<SEC-DOCUMENT>0001477932-19-004451.txt : 20190801
<SEC-HEADER>0001477932-19-004451.hdr.sgml : 20190801
<ACCEPTANCE-DATETIME>20190801115448
ACCESSION NUMBER:		0001477932-19-004451
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20190730
FILED AS OF DATE:		20190801
DATE AS OF CHANGE:		20190801

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AVINO SILVER & GOLD MINES LTD
		CENTRAL INDEX KEY:			0000316888
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35254
		FILM NUMBER:		19991712

	BUSINESS ADDRESS:	
		STREET 1:		570 GRANVILLE STREET
		STREET 2:		SUITE 900
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 3P1
		BUSINESS PHONE:		6046823701

	MAIL ADDRESS:	
		STREET 1:		570 GRANVILLE STREET
		STREET 2:		SUITE 900
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 3P1

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL AVINO MINES LTD
		DATE OF NAME CHANGE:	19950607

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AVINO MINES & RESOURCES LTD
		DATE OF NAME CHANGE:	19950607
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>avino_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<html><head><title>avino_6k.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="center"><table style="FONT-SIZE: 1px" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td><div style="HEIGHT: 4px; WIDTH: 100%; BACKGROUND: #000000; MARGIN: 0px 0px 2px" name="hrule"></div><div style="HEIGHT: 2px; WIDTH: 100%; BACKGROUND: #000000" name="hrule"></div></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><font size="3"><b>UNITED STATES</b></font></p><p style="MARGIN: 0px" align="center"><font size="3"><b>SECURITIES AND EXCHANGE COMMISSION</b></font></p><p style="MARGIN: 0px" align="center"><font size="3"><b>Washington, D.C. 20549</b></font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><font size="5">FORM 6-K</font></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16</b></p><p style="MARGIN: 0px" align="center"><b>UNDER THE SECURITIES EXCHANGE ACT OF 1934</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center">For the Month of <b>July 2019</b></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">Commission File Number: <b>001-35254</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="1" cellpadding="0" width="60%" align="center" bgcolor="#ffffff" border="0"><tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center"><font size="5"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></font></p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><u>Suite 900, 570 Granville Street, Vancouver, BC V6C 3P1</u></b></p><p style="MARGIN: 0px" align="center">(Address of principal executive offices)</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. <font face="Wingdings">x </font>Form 20-F&nbsp;&nbsp;&nbsp; <font style="FONT-FAMILY: Wingdings">&#168; </font>Form 40-F</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): <font style="FONT-FAMILY: Wingdings">&#168;</font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): <font style="FONT-FAMILY: Wingdings">&#168;</font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="FONT-SIZE: 1px" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td><div style="HEIGHT: 2px; WIDTH: 100%; BACKGROUND: #000000; MARGIN: 0px 0px 2px" name="hrule"></div><div style="HEIGHT: 4px; WIDTH: 100%; BACKGROUND: #000000" name="hrule"></div></td></tr></table></p><p style="MARGIN: 0px"><table class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td>&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">On July 24, 2019, Avino Silver &amp; Gold Mines Ltd. (&#8220;Avino&#8221; or the &#8220;Company&#8221;) entered into an engagement letter dated July 24, 2019, with Cantor Fitzgerald Canada Corporation, to purchase, on a bought deal basis, 4,706,000 common shares of the Company (the &#8220;Common Shares&#8221;) at the price of CDN$0.85 per Common Share (the &#8220;CS Issue Price&#8221;) for aggregate gross proceeds of approximately CDN$4.0 million, and an additional 2,020,400 flow-through common shares (the &#8220;FT Shares&#8221;) at the price of CDN$0.99 per FT Share (the &#8220;FT Issue Price&#8221;) for additional gross proceeds of approximately CDN$2.0 million (the &#8220;Offering&#8221;). The Common Shares and FT Shares are collectively referred to as (the &#8220;Offered Securities&#8221;). The Offering was made only in Canada, and such other jurisdictions where the Offered Securities may be lawfully sold.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">In addition, the Company has granted to Cantor an over-allotment option (the &#8220;Over-Allotment Option&#8221;) exercisable, in whole or in part, in the sole discretion of Cantor, to purchase up to an additional 705,900 Common Shares at the CS Issue Price, and up to an additional 303,060 FT Shares at the FT Issue Price, for a period of up to 30 days after the closing of the Offering (the &#8220;Closing Date&#8221;) for additional aggregate proceeds to the Company of approximately CDN$900,000.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">Only July 30, 2019, the Company announced that it has closed the bought deal financing with Cantor for the issuance of a total of 7,735,360 common shares of the Company for aggregate gross proceeds of $6,900,340, consisting of 5,411,900 Common Shares at the issue price of CDN$0.85 per Common Share, and 2,323,460 common shares which qualify as &#8220;flow-through shares&#8221; at the issue price of CDN$0.99 per FT Share. </p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">Cantor has fully exercised its over-allotment option to purchase 705,900 Common Shares and 303,060 FT Shares (which are included in the gross proceeds above). Cantor received a cash commission of 7.0% of the gross proceeds raised, as well as the issuance of share purchase warrants exercisable to purchase up to 464,122 Common Shares at CDN$0.85 per share until July 30, 2020.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">The Company intends to use the net proceeds of the Offering to advance the exploration and development of the Company&#8217;s Avino Mine, in particular further exploration of the Hanging Wall area, and further exploration and development activities on the Bralorne Mine property in British Columbia, and for general working capital. . </p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">The Offering was made by way of prospectus supplements dated July 25, 2019 to the Company&#8217;s existing Canadian short form base shelf prospectus (the &#8220;Base Shelf Prospectus&#8221;) dated December 21, 2018. The prospectus supplement relating to the Offering (together with the Base Shelf Prospectus, the &#8220;Offering Documents&#8221;) was filed with the securities commissions in all of the provinces of Canada , except Quebec. The Offering Documents are attached hereto as exhibits and are being provided for informational purposes only. </p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">In accordance with General Instruction B of Form 6-K, the Exhibit Information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Exhibits:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr bgcolor="#cceeff"><td valign="top" width="8%"><a href="avino_ex991.htm">99.1</a></td><td width="2%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><a href="avino_ex991.htm">Prospectus Supplement related to Common Shares and Flow-Through Shares</a></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr bgcolor="#cceeff"><td valign="top"><a href="avino_ex992.htm">99.2</a></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><a href="avino_ex992.htm">Underwriting Agreement</a></td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak8e8726a0-c3c3-4f08-ab6a-b288fd720f15" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center">2</p></td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>Signatures</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td>&nbsp;</td><td colspan="2"><p style="MARGIN: 0px"><b>Avino Silver &amp; Gold Mines, Ltd.</b></p></td><td></td></tr><tr><td width="50%">&nbsp;</td><td width="3%">&nbsp;</td><td width="35%">&nbsp;</td><td width="12%">&nbsp;</td></tr><tr><td>Date: July 30, 2019</td><td>By:</td><td style="BORDER-BOTTOM: black 1px solid"><em>/s/ Nathan Harte</em></td><td></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Nathan Harte</p></td><td>&nbsp;</td></tr><tr><td>&nbsp;</td><td>&nbsp;</td><td><p style="MARGIN: 0px">Chief Financial Officer</p></td><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="1" cellpadding="0" width="100%" align="center" border="0"><tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center">3</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></BODY><!--Document Created by EDGARMaster--></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>avino_ex991.htm
<DESCRIPTION>PROSPECTUS SUPPLEMENT
<TEXT>
<html><head><title>avino_ex991.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 99.1</b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise.</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>This prospectus supplement (the </i>&#8220;<b><i>Prospectus Supplement</i></b><i>&#8221;), together with the accompanying short form base shelf prospectus dated December 21, 2018 (the &#8220;<b>Prospectus</b>&#8221;) to which it relates and each document incorporated or deemed to be incorporated by reference into this Prospectus Supplement and the accompanying Prospectus, constitutes a public offering of these securities only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such securities.</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Information has been incorporated by reference in this Prospectus Supplement and Prospectus to which it relates from documents filed with securities commissions or similar authorities in Canada. </i></b><i>Copies of the documents incorporated herein by reference may be obtained on request without charge from the Chief Financial Officer of Avino Silver &amp; Gold Mines Ltd. at Suite 900 &#8211; 570 Granville Street, Vancouver, British Columbia, V6C 3P1, telephone: (604) 682-3701, and are also available electronically at www.sedar.com.</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>PROSPECTUS SUPPLEMENT</b></p><p style="MARGIN: 0px" align="center"><b>TO THE SHORT FORM BASE SHELF PROSPECTUS DATED DECEMBER 21, 2018</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0"><tr><td width="45%"><p style="MARGIN: 0px"><u><em>New Issue</em> </u></p></td><td width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td width="45%"><p style="MARGIN: 0px" align="right">July 25, 2019</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><img src="avino_ex991img1.jpg"></p><p style="MARGIN: 0px" align="center"><font size="2"></font>&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><font size="3">AVINO SILVER &amp; GOLD MINES LTD.</font></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>$4,000,100</b></p><p style="MARGIN: 0px" align="center"><b>Common Shares</b></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>and</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>$2,000,196</b></p><p style="MARGIN: 0px" align="center"><b>Flow-Through Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement, together with the Prospectus, of Avino Silver &amp; Gold Mines Ltd. (&#8220;<b>Avino</b>&#8221; or the &#8220;<b>Corporation</b>&#8221;) qualifies the distribution (the &#8220;<b>Offering</b>&#8221;) of (i) 4,706,000 common shares (&#8220;<b>Common Shares</b>&#8221;) at a price of $0.85 per Common Share (the &#8220;<b>Common Share Offering Price</b>&#8221;); and (ii) 2,020,400 common shares of the Corporation that qualify as &#8220;flow-through shares&#8221; for the purposes of the <i>Income Tax Act (Canada)</i> (the &#8220;<b>FT Shares</b>&#8221; or &#8220;<b>Flow-Through Shares</b>&#8221; and together with the Common Shares, the &#8220;<b>Offered Shares</b>&#8221;) at a price of $0.99 per FT Share (the &#8220;<b>FT Share Offering Price</b>&#8221;). This Offering is made pursuant to an underwriting agreement dated July 25, 2019 (the &#8220;<b>Underwriting Agreement</b>&#8221;) between the Corporation and Cantor Fitzgerald Canada Corporation, as sole bookrunner and sole underwriter (the &#8220;<b>Underwriter</b>&#8221;) pursuant to which the Offered Shares will be offered for sale in all of the provinces of Canada, except Quebec, through the Underwriter in accordance with the terms of the Underwriting Agreement. Each FT Share will be a Common Share that qualifies as a &#8220;flow-through share&#8221; within the meaning of the <i>Income Tax Act</i> (Canada) and the regulations thereunder (the &#8220;<b>Tax Act</b>&#8221;). The Corporation will undertake to incur sufficient Canadian exploration expenses (&#8220;<b>CEE</b>&#8221;) as defined under the Tax Act, such Canadian exploration expenses to also qualify as &#8220;flow-through mining expenditures&#8217; as defined in subsection 127(9) of the Tax Act and subsection 4.721(1) of the BC Tax Act (as that term is defined herein), on or before December 31, 2020, so as to enable the Corporation to renounce, effective on or before December 31, 2019 in favour of the subscribers of the FT Shares, an amount equal to the aggregate FT Share Offering Price for the FT Shares issued pursuant to the Offering. See &#8220;<i>Plan of Distribution</i>&#8221; and &#8220;<i>Certain Canadian Income Tax Considerations</i>&#8221; for more details.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakf9d80c1d-4a20-468a-a427-8fdaf568102c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">i</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>Price to the</b></p><p style="MARGIN: 0px" align="center"><b>Public<sup>(1)</sup></b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>Underwriter&#8217;s</b></p><b>Commission<sup>(2)</sup></b></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>Net Proceeds</b></p><p style="MARGIN: 0px" align="center"><b>to&nbsp;</b><b><b>the </b>Corporation<sup>(3)(4)</sup></b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Per Common Share</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.85</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.0595</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.7905</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">Per FT Share</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.99</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.0693</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.9207</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Total Offering</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">6,000,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">420,021</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">5,580,275</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><p style="MARGIN: 0px">___________</p><p style="MARGIN: 0px" align="justify"><sup>(1) </sup>The Common Share Offering Price and FT Share Offering Price were determined by arm&#8217;s length negotiation between the Corporation and the Underwriter with reference to the prevailing market price of the Common Shares.</p><p style="MARGIN: 0px" align="justify"><sup>(2) </sup>The Corporation has agreed to pay the Underwriter a cash fee equal to 7.0% of the gross proceeds of the Offering (the &#8220;<b>Underwriting Fee</b>&#8221;), including the sale of any Additional Shares (as defined herein) sold pursuant to the Over-Allotment Option (as defined herein), and reimburse the Underwriter for their expenses in connection with the Offering up to a maximum of $125,000. The Corporation has also agreed to issue to the Underwriter, Common Share purchase warrants (the &#8220;<b>Compensation Warrants</b>&#8221;) equal to 6.0% of the Offered Shares sold, exercisable at the Common Share Offering Price for a period of 12 months from the Closing Date. </p><p style="MARGIN: 0px" align="justify"><sup>(3) </sup>After deducting the Underwriting Fee, but before deducting the total expenses of the Offering (including listing fees), estimated to be $255,000, which will be paid from the proceeds of the Common Shares issued pursuant to the Offering.</p><p style="MARGIN: 0px" align="justify"><sup>(4) </sup>The foregoing calculation of the net proceeds to the Corporation is illustrative only. The Underwriting Fee will be paid out of the gross proceeds of the Common Shares. The Corporation will receive the gross proceeds from the issuance of the FT Shares</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has granted the Underwriter an over-allotment option (the &#8220;<b>Over-Allotment Option</b>&#8221;), exercisable in whole or in part in the sole discretion of the Underwriter for a period of 30 days following the Closing Date (as defined below), to purchase up to an additional 15% of the Common Shares sold at the Common Share Offering Price (the &#8220;<b>Additional Common Shares</b>&#8221;) and up to an additional 15% of the FT Shares sold at the FT Share Offering Price (the &#8220;<b>Additional FT Shares</b>&#8221;, and together with the Additional Common Shares, the &#8220;<b>Additional Shares</b>&#8221;), to cover over-allotments, if any, and for market stabilization purposes. If the Over-Allotment Option is exercised in full, the total number of Offered Shares sold pursuant to the Offering will be 7,735,360, the total price to the public will be $6,900,340, the total Underwriting Fee will be $483,024, and the net proceeds to the Corporation, after deducting the additional Underwriting Fee attributable to such Additional Shares from the gross proceeds of the Additional Shares and before deducting the estimated expenses of the Offering, will be $6,417,316. This Prospectus Supplement also qualifies the grant of the Over-Allotment Option and the distribution of the Additional Shares to be issued and sold upon exercise of the Over-Allotment Option. See &#8220;<i>Plan of Distribution</i>&#8221;. A purchaser who acquires Additional Shares forming part of the Underwriter&#8217;s over-allocation position acquires those securities under this Prospectus Supplement, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following table sets out the number of Additional Shares that may be issued by the Corporation to the Underwriter:</p><p style="MARGIN: 0px">&nbsp;</p><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" bgcolor="#ffffff" border="0"><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center"><b>Underwriter&#8217;s Position</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center"><b>Maximum Size</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center"><b>Exercise Period</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center"><b>Exercise Price</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" rowspan="2"><p style="MARGIN: 0px">Over-Allotment Option:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">705,900 Additional Common Shares</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">Exercisable for a period of 30 days following the Closing Date</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">$0.85 per Additional Common Share</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">303,060 Additional FT Shares</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">Exercisable for a period of 30 days following the Closing Date</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">$0.99 per Additional FT Share</p><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px">Compensation Warrants:</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">464,122 Common Shares</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">Exercisable for a period of 12 months following the Closing Date</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">$0.85 per Common Share</p><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px 0px 0px 30px">Total:</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN: 0px" align="center">1,473,082 Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Unless the context otherwise requires, all references to the &#8220;<b>Offering</b>&#8221; in this Prospectus Supplement shall include the Over-Allotment Option, all references to &#8220;<b>Offered Shares</b>&#8221; shall include the Additional Shares, and all references to &#8220;<b>Common Shares</b>&#8221; or &#8220;<b>FT Shares</b>&#8221; shall include the Additional Common Shares or Additional FT Shares, respectively, which comprise the Additional Shares. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Underwriter, as principal, conditionally offer the Offered Shares subject to prior sale if, as and when issued by the Corporation and accepted by the Underwriter in accordance with the conditions contained in the Underwriting Agreement referred to under &#8220;Plan of Distribution&#8221;, and subject to the approval on behalf of the Corporation by Harper Grey LLP, with respect to Canadian legal matters, and by Lewis Brisbois Bisgaard &amp; Smith LLP, with respect to U.S. legal matters; and on behalf of the Underwriter by Stikeman Elliott LLP with respect to Canadian legal matters and Cooley LLP with respect to U.S. legal matters.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In connection with the Offering, subject to applicable laws, the Underwriter may over-allot or effect transactions that stabilize or maintain the market price of the Common Shares at levels other than those which might prevail on the open market. Such transactions, if commenced, may be discontinued at any time (see &#8220;<i>Plan of Distribution&#8221;</i>).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaka736284e-3b90-4281-8b98-cbdca0edf73e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">ii</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Subscriptions for the Offered Shares will be received subject to rejection in whole or in part and the Corporation reserves the right to close the subscription books at any time without notice. The closing of the Offering is expected to occur on or about July 30, 2019 (the &#8220;<b>Closing Date</b>&#8221;). It is anticipated that the Offered Shares will be issued in &#8220;book-entry only&#8221; form and represented by a global certificate or certificates, or be represented by uncertificated securities, registered in the name of CDS Clearing and Depositary Services Inc. (&#8220;<b>CDS</b>&#8221;) or its nominee, as directed by the Underwriter, and will be deposited with CDS. Except in limited circumstances, no beneficial holder of the Offered Shares will receive definitive certificates representing their interest in the Offered Shares. Beneficial holders of the Offered Shares will receive only a customer confirmation from the Underwriter, or another registered dealer who is a CDS participant, and from or through whom a beneficial interest in the Offered Shares is acquired. If any Offered Shares are not able to be issued in &#8220;book-entry only&#8221; form through CDS in advance of the Closing Date for any reason, then those investors or their designated holders will receive definitive certificates representing their interests in such Offered Shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The Underwriter proposes to offer, either directly or through its Canadian broker-dealer affiliates or underwriters, the Common Shares at the Common Share Offering Price, and either directly or through its broker-dealer affiliates or underwriters, the FT Shares at the FT Share Offering Price.</b> <b>After the Underwriter has made reasonable efforts to sell all of the Offered Shares at the offering prices, the offering prices may be decreased and further changed from time to time, to an amount not greater than the FT Share Offering Price. The compensation realized by the Underwriter may be decreased to the extent that the aggregate price paid by the purchasers for the Offered Shares is less than the gross proceeds paid by the Underwriter to the Corporation. See &#8220;<i>Plan of Distribution</i>&#8221;.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The outstanding Common Shares of the Corporation are listed for trading on the Toronto Stock Exchange (&#8220;<b>TSX</b>&#8221;) and on the NYSE American LLC (&#8220;<b>NYSE American</b>&#8221;) under the symbol &#8220;ASM&#8221;. On July 24, 2019, the last trading day before the filing of this Prospectus Supplement, the closing trading price of the Common Shares on the TSX was $1.06 per Common Share and the closing trading price of the Common Shares on the NYSE American was US$0.80 per Common Share. The Corporation has applied to the TSX to conditionally list the Offered Shares, such listing will be subject to the Corporation fulfilling all of the listing requirements of the TSX. The NYSE American has authorized, upon official notice of issuance, the listing of the Offered Shares offered hereunder.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The Underwriter is registered as a broker or investment dealer in Canada and, accordingly, it will only sell the Offered Shares in Canada or in other jurisdictions where they may be lawfully sold. FT Shares will only be sold in Canada to Canadian subscribers, pursuant to one or more subscription agreements for FT Shares to be entered into between the Corporation and each of the subscribers of FT Shares. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The purchase of Offered Shares involves significant risks that should be considered carefully by prospective purchasers. Before buying any Offered Shares, prospective purchasers should read &#8220;Risk Factors&#8221; in the Prospectus Supplement and the Prospectus and the risk factors in the Corporation&#8217;s AIF and Annual MD&amp;A and Interim MD&amp;A, which are incorporated herein and therein by reference, for a description of risks involved in an investment in the Offered Shares. This Prospectus Supplement should be read in conjunction with and may not be delivered or utilized without the Prospectus.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The Corporation is a Canadian issuer that is permitted to prepare this Prospectus Supplement and the Prospectus in accordance with Canadian disclosure requirements. Prospective investors should be aware that such requirements are different from those applicable to reporting issuers in the United States. Financial statements incorporated herein by reference have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and may not be comparable to financial statements of United States companies. The Corporation&#8217;s financial statements are subject to Canadian generally accepted auditing standards and auditor independence standards, in addition to the standards of the Public Company Accounting Oversight Board (United States) and the Securities and Exchange Commission (&#8220;SEC&#8221;) independence standards. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Prospective investors should be aware that the acquisition, holding or disposition of the Offered Shares may have tax consequences. Prospective investors should read the tax discussion contained in this Prospectus Supplement under the headings &#8220;<i>Certain Canadian Federal Income Tax Considerations</i>&#8221; and should consult their own tax advisor with respect to their own particular circumstances.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The enforcement of judgments obtained in Canada and by investors of civil liabilities under applicable securities laws may be affected adversely by the fact that the Corporation is existing under and governed by the laws of the province of British Columbia and the federal laws of Canada, that some or all of the Corporation&#8217;s officers and directors are residents of Canada, and that a substantial portion of the Corporation&#8217;s assets, and the assets of most of the officers and directors of the Corporation are located outside of Canada. Messrs. Peter Bojtos and Ronald Andrews, both directors of the Corporation, reside outside of Canada. Although Messrs. Bojtos and Andrews have appointed </b><b>the Corporation as their agent for service of process in Canada, purchasers are advised that it might not be possible for investors to enforce judgments obtained in Canada against Messrs. Bojtos and Andrews. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>THE OFFERED SHARES </b><b><b>HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#8220;U.S. SECURITIES ACT&#8221;) AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS THE OFFERED SHARES ARE REGISTERED UNDER THE U.S. SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT IS AVAILABLE.</b></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s registered office and records office is located at Suite 3200 &#8211; 650 West Georgia Street, Vancouver, British Columbia, V6B 4P7, and its head office is located at Suite 900, 570 Granville Street, Vancouver, British Columbia, V6C 3P1.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr height="15"><td></td></tr><tr height="15"><td style="BORDER-BOTTOM: 1px solid"><p style="MARGIN: 0px" align="center">iii</p></td></tr><tr height="15"><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr height="15"><td></td></tr></table></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><u>TABLE OF CONTENTS</u></b><u></u></p><p style="MARGIN: 0px" align="left">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center"><b>Page</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>IMPORTANT NOTICE ABOUT INFORMATION IN THIS PROSPECTUS SUPPLEMENT</b></p></td><td width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="9%"><p style="MARGIN: 0px" align="right"><b>1</b></p></td><td width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>ABOUT THIS PROSPECTUS SUPPLEMENT</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>1</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>1</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CAUTIONARY STATEMENT CONCERNING MINERAL RESERVE AND RESOURCE ESTIMATES</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>4</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CURRENCY</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>4</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>DOCUMENTS INCORPORATED BY REFERENCE</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>5</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>PROSPECTUS SUPPLEMENT SUMMARY</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>6</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>THE OFFERING</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>6</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>OUR BUSINESS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>7</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CONSOLIDATED CAPITALIZATION</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>8</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>USE OF PROCEEDS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>8</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>PLAN OF DISTRIBUTION</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>9</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>NOTICE TO INVESTORS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>13</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>DESCRIPTION OF SECURITIES DISTRIBUTED</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>15</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>RISK FACTORS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>17</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>PRIOR SALES</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>32</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>TRADING PRICE</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>33</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>ELIGIBILITY FOR INVESTMENT</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>33</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>34</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>INTEREST OF EXPERTS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>39</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>LEGAL MATTERS</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>39</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>AUDITORS, TRANSFER AGENT AND REGISTRAR</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>40</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CANADIAN PURCHASERS&#8217; STATUTORY RIGHTS AND OTHER RIGHTS OF RESCISSION</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>40</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CERTIFICATE OF THE CORPORATION</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>A-1</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px"><b>CERTIFICATE OF THE UNDERWRITER</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="right"><b>A-2</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><b><p style="MARGIN: 0px"><table id="pagebreak16fe3a62-7dde-4540-901c-0fdecaf219dc" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center"></td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px" align="center"><b>IMPORTANT NOTICE ABOUT INFORMATION IN THIS PROSPECTUS SUPPLEMENT</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This document is in two parts. The first part is this Prospectus Supplement, which describes the specific terms of this Offering and also adds to and updates information contained in the Prospectus and the documents incorporated by reference herein and therein. The second part is the Prospectus, which provides more general information. If the description of the Offered Shares varies between this Prospectus Supplement and the Prospectus, investors should rely on the information in this Prospectus Supplement. Before you invest, you should carefully read this Prospectus Supplement, the Prospectus, all information incorporated by reference herein and therein. These documents contain information you should consider when making your investment decision. This Prospectus Supplement may add, update or change information contained in the Prospectus or any of the documents incorporated by reference therein. To the extent that any statement made in this Prospectus Supplement is inconsistent with statements made in the Prospectus or any documents incorporated by reference therein filed prior to the date of this Prospectus Supplement, the statements made in this Prospectus Supplement will be deemed to modify or supersede those made in the Prospectus and such documents incorporated by reference therein.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">You should rely only on the information contained or incorporated by reference in this Prospectus Supplement and the Prospectus. We have not, and the Underwriter has not, authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. The Corporation is offering through the Underwriter to sell, and seeking offers to buy, Offered Shares only in jurisdictions where such offers and sales are permitted. The distribution of this Prospectus Supplement and the Offering in certain jurisdictions may be restricted by law. You should assume that the information contained in this Prospectus Supplement and the Prospectus, as well as information previously filed with the securities regulatory authority in the applicable provinces of Canada, that is incorporated by reference herein and in the Prospectus, is accurate only as of its respective date. The Corporation&#8217;s business, financial condition, results of operations and prospects may have changed since those dates.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>ABOUT THIS PROSPECTUS SUPPLEMENT</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement does not constitute, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy, any securities offered by this Prospectus Supplement by any person in any jurisdiction in which it is unlawful for such person to make such an offer or solicitation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement is deemed to be incorporated by reference into the Prospectus solely for the purposes of this Offering. Other documents are also incorporated or deemed to be incorporated by reference into this Prospectus Supplement and into the Prospectus. See &#8220;<i>Documents Incorporated by Reference</i>&#8221;.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Unless the context otherwise requires, references in this Prospectus Supplement and the Prospectus to &#8220;Avino&#8221; or the &#8220;Corporation&#8221; refer to Avino Silver &amp; Gold Mines Ltd. and include each of its subsidiaries as the context requires.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement and the Prospectus, and the documents incorporated by reference herein and therein, contain &#8220;forward-looking information&#8221; within the meaning of applicable Canadian securities legislation and &#8220;forward-looking statements&#8221; within the meaning of applicable U.S. securities legislation. Please see &#8220;<i>Cautionary Statement Regarding Forward-Looking Information</i>&#8221; in the Prospectus which identifies forward-looking statements and sets out the assumptions upon which they are based and the risk factors to which they are subject. See also &#8220;Risk Factors&#8221; in this Prospectus Supplement and the Prospectus.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaka146ffc1-b4c3-474a-891c-7e44b3f1a337" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">1</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Forward-looking statements are often, but not always, identified by the words &#8220;anticipates&#8221;, &#8220;believes&#8221;, &#8220;expects&#8221;, &#8220;may&#8221;, &#8220;likely&#8221;, &#8220;plans&#8221;, &#8220;intends&#8221;, &#8220;expects&#8221;, &#8220;may&#8221;, &#8220;forecast&#8221;, &#8220;project&#8221;, &#8220;budgets&#8221;, &#8220;potential&#8221;, and &#8220;outlook&#8221;, or similar words, or statements that certain events or conditions &#8220;may&#8221;, &#8220;might&#8221;, &#8220;could&#8221;, &#8220;can&#8221;, &#8220;would&#8221;, or &#8220;will&#8221; occur. Forward-looking statements reflect the Corporation&#8217;s current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors which may cause the Corporation&#8217;s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained or incorporated by reference into the Prospectus and this Prospectus Supplement include, without limitation, statements regarding:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the future production of silver, gold, and other metals;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">profit, operating costs and cash-flow;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">grade improvements;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">sales volume and selling prices of products;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">capital and exploration expenditures, plans, timing, progress, and expectations for the development of the Corporation&#8217;s mines and projects;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">progress in the development of mineral properties;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the timing of production and the cash and total costs of production;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">sensitivity of earnings to changes in commodity prices and exchange rates;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the impact of foreign currency exchange rates;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the impact of taxes and royalties;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">expenditures to increase or determine reserves and resources;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">sufficiency of available capital resources;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">titles to mineral properties;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">expansions and acquisition plans; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">our future plans and expectations for the Corporation&#8217;s properties and operations.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">These forward-looking statements are necessarily based on a number of factors and assumptions that, while considered reasonable by the Corporation as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The assumptions made by the Corporation, which may prove to be incorrect, include, but are not limited to:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">general business and economic conditions;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the supply and demand for, deliveries of, and the level and volatility of prices of, silver, gold, and other metals;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">expected Canadian dollar, Mexican peso and US dollar exchange rates;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">expected taxes and royalties;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the timing of the receipt of regulatory and governmental approvals for development projects, expansion of existing facilities and other operations;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">costs of production, and production and productivity levels;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">estimated future capital expenditures and cash flows;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the continuing availability of water and power resources for operations;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the accuracy of the interpretation and assumptions and the method or methods used in calculating resource estimates (including with respect to size, grade and recoverability);</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the accuracy of the information included or implied in the various published technical reports;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the geological, operational and price assumptions on which such technical reports are based;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">conditions in the financial markets;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the ability to attract and retain skilled staff;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the ability to procure equipment and operating supplies and that there are no material unanticipated variations in the cost of energy or supplies;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak4c294840-9671-4ab0-a0f6-c2235eb1e440" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">2</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the ability to secure contracts for the sale of the Corporation&#8217;s products (metals concentrates);</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the execution and outcome of current or future exploration activities;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the ability to obtain adequate financing for planned activities and to complete further exploration programs;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the possibility of project delays and cost overruns, or unanticipated excessive operating costs and expenses;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the Corporation&#8217;s ability to maintain adequate internal control over financial reporting, and disclosure controls and procedures;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the ability of contractors to perform their contractual obligations; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">operations not being disrupted by issues such as mechanical failures, labour disturbances, illegal occupations or mining, seismic events and adverse weather conditions.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This list is not exhaustive of the factors that may affect any of the Corporation&#8217;s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Corporation or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">changes in commodity prices;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">changes in foreign currency exchange rates;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">acts of foreign governments;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">political risk and social unrest;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">uncertainties related to title to the Corporation&#8217;s mineral properties and the surface rights thereon, including the Corporation&#8217;s ability to acquire, or economically acquire;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">unanticipated operational difficulties due to adverse weather conditions;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">failure of counterparties to perform their contractual obligations;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">delays in obtaining, or denial of, permits necessary for operations or expansion activities;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">uncertainty of mineral resource estimates; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the deterioration of general economic conditions.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Readers are advised to carefully review and consider the risk factors identified in this Prospectus Supplement and the Prospectus under &#8220;Risk Factors&#8221; and elsewhere in this Prospectus Supplement and the Prospectus, and in the documents incorporated by reference herein, for a discussion of the factors that could cause the Corporation&#8217;s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Readers are further cautioned that the foregoing list of assumptions and risk factors is not exhaustive.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The Corporation&#8217;s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date such statements are made. The Corporation will update forward-looking statements and information if and when, and to the extent, required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>We qualify all the forward-looking statements contained in this Prospectus Supplement, the Prospectus and the documents incorporated by reference herein and therein by the foregoing cautionary statements.</b><b> </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak899edfdc-98b0-46f5-95ab-5c2641d6b1ad" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">3</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CAUTIONARY STATEMENT CONCERNING</b></p><p style="MARGIN: 0px" align="center"><b>MINERAL RESERVE AND RESOURCE ESTIMATES</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement and the Prospectus and the documents incorporated by reference herein and therein have been prepared in accordance with the requirements of Canadian provincial securities laws, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all reserve and resource estimates included or incorporated by reference in this Prospectus have been prepared in accordance with Canadian National Instrument 43-101 - <i>Standards of Disclosure for Mineral Projects</i> (&#8220;<b>NI 43-101</b>&#8221;) and the Canadian Institute of Mining, Metallurgy and Petroleum (the &#8220;<b>CIM</b>&#8221;) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. NI 43-101 is an instrument developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms &#8220;mineral reserve&#8221;, &#8220;proven mineral reserve&#8221; and &#8220;probable mineral reserve&#8221; are Canadian mining terms as defined in accordance with NI 43-101and CIM standards. These definitions differ from the definitions in the SEC&#8217;s Industry Guide 7 under the U.S. Securities Act.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Under United States standards, mineralization may not be classified as a &#8220;reserve&#8221; unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Under SEC staff interpretation of Industry Guide 7 standards, a &#8220;final&#8221; or &#8220;bankable&#8221; feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In addition, the terms &#8220;mineral resource&#8221;, &#8220;measured mineral resource&#8221;, &#8220;indicated mineral resource&#8221; and &#8220;inferred mineral resource&#8221; are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. &#8220;Inferred mineral resources&#8221; are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling, and such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of &#8220;contained ounces&#8221; in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute &#8220;reserves&#8221; by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Accordingly, information contained in this Prospectus Supplement and Prospectus and the documents incorporated by reference herein and therein include descriptions of the Corporation&#8217;s mineral deposits that may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CURRENCY</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">All dollar amounts in this Prospectus Supplement are expressed in Canadian dollars unless otherwise indicated.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakc0eb8582-f6ea-4180-a94d-cd5840c111e8" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">4</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>DOCUMENTS INCORPORATED BY REFERENCE</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Prospectus, and the documents incorporated by reference in the Prospectus, as well as the following documents, filed by the Corporation with the various securities commissions or similar regulatory authorities in all of the Provinces of Canada, except for Quebec, are specifically incorporated by reference into, and form an integral part of, this Prospectus Supplement:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%">(a)</td><td valign="top">the audited consolidated financial statements of the Corporation for the fiscal years ended December 31, 2018, 2017, and 2016, together with the auditor&#8217;s reports thereon and notes thereto;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(b)</td><td valign="top">the management&#8217;s discussion and analysis for the year ended December 31, 2018 (collectively with the management&#8217;s discussion and analysis for the years ended December 31, 2017 and 2016, the &#8220;<b>Annual MD&amp;A</b>&#8221; herein);</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(c)</td><td valign="top">the annual information form of the Corporation in the form of a Form 20-F dated March 21, 2019 (&#8220;<b>AIF</b>&#8221;);</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(d)</td><td valign="top">the unaudited condensed consolidated interim financial statements of the Corporation for the three-month period ending March 31, 2019;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(e)</td><td valign="top">the management&#8217;s discussion and analysis for the three-month period ended March 31, 2019 (the &#8220;<b>Interim MD&amp;A</b>&#8221; herein);</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(f)</td><td valign="top">the management information circular of the Corporation dated April 24, 2019;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(g)</td><td valign="top">the Corporation&#8217;s press release dated July 17, 2019 announcing the second quarter production results; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">(h)</td><td valign="top">the Corporation&#8217;s press release dated July 23, 2019 announcing recent and historical drilling results at the Hanging Wall area of the Avino Mine Property.</td></tr></tr></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>A reference herein to this Prospectus Supplement also means any and all documents incorporated by reference in this Prospectus Supplement. Any document of the type referred to above (excluding confidential material change reports), any business acquisition reports, the content of any news release disclosing financial information for a period more recent than the period for which financial statements are required, and certain other disclosure documents as set forth in Item 11.1 of Form 44-101F1 of National Instrument 44-101 - <i>Short Form Prospectus Distributions</i> of the Canadian Securities Administrators filed by the Corporation with the securities commissions or similar regulatory authorities in Canada after the date of this Prospectus Supplement and prior to the termination of the distribution shall be deemed to be incorporated by reference in this Prospectus Supplement.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Any statement contained in this Prospectus Supplement or in the Prospectus or in a document incorporated or deemed to be incorporated by</b> <b>reference herein or therein shall be deemed to be modified or superseded for the</b> <b>purposes of this Prospectus Supplement, to the extent that a statement</b> <b>contained herein or in any other subsequently filed document which also</b> <b>is or is deemed to be incorporated by reference herein or therein modifies or</b> <b>supersedes such statement. Any statement so modified or superseded shall</b> <b>not constitute a part of this Prospectus Supplement, except as so</b> <b>modified or superseded. The modifying or superseding statement need not</b> <b>state that it has modified or superseded a prior statement or include</b> <b>any other information set forth in the document that it modifies or</b> <b>supersedes. The making of such a modifying or superseding statement</b> <b>shall not be deemed an admission for any purposes that the modified or</b> <b>superseded statement, when made, constituted a misrepresentation, an</b> <b>untrue statement of a material fact or an omission to state a material</b> <b>fact that is required to be stated or that is necessary to make a</b> <b>statement not misleading in light of the circumstances in which it was</b> <b>made.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Copies of the documents incorporated herein by reference may be obtained on request without charge from the Chief Financial Officer of Avino at Suite 900 &#8211; 570 Granville Street, Vancouver, British Columbia, V6C 3P1, telephone: (604) 682-3701, and are also available electronically at www.sedar.com and www.sec.gov.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak02b2237c-9651-4ded-85d2-2e2f5504e454" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">5</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>PROSPECTUS SUPPLEMENT SUMMARY</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>This summary highlights certain information about the Corporation, this Offering and selected information contained elsewhere in or incorporated by reference into this Prospectus Supplement or the Prospectus. This summary is not complete and does not contain all of the information that you should consider before deciding whether to invest in the Offered Shares. For a more complete understanding of the Corporation and this Offering, we encourage you to read and consider carefully the more detailed information in this Prospectus Supplement and the Prospectus, including the information incorporated by reference in this Prospectus Supplement and the Prospectus, and in particular, the information under the heading &#8220;Risk Factors&#8221; in this Prospectus Supplement. All capitalized terms used in this summary refer to definitions contained elsewhere in this Prospectus Supplement or the Prospectus, as applicable. </i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 0in" align="center"><b>THE OFFERING</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0"><tr><td valign="top" width="22%"><p style="MARGIN: 0px">Offered Shares&nbsp;</p></td><td width="2%"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">(i) Common Shares having an aggregate sales amount of up to $4,000,100 at an Offering Price of $0.85 per Common Share, plus any Additional Shares sold pursuant to the Over-Allotment Option; and (ii) FT Shares having an aggregate sales amount of up to $2,000,196 at an Offering Price of $0.99 per FT Share, plus any Additional Shares sold pursuant to the Over-Allotment Option.</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">Manner of Offering</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Sales of Offered Shares, if any, under this Prospectus Supplement and the Prospectus will be sold in Canada as a bought deal offering or underwriting. See &#8220;<i>Plan of Distribution</i>&#8221;.</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td valign="top"><p style="MARGIN: 0px">Use of Proceeds</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">The principal business objectives that the Corporation expects to accomplish using the net proceeds from the Common Shares, together with the Corporation&#8217;s current cash resources, are to advance the exploration and development of the Corporation&#8217;s Avino Property in Mexico, and for general working capital. The principal business objectives that the Corporation expects to accomplish using the gross proceeds from the FT Shares is exploration of the Corporation&#8217;s Bralorne Mine Property, in British Columbia. See &#8220;<i>Use of Proceeds</i>&#8221;.</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td valign="top"><p style="MARGIN: 0px">Risk Factors</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">See &#8220;<i>Risk Factors</i>&#8221; in this Prospectus Supplement and the Prospectus and the risk factors discussed or referred to in the AIF, Annual MD&amp;A, and Interim MD&amp;A which are incorporated by reference into this Prospectus Supplement and the Prospectus for a discussion of factors that should be read and considered before investing in the Offered Shares.</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td valign="top"><p style="MARGIN: 0px">Tax Considerations</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Purchasing Offered Shares may have tax consequences. This Prospectus Supplement and the Prospectus may not describe these consequences fully for all investors. Investors should read the tax discussion in this Prospectus Supplement and the Prospectus and consult with their tax advisor. See &#8220;<i>Certain Canadian Federal Income Tax Considerations</i>&#8221; in this Prospectus Supplement.</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">Listing Symbol</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">The Common Shares are listed for trading on the TSX and NYSE American under the symbol &#8220;ASM&#8221;. </p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak1a988b6b-bceb-4aa3-8b92-ff879fffc0bd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">6</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>OUR BUSINESS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Avino is a British Columbia mining corporation, primarily engaged in the extracting and processing of gold, silver, and copper and the acquisition and exploration of natural resource properties. Our principal business activities have been the exploration for and extracting and processing of silver, gold and copper at a mineral property located in the State of Durango, Mexico (known as the &#8220;<b>Avino Property</b>&#8221;), located near the town of Durango, comprising the &#8220;<b>San Gonzalo Mine</b>&#8221; and the &#8220;<b>Avino Mine</b>&#8221;, both of which are currently in operation. We also own indirectly through our British Columbia subsidiary other exploration and evaluation assets in British Columbia (the &#8220;<b>Bralorne Mine Property</b>&#8221;), a gold exploration property located near Gold Bridge British Columbia, which is currently under development, and nine (9) mineral claims located in the Lillooet Mining Division, British Columbia, known as the BRX Property, which are currently inactive, and fourteen (14) quartz mining leases in the Yukon Territory, Canada, known as the Eagle Property, which are currently inactive. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Further information regarding the business of the Corporation, its operations and its material properties can be found in the AIF, the Avino Technical Report, the Bralorne Technical Report (as those terms are defined in the Prospectus), and the other materials incorporated by reference into this Prospectus Supplement and the Prospectus. See &#8220;<i>Documents Incorporated by Reference</i>&#8221;.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>ATM Offering</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">We entered into an amended and restated at-the-market sales agreement dated August 21, 2018 with Cantor Fitzgerald &amp; Co. (the &#8220;<b>ATM Agreement</b>&#8221;) for sales of Common Shares in the United States. Under the ATM Agreement, the Corporation is entitled, at its discretion, and from time to time during the term of the ATM Agreement, to sell, through Cantor Fitzgerald &amp; Co., as sales agent, such number of Common Shares of the Corporation having an aggregate gross value not exceeding the number of Common Shares equal in value to US$8.0 million, and for which the Corporation has filed a prospectus supplement dated December 28, 2018 (the &#8220;<b>ATM Offering</b>&#8221;). Sales of the Common Shares under the ATM Offering have been made and will be made through &#8220;at-the-market offerings&#8221; as defined in Rule 415(a)(4) of the U.S. Securities Act, directly on the NYSE American, or any other existing trading market in the United States. The Common Shares will be distributed at market prices or prices related to prevailing market prices from time to time. As a result, the prices of the Common Shares sold under the ATM Offering will vary as between purchasers and during the period of the distribution. The Corporation has suspended further sales under the ATM Offering, pending completion of this Offering.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">As at the date of this Prospectus Supplement, we have sold an aggregate of 5,105,800 Common Shares under the ATM Offering for gross proceeds of US$3,059,938 (see &#8220;<i>Prior Sales</i>&#8221; below for further details). Pursuant to the ATM Agreement, we have agreed to pay Cantor Fitzgerald &amp; Co. a commission of 3% of the gross proceeds of the sale of any Common Shares sold under the ATM Offering.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakea5903b1-f54d-4ff8-9d5b-8055899b2489" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">7</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Recent Corporate Developments</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Changes in Directors</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Since date of the Prospectus, Michael Baybak, a director of the Corporation has passed away, and in his place, the board of directors of the Corporation has appointed Ronald Andrews. Mr. Andrews is the owner and operator of Andrews Orchards, and sells and distributes agricultural chemicals and fertilizers. He is also the president of West Wind Property Inc., which is a property management and holding company. Mr. Andrews is on the boards of The Bonner Mall in Sandpoint, Idaho, and Coral Gold Resources Ltd., and he has served as labor foreman for Kennecott Mining Company, a division of Rio Tinto in the Arctic Circle. Mr. Andrews has a Bachelor of Science degree from Washington State University and a Masters degree in Political Science. He also served as a helicopter pilot in Vietnam and is retired from the United States Army Reserves.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px"><i>Cease Trade Orders</i><i> </i><i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Mr. Andrews was a director of Berkley Renewables Inc.(&#8220;<b>Berkley</b>&#8221;) at the time it was cease traded by the Ontario and B.C. Securities Commissions on May 6, 2019 for failing to file required records, and the cease trade order has not been rescinded. Mr. Andrews resigned from the board of directors of Berkley on May 15, 2019.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Change of Control Agreements</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">By separate agreements dated May 30, 2019, among the Corporation and Nathan Harte, Chief Financial Officer, and two other key employees, in the event of a change in control of the Corporation, Avino agreed to pay each an amount equivalent to twelve (12) months&#8217; salary. The estimated total change of control payments under these agreements would be approximately $305,000.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CONSOLIDATED CAPITALIZATION</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">There has been no material change in the share and loan capitalization of the Corporation on a consolidated basis since December 31, 2018, other than the issue and sale of 5,105,800 Common Shares to raise gross proceeds of US$3,059,938 (see &#8220;<i>Prior Sales</i>&#8221; below for further details), for a total of 68,291,769 Common Shares issued and outstanding.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Assuming the entire Offering is sold, total equity capitalization will increase by approximately $5,325,275 (by the issuance of 6,726,400 Offered Shares), if the Over-Allotment Option is not exercised, and approximately $6,162,316 (by the issuance of 7,735,360 Common Shares), if the Over-Allotment Option is exercised in full, being the aggregate proceeds of $6,000,296 (or $6,900,340 if the Over-Allotment Option is exercised in full), less commissions of $420,021 (or $483,024 if the Over-Allotment Option is exercised in full), and less estimated total offering expenses $255,000.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>USE OF PROCEEDS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The net proceeds of the Offering to be received by the Corporation, after payment of the Underwriting Fee ($420,021), and the other expenses of the Offering (estimated to be $255,000), are estimated to be approximately $5,325,275 if the Over-Allotment Option is not exercised, and approximately $6,6,162,316, if the Over-Allotment Option is exercised in full. With respect to the net proceeds from the issuance of the Common Shares pursuant to the Offering, the Corporation intends to apply $3,000,000 of these funds to advance the exploration and development of the Avino Property in Mexico, including $2,000,000 in development and $1,000,000 in exploration work, as well as $325,275 which will be added to working capital.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak8a5d20fe-cadd-492a-9ff8-1716fa0e601a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">8</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The gross proceeds from the issuance of the FT Shares pursuant to the Offering, being $2,000,196 (or $2,300,225 if the Over-Allotment Option is exercised in full), will be used to incur CEE as part of the Corporation&#8217;s exploration program in respect of its Bralorne Mine Property in British Columbia in order to satisfy the Corporation&#8217;s obligations to incur, on or before December 31, 2020, and renounce, effective on or before December 31, 2019, CEE in respect of the FT Shares in an amount equal to the gross proceeds from the issuance of the FT Shares. In connection with the issuance of the FT Shares, the Corporation covenants to incur CEE in an amount equal to the aggregate purchase price for the FT Shares issued pursuant to the Offering (including proceeds from the issuance of additional FT Shares forming part of the Additional Shares, if any).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>The Corporation has a history of negative operating cash flow.</b> Although the Corporation had positive operating cash flow for the years ended December 31, 2018 and 2016, the Corporation has a history of negative operating cash flow. For the years ended December 31, 2017 and 2015, the Corporation had negative operating cash flows after working capital adjustments of US$2.2 million and US$2.2 million, respectively. The mineral exploration, development and mining activities in which the Corporation is engaged involves a high degree of risk that even a combination of careful evaluation, experience and knowledge cannot eliminate. There is no certainty that the Corporation will operate profitably or generate positive operating cash flow or provide a return on investment in the future. See &#8220;<i>Risk Factors</i>&#8221;.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>PLAN OF DISTRIBUTION</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Offered Shares will be offered in all provinces of Canada, except Quebec, pursuant to applicable securities legislation in Canada.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Pursuant to the Underwriting Agreement, the Corporation has agreed to issue and sell and the Underwriter has agreed to purchase as principal, subject to compliance with all necessary legal requirements and the terms and conditions contained in the Underwriting Agreement, a total of (i) 4,706,000 Common Shares at the Common Share Offering Price of $0.85 per Common Share, payable in cash to the Corporation against delivery of the Common Shares on the Closing Date; and (ii) 2,020,400 FT Shares at the FT Share Offering Price of $0.99 per FT Share, payable in cash to the Corporation against delivery of the FT Shares on the Closing Date. In consideration for their services in connection with the Offering, the Underwriter will be paid the Underwriting Fee equal to 7.0% of the gross proceeds of the Offering ($0.0595 per Common Share or $0.0693 per FT Share, for an aggregate fee payable by the Corporation of $420,021, exclusive of the Over-Allotment Option). The offering prices were determined by arm&#8217;s length negotiation between the Corporation and the Underwriter, with reference to the prevailing market price of the Common Shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Pursuant to the Underwriting Agreement, the Corporation has agreed to issue to the Underwriter Common Share purchase warrants (the &#8220;<b>Compensation Warrants</b>&#8221;) equal to 6.0% of the Offered Shares sold, exercisable at the Common Share Offering Price for a period of 12 months from the Closing Date. The Corporation has also granted the Underwriter the Over-Allotment Option, exercisable in whole or in part in the sole discretion of the Underwriter for a period of 30 days following the Closing Date, enabling it to purchase up to an additional 705,900 Common Shares at the Common Share Offering Price, and up to an additional 303,060 FT Shares at the FT Share Offering Price, to cover over-allotments, if any, and for market stabilization purposes, on the same terms and conditions as apply to the purchase of the Offered Shares thereunder. This Prospectus Supplement qualifies for distribution the Offered Shares as well as the grant of the Over-Allotment Option and the distribution of the Additional Shares pursuant to the exercise of the Over-Allotment Option. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">A purchaser who acquires Additional Shares forming part of the Underwriter&#8217;s over-allocation position acquires those securities under this Prospectus Supplement, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak2f9c0581-46d2-47b9-bfa0-9637efdfae8a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">9</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Underwriter is registered as a broker or investment dealer in Canada, and accordingly, will only sell the Offered Shares in Canada. Subject to applicable laws, the Underwriter may offer the Common Shares outside of Canada.<b> </b>FT Shares will only be sold in Canada to Canadian subscribers, pursuant to one or more subscription agreements for FT Shares (each a &#8220;<b>FT Subscription Agreement</b>&#8221;) to be entered into between the Corporation and each of the subscribers of FT Shares. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Each FT Share will qualify as a &#8220;flow-through share&#8221; (as defined in subsection 66(15) of the Tax Act).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Pursuant to the FT Subscription Agreements, the Corporation will covenant and agree (i) to incur or to be deemed to have incurred on or before December 31, 2020, and renounce to each subscriber (effective on or before December 31, 2019, assuming the subscriber is dealing at arm&#8217;s length with the Corporation and certain other requirements are met as set out in the FT Subscription Agreement, CEE in an amount equal to the gross subscription price that is paid for the FT Shares, (ii) that the expenditures renounced will be &#8220;flow-through mining expenditures&#8221; of the subscriber for the purposes of Subsection 127(9) of the Tax Act for individuals (other than trusts), and qualify as &#8220;BC flow-through mining expenditures&#8221; within the meaning of subsection 4.721(1) of the <i>Income Tax Act</i> (British Columbia) (the &#8220;<b>BC Tax Act</b>&#8221;) for subscribers who are residents of British Columbia, and (iii) that if the Corporation does not renounce to such subscriber CEE equal to the amount specified in (i) above, or if there is a reduction in such amount renounced pursuant to the provisions of the Tax Act, the Corporation shall indemnify such subscriber within twenty (20) business days for an amount equal to the amount of any tax payable or that may become payable under the Tax Act (and under any corresponding provincial legislation) by such subscriber as a consequence of such failure or reduction. For greater certainty, the foregoing indemnity shall have no force or effect and the subscriber shall not have any recourse to the extent that such indemnity or recourse would otherwise cause the FT Shares to be &#8220;prescribed shares&#8221; within the meaning of section 6202.1 of the regulations to the Tax Act. The FT Subscription Agreements will contain additional representations, warranties, covenants and agreements by the Corporation in favour of the subscribers of FT Shares which are consistent with and supplement the Corporation&#8217;s obligations as described in this Prospectus Supplement.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The FT Subscription Agreements will also provide representations, warranties and agreements of the subscriber, and by its purchase of FT Shares each subscriber of FT Shares offered under this Prospectus Supplement will be deemed to have represented, warranted and agreed, for the benefit of the Corporation and the Underwriter or its subagents, if any, that, inter alia: (i) neither the subscriber nor any beneficial purchaser for whom it is acting is, for the purposes of the Tax Act, a non-resident of Canada or a partnership other than a &#8220;Canadian partnership&#8221;, (ii) the subscriber, and any beneficial purchaser for whom it is acting, deals, and until January 1, 2021 will continue to deal, at arm&#8217;s length with the Corporation for the purposes of the Tax Act, (iii) the subscriber, if an individual, is of the full age of majority and otherwise is legally competent to enter into the FT Subscription Agreement, (iv) other than as provided herein and in the FT Subscription Agreement, the subscriber waives any right that it may have to any potential incentive grants, credits and similar or like payments or benefits which accrue as a result of the operations relating to CEE and acknowledges that all such grants, credits, payments or benefits accrue to the benefit of the Corporation, and (v) the subscriber has received and reviewed a copy of this Prospectus Supplement.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation understands that purchasers of FT Shares may subsequently resell such FT Shares or donate such FT Shares to registered charities, who may sell or resale such shares, without any flow-through tax benefits, in each case, on the Closing Date or the Over Allotment Option closing date and, in each case, to purchasers arranged by the Underwriter. This Prospectus Supplement qualifies the issuance of the FT Shares as well as the subsequent resale of the resale shares to purchasers arranged by the Underwriter.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak71525e0c-ad40-4d11-af50-ff55134d261d" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">10</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has agreed, pursuant to the Underwriting Agreement, to indemnify the Underwriter and its affiliates and respective directors, officers, employees, shareholders and agents and each other person, if any, controlling any of the Underwriter or its affiliates against certain liabilities, including liabilities under Canadian securities legislation in certain circumstances or to contribute to payments the Underwriter may have to make because of such liabilities. In addition, the Corporation has agreed in the Underwriting Agreement to reimburse the Underwriter for its legal fees and certain other expenses in connection with the Offering, in an amount not to exceed $125,000. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Avino has been advised by the Underwriter that in connection with this Offering, the Underwriter may effect transactions that stabilize or maintain the market price of our Common Shares at levels other than those that might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. The Underwriter proposes to offer the Offered Shares initially at the Common Share Offering Price and the FT Shares at the FT Share Offering Price. After a reasonable effort has been made to sell all of the Offered Shares at their respective offering prices, the Underwriter may subsequently reduce the selling price to investors from time to time in order to sell any of the Offered Shares remaining unsold. Any such reduction will not affect the aggregate proceeds received by the Corporation. If the aggregate purchase price paid by purchasers for the FT Shares is less than the FT Share Offering Price, the Corporation will only be permitted to renounce CEE equal to such lesser aggregate price.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The obligations of the Underwriter pursuant to the Underwriting Agreement may be terminated at its discretion upon the occurrence of certain events specified in the Underwriting Agreement, including standard &#8220;litigation out&#8221;, &#8220;financial out&#8221; &#8220;disaster out&#8221;, &#8220;material adverse effect out&#8221; and &#8220;market out&#8221; rights of termination. The Underwriter is obligated to take up and pay for all of the Offered Shares offered by this Prospectus Supplement (not including any Additional Shares under the Over-Allotment Option) if any are purchased under the Underwriting Agreement, subject to certain exceptions. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Pursuant to the Underwriting Agreement, and without the written consent of the Underwriter, the Corporation has agreed that it shall not issue, negotiate or enter into any agreement to sell or issue, or announce the issue of, any equity securities of the Corporation for a period of 90 days from the Closing Date, other than: (i) the issuance of the Common Shares, the FT Shares and any Common Shares upon exercise of the any share purchase warrants outstanding as of the date of the Underwriting Agreement; (ii) pursuant to the grant of options in the normal course pursuant to the Corporation&#8217;s incentive stock option plan or issuance of securities pursuant to the exercise of options outstanding as of the date of the Underwriting Agreement; and (iii) an issuance of options or securities in connection with a <i>bona fide</i> acquisition by the Corporation (other than a direct or indirect acquisition, whether by way of one or more transactions, or an entity all or substantially all of the assets of which are cash, marketable securities or financial in nature or an acquisition that is structured primarily to defeat the intent of these provisions).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">As a condition precedent to the Underwriter&#8217;s obligation to close the Offering, subject to customary exemptions permitting dispositions to trusts for the direct or indirect benefit of the director or officer and/or the immediate family of such person, tenders to a take-over bid or acquisition transaction and pursuant to any existing stock option plan, all directors and senior officers of the Corporation shall be required to execute and deliver written undertakings in favour of the Underwriter agreeing not to sell, transfer, pledge (other than as disclosed to the Underwriter in writing), assign, or otherwise dispose of any securities of the Corporation owned, directly or indirectly by such directors or officers, until 90 days following the Closing Date, without the prior written consent of the Underwriter.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak19b3fefb-b255-42c5-848e-7c3bbca0142d" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">11</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Subscriptions for the Offered Shares will be received subject to rejection or allotment in whole or in part and the right is reserved to close the subscription books at any time without notice. The closing of the Offering is expected to occur on or about July 30, 2019. It is anticipated that the Offered Shares will be issued in &#8220;book-entry only&#8221; form and represented by a global certificate or certificates, or be represented by uncertificated securities, for sales in Canada registered in the name of CDS or its nominee<b>,</b> as directed by the Underwriter, and will be deposited with CDS. Except in limited circumstances, no beneficial holder of Common Shares will receive definitive certificates representing their interest in the Offered Shares. Beneficial holders of the Offered Shares will receive only a customer confirmation from the Underwriter, or another registered dealer who is a CDS participant, and from or through whom a beneficial interest in the Offered Shares is acquired. If any Offered Shares are not able to be issued in &#8220;book-entry only&#8221; form through CDS in advance of the Closing Date for any reason, then those investors or other designated holders will receive definitive certificates representing their interests in the Offered Shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement and the Prospectus may be made available in electronic format on the websites maintained by the Underwriter or its affiliates or subagents participating in the Offering. The Underwriter may agree to allocate a number of the Offered Shares to its affiliates or subagents for sale to their online brokerage account holders. Internet distributions will be allocated by the representatives to the Underwriter and its affiliate or subagents that may make internet distributions on the same basis as other allocations. Other than the Prospectus Supplement and Prospectus in electronic format, the information on these websites is not part of this Prospectus Supplement or the Registration Statement of which this Prospectus Supplement forms a part, has not been approved or endorsed by the Corporation or the Underwriter in its capacity as underwriter, and should not be relied upon by investors.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Underwriter and certain of its affiliates have provided in the past to the Corporation and its affiliates and may provide from time to time in the future various investment banking, commercial banking, financial advisory and other financial services for the Corporation and its affiliates, for which services they have received, and may continue to receive in the future, customary fees and commissions. To the extent required by Regulation M, the Underwriter will not engage in any market making activities involving the Common Shares, while the Offering is ongoing under this Prospectus Supplement. However, from time to time, the Underwriter and its Canadian affiliates may have effected transactions for their own account or the account of customers, and hold on behalf of themselves or their customers, long or short positions in the Corporation&#8217;s equity securities, and may do so in the future.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has applied to the TSX to conditionally approve the listing of the Offered Shares. Listing is subject to us fulfilling all of the requirements of the TSX, which cannot be assured. The Corporation has also applied to the NYSE American for the listing of the Common Shares offered hereunder, upon official notice of issuance.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Offered Shares have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak5c8933ce-d9a2-40a3-8509-e8f8a6a2f69f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">12</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Notice to Investors</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>European Economic Area</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In relation to each member state of the European Economic Area , no offer of any securities which are the subject of the Offering contemplated by this Prospectus Supplement has been or will be made to the public in that member state other than any offer where a prospectus has been or will be published in relation to such securities that has been approved by the competent authority in that member state or, where appropriate, approved in another member state and notified to the relevant competent authority in that member state in accordance with the Prospectus Directive, except that an offer of such securities may be made to the public in that member state:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">to any legal entity which is a &#8220;qualified investor&#8221; as defined in the Prospectus Directive;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">to fewer than 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the representatives of the underwriters for any such offer; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">in any other circumstances falling within Article 3(2) of the Prospectus Directive,</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">provided that no such offer of securities shall require the Corporation or Underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive. For the purposes of this provision, the expression an &#8220;offer to the public&#8221; in relation to any securities in any member state means the communication in any form and by any means of sufficient information on the terms of the offer and the securities to be offered so as to enable an investor to decide to purchase or subscribe the securities, as the same may be varied in that member state by any measure implementing the Prospectus Directive in that member state and the expression &#8220;Prospectus Directive&#8221; means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive), and includes any relevant implementing measure in the member state and the expression &#8220;2010 PD Amending Directive&#8221; means Directive 2010/73/EU. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>United Kingdom </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This Prospectus Supplement is only being distributed to, and is only directed at, persons in the United Kingdom that are qualified investors (as defined in the Prospectus Directive) that are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended, referred to herein as the &#8220;Order&#8221;, and/or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order and other persons to whom it may lawfully be communicated or caused to be communicated. Each such person is referred to herein as a &#8220;Relevant Person&#8221;. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This prospectus and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other persons in the United Kingdom. Any person in the United Kingdom that is not a Relevant Person should not act or rely on this document or any of its contents. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000 (the &#8220;FSMA&#8221;)) may only be communicated or caused to be communicated in connection with the issue or sale of the securities in circumstances in which Section 21(1) of the FSMA does not apply. All applicable provisions of the FSMA must be complied with in respect of anything done by any person in relation to the securities in, from or otherwise involving the United Kingdom. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Hong Kong</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">No securities have been offered or sold, and no securities may be offered or sold, in Hong Kong, by means of any document, other than to persons whose ordinary business is to buy or sell shares or debentures, whether as principal or agent; or to &#8220;professional investors&#8221; as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong and any rules made under that Ordinance; or in other circumstances which do not result in the document being a &#8220;prospectus&#8221; as defined in the Companies Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of the Companies Ordinance (Cap.32) of Hong Kong. No document, invitation or advertisement relating to the securities has been issued or may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted under the securities laws of Hong Kong) other than with respect to securities which are or are intended to be disposed of only to persons outside Hong Kong or only to &#8220;professional investors&#8221; as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong and any rules made under that Ordinance.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd09f4769-a722-447b-8edd-77127e3bff44" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">13</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Prospectus and this Prospectus Supplement have not been registered with the Registrar of Companies in Hong Kong. Accordingly, the Prospectus and this Prospectus Supplement may not be issued, circulated or distributed in Hong Kong, and the securities may not be offered for subscription to members of the public in Hong Kong. Each person acquiring the securities will be required, and is deemed by the acquisition of the securities, to confirm that such person is aware of the restriction on offers of the securities described in this Prospectus Supplement and the relevant offering documents and that such person is not acquiring, and has not been offered any securities in circumstances that contravene any such restrictions.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Japan</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Offering has not been and will not be registered under the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948 of Japan, as amended), or FIEL, and an initial purchaser will not offer or sell any securities, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means, unless otherwise provided herein, any person resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the FIEL and any other applicable laws, regulations and ministerial guidelines of Japan.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Singapore</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Prospectus and this Prospectus Supplement have not been and will not be lodged or registered with the Monetary Authority of Singapore. Accordingly, the Prospectus and this Prospectus Supplement and any other document or material in connection with the offer or sale, or the invitation for subscription or purchase of the securities may not be issued, circulated or distributed, nor may the securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to the public or any member of the public in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore, or the SFA, (ii) to a relevant person as defined under Section 275(2), or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions, specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of any other applicable provision of the SFA.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Where the securities are subscribed or purchased under Section 275 of the SFA by a relevant person which is:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><font face="Symbol"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">a corporation (which is not an accredited investor as defined under Section 4A of the SFA) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary is an accredited investor,</td></tr></tr></table>&nbsp; </font>&nbsp; <table id="pagebreak01379366-36ed-4b85-a2a1-619d75ad9953" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">14</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">shares, debentures and units of shares and debentures of that corporation or the beneficiaries&#8217; rights and interest in that trust shall not be transferable for six months after that corporation or that trust has acquired the Offered Shares under Section 275 of the SFA except:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><font face="Symbol"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">to an institutional investor under Section 274 of the SFA or to a relevant person defined in Section 275(2) of the SFA, or to any person pursuant to an offer that is made on terms that such shares, debentures and units of shares and debentures of that corporation or such rights and interest in that trust are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or other assets, and further for corporations, in accordance with the conditions, specified in Section 275 of the SFA;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">where no consideration is given for the transfer; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">where the transfer is by operation of law.</td></tr></tr></tr></table>&nbsp;</font></p><p style="MARGIN: 0px" align="center"><b>DESCRIPTION OF SECURITIES DISTRIBUTED</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Authorized and Issued Share Capital</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The authorized share capital of the Corporation consists of an unlimited number of Common Shares without par value. As of the date of this Prospectus Supplement, 68,291,769 Common Shares were issued and outstanding as fully paid and non-assessable shares. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Common Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Each holder of Common Shares is entitled to one vote for each share on all matters submitted to a vote of the shareholders, except matters that relate only to one or more of the series of preferred share, and each holder does not have cumulative voting rights. Accordingly, the holders of a majority of the common shares entitled to vote in any election of directors can elect all of the directors standing for election, if they so choose.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Subject to preferences that may be applicable to any then outstanding preferred stock, holders of Common Shares are entitled to receive rateably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds. In the event of our liquidation, dissolution or winding up, holders of Common Shares will be entitled to share rateably in the net assets legally available for distribution to shareholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any outstanding preferred shares. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Holders of Common Shares have no pre-emptive or conversion rights or other subscription rights, and there are no redemption or sinking fund provisions applicable to the Common Shares. All outstanding common shares are, and the Offered Shares, when issued and paid for, will be fully paid and non-assessable. The rights, preferences and privileges of the common shares are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred share which we may designate in the future. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Flow-Through Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Each FT Share will be a common share in the capital of the Corporation that qualifies as a &#8220;flow-through share&#8221; under the Tax Act and will not be a &#8220;prescribed share&#8221; within the meaning of section 6202.1 of the regulations to the Tax Act. The Corporation will incur or will be deemed to have incurred on or before December 31, 2020, and renounce to each subscriber of FT Shares (effective on or before December 31, 2019, assuming the subscriber is dealing at arm&#8217;s length with the Corporation and certain other requirements are met as set out in the FT Subscription Agreement, CEE in an amount equal to the gross aggregate purchase price paid by such subscriber which is allocated to the FT Shares. See &#8220;<i>Certain Canadian Federal Income Tax Considerations</i>&#8221;. FT Shares will be issued under and governed by FT Share Subscription Agreements, which will contain certain terms and conditions applicable to the Corporation and the subscriber. See &#8220;<i>Plan of Distribution</i>&#8221; above.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak97be4194-73b6-4636-aec5-1289661b925a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">15</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Articles &#8211; Anti-Takeover Provisions</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>Issuance of Shares</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Our Articles authorizes the Corporation to issue an unlimited number of Common Shares. Shareholder approval is not necessary to issue our Common Shares. Issuance of additional Common Shares could have the effect of making it more difficult and more expensive for a person or group to acquire control of us and could effectively be used as an anti-takeover device.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In addition, the Articles permit the board of directors to: (1) create one or more classes or series of shares, or if none of the shares of a class or series of shares are issued, eliminate that class or series of shares, (2) increase, reduce or eliminate the maximum number of shares that the Corporation is authorized to issue, (3) subdivide all or any unissued or fully paid issued shares by way of a stock dividend, (4) change any of its unissued or fully paid issued shares without par value into shares with par value, (5) alter the identifying names of any of its shares, or (6) otherwise alter its shares or authorized share capital when required or permitted to do so by the British Columbia <i>Business Corporations Act</i> (the &#8220;<b>BCBCA</b>&#8221;). Any of these powers could be used to make it more difficult for a third party to acquire the company, or to discourage a third party from acquiring the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>Size of Board of Directors and Removal of Directors</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s Articles provide that: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">The number of directors will be fixed from time to time exclusively pursuant to a resolution adopted by our board of directors, but must consist of not less than three directors; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Vacancies on our board of directors, however the vacancy occurs, may be filled by a majority of directors then in office, even though less than a quorum.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="justify">As permitted under the BCBCA and the Articles, the board of directors may also be enlarged by the appointment of additional directors only by the then current board of directors, and is limited to up to one-third of the number of directors previously elected or appointed by the shareholders.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The limitations on the removal and appointment of directors and the filling of casual vacancies, could have the effect of making it more difficult for a third party to acquire the Corporation, or of discouraging a third party from acquiring the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>Calling of Special Meetings of Shareholders</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s Articles provide that special shareholder meetings for any purpose may generally only be called by our board of directors. However, the BCBCA does contain provisions for shareholders holding at least 5% of the total issued and outstanding voting shares to requisition shareholder meetings. Upon receiving a shareholder requisition stating in 1,000 words or less the business to be transacted, the directors must send notice of a general meeting to be held within four months from the date the requisition was received to transact the business stated in the requisition. If the directors do not send the notice of meeting within 21 days after the date the requisition was received, then the requisitioning shareholders may send notice of the general meeting to be held to transact the business stated in the requisition. These provisions could have the effect of delaying or discouraging stockholder actions that are favored by a majority of our outstanding voting shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak5a806fc9-fe37-4b9b-800f-769f571095dd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">16</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>Advance Notice Requirements for Director Nominations</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s Articles establish an advance notice procedure for shareholder proposed nominations of candidates for election to the board of directors. Shareholders at an annual meeting may only consider nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors, or by a shareholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has delivered timely written notice in proper form to our secretary of the shareholder&#8217;s intention to nominate any person before the meeting. These provisions could have the effect of delaying until the next shareholder meeting shareholder actions that are favored by the holders of a majority of our outstanding voting shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>RISK FACTORS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Investing in securities of the Corporation involves a significant degree of risk and must be considered speculative due to the high-risk nature of the Corporation&#8217;s business. Investors should carefully consider the information included or incorporated herein by reference in this Prospectus Supplement and the Prospectus (including subsequently filed documents incorporated by reference) and the Corporation&#8217;s historical consolidated financial statements and related notes thereto before making an investment decision concerning the Offered Shares. There are various risks that could have a material adverse effect on, among other things, the operating results, earnings, properties, business and condition (financial or otherwise) of the Corporation. These risk factors, together with all of the other information included, or incorporated by reference in this Prospectus Supplement, including information contained in the section entitled &#8220;Cautionary Statement Regarding Forward-Looking Information&#8221; should be carefully reviewed and considered before a decision to invest in the Offered Shares is made. Additional risks and uncertainties not currently known to the Corporation, or that the Corporation currently deems immaterial, may also materially and adversely affect its business. </i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Our results of operations, cash flows and the value of our properties are highly dependent on the market prices of silver and gold and certain base metals and these prices can be volatile.</i></b><b><i> </i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The profitability of our silver and gold mining operations and the value of our mining properties are directly related to the market price of silver, and to a lesser extent gold and other base metals. The price of silver may also have a significant influence on the market price of our common shares. The market price of silver historically has fluctuated significantly and is affected by numerous factors beyond our control. These factors include supply and demand fundamentals, global or national political or economic conditions, expectations with respect to the rate of inflation, the relative strength of the U.S. dollar and other currencies, interest rates, silver and gold sales and loans by central banks, forward sales by metal producers, accumulation and divestiture by exchange traded funds, and a number of other factors. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">We derive a significant portion of our revenue from the sale of silver and our results of operations will fluctuate as the prices of this metals change. A period of significant and sustained lower silver prices would materially and adversely affect our results of operations and cash flows. During the past fiscal year, silver prices have decreased, and in the event mineral prices decline or remain low for prolonged periods of time, we might be unable to develop our existing exploration properties, which may adversely affect our results of operations, financial performance, and cash flows. An asset impairment charge may result from the occurrence of unexpected adverse events that impact our estimates of expected cash flows generated from our producing properties or the market value of our non-producing properties, including a material diminution in the price of silver and/or gold. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak4fefe00e-18ac-49b4-8ca1-cb9fb7a6f6ce" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">17</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>We will be required to raise additional capital to mine our properties.</i></b><b><i> </i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Company is currently focusing on further defining plans to mine its San Gonzalo and Avino mineralized material, further exploration of the Avino property in Mexico, and on exploring and evaluating the Bralorne Mine project. The Company will be required to raise capital to further advance the San Gonzalo and Avino mines and its infrastructure, to explore the Avino property, and to further explore and evaluate the Bralorne Mine project. Our ability to raise funds will depend on several factors, including, but not limited to, current economic conditions, our perceived value for our properties, our prospects, metal prices, businesses competing for financing and our financial condition. There can be no assurance that we will be able to raise funds, or to raise funds on commercially reasonable terms. Historically, the Company has raised funds through equity and debt financing and the exercise of options and warrants. The raising of capital may have a dilutive effect on the Company&#8217;s per share book value. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>No assurances can be given we will continue to be profitable in the future </i></b><i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">We began extracting and processing resources at levels intended by management at the San Gonzalo Mine during the fourth quarter of 2012 and at the Avino Mine in the third quarter of 2015. For the years ended December 31, 2018, 2017, and 2016, we earned net income of $1,626,000, $2,522,000 and, $2,016,000, respectively. Prior to the 2013 fiscal year, we had not been profitable. There is no assurance that our operations will continue to be profitable in the future. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>We decided to begin extracting and processing resources at levels intended by management at the San Gonzalo Mine and the Avino Mine without preparing a pre-feasibility study or bankable feasibility study which may subject us to more risks.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">We decided to begin extracting and processing resources at levels intended by management at the San Gonzalo Mine and the Avino Mine without preparing a pre-feasibility study or bankable feasibility study which is a more common practice within the mining industry and therefore may subject us to more business risks. Our decision to begin extracting and processing resources at the San Gonzalo Mine and the Avino Mine were based on limited prior historical information, bulk sample drilling programs, small pilot plant and bench scale testing. Therefore, our decision to begin extracting and processing resources at the San Gonzalo Mine and the Avino Mine were based on limited information which may or may not be representative of information regarding the mines had we otherwise prepared a more comprehensive study. In addition, basing our decision to begin extracting and processing resources on limited information may make us susceptible to risks including:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><font face="Symbol"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">certain difficulties in obtaining expected metallurgical recoveries when scaling up to extracting and processing activities at levels intended by management from pilot plant scale;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the inability to predict the amount of minerals within an area to be mine due the limited sample drilling programs which makes it a challenge to predict our revenues;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">the preliminary nature of mine plans and processing concepts and applying them to full scale extracting and processing activities at levels intended by management;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">determining operating/capital cost estimates and possible variances associated with constructing, commissioning and operating the San Gonzalo and Avino facilities based on limited information;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">that metallurgical flow sheets and recoveries are based on information at the time and may not be representative of results of the San Gonzalo Mine and/or the Avino Mine; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">that we may underestimate capital and operating costs without a comprehensive bankable feasibility study.</td></tr></tr></tr></tr></tr></tr></table>&nbsp;</font>&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakef68e3ac-3adc-4a9f-94e4-b255870f0e3e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">18</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Metals and Mineral Prices Are Subject to Dramatic and Unpredictable Fluctuations</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The market prices of precious metals and other minerals are volatile and cannot be controlled. If the prices of precious metals and other minerals should drop significantly, the economic prospects of the Corporation&#8217;s operating mines and projects could be significantly reduced or rendered uneconomic. There is no assurance that even if commercial quantities of ore are discovered, a profitable market may exist for the sale of same. Mineral prices have fluctuated widely, particularly in recent years. The marketability of minerals is also affected by numerous other factors beyond the control of the Corporation, including government regulations relating to royalties, allowable production and importing and exporting of minerals, the effect of which cannot be accurately predicted.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has not entered into any hedging arrangements for any of its metal and mineral production. The Corporation may enter into hedging arrangements in the future.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Current Global Financial Conditions</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In recent years, global financial markets have experienced increased volatility, and global financial conditions have been subject to increased instability. These have a profound impact on the global economy. Many industries, including the mining sector, were impacted by these market conditions. Some of the key impacts of financial market turmoil include contraction in credit markets resulting in a widening of credit risk, devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Access to financing for mining companies continues to be negatively impacted by liquidity constraints. These factors may impact the ability of the Corporation to obtain equity or debt financing and, if available, to obtain such financing on terms favourable to the Corporation. If these increased levels of volatility and market turmoil continue, the Corporation&#8217;s operations and planned growth could be adversely impacted and the trading price of the securities of the Corporation may be adversely affected.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Inaccuracies in Production and Cost Estimates</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation prepares estimates of future production and future production costs for its operations. No assurance can be given that these estimates will be achieved. Production and cost estimates are based on, among other things, the following: the accuracy of mineral resource estimates; the accuracy of assumptions regarding ground conditions and physical characteristics of mineralization, equipment and mechanical availability, labour, and the accuracy of estimated rates and costs of mining and processing. Actual production and costs may vary from estimates for a variety of reasons, including actual mineralization mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics, short-term operating factors relating to the mineral resources, such as the need for sequential development of mineralized zones and the processing of new sources or different grades of mineralization; and the risks and hazards associated with mining described below under &#8220;Mining and Mineral Exploration Have Substantial Operational Risks&#8221;. In addition, there can be no assurance that silver recoveries or other metal recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production, or that the existing known and experienced recoveries will continue. Costs of production may also be affected by a variety of factors, including: variability in grade or dilution, metallurgy, labour costs, costs of supplies and services (such as, fuel and power), general inflationary pressures and currency exchange rates. Failure to achieve production or cost estimates, or increases in costs, could have an adverse impact on the Corporation&#8217;s future cash flows, earnings, results of operations and financial condition.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak22e34006-a868-40f0-832d-4dd63a3a23dd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">19</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Uncertainty Regarding Resource Estimates</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Only mineral resources have been determined for certain of the Corporation&#8217;s properties, and no estimate of reserves on any property has been completed. Resource estimates are based on interpretation and assumptions and may yield less mineral production under actual conditions than estimated. In making determinations about whether to advance any projects to development, the Corporation must rely upon estimated calculations as to the mineral resources and grades of mineralization on its properties. Until mineralized zones are actually mined and processed, mineral resources and grades of mineralization must be considered as estimates only. These estimates are imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling which may prove to be unreliable. The Corporation cannot assure that:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">resource or other mineralization estimates will be accurate; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">mineralization can be mined or processed profitably.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="justify">Any material changes in mineral resource estimates and grades of mineralization will affect the economic viability of a mine or a project and its return on capital. The Corporation&#8217;s resource estimates have been determined and valued based on assumed future prices, cut-off grades and operating costs that may prove to be inaccurate. Extended declines in market prices for silver and gold may render portions of the Corporation&#8217;s mineralization uneconomic and result in reduced reported mineral resources.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Any material reductions in estimates of mineral resources, or of the Corporation&#8217;s ability to extract such mineral resources, could have a material adverse effect on the Corporation&#8217;s results of operations or financial condition. The Corporation cannot assure that mineral recovery rates achieved in small scale tests will be duplicated in large scale tests under on-site conditions or in production scale.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>No Reserves</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">There are no current estimates of mineral reserves for any of the Corporation&#8217;s mines or projects. The Corporation made decisions to enter into production at the Avino Mine, and the San Gonzalo Mine without having completed final feasibility studies. Accordingly, the Corporation did not base its production decisions on any feasibility studies of mineral reserves demonstrating economic and technical viability of the mines. As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Corporation&#8217;s mines or the costs of such recovery. As the Corporation&#8217;s mines do not have established reserves, the Corporation faces higher risks that anticipated rates of production and production costs will be achieved, and these risks could have a material adverse impact on the Corporation&#8217;s ability to continue to generate anticipated revenues and cash flows to fund operations from and ultimately achieve profitable operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Sufficiency of Current Capital and Ability to Obtain Financing</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The further exploitation, development and exploration of mineral properties in which the Corporation holds interests or which the Corporation acquires may depend upon its ability to obtain equity financing and/or debt financing, to enter into joint ventures or to obtain other means of financing. There is no assurance that the Corporation will be successful in obtaining required financing as and when needed. Volatile precious metals markets may make it difficult or impossible for the Corporation to obtain financing on favourable terms, or at all.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">As at December 31, 2018, the Corporation had approximately US$3.25 million in cash and short-term investments. The Corporation has a history of negative operating cash flow. While the Corporation considers that it has sufficient capital to support its current operating requirements based on its current capital resources and expected cash flows from ongoing operations, there is a risk that commodity prices may decline, or other factors may cause the Corporation to be unable to continue generating sufficient cash flows to sustain operations or to be unable to fund planned capital projects, including expansions and potential acquisitions. In addition, the Corporation may require additional capital if the costs of its capital projects are materially greater than the Corporation&#8217;s projections.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak8abc9d00-8dad-4614-a834-d100e2df04cb" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">20</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">There is no assurance that the Corporation will be able to obtain additional capital when required. Failure to obtain additional financing on a timely basis may cause the Corporation to postpone acquisitions, expansion, development and exploration plans, or even suspend operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Mining and Mineral Exploration Have Substantial Operational Risks</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Mining and mineral exploration involves many risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. These risks include but are not limited to:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">major or catastrophic equipment failures;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">mine failures and slope failures;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">ground fall and cave-ins;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">deleterious elements in the mined resources;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">environmental hazards;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">industrial accidents and explosions;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">unusual or unexpected geological formations;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">labour shortages or strikes;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">civil disobedience and protests; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp; </p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">natural phenomena such as inclement weather conditions, floods, droughts, rock slides and earthquakes.</td></tr></tr></tr></tr></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px" align="justify">These occurrences could result in environmental damage and liabilities, work stoppages and delayed production, increased production costs, damage to, or destruction of, mineral properties or production facilities, personal injury or death, asset write-downs, monetary losses and other liabilities. The nature of these risks is such that liabilities could exceed policy limits of the Corporation&#8217;s insurance coverage, in which case the Corporation could incur significant costs that could prevent profitable operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Mining activities are inherently risky.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Mining activities are risky and heavily regulated. Despite our attempts to minimize accidents through strict safety procedures, individuals may be injured or harmed working in our mines. Should any accidents occur, our mine may be partially or fully shut down to aid regulators in their investigation; even if it is determined we are not at fault for the cause of the accident. In this regard, there were two accidental deaths at the Company&#8217;s San Gonzalo mine in March 2016, and an accidental death at the Avino mine complex processing facility in June 2014. We do not believe that we were at fault in these accidents and, unfortunately, believe that the accidents were the result of the employees not following the proper safety protocols. Following the accidents, local authorities allowed us to resume mining activities. Notwithstanding our belief that we were not at fault for the accidents, we may nevertheless be found liable and subject to fines and/or penalties or we may be required to revise and implement new safety procedures that would make it more costly to operate our mines. Currently, we do not have insurance covering accidents, but may obtain insurance in the future.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakae17a991-852e-4154-86ca-096ed8ce5bad" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">21</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Political Risk and Government Regulations</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s mining, exploration and development activities are focused in Mexico and Canada, and are subject to national and local laws and regulations, governing prospects, taxes, labour standards, occupational health, land use, environmental protection, mine safety and others which currently or in the future may have a substantial adverse impact on the Corporation. In order to comply with applicable laws, the Corporation may be required to incur significant capital or operating expenditures. Existing and possible future environmental legislation, regulation and action could cause additional expense, capital expenditures, restriction and delays in the activities of the Corporation, the extent of which cannot be reasonably predicted. Violations may require compensation of those suffering loss or damage by reason of the Corporation&#8217;s mining activities, and the Corporation may be fined if convicted of an offence under such legislation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Mining and exploration activities in Mexico and/or Canada may be affected in varying degrees by political instabilities and government regulations relating to the mining industry. Any changes in regulations or shifts in political conditions are beyond the Corporation&#8217;s control and may adversely affect the business. Operations may also be affected to varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriation of property, environmental legislation and mine safety. The status of Mexico as a developing country may make it more difficult for the Corporation to obtain any required financing for projects. The effect of all these factors cannot be accurately predicted. Notwithstanding the progress achieved in improving Mexican political institutions and revitalizing its economy, the present administration, or any successor government, may not be able to sustain the progress achieved. The Corporation does not carry political risk insurance.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Mexican Foreign Investment and Income Tax Laws</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Under the Foreign Investment Law of Mexico, there is no limitation on foreign capital participation in mining operations; however, the applicable laws may change in a way which may adversely impact the Corporation and its ability to repatriate profits. Under Mexican Income Tax Law, dividends are subject to a withholding tax. Corporations with their tax residence in Mexico are taxed on their worldwide income. Mexico levies a value-added tax, known as the IVA, which is an indirect tax levied on the value added to goods and services, and it is imposed on corporations that carry out activities within Mexican territory.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">During 2013, the Mexico Senate passed tax reform legislation, which took effect on January 1, 2014. The tax reform includes an increase in the corporate tax rate from 28% to 30%, the introduction of a special mining royalty of 7.5% on the profits derived from the sale of minerals, and the introduction of a mining royalty of 0.5% on the gross income derived from the sale of gold, silver and platinum. These changes may have a material impact on the Corporation&#8217;s future earnings and cash flows, and possibly on future capital investment decisions.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Foreign corrupt practices legislation.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation is subject to the <i>Foreign Corrupt Practices Act</i> (the &#8220;FCPA&#8221;), the <i>Corruption of Foreign Public Officials Act </i>(Canada) (&#8220;<b>CFPOA</b>&#8221;), and other laws that prohibit improper payments or offers of payments to foreign governments and their officials and political parties by persons and issuers as defined by the statutes, for the purpose of obtaining or retaining business. It is our policy to implement safeguards to discourage these practices by our employees; however, our existing safeguards and any future improvements may prove to be less than effective and our employees, consultants, sales underwriters or distributors may engage in conduct for which the Corporation might be held responsible. Violations of the FCPA, CFPOA, and/or other laws may result in criminal or civil sanctions and the Corporation may be subject to other liabilities, which could negatively affect our business, operating results and financial condition. The Corporation is also subject to the <i>Extractive Sector Transparency Measures Act</i> (Canada) (&#8220;<b>ESTMA</b>&#8221;), which requires us to maintain records of specific payments (including taxes, royalties, fees, production entitlements, bonuses, dividends, and infrastructure improvements) to all government entities in Canada and abroad, and to publicly disclose payments of $100,000 or more in any payment category on an annual basis within 150 days of our fiscal year end, to increase transparency and deter corruption in the extractive industry sector.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak5c72d83e-3cdf-4eb2-8781-07cd1afb6c3c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">22</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Factors Beyond the Corporation&#8217;s Control</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">There are a number of factors beyond the Corporation&#8217;s control. These factors include, but are not limited to, changes in government regulation, political changes, high levels of volatility in metal prices, availability of markets, availability of adequate transportation and smelting facilities, availability of capital, environmental factors and catastrophic risks, and amendments to existing taxes and royalties. These factors and their effects cannot be accurately predicted.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Environmental and Health and Safety Risks</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s operations are subject to environmental regulations promulgated by government agencies from time to time. There is no assurance that environmental regulations will not change in a manner that could have an adverse effect on the Corporation&#8217;s financial condition, liquidity or results of operations, and a breach of any such regulation may result in the imposition of fines and penalties.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Environmental legislation is constantly expanding and evolving in ways that impose stricter standards and more rigorous enforcement, with higher fines and more severe penalties for non-compliance, and increased scrutiny of proposed projects. There is an increased level of responsibility for companies, and trends towards criminal liability for officers and directors for violations of environmental laws, whether inadvertent or not. The cost of compliance with changes in governmental regulations has the potential to reduce the profitability of the Corporation&#8217;s operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Exploration activities and/or the pursuit of commercial production from the Corporation&#8217;s mineral claims may be subject to an environmental review process under environmental assessment legislation. Compliance with an environmental review process may be costly and may delay commercial production. Furthermore, there is the possibility that the Corporation would not be able to proceed with commercial production upon completion of the environmental review process if government authorities do not approve the proposed mine, or if the costs of compliance with government regulation adversely affect the commercial viability of the proposed mine.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The development and operation of a mine involves significant risks to personnel from accidents or catastrophes such as rock-falls, fires, explosions or collapses. These risks could result in damage or destruction of mineral properties, production facilities, casualties, personal injury, environmental damage, mining delays, increased production costs, monetary losses and legal liability. The Corporation may not be able to obtain insurance to cover these risks at economically feasible premiums. Insurance against certain environmental risks, including potential liability for pollution and other hazards as a result of the disposal of waste products occurring from production, is not generally available to companies within the mining industry. The Corporation may be materially adversely affected if it incurs losses related to any significant events that are not covered by its insurance policies.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has safety programs in place and continues to make further improvements. Safety meetings with employees and contractors are held on a regular basis to reinforce standards and practices. Despite these programs, the Corporation experienced a fatality at its Avino Mine in June 2014 and two fatalities at the San Gonzalo Mine in March 2016. While these fatalities did not materially affect operations, the Corporation considers health and safety of its workers, and others in the communities in which it operates, to be a top priority. In this regard, the Corporation is continually seeking to minimize the risk of safety incidents. The Corporation also reviews its insurance coverage on an annual basis to maintain its adequacy and relevancy.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreake98e4efc-34ca-4b9e-a589-f6335c33e21f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">23</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Risks Which Cannot Be Insured</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation maintains appropriate insurance for liability and property damage; however, the Corporation may be subject to liability for hazards that cannot be insured against, which, if such liabilities arise, could impact profitability and result in a decline in the value of the Corporation&#8217;s securities. The Corporation&#8217;s operations may involve the use of dangerous and hazardous substances; however, extensive measures are taken to prevent discharges of pollutants in the ground water and the environment. Although the Corporation will maintain appropriate insurance for liability and property damage in connection with its business, the Corporation may become subject to liability for hazards that cannot be insured against or which the Corporation may elect not to insure itself against due to high premium costs or other reasons. In the course of mining and exploration of mineral properties, certain risks and, in particular, unexpected or unusual geological operating conditions including rock bursts, cave-ins, fires, flooding and earthquakes, may occur. It is not always possible to fully insure against such risks and the Corporation may decide not to take out insurance against such risks as a result of high premiums or other reasons.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Risk of Secure Title or Property Interest</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">There can be no assurance that title to any property interest acquired by the Corporation or any of its subsidiaries is secured. Although the Corporation has taken reasonable precautions to ensure that legal title to its properties is properly documented, there can be no assurance that its property interests may not be challenged or impugned. Such property interests may be subject to prior unregistered agreements or transfers or other land claims, and title may be affected by undetected defects and adverse laws and regulations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In the jurisdictions in which the Corporation operates, legal rights applicable to mining concessions are different and separate from legal rights applicable to surface lands; accordingly, title holders of mining concessions in such jurisdictions must agree with surface land owners on compensation in respect of mining activities conducted on such land. The Corporation&#8217;s title may be affected by prior unregistered agreements or transfers or native land claims, and title may also be affected by undetected defects.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b><i>Tax Treatment of FT Shares</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Canadian tax treatment of mining activities and FT Shares constitutes a major consideration of an investment in the FT Shares for Canadian investors. There is no guarantee that the current tax laws and administrative practices of both the Canadian federal and provincial tax authorities will not be amended or construed in such a way that the tax considerations for a subscriber of FT Shares will be altered in a materially unfavourable way, and there is no guarantee that there will be no material differences of opinion between the Canadian federal and provincial tax authorities with respect to the tax treatment of the FT Shares, the status of such FT Shares or the activities contemplated by the Corporation&#8217;s exploration and development programs. There is no guarantee that the CEE incurred (or deemed to be incurred) by the Corporation, or the expected tax deductions claimed by investors, will be accepted by the Canada Revenue Agency (and any other corresponding provincial authority). See &#8220;<i>Certain Canadian Federal Income Tax Considerations</i>&#8221;.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakbfbff3de-21b1-4955-ab78-5b7a3cf90d25" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">24</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Notwithstanding its agreement to do so (see &#8220;<i>Description of The Securities to be Distributed &#8211; FT Shares</i>&#8221;), there is no guarantee that the Corporation will expend an amount equal to the gross aggregate purchase price for FT Shares on or prior to December 31, 2020 to incur qualifying CEE. If the Corporation does not expend an amount equal to the portion of the gross aggregate purchase price for FT Shares which is allocated to the FT Shares to incur qualifying CEE prior to December 31, 2020, it will be required to reduce the amount of CEE that it has renounced in favour of the Canadian subscribers for FT Shares and the Canadian subscribers will be reassessed accordingly. Canadian subscribers who are individuals will not be subject to penalties for any such reassessment and will not be subject to interest charges on such additional tax, if such tax is paid by April 30, 2021 but would be subject to interest charges if such tax is not paid by this date. The Corporation has agreed to fully indemnify each such subscriber for an amount equal to the amount of any tax payable under the Tax Act (and under corresponding provincial legislation) by the subscriber as a consequence of such reduction; however, there can be no certainty that the Corporation will have the necessary financial resources to fulfill its obligations under such indemnity.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Unauthorized Mining</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The mining industry in Mexico is subject to incursions by illegal miners or &#8220;lupios&#8221; who gain unauthorized access to mines to steal ore mainly by manual mining methods. In addition to the risk of losses and disruption of operations, these illegal miners pose a safety and security risk. The Corporation has taken security measures at its sites to address this issue and ensure the safety and security of its employees and contractors. These incursions and illegal mining activities can potentially compromise underground structures, equipment and operations, which may lead to production stoppages and impact the Corporation&#8217;s ability to meet production goals.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Commercialization Risk of Development and Exploration Stage Properties and Ability to Acquire Additional Commercially Mineable Mineral Rights</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s primary operating mineral properties are the Avino Mine and the San Gonzalo Mine. The San Gonzalo Mine has been in production for more than six years, under the ownership of the Corporation, and has generated positive cash flow from operations. The Avino Mine commenced commercial production in 2015 and has generated positive cash flow from operations during the years ended December 31, 2016 and 2018. The commercial viability of these mines and the decision to place them into commercial production was not established by a feasibility study.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Mineral exploration involves a high degree of risk. There is no assurance that commercially viable quantities of ore will be discovered at the Bralorne Mine Property, or any of the Corporation&#8217;s other exploration projects, or that its exploration or development projects will be brought into commercial production.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Most exploration projects do not result in the discovery of commercially mineable ore deposits and no assurance can be given that any anticipated level of recovery of ore reserves will be realized or that any identified mineral deposit will ever qualify as a commercially mineable (or viable) ore body which can be legally and economically exploited. Estimates of reserves, resources, mineral deposits and production costs can also be affected by such factors as environmental permitting regulations and requirements, weather, environmental factors, social dynamics in local communities, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Material changes in commodity prices, mineral resources, grades, dilution or recovery rates, or other project parameters may affect the economic viability of any project. The Corporation&#8217;s future growth and productivity will depend, in part, on the ability to identify and acquire additional commercially mineable mineral rights, and on the costs and results of continued exploration and potential development programs. Mineral exploration and development is highly speculative in nature and is frequently non-productive. Substantial expenditures are required to:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Establish mineral resources through drilling and metallurgical and other testing techniques;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Determine metal content and metallurgical recovery processes to extract metal from the ore;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Evaluate the economic viability or feasibility; and,</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Construct, renovate, expand or modify mining and processing facilities.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakffeac4cf-11c5-4c1f-a03c-2372c4dacb92" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">25</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In addition, if potentially economic mineralization is discovered, it could take several years from the initial phases of exploration until production is possible. During this time, the economic feasibility of production may change. As a result of these uncertainties, there can be no assurance that the Corporation will successfully acquire additional commercially mineable (or viable) mineral rights.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Development projects usually have no operating history upon which to base estimates of future cash flow</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Estimates of proven and probable mineral reserves, measured and indicated mineral resources, and inferred mineral resources are, to a large extent, based upon detailed geological and engineering analysis. Further, mineral resources that are not mineral reserves have not demonstrated economic viability. At this time, none of the Corporation&#8217;s properties have defined ore-bodies with mineral reserves. Due to the uncertainty of inferred mineral resources, there is no assurance that inferred mineral resources will be upgraded to either measured or indicated mineral resources or to proven or probable mineral reserves as a result of continued definition.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Because mines have limited lives, the Corporation must continually replace and expand its mineral resources as the Corporation&#8217;s mines produce metals. The life-of-mine estimates for the Corporation&#8217;s mines are estimates which may vary based on underlying assumptions and parameters. The ability of the Corporation to maintain or increase its annual production of metals and the Corporation&#8217;s future growth and productivity will be dependent in significant part on its ability to identify and acquire additional commercially mineable mineral rights, to bring new mines into production, to expand mineral resources at existing mines. It is further impacted by the costs and results of continued exploration and potential development programs.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Fluctuations in the Price of Consumed Commodities</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Prices and availability of commodities or inputs consumed or used in connection with exploration, development and mining, such as diesel, oil, electricity, chemicals and reagent, fluctuate and affect the costs of production at the Corporation&#8217;s operations. These fluctuations can be unpredictable, can occur over short periods of time and may have a materially adverse impact on operating costs or the timing and costs of various projects.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Fluctuation in Foreign Currency Exchange Rates</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation maintains bank accounts in Canadian dollars, U.S. dollars and Mexican pesos. The Corporation earns revenue in U.S. dollars while its costs are incurred in Canadian dollars, U.S. dollars and Mexican pesos. An appreciation in the Mexican peso and/or Canadian dollar against the U.S. dollar will increase operating and capital expenditures as reported in U.S. dollars. A decrease in the Canadian dollar and/or the Mexican peso against the U.S. dollar will result in a loss to the Corporation to the extent that the Corporation holds funds in Canadian dollars and/or Mexican peso. The Corporation has not used hedging instruments in managing its foreign exchange risk, but may do so in the future. Such hedging instruments can also be subject to material gains and losses.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd8ad7ecf-b74d-43a4-9869-c21e3cebca75" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">26</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Dependency on Key Personnel</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s success and viability depends, in large part, on its ability to attract and maintain qualified key management personnel. Competition for such personnel is intense and may impact the ability to attract and retain such personnel in Canada and Mexico. The Corporation&#8217;s growth and viability has depended, and will continue to depend, on the efforts of key management personnel including, but not limited to, David Wolfin, President, Chief Executive Officer and director; Carlos Rodriguez, Chief Operating Officer; and Nathan Harte, Chief Financial Officer. The loss of any key management personnel may have a material adverse effect on the Corporation, its business and its financial position. The Corporation has employment contracts with these employees but does not have key-man life insurance. The Corporation provides these key employees and other employees with long-term incentive compensation, through the form of stock options, grants of restricted share units, and annual bonuses, all of which are designed to provide adequate incentive for them to diligently pursue the business objectives of the Corporation, retain these employees, and align their interests with those of the Corporation&#8217;s shareholders.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Conflicts of Interest of Directors and Officers</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Certain of the Corporation&#8217;s directors and officers may continue to be involved in a wide range of business activities through their direct and indirect participation in corporations, partnerships or joint ventures, some of which are in the same business as the Corporation. Situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Corporation. The directors and officers of the Corporation are required by law and the Corporation&#8217;s Code of Business Conduct &amp; Ethics to act in the best interests of the Corporation. They may have the same obligations to the other companies and entities for which they act as directors or officers. The discharge by the directors and officers of their obligations to the Corporation may result in a breach of their obligations to these other companies and entities and, in certain circumstances, this could expose the Corporation to liability to those companies and entities. Similarly, the discharge by the directors and officers of their obligations to these other companies and entities could result in a breach of their obligation to act in the best interests of the Corporation. Such conflicting legal obligations may expose the Corporation to liability to others and impair its ability to achieve its business objectives.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Concentration of Customers</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation produces concentrates containing silver and gold. Concentrates are the product of the processing of ore mined by the Corporation at its processing plants. The Corporation sells its concentrates to metals traders and smelters. During the year ended December 31, 2018, a limited number of customers accounted for all of the Corporation&#8217;s revenues, of which one customer accounted for more than 68% of revenues. The Corporation believes that a small number of customers will continue to represent a significant portion of its total revenue. However, the Corporation does not consider itself economically dependent upon any single customer or combination of customers due to the existence of other potential metals traders or smelters capable of purchasing the Corporation&#8217;s production. There is a risk that the Corporation could be subject to limited smelter availability and capacity, or it may not be able to maintain its current significant customers or secure significant new customers on similar terms, any of which may have a material adverse effect on the Corporation&#8217;s business, financial condition, operating results and cash flows.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Risks Associated with Transportation of Concentrate</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The concentrates produced by the Corporation have significant value and are loaded onto road vehicles for transport to smelters in Mexico or to sea ports for export to smelters in foreign markets, such as Europe and Asia, where the metals are extracted. The geographic location of the Corporation&#8217;s operating mines in Mexico and trucking routes taken through the country to the smelters and ports for delivery, give rise to risks including concentrate theft, road blocks and terrorist attacks, losses caused by adverse weather conditions, delays in delivery of shipments, and environmental liabilities in the event of an accident or spill.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakbd8c6309-d826-4a5e-b127-b72c71b47fb0" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">27</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Theft of Concentrate</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In addition, the Corporation may have significant concentrate inventories at its facilities or on consignment at other warehouses awaiting shipment. The Corporation has taken steps to secure its concentrate, whether in storage or in transit. The Corporation has insurance coverage for its inventory while in transit; however, recovery of the full market value may not always be possible. Despite these risk mitigation measures, there remains a continued risk that theft of concentrate may have a material impact on the Corporation&#8217;s financial results.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Acquisition Strategy</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">As part of Avino&#8217;s business strategy, the Corporation has made acquisitions in the past and continues to seek new acquisition opportunities. The opportunities sought by the Corporation include operating mines, and advanced exploration and development opportunities, with a primary focus on silver and/or gold. As a result, the Corporation may from time to time acquire additional mineral properties or securities of issuers which hold mineral properties. In pursuit of such opportunities, the Corporation may fail to select appropriate acquisition candidates or negotiate acceptable arrangements, including arrangements to finance acquisitions or integrate the acquired businesses and their personnel into the Corporation, and may fail to assess the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates, or to achieve identified and anticipated operating and financial results. Acquisitions may result in unanticipated costs, diversion of management attention from existing businesses, and the potential loss of the Corporation&#8217;s key employees or of those of the acquired business. The Corporation cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or that any acquisitions or business arrangements completed will ultimately benefit the Corporation. Acquisitions may involve a number of special risks, circumstances or legal liabilities. These and other risks related to acquiring and operating acquired properties and companies could have a material adverse effect on the Corporation&#8217;s results of operations and financial condition. Further, to acquire properties and companies, the Corporation may be required to use available cash, incur debt, issue additional securities or a combination of any of these. This could affect the Corporation&#8217;s future flexibility and ability to raise capital, to operate, explore and develop its properties and could dilute existing shareholders and decrease the price of the common shares of the Corporation. There may be no right or ability for the Corporation&#8217;s shareholders to evaluate the merits or risks of any future acquisition undertaken by the Corporation, except as required by applicable laws and regulations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Community Relations and Social License to Operate</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s relationship with the communities in which it operates is critical to ensure the future success of its existing operations and the construction and development of its projects. While the Corporation&#8217;s relationships with the communities in which it operates are believed to be strong, there is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations (&#8220;<b>NGOs</b>&#8221;), some of which oppose globalization and resource development, are often vocal critics of the mining industry and its practices. Publicity generated by such NGOs or others related to extractive industries generally, or its operations specifically, could have an adverse effect on the Corporation&#8217;s reputation or financial condition and may impact its relationship with the communities in which it operates. While the Corporation believes that it operates in a socially responsible manner, there is no guarantee that the Corporation&#8217;s efforts in this respect will mitigate this potential risk.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak3ef6c81e-54f1-4247-b2b6-d59955eb8847" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">28</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Volatility of Share Price</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Trading prices of Avino&#8217;s Common Shares may fluctuate in response to a number of factors, many of which are beyond the control of the Corporation. In addition, the stock market in general, and the market for gold and silver mining companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of such companies. These broad market and industry factors may adversely affect the market price of the Corporation&#8217;s shares, regardless of operating performance.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In the past, securities class-action litigation has often been instituted following periods of volatility in the market price of securities of other companies. Such litigation, if instituted against the Corporation, could result in substantial costs and a diversion of management&#8217;s attention and resources.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Shareholder Activism</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Shareholder activism is on the rise in North America. Shareholder activism could result in substantial costs and a diversion of management&#8217;s attention and resources. Shareholder activism can also taint a Corporation&#8217;s reputation, which may have negative effects on the Corporation and all of its stakeholders. There is no guarantee that the Corporation will not be the subject of shareholder activism in the future, nor that the Corporation would be successful in defending itself and shareholder interests against shareholder activists.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Substantial Decommissioning and Reclamation Costs</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation reviews and reassesses its reclamation obligations at each of its mines based on updated mine life estimates, rehabilitation and closure plans. As at December 31, 2018, the Corporation had a provision for approximately US$10.8 million on its Consolidated Statements of Financial Position for the estimated present value of future reclamation and remediation associated with the expected retirement of its mineral properties, plant, and equipment. The present value of these reclamation provisions may be subject to change as a result of management&#8217;s estimates of ultimate decommissioning and reclamation costs, changes in the remediation technology or changes to applicable laws, regulations and interest rates. Such changes will be recorded in the accounts of the Corporation as they occur.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The costs of performing the decommissioning and reclamation must be funded by the Corporation&#8217;s operations. These costs can be significant and are subject to change. The Corporation cannot predict what level of decommissioning and reclamation may be required in the future by regulators. If the Corporation is required to comply with significant additional regulations or if the actual cost of future decommissioning and reclamation is significantly higher than current estimates, this could have an adverse impact on the Corporation&#8217;s future cash flows, earnings, results of operations and financial condition.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Officers and Directors Are Indemnified Against All Costs, Charges and Expenses Incurred by Them</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s Articles contain provisions limiting the liability of its officers and directors for all acts, receipts, neglects or defaults of themselves and all of the other officers or directors for any other loss, damage or expense incurred by the Corporation which happen in the execution of the duties of such officers or directors. Such limitations on liability may reduce the likelihood of derivative litigation against the Corporation&#8217;s officers and directors and may discourage or deter shareholders from suing the officers and directors based upon breaches of their duties to the Corporation, though such an action, if successful, might otherwise benefit the Corporation and its shareholders.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak9cbbe377-86dd-4c52-a0f0-e3a7f4560713" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">29</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Enforcement of Legal Actions or Suits</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">It may be difficult to enforce suits against the Corporation or its directors and officers. The Corporation is organized and governed under the BCBCA and is headquartered in British Columbia, Canada. Most of the Corporation&#8217;s directors and most officers are residents of Canada, and all of the Corporation&#8217;s assets are located outside of Canada. Consequently, it may be difficult for Canadian investors to realize in the Canada upon judgments of Canadian courts predicated upon civil liabilities under applicable securities legislation. There is substantial doubt whether an original action could be brought successfully in another jurisdiction against any of such persons predicated solely upon such civil liabilities.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Dilution of Shareholders&#8217; Interests as a Result of Issuance of Incentive Stock Options or RSU&#8217;s to Employees, Directors, Officers and Consultants</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has granted, and in the future may grant, to directors, officers, insiders, employees, and consultants, options to purchase common shares, and restricted share units, as non-cash incentives to those persons. Such options have been, and may in future be, granted at exercise prices equal to market prices, or at such prices as allowable under the policies of the TSX. The issuance of additional shares will cause existing shareholders to experience dilution of their ownership interests. As at December 31, 2018, there were outstanding share options exercisable into 2,917,500 Common Shares and RSU&#8217;s outstanding for the issuance of a further 1,235,301 Common Shares which, if vested and exercised or issued, would represent approximately 6.3% of the Corporation&#8217;s issued and outstanding shares. If all of these share options and RSU&#8217;s are exercised and issued, such issuance will also cause a reduction in the proportionate ownership and voting power of all other shareholders. The dilution may result in a decline in the market price of the Corporation&#8217;s shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Dilution of Shareholders&#8217; Interests as a Result of Issuances of Additional Shares</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Depending on the outcome of the Corporation&#8217;s exploration programs and mining operations, the Corporation may issue additional shares to finance additional programs and mining operations or to acquire additional properties. In the event that the Corporation is required to issue additional shares or decides to enter into joint arrangements with other parties in order to raise capital through the sale of equity securities, investors&#8217; interests in the Corporation will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Credit and Counterparty Risk</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations. The Corporation&#8217;s credit risk relates primarily to cash and cash equivalents, trade receivables in the ordinary course of business, and value added tax refunds primarily due from the Mexican taxation authorities, and other receivables. The Corporation sells and receives payment upon delivery of its concentrates primarily through international organizations. These are generally large and established organizations with good credit ratings. Payments of receivables are scheduled, routine and received within the specific terms of the contract. If a customer or counterparty does not meet its contractual obligations, or if they become insolvent, the Corporation may incur losses for products already shipped and be forced to sell greater volumes of concentrate than intended in the spot market, or there may be no market for the concentrates, and the Corporation&#8217;s future operating results may be materially adversely impacted as a result.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak79a53b40-d788-4dae-85a9-d49631996e17" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">30</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>Liquidity Risk</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they arise. The Corporation has a planning and budgeting process in place to help determine the funds required to support the Corporation&#8217;s normal operating requirements on an ongoing basis and its expansion plans. As at December 31, 2018, the Corporation had net working capital (current assets in excess of current liabilities) of US$13.1 million, including approximately US$3.25 million in cash. The Corporation believes it has sufficient net working capital to meet operating requirements as they arise for at least the next twelve months, but there can be no assurance that a sudden significant decrease in silver prices (and, to a lesser extent, copper and gold prices), or an unforeseen liability, or other matter affecting the operations of the business might arise which will have a material impact on the Corporation&#8217;s sufficiency of cash reserves to meet operating requirements. In addition, a large acquisition or significant change in capital plans could significantly change the cash and working capital required by the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>We have Discretion with Respect to the Use of Proceeds from this Offering.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Management will have broad discretion with respect to the use of the net proceeds from this Offering and investors will be relying on the judgment of management regarding the application of these proceeds. At the date of this Prospectus Supplement, we intend to use the net proceeds from this Offering as described under the heading &#8220;Use of Proceeds&#8221;. However, our needs may change as our business and the industry we address evolve. As a result, the proceeds to be received in this Offering may be used in a manner significantly different from our current expectations. The failure by management to apply these funds effectively could have a material adverse effect on our business.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>An Investment in the Offered Shares May Result in the Loss of an Investor&#8217;s Entire Investment.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">An investment in the Offered Shares of the Corporation is speculative and may result in the loss of an investor&#8217;s entire investment. Only potential investors who are experienced in high risk investments and who can afford to lose their entire investment should consider an investment in the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>There is No Assurance of a Sufficient Liquid Trading Market for the Corporation&#8217;s Common Shares in the Future.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Shareholders of the Corporation may be unable to sell significant quantities of Common Shares into the public trading markets without a significant reduction in the price of their Common Shares, or at all. There can be no assurance that there will be sufficient liquidity of the Corporation&#8217;s Common Shares on the trading market, and that the Corporation will continue to meet the listing requirements of the TSX or the NYSE American for its Common Shares or achieve the listing of its securities on any other public stock exchange.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i>The Corporation has not Paid Dividends and may not pay Dividends in the Foreseeable Future.</i></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Payment of dividends on the Corporation&#8217;s Common Shares is within the discretion of the board of directors of the Corporation and will depend upon the Corporation&#8217;s future earnings, if any, its capital requirements and financial condition, and other relevant factors. The Corporation anticipates that all available funds will be invested to finance the growth of its business for the foreseeable future.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak55dd5bd0-1634-4e40-bdf0-628163afeab1" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">31</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>PRIOR SALES</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Common Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following table summarizes details of the Common Shares issued by the Corporation during the 12-month period prior to the date of this Prospectus Supplement:</p><p style="MARGIN: 0px">&nbsp;</p><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" bgcolor="#ffffff" border="0"><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="20%"><p style="MARGIN: 0px" align="center"><b>Month Issued</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="18%"><p style="MARGIN: 0px" align="center"><b>Number of Securities</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center"><b>Security</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="16%" colspan="2"><p style="MARGIN: 0px" align="center"><b>Price per Security</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">July 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">1,678,825</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.53-0.68</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">June 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">948,802</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.46-0.56</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">May 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">228,768</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.41-0.43</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">April 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">419,529<sup>(2)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.56-0.61</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">March 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">842,887<sup> (2)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.60-0.66</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">February 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">376,589<sup> (2)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.60-0.64</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">January 2019</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">458,600<sup> (2)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.58-0.67</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">December 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">Nil</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">N/A</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">N/A</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">November 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">Nil</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">N/A</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">N/A</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">October 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">Nil</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">N/A</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">N/A</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" rowspan="4" width="20%"><p style="MARGIN: 0px">September 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">7,105,658<sup>(1)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares </p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.65</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">151,800<sup>(2)</sup> </p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">US$0.87-0.91 </p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">248,893<sup>(3)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">$0.89</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">25,765<sup>(3)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">Common Shares</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">$1.02</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">August, 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">Nil</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">N/A</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">N/A</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px">July 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">Nil</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">N/A</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">N/A</p></td></tr></table><p style="MARGIN: 0px">_____________&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(1) </sup>Issued pursuant to an initial public offering in the U.S. of shares and warrants.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(2) </sup>Issued pursuant to the ATM Offering or a previous ATM offering in the U.S.<i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(3) </sup>Issued pursuant to the vesting of RSUs.<i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Warrants</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following table summarizes details of the share purchase warrants granted by the Corporation during the 12-month period prior to the date of this Prospectus Supplement:</p><p style="MARGIN: 0px">&nbsp;</p><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" bgcolor="#ffffff" border="0"><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="20%"><p style="MARGIN: 0px" align="center"><b>Month Grant</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="18%"><p style="MARGIN: 0px" align="center"><b>Number of Securities</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="25%"><p style="MARGIN: 0px" align="center"><b>Security</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="16%"><p style="MARGIN: 0px" align="center"><b>Exercise Price per Security (US$)</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px" align="center">September 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">7,175,846</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="25%"><p style="MARGIN: 0px" align="center">Warrants<sup>(1)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="16%"><p style="MARGIN: 0px" align="center">US$0.80</p></td></tr></table><p style="MARGIN: 0px">_____________&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(1) </sup>Issued pursuant to an initial public offering in the U.S. of shares and warrants.<i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Stock Options</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following table summarizes details of the stock options granted by the Corporation during the 12-month period prior to the date of this Prospectus Supplement:</p><p style="MARGIN: 0px">&nbsp;</p><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" bgcolor="#ffffff" border="0"><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="20%"><p style="MARGIN: 0px" align="center"><b>Month Grant</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="18%"><p style="MARGIN: 0px" align="center"><b>Number of Securities</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="25%"><p style="MARGIN: 0px" align="center"><b>Security</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="16%"><p style="MARGIN: 0px" align="center"><b>Exercise Price per Security ($)</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px" align="center">August 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">497,500</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="25%"><p style="MARGIN: 0px" align="center">Stock Options<sup>(1)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="16%"><p style="MARGIN: 0px" align="center">$1.30</p></td></tr></table><p style="MARGIN: 0px">_____________&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(1) </sup>Options granted pursuant to the Corporation&#8217;s Stock Option Plan<i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(2) </sup>Of which, 42,500 have been cancelled and no shares under these stock options have been issued.<i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Restricted Share Units (&#8220;RSUs&#8221;)</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following table summarizes details of the RSUs granted by the Corporation during the 12-month peiod prior to the date of this Prospectus Supplement:</p><p style="MARGIN: 0px">&nbsp;</p><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" bgcolor="#ffffff" border="0"><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="20%"><p style="MARGIN: 0px" align="center"><b>Month Grant</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="18%"><p style="MARGIN: 0px" align="center"><b>Number of Securities</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="25%"><p style="MARGIN: 0px" align="center"><b>Security</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" width="16%"><p style="MARGIN: 0px" align="center"><b>Exercise Price per Security ($)</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="20%"><p style="MARGIN: 0px" align="center">August 2018</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="18%"><p style="MARGIN: 0px" align="center">1,081,500<sup>(2)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="25%"><p style="MARGIN: 0px" align="center">RSU<sup>(1)</sup></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="16%"><p style="MARGIN: 0px" align="center">N/A </p></td></tr></table><p style="MARGIN: 0px">_____________&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(1) </sup>RSU granted pursuant to the Corporation&#8217;s Restricted Share Unit Plan.<i></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><sup>(2) </sup>Of which, 107,023 have been cancelled.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaka30f2041-a4bc-410f-93da-4c6886a78144" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">32</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>TRADING PRICE</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Common Shares are listed and posted for trading on the NYSE American and on the TSX under the symbol &#8220;ASM&#8221;. The following sets forth the market price range on the NYSE American (expressed in U.S. Dollars) and on the TSX (expressed in Canadian dollars) for each of the past full twelve (12) months and through July 24, 2019 and for each quarter for the past fiscal year.</p><p style="MARGIN: 0px">&nbsp;</p><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px"><b>NYSE AMERICAN</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px"><b>TSX</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px">(United States Dollars)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px">(Canadian Dollars)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px"><b>High</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px"><b>Low</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px"><b>High</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px"><b>Low</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN: 0px"><b>Last Twelve Months</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">July 1-24, 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.80</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.51</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.06</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.68</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">June 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.59</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.44</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.77</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.60</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">May 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.55</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.39</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.73</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.53</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">April 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.62</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.51</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.82</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.69</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">March 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.70</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.60</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.94</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.79</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">February 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.75</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.60</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.96</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.79</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">January 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.70</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.58</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.96</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.75</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">December 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.61</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.50</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.74</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.65</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">November 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.69</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.53</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.88</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.71</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">October 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.73</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.55</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.95</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.70</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">September 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.99</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.56</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.30</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.74</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">August 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.18</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.85</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.49</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.15</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">July 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.31</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.08</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.72</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.30</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">June 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.34</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.20</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.74</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.60</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px"><b>For the Quarter Ended</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">June 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.62</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.39</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.82</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.53</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">March 31, 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.75</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.58</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.96</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.75</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">December 31, 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.73</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.50</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.95</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.65</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">September 30, 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.31</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.56</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.74</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.74</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>ELIGIBILITY FOR INVESTMENT</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In the opinion of Harper Grey LLP, Canadian counsel to the Corporation, and Stikeman Elliott LLP, Canadian counsel to the Underwriter, based on the current provisions of the <i>Income Tax Act </i>(Canada), the regulations thereunder (collectively, the &#8220;<b>Tax Act</b>&#8221;), and the proposals to amend the Tax Act and the regulations publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof, an investment in the Offered Shares will be a &#8220;qualified investment&#8221; under the Tax Act at a particular time for a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered education savings plan, a registered disability savings plan, and a tax-free savings account (each, a &#8220;<b>Registered Plan</b>&#8221;), and a deferred profit sharing plan (a &#8220;<b>DPSP</b>&#8221;) provided that, at such time the Offered Shares are listed on a &#8220;designated stock exchange&#8221; (which currently includes the TSX and the NYSE American) as defined in the Tax Act.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Notwithstanding that an investment in the Offered Shares may be a &#8220;qualified investment&#8221; for a Registered Plan, if the Offered Shares are a &#8220;prohibited investment&#8221; within the meaning of the Tax Act for a Registered Plan, the holder or annuitant of the Registered Plan, as the case may be, will be subject to penalty taxes as set out in the Tax Act. The Offered Shares will generally not be a prohibited investment for a Registered Plan if the holder or annuitant, as the case may be, (a) deals at arm&#8217;s length with the Corporation for the purposes of the Tax Act, and (b) does not have a &#8220;significant interest&#8221; (as defined for purposes of the prohibited investment rules in the Tax Act) in the Corporation. In addition, the Offered Shares will not be a prohibited investment if such securities are &#8220;excluded property&#8221; (as defined in the Tax Act for purposes of the prohibited investment rules) for a Registered Plan.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak8037f099-b15b-4a66-b9b9-5f88ff40c327" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">33</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Prospective Canadian purchasers who intend to invest through a Registered Plan should consult their own tax advisers with respect to whether the Offered Shares would be a prohibited investment having regard to their particular circumstances. It would be highly unusual for a Registered Plan or a DPSP to purchase FT Shares directly, as such Registered Plan or DPSP would not be able to use the tax deductions with respect to the FT Shares described below under the heading &#8220;<i>Certain Canadian Federal Income Tax Considerations</i>&#8221;. Prospective purchasers who intend to hold FT Shares in a Registered Plan or a DPSP are urged to consult their own tax advisors.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>General</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following is a general summary, as of the date hereof, of the principal Canadian federal income tax considerations under the Tax Act generally applicable to a holder who acquires, as beneficial owner, Common Shares or an initial purchaser, as beneficial owner, of FT Shares pursuant to the Offering, and who, for purposes of the Tax Act and at all relevant times, holds Common Shares or FT Shares as capital property and deals at arm&#8217;s length with, and is not affiliated with, the Corporation, the Underwriter, and any subsequent purchaser of such securities. The Common Shares or FT Shares will generally be considered capital property to a purchaser unless either the purchaser holds or uses or is deemed to hold or use such Common Shares or FT Shares in the course of carrying on a business of buying and selling securities or the purchaser has acquired or has been deemed to acquire the Common Shares or FT Shares in a transaction or transactions consider to be an adventure or concern in the nature of trade. A holder who meets all of the foregoing requirements is referred to as a &#8220;<b>Holder</b>&#8221; herein, and this summary only addresses such Holders.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This summary is not applicable to a Holder: (i) that is a &#8220;financial institution&#8221;, as defined in the Tax Act for purposes of the mark-to-market rules in the Tax Act, (ii) that is a &#8220;specified financial institution&#8221;, as defined in the Tax Act, (iii) that holds an interest in which is a &#8220;tax shelter investment&#8221; as defined in the Tax Act, (iv) that has elected to report its Canadian tax results in a currency other than the Canadian currency, (v) that is a partnership or trust, (vi) that has entered into or will enter into a &#8220;derivative forward agreement&#8221;, as that term is defined in the Tax Act, with respect to the Offered Shares, or (vii) that acquired FT Shares and is a &#8220;principal business corporation&#8221; as defined in the Tax Act or whose business includes trading or dealing in rights, licences or privileges to explore for, drill or take minerals, oil, natural gas or related hydrocarbons. Any such Holders should consult their own tax advisors.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Additional considerations, not discussed herein, may be applicable to a Holder that is a corporation resident in Canada and is, or becomes, controlled by a non-resident corporation for purposes of the &#8220;foreign affiliate dumping&#8221; rules in section 212.3 of the Tax Act. Such Holders should consult their own tax advisors with respect to the consequences of acquiring the Common Shares or FT Shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This summary assumes that the Corporation will make all necessary tax filings in respect of the issuance of the FT Shares and the renunciation of CEE in the manner and within the time required by the Tax Act, that the Corporation will incur or be deemed to incur sufficient qualifying CEE to enable it to renounce to Holders of the FT Shares all of the CEE covenanted to be renounced by the Corporation pursuant to the FT Subscription Agreement(s) effective on the dates set out therein, that all expenses discussed herein will be reasonable in amount, and that the Corporation and each subscriber will at all times be in full compliance with all relevant representations, warranties and covenants to be contained in the FT Subscription Agreement(s). This summary also assumes that the Corporation will be a &#8220;principal business corporation&#8221; (within the meaning of the Tax Act) at all material times and that the FT Shares, when issued, will be &#8220;flow-through shares&#8221; (within the meaning of the Tax Act), and will not be &#8220;prescribed shares&#8221; for purposes of the definition of &#8220;flow-through share&#8221; in subsection 66(15) of the Tax Act. If any of the above assumptions are incorrect, the Corporation may be unable to renounce some or all of the CEE which it has agreed to renounce in the FT Subscription Agreement(s).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakf2697e17-b075-4a28-bb13-4dd910ab5b18" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">34</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">This summary is based on the provisions of the Tax Act in force as of the date hereof, all specific proposals to amend the Tax Act that have been publicly and officially announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the &#8220;<b>Proposed Amendments</b>&#8221;) and our understanding of the current administrative and assessing policies and practices of the Canada Revenue Agency (the &#8220;<b>CRA</b>&#8221;) published in writing prior to the date hereof. This summary assumes the Proposed Amendments will be enacted in the form proposed. However, no assurance can be given that the Proposed Amendments will be enacted in their current form, or at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except for the Proposed Amendments, does not take into account or anticipate any changes in the law or any changes in the CRA&#8217;s administrative and assessing policies or practices, whether by legislative, governmental or judicial action or decision, nor does it take into account or anticipate any other federal or any provincial, territorial or foreign tax considerations, which may differ significantly from those discussed herein. Any particular Holder should consult their own tax advisors with respect to provincial, territorial or foreign tax considerations. <b>This summary is not intended to be, nor should it be construed to be, legal or tax advice to any particular Holder, and no representations with respect to the income tax consequences to any Holder are made. Consequently, Holders should consult their own tax advisors with respect to the tax consequences applicable to them, having regard to their own particular circumstances. The discussion below is qualified accordingly.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice or representation to any Holder. Accordingly, Holders should consult their own tax advisors with respect to their particular circumstances.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Taxation of Resident Holders</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following portion of this summary applies to Holders (as defined above) who, for the purposes of the Tax Act, are or are deemed to be resident in Canada at all relevant times (herein, &#8220;<b>Resident Holders</b>&#8221;) and this portion of the summary only addresses such Resident Holders. Certain Resident Holders who might not otherwise be considered to hold their Common Shares as capital property may be entitled, in certain circumstances, to treat their Common Shares as capital property by making an irrevocable election under subsection 39(4) of the Tax Act. A Resident Holder should consult its own tax advisor with respect to whether the election is available and advisable in its particular circumstances.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Taxation of Dividends</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">A Resident Holder will be required to include in computing income for a taxation year any dividends received, or deemed to be received, in the year by the Resident Holder on the Offered Shares. In the case of a Resident Holder that is an individual (other than certain trusts), such dividends will be subject to the gross-up and dividend tax credit rules normally applicable under the Tax Act to taxable dividends received from taxable Canadian corporations, including the enhanced gross-up and dividend tax credit provisions where the Corporation designates the dividend as an &#8220;eligible dividend&#8221; in accordance with the provisions of the Tax Act. There may be restrictions on the ability of the Corporation to designate any dividend as an &#8220;eligible dividend&#8221;, and the Corporation has made no commitments in this regard.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">A dividend received or deemed to be received by a Resident Holder that is a corporation must be included in computing its income, but will generally be deductible in computing the corporation&#8217;s taxable income, subject to all of the rules and restrictions under the Tax Act in that regard. In certain circumstances, subsection 55(2) of the Tax Act will treat a taxable dividend received by a Resident Holder that is a corporation as proceeds of disposition or a capital gain. A corporation that is a &#8220;private corporation&#8221; (as defined in the Tax Act) or any other corporation controlled (whether because of a beneficial interest in one or more trusts or otherwise) by or for the benefit of an individual (other than a trust) or a related group of individuals (other than trusts), generally will be liable to pay an additional tax (refundable under certain circumstances) under Part IV of the Tax Act on dividends received or deemed to be received on the Offered Shares in a year to the extent such dividends are deductible in computing taxable income for the year.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak7db0b30b-c1da-4f8f-94ab-69fdf18ec5dd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">35</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Paid-Up Capital</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Under the Tax Act, the Corporation will be required for purposes of the Tax Act to reduce the &#8220;paid-up capital&#8221; (as defined in the Tax Act) of its Common Shares by an amount equal to 50% of the CEE renounced in respect of the FT Shares. The reduction may impact on the income tax treatment of certain potential subsequent dealings with the FT Shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Disposition of Offered Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">A Resident Holder who disposes, or is deemed to dispose of, an Offered Share generally will realize a capital gain (or capital loss) equal to the amount, if any, by which the proceeds of disposition, net of any reasonable costs of disposition, are greater (or are less) than the adjusted cost base to the Resident Holder of such Offered Shares immediately before the disposition or deemed disposition. The taxation of capital gains and losses is generally described below under the heading &#8220;<i>Capital Gains and Capital Losses</i>&#8221;. For purposes of the Tax Act, a FT Share will be deemed to have been acquired by the Holder at a cost of nil, and this cost must in general terms be averaged with the adjusted cost base of all other Common Shares held by the Holder at the relevant time to determine the Holder&#8217;s adjusted cost base of all Offered Shares and any other Common Shares held by such Holder. A Holder who disposes of FT Shares will retain the entitlement to receive renunciations of CEE from the Corporation as described below as well as the ability to deduct any CEE previously deemed to have been incurred by the Holder (subject to the rules applicable to a corporate Holder on an acquisition of control), and a subsequent purchaser of such FT Shares will not be entitled to any renunciations of CEE in respect thereof.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Capital Gains and Capital Losses</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Generally, a Resident Holder is required to include in computing income for a taxation year one-half of the amount of any capital gain (a &#8220;<b>taxable capital gain</b>&#8221;) realized by the Resident Holder in such taxation year. Subject to and in accordance with the rules contained in the Tax Act, a Resident Holder is required to deduct one-half of the amount of any capital loss (an &#8220;<b>allowable capital loss</b>&#8221;) realized in a particular taxation year against taxable capital gains realized by the Resident Holder in the year. Allowable capital losses not so deductible in a particular taxation year may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year against net taxable capital gains realized in such years, to the extent and under the circumstances described in the Tax Act.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The amount of any capital loss realized by a Resident Holder that is a corporation on the disposition or deemed disposition of a Common Share may be reduced by the amount of any dividends received or deemed to have been received by such Resident Holder on such shares, to the extent and under the circumstances described in the Tax Act. Similar rules apply where a corporation is a member of a partnership or a beneficiary of a trust that owns Common Shares, directly or indirectly. Corporations to whom these rules may be relevant should consult their own tax advisors.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">A Resident Holder that is throughout the relevant taxation year a &#8220;Canadian-controlled private corporation&#8221; (as defined in the Tax Act) may be liable to pay an additional tax (refundable in certain circumstances) on certain investment income, including taxable capital gains. Such Resident Holders should consult their own tax advisors.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd9ebe155-cecd-4db2-a5f2-afb8fe877705" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">36</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Alternative Minimum Tax</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Capital gains realized and dividends received or deemed to be received by a Resident Holder that is an individual or a trust, other than certain specified trusts, may give rise to alternative minimum tax under the Tax Act. Resident Holders should consult their own tax advisors in this regard.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Renunciation of CEE in Respect of FT Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Subject to certain limitations and restrictions contained in the Tax Act, if the Corporation incurs certain CEE pursuant to the FT Subscription Agreement(s), it will be entitled to renounce to an initial Holder of the FT Shares, with an effective date on or before December 31, 2019, an amount of such CEE equal to the gross aggregate purchase price paid by such Holder for FT Shares, and the CEE so renounced will be deemed to have been incurred by such Holder as CEE on the effective date of the renunciation. The Tax Act contains a one-year &#8220;look-back&#8221; rule that, if certain conditions are satisfied, will permit the Corporation to renounce CEE incurred (or deemed to have been incurred) by it by the end of 2020 to the initial Holders of FT Shares effective on December 31, 2019. In other words, qualified initial Holders of FT Shares would be deemed to have incurred the CEE on December 31, 2019 even though the Corporation may not have incurred the expenditures until 2020. For this one-year &#8220;look-back&#8221; rule to apply in respect of CEE incurred or deemed to be incurred in 2020, (i) a FT Subscription Agreement must have been made in 2019, (ii) the Holder must have paid the consideration in money for the FT Share before the end of the 2019 year, (iii) the CEE incurred must consist of certain expenses specified in paragraph 66(12.66)(b) of the Tax Act, (iv) the Holder must deal at arm&#8217;s length with the Corporation throughout 2020 for purposes of the Tax Act, and (v) the Corporation must renounce the CEE to the Holder in by March 30, 2020.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The FT Subscription Agreement(s) will provide that the Corporation will incur (or will be deemed to have incurred) and renounce with respect to the FT Shares to the initial subscribers of FT Shares expenses which qualify as CEE and &#8220;flow-through mining expenditures&#8221; (as defined in the Tax Act and BC Tax Act) in accordance with these rules. In the event that the Corporation does not incur (or is not deemed to have incurred) CEE on or before December 31, 2020 in an amount at least equal to the amounts renounced with respect to the FT Shares to the purchasers of FT Shares, the Corporation will be required to reduce the amount of CEE renounced to the Holders, and the Holders&#8217; income tax returns for the years in which the CEE was claimed will be reassessed accordingly.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation has undertaken to incur sufficient CEE prior to December 31, 2020 and to renounce (in accordance with the Tax Act) in favour of the Holders of FT Shares (effective December 31, 2019, assuming the Holders deal at arm&#8217;s length with the Corporation and meet the other requirements for the &#8220;look-back&#8221; rule referenced above), an amount equal to the aggregate purchase price for FT Shares. The Corporation may not renounce to Holders of FT Shares an amount in excess of the aggregate purchase price for FT Shares. Further, the Corporation will not be entitled to renounce CEE to the extent that the amount so renounced exceeds the Corporation&#8217;s own &#8220;cumulative Canadian exploration expense&#8221; (as defined in the Tax Act) (&#8220;<b>CCEE</b>&#8221;).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">CEE deemed to have been incurred by a Holder will be added to the CCEE account of such Holder. A Holder may deduct in computing income from all sources for a taxation year such amount as may be claimed not exceeding 100% of the balance in the Holder&#8217;s CCEE account at the end of taxation year. To the extent that a Holder does not deduct the balance of the Holder&#8217;s CCEE account at the end of a taxation year, the balance will be carried forward and may be deducted by the Holder in subsequent taxation years in accordance with the provisions of the Tax Act. The CCEE account of a Holder is reduced by the amount deducted by the Holder in prior years. If the balance of the Holder&#8217;s CCEE account is &#8220;negative&#8221; at the end of a taxation year, which may occur if the Holder receives or becomes entitled to receive assistance payments which relate to CCEE incurred in prior year or if there are other adjustments to that CCEE account, the &#8220;negative&#8221; amount must be included in the Holder&#8217;s income for that taxation year, and the balance of the Holder&#8217;s CCEE account then becomes nil. The right to deduct CCEE accrues to the initial Holder of FT Shares and is not transferable. The disposition of FT Shares will not reduce the balance of a Holder&#8217;s CCEE account. A Holder&#8217;s CCEE account will be reduced by the amount of any assistance, including grants, that the Holder has received or is entitled to receive in respect of CEE in the preceding year.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak11203257-69dc-47c1-90d2-ef29851af38a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">37</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Certain restrictions apply in respect of the deductions of CCEE following an acquisition of control and on certain reorganizations of a corporate Holder. Corporate Holders should consult their own tax advisors for advice with respect to the potential application of these rules to them having regard to their own particular circumstances.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">In addition, a Holder who is an individual (other than a trust) may be permitted to claim a 15% nonrefundable investment tax credit (&#8220;<b>ITC</b>&#8221;) reducing the individual&#8217;s federal tax otherwise payable in a taxation year where certain CEE is renounced to the Holder effective in such taxation year. Under the FT Subscription Agreement(s), the Corporation will covenant that the expenses to be renounced by the Corporation will qualify for this ITC. The Holder will be required to deduct the amount of any ITC claimed in a taxation year from such Holder&#8217;s cumulative CCEE account in the following taxation year, which may result in an income inclusion in that year in accordance with the rules referenced above.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Taxation of Non-Resident Holders</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following portion of this summary is generally applicable to Holders (as defined above) who, for the purposes of the Tax Act and at all relevant times: (i) are not resident or deemed to be resident in Canada, and (ii) do not use or hold Common Shares in carrying on a business in Canada. Holders who meet all of the foregoing requirements are referred to herein as &#8220;<b>Non-Resident Holders</b>&#8221;, and this portion of the summary only addresses such Non-Resident Holders. Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an insurer carrying on business in Canada and elsewhere. Such Non-Resident Holders should consult their own tax advisors. The FT Shares are only being sold in Canada to Canadian subscribers.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Receipt of Dividends</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Dividends paid or credited or deemed to be paid or credited to a Non-Resident Holder by the Corporation are subject to Canadian withholding tax at the rate of 25% of the gross amount of the dividend unless reduced by the terms of an applicable tax treaty between Canada and the Non-Resident Holder&#8217;s jurisdiction of residence. Non- Resident Holders should consult their own tax advisors in this regard.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>Disposition of Common Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">A Non-Resident Holder generally will not be subject to tax under the Tax Act in respect of a capital gain realized on the disposition or deemed disposition of a Common Share unless such Common Share constitutes &#8220;taxable Canadian property&#8221; (as defined in the Tax Act) to the Non-Resident Holder at the time of disposition and the gain is not exempt from tax pursuant to the terms of an applicable tax treaty between Canada and the Non-Resident Holder&#8217;s jurisdiction of residence.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Provided the Common Shares are listed on a &#8220;designated stock exchange&#8221;, as defined in the Tax Act (which currently includes the TSX and the NYSE American) at the time of disposition, the Common Shares will generally not constitute taxable Canadian property of a Non-Resident Holder at that time, unless at any time during the 60-month period immediately preceding the disposition the following two conditions are satisfied concurrently:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">(a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm&#8217;s length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of shares of the Corporation; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">More than 50% of the fair market value of the Common Shares was derived directly or indirectly from one or any combination of: real or immovable property situated in Canada, &#8220;Canadian resource properties&#8221;, &#8220;timber resource properties&#8221; (each as defined in the Tax Act), and options in respect of, or interests in or for civil law rights in, such properties.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp; </p><p style="MARGIN: 0px"><table id="pagebreakdcf0c464-3eff-44cf-b3d7-0bef067569ba" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">38</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Non-Resident Holders who may hold Common Shares as taxable Canadian property should consult their own tax advisors.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>THE ABOVE SUMMARY IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL CANADIAN TAX CONSIDERATIONS APPLICABLE TO HOLDERS WITH RESPECT TO THE OWNERSHIP, EXERCISE OR DISPOSITION OF COMMON SHARES. HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX CONSIDERATIONS APPLICABLE TO THEM IN THEIR PARTICULAR CIRCUMSTANCES.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>INTEREST OF EXPERTS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Mr. Garth Kirkham, P. Geo., of Kirkham Geosystems Ltd., and Mr. Jasman Yee, P. Eng. are &#8220;qualified persons&#8221; as defined by National Instrument 43-101. Mr. Kirkham and Mr. Yee prepared the Bralorne Technical Report dated October 20, 2016, which is referred to herein. Mr. Yee is a director and shareholder of the Corporation and is therefore not independent. Mr. Yee was responsible for section 13 (Mineral Processing and Metallurgical Testing) and section 17 (Recovery Methods) of the Bralorne Technical Report. Mr. Michael O&#8217;Brien, P. Geo. of formerly ARANZ Geo, and Mr. Hassan Ghaffari, P. Eng., Mr. Mark Horan, P. Eng., and Mr. Jianhui (John) Huang, Ph.D., P. Eng., all of Tetra Tech Canada Inc., are also &#8220;qualified persons&#8221; as defined by National Instrument 43-101, and they prepared the Avino Technical Report, which is referred to herein. Neither of Messrs. Kirkham, O&#8217;Brien, Ghaffari, Horan, nor Huang is a shareholder of the Corporation as of the date of this Prospectus Supplement.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>LEGAL MATTERS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Certain Canadian legal matters relating to the Offering on behalf of the Corporation will be passed upon by Harper Grey LLP, and certain U.S. legal matters relating to the Offering on behalf of the Corporation will be passed upon by Lewis Brisbois Bisgaard &amp; Smith LLP. As at the date hereof, the shareholders and associates of each of Harper Grey LLP and Lewis Brisbois Bisgaard &amp; Smith LLP, each as a group, own, directly or indirectly, less than 1% of the Common Shares of the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Certain Canadian legal matters relating to the Offering on behalf of Cantor Fitzgerald Canada Corporation will be passed upon by Stikeman Elliott LLP, and certain U.S. legal matters relating to the Offering on behalf of the Underwriter will be passed upon by Cooley LLP. As at the date hereof, the partners and associates of each of Stikeman Elliott LLP and Cooley LLP, each as a group, own, directly or indirectly, less than 1% of the Common Shares of the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Except as disclosed above, no partner or associate, as applicable, of the aforementioned companies and limited liability partnerships or persons indicated above are currently expected to be elected, appointed or employed as a director, officer or employee of the Corporation or any associate or affiliate of the Corporation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Corporation&#8217;s auditors, Manning Elliott LLP, are independent with respect to the Corporation within the meaning of the Rules of Professional Conduct of the Institute of Chartered Professional Accountants of British Columbia. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak7fa94c42-b461-4ff4-bb66-0beb562f8679" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">39</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>AUDITORS, TRANSFER AGENT AND REGISTRAR</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The auditors of the Corporation are Manning Elliott LLP, Chartered Professional Accountants, Vancouver, British Columbia, Canada. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The registrar and transfer agent of the Corporation is Computershare Investor Services Inc., Vancouver, British Columbia, Canada.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CANADIAN PURCHASERS&#8217; STATUTORY RIGHTS AND OTHER RIGHTS OF RESCISSION </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Securities legislation in certain of the provinces and territories of Canada provides purchasers with the right to withdraw from an agreement to purchase securities. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment. In several of the provinces and territories of Canada, the securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, revisions of the price or damages if the prospectus and any amendment contains a misrepresentation or is not delivered to the purchaser, provided that the remedies for rescission, revisions of the price or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser&#8217;s province. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser&#8217;s province or territory for the particulars of these rights or consult with a legal adviser.</p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakbbf79497-8879-4584-a2b0-e844f48c9b70" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">40</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CERTIFICATE OF THE CORPORATION</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Dated: July 25, 2019</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The short form prospectus, together with the documents incorporated in the prospectus by reference, as supplemented by the foregoing, constitutes full, true and plain disclosure of all material facts relating to the securities offered by the prospectus and this supplement as required by the securities legislation of each of the Provinces of Canada, except for Quebec.</p><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr height="15"><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">By: <u>(Signed) <i>David Wolfin</i></u></p></td><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">By:<u> (Signed) <i>Nathan Harte</i></u></p></td></tr><tr height="15"><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">President and Chief Executive Officer</p></td><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">Chief Financial Officer</p></td></tr><tr height="15"><td valign="top" width="100%" colspan="2"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>ON BEHALF OF THE BOARD OF DIRECTORS</b></p><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">By: <u>(Signed) <i>Gary Robertson</i></u></p></td><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">By:<u> (Signed) <i>Peter Bojtos</i></u></p></td></tr><tr height="15"><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">Director</p></td><td valign="top" width="50%"><p style="MARGIN: 0px" align="center">Director</p></td></tr></table>&nbsp;&nbsp; <b><p style="MARGIN: 0px"><table id="pagebreak7286f0a5-d36c-4e19-92b7-6554ef1eb76f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">A-1</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px" align="center"><b>CERTIFICATE OF THE UNDERWRITER</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Dated: July 25, 2019</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">To the best of our knowledge, information and belief, the short form prospectus, together with the documents incorporated in the prospectus by reference, as supplemented by the foregoing, constitutes full, true and plain disclosure of all material facts relating to the securities offered by the prospectus and this supplement as required by the securities legislation of each of the provinces of Canada, except for Quebec.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>CANTOR FITZGERALD CANADA CORPORATION</b></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">By: <u>(Signed) <i>Christopher Craib</i></u> </p><p style="MARGIN: 0px" align="center">President and Chief Financial Officer</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px"><table class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center">A-2</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></BODY><!--Document Created by EDGARMaster--></html>
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<TYPE>EX-99.2
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<FILENAME>avino_ex992.htm
<DESCRIPTION>UNDERWRITING AGREEMENT
<TEXT>
<html><head><title>avino_ex992.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 99.2</b></p><p style="MARGIN: 0px" align="right">&nbsp;</p><p style="MARGIN: 0px" align="left">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>UNDERWRITING AGREEMENT</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left">July 25, 2019</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left">Avino Silver &amp; Gold Mines Ltd.</p><p style="MARGIN: 0px" align="left">Suite 900, 570 Granville Street</p><p style="MARGIN: 0px" align="left">Vancouver, BC </p><p style="MARGIN: 0px" align="left">Canada V6C 3P1</p><p style="MARGIN: 0px" align="left">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0"><tr><td width="7%"><p style="MARGIN: 0px">Attention: </p></td><td><p style="MARGIN: 0px" align="left">Mr. David Wolfin, </p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="left">President and Chief Executive Officer </p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="justify">Dear Sirs/Mesdames: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Cantor Fitzgerald Canada Corporation (&#8220;<b>CFCC</b>&#8221; or the <b>&#8220;Underwriter</b>&#8221;), as sole bookrunning manager and sole underwriter, hereby offers to purchase from Avino Silver &amp; Gold Mines Ltd. (the &#8220;<b>Company</b>&#8221;), and the Company hereby agrees to issue and sell to the Underwriter, upon and subject to the terms hereof, an aggregate of: (i) 4,706,000 common shares of the Company (the &#8220;<b>Firm</b> <b>Shares</b>&#8221;) at a price of C$0.85 per Firm Share (the &#8220;<b>CS </b><b>Offering</b> <b>Price</b>&#8221;) on an underwritten basis (the &#8220;<b>CS Offering</b>&#8221;), and (ii) 2,020,400 common shares of the Company that qualify as &#8220;flow-through shares&#8221; as defined in subsection 66(15) of the Tax Act (as defined herein) (the &#8220;<b>Flow-Through Shares</b>&#8221;) at a price of C$0.99 per Flow-Through Share (the &#8220;<b>FT Offering Price</b>&#8221;) on an underwritten basis (the &#8220;<b>FT Offering</b>&#8221;, and together with the CS Offering, the &#8220;<b>Offering</b>&#8221;), for an aggregate purchase price of C$6,000,296.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Upon and subject to the terms and conditions contained herein, the Company hereby grants to the Underwriter an option (the &#8220;<b>Over-Allotment Option</b>&#8221;) to purchase up to an additional 705,900 common shares of the Company at the CS Offering Price per additional share (the &#8220;<b>Additional Common Shares</b>&#8221;) and an additional 303,060 Flow-Through Shares at the FT Offering Price per additional share (the &#8220;<b>Additional Flow-Through Shares</b>&#8221;, and together with the Additional Common Shares, the &#8220;<b>Additional</b> <b>Shares</b>&#8221;), for the purposes of covering over-allotments and for market stabilization purposes. The Over-Allotment Option may be exercised in accordance with Section 7(3) hereof. The Firm Shares, the Flow-Through Shares, and the Additional Shares are collectively referred to herein as the &#8220;<b>Offered Shares</b>&#8221;.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company and the Underwriter agree that any offers or sales of the Offered Shares in Canada will be conducted through the Underwriter, or one or more affiliates of the Underwriter, duly registered in compliance with applicable Canadian Securities Laws (as hereinafter defined).</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">In consideration of the agreement on the part of the Underwriter to purchase the Offered Shares and in consideration of the services rendered and to be rendered by the Underwriter hereunder, the Company agrees to pay to CFCC or as directed by CFCC, at the Closing Time (as hereinafter defined), and at the Option Closing Time (as hereinafter defined), if any, a cash fee equal to 7.0% of the aggregate gross proceeds of the Offering plus applicable taxes (the &#8220;<b>Underwriting Fee</b>&#8221;) as well as the Underwriter&#8217;s Expenses (as hereinafter defined). The Company also agrees to issue to the Underwriter the Underwriter&#8217;s Warrants at the Closing Time or Option Closing Time, as the case may be.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreake88a0fdd-4e77-4392-bf16-2e8b1fb19ff7" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center"></td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">This Agreement shall be subject to the following terms and conditions:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>TERMS AND CONDITIONS</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 1 Interpretation</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>(1)</b>&nbsp;<b><i>Definitions</i></b>&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Where used in this Agreement or in any amendment hereto, the following terms shall have the following meanings, respectively:</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Additional Common Shares</b>&#8221; has the meaning given to it in the second paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Additional Flow-Through Shares</b>&#8221; has the meaning given to it in the second paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Additional Shares</b>&#8221; has the meaning given to it in the second paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>affiliate</b>&#8221; has the meaning given to it in the <i>Business Corporations Act (British Columbia)</i>;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Agreement</b>&#8221; means the agreement resulting from the acceptance by the Company of the offer made by the Underwriter by this agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Applicable Laws</b>&#8221; means, in relation to any person or persons, the Applicable Securities Laws and all other statutes, regulations, rules, orders, by-laws, codes, ordinances, decrees, the terms and conditions of any grant of approval, permission, authority or licence, or any judgment, order, decision, ruling, award, policy or guidance document, of any Governmental Authority that are applicable to such person or persons or its or their business, undertaking, property or securities and emanate from a Governmental Authority, having jurisdiction over the person or persons or its or their business, undertaking, property or securities;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Applicable Securities Laws</b>&#8221; means the Canadian Securities Laws and the U.S. Securities Laws;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Business Day</b>&#8221; means any day, other than a Saturday or Sunday, on which banks are open for business in Vancouver, British Columbia, Toronto, Ontario and New York, New York;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Commissions</b>&#8221; means the securities regulatory authorities in each of the Qualifying Jurisdictions;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak78c3a73c-c858-4741-9a79-22f347c6b680" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-2-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Exploration Expense</b>&#8221; or &#8220;<b>CEE</b>&#8221; means an expense or expenses incurred (or deemed to be incurred) as described in paragraph (f) of the definition of &#8220;Canadian exploration expense&#8221; in subsection 66.1(6) of the Tax Act, excluding any amounts which are prescribed to be &#8220;Canadian exploration and development overhead expense&#8221; for the purposes of paragraph 66(12.6)(b) of the Tax Act, the amount of any assistance described in paragraph 66(12.6)(a) of the Tax Act, or the cost of acquiring or obtaining the use of seismic data described in paragraph 66(12.6)(b.1) of the Tax Act or any expenses for prepaid services or rent that do not qualify as outlays and expenses for the period as described in the definition of &#8220;expense&#8221; in paragraph 66(15) of the Tax Act;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Final Base Prospectus</b>&#8221; has the meaning given to it in Section 2(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Offering Documents</b>&#8221; has the meaning given to it in Section 6(1)(c);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Preliminary Base Prospectus</b>&#8221; has the meaning given to it in Section 2(1);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Prospectus</b>&#8221; has the meaning given to it in Section 2(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Prospectus Supplement</b>&#8221; has the meaning given to it in Section 2(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Canadian Securities Laws</b>&#8221; means all applicable securities laws of each of the Qualifying Jurisdictions and the respective rules and regulations under such laws together with applicable published national, multilateral and local policy statements, instruments, notices, blanket orders and rulings of the securities regulatory authorities in the Qualifying Jurisdictions;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>CDS</b>&#8221; means the CDS Clearing and Depository Services Inc.;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>CFCC</b>&#8221; means Cantor Fitzgerald Corporation Canada; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Claim</b>&#8221; has the meaning given to it in Section 11(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Closing Date</b>&#8221; has the meaning given to it in Section 7(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Closing Time</b>&#8221; has the meaning given to it in Section 7(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Code</b>&#8221; has the meaning given to it in Section 9(1)(qq);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Commission</b>&#8221; means the British Columbia Securities Commission;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Commitment Amount</b>&#8221; means the aggregate amount paid by the FT Purchasers for the Flow-Through Shares and for any Additional Flow-Through Shares;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Common Shares</b>&#8221; means the common shares in the capital of the Company;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Company</b>&#8221; means Avino Silver &amp; Gold Mines Ltd.; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Corporate Records</b>&#8221; has the meaning given to it in Section 9(1)(t);</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd616e2e1-971c-440d-8704-de12da07c470" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-3-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>CRA</b>&#8221; means the Canada Revenue Agency;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>CS</b><b> </b><b>Offering</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>CS</b> <b>Offering Price</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Directed Selling Efforts</b>&#8221; means &#8220;directed selling efforts&#8221; as that term is defined in Regulation S. Without limiting the foregoing, it means, subject to the exclusions from the definition of directed selling efforts contained in Regulation S, any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for any of the Offered Shares and includes the placement of any advertisement in a publication with a general circulation in the United States that refers to the offering of the Offered Shares;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Distribution</b>&#8221; means &#8220;distribution&#8221; or &#8220;distribution to the public&#8221; as those terms are defined in the Canadian Securities Laws;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Entity</b>&#8221; has the meaning given to it in Section 9(1)(zz);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Environmental Laws</b>&#8221; has the meaning given in Section 9(1)(uu)(i); </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Environmental Permits</b>&#8221; has the meaning given in Section 9(1)(uu)(ii);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Expenditure Period</b>&#8221; means the period commencing on the Closing Date and ending on December 31, 2020;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Evaluation Date</b>&#8221; has the meaning given to it in Section 9(1)(v). </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Exchange Act</b>&#8221; means the United States Securities Exchange Act of 1934, as amended together with the rules and regulations promulgated thereunder;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Exchanges</b>&#8221; means, collectively, the TSX and NYSE American; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Financial Statements</b>&#8221; has the meaning given to it in Section 9(1)(p);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Firm Shares</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Flow-Through Mining Expenditure</b>&#8221; means an expense that qualifies, once renounced by the Company pursuant to the Tax Act, as a &#8220;flow-through mining expenditure&#8221; of an FT Purchaser as such term is defined in subsection 127(9) of the Tax Act;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Flow-Through Shares</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Flow-Through Share Subscription Agreement</b>&#8221; means the subscription agreement in the form attached as Schedule &#8220;A&#8221; hereto, to be entered into between the Company and each of the FT Purchasers with respect to the purchase of the Flow-Through Shares and any Additional Flow-Through Shares;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak17482efc-342d-4e4f-af48-1cc5d6a3a0be" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-4-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Foreign Issuer</b>&#8221; shall have the meaning ascribed thereto in Regulation S;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>FT</b><b> </b><b>Offering</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>FT</b> <b>Offering Price</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>FT Purchasers</b>&#8221; means the initial purchasers of Flow-Through Shares and any Additional Flow-Through Shares;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Governmental Authority</b>&#8221; means and includes, without limitation, any national, federal, provincial, state or municipal government or other political subdivision of any of the foregoing, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Hazardous Substances</b>&#8221; has the meaning given to it in Section 9(1)(uu)(i); </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>IFRS</b>&#8221; has the meaning given to it in Section 9(1)(p); </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Incorporated Documents</b>&#8221; has the meaning given to it in Section 2(4);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Indemnified Party</b>&#8221; has the meaning given to it in Section 11(1);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Indemnifying Party</b>&#8221; has the meaning given to it in Section 11(1);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Intellectual Property</b>&#8221; has the meaning given to in Section 9(1)(hh);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>IT Systems and Data</b>&#8221; meaning given to it in Section 9(1)(ggg);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Marketing Documents</b>&#8221; means the marketing materials approved in accordance with Section 5(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>marketing materials</b>&#8221; has the meaning given to it in NI 41-101;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Material Adverse Effect</b>&#8221; means (i) any event, fact, circumstance, development, occurrence or state of affairs that is materially adverse to the business, assets (including intangible assets), affairs, operations, liabilities (contingent or otherwise), capital, properties, prospects, condition (financial or otherwise) or results of operations of the Company and any of the Subsidiaries, taken as a whole, whether or not arising in the ordinary course of business or (ii) that would result in any of the Canadian Offering Documents containing a misrepresentation;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak46bf218c-4975-4df7-acb9-b0136c1cd4ec" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-5-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>material change</b>&#8221; means a material change in or relating to the Company for the purposes of Applicable Securities Laws or any of them, or where undefined under the Applicable Securities Laws of a Qualifying Jurisdiction means a change in or relating to the business, operations or capital of the Company and its subsidiaries taken as a whole that would reasonably be expected to have a significant effect on the market price or value of any securities of the Company and includes a decision to implement such a change made by the board of directors of the Company or by senior management who believe that confirmation of the decision by the board of directors of the Company is probable;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>material fact</b>&#8221; means a material fact for the purposes of Applicable Securities Laws or any of them, or where undefined under the Applicable Securities Laws of a Qualifying Jurisdiction means a fact that would reasonably be expected to have a significant effect on the market price or value of any securities of the Company;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Material Properties</b>&#8221; has the meaning given to it in Section 9(1)(ll);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Material Subsidiaries</b>&#8221; has the meaning given to it in Section 9(1)(s); </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>misrepresentation</b>&#8221; means a misrepresentation for the purposes of the Applicable Securities Laws of a Qualifying Jurisdiction or any of them, or where undefined under the Applicable Securities Laws of a Qualifying Jurisdiction means: (i) an untrue statement of a material fact, or (ii) an omission to state a material fact that is required to be stated or that is necessary to make a statement not misleading in the light of the circumstances in which it was made;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>MI 11-202</b>&#8221; means Multilateral Instrument 11-102 - <i>Passport System</i>;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Money Laundering Laws</b>&#8221; has the meaning given in Section 9(1)(yy);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>NI 43-101</b>&#8221; means National Instrument 43-101 &#8211; <i>Standards of Disclosure for Mineral Projects</i>;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>NI 44-101</b>&#8221; means National Instrument 44-101 &#8211; <i>Short Form Prospectus Distributions</i>;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>NI 52-109</b>&#8221; means National Instrument 52-109 - <i>Certification of Disclosure in Issuers&#8217; Annual and Interim Filings</i>; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>NP 11-202</b>&#8221; means National Policy 11-202 - <i>Process for Prospectus Reviews in Multiple Jurisdictions</i>;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>NYSE American</b>&#8221; means the NYSE American LLC; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Offered Shares</b>&#8221; has the meaning given to it in the second paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Offering</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Option Closing Date</b>&#8221; has the meaning given to it in Section 7(3);</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakfd5ed3eb-b30e-49f9-946c-27ad5c03efa7" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-6-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Option Closing Time</b>&#8221; has the meaning given to it in Section 7(3);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Over-Allotment Option</b>&#8221; has the meaning given to it in the second paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Passport System</b>&#8221; has the meaning given to it in Section 2(1);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Permits</b>&#8221; has the meaning given to it in Section 9(1)(ll)(ii);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Person</b>&#8221; has the meaning given to it in Section 9(1)(z);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Prescribed Forms</b>&#8221; means the forms prescribed from time to time under subsection 66(12.7) of the Tax Act to be filed by the Company within the prescribed times renouncing to the FT Purchasers the Resource Expenses incurred (or deemed to be incurred) pursuant to the Flow-Through Share Subscription Agreement and all parts or copies of such forms required by CRA, to be delivered to the FT Purchasers;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Principal Regulator</b>&#8221; has the meaning given to it in Section 2(1);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Purchasers</b>&#8221; means, collectively, each of the purchasers of the Offered Shares arranged by the Underwriter pursuant to the Offering;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Qualifying Jurisdictions</b>&#8221; means each of province of Canada other than Qu&#233;bec; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Regulation M</b>&#8221; has the meaning given to it in Section 9(ss);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Regulation S</b>&#8221; means Regulation S adopted by the SEC under the Securities Act;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Reports</b>&#8221; has the meaning given to it in Section 9(1)(ll)(vii);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Resource Expense</b>&#8221; means an expense which is CEE incurred by the Company during the Expenditure Period, which qualifies as a Flow-Through Mining Expenditure, which has not been previously renounced by the Company to any Person, which may, provided that the applicable FT Purchaser (and if the applicable FT Purchaser is a partnership, each partner thereof) deals with the Company on an arm&#8217;s length basis for the purposes of the Tax Act at all relevant times, be renounced by the Company pursuant to subsection 66(12.6) of the Tax Act (in conjunction with subsection 66(12.66) of the Tax Act) with an effective date not later than December 31, 2019 and in respect of which, but for the renunciation, the Company would be entitled to a deduction from income for income tax purposes;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Sanctions</b>&#8221; has the meaning given to it in Section 9(1)(zz)(i)(A);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>SEC</b>&#8221; means the United States Securities and Exchange Commission;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Securities Act</b>&#8221; means the United States Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>SEDAR</b>&#8221; means the System for Electronic Document Analysis and Retrieval; </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Selling Firm&#8221;</b> has the meaning given to it in Section 4(1);</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakefe5fbb1-bafe-46ac-a8eb-0b617e42a10a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-7-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Shelf Information</b>&#8221; has the meaning given to it in Section 2(2);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Shelf Procedures</b>&#8221; has the meaning given to it in Section 2(1);</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Subsidiary</b>&#8221; has the meaning ascribed thereto in the Applicable Securities Laws of the Province of British Columbia and includes the Material Subsidiaries, and &#8220;<b>Subsidiaries</b>&#8221; means all of them;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Supplementary</b> <b>Material</b>&#8221; has the meaning given to it in Section 2(3); </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Tax Act</b>&#8221; means the <i>Income Tax Act</i> (Canada), as amended, re-enacted or replaced from time to time and all rules and regulations made pursuant thereto and any proposed amendments thereto announced publicly by or on behalf of the Minister of Finance (Canada) on or prior to the date of the Flow-Through Share Subscription Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Taxes</b>&#8221; means all taxes, however denominated, including any interest, penalties or other additions that may become payable in respect thereof, imposed by any Governmental Authority, which taxes shall include, all income or profits taxes, capital taxes, withholding taxes, payroll and employee withholding taxes, employment insurance, social insurance taxes, good and services taxes, harmonized sales taxes, sales taxes (including provincial sales taxes), franchise taxes, gross receipts taxes, business license taxes, occupation taxes, real and personal property taxes, stamp taxes, environmental axes, transfer taxes, (including land transfer taxes) workers&#8217; compensation and other governmental charges, and other obligations of the same or of a similar nature to any of the foregoing, and &#8220;<b>Tax</b>&#8221; shall have a corresponding meaning;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>template</b> <b>version</b>&#8221; has the meaning ascribed to such term in NI 41-101 and includes any revised template version of marketing materials as contemplated by NI 41-101;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>TSX</b>&#8221; means the Toronto Stock Exchange;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Underwriter</b>&#8221; has the meaning given to it in the first paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Underwriter&#8217;s Expenses</b>&#8221; has the meaning given to it in Section 17;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Underwriter&#8217;s Warrant Certificates</b>&#8221; means the certificates representing the Underwriter&#8217;s Warrants and containing the terms thereof;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Underwriter&#8217;s Warrant Shares</b>&#8221; means the Common Shares issuable upon exercise of the Underwriter&#8217;s Warrants;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Underwriter&#8217;s Warrants</b>&#8221; means the non-transferrable common share purchase warrants in an amount equal to 6.0% of the number of the Offered Shares sold in the Offering, to be issued to the Underwriter at the Closing Time, each of which shall entitle the Underwriter to purchase one Common Share at the CS Offering Price at any time before 5:00 p.m. (Vancouver time) on the date which is 12 months after the Closing Date;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak19ba6e34-54c0-4f7a-90ee-4c48d1ab7965" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-8-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>Underwriting Fee</b>&#8221; has the meaning given to it in the fourth paragraph of this Agreement;</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>U.S. Securities Laws</b>&#8221; means all applicable securities laws in the United States, including without limitation the Securities Act, the Exchange Act, and the rules and regulations promulgated thereunder and any applicable state securities laws; and</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&#8220;<b>United States</b>&#8221; means the United States of America, its territories and possessions, any State of the United States and the District of Columbia.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) Capitalized terms used but not defined herein have the meanings ascribed to them in the Canadian Final Base Prospectus. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) Any reference in this Agreement to a Section or Subsection shall refer to a section or subsection of this Agreement. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) All words and personal pronouns relating thereto shall be read and construed as the number and gender of the party or parties referred to in each case required and the verb shall be construed as agreeing with the required word and/or pronoun. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(5) Any reference in this Agreement to &#8220;C$&#8221; or to &#8220;dollars&#8221; shall refer to the lawful currency of Canada, unless otherwise specified. Any reference in this Agreement to &#8220;US$&#8221; shall refer to lawful currency of the United States of America. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(6) The following are the schedules to this Agreement, which schedules are deemed to be a part hereof and are hereby incorporated by reference herein: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Schedule &#8220;A&#8221; &#8211; Flow-Through Share Subscription Agreement </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Schedule &#8220;B&#8221; &#8211; List of Material Subsidiaries</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Schedule &#8220;C&#8221; &#8211; Matters to be Addressed in the Company&#8217;s Canadian Counsel Opinion</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Schedule &#8220;D&#8221; &#8211; List of Persons Subject to Lock-up</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Schedule &#8220;E&#8221; &#8211; Form of Lock-Up Agreement</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak3502e1f6-8ffa-44ae-8d86-3393ec0e9cb4" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-9-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 2 Background and Interpretation. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) The Company has prepared and filed with the Canadian Commissions in each of the Qualifying Jurisdictions a preliminary short form base shelf prospectus dated November 30, 2018 relating to the distribution of up to US$25,000,000 of common shares, warrants, subscription receipts, debt securities, and units of the Company (the &#8220;<b>Shelf Securities</b>&#8221;) pursuant to Canadian Securities Laws and in accordance with MI 11-102 and NP 11-202 (together, the &#8220;<b>Passport System</b>&#8221;). Such preliminary short form base shelf prospectus relating to the distribution of the Shelf Securities, including any documents incorporated by reference therein and any supplements or amendments thereto, is herein called the &#8220;<b>Canadian Preliminary Base Prospectus</b>.&#8221; The Company has prepared and filed the Canadian Preliminary Base Prospectus pursuant to NI 44-101 and National Instrument 44-102 &#8211; <i>Shelf Distributions</i> (the &#8220;<b>Shelf Procedures</b>&#8221;). The British Columbia Securities Commission (the &#8220;<b>Principal Regulator</b>&#8221;) has issued a receipt for the Canadian Preliminary Base Prospectus and the Company has satisfied the conditions in MI 11-102 to the deemed issuance of a receipt by the Canadian Commissions for the Canadian Preliminary Base Prospectus in each of the other Qualifying Jurisdictions.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) In addition, the Company (a) has prepared and filed with the Canadian Commissions in the Qualifying Jurisdictions, a final short form base shelf prospectus dated December 21, 2018 relating to the distribution of the Shelf Securities (including any documents incorporated therein by reference and any supplements or amendments thereto, the &#8220;<b>Canadian Final Base Prospectus</b>&#8221;), pursuant to the Shelf Procedures, omitting the Shelf Information (as hereinafter defined) in accordance with the rules and procedures set forth in National Instrument 44-102 &#8211; <i>Shelf Distributions</i>, and (b) will prepare and file, contemporaneously with the entering into of this Agreement, with the Canadian Commissions in the Qualifying Jurisdictions, in accordance with the Shelf Procedures, a prospectus supplement setting forth the Shelf Information (including any documents incorporated therein by reference and any supplements or amendments thereto, the &#8220;<b>Canadian Prospectus Supplement</b>&#8221;, and together with the Canadian Final Base Prospectus, the &#8220;<b>Canadian Prospectus</b>&#8221;). The information, if any, included in the Canadian Prospectus Supplement that is omitted from the Canadian Final Base Prospectus for which a final receipt has been obtained from the Canadian Commissions, but that is deemed under the Shelf Procedures to be incorporated by reference into the Canadian Final Base Prospectus as of the date of the Canadian Prospectus Supplement, is referred to herein as the &#8220;<b>Shelf Information</b>.&#8221; </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) Any amendment or supplement to the Canadian Prospectus (including any document incorporated by reference therein), that may be filed by or on behalf of the Company with the Canadian Commissions in the Qualifying Jurisdictions after the Canadian Prospectus Supplement has been filed and prior to the expiry of the period of distribution of the Offered Shares, is referred to herein collectively as the &#8220;<b>Supplementary Material</b>.&#8221;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) As used herein, the terms &#8220;<b>Canadian Final Base Prospectus</b>&#8221; and &#8220;<b>Canadian Prospectus Supplement</b>&#8221; shall include the documents incorporated and deemed to be incorporated by reference therein (the &#8220;<b>Incorporated Documents</b>&#8221;). </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 3 Flow-Through Shares and Additional Flow-Through Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) The Company hereby agrees to incur (or be deemed to incur) Resource Expenses in an amount equal to the Commitment Amount during the Expenditure Period in accordance with the Flow-Through Share Subscription Agreements in respect of the Flow-Through Shares and any Additional Flow-Through Shares and agrees to renounce to the FT Purchasers, with an effective date no later than December 31, 2019, provided that the applicable FT Purchasers (and for each FT Purchaser that is a partnership, all partners thereof) deal with the Company on an arm&#8217;s length basis for purposes of the Tax Act at all relevant times, Resource Expenses in an amount equal to the Commitment Amount.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak18c123ae-6a2b-4d70-bb3d-2725f01c57a6" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-10-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) The Company shall deliver to the FT Purchasers, on or before March 1, 2020, the relevant Prescribed Forms, fully completed and executed, renouncing to each FT Purchaser, Resource Expenses in an amount equal to the Commitment Amount applicable to such FT Purchaser with an effective date of no later than December 31, 2019, provided that the applicable FT Purchasers (and for each FT Purchaser that is a partnership, all partners thereof) deal with the Company on an arm&#8217;s length basis for purposes of the Tax Act at all relevant times, such delivery constituting the authorization of the Company to the FT Purchasers to file such Prescribed Forms with applicable taxation authorities. The Company shall file the requisite Prescribed Forms in a timely fashion with the CRA pursuant to subsection 66(12.7) of the Tax Act in respect of such renunciations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 4 Distribution of the Offered Shares</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) The Underwriter shall be permitted to appoint additional investment dealers or brokers (each, a &#8220;<b>Selling Firm</b>&#8221;) as its agents in the Offering and the Underwriter may determine the remuneration payable to such Selling Firm. The Underwriter may offer the Offered Shares, directly and through Selling Firms or any affiliate of an Underwriter, in the Qualifying Jurisdictions for sale to the public only in accordance with Canadian Securities Laws and in any jurisdiction outside of the Qualifying Jurisdictions (subject to Section 8 hereof) to purchasers permitted to purchase the Offered Shares only in accordance with Applicable Securities Laws and applicable securities laws in such jurisdiction, and upon the terms and conditions set forth in the Canadian Offering Documents and in this Agreement. The Underwriter shall require any Selling Firm appointed by the Underwriter to agree to the foregoing and the Underwriter shall be severally responsible for the compliance by such Selling Firm with the provisions of this Agreement.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) For purposes of this Section 3, the Underwriter shall be entitled to assume that the Offered Shares are qualified for Distribution in any Qualifying Jurisdiction, unless otherwise notified in writing by the Company.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) CFCC shall promptly notify the Company when, in their opinion, the Distribution of the Offered Shares has ceased and will provide to the Company, as soon as practicable thereafter, a breakdown of the number of Offered Shares distributed in each of the Qualifying Jurisdictions where such breakdown is required for the purpose of calculating fees payable to the Canadian Securities Commissions and, if applicable, in the United States.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) The Underwriter shall not, in connection with the services provided hereunder, make any representations or warranties with respect to the Company or its securities, other than as set forth in the Canadian Offering Documents.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(5) The Underwriter acknowledges that the Company is not taking any steps to qualify the Offered Shares for Distribution or register the Offered Shares or the Distribution thereof with any securities authority outside of the Qualifying Jurisdictions.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak9e0b098c-029d-4888-9912-b4beaa86879c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-11-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 5 Preparation of Prospectus Supplement; Marketing Materials; Due Diligence</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) During the period of the Distribution of the Offered Shares, the Company shall co-operate in all respects with the Underwriter to allow and assist the Underwriter to participate fully in the preparation of, and allow the Underwriter to approve the form and content of, the Canadian Offering Documents and shall allow the Underwriter to conduct all &#8220;due diligence&#8221; investigations which the Underwriter may reasonably require to fulfil the Underwriter&#8217;s obligations under Canadian Securities Laws as underwriter and, in the case of the Canadian Prospectus Supplement, to enable the Underwriter responsibly to execute any certificate required to be executed by the Underwriter.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) Without limiting the generality of clause (1) above, during the Distribution of the Offered Shares:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">the Company shall prepare, in consultation with CFCC, and shall approve in writing, prior to the time that any such marketing materials are provided to potential Purchasers, a template version of any marketing materials reasonably requested to be provided by the Underwriter to any such potential Purchasers, and such marketing materials shall comply with Canadian Securities Laws and shall be acceptable in form and substance to the Underwriter and its counsel, acting reasonably;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">CFCC shall approve a template version of any such marketing materials in writing prior to the time that such marketing materials are provided to potential Purchasers;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(c)</td><td valign="top">the Company shall file a template version of any such marketing materials on SEDAR as soon as reasonably practical after such marketing materials are so approved in writing by the Company and CFCC and in any event on or before the day the marketing materials are first provided to any potential Purchaser, and any comparables shall be removed from the template version in accordance with NI 44-101 prior to filing such on SEDAR (provided that if any such comparables are removed, the Company shall deliver a complete template version of any such marketing materials to the Commission), and the Company shall provide a copy of such filed template version to the Underwriter as soon as practicable following such filing; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(d)</td><td valign="top">following the approvals and filings set forth in Section 5(2)(a) to (c) above, the Underwriter may provide a limited use version of such marketing materials to potential Purchasers in accordance with Canadian Securities Laws.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) By the act of having delivered the Canadian Prospectus to the Underwriter, the Company shall have represented and warranted to the Underwriter that all information and statements (except information and statements relating solely to the Underwriter and provided by the Underwriter in writing solely for inclusion therein) contained in such documents, at the respective dates of initial delivery thereof, comply with the Canadian Securities Laws and are true and correct in all material respects, and that such documents, at such dates, contain no misrepresentation or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and constitute full, true and plain disclosure of all material facts relating to the Company and the Offering as required by the Canadian Securities Laws.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) The Company and the Underwriter covenant and agree not to provide any potential Purchaser with any marketing materials except for marketing materials which have been approved as contemplated in Section 5(2).</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak3eaaa5b6-9b8d-42c7-92ab-3dfcc1bc0d0a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-12-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 6 Material Changes</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) During the period from the date of this Agreement to the completion of the Distribution of the Offered Shares, the Company covenants and agrees with the Underwriter that it shall promptly notify the Underwriter in writing of:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">any material change (actual, anticipated, contemplated or threatened) in or relating to the business, affairs, operations, assets, liabilities (contingent or otherwise), capital or ownership of the Company and its Subsidiaries taken as a whole;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">any material fact which has arisen or been discovered and would have been required to have been stated in any of the Canadian Offering Documents had the fact arisen or been discovered on or prior to the date of such document; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(c)</td><td valign="top">any change in any material fact (which for purposes of this Agreement shall be deemed to include the disclosure of any previously undisclosed material fact) contained in the Canadian Prospectus, any Supplementary Material, any Incorporated Documents and any Marketing Documents (collectively, the &#8220;<b>Canadian Offering Documents</b>&#8221;), as they exist immediately prior to such change, which fact or change is, or may reasonably be expected to be, of such a nature as to render any statement in such Canadian Offering Documents, as they exist taken together in their entirety immediately prior to such change, misleading or untrue in any material respect or which would result in the Canadian Offering Documents, as they exist immediately prior to such change, containing a misrepresentation or which would result in the Canadian Offering Documents, as they exist immediately prior to such change, not complying with the laws of any Qualifying Jurisdiction in which the Offered Shares are to be offered for sale or which change would reasonably be expected to have a significant effect on the market price or value of any securities of the Company.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px">(2) The Underwriter agrees, and will require each Selling Firm to agree, to cease the Distribution of the Offered Shares upon the Underwriter receiving written notification of any change or material fact with respect to any Canadian Offering Document contemplated by this Section 6 and to not recommence the Distribution of the Offered Shares until Supplementary Material disclosing such change are filed in such Qualifying Jurisdiction.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak97c4a432-5792-4c0e-9281-d6d72cb7d1cd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-13-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) The Company shall promptly comply with all applicable filing and other requirements under Canadian Securities Laws whether as a result of such change, material fact or otherwise; provided that the Company shall not file any Supplementary Material or other document without first providing the Underwriter with a copy of such Supplementary Material or other document and consulting with the Underwriter with respect to the form and content thereof. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) If during the Distribution of the Offered Shares there is any change in any Applicable Securities Laws, which results in a requirement to file a Canadian Prospectus Amendment, the Company shall subject to the proviso in Section 6(2) above, make any such filing under Applicable Securities Laws as soon as possible. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(5) The Company shall in good faith discuss with the Underwriter any fact or change in circumstances (actual, anticipated, contemplated or threatened, financial or otherwise) which is of such a nature that there is reasonable doubt whether written notice need be given under this Section 6.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 7 Purchase, Sale, Payment and Delivery of the Offered Shares. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company hereby confirms its agreement with the Underwriter concerning the purchase and sale of the Offered Shares as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) <b><i>Public Offering of the Offered Shares.</i></b> CFCC hereby advises the Company that the it intends to offer for sale to the public, on the terms set forth in the Canadian Prospectus, the Offered Shares as soon after this Agreement has been executed as CFCC, in its sole judgment, has determined is advisable and practicable. After the Underwriter has made a reasonable effort to sell all of the Offered Shares at the CS Offering Price or the FT Offering Price, as applicable, the purchase price of the Offered Shares may be decreased by the Underwriter and may be further changed from time to time to an amount not greater than the CS Offering Price or FT Offering Price, as applicable, and the compensation realized by the Underwriter will be decreased by the amount that the aggregate price paid by purchasers for the Offered Shares is less than the gross proceeds paid by the Underwriter to the Company. Any such decrease will not affect the aggregate proceeds to be received by the Company. If the aggregate purchase price paid by purchasers for the Flow-Through Shares is less than the FT Offering Price, the Company will only be permitted to renounce Canadian exploration expenses equal to such lesser aggregate price. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) <b><i>The Closing Date in respect of the Offered Shares</i></b>. Payment of the CS Offering Price for the Firm Shares, the FT Offering Price for the Flow-Through Shares, and if applicable, the CS Offering Price or the FT Offering Price for any Additional Shares, as applicable, shall be made to the Company by wire transfer against delivery of the Firm Shares, the Flow-Through Shares and, if applicable, Additional Shares, to CFCC, through the facilities of CDS designated by the Underwriter, in such names and denominations as the Underwriter may request, and such payment and delivery shall be made by 8:30 a.m. (Toronto time), on July <b>30</b>, 2019 (respectively, the &#8220;<b>Closing Time</b>&#8221; and the &#8220;<b>Closing Date</b>&#8221;) (unless another time and date shall be agreed to by CFCC and the Company). The Firm Shares, the Flow-Through Shares and the Additional Shares, if any, shall be registered in such names and in such denominations as specified by CFCC. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak21dfce83-c9ce-4255-97d1-f4743f350c94" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-14-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) <b><i>Over-Allotment Option</i></b>. The Over-Allotment Option may be exercised by CFCC at any time, in whole or in part by delivering notice to the Company not later than 5:00 p.m. (Vancouver time) on the 30th day after the Closing Date, which notice will specify the number of Additional Shares to be purchased by the Underwriter and the date (the &#8220;<b>Option Closing Date</b>&#8221;) and time (the &#8220;<b>Option Closing Time</b>&#8221;) on and at which such Additional Shares are to be purchased. Such Option Closing Date may be the same as (but not earlier than) the Closing Date and will not be earlier than two Business Days nor later than five Business Days after the date of delivery of such notice (except to the extent a shorter or longer period shall be agreed to by the Company). Subject to the terms of this agreement, upon CFCC furnishing this notice, CFCC will be committed to purchase, and the Company will be committed to issue and sell in accordance with and subject to the provisions of this Agreement, the number of Additional Shares indicated in the notice. Additional Shares may be purchased by the Underwriter only for the purpose of satisfying over-allotments made in connection with the Offering.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) <b><i>Delivery of the Offered Shares and Closing Mechanics</i></b>. The Company shall deliver, or cause to be delivered, to CFCC the Firm Shares, the Flow-Through Shares, and if applicable, the Additional Shares, at the Closing Date, against the irrevocable release of a wire transfer of immediately available funds for the amount of the CS Offering Price and the FT Offering Price therefor, as applicable. The Offered Shares shall be registered in such names and denominations as CFCC shall have requested at least one full business day prior to the Closing Date. Deliveries of the documents described in Section 16(1) hereof with respect to the purchase of the Offered Shares shall be made at the offices of Harper Grey LLP in Vancouver, British Columbia at 8:30 a.m. (Toronto time), or at such other place as CFCC and the Company may agree, on the Closing Date. In the event that the Over-Allotment Option is exercised after the Closing Date in accordance with its terms, the closing of the issuance and sale of that number of Additional Shares in respect of which the Underwriter is exercising the Over-Allotment Option shall take place at the Option Closing Time at the offices of Harper Grey LLP or at such other place as may be agreed to by the Underwriter and the Company. At the Option Closing Time, the Company shall issue to the Underwriter that number of Additional Shares in respect of which the Underwriter is exercising the Over-Allotment Option and deposit with CDS or its nominee, if requested by CFCC, the Additional Shares electronically through the non-certificated inventory system of CDS against payment of the CS Offering Price and the FT Offering Price, as applicable, by wire transfer or certified cheque payable to the Company or as otherwise directed by the Company. Time shall be of the essence, and delivery at the time and place specified in this Agreement is a further condition to the obligations of the Underwriter.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 8 Regulatory Approvals</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company will make all necessary filings, obtain all necessary consents and approvals (if any) and pay all filing fees required to be paid in connection with the transactions contemplated by this Agreement. The Company will qualify the Offered Shares for offering and sale under the Canadian Securities Laws of the Qualifying Jurisdictions and in such other jurisdictions as the Underwriter may designate and maintain such qualifications in effect for so long as required for the Distribution of the Offered Shares; provided, however, that (i) the Company shall not be obligated to make any material filing, file any prospectus, registration statement or similar document, consent to service of process, or qualify as a foreign corporation or as a dealer in securities in any of such other jurisdictions, or subject itself to taxation in respect of doing business in any of such other jurisdictions in which it is not otherwise so subject, or become subject to any additional periodic reporting or continuous disclosure obligations in such other jurisdictions, and (ii) the Underwriter and the Selling Firms shall comply with the applicable laws in any such designated jurisdiction in making offers and sales of Offered Shares therein.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak4e4fedec-67a0-444b-a39f-3471991f6800" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-15-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 9 Representations and Warranties of the Company. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company represents and warrants to CFCC and acknowledges that they are relying on such representations and warranties in entering into this Agreement. The representations and warranties of the Company contained in this Agreement shall be true as of the date hereof, the Closing Time and Option Closing Time, if applicable, and shall survive the completion of the transactions contemplated under this Agreement and remain in full force and effect thereafter for the benefit of CFCC: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top"><b><i>Compliance with Canadian Laws and Regulations.</i></b> The Company is eligible to use the Shelf Procedures. No cease trade order preventing or suspending the use of the Canadian Preliminary Base Prospectus or the Canadian Prospectus or preventing the distribution of the Offered Shares has been issued and no proceeding for that purpose has been initiated or, to the knowledge of the Company, threatened, by any of the Canadian Commissions; as of their respective dates, the Canadian Preliminary Base Prospectus and the Canadian Prospectus complied in all material respects with all applicable Canadian Securities Laws; each of the Canadian Commissions in the Qualifying Jurisdictions has issued or is deemed to have issued receipts for the Canadian Preliminary Base Prospectus and the Canadian Prospectus. On the Closing Date and each Option Closing Date (i) the Canadian Prospectus will comply in all material respects with the Canadian Securities Laws and (ii) the Canadian Prospectus or any amendment or supplement thereto constituted at the respective dates thereof, and will constitute at the Closing Date and each Option Closing Date full, true and plain disclosure of all material facts relating to the Offered Shares, that is required to be in the Canadian Prospectus, and did not at the respective dates thereof, and will not at the Closing Date and each Option Closing Date contain a misrepresentation or an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. To its knowledge, the Company is not a &#8220;related issuer&#8221; or &#8220;connected issuer&#8221; (as those terms are defined in National Instrument 33-105 - <i>Underwriting Conflicts</i> of the Canadian Securities Administrators) of the Underwriter.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top"><b><i>Reporting Issuer and TSX and NYSE American Status.</i></b> The Company is a &#8220;reporting issuer&#8221; in each of the Qualifying Jurisdictions. The Company is in compliance in all material respects with the by-laws, rules and regulations of the Exchanges.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd421676e-ce55-415a-8ec5-19fbdb438db8" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-16-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(c)</td><td valign="top"><b><i>Short Form Eligibility.</i></b> The Company is eligible to file a prospectus in the form of a short form prospectus under NI 44-101.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(d)</td><td valign="top"><b><i>Incorporated Documents.</i></b> The documents incorporated or deemed to be incorporated by reference in the Canadian Prospectus, when they were filed with the Canadian Commissions in each of the Qualifying Jurisdictions, conformed in all material respects to the requirements of the Canadian Securities Laws; and any further documents to be incorporated by reference in the Canadian Prospectus prior to the completion of the distribution of the Offered Shares, when such documents are so filed, will conform in all material respects to the applicable requirements of Canadian Securities Laws, and will not contain a misrepresentation or an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(e)</td><td valign="top"><b><i>No Marketing Materials.</i></b> Other than the term sheet in respect of the offering and sale of Offered Shares dated July 24, 2019, the Company has not provided any marketing materials to any potential investors of Offered Shares.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(f)</td><td valign="top"><b><i>No Conflicts. </i></b>Neither the execution of this Agreement, nor the issuance, offering or sale of the Offered Shares, nor the consummation of any of the transactions contemplated herein and therein, nor the compliance by the Company with the terms and provisions hereof and thereof will conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company pursuant to the terms of any agreements, contracts, arrangements or understandings (written or oral) to which the Company may be bound or to which any of the property or assets of the Company is subject, except (i) such conflicts, breaches or defaults as may have been waived, and (ii) such conflicts, breaches and defaults that would not reasonably be expected to have a Material Adverse Effect (as defined below); nor will such action result (x) in any violation of the provisions of the organizational or governing documents of the Company, or (y) in any violation of the provisions of any statute or any order, rule or regulation applicable to the Company or of any Governmental Authority having jurisdiction over the Company, except such violations that would not reasonably be expected to have a Material Adverse Effect, either individually or in the aggregate.<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(g)</td><td valign="top"><b><i>No Misstatement or Omission in marketing materials. </i></b>Any marketing materials, did not, as of its issue date, and does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Canadian Prospectus, including any Incorporated Document deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not apply to statements in or omissions from any marketing materials made in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of the Underwriter specifically for inclusion therein as contemplated by Section 11(1).</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp; <table id="pagebreak6c16dd16-8a46-4013-a809-abc3e2fdfb7f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-17-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(h)</td><td valign="top"><b><i>Reports and Documents, etc.</i></b> There are no reports or information of the Company or, to the knowledge of the Company, of any third party, that in accordance with the requirements of the Canadian Securities Laws must be made publicly available in connection with the offering of the Offered Shares that have not been made publicly available as required. There are no documents of the Company or, to the knowledge of the Company, of any third party, required to be filed with the Canadian Commissions in the Qualifying Jurisdictions or with the SEC in the United States in connection with the Canadian Prospectus that have not been filed as required pursuant to the Canadian Securities Laws. There are no agreements, contracts, arrangements or understandings (written or oral) or other documents of the Company or, to the knowledge of the Company, of any third party, required to be described in the Canadian Prospectus which have not been described or filed as required pursuant to the Canadian Securities Laws.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(i)</td><td valign="top"><b><i>Offering Materials Furnished to Underwriter.</i></b> The Company has delivered or will deliver on the Closing Date to CFCC one complete manually signed copy of the Canadian Prospectus, as amended or supplemented, in such quantities and at such places as CFCC has reasonably requested.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(j)</td><td valign="top"><b><i>Corporate Action</i></b>. All necessary corporate action has been taken by the Company to authorize the issuance, sale and delivery of the Firm Shares, the Flow-Through Shares, the Additional Shares and the Underwriter&#8217;s Warrants, on the terms set forth in this Agreement.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(k)</td><td valign="top"><b><i>Distribution of Offering Material by the Company.</i></b> The Company has not distributed and will not distribute, prior to the completion of the Underwriter&#8217;s distribution of the Offered Shares, any offering material in connection with the offering and sale of the Offered Shares other than the Canadian Prospectus.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(l)</td><td valign="top"><b><i>Authorization; Enforceability.</i></b> The Company has full corporate right, power and authority to enter into this Agreement and perform the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors&#8217; rights generally and by general equitable principles.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(m)</td><td valign="top"><b><i>No Material Adverse Effect.</i></b> Subsequent to the respective dates as of which information is given in the Canadian Prospectus (including any document deemed incorporated by reference therein), there has not been (i) any Material Adverse Effect, (ii) any transaction which is material to the Company and the Material Subsidiaries taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations), incurred by the Company or any Material Subsidiary, which is material to the Company and the Material Subsidiaries taken as a whole, (iv) any material change in the capital stock or outstanding long-term indebtedness of the Company or any of the Material Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company or any Material Subsidiary, other than in each case above in the ordinary course of business or as otherwise disclosed in the Canadian Prospectus (including any document deemed incorporated by reference therein).</td></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp; <table id="pagebreak9cbf6431-42f9-4659-a8ae-eefa796efe03" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-18-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(n)</td><td valign="top"><b><i>Independent Accountants.</i></b> Manning Elliott LLP, who have delivered their report with respect to the audited Financial Statements (as defined below and which term as used in this Agreement includes the related notes thereto) filed on SEDAR and included in the Canadian Prospectus, are independent public, certified public or chartered accountants as required by applicable Canadian Securities Laws. There has not been any &#8220;reportable event&#8221; (as that term is defined in National Instrument 51-102 <i>Continuous Disclosure Obligations</i>) with Manning Elliott LLP or any other prior auditor of the Company or any of its Material Subsidiaries.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(o)</td><td valign="top"><b><i>Enforceability of Agreements.</i></b> All agreements between the Company and third parties expressly referenced in or included or incorporated by reference in the Canadian Prospectus are legal, valid and binding obligations of the Company enforceable in accordance with their respective terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors&#8217; rights generally and by general equitable principles, and (ii) the indemnification provisions of certain agreements may be limited by Applicable Law or public policy considerations in respect thereof, and except for any other potentially unenforceable term that, individually or in the aggregate, would not reasonably be expected to be material to the Company.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(p)</td><td valign="top"><b><i>Financial Information.</i></b> The consolidated financial statements of the Company included or incorporated by reference in the Canadian Prospectus, together with the related notes and schedules (the &#8220;<b>Financial Statements</b>&#8221;), present fairly, in all material respects, the consolidated financial position of the Company and the Material Subsidiaries as of the dates indicated and the consolidated statements of comprehensive income, shareholders&#8217; equity and cash flows of the Company for the periods specified. Such Financial Statements conform in all material respects with International Financial Reporting Standards as issued by the International Accounting Standards Board (&#8220;<b>IFRS</b>&#8221;), applied on a consistent basis during the periods involved. The other financial and statistical data with respect to the Company and the Material Subsidiaries included or incorporated by reference in the Canadian Prospectus are accurately and fairly presented in all material respects and prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements (historical or pro forma) that are required to be included or incorporated by reference in the Canadian Prospectus that are not included or incorporated by reference as required; the Company and the Material Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described or included or incorporated by reference in the Canadian Prospectus and all disclosures contained or incorporated by reference therein; and no other financial statements are required to be set forth or to be incorporated by reference in the Canadian Prospectus.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak263f0137-6093-49ae-adb4-a0ff29506252" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-19-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(q)</td><td valign="top"><b><i>Statistical, Industry-Related and Market-Related Data</i></b>. The statistical, industry-related and market-related data included or incorporated by reference in the Canadian Prospectus are based on or derived from sources that the Company reasonably believes are reliable and accurate.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(r)</td><td valign="top"><b><i>Organization</i></b>. The Company and each of its Material Subsidiaries are, and will be, duly organized, validly existing as a corporation and in good standing (where such concept is recognized) under the laws of their respective jurisdictions of organization. The Company and each of the Material Subsidiaries are, and will be, duly licensed or qualified as a foreign corporation for transaction of business and in good standing under the laws of each other jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such license or qualification, and have all corporate power and authority necessary to own or hold their respective properties and to conduct their respective businesses as described in or included or incorporated by reference in the Canadian Prospectus, except where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate, have a Material Adverse Effect or would reasonably be expected to have a Material Adverse Effect.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(s)</td><td valign="top"><b><i>Subsidiaries</i></b>. The subsidiaries of the Company are listed in Schedule &#8220;B&#8221; (individually a &#8220;<b>Material Subsidiary</b>&#8221; and collectively, the &#8220;<b>Material Subsidiaries</b>&#8221;). Except as set forth in or included or incorporated by reference in the Canadian Prospectus, the Company owns, directly or indirectly, all of the equity interests of the Material Subsidiaries free and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity interests of the Material Subsidiaries are validly issued and are fully paid, non-assessable and free of preemptive and similar rights.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(t)</td><td valign="top"><b><i>Minute Books</i></b>. Since January 1, 2017, all existing minute books of the Company and each of the Material Subsidiaries, including all existing records of all meetings and actions of the board of directors (including board committees) and securityholders of the Company (collectively, the &#8220;<b>Corporate Records</b>&#8221;) have been made available to the Underwriter and its counsel, and all such Corporate Records are complete in all material respects (provided that the minutes of certain recent board and board committee meetings are in draft form). There are no transactions, agreements or other actions of the Company or any of the Material Subsidiaries that are required to be recorded in the Corporate Records that are not properly approved and/or recorded in the Corporate Records. All required filings have been made with the appropriate Governmental Authorities in the Province of British Columbia in a timely fashion under the<i> Business Corporations Act </i>(British Columbia), except for such filings where the failure to file would not have a Material Adverse Effect, either individually or in the aggregate.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak3d3f90e4-e21c-4937-974f-f30da2243f99" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-20-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(u)</td><td valign="top"><b><i>No Violation or Default.</i></b> Neither the Company nor any of the Material Subsidiaries is (i) in violation of its articles or by-laws or similar organizational documents; (ii) except as are disclosed in or included or incorporated by reference in the Canadian Prospectus, in violation or default, and no event has occurred that, with notice or lapse of time or both, would constitute such a violation or default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of the Material Subsidiaries is a party or by which the Company or any of the Material Subsidiaries is bound or to which any of the property or assets of the Company or any of the Material Subsidiaries are subject; or (iii) except as disclosed in or included or incorporated by reference in the Canadian Prospectus, in violation of any Applicable Law, except in the case of each of clauses (ii) and (iii) above, for any such violation or default that would not, individually or in the aggregate, have a Material Adverse Effect. To the Company&#8217;s knowledge, no other party under any material agreements, contracts, arrangements or understandings (written or oral) to which it or any of the Material Subsidiaries is a party is in violation or default in any respect thereunder where such violation or default would have a Material Adverse Effect.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(v)</td><td valign="top"><b><i>Disclosure Controls.</i></b> The Company and each of the Material Subsidiaries (other than Material Subsidiaries acquired not more than 365 days prior to the Evaluation Date, as defined below) maintain systems of internal accounting controls applicable under IFRS in applicable periods, or sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management&#8217;s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with IFRS and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management&#8217;s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company&#8217;s internal control over financial reporting is effective and the Company is not aware of any significant deficiencies or material weaknesses in its internal control over financial reporting. Since the date of the latest audited financial statements of the Company included or incorporated by reference in the Canadian Prospectus, there has been no change in the Company&#8217;s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company&#8217;s internal control over financial reporting. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company and each of the Material Subsidiaries is made known to the certifying officers by others within those entities, particularly during the Company&#8217;s fiscal year ended December 31, 2018. The Company&#8217;s certifying officers have evaluated the effectiveness of the Company&#8217;s controls and procedures as of a date within 120 days prior to the filing date of the Form 40-F, for the fiscal year ended December 31, 2018 (such date, the <b>&#8220;Evaluation Date</b>&#8221;). The Company presented in its Form 40-F for the fiscal year ended December 31, 2018 the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date and the disclosure controls and procedures are effective. Since the Evaluation Date, there have been no significant changes in the Company&#8217;s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Securities Act) or, to the Company&#8217;s knowledge, in other factors that could significantly affect the Company&#8217;s internal controls.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(w)</td><td valign="top"><b><i>Capitalization. </i></b>The issued and outstanding Common Shares have been validly issued, are fully paid and non-assessable and are not subject to any pre-emptive rights, rights of first refusal or similar rights. The Company has an authorized, issued and outstanding capitalization as set forth in or included or incorporated by reference in the Canadian Prospectus as of the dates referred to therein (other than the grant of additional options and restricted under the Company&#8217;s existing stock-based compensation plans, or changes in the number of outstanding Common Shares of the Company due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible into, Common Shares outstanding on the date hereof) and such authorized capital stock conforms in all material respects to the description thereof set forth in or included or incorporated by reference in the Canadian Prospectus. The description of the securities of the Company in or included or incorporated by reference in the Canadian Prospectus is complete and accurate in all material respects. Except as disclosed in or contemplated by or included or incorporated by reference in the Canadian Prospectus, as of the date referred to therein, the Company does not have outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any Common Shares or other securities.</td></tr></table>&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakeeaf652c-27e7-4532-98bd-d2e5822dd3b4" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-21-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(x)</td><td valign="top"><b><i>No Applicable Registration or Other Similar Rights.</i></b> There are no persons with registration or other similar rights to have any equity or debt securities qualified for sale under the Canadian Prospectus or included in the offering contemplated by this Agreement who have not waived such rights in writing (including electronically) prior to the execution of this Agreement.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(y)</td><td valign="top"><b><i>No Consents Required. </i></b>No consent, approval, authorization, order, registration or qualification of or with Governmental Authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale by the Company of the Offered Shares, except for the qualification of the Offered Shares for distribution in Canada. <b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(z)</td><td valign="top"><b><i>No Preferential Rights.</i></b> Except as set forth in or included or incorporated by reference in the Canadian Prospectus, (i) except for Common Shares issuable pursuant to outstanding convertible securities of the Company, no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a &#8220;<b>Person</b>&#8221;), has the right, contractual or otherwise, to cause the Company to issue or sell to such Person any Common Shares or other securities of the Company, (ii) the Company has not granted to any Person any preemptive rights, resale rights, rights of first refusal, or any other rights (whether pursuant to a &#8220;poison pill&#8221; provision or otherwise) to purchase any Common Shares or other securities of the Company, (iii) no Person has the right to act as an underwriter or as a financial advisor to the Company in connection with the offer and sale of the Offered Shares, and (iv) no Person has the right, contractual or otherwise, to require the Company to register under the Securities Act or qualify for distribution under Canadian Securities Laws any Common Shares or other securities of the Company, or to include any such Common Shares or other securities in the Canadian Prospectus, whether as a result of the filing of the Canadian Prospectus (or documents incorporated by reference therein) or the sale of the Offered Shares as contemplated thereby or otherwise.</td></tr></table>&nbsp;&nbsp; <p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(aa)</td><td valign="top"><b><i>Forward-Looking Information.</i></b> No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and no forward-looking information within the meaning of Section 1(1) of the <i>Securities Act</i> (British Columbia)) contained or incorporated by reference in the Canadian Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(bb)</td><td valign="top"><b><i>Certificates.</i></b> The form of certificates representing the Offered Shares and the Underwriter&#8217;s Warrant Certificates, to the extent that physical certificates are issued for such securities, will be in due and proper form and conform to the requirements of the <i>Business Corporations Act </i>(British Columbia), the articles of incorporation of the Company and applicable requirements of the TSX, NYSE American, The Depository Trust Company and CDS or will have been otherwise approved by the TSX and NYSE American, if required. The Offered Shares will have been made eligible by CDS.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak152f3080-372f-4021-9abc-d84bdf11c79c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-22-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(cc)</td><td valign="top"><b><i>Transfer Agent.</i></b> Computershare Investor Services Inc. has been duly appointed as registrar and transfer agent for the Common Shares.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(dd)</td><td valign="top"><b><i>No Litigation</i></b>. There are no legal, governmental or regulatory actions, suits or proceedings pending, nor, to the Company&#8217;s knowledge, any legal, governmental or regulatory audits or investigations, to which the Company or a Subsidiary is a party or to which any property of the Company or any of the Material Subsidiaries is the subject that, individually or in the aggregate, if determined adversely to the Company or any of the Material Subsidiaries, could reasonably be expected to have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations under this Agreement; except as disclosed in or included or incorporated by reference in the Canadian Prospectus, to the Company&#8217;s knowledge, no such actions, suits or proceedings are threatened or contemplated by any Governmental Authority or threatened by others; and there are no current or pending audits or investigations, actions, suits or proceedings by or before any Governmental Authority that are required under Canadian Securities Laws to be described in or included or incorporated by reference in the Canadian Prospectus that are not so described.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ee)</td><td valign="top"><b><i>Labor Disputes. </i></b>No labor disturbance by or dispute with employees of the Company or any of the Material Subsidiaries exists or, to the knowledge of the Company, is threatened that could reasonably be expected to have a Material Adverse Effect.<b> </b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ff)</td><td valign="top"><b><i>Local Disputes.</i></b> Except as set forth in the Canadian Prospectus, no dispute between the Company and any local, aboriginal or indigenous group exists, or to the Company&#8217;s knowledge, is threatened or imminent with respect to any of the Company&#8217;s properties or exploration and development activities that could reasonably be expected to have a Material Adverse Effect.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(gg)</td><td valign="top"><b><i>Proposed Acquisition</i></b>. Except as described in or included or incorporated by reference in the Canadian Prospectus, there are no material agreements, contracts, arrangements or understandings (written or oral) with any persons relating to the acquisition or proposed acquisition by the Company or its Material Subsidiaries of any material interest in any business (or part of a business) or corporation, nor are there any other specific contracts or agreements (written or oral) in respect of any such matters in contemplation.</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak42c68619-ad12-492f-8228-153076f34703" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-23-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(hh)</td><td valign="top"><b><i>Intellectual Property Rights</i></b>. Except as disclosed in or included or incorporated by reference in the Canadian Prospectus, the Company and the Material Subsidiaries own, possess, license or have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other intellectual property (collectively, the &#8220;<b>Intellectual Property</b>&#8221;), necessary for the conduct of their respective businesses as now conducted except to the extent that the failure to own, possess, license or otherwise hold adequate rights to use such Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed in or included or incorporated by reference in the Canadian Prospectus: (i) there are no rights of third parties to any such Intellectual Property owned by the Company and the Material Subsidiaries; (ii) to the Company&#8217;s knowledge, there is no infringement by third parties of any such Intellectual Property; (iii) there is no pending or, to the Company&#8217;s knowledge, threatened action, suit, proceeding or claim by others challenging the Company&#8217;s and the Material Subsidiaries&#8217; rights in or to any such Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (iv) there is no pending or, to the Company&#8217;s knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property; (v) there is no pending or, to the Company&#8217;s knowledge, threatened action, suit, proceeding or claim by others that the Company and the Material Subsidiaries infringe or otherwise violate any patent, trademark, copyright, trade secret or other proprietary rights of others; and (vi) the Company and the Material Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or such Material Subsidiary, and all such agreements are in full force and effect, except, in the case of any of clauses (i)-(vi) above, for any such infringement by third parties or any such pending or threatened suit, action, proceeding or claim as would not, individually or in the aggregate, result in a Material Adverse Effect.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top"><b><i>No Material Defaults.</i></b> Neither the Company nor any of the Material Subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Annual Report on Form 40-F, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(jj)</td><td valign="top"><b><i>Certain Market Activities</i></b>. Neither the Company, nor any of the Material Subsidiaries, nor to the knowledge of the Company any of their respective directors or officers has taken, directly or indirectly, any action designed, or that has constituted or might reasonably be expected to cause or result in, under the Exchange Act, Canadian Securities Laws or otherwise, the stabilization, maintenance or manipulation of the price of any security of the Company to facilitate the sale or resale of the Offered Shares.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak2e7a325b-a0b0-4fa7-a7bf-114dbdc618f1" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-24-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(kk)</td><td valign="top"><b><i>Title to Real and Personal Property</i></b>. Except as set forth in or included or incorporated by reference in the Canadian Prospectus, the Company and the Material Subsidiaries have good and marketable title in fee simple to all items of real property owned by them, good and valid title to all personal property described in or included or incorporated by reference in the Canadian Prospectus as being owned by them that are material to the businesses of the Company or such Material Subsidiary, in each case free and clear of all liens, encumbrances and claims, except those that (i) do not materially interfere with the use made and proposed to be made of such property by the Company and any of the Material Subsidiaries or (ii) would not, individually or in the aggregate, have a Material Adverse Effect. Any real or personal property described in or included or incorporated by reference in the Canadian Prospectus as being leased by the Company and any of the Material Subsidiaries is held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the use made or proposed to be made of such property by the Company or any of the Material Subsidiaries or (B) would not, individually or in the aggregate, have a Material Adverse Effect.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ll)</td><td valign="top"><b><i>Mining Rights. </i></b></td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">The Avino Mine, San Gonzalo Mine and Bralorne Gold Mine, as described in or included or incorporated by reference in the Canadian Prospectus (the &#8220;<b>Material Properties</b>&#8221;) are the only resource properties currently material to the Company in which the Company or the Material Subsidiaries have an interest; the Company or through the Material Subsidiaries, hold either freehold title, mining leases, mining concessions, mining claims, exploration permits, prospecting permits or participant interests or other conventional property or proprietary interests or rights, recognized in the jurisdiction in which the Material Properties are located, in respect of the ore bodies and minerals located on the Material Properties in which the Company (through the applicable Material Subsidiary) has an interest under valid, subsisting and enforceable title documents or other recognized and enforceable agreements, contracts, arrangements or understandings, sufficient to permit the Company (through the applicable Material Subsidiary) to explore for and exploit the minerals relating thereto; all leases or claims and permits relating to the Material Properties in which the Company (through the applicable Material Subsidiary) has an interest or right have been validly located and recorded in accordance with all Applicable Laws and are valid and subsisting; except as disclosed in or included or incorporated by reference in the Canadian Prospectus, the Company (through the applicable Material Subsidiary) has all necessary surface rights, access rights and other necessary rights and interests relating to the Material Property in which the Company (through the applicable Material Subsidiary) has an interest granting the Company (through the applicable Material Subsidiary) the right and ability to explore for and exploit minerals, ore and metals for development and production purposes as are appropriate in view of the rights and interest therein of the Company or the applicable Material Subsidiary, with only such exceptions as do not materially interfere with the current use made by the Company or the applicable Material Subsidiary of the rights or interest so held, and each of the proprietary interests or rights and each of the agreements, contracts, arrangements or understandings and obligations relating thereto referred to above is currently in good standing in all respects in the name of the Company or the applicable Material Subsidiary; except as disclosed in the Prospectuses, the Company and the Material Subsidiaries do not have any responsibility or obligation to pay any commission, royalty, license, fee or similar payment to any person with respect to the property rights thereof, except where such fee or payment would not have a Material Adverse Effect, either individually<b> </b>or in the aggregate;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakb701b1a8-7a52-42e0-96af-c9253fd1e78c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-25-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ii)</td><td valign="top">the Company or the applicable Material Subsidiary holds direct interests in the Material Properties, as described in or included or incorporated by reference in the Canadian Prospectus (the &#8220;<b>Project Rights</b>&#8221;), under valid, subsisting and enforceable agreements or instruments, and all such agreements and instruments in connection with the Project Rights are valid and subsisting and enforceable in accordance with their terms;<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iii)</td><td valign="top">the Company and the Material Subsidiaries have identified all the material permits, certificates, and approvals (collectively, the &#8220;<b>Permits</b>&#8221;) which are or will be required for the exploration, development and eventual or actual operation of the Material Properties, which Permits include but are not limited to environmental assessment certificates, water licenses, land tenures, rezoning or zoning variances and other necessary local, provincial, state and federal approvals; and, except as disclosed in or included or incorporated by reference in the Canadian Prospectus, the appropriate Permits have either been received, applied for, or the processes to obtain such Permits have been or will in due course be initiated by the Company or the applicable Material Subsidiaries; and, except as disclosed in or included or incorporated by reference in the Canadian Prospectus, neither the Company nor the applicable Material Subsidiaries know of any issue or reason why the Permits should not be approved and obtained in the ordinary course;<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iv)</td><td valign="top">all assessments or other work required to be performed in relation to the material mining claims and the mining rights of the Company and the applicable Material Subsidiary in order to maintain their respective interests therein, if any, have been performed to date and, except as disclosed in or included or incorporated by reference in the Canadian Prospectus, the Company and the applicable Material Subsidiary have complied in all material respects with all Applicable Laws in this regard as well as with regard to legal and contractual obligations to third parties in this regard except in respect of mineral claims and mining rights that the Company and the applicable Material Subsidiary intend to abandon or relinquish and except for any non-compliance which would not either individually or in the aggregate have a Material Adverse Effect; all such mining claims and mining rights are in good standing in all respects as of the date of this Agreement;<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(v)</td><td valign="top">except as disclosed in or included or incorporated by reference in the Canadian Prospectus, all mining operations on the properties of the Company and the Material Subsidiaries (including, without limitation, the Material Properties) have been conducted in all respects in accordance with good mining and engineering practices and all applicable workers&#8217; compensation and health and safety and workplace laws, regulations and policies have been duly complied with;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(vi)</td><td valign="top">except as disclosed in or included or incorporated by reference in the Canadian Prospectus, there are no environmental audits, evaluations, assessments, studies or tests relating to the Company or the Material Subsidiaries except for ongoing assessments conducted by or on behalf of the Company and the Material Subsidiaries in the ordinary course; <b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(vii)</td><td valign="top">the Company made available to the respective authors thereof prior to the issuance of all of the applicable technical reports filed by the Company on SEDAR relating to the Material Properties (the &#8220;<b>Reports</b>&#8221;), for the purpose of preparing the Reports, as applicable, all information requested, and no such information contained any material misrepresentation as at the relevant time the relevant information was made available;<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(viii)</td><td valign="top">the Reports complied in all material respects with the requirements of NI 43-101 as at the date of each such Report and as of the date hereof there is no new material scientific or technical information concerning the Material Properties that is not included in the Reports; and<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ix)</td><td valign="top">the Company is in compliance, in all material respects, with the provisions of NI 43-101 and has filed all technical reports required thereby and, at the time of filing, all such reports complied, in all material respects, with the requirements of NI 43-101; except as noted in the Canadian Prospectus, all scientific and technical information disclosed in the or included or incorporated by reference in the Canadian Prospectus: (i) is based upon information prepared, reviewed and/or verified by or under the supervision of a &#8220;qualified person&#8221; (as such term is defined in NI 43-101), (ii) has been prepared and disclosed in accordance with Canadian industry standards set forth in NI 43- 101, (iii) was true, complete and accurate in all material respects at the time of filing, (iv) information relating to the Company&#8217;s estimates of mineral reserves and resources as at the date they were prepared has been reviewed and verified by the Company or independent consultants to the Company as being consistent with the Company&#8217;s mineral resource estimates as at the date they were prepared, and (v) the methods used in estimating the Company&#8217;s mineral resources are in accordance with accepted mineral reserve and mineral resource estimation practices.<b><i></i></b></td></tr></tr></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px"><table id="pagebreak2f59ea5b-4028-453e-ac75-57c6a775d8e6" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-26-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(mm)</td><td valign="top"><b><i>Taxes. </i></b>The Company and each of its Subsidiaries have filed all federal, state, provincial, local and foreign tax returns which have been required to be filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being contested in good faith, except where the failure to so file or pay would not have a Material Adverse Effect. Except as otherwise disclosed in or contemplated by or included or incorporated by reference in the Canadian Prospectus, no tax deficiency has been determined adversely to the Company or any of the Material Subsidiaries which would have, individually or in the aggregate, a Material Adverse Effect. The Company has no knowledge of any federal, state, provincial or other governmental tax deficiency, penalty or assessment which has been asserted or threatened in writing against it which would have a Material<b> </b>Adverse Effect.<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(nn)</td><td valign="top"><b><i>No Reliance.</i></b> The Company has not relied upon the Underwriter or legal counsel for the Underwriter for any legal, tax or accounting advice in connection with the offering and sale of the Offered Shares.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(oo)</td><td valign="top"><b><i>Investment Company Act</i></b>. Neither the Company nor any of the Material Subsidiaries is registered or, after giving effect to the offering and sale of the Offered Shares and the application of the proceeds thereof as described in or included or incorporated by reference in the Canadian Prospectus, will be required to register, as an &#8220;investment company&#8221; or an entity &#8220;controlled&#8221; by an &#8220;investment company,&#8221; as such terms are defined in the Investment Company Act of 1940, as amended.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(pp)</td><td valign="top"><b><i>ERISA</i></b>. The Company does not have a material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(qq)</td><td valign="top"><b><i>Company is not a &#8220;Controlled Foreign Corporation&#8221;. </i></b>As of the date hereof, to the knowledge of the Company, the Company is not a &#8220;<i>controlled foreign corporation</i>&#8221;, as such term is defined in the Internal Revenue Code of 1986, as amended (the &#8220;<b>Code</b>&#8221;).</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(rr)</td><td valign="top"><b><i>Insurance</i></b>. The Company and each of the Material Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company and each of the Material Subsidiaries reasonably believe are adequate for the conduct of their properties and as is customary for companies engaged in similar businesses in similar industries.</td></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreake9a2c11e-b6b0-4799-8675-d1e399a6a000" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-27-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ss)</td><td valign="top"><b><i>No Price Stabilization or Manipulation</i>; <i>Compliance with Regulation M</i></b>. The Company has not taken, nor will the Company take, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of the Common Shares, as applicable, or any other &#8220;reference security&#8221; (as defined in Rule 100 of Regulation M under the Exchange Act (&#8220;<b>Regulation M</b>&#8221;)) whether to facilitate the sale or resale of the Offered Shares, as applicable, or otherwise, and has taken no action which would directly or indirectly violate Regulation M.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(tt)</td><td valign="top"><b><i>Working Capital</i></b>. To the Company&#8217;s knowledge and taking into account the Company&#8217;s projected work program, the Company&#8217;s available working capital and the net proceeds receivable by the Company following the sale of the Offered Shares, the Company has sufficient working capital for its present requirements for a limited period of time from the date of the Prospectuses.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(uu)</td><td valign="top"><b><i>Environmental Laws</i>.</b> Except as set forth in or included or incorporated by reference in the Canadian Prospectus:</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">each of the Company and the Material Subsidiaries is in compliance in all material respects with all applicable federal, provincial, state, municipal and local laws, statutes, ordinances, bylaws and regulations and orders, directives and decisions rendered by any ministry, department or administrative or regulatory agency (the &#8220;<b>Environmental Laws</b>&#8221;) relating to the protection of the environment, occupational health and safety or the processing, use, treatment, storage, disposal, discharge, transport or handling of any pollutants, contaminants, chemicals or industrial, toxic or hazardous wastes or substance, including any uranium or derivatives thereof (the &#8220;<b>Hazardous Substances</b>&#8221;), except where such non-compliance would not have a Material Adverse Effect, either individually or in the aggregate;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">each of the Company and the Material Subsidiaries has obtained all licenses, permits, approvals, consents, certificates, registrations and other authorizations under all applicable Environmental Laws (the &#8220;<b>Environmental Permits</b>&#8221;) necessary as at the date hereof for the operation of the businesses carried on by the Company and the Material Subsidiaries, other than those Environmental Permits that are routine in nature and anticipated to be obtained in the ordinary course, and each Environmental Permit is valid, subsisting and in good standing and to the knowledge of the Company neither the Company nor the Material Subsidiaries is in default or breach of any Environmental Permit which would have a Material Adverse Effect, and no proceeding is pending or, to the knowledge of the Company or the Material Subsidiaries, threatened, to revoke or limit any Environmental Permit;</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak5376b210-e455-4893-920b-3346dd9bbf6a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-28-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iii)</td><td valign="top">neither the Company nor the Material Subsidiaries has used, except in compliance with all Environmental Laws and Environmental Permits, and other than as may be incidental to mineral resource exploration, development, mining, recovery, processing or milling, any property or facility which it owns or leases or previously owned or leased, to generate, manufacture, process, distribute, use, treat, store, dispose of, transport or handle any Hazardous Substance; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iv)</td><td valign="top">neither the Company nor the Material Subsidiaries (including, if applicable, any predecessor companies) has received any notice of, or been prosecuted for an offence alleging, non-compliance with any Environmental Law that would have a Material Adverse Effect, and neither the Company nor the Material Subsidiaries (including, if applicable, any predecessor companies) has settled any allegation of non-compliance that would have a Material Adverse Effect short of prosecution. There are no orders or directions relating to environmental matters requiring any material work, repairs, construction or capital expenditures to be made with respect to any of the assets of the Company or the Material Subsidiaries, nor has the Company or the Material Subsidiaries received notice of any of the same; and (v) neither the Company nor the Material Subsidiaries has received any notice wherein it is alleged or stated that the Company or the Material Subsidiaries is potentially responsible for a federal, provincial, state, municipal or local clean-up site or corrective action under any Environmental Laws. Neither the Company nor the Material Subsidiaries has received any request for information in connection with any federal, state, municipal or local inquiries as to disposal sites.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(vv)</td><td valign="top"><b><i>Finder&#8217;s Fee&#8217;s. </i></b>Neither the Company nor any of the Material Subsidiaries has incurred any liability for any finder&#8217;s fees, brokerage commissions or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to the Underwriter pursuant<b> </b>to this Agreement.<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ww)</td><td valign="top"><b><i>Dividend Restrictions</i></b>. Except as may be restricted by Applicable Law, no Material Subsidiary is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with respect to such Material Subsidiaries&#8217; equity securities or from repaying to the Company or any other Material Subsidiaries any amounts that may from time to time become due under any loans or advances to such Material Subsidiaries from the Company or from transferring any property or assets to the Company or to any other Material Subsidiaries.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak61fe5449-c87f-4efb-a3d1-d2e5bfee5fd8" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-29-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(xx)</td><td valign="top"><b><i>No Improper Practices. </i></b>(i) Neither the Company nor the Material Subsidiaries, nor to the Company&#8217;s knowledge, any of their respective directors or officers has, in the past five years, made any unlawful contributions to any candidate for any political office (or failed fully to disclose any contribution in violation of Applicable Law) or made any contribution or other payment to any official of, or candidate for, any federal, state, provincial, municipal, or foreign office or other person charged with similar public or quasi-public duty in violation of any Applicable Law or of the character required to be disclosed in or included or incorporated by reference in the Canadian Prospectuses; (ii) no relationship, direct or indirect, exists between or among the Company or, to the Company&#8217;s knowledge, any Material Subsidiary or any affiliate of any of them, on the one hand, and the directors, officers and shareholders of the Company or, to the Company&#8217;s knowledge, any Material Subsidiary, on the other hand, that is required by Canadian Securities Laws to be described in or included or incorporated by reference in the Canadian Prospectus that is not so described; (iii) no relationship, direct or indirect, exists between or among the Company or any Material Subsidiary or any affiliate of them, on the one hand, and the directors, officers, or shareholders of the Company or, to the Company&#8217;s knowledge, any Material Subsidiary, on the other hand, that is required by the rules of FINRA (or Canadian equivalent thereof) to be described in or included or incorporated by reference in the Canadian Prospectus that is not so described; (iv) except as described in the Canadian Prospectus, there are no material outstanding loans or advances or material guarantees of indebtedness by the Company or, to the Company&#8217;s knowledge, any Material Subsidiary to or for the benefit of any of their respective officers or directors or any of the members of the families of any of them; and (v) the Company has not offered, or caused any placement agent to offer, Common Shares or to make any payment of funds to any person with the intent to influence unlawfully (A) a customer or supplier of the Company or any Material Subsidiary to alter the customer&#8217;s or supplier&#8217;s level or type of business with the Company or any Material Subsidiary or (B) a trade journalist or publication to write or publish favorable information about the Company or any Material Subsidiary or any of their respective products or services, and, (vi) neither the Company nor any Material Subsidiary nor, to the Company&#8217;s knowledge, any director, officer, employee or agent of the Company or any Material Subsidiary has made any payment of funds of the Company or any Material Subsidiary or received or retained any funds in violation of any Applicable Law (including, without limitation, the Foreign Corrupt Practices Act of 1977 and the <i>Corruption of Foreign Public Officials Act </i>(Canada)).</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(yy)</td><td valign="top"><b><i>Operations</i></b>. The operations of the Company and the Material Subsidiaries are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements of the <i>Proceeds of Crime (Money Laundering) and Terrorist Financing Act </i>(Canada), the <i>Corruption of Foreign Public Officials Act </i>(Canada) and applicable rules and regulations thereunder, and the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar applicable rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively, the &#8220;<b>Money Laundering Laws</b>&#8221;); and no action, suit or proceeding by or before any court or Governmental Authority involving the Company or any of the Material Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakbd04a62b-6901-436f-a24e-246742772750" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-30-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(zz)</td><td valign="top"><b><i>Sanctions. </i></b>(i) The Company represents that, neither the Company nor any of the Material Subsidiaries (collectively, the &#8220;<b>Entity</b>&#8221;) nor, to the Company&#8217;s knowledge, any director, officer, employee, agent, affiliate or representative of the Company, is a government, individual, or entity (in this paragraph, a &#8220;<b>Member</b>&#8221;) that is, or is owned or controlled by a Member that is:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="12%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(A)</td><td valign="top">the subject of any sanctions administered or enforced by the U.S. Department of Treasury&#8217;s Office of Foreign Assets Control, the United Nations Security Council, the European Union, Her Majesty&#8217;s Treasury, the Office of the Superintendent of Financial Institutions (Canada), or pursuant to the <i>Special Economic Measures Act </i>(Canada) or other relevant sanctions authority or Applicable Law (collectively, &#8220;<b>Sanctions</b>&#8221;), nor</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(B)</td><td valign="top">located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran, Libya, North Korea, Russia, Sudan, Syria, Ukraine and Zimbabwe).</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ii)</td><td valign="top">The Company represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Member:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="12%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(A)</td><td valign="top">to fund or facilitate any activities or business of or with any Member or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(B)</td><td valign="top">in any other manner that will result in a violation of Sanctions by any Member (including any Member participating in the offering, whether as underwriter, advisor, investor or otherwise).</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iii)</td><td valign="top">The Company represents and covenants that, except as detailed in or included or incorporated by reference in the Canadian Prospectus, for the past 5 years, it has not knowingly engaged in, is not now knowingly engaged in, and will not engage in, any dealings or transactions with any Member, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak89a2b77d-c863-4e57-876f-74d8b272b5c6" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-31-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(aaa)</td><td valign="top"><b><i>Taxes.</i></b> The Company has filed in a timely manner all necessary returns and notices relating to Taxes and has paid all material applicable Taxes of whatsoever nature for all tax years prior to the date of this Agreement to the extent that such taxes have become due; and there are no agreements, waivers or other arrangements providing for an extension of time with respect to the filing of any tax return by the Company, the assessment or reassessment of the Company for any taxation year, or the payment of any material tax, governmental charge, penalty, interest or fine against the Company. There are no actions, suits, proceedings, audits, investigations or claims in progress, now threatened or pending against the Company which could result in a material liability in respect of taxes, charges or levies upon the Company. The Company has withheld (where applicable) from each payment to each of the present and former officers, directors, employees and consultants thereof and any non-resident person, the amount of all taxes and other amounts, including, but not limited to, income tax and other deductions, required to be withheld therefrom, and has paid the same or will pay the same when due to the proper tax or other receiving authority within the time required under applicable tax legislation. The Company has collected and remitted all amounts on account of any sales, use or transfer taxes, including without limitation, as applicable, goods and services tax and harmonized sales tax levied under the <i>Excise Tax Act</i> (Canada) and the comparable provincial legislation and provincial sales taxes required by applicable law to be collected and remitted by it to the appropriate governmental authority. Without limiting the generality of the foregoing, the Company is in full compliance with all registration, collection, remittance, timely reporting and record keeping obligations under the <i>Excise Tax Act</i> (Canada) and applicable provincial sales tax legislation.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(bbb)</td><td valign="top"><b><i>Books and Records.</i></b> The Company has established on their books and records reserves that are adequate for the payment of all Taxes not yet due and payable and there are no liens for taxes on the assets of the Company, except for Taxes not yet due and there are no audits known by the Company or, to the knowledge of the Company, to be pending, of the tax returns of the Company (whether federal, provincial, local or foreign); and to the knowledge of the Company, there are no claims which have been or may be asserted relating to any such tax returns, which audits and claims, if determined adversely, would result in the assertion by any governmental agency of any deficiency that would have a material adverse effect on the assets or properties, business, results of operations, prospects or condition (financial or otherwise) of the Company.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ccc)</td><td valign="top"><b><i>Principal Business Corporation.</i></b> The Company is a &#8220;principal-business corporation&#8221; as defined in subsection 66(15) of the Tax Act.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp; <table id="pagebreakb0974cd0-ba48-409c-af8a-01595820a8df" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-32-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ddd)</td><td valign="top"><b><i>Certification of Disclosure</i></b>. There has been no failure on the part of the Company or any of the Company&#8217;s directors or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley Act, NI 52-109 and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal financial officer of the Company (or each former principal executive officer of the Company and each former principal financial officer of the Company as applicable) and each certifying officer of the Company (or each former certifying officer of the Company and each former certifying officer of the Company as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements and other documents required to be filed by it or furnished by it to the SEC and as required to be made and filed by NI 52-109. For purposes of the preceding sentence, &#8220;principal executive officer&#8221; and &#8220;principal financial officer&#8221; shall have the meanings given to such terms in the Sarbanes-Oxley Act and &#8220;certifying officer&#8221; shall have the meanings given to such term in NI 52-109.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(eee)</td><td valign="top"><b><i>Filings. </i></b>Since January 1, 2017, the Company has filed all documents or information required to be filed by it under Canadian Securities Laws, U.S. Securities Laws, and the rules, regulations and policies of the Exchanges, except where the failure to file such documents or information will not have a Material Adverse Effect, either individually or in the aggregate; all material change reports, annual information forms, financial statements, management proxy circulars and other documents filed by or on behalf of the Company with the Exchanges, the SEC and the Canadian Commissions, as of its date, did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and did not contain a misrepresentation at the time at which it was filed; the Company has not filed any confidential material change report or any document requesting confidential treatment with any Governmental Authority that at the date hereof remains confidential.<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(fff)</td><td valign="top"><b><i>Due Diligence Matters. </i></b>To the knowledge of the Company, all documents and information delivered and provided by or on behalf of the Company to the Underwriter as a part of its due diligence in connection with the Offering were complete and accurate in all material respects.<b><i></i></b></td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px"><table id="pagebreak485ea55e-1329-4bc3-b383-d571f11dae7c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-33-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ggg)</td><td valign="top"><b><i>Cybersecurity</i></b>. There has been no security breach or other compromise of or relating to any of the Company&#8217;s information technology and computer systems, networks, hardware, software, data (including the data of their respective customers, employees, suppliers, vendors and any third party data maintained by or on behalf of them), equipment or technology (collectively, &#8220;<b>IT Systems and Data</b>&#8221;) and (i) the Company has not been notified of, and have no knowledge of any event or condition that would reasonably be expected to result in, any security breach or other compromise to their IT Systems and Data; (ii) the Company is presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except as would not, in the case of this clause (ii), individually or in the aggregate, have a Material Adverse Effect; and (iii) the Company has implemented backup and disaster recovery technology consistent with industry standards and practices.<b><i></i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(hhh)</td><td valign="top"><b><i>Exchange Registration. </i></b>The Common Shares are registered pursuant to Section 12(b) of the Exchange Act and are accepted for trading on the NYSE American under the symbol &#8220;ASM&#8221; and the TSX under the symbol &#8220;ASM&#8221;, and the Company has taken no action designed to terminate the registration of the Common Shares under the Exchange Act or delisting the Common Shares from either of the Exchanges, nor, except as disclosed in or included or incorporated by reference in the Canadian Prospectus, has the Company received any notification that the SEC, the Canadian Commissions or either of the Exchanges is contemplating terminating such registration or listing. Except as disclosed in or included or incorporated by reference in the Canadian Prospectus, the Company has complied in all material respects with the<b> </b>applicable requirements of the Exchanges for maintenance of inclusion of the Common Shares thereon. The Company has obtained, or will obtain by Closing, all necessary consents, approvals, authorizations or orders of, or filing, notification or registration with, the Exchanges, the SEC and the Canadian Commissions, where applicable, required for the listing and trading of the Offered Shares, subject only to satisfying their standard listing and maintenance requirements. The Company has no reason to believe that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance<b> </b>requirements of each Exchange.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iii)</td><td valign="top"><b><i>Regulation S. </i></b>(a) The Company is, and at each Closing Date will be, a Foreign Issuer; and (b) none of the Company, any of its affiliates, or any person acting on its or their behalf (other than the Underwriter, its affiliates and any person acting on any of their behalf, as to which no representation, warranty, covenant or agreement is made) has engaged or will engage in any Directed Selling Efforts or has taken or will take any action that would cause the registration exemptions afforded by Rule 903 of Regulation S to be unavailable for offers and sales of the Offered Shares pursuant to this Agreement. None of the Company, its affiliates or any persons acting on its or their behalf (other than the Underwriter, its affiliates and any person acting on any of their behalf, as to which no representation, warranty, covenant or agreement is made) has offered or sold, or will offer or sell, any of the Offered Shares to, or for the account or benefit of, persons in the United States or U.S. Persons. None of the Company, its affiliates or any person acting on its or their behalf (other than the Underwriter, its affiliates and any person acting on any of their behalf, as to which no representation, warranty, covenant or agreement is made) has taken or will take any action that would cause the exclusion from the registration requirements set forth in Rule 903 of Regulation S to become unavailable with respect to the offer and sale of the Offered Shares.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd0fb996c-d5ae-4812-bb33-1a5e614a4335" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-34-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">In this Agreement, a reference to &#8220;knowledge&#8221; of the Company, means the knowledge of the President &amp; Chief Executive Officer, David Wolfin, the Chief Financial Officer, Nathan Harte, the Chief Operating Officer, Carlos Rodriguez, the Corporate Secretary, Dorothy Chin, and Jasman Yee, a director and qualified person for the Avino Mine, in each case, after reasonable inquiry within the scope of such person&#8217;s duties.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Any certificate signed by any officer on behalf of the Company or any of the Material Subsidiaries and delivered to the Underwriter or counsel for the Underwriter in connection with the offering of the Offered Shares shall be deemed to be a representation and warranty by the Company or Material Subsidiaries, as the case may be, as to matters covered thereby, to the Underwriter.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company acknowledges that the Underwriter and, for purposes of the opinions to be delivered pursuant to Section 16(1) hereof, counsel to the Company and counsel to the Underwriter will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 10 Representations, Warranties and Covenants of the Underwriter</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%">(1)</td><td valign="top">The Underwriter hereby represents and warrants to the Company that:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">it is, and will remain so, until the completion of the Offering, appropriately registered under Canadian Securities Laws so as to permit it to lawfully fulfill its obligations hereunder; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">it has good and sufficient right and authority to enter into this Agreement and complete the transactions contemplated under this Agreement on the terms and conditions set forth herein.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%">(2)</td><td valign="top">The Underwriter hereby covenants and agrees with the Company to the following:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top"><b><i>Compliance with Securities Laws</i></b><i>.</i> The Underwriter will comply with applicable securities laws in connection with the offer and sale and distribution of the Offered Shares.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top"><b><i>Completion of Distribution</i></b><i>.</i> The Underwriter will use its commercially reasonable efforts to complete the distribution of the Offered Shares as promptly as possible after the Closing Time, but in any event no later than seven (7) Business Days following the date of exercise of the entire Over-Allotment Option, if exercised.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaka5ff97f8-d171-48f5-a5df-85b3250f5647" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-35-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 11 Indemnification</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) The Company (referred to in this Section 11 as the <b>&#8220;Indemnifying Party&#8221;</b>) agrees to indemnify and save harmless the Underwriter and its affiliates and each of their respective directors, officers, partners, members, employees, shareholders and agents, and each person, if any, who controls the Underwriter within the meaning of applicable Canadian Securities Laws (each referred to in this Section 11 as an <b>&#8220;Indemnified Party&#8221;</b>) from and against all liabilities, claims, losses (other than loss of profits in connection with the distribution of the Offered Shares), actions, suits, proceedings, charges, reasonable costs, damages and reasonable expenses which an Underwriter Indemnified Party suffers or incurs or is subject to, including all amounts paid to settle actions or satisfy judgments or awards and all reasonable legal fees and expenses that may be incurred in advising with respect to investigating or defending any Claim, in any way caused by, or arising directly or indirectly from, or in consequence of:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">any information or statement contained in the Canadian Prospectus or any Supplementary Material related thereto, or in any certificate or other document of the Company or of any officer of the Company or any of its Material Subsidiaries delivered hereunder or pursuant hereto which contains or is alleged to contain a misrepresentation;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">any omission or alleged omission to state in the Canadian Prospectus, any marketing materials or any Supplementary Material related thereto, or any certificate or other document of the Company or any officer of the Company or any of the Material Subsidiaries delivered hereunder or pursuant hereto any material fact, required to be stated therein or necessary to make any statement therein not misleading in light of the circumstances under which it was made;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(c)</td><td valign="top">any order made or any inquiry, investigation or proceedings commenced or threatened by any securities commission, stock exchange or other Governmental Authority based upon any actual or alleged untrue statement, omission or misrepresentation in the Canadian Prospectus, any marketing materials or any Supplementary Material or based upon any actual or alleged failure to comply with Canadian Securities Laws, preventing or restricting the trading in of the Firm Shares, the Flow-Through Shares or Additional Shares or the distribution of the Offered Shares or any other securities of the Company;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(d)</td><td valign="top">the non-compliance or alleged non-compliance by the Company with any requirement of Canadian Securities Laws in any of the Qualifying Jurisdictions in connection with the transactions herein contemplated including the Company&#8217;s non-compliance or alleged non-compliance with any statutory requirement to make any document available for inspection; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(e)</td><td valign="top">any breach of any representation or warranty of the Company contained herein or in any certificate or other document of the Company or of any officers of the Company or any of the Material Subsidiaries delivered hereunder or pursuant hereto or the failure of the Company to comply with any of its obligations hereunder,</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreake101ca49-d69f-4544-8593-b6fff92f45a5" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-36-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px"><i>provided, however,</i> that the foregoing indemnity (i) shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with written information relating to the Underwriter furnished to the Company by the Underwriter expressly for use in the Canadian Prospectus Supplement, or any such amendment or supplement thereto, and (ii) shall cease to apply if and to the extent that a court of competent jurisdiction in a final judgment from which no appeal can be made or a Governmental Authority in a final ruling from which no appeal can be made determines that any loss, liability, claim, damage or expense resulted primarily and directly from the gross negligence or willful misconduct of the Indemnified Party claiming indemnity. For greater certainty, the Company and the Underwriter agree that they do not intend that any failure by the Underwriter to conduct such reasonable investigation as necessary to provide the Underwriter with reasonable grounds for believing the applicable document contained no misrepresentation shall constitute &#8220;gross negligence&#8221; or &#8220;willful misconduct&#8221; for purposes of this Section 11 or otherwise disentitle the Underwriter from indemnification hereunder.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) If any matter or thing contemplated by this Section 11 (any such matter or thing being hereinafter referred to as a <b>&#8220;Claim&#8221;</b>) is asserted against an Indemnified Party, the Indemnified Party shall notify the Indemnifying Party as soon as practicable, of such Claim to the extent allowable by Applicable Law (provided, however, that failure to provide such notice shall not affect the Indemnified Party&#8217;s right to indemnification hereunder, except (and only) to the extent of material prejudice (through the forfeiture of substantive rights and defenses) to the Indemnifying Party therefrom) and the Indemnifying Party shall be entitled (but not required) to assume the defence of any suit, action or proceeding brought to enforce such Claim; provided, however, that the defence shall be conducted through legal counsel acceptable to the Indemnified Party and that no admission of liability or settlement of any such Claim may be made by the Indemnifying Party or the Indemnified Party without the prior written consent of the other.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) In any such Claim, the Indemnified Party shall have the right to retain separate counsel to act on its behalf provided that the fees and disbursements of such counsel shall be paid by the Indemnified Party unless:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">the Indemnifying Party fails to assume the defence of such Claim on behalf of the Indemnified Party within five (5) business days of receiving detailed notice thereof or, having assumed such defence, has failed to engage counsel promptly or who is acceptable to the Indemnified Parties, or has failed to pursue it diligently;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of the other counsel; or</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak922d4f67-ba9d-4b9d-9380-1094430f9408" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-37-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(c)</td><td valign="top">the named parties to the Claim (including any added, third parties or interpleaded parties) include the Indemnifying Party, and the Indemnifying Parties has been advised by counsel (including internal counsel) that there are legal defences available to such Indemnified Party that are different or in addition to those available to the Indemnifying Party, that representation of the Indemnified Party by counsel for the Indemnifying Party is inappropriate as a result of the potential or actual conflicting interests of those represented, or where in such Indemnified Party&#8217;s reasonable judgment, the Claim gives rise to a conflict of interest between the Indemnifying Party and such Indemnified Party;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="justify">in each of cases Section 11(3)(a), Section 11(3)(b) and Section 11(3)(c), the Indemnifying Party will not have the right to assume the defence of the suit on behalf of such Indemnified Party, but the Indemnifying Party will be liable to pay the fees and expenses of separate counsel for all Indemnified Parties and, in addition, of local counsel in each applicable jurisdiction. Notwithstanding the foregoing, no settlement may be made by an Indemnified Party without the prior written consent of the Indemnifying Party, which consent will not be unreasonably withheld, conditioned or delayed.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 12 Contribution</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) In order to provide for a just and equitable contribution in circumstances in which the indemnity provided in Section 11(1) would otherwise be available in accordance with its terms but is, for any reason, held to be unavailable to or unenforceable by the Indemnified Party or enforceable otherwise than in accordance with its terms or is insufficient to hold the Indemnified Party harmless, the Indemnifying Party shall contribute to the aggregate of all claims, expenses, costs and liabilities and all losses (other than loss of profits in connection with the distribution of the Offered Shares) of the nature contemplated in this Section 12 and suffered or incurred by the Indemnified Parties in such proportions as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriter on the other hand from the distribution of the Offered Shares as well as the relative fault of the parties in connection with the Claim or Claims which resulted in such claims, expenses, costs, damages, liabilities or losses, as well as any other equitable considerations determined by a court of competent jurisdiction; provided that: (i) the Underwriter shall not in any event be liable to contribute, in the aggregate, any amount in excess of the aggregate fee or any portion thereof actually received by the Underwriter hereunder; and (ii) no party who has been determined by a court of competent jurisdiction in a final judgment that has become non-appealable to have engaged in any fraud, fraudulent misrepresentation, wilful misconduct or gross negligence in connection with the Claim or Claims which resulted in such claims, expenses, costs, damages, liabilities or losses shall be entitled to claim contribution from any person who has not been so determined to have engaged in such fraud, fraudulent misrepresentation or gross negligence in connection with such Claim or Claims.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(2) The rights of contribution and indemnity provided in this Section 12 shall be in addition to and not in derogation of any other right to contribution and indemnity which the Underwriter may have by statute or otherwise at law.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaked71d1a0-f181-4fd3-ad3a-d4b53563fd98" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-38-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) In the event that any Company Indemnifying Party is held to be entitled to contribution from the Underwriter under the provisions of any Applicable Law, the Company Indemnifying Party shall be limited to contribution in an amount not exceeding the lesser of:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">the portion of the full amount of the loss or liability giving rise to such contribution for which the Underwriter is responsible, as determined above; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">the amount of the aggregate fee actually received by the Underwriter from the Indemnifying Party hereunder, provided that the Underwriter shall not be required to contribute more than the fee actually received by the Underwriter.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(4) If the Underwriter has reason to believe that a claim for contribution may arise, they shall give the Indemnifying Party notice thereof in writing, but failure to notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligation which it may have to the Underwriter under this Section 12, except (and only) to the extent of material prejudice (through the forfeiture of substantive rights and defenses) to the Indemnifying Party therefrom.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(5) With respect to Section 11 and this Section 12, the Company acknowledges and agrees that the Underwriter is contracting on its own behalf and as agent for its respective affiliates, directors, officers, employees and agents, and each person, if any, controlling any Underwriter or any of its subsidiaries and each shareholder of any Underwriter. Accordingly, the Company hereby constitutes the Underwriter as agent for each person who is entitled to the covenants of the Company contained in Section 11 and this Section 12 and is not a party hereto and the Underwriter agree to accept such agents and to hold in trust for and to enforce such covenants on behalf of such persons. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 13 Certain Covenants of the Company. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company further covenants and agrees with the Underwriter as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top"><b><i>Delivery of Canadian Prospectus</i></b>. The Company shall furnish and deliver to the Underwriter, in such cities as the Underwriter may reasonably and lawfully request without charge, as soon as practicable after the filing of the Canadian Prospectus, and during the period mentioned in Section 13(1)(c) below, as many commercial copies, or originally signed versions, of the Canadian Prospectus and any supplements and amendments thereto as CFCC may reasonably requests for the purposes contemplated by the Canadian Securities Laws. As used herein, the term &#8220;<b>Prospectus Delivery Period</b>&#8221; means such period of time after the first date of the public offering of the Offered Shares and ending on the completion of the distribution of the offering of the Offered Shares, during which time a preliminary prospectus, preliminary prospectus supplement or a prospectus relating to the Offered Shares is required by applicable Canadian Securities Laws in connection with sales of the Offered Shares by any Underwriter or dealer.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak603ce43a-21e6-4547-ac53-fc09b5ab89ea" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-39-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(b)</td><td valign="top"><b><i>CFCC&#8217;s Review of Proposed Amendments and Supplements</i></b>. Prior to amending or supplementing the Canadian Prospectus (including any amendment or supplement through incorporation by reference of any document), the Company shall furnish to CFCC for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each such proposed amendment or supplement, and the Company shall not file or use any such proposed amendment or supplement without CFCC&#8217;s consent which shall not be unreasonably delayed, conditioned or withheld.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(c)</td><td valign="top"><b><i>Securities Law Compliance</i></b>. The Company will prepare the Canadian Prospectus Supplement in a form approved by CFCC and will file the Canadian Prospectus Supplement with the Principal Regulator in accordance with the Shelf Procedures as soon as practicably possible, and in any event, not later than 8:00 p.m. on July 25, 2019. After the date of this Agreement, the Company shall promptly advise CFCC in writing: (i) of the receipt of any comments of, or requests for additional or supplemental information or other communication from, any Canadian Commission with respect to the Canadian Prospectus; (ii) of any request by any Canadian Commission to amend or supplement the Canadian Prospectus or for additional information; (iii) of the issuance by the SEC or any Canadian Commission, as applicable, of any stop order suspending the effectiveness of the Canadian Prospectus or any post-effective amendment thereto or any order directed at any document incorporated by reference in the Canadian Prospectus or any amendment or supplement thereto or any order preventing or suspending the use of any marketing materials or the Canadian Prospectus or any amendment or supplement thereto, or the suspension of the qualification of the Offered Shares for sale in any jurisdiction, or of any proceedings to remove, suspend or terminate from listing or quotation the Common Shares from the TSX or NYSE American, or of the threatening or initiation of any proceedings for any of such purposes; and (iv) of the issuance by any Governmental Authority of any order having the effect of ceasing or suspending the distribution of the Offered Shares, or of the institution or, to the knowledge of the Company, threatening of any proceedings for any such purpose. If the SEC or any Canadian Commission shall enter any such stop order at any time, the Company will use best efforts to obtain the lifting of such order at the earliest possible moment.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak90a4cf34-ab31-40a4-be85-aa4f07a818a5" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-40-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(d)</td><td valign="top"><b><i>Amendments and Supplements to the Prospectuses and Other Securities Law Matters</i></b><b>.</b> The Company will comply with the Canadian Securities Laws so as to permit the completion of the distribution of the Offered Shares during the Prospectus Delivery Period as contemplated in this Agreement and the Canadian Prospectus. If any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Canadian Prospectus so that the Canadian Prospectus does not include a misrepresentation or an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when the Canadian Prospectus is delivered to a purchaser, not misleading, or if during the Prospectus Delivery Period in the reasonable opinion of the Company, CFCC or counsel for the Company or the Underwriter it is otherwise necessary to amend or supplement the Canadian Prospectus to comply with Canadian Securities Laws, the Company agrees (subject to Section 13(1)(b)) to promptly prepare, file with the Canadian Commissions and furnish at its own expense to the Underwriter and to dealers, amendments or supplements to the Canadian Prospectus so that the statements in the Canadian Prospectus as so amended or supplemented will not include a misrepresentation or an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when the Canadian Prospectus is delivered to a purchaser, not be misleading or so that the Canadian Prospectus, as amended or supplemented, will comply with the Canadian Securities Laws. Neither CFCC&#8217;s consent to, nor delivery of, any such amendment or supplement shall constitute a waiver of any of the Company&#8217;s obligations under Section 13(1)(b).</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(e)</td><td valign="top"><b><i>Lock-Up Agreements</i></b>. The Company shall cause each of the persons listed in Schedule &#8220;D&#8221;, and use its commercially reasonable efforts to cause each of the Company&#8217;s other directors and officers, to execute and deliver to CFCC a lock-up agreement in the form of Schedule &#8220;E&#8221; hereto on or before the Closing Date.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(f)</td><td valign="top"><b><i>Stock Exchange Listing. </i></b>The Company shall use its best efforts to obtain the conditional listing of the Offered Shares and the Underwriter&#8217;s Warrant Shares on the TSX by the Closing Time, subject only to the official notice of issuance, and the Company will use its best efforts to have the Offered Shares and the Underwriter&#8217;s Warrant Shares listed and admitted and authorized for trading on the NYSE American by the Closing Time.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(g)</td><td valign="top"><b><i>Blue Sky Compliance</i></b>. The Company shall cooperate with CFCC and counsel for the Underwriter to qualify the Offered Shares for sale under (or obtain exemptions from the application of) Canadian Securities Laws, or other foreign laws of jurisdictions designated by CFCC, shall comply with such laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Offered Shares. The Company shall not be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any jurisdiction in which it is not presently qualified or where it would be subject to taxation as a foreign corporation (except service of process with respect to the offering and sale of the Offered Shares). The Company will advise CFCC promptly of the suspension of the qualification or registration of (or any exemption relating to) the Offered Shares for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its best efforts to obtain the withdrawal thereof at the earliest possible moment.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak7956b5eb-cc1b-4ca8-9465-0a0262a629f9" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-41-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(h)</td><td valign="top"><b><i>Use of Proceeds</i></b>. The Company shall apply the proceeds from the sale of the Firm Shares, the Flow-Through Shares and the Additional Shares sold by it in the manner described under the caption &#8220;<i>Use of Proceeds</i>&#8221; in the Canadian Prospectus.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(i)</td><td valign="top"><b><i>Transfer Agent</i></b>. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Firm Shares, the Flow-Through Shares and the Additional Shares.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(j)</td><td valign="top"><b><i>Earnings Statement.</i></b> As soon as practicable, but in any event no later than 18 months after the date of this Agreement, the Company will make generally available to its security holders and to CFCC an earnings statement (which need not be audited) covering a period of at least 12 months beginning with the first fiscal quarter of the Company commencing after the date of this Agreement which shall satisfy the provisions of Section 11(a) of the Securities Act and the rules and regulations of the SEC thereunder.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(k)</td><td valign="top"><b><i>Agreement Not to Issue, Offer or Sell Additional Shares</i></b>. Except as contemplated by this Agreement, the Company will not, without the prior written consent of CFCC (not to be unreasonably withheld), directly or indirectly issue, offer, pledge, sell, contract to sell, contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer, lend or dispose of directly or indirectly, any Common Shares or securities or other financial instruments convertible into or having the right to acquire Common Shares or enter into any agreement or arrangement under which the Company would acquire or transfer to another, in whole or in part, any of the economic consequences of ownership of Common Shares, whether that agreement or arrangement may be settled by the delivery of Common Shares or other securities or cash, or agree to become bound to do so, or disclose to the public any intention to do so, during the period from the date hereof and ending 90 days following the Closing Date; provided that, notwithstanding the foregoing, the Company may (i) grant of options or other securities (including restricted share units and deferred share units) in the normal course pursuant to the Company&#8217;s stock option plan or other stock-based compensation plans, and issue common shares in accordance with the terms thereof; and (ii) issue equity securities pursuant to the exercise or conversion, as the case may be, of any warrants, special warrants or other convertible securities of the Company outstanding on the date hereof. In addition from the date hereof and ending 90 days following the Closing Date, the Company shall not, without the prior written consent of CFCC (not to be unreasonably withheld), file a prospectus under Canadian Securities Laws or a registration statement under the Securities Act in connection with any transaction by the Company or any person that is prohibited pursuant to the foregoing, except as pursuant to the Offering and for registration statements on Form S-8 relating to employee benefit plans.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakdf9382ff-a3a6-4cce-b865-c2b34d1bc05c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-42-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(l)</td><td valign="top"><b><i>Investment Limitation</i></b>. The Company shall not invest or otherwise use the proceeds received by the Company from its sale of the Offered Shares in such a manner as would require the Company or any of its Material Subsidiaries to register as an investment company under the Investment Company Act of 1940, as amended.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(m)</td><td valign="top"><b><i>No Stabilization or Manipulation; Compliance with Regulation M</i></b>. The Company will not take, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of the Common Shares or any other reference security, whether to facilitate the sale or resale of the Offered Shares or otherwise, and the Company will, and shall cause each of its affiliates to, comply with all applicable provisions of Regulation M. If the limitations of Rule 102 of Regulation M (&#8220;<b>Rule 102</b>&#8221;) do not apply with respect to the Offered Shares or any other reference security pursuant to any exception set forth in Section (d) of Rule 102, then promptly upon notice from CFCC (or, if later, at the time stated in the notice), the Company will, and shall cause each of its affiliates to, comply with Rule 102 as though such exception were not available but the other provisions of Rule 102 (as interpreted by the SEC) did apply.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(n)</td><td valign="top"><b><i>Press Releases/Announcements</i></b>. Prior to the Closing Date, the Company shall not, without CFCC's prior written consent, which shall not be unreasonably delayed, conditioned or withheld, issue any press releases or other communications directly or indirectly and shall not hold any press conferences with respect to the Company or any Material Subsidiaries, the financial condition, results of operations, business, properties, assets, or liabilities of the Company or any Material Subsidiaries, or with respect to the offering of the Offered Shares. Notwithstanding the foregoing, nothing contained in this subsection shall prevent the Company from issuing a press release forthwith in the event that the Company&#8217;s counsel advises that it is necessary in order to comply with Applicable Law or the rules or requirements of the TSX or NYSE American, or from issuing a press release or holding an analyst call in the normal course in connection with the release of financial results.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(o)</td><td valign="top"><b><i>Flow-Through Shares and Additional FT Shares.</i></b> The Company hereby covenants with the Underwriter and the purchasers of the Flow-Through Shares (and any Additional Flow-Through Shares, if applicable) that:</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">the Company is and will continue to be a &#8220;principal-business corporation&#8221; as defined in subsection 66(15) of the Tax Act, until such time as all of the Resource Expenses required to be renounced under the Flow-Through Share Subscription Agreements have been incurred and validly renounced pursuant to the Tax Act;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">the Company will use the gross proceeds from the sale of the Flow-Through Shares (and any Additional Flow-Through Shares, if applicable) to incur (or be deemed to incur) Resource Expenses on the Company&#8217;s Bralorne Mine Property, located in British Columbia;</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak240104e7-b656-40de-bd6b-06b4ffdd2bfd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-43-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iii)</td><td valign="top">the expenses to be renounced by the Company to the FT Purchasers: (i) will constitute Resource Expenses on the effective date of the renunciation; (ii) will not include expenses that are (A) &#8220;Canadian exploration and development overhead expenses&#8221; (as defined in the regulations to the Tax Act for purposes of paragraph 66(12.6)(b) of the Tax Act) of the Company, (B) amounts which constitute specified expenses for seismic data described in paragraph 66(12.6)(b.l) of the Tax Act, or (C) any expenses for prepaid services or rent that do not qualify as outlays and expenses for the period as described in the definition of &#8220;expense&#8221; in subsection 66(15) of the Tax Act; (iii) will not include any amount that has previously been renounced by the Company to the FT Purchasers or to any other person; (iv) would be deductible by the Company in computing its income for the purposes of Part I of the Tax Act but for the renunciation to the FT Purchasers; and (v) will not be subject to any reduction under subsection 66(12.73) of the Tax Act;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iv)</td><td valign="top">the Company will ensure that all expenses renounced to FT Purchasers will qualify as Flow-Through Mining Expenditures and will ensure that all Prescribed Forms properly reflect such Flow-Through Mining Expenditures;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(v)</td><td valign="top">the Company will not reduce the amount renounced to the FT Purchasers pursuant to subsection 66(12.6) of the Tax Act;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(vi)</td><td valign="top">the Company will not be subject to the provisions of subsection 66(12.67) or 66(12.73) of the Tax Act in a manner which impairs its ability to renounce Resource Expenses to the FT Purchasers in an amount equal to the Commitment Amount;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(vii)</td><td valign="top">if the Company receives, or becomes entitled to receive, any assistance which is described in the definition of &#8220;excluded obligation&#8221; in subsection 6202.1(5) of the regulations made under the Tax Act and the receipt of or entitlement to receive such assistance has or will have the effect of reducing the amount of CEE validly renounced to the FT Purchasers under this Agreement to less than the Commitment Amount, the Company will incur additional CEE so that it may renounce Resource Expenses in an amount not less than the Commitment Amount;</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak66af7e15-6699-4a11-9d3b-a21f484a88cd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-44-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(viii)</td><td valign="top">if the Company does not renounce to the FT Purchasers Resource Expenses equal to the Commitment Amount in accordance with the Tax Act, the Company shall indemnify and hold harmless the FT Purchasers and each of the partners of the FT Purchasers if the FT Purchaser is a partnership or a limited partnership (for the purposes of this paragraph each an &#8220;<b>Indemnified Person</b>&#8221;) as to, and pay in settlement thereof to the Indemnified Person on or before the 20th Business Day following the date the amount is determined, an amount equal to the amount of any tax payable under the Tax Act or the laws of a province (for purposes of subparagraph (c)(i) of the definition &#8220;excluded obligation&#8221; in subsection 6202.1(5) of the regulations to the Tax Act) by any Indemnified Person as a consequence of such failure. In the event that the amount renounced by the Company to the FT Purchaser is reduced pursuant to subsection 66(12.73) of the Tax Act, the Company shall indemnify and hold harmless each Indemnified Person as to, and pay to the Indemnified Person, an amount equal to the amount of any tax payable under the Tax Act or the laws of a province (within the meaning of subparagraph (c)(ii) of the definition of &#8220;excluded obligation&#8221; at subsection 6202.1(5) of the regulations to the Tax Act) by the Indemnified Person as a consequence of such reduction. This indemnity is in addition to and not in derogation of any other recourse, rights or remedies the FT Purchasers may have against the Company. For certainty, the foregoing indemnity shall have no force or effect to the extent that such indemnity would otherwise cause the Flow-Through Shares, or any Additional FT Shares, to be &#8220;prescribed shares&#8221; within the meaning of Section 6202.1 of the regulations to the Tax Act;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ix)</td><td valign="top">the Company shall file with the CRA within the time prescribed by subsection 66(12.68) of the Tax Act, the forms prescribed for the purposes of that subsection together with a copy of the Flow-Through Share Subscription Agreement or any &#8220;selling instrument&#8221; contemplated by that subsection and shall forthwith following such filling provide to the FT Purchaser a copy of such form certified by an officer of the Company;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(x)</td><td valign="top">the Company shall incur and renounce Resource Expenses pursuant to the Flow-Through Share Subscription Agreements and all other agreements with other Persons providing for the issue of Flow-Through Shares entered into by the Company on the Closing Date, and the issue of any Additional Flow-Through Shares entered into by the Company on the Option Closing Date (collectively, the &#8220;<b>Other Agreements</b>&#8221;), if applicable, before incurring and renouncing Resource Expenses pursuant to any other agreement which the Company will enter into with any Person with respect to the issue of any other securities which are &#8220;flow-through shares&#8221; as defined in subsection 66(15) of the Tax Act after the Closing Date. If the Company is required under the Tax Act or otherwise to reduce Resource Expenses previously renounced to the FT Purchasers, and unless the FT Purchasers are adversely affected and otherwise agree, the reduction shall be made pro rata by the number of Flow-Through Shares (and any Additional Flow-Through Shares, if applicable) issued or to be issued pursuant to the Flow-Through Share Subscription Agreements and the Other Agreements only after it has first reduced to the extent possible all Resource Expenses renounced to Persons (other than the FT Purchasers and the purchasers under the Other Agreements) under any agreements relating to any other securities which are &#8220;flow-through shares&#8221; as defined in subsection 66(15) of the Tax Act entered into after the Closing Date;</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaka4ecf743-1436-4bf2-9890-b8f58165eb2b" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-45-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(xi)</td><td valign="top">the Company will maintain proper, complete and accurate accounting books and records relating to the Resource Expenses. The Company will retain all such books and records as may be required to support the renunciation of Resource Expenses contemplated by the Flow-Through Share Subscription Agreements;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(xii)</td><td valign="top">the Company shall not enter into any other agreement which would prevent or restrict its ability to renounce Resource Expenses to the FT Purchasers in the amount of the Commitment Amount;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(xiii)</td><td valign="top">the Company shall perform and carry out all acts and things to be completed by it as provided in the Flow-Through Share Subscription Agreement;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(xiv)</td><td valign="top">if the Company amalgamates with any one or more companies, any shares issued to or held by the FT Purchaser as a replacement for the Flow-Through Shares (and any Additional Flow-Through Shares, if applicable) as a result of such amalgamation will qualify, by virtue of subsection 87(4.4) of the Tax Act, as &#8220;flow-through shares&#8221; and in particular will not be &#8220;prescribed shares&#8221; as defined in Section 6202.1 of the regulations to the Tax Act; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(xv)</td><td valign="top">the Company will not knowingly renounce any Resource Expense to any trust, corporation or partnership with which the Company has a &#8220;prohibited relationship&#8221; as defined in subsection 66(12.671) of the Tax Act.</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">CFCC may, in its sole discretion, waive in writing the performance by the Company of any one or more of the foregoing covenants or extend the time for their performance. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 14 All Terms to be Conditions</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company agrees that the conditions contained in this Agreement will be complied with insofar as the same relate to acts to be performed or caused to be performed by the Company. Any breach or failure to comply with any of the conditions set out in this Agreement shall entitle the Underwriter to terminate its obligation to purchase the Offered Shares, by written notice to that effect given to the Company at or prior to the Closing Time or the Option Closing Time, as applicable. It is understood that the Underwriter may waive, in whole or in part, or extend the time for compliance with, any of such terms and conditions without prejudice to the rights of the Underwriter in respect of any such terms and conditions or any other or subsequent breach or non-compliance, provided that to be binding on the Underwriter any such waiver or extension must be in writing and signed by the Underwriter.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak32bd7d7c-0393-487f-bd13-fa0e4bd88f70" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-46-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 15 Termination of this Agreement. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) The Underwriter shall also be entitled to terminate its obligation to purchase the Offered Shares by written notice to that effect to the Company at or prior to the Closing Time or the Option Closing Time, as applicable, if: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">there should occur any material change (actual, anticipated, contemplated or threatened, financial or otherwise) in the business, affairs, operations, assets, liabilities (contingent or otherwise), capital or control of the Company or a change in any material fact (other than a material fact related solely to the Underwriter as provided by the Underwriter in connection with and solely for the purposes of inclusion in the Canadian Prospectus), or the Underwriter becomes aware of any undisclosed material information (other than information related solely to any of the Underwriter as provided by the Underwriter in connection with and solely for the purposes of inclusion in the Canadian Prospectus), which in the opinion of the Underwriter, acting reasonably, would be expected to have a significant adverse effect on the market price or value of the Offered Shares; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">there should develop, occur or come into effect or existence, or be announced, any event, action, state, condition or major financial occurrence, catastrophe, accident, natural disaster, public protest, war or act of terrorism of national or international consequence or any new law or regulation or a change thereof or other occurrence of any nature whatsoever which, in the opinion of an Underwriter, acting reasonably, seriously adversely effects, or involves, or is expected to seriously adversely effect, or involve, financial markets in Canada or the United States generally or the business, operations, assets, liabilities (contingent or otherwise), capital or control of the Company; or</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(c)</td><td valign="top">there should occur or commence or be announced or threatened any inquiry, action, suit, investigation or other proceeding (whether formal or informal) or any order or ruling is issued under or pursuant to any statute of Canada or the United States or of any province or territory of Canada, or state of the United States (including, without limitation, the Commission, the Canadian Commissions, the TSX, NYSE American or the SEC) (other than any such inquiry, action, suit, investigation or other proceeding or order relating solely to the Underwriter), which in the reasonable opinion of an Underwriter would be expected to operate to prevent or materially restrict trading in or distribution of the Offered Shares or would have a significant adverse effect on the market price or value of the Offered Shares; or</td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px">(d) </p></td><td><p style="MARGIN: 0px">the Company is in breach of any term, condition or covenant of this Agreement or any representation or warranty given by the Company in this Agreement becomes false in any material respect.</p></td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak1aa0e0b7-e4ad-4c17-9163-f1f6036d7aca" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-47-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px">(2) If this Agreement is terminated by the Underwriter pursuant to Section 15(1), there shall be no further liability on the part of the Underwriter or of the Company to the Underwriter, except in respect of any liability which may have arisen or may thereafter arise under Section 11, Section 12 and Section 17.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(3) The right of the Underwriter to terminate its obligations under this Agreement is in addition to such other remedies as they may have in respect of any default, act or failure to act of the Company in respect of any of the matters contemplated by this Agreement. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 16 Conditions to the Obligations of the Underwriter.</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">(1) The obligations of the Underwriter under this Agreement are subject to the accuracy of the representations and warranties of the Company contained in this Agreement both as of the date of this Agreement, the Closing Time and the Option Closing Time, the performance by the Company of its obligations under this Agreement and receipt by the Underwriter, at the Closing Time or Option Closing Time, as applicable, of:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">a favourable legal opinion, dated the Closing Date and Option Closing Date, as applicable, from Harper Grey LLP, in its capacity as the Company&#8217;s Canadian counsel, as to matters of Canadian federal and provincial law (who may rely on the opinions of local counsel acceptable to them and to the Underwriter&#8217;s counsel as to matters governed by the laws of any Qualifying Jurisdictions in which it is not qualified to practice), addressed to the Underwriter and the Underwriter&#8217;s counsel, such matters to be as set out in the attached Schedule &#8220;C&#8221; subject to customary limitations, assumptions and qualifications;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">a favourable legal opinion, dated the Closing Date and Option Closing Date, as applicable, from the Company&#8217;s counsel, in form and substance satisfactory to the Underwriter, regarding the Material Subsidiaries, with respect to the following: (i) the incorporation and existence of each Material Subsidiary under the laws of its jurisdiction of incorporation; (ii) as to the registered ownership of the issued and outstanding shares of each Material Subsidiary; and (iii) that each Material Subsidiary has all requisite corporate power under the laws of its jurisdiction of incorporation to carry on its business as presently carried on and own its properties;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(c)</td><td valign="top">a favourable legal opinion, dated the Closing Date and Option Closing Date, as applicable, in form and substance satisfactory to the Underwriter, from local counsel to the Company in Mexico and British Columbia as to title matters in respect of the Material Properties;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(d)</td><td valign="top">certificates or evidence of registration representing, in the aggregate, the Firm Shares and the Flow-Through Shares (and Additional Shares, if applicable) in the name of CDS or its nominee or in such other name(s) as CFCC shall have directed;</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakf72791ac-4800-4d54-9e03-679ba4445e84" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-48-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(e)</td><td valign="top">from Manning Elliott LLP, independent public or chartered professional accountants for the Company, (i) &#8220;long-form comfort letters&#8221; dated, respectively, the date of the Canadian Prospectus Supplement, and addressed to the Underwriter and the board of directors of the Company, in form and substance reasonably satisfactory to CFCC, containing statements and information of the type ordinarily included in accountant&#8217;s &#8220;<i>comfort letters</i>&#8221; to underwriters which letters shall cover with respect to the Financial Statements, including without limitation, certain financial and accounting disclosures contained or incorporated by reference in the Canadian Prospectus and the Canadian Prospectus Supplements, and (ii) confirmation that they are independent public, certified public or chartered accountants as required by the Securities Act;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(f)</td><td valign="top">on the Closing Date, a letter from Manning Elliott LLP, independent public or chartered professional accountants for the Company, dated such date, in form and substance reasonably satisfactory to CFCC, to the effect that they reaffirm the statements made in the letters furnished by them pursuant to Section 16(1)(e), except that the specified date referred to therein for the carrying out of procedures shall be no more than two (2) business days prior to the Closing Date;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(g)</td><td valign="top">the payment of the Underwriting Fee and the delivery of the Underwriter&#8217;s Warrants in accordance with the terms of this Agreement;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(h)</td><td valign="top">evidence satisfactory to CFCC that the Offered Shares shall have been (A) listed and admitted and authorized for trading on the NYSE American, subject only to the official notice of issuance, and (B) conditionally approved for listing on the TSX;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(i)</td><td valign="top">a certificate, dated the Closing Date and the Option Closing Date, as applicable, and signed on behalf of the Company, but without personal liability, by the Chief Executive Officer and by the Chief Financial Officer of the Company, or such other officers of the Company as may be reasonably acceptable to the Underwriter, certifying that: (i) the Company has complied with all covenants and satisfied all terms and conditions hereof to be complied with and satisfied by the Company at or prior to the Closing Time and the Option Closing Time, as applicable; (ii) all the representations and warranties of the Company contained herein are true and correct as of the Closing Time and the Option Closing Time, as applicable with the same force and effect as if made at and as of the Closing Time and the Option Closing Time, as applicable, after giving effect to the transactions contemplated hereby; (iii) the Company is a &#8220;reporting issuer&#8221; or its equivalent under the securities laws of each of the Qualifying Jurisdictions and eligible to use the Short Form Prospectus System under NI 44-101; (iv) there has been no material change relating to the Company and its Subsidiaries, on a consolidated basis, since the date hereof which has not been generally disclosed, except for the offering of the Offered Shares, and with respect to which the requisite material change statement or report has not been filed and no such disclosure has been made on a confidential basis; and (v) that, to the best of the knowledge, information and belief of the persons signing such certificate, after having made reasonable inquiries, no order, ruling or determination having the effect of ceasing or suspending trading in the Common Shares or any other securities of the Company has been issued and no proceedings for such purpose are pending or are contemplated or threatened;</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak7cfcb2be-6022-4f73-b544-765f334abdee" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-49-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(j)</td><td valign="top">at the Closing Time or Option Closing Time, as applicable, certificates dated the Closing Date or the Over-Allotment Option Closing Date, as applicable, signed on behalf of the Company, but without personal liability, by the Chief Executive Officer of the Company or another officer acceptable to the Underwriter, acting reasonably, in form and content satisfactory to the Underwriter, acting reasonably, with respect to the constating documents of the Company; the resolutions of the directors of the Company relevant to the Offering, including the allotment, issue (or reservation for issue) and sale of the Firm Shares, the Flow-Through Shares and Additional Shares, the grant of the Over-Allotment Option, the authorization of this Agreement, the listing of the Firm Shares, the Flow-Through and the Additional Shares on the TSX and NYSE American and transactions contemplated by this Agreement; and the incumbency and signatures of signing officers of the Company;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(k)</td><td valign="top">at the Closing Time, the Company&#8217;s directors and officers shall each have entered into lock-up agreements pursuant to the terms set out in this Agreement, substantially in the form attached hereto as Schedule &#8220;E&#8221;;</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(l)</td><td valign="top">at the Closing Time or Option Closing Time, as applicable, a certificate of status (or equivalent) for the Company and each of the Material Subsidiaries dated within one (1) Business Day (or such earlier or later date as the Underwriter may accept) of the Closing Date; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(m)</td><td valign="top">such other documents as the Underwriter or counsel to the Underwriter may reasonably require; and all proceedings taken by the Company in connection with the issuance and sale of the Offered Shares shall be satisfactory in form and substance to CFCC and counsel for the Underwriter, acting reasonably.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 17 Expenses</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company will pay all expenses and fees in connection with the Offering, including, without limitation: (i) all expenses of or incidental to the creation, issue, sale or distribution of the Offered Shares and the filing of the Canadian Prospectus Supplement, marketing materials and any Supplementary Material; (ii) the fees and expenses of the Company&#8217;s legal counsel; (iii) all costs incurred in connection with the preparation of documentation relating to the Offering; and (iv) all reasonable out-of-pocket expenses of the Underwriter; and (v) all reasonable fees and disbursements of the Underwriter&#8217;s legal counsel to a maximum of C$100,000, plus applicable taxes and disbursements ((iv) and (v), collectively, the &#8220;<b>Underwriter&#8217;s Expenses</b>&#8221;). The Underwriter&#8217;s Expenses incurred by the Underwriter, or on its behalf, shall be payable by the Company immediately upon receiving an invoice therefor from the Underwriter and shall be payable whether or not the transactions contemplated herein are completed. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakb4222856-4b3c-4bfc-9577-7b512c0ff259" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-50-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 18 No Advisory or Fiduciary Relationship</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company acknowledges and agrees that: (a) the purchase and sale of the Offered Shares pursuant to this Agreement, including the determination of the Offering Price of the Offered Shares and any related discounts and commissions, is an arm&#8217;s-length commercial transaction between the Company, on the one hand, and the Underwriter, on the other hand; (b) in connection with the Offering and the process leading to such transaction the Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of the Company or its shareholders, creditors, employees or any other party; (c) the Underwriter has not assumed or will not assume an advisory or fiduciary responsibility in favour of the Company with respect to the Offering or the process leading thereto (irrespective of whether the Underwriter has advised or is currently advising the Company on other matters) and the Underwriter has no obligation to the Company with respect to the Offering except the obligations expressly set forth in this Agreement; (d) the Underwriter and its affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company; and (e) the Underwriter has not provided any legal, accounting, regulatory or tax advice with respect to the Offering and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deems appropriate.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 19 Survival </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The representations, warranties, obligations and agreements of the Company and of the Underwriter contained herein or delivered pursuant to this Agreement shall survive the purchase by the Underwriter of the Offered Shares and shall continue in full force and effect notwithstanding any subsequent disposition by the Underwriter of the Offered Shares and the Underwriter shall be entitled to rely on the representations and warranties of the Company contained in or delivered pursuant to this Agreement notwithstanding any investigation which the Underwriter may undertake or which may be undertaken on the Underwriter&#8217;s behalf.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak4d24357e-1756-4404-b605-2f070187b8d3" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-51-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 20 Notices. </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Any notice to be given hereunder shall be in writing and may be given by facsimile, email or by hand delivery and shall, in the case of notice to the Company, be addressed and faxed or delivered to:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0"><tr><td></td><td colspan="2"><p style="MARGIN: 0px" align="left">Avino Silver &amp; Gold Mines Ltd.</p></td></tr><tr><td></td><td colspan="2"><p style="MARGIN: 0px">Suite 900, 570 Granville Street</p></td></tr><tr><td></td><td colspan="2"><p style="MARGIN: 0px">Vancouver, BC V6C 3P1</p></td></tr><tr><td colspan="3"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td width="10%"><p style="MARGIN: 0px">Attention: </p></td><td><p style="MARGIN: 0px">David Wolfin</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Facsimile: </p></td><td><p style="MARGIN: 0px">(604) 682-3600</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Email: </p></td><td><p style="MARGIN: 0px" align="left">dwolfin@avino.com </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="left">with a copy to (such copy not to constitute notice):</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="justify">Harper Grey LLP </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="justify">3200 - 650 West Georgia Street</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="justify">Vancouver, BC V6B 4P7</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Attention: </p></td><td><p style="MARGIN: 0px">Paul Bowes</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Facsimile: </p></td><td><p style="MARGIN: 0px" align="justify">(604) 669-9385</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Email: </p></td><td><p style="MARGIN: 0px" align="left">pbowes@harpergrey.com </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="left">and in the case of the Underwriter, addressed, faxed, emailed or delivered to:</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="justify">Cantor Fitzgerald Canada Corporation</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="justify">181 University Avenue, Suite 1500</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="justify">Toronto, Ontario M5H 3M7 </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Attention: </p></td><td><p style="MARGIN: 0px" align="justify">Graham Moylan </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Facsimile:</p></td><td><p style="MARGIN: 0px" align="left">(416) 350-2985 </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Email: </p></td><td><p style="MARGIN: 0px" align="left">GMoylan@cantor.com </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px" align="left">with a copy to (such copy not to constitute notice):</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">Stikeman Elliott LLP </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">5300 Commerce Court West</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">199 Bay Street</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">Toronto, Ontario M5L 1B9 </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Attention: </p></td><td><p style="MARGIN: 0px">Ivan Grbe&#353;i&#263; </p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Facsimile: </p></td><td><p style="MARGIN: 0px">(416) 947-0866</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Email:</p></td><td><p style="MARGIN: 0px">igrbesic@stikeman.com </p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The Company and the Underwriter may change their respective addresses for notice by notice given in the manner referred to above. Any such notification shall be deemed to be effective when faxed, delivered or emailed, if faxed, delivered or emailed to the recipient on a business day and before 5:00 p.m. (local time) on such business day, and otherwise shall be deemed to be given at 9:00 a.m. (local time) on the next following business day.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakde7145ed-2e83-4704-8ac2-c9466878caed" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-52-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 21 Market Stabilization</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">In connection with the distribution of the Offered Shares, the Underwriter may effect transactions which stabilize or maintain the market price of the Common Shares at levels other than those which might otherwise prevail in the open market, but in each case as permitted by Applicable Securities Laws. Such stabilizing transactions, if any, may be discontinued by the Underwriter at any time.</p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><b>Section 22 Entire Agreement</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Any and all previous agreements with respect to the purchase and sale of the Offered Shares, whether written or oral, are terminated and this Agreement constitutes the entire agreement between the Company and the Underwriter with respect to the purchase and sale of the Offered Shares.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 23 Governing Law</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">This Agreement shall be governed by and construed in accordance with the laws in force in the Province of British Columbia and the federal laws of Canada applicable therein.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Section 24 Time of the Essence</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">Time shall be of the essence of this Agreement. This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center">[<i>Remainder of page intentionally blank. Signature page follows<b>.</b></i>]<i> </i></p><p style="MARGIN: 0px">&nbsp;</p><i><p style="MARGIN: 0px"><table id="pagebreake636a12c-1eb4-4cdc-87d5-c804a0d133d4" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">-53-</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></i><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">If the foregoing is in accordance with your understanding and is agreed to by you, will you please confirm your acceptance by signing the enclosed copies of this letter at the place indicated and returning the same to us.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Yours very truly,</p><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr height="15"><td></td><td valign="bottom" colspan="2"><p style="MARGIN: 0px" align="left"><b>CANTOR FITZGERALD CANADA CORPORATION</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td width="50%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="5%"><p style="MARGIN: 0px" align="justify">By:</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="top" width="35%"><p style="MARGIN: 0px" align="justify"><i>(Signed) </i><i>Christopher Craib</i><i></i></p></td><td width="10%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Name:</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Christopher Craib</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Title: </p></td><td valign="top"><p style="MARGIN: 0px" align="left">President and Chief Financial Officer</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak306678a6-c0aa-4fee-b799-221ce3da8356" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center"></td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The foregoing is in accordance with our understanding and is accepted by us.</p><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr height="15"><td></td><td valign="top" colspan="2"><p style="MARGIN: 0px" align="left"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td width="50%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="5%"><p style="MARGIN: 0px" align="justify">By:</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="top" width="35%"><p style="MARGIN: 0px" align="justify"><i>(signed) </i><i>David Wolfin</i></p></td><td width="10%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Name: </p></td><td valign="top"><p style="MARGIN: 0px" align="justify">David Wolfin</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Title: </p></td><td valign="top"><p style="MARGIN: 0px" align="left">President and Chief Executive Officer</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakfc90cc7a-8684-4dcd-8cea-c571320c26af" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>SCHEDULE &#8220;A&#8221; </b></p><p style="MARGIN: 0px" align="center"><b>FLOW-THROUGH SHARE SUBSCRIPTION AGREEMENT</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>[<i>Please see attached</i>]</b></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><b><p style="MARGIN: 0px"><table id="pagebreak9d5bfb26-1ed1-4b7d-b3e6-76769d6cf6d3" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px" align="center"><b>SCHEDULE &#8220;B&#8221;</b></p><b><p style="MARGIN: 0px">MATERIAL SUBSIDIARIES</p></b><p style="MARGIN: 0px">&nbsp;</p><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" bgcolor="#ffffff" border="0"><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="28%"><p style="MARGIN: 0px" align="left"><b>Name</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center"><b>Jurisdiction</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center"><b>Ownership </b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="28%"><p style="MARGIN: 0px" align="left">Oniva Silver and Gold Mines S.A. de C.V.</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center">Mexico</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">100%</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="28%"><p style="MARGIN: 0px" align="left">Nueva Vizcaya Mining, S.A. de C.V.</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center">Mexico</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">100%</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="28%"><p style="MARGIN: 0px" align="left">Promotora Avino, S.A. de C.V. </p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center">Mexico</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">79.09%</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="28%"><p style="MARGIN: 0px" align="left">Compa&#241;&#237;a Minera Mexicana de Avino, S.A. de C.V.</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center">Mexico</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">98.45% direct</p><p style="MARGIN: 0px" align="center">1.22% indirect (Promotora)</p><p style="MARGIN: 0px" align="center">99.67% effective&nbsp;</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="28%"><p style="MARGIN: 0px" align="left">Bralorne Gold Mines Ltd.</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="25%"><p style="MARGIN: 0px" align="center">British Columbia</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="24%"><p style="MARGIN: 0px" align="center">100%</p></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak079a5ba4-8e56-4be4-b559-a96f57d7d60a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>SCHEDULE &#8220;C&#8221; </b></p><p style="MARGIN: 0px" align="center"><b>MATTERS TO BE ADDRESSED IN THE COMPANY&#8217;S </b></p><p style="MARGIN: 0px" align="center"><b>CANADIAN COUNSEL OPINION</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%">1.</td><td valign="top">The Company is a &#8220;reporting issuer&#8221;, or its equivalent, in each of the Qualifying Jurisdictions and it is not listed as in default of any requirement of the Canadian Securities Laws in any of the Qualifying Jurisdictions.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">2.</td><td valign="top">The Company is a corporation continued into and validly existing under the <i>Business Corporations Act</i> (British Columbia).</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">3.</td><td valign="top">The Company has all necessary corporate power and capacity to carry on its business as now conducted and to own, lease and operate its property and assets and the Company has the requisite corporate power and capacity to execute and deliver this Agreement and to carry out the transactions contemplated hereby.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">4.</td><td valign="top">The Company has all necessary corporate power and capacity: (i) to issue and sell the Firm Shares, the Flow-Through Shares, and the Additional Shares; (ii) to grant the Over-Allotment Option; and (iii) to issue the Underwriter&#8217;s Warrants.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.</td><td valign="top">The authorized and issued capital of the Company.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">6.</td><td valign="top">The attributes attaching to the Offered Shares are consistent and conform with the description under &#8220;Description of Securities Being Distributed&#8221; in the Canadian Prospectus Supplement.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">7.</td><td valign="top">All necessary corporate action having been taken by Company to authorize the execution and delivery of this Agreement and the Underwriter&#8217;s Warrant Certificates and the performance by the Company of its obligations hereunder and thereunder and to authorize the issuance, sale and delivery of the Firm Shares, the Flow-Through Shares, and the Additional Shares, the grant of the Over-Allotment Option, and the issuance of the Underwriter&#8217;s Warrants and the Underwriter&#8217;s Warrant Shares issuable on the due exercise of the Underwriter&#8217;s Warrants.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">8.</td><td valign="top">The Offered Shares have been and, upon exercise of the Over-Allotment Option in accordance with its terms, the Additional Shares will be duly allotted and validly issued as fully-paid and non-assessable Common Shares in the capital of the Company upon full payment therefor and the issue thereof.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">9.</td><td valign="top">The Underwriter&#8217;s Warrant Shares have been reserved and, upon the exercise of the Underwriter&#8217;s Warrants in accordance with its terms, the Underwriter&#8217;s Warrant Shares will be duly allotted and validly issued as fully-paid and non-assessable Common Shares in the capital of the Company upon full payment therefor and the issue thereof.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">10.</td><td valign="top">The form and terms of the definitive certificate representing the Common Shares and the Underwriter&#8217;s Warrants have been approved by the directors of the Company and comply in all material respects with the Business Corporations Act (British Columbia), the articles of the Company and the rules, policies and by-laws of the TSX.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">11.</td><td valign="top">If applicable, the delivery of the Offered Shares in electronic form does not conflict with the Business Corporations Act (British Columbia) or the articles of the Company and the rules, policies and by-laws of the TSX.</td></tr></tr></tr></tr></tr></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp; &nbsp; <table id="pagebreak6fda0b89-6888-4a44-ae47-e32fd0d95773" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%">12.</td><td valign="top">All necessary corporate action has been taken by the Company to authorize the execution and delivery of each of the Canadian Prospectus Supplement, any Supplementary Material and any Marketing Documents and the filing thereof with the Commissions.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">13.</td><td valign="top">This Agreement and the Underwriter&#8217;s Warrant Certificates have been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to customary limitations and qualifications including, but not limited to, bankruptcy, insolvency and other laws affecting the rights of creditors generally and subject to the qualification that equitable remedies may be granted in the discretion of a court of competent jurisdiction and that enforcement of rights to indemnity, contribution and waiver of contribution set out in this Agreement may be limited by applicable law.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">14.</td><td valign="top">The execution and delivery of this Agreement and the Underwriter&#8217;s Warrant Certificates, the fulfillment of the terms thereof by the Company, the offering, issuance, sale and delivery of the Firm Shares, the Flow-Through Shares and the Additional Shares, the grant of the Over-Allotment Option, and the issuance of the Underwriter&#8217;s Warrants do not and will not conflict with any of the terms, conditions or provisions of the articles of the Company, any resolutions of the shareholders or directors (or any committee thereof) of the Company or any applicable corporate or securities laws of British Columbia or federal laws applicable therein.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">15.</td><td valign="top">The issuance by the Company of the Underwriter&#8217;s Warrant Shares upon the due exercise of the Underwriter&#8217;s Warrants to the Underwriter is exempt from the prospectus requirements of the Canadian Securities Laws of the Qualifying Jurisdictions, and no documents are required to be filed (other than specified forms accompanied by requisite filing fees), proceedings taken or approvals, permits, consents or authorizations obtained by the Company under the Canadian Securities Laws of the Qualifying Jurisdictions to permit such issuance and sale.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">16.</td><td valign="top">Computershare Investor Services Inc. is the duly appointed registrar and transfer agent for the Common Shares of the Company in Canada.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">17.</td><td valign="top">All necessary documents have been filed, all requisite proceedings have been taken and all approvals, permits and consents of the appropriate regulatory authority in each Qualifying Jurisdiction have been obtained to qualify the distribution of the Offered Shares in each of the Qualifying Jurisdictions through persons who are registered under Canadian Securities Laws and who have complied with the relevant provisions of such applicable laws.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">18.</td><td valign="top">Subject only to the standard listing conditions, the Offered Shares have been conditionally listed or approved for listing on the TSX.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">19.</td><td valign="top">As to the accuracy of the statements under the headings &#8220;Eligibility For Investment&#8221; and &#8220;Certain Canadian Federal Income Tax Considerations&#8221; in the Canadian Prospectus Supplement.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">20.</td><td valign="top">That the Flow-Through Shares and Additional Flow-Through Shares are &#8220;flow-through shares&#8221; for the purposes of the Tax Act and are not &#8220;prescribed shares&#8221; within the meaning of Section 6202.1 of the regulations to the Tax Act.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">21.</td><td valign="top">Such other matters as the Underwriter&#8217;s legal counsel may reasonably request prior to the Closing Time.</td></tr></tr></tr></tr></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak47b2a31e-587b-4624-a354-ad70cec11589" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p>&nbsp; <p style="MARGIN: 0px" align="center"><b>SCHEDULE &#8220;D&#8221; </b></p><p style="MARGIN: 0px" align="center"><b>LIST OF PERSONS SUBJECT TO LOCK-UP</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><b>Directors</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left">Gary Robertson* </p><p style="MARGIN: 0px" align="left">David Wolfin*</p><p style="MARGIN: 0px">Peter Bojtos</p>Ronald Andrews <p style="MARGIN: 0px" align="left">&nbsp;</p><p style="MARGIN: 0px" align="left"><b>Senior Officers</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">David Wolfin*</p><p style="MARGIN: 0px" align="left">Carlos Rodriguez </p><p style="MARGIN: 0px" align="left">Nathan Harte</p><p style="MARGIN: 0px" align="justify">Dorothy Chin</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i>* Single lock-up agreement required </i></p><p style="MARGIN: 0px">&nbsp;</p><b><p style="MARGIN: 0px"><table id="pagebreak00c0dff6-3f08-40b5-9a3d-f66d6cbdeaeb" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px" align="center"><b>SCHEDULE &#8220;E&#8221; </b></p><p style="MARGIN: 0px" align="center"><b>FORM OF LOCK-UP AGREEMENT </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="right">__________________, 2019</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="top" width="4%">To: </td><td valign="top">Cantor Fitzgerald Canada Corporation</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr height="15"><td><p style="MARGIN: 0px"><b>Re: </b></p></td><td><p style="MARGIN: 0px" align="justify"><b>Avino Silver &amp; Gold Mines Ltd.</b><b> </b><b>&#8211; Lock-up Agreement</b></p></td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The undersigned understands that this lock-up agreement (the &#8220;<b>Lock-Up Agreement</b>&#8221;) is being delivered to you in connection with the Underwriting Agreement dated July ___, 2019 (the &#8220;<b>Underwriting Agreement</b>&#8221;) entered into by Avino Silver &amp; Gold Mines Ltd. (the &#8220;<b>Company</b>&#8221;) and the Underwriter (as defined in the Underwriting Agreement), with respect to the public offering (the &#8220;<b>Offering</b>&#8221;) of common shares and &#8220;flow-through shares&#8221; of the Company.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">In consideration of the benefit that the Offering will confer upon the undersigned as a director and/or officer of the Company, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned agrees that, in respect of the common shares of the Company (the &#8220;<b>Common Shares</b>&#8221;) owned directly or indirectly by the undersigned, or under control or direction of the undersigned (including holding as a custodian) or with respect to which the undersigned has beneficial ownership (as such term is used in Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the &#8220;<b>Exchange A</b>ct&#8221;)) (collectively, the &#8220;<b>Locked-Up Securities</b>&#8221;), during the period beginning from the date hereof and ending on the day that is ninety (90) days following the date of the closing of the Offering (the &#8220;<b>Lock-Up Period</b>&#8221;), the undersigned will not, without the prior written consent of CFCC, which consent shall not unreasonably be delayed, conditioned or withheld, (i) issue, offer, sell (including, without limitation, any short sale), contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of or transfer, directly or indirectly, or establish or increase a &#8220;put equivalent position&#8221; or liquidate or decrease a &#8220;call equivalent position&#8221; within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations of the United States Securities and Exchange Commission (the &#8220;<b>SEC</b>&#8221;) promulgated thereunder (the &#8220;<b>Exchange Act</b>&#8221;), with respect to, any Locked-Up Securities, or any securities convertible into or exchangeable or exercisable for, or warrants or other rights to purchase, the foregoing, (ii) except as permitted in the Underwriting Agreement cause to become effective a registration statement under the United States Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder (the &#8220;<b>Securities Act</b>&#8221;), or to file a prospectus in Canada, relating to the offer and sale of any Locked-Up Securities or securities convertible into or exercisable or exchangeable for Locked-Up Securities or other rights to purchase Locked-Up Securities or any other securities of the Company that are substantially similar to the Locked-Up Securities, or any securities convertible into or exchangeable or exercisable for, or any warrants or other rights to purchase, the foregoing, (iii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Locked-Up Securities or any other securities of the Company that are substantially similar to the Locked-Up Securities, or any securities convertible into or exchangeable or exercisable for, or any warrants or other rights to purchase, the foregoing, whether any such transaction is to be settled by delivery of Common Shares or such other securities, in cash or otherwise or (iv) publicly announce an intention to effect any transaction specified in clause (i), (ii) or (iii). </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreaka527f494-bb30-44d3-a609-4e342a0bf361" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The foregoing paragraph shall not apply to (A) dispositions to any trust for the direct or indirect benefit of the undersigned and/or the spouse, any lineal descendent, father, mother, brother or sister of the undersigned, provided that such trust agrees in writing with the Underwriter to be bound by the terms of this Lock-Up Agreement, (B)tenders pursuant to a <i>bona fide</i> third party take-over bid made to all holders of Common Shares of the Company or similar acquisition transaction provided that in the event that the take-over bid or acquisition transaction is not completed, any Locked-Up Securities shall remain subject to the restrictions contained in this Lock-Up Agreement, (C) any dispositions pursuant to any pre-existing 10b5-1 plans, (D) exercise of stock options and related dispositions of shares under any stock options issued or outstanding under the Company&#8217;s equity incentive compensation plans, (E) any dispositions required for tax withholdings in connection with the exercise or vesting of any stock options or restricted stock units issued or outstanding under the Company&#8217;s equity incentive compensation plans, (F) by testate succession or intestate succession, (G) by operation of law, such as pursuant to a qualified domestic order or in connection with a divorce settlement, or (H) if acquired by the undersigned in open market transactions after the Offering. </p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">In addition, the undersigned hereby waives any and all pre-emptive rights, participation rights, resale rights, rights of first refusal and similar rights that the undersigned may have in connection with the Offering or with any issuance or sale by the Company of any equity or other securities in connection with the Offering.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The undersigned hereby confirms that the undersigned has not, directly or indirectly, taken, and hereby covenants that the undersigned will not, directly or indirectly, take, any action designed, or which has constituted or will constitute or might reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Common Shares. </p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The undersigned understands that the Company and the Underwriter are relying upon this Lock-Up Agreement in proceeding toward the consummation of the Offering. The undersigned further understands that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned&#8217;s legal representatives, successors, and assigns, and shall enure to the benefit of the Company, the Underwriter and their legal representatives, successors and assigns. </p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">The obligations of the undersigned pursuant to this Lock-Up Agreement may be waived in writing in whole or in part by CFCC in its sole discretion.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the laws of Canada applicable therein.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreake8cfd574-9501-498a-8263-74b26624cb2f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="justify">Yours very truly,</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td style="BORDER-BOTTOM: 1px solid" valign="top" width="35%"></td><td valign="top" width="4%"></td><td style="BORDER-BOTTOM: 1px solid" valign="top" width="38%"><p style="MARGIN: 0px" align="justify">&nbsp;</p></td></tr><tr height="15"><td valign="top" width="35%"><p style="MARGIN: 0px" align="justify">Witness</p></td><td valign="top" width="4%"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="top" width="38%"><p style="MARGIN: 0px" align="justify">Name</p></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr height="15"><td style="BORDER-BOTTOM: 1px solid" valign="top" width="35%"></td><td valign="top" width="4%"></td><td valign="top" width="38%"><p style="MARGIN: 0px" align="justify">&nbsp;</p></td></tr><tr height="15"><td valign="top" width="35%"><p style="MARGIN: 0px" align="left">Number of Common Shares subject to this Lock-Up Agreement</p></td><td valign="top" width="4%"></td><td valign="top" width="38%"></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Acknowledged and agreed as of the date first written above. </p><p style="MARGIN: 0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr height="15"><td></td><td valign="bottom" colspan="2"><p style="MARGIN: 0px" align="left"><b>CANTOR FITZGERALD CANADA CORPORATION </b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td width="50%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="5%"><p style="MARGIN: 0px" align="justify">By:</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="top" width="35%"></td><td width="10%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Name: </p></td><td valign="top"></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"><p style="MARGIN: 0px" align="justify">Title: </p></td><td valign="top"></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></BODY><!--Document Created by EDGARMaster--></html>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
