Under a settlement agreement, Mr. Eveleigh has agreed to accept one-half of the severance payment of $450,000 in six equal instalments of $75,000 payable every six months, with the first instalment due on June 1, 2018, and the last instalment due on December 31, 2020. Mr. Eveleigh has entered into a new employment agreement to serve as President of the Company effective immediately (the “New Employment Agreement”) with a base salary of $225,000, being the same salary as the Original Employment Agreement. Pursuant to the New Employment Agreement, upon termination of the agreement by Mr. Eveleigh for any reason or by the Company for any reason, Mr. Eveleigh is entitled to receive the remaining severance payment of $450,000 in six equal instalments of $75,000 payable every six months, to commence no earlier than June 30, 2021. Under these agreements, the Company is entitled to offer Mr. Eveleigh the right to accept the payment of an instalment in shares of the Company valued at market price at the time in accordance with the Policies of the TSXV Venture Exchange. If an instalment is not paid under the settlement agreement, the remaining balance of the $900,000 severance amount becomes due and payable.