

      L.      If
any dispute arises between Seller and Purchaser concerning this Agreement that results in litigation, mediation or arbitration,
then the prevailing party shall be reimbursed by the other party for any and all costs and expenses related to such dispute incurred
by such prevailing party, including, without limitation, court costs and reasonable attorneys’ fees and disbursements actually
incurred. This provision shall expressly survive the Closing or termination of this Agreement.

 

[Executions Commence On Next Page]

 

    	 	-23-	 

     

    

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed, sealed and delivered the day and year first above written.

 

	 	
        PURCHASER:

         

         

        MAPLE MULTI-FAMILY LAND SE, L.P., a Delaware limited partnership

         

        By:       Maple Multi-Family Development,
        L.L.C., a Texas limited liability company, its general partner

         

        By: /s/ Leonard Wood, Jr., Vice
        President

               Leonard Wood, Jr., Vice President

         

 

 

	 	
        SELLER:

         

        ACRE Realty LP, a Georgia limited partnership

         

        By:      ACRE Realty Investors, Inc.,
        a Georgia corporation, its sole general partner

         

         

              By: /s/ Robert Gellert,
        Executive Vice President

                     Robert Gellert, Executive
        Vice President

         

         

         

 

 

[Executions Continue On Next Page]

 

    	 	-24-	 

     

    

Fidelity National Title Group joins in the execution of this Agreement
under seal for the purpose of acknowledging the agreement as to the holding of the Deposit in escrow, as of the day and year first
above written.

 

	 	
        ESCROW AGENT:

         

        FIDELITY NATIONAL TITLE GROUP

         

         

        By: /s/ Shane Rogers

              Name: Shane Rogers

              Title: AVP

         

         

         

 

 

    	 	-25-	 

     

    

EXHIBIT A

 

ALL THAT TRACT of land in Land Lot
21 of the 17th District, Fulton County, Georgia, described as follows:

TO
FIND THE TRUE POINT OF BEGINNING, commence at the intersection of the northeast right-of-way line of Peachtree Dunwoody Road (variable
width right-of-way) with the south Land Lot Line of said Land Lot 21; running thence along the northeast right-of-way line of Peachtree
Dunwoody Road the following courses and distances: (1) along the arc of a curve to the left (which arc is subtended by a chord
having a bearing and distance of North 22 degrees 09 minutes 27 seconds West 166.68 feet and a radius of 646.11 feet) 167.15 feet
to a point, (2) North 29 degrees 34 minutes 06 seconds West 193.86 feet to a point, (3) North 48 degrees 07 minutes 32 seconds
West 52.89 feet to a 1/2-inch rebar found, and (4) North 81 degrees 17 minutes 17 seconds East 1.44 feet to a 5/8-inch rebar set
and the TRUE POINT OF BEGINNING; from the TRUE POINT OF BEGINNING as thus established, continuing thence along the northeast, east
and southeast right-of-way line of Peachtree Dunwoody Road and West Peachtree Dunwoody Road (variable width right-of-way) the following
courses and distances: (I) along the arc of a curve to the right (which arc is subtended by a chord having a bearing and distance
of North 25 degrees 59 minutes 35 seconds West 14.67 feet and a radius of 34.50 feet) 14.78 feet to a point, (2) North 13 degrees
43 minutes 09 seconds West 43.35 feet to a point, (3) along the arc of a curve to the left (which arc is subtended by a chord having
a bearing and distance of North 22 degrees 36 minutes 56 seconds West 17.17 feet and a radius of 55.50 feet) 17.24 feet to a point,
(4) North 31 degrees 30 minutes 44 seconds West 52.81 feet to a point, (5) North 33 degrees 18 minutes 09 seconds West 51.86 feet
to a point, (6) North 34 degrees 29 minutes 16 seconds West 54.88 feet to a point, (7) along the arc of a curve to the right (transitioning
into the east and southeast right-of-way line of West Peachtree Dunwoody Road) (which arc is subtended by a chord having a bearing
and distance of North 00 degrees 58 minutes 38 seconds East 208.72 feet and a radius of 294.18 feet) 213.37 feet to a point, (8)
North 21 degrees 45 minutes 19 seconds East 322.68 feet to a point, (9) along the arc of a curve to the left (which arc is subtended
by a chord having a bearing and distance of North 06 degrees 16 minutes 38 seconds East 190.22 feet and a radius of 356.39 feet)
192.55 feet to a point, (10) North 79 degrees 26 minutes 55 seconds East 2.42 feet to a point, (11) along the arc of a curve to
the right (which arc is subtended by a chord having a bearing and distance of North 37 degrees 13 minutes 45 seconds East 22.65
feet and a radius of 39.50 feet) 22.97 feet to a point, (12) along a reverse curve turning to the left (which arc is subtended
by a chord having a bearing and distance of North 26 degrees 57 minutes 42 seconds West 98.73 feet and a radius of 50.00 feet)
141.11 feet to a point, (13) along the arc of a curve to the left (which arc is subtended by a chord having a bearing and distance
of North 21 degrees 44 minutes 36 seconds West 43.41 feet and a radius of 574.98 feet) 43.42 feet to a point, (14) North 23 degrees
54 minutes 25 seconds West 50.41 feet to a point, (15) along the arc of a curve to the left (which arc is subtended by a chord
having a bearing and distance of North 28 degrees 01 minute 26 seconds West 61.91 feet and a radius of 431.13 feet) 61.96 feet
to a 5/8-inch rebar set; thence leaving said right-of-way line and running along the south, west and southwest boundary lines of
Hunters Crossing as per plat recorded in Plat Book 118, page 103, Fulton County, Georgia records, the following courses
and distances: (1) South 88 degrees 46 minutes 23 seconds East 237.27 feet to a 1/2-inch rebar found, (2) South 01 degree 31 minutes
07 seconds West 145.57 feet to a 5/8-inch rebar set, (3) South 29 degrees 40 minutes 45 seconds East 115.22 feet to a point, (4)
South 29 degrees 31 minutes 12 seconds East 414.75 feet to a 5/8-inch rebar set, and (5) South 01 degree 24 minutes 22 seconds
West 473.55 feet to a 1/2-inch rebar found; thence South 81 degrees 17 minutes 17 seconds West 427.29 feet to the TRUE POINT OF
BEGINNING, said tract containing approximately 9.696 acres as shown on plat of ALTA/ACSM Land Title Survey of North Springs Peachtree
Dunwoody Road prepared for Roberts Properties Residential, L.P., Wachovia Bank, National Association and Commonwealth Land Title
Insurance Company by LAI Engineering, bearing the seal and certification of Michael G. High, Georgia Registered Land Surveyor No.
2986, dated May 15, 2008, last revised June 3, 2008.

 

    	 

     

    

EXHIBIT B

 

		1.	General and special taxes and assessments for the year 2015 not
yet due and payable as of the Closing Date and subsequent years, not yet due and payable, subject to the proration provisions of
Article VII.

 

		2.	Easement contained in Right of Way Deed from Mrs. Crissey, J.H.S. Johnson,
John W. Eaves and Ralph H. Howard to Fulton County, dated October 7, 1963, filed April 13, 1964, recorded in Deed Book 4219,
page 572, Fulton County, Georgia records.

 

		3.	Easement contained in Right of Way Deed from Edwin M. Crissey, et al. to Fulton
County, dated February 22, 1964, filed November 27, 1964, recorded in Deed Book 4336, page 170, aforesaid records.

 

		4.	Easement from Edwin M. Crissey to Georgia Power Company, dated July 9, 1969,
recorded in Deed Book 5101, page 224, aforesaid records.

 

		5.	Sanitary sewer and drainage easement areas as shown on plat of Property of
John E. Didicher and Betty J. Didicher, filed December 19, 1978, recorded in Plat Book 114, page 66, aforesaid records.

 

		6.	Rights of others in and to the drainage ditch located in the northwesterly
portion of the subject property.

 

		7.	All matters disclosed on that certain ALTA/ACSM Land Title Survey for Roberts
Properties Residential, L.P., Wachovia Bank, National Association and Fidelity National Title Insurance Company prepared
by Michael G. High, Georgia Registered Land Surveyor No. 2986 of LAI Engineering, dated May 15, 2008, last revised June 3, 2008,
last revised June 3, 2008, and such state of facts occurring after June 3, 2008 as would be disclosed by a current, accurate survey
and inspection of the real property herein described.

 

		8.	Easement set forth in Right of Way
Deed from Roberts Properties Residential, L.P. to Fulton County, dated November 21, 2005, filed December 15, 2005, recorded in
Deed Book 41548, page 261, aforesaid records.

 

		9.	Easement from Roberts Properties Residential, L.P., a Georgia limited partnership, to Fulton County,
dated February 5, 2010, filed June 16, 2010, recorded in Deed Book 49109, page 250, aforesaid records.

 

		10.	All zoning and other land use laws, regulations and codes.

 

    	 

     

    

EXHIBIT C

 

form
of limited warranty deed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After recording please return to:

___________________

_________________

___________________

____________________

 

LIMITED WARRANTY DEED

 

 

STATE OF                                        

 

COUNTY OF                                    

 

 

      THIS INDENTURE, is made the ____ day of __________, 2015, between
___________________, a              (the “Grantor”), and       , a              (the “Grantee”)
(the words “Grantor” and “Grantee” include all genders, plural and singular, and their respective
heirs, successors and assigns where the context requires or permits).

 

W I T N E S S E T H: That

 

      Grantor, for and in consideration of the sum of Ten and No/100
Dollars ($10.00) and other good and valuable consideration, in hand paid at and before the sealing and delivery of these presents,
the receipt whereof is hereby acknowledged, has granted, bargained, sold, aliened, conveyed and confirmed, and by these presents
does grant, bargain, sell, alien, convey and confirm unto the said Grantee, all that tract of land in        County, Georgia,
described on Exhibit A attached hereto and made a part hereof.

 

TO HAVE AND TO HOLD the said tract or parcel
of land, with all and singular the rights, members and appurtenances thereof, to the same being, belonging or in anywise appertaining,
to the only proper use, benefit and behoof of the said Grantee forever in FEE SIMPLE.

 

    	 

     

    

AND THE SAID Grantor will warrant and forever
defend the right and title to the above described property unto the said Grantee against the claims of all persons owning, holding
or claiming by, through or under the said Grantor, but not otherwise and subject, however, to those matters set forth on Exhibit B
attached hereto and made a part hereof without reimposing the same.

 

IN WITNESS WHEREOF, Grantor has caused this
Limited Warranty Deed to be signed, sealed and delivered as of the day and year first above written.

 

 

	
        Signed, sealed and delivered in the

        presence of:

         

        _______________________________

        Unofficial Witness

         

        _______________________________

        Notary Public

         

                 (NOTARY SEAL)

         

        My Commission Expires:

         
	
        _________________________________________,

        a                                              

         

         

        By:                                                         

              Name:                                              

              Title:                                                

         

 

    	 

     

    

EXHIBIT
D

 

AFFIDAVIT OF TITLE 

 

 

STATE OF GEORGIA

 

COUNTY OF _______________

 

 

The undersigned deponent , Robert Gellert,
in his capacity as an Executive Vice President of ACRE Realty Investors, Inc., the general partner of ACRE Realty LP (“Deponent”),
having personally appeared before the undersigned notary public and first having been duly sworn according to law, deposes and
says under oath to the best of his personal knowledge in such capacity as follows:

 

      1.      Deponent is the ____________________
of ________________________________ (the “Owner”), the owner of certain real estate, a description of which is set forth
on Exhibit A attached hereto and made a part hereof, together with all easements and appurtenances related thereto
(collectively, the “Property”).

 

      2.      The Owner is in possession of
the Property, and, to Deponent’s knowledge there are no leases or tenancies affecting the Property and Deponent knows of no one
claiming any adverse interest in the Property whatsoever.

 

      3.      To Deponent’s knowledge and
except as revealed in the public records in the county where the Property is located, there are no suits, judgments, bankruptcies
or executions pending against the Owner in any court whatsoever that could in any way affect the title to the Property, or constitute
a lien thereon, nor are there any loan deeds, security deeds, trust deeds, mortgages or liens of any nature whatsoever unsatisfied
against the Property, or easements, licenses, agreements or other encumbrances affecting the title to the Property, except as revealed
in the public records.

 

      4.      No improvements or repairs have
been made to the Property at the request of Owner during the one hundred (100) days immediately preceding the date hereof other
than in connection with routine maintenance and there are no outstanding bills incurred for labor, services and materials used
in making improvements or repairs on the Property or for services of architects, surveyors or engineers.

 

      5.      To Deponent’s knowledge and
except as revealed in the public records of the county where the Property is located, there are no liens for past due taxes or
assessments of any nature, for any paving, sidewalk, curbing, sewer or any other street improvements of any kind against the Property
or the Owner.

 

    	 

     

    

      6.      All water bills in respect of
the Property received by Owner as of the date hereof have been paid in full.

 

      7.      Owner
has not entered into any written agreement with, or otherwise engaged the services of, any commercial real estate broker for the
payment of a real estate commission or fee relating to the purchase, sale, management, leasing or other licensed services pertaining
to Commercial Real Estate (as defined in O.C.G.A. § 44-14-601(3)) in respect of
the Property, and Owner has received no notice of any lien for any such services. 

 

      8.      This affidavit is made to induce
Chicago Title Insurance Company to issue its owner’s policy insuring ________________________________ in the amount of the purchase
price of the Property; and to induce the attorney certifying title so to certify.

 

 

	
        Sworn to and subscribed before me,

        this ____ day of ___________, 2015.

         

         

        ___________________________

        Notary Public

         

        (NOTARY SEAL)

         

        My Commission Expires:

         

        ___________________

         
	
        ACRE Realty LP, a Georgia limited partnership

         

        By:      ACRE Realty Investors, Inc.,
        a Georgia corporation, its sole general partner

         

         

              By: ___________________________

               Robert Gellert, Executive
        Vice President

         

         

 

    	 

     

    

EXHIBIT E

 

Preliminary
Site Plan

 

    	 

     

    
 

 

sales contract

by and between

 

ACRE REALTY LP,

as Seller

 

and

 

 

MAPLE MULTI-FAMILY LAND SE, L.P., 

as Purchaser

 

    	 

     

    

TABLE
OF CONTENTS

 

	ARTICLE I -- PROPERTY TO BE CONVEYED	1
	ARTICLE II -- PURCHASE PRICE	1
	ARTICLE III -- TITLE AND
    SURVEY OBJECTIONS	4
	ARTICLE IV -- ITEMS TO BE DELIVERED BY SELLER AT CLOSING	6
	ARTICLE V -- ITEMS TO BE DELIVERED BY PURCHASER AT CLOSING	8
	ARTICLE VI - SELLER’S DELIVERY OF DOCUMENTS	8
	ARTICLE VII -- APPORTIONMENTS	9
	ARTICLE VIII -- TIME AND PLACE OF CLOSING AND CLOSING COSTS	9
	ARTICLE IX--  CONDITIONS PRECEDENT	10
	ARTICLE X -- EMINENT DOMAIN	12
	ARTICLE XI -- REMEDIES	13
	ARTICLE XII - SELLER’S REPRESENTATIONS,	13
	ARTICLE XIII -- NOTICES	19
	ARTICLE XIV -- SETTLEMENT ITEMS	21
	ARTICLE XV -- ACCESS	21
	ARTICLE XVI -- BROKER	22
	ARTICLE XVII -- MISCELLANEOUS	22

 

EXHIBITS

EXHIBIT A – Legal Description

EXHIBIT B – Permitted Exceptions

EXHIBIT C – Limited Warranty Deed

EXHIBIT D – Affidavit of Title

EXHIBIT E – Site Plan

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