GOWGANDA WEST

Ownership and Royalties

iMetal has almost completed acquiring a 100% interest in the Gowganda West property. Only one more payment is due at the end of 2019. That payment is $50,000 in cash.

The entire Gowganda West property covers more than 145 km2. Of that block, 20 km2 are covered by this agreement and subject to a 3% Net Smelter Return Royalty payable to the original owners/vendors. One half (1.5%) of the 3% NSR can be purchased back for $1 million up until the end of the 3-year term of the agreement.

The balance of the property (except only the optioned Mosher Lake claims in the northeast quadrant of the property) were acquired through staking whereby iMetal has a 100% interest in it.

The northern portion of the Gowganda West property is covered by the Mosher Lake Option Agreement. The terms of this agreement have now been met and iMetal now holds a 97% interest. Similar to the 20km2 of the Gowganda west portion the ownership is subject to a 3% NSR.