Unproved Mineral Properties Disclosure | NOTE 3 - UNPROVED MINERAL PROPERTIES Following is the schedule of the Companys unproved mineral properties as at July 31, 2020 and January 31, 2020: Mineral Claims at July 31, 2020 Mineral Claims January 31, 2020 Additions/ Payments Effect of foreign currency translation July 31, 2020 Farellon Project Farellon Alto 1-8 $ 343,648 $ - $ 19,819 $ 363,467 Quina 132,455 - 7,639 140,094 Exeter 134,530 - 7,758 142,288 610,633 - 35,216 645,849 Perth Project 42,484 - 2,450 44,934 Total Costs $ 653,117 $ - $ 37,666 $ 690,783 Mineral Claims at January 31, 2020 January 31, 2019 Additions/ Payments Effect of foreign currency translation January 31, 2020 Farellon Project Farellon Alto 1-8 $ 411,268 $ - $ (67,620) $ 343,648 Quina 158,519 - (26,064) 132,455 Exeter 109,584 50,000 (25,054) 134,530 679,371 50,000 (118,738) 610,633 Perth Project 51,178 - (8,694) 42,484 Total Costs $ 730,549 $ 50,000 $ (127,432) $ 653,117 | NOTE 5 - UNPROVED MINERAL PROPERTIES The following are the schedules of the Companys unproved mineral properties as at January 31, 2020 and 2019: Mineral Claims at January 31, 2020 January 31, 2019 Additions/ Payments Effect of foreign currency translation January 31, 2020 Farellon Project Farellon Alto 1-8 (1) $ 411,268 $ - $ (67,620) $ 343,648 Quina 158,519 - (26,064) 132,455 Exeter 109,584 50,000 (25,054) 134,530 679,371 50,000 (118,738) 610,633 Perth Project 51,178 - (8,694) 42,484 Total Costs $ 730,549 $ 50,000 $ (127,432) $ 653,117 Mineral Claims at January 31, 2019 January 31, 2018 Additions/ Payments Effect of foreign currency translation January 31, 2019 Farellon Project Farellon Alto 1-8 (1) $ 443,027 $ 10,635 $ (42,394) $ 411,268 Quina 117,145 51,962 (10,588) 158,519 Exeter 92,741 26,837 (9,994) 109,584 652,913 89,434 (62,976) 679,371 Perth Project 41,703 14,096 (4,621) 51,178 Total Costs $ 694,616 $ 103,530 $ (67,597) $ 730,549 Farellon Project, Quina Claim On December 15, 2014, the Company entered into an option agreement to earn a 100% interest in the Quina 1-56 Claim (the Quina Option). In order to exercise the Quina Option, the Company was required to pay $150,000 over a four-year-period (the Quina Option Payment), of which $100,000 could have been paid in combination of shares and cash, as detailed in the following schedule: Date Option Payment Shares Issued Upon execution of the option agreement (Execution date) $ 25,000 500,000 12 months subsequent to the Execution date 25,000 833,333 24 months subsequent to the Execution date 25,000 357,143 36 months subsequent to the Execution date 25,000 357,143 48 months subsequent to the Execution date (paid in cash) 50,000 n/a Total $ 150,000 2,047,619 The number of shares issued for each option payment was determined based on the average trading price of the Companys shares during a 30-day period prior to the payment. As of January 31, 2020, the Company had exercised its Quina Option and holds 100% interest in Quina Claim. In addition to the Quina Option Payment, the Company agreed to pay a 1.5% royalty from net smelter returns (NSR) on the Quina Claim, which can be bought out for a one-time payment of $1,500,000. Farellon Project, Exeter Claim On June 3, 2015, Polymet entered into an option agreement, made effective on June 15, 2015, to earn 100% interest in a mining exploration claim Exeter 1-54 (the Exeter Claim). In order to acquire 100% interest in the Exeter Claim, the Company is required to pay a total of $150,000 as outlined in the following schedule: Option Payment Upon execution of the option agreement $ 25,000 On or before May 12, 2016 25,000 On or before May 12, 2017 25,000 On or before May 12, 2018 25,000 On or before May 12, 2019 50,000 Total $ 150,000 In addition to the option payments, the Company agreed to pay a 1.5% NSR royalty on the Exeter Claim, which the Company may buy out for a one-time payment of $750,000 any time after acquiring 100% of the Exeter Claim. On May 13, 2019, the Company made the fifth and the final option payment of $50,000 to acquire a 100% interest in the Exeter Claim. The funds to make the option payment were advanced to the Company by its CEO and director in exchange for a note payable which accumulates interest at 8% per annum compounded monthly, is unsecured and payable on or after July 31, 2021. |