• Ground floor opportunity in a brand new Lundin exploration vehicle
• Experienced, successful team backed by some of the most successful resource investors in the world
• Strong network to source new opportunities
• Los Helados- Exposure to rising copper and gold prices through ownership of a strategic resource in an operating mining district

Q2 2021 OPERATING HIGHLIGHTS AND OUTLOOK

During the second quarter of 2021, the Company continued its business development initiatives, with the objective of adding a quality asset to complement its current exploration portfolio. As of the date of this MD&A, no discussions with counterparties have progressed to the execution of contractual agreements, and the Company continues to be patient and diligent in its search for its next cornerstone asset. While at any given time discussions and activities may be in progress on a number of these potential acquisition targets, there is no assurance that these corporate activities will ever progress to the stage where a potential acquisition might be successfully completed.

In addition, during the second quarter of 2021, the Company began planning a field and drill program at its Valle Ancho Project, located in the Argentine Province of Catamarca. The Company is party to an option agreement with the Province of Catamarca, whereby it may earn a 100% interest in Valle Ancho by making US$8.2 million in total project expenditures by the end of 2022. As of the date of this MD&A, approximately US$6.5 million remains to be spent on the earn-in, which the Company intends to meet with an exploration campaign commencing in the third quarter of 2021. The 2021/2022 campaign will include airborne geophysics as well as diamond drilling to test several targets including following up on unverified, historical drill intersections from the 1990's, including 62 metres at 1.0 g/t gold and 108 metres at 1.0 g/t gold.

The Valle Ancho Project consists of a significant land package, covering approximately 1,000 km² of underexplored and highly prospective ground, located on the Argentine side of Chile's renowned Maricunga Gold Belt. An initial exploration program was undertaken at Valle Ancho during the 2019/2020 field season, which consisted of a review of historical data, mapping and surface sampling, and the undertaking of an airborne geophysical survey over the project area to identify, develop and prioritize targets for further evaluation. The 2019/2020 field program was successful in outlining a number of targets for further work including: two large targets with outcropping porphyry copper mineralization, two targets with outcropping epithermal gold mineralization; and a copper skarn target.

As the Company continues to monitor developments with respect to COVID-19, both globally and within its operating jurisdictions, it may implement changes to its business as may be deemed appropriate to mitigate any potential impacts to its business and its employees, contractors, visitors, and stakeholders (collectively, "Stakeholders"). Such changes may include, but are not limited to, temporary closures of the Company's project sites or offices, and deviations from the timing and nature of previous operating plans. Moreover, sustained COVID-19 outbreaks globally have resulted in operational and supply chain delays and disruption as a result of governmental regulation and preventative measures being implemented worldwide, including in Argentina and Chile. The Company could also be required to close, curtail or otherwise limit its operating activities as a result of the implementation of any such governmental regulation or preventative measures in the jurisdictions in which the Company operates, or as a result of sustained COVID-19 outbreaks at its project site or facilities. Any such closures or curtailments could have an adverse impact on the business of the Company. All non-critical business travel continues to be curtailed and this has delayed site visits related to the Company's review of potential business development targets.