Acquisition Terms

As of August, 11, 2022 Aftermath Silver owns 100% of MInera Challacollo, the Chilean holding company that owns the Challacollo project. In 2019, Aftermath entered into a comprehensive Share Purchase Agreement with Mandalay Resources Corporation to purchase a 100% interest in the Challacollo silver-gold project in Chile. Under the terms of the Share Purchase Agreement, the Company will acquire 100% of the Chilean holding company which holds title to the project for an aggregate of:

* CA$500,000 cash to be paid within 7 days of Exchange Acceptance
* CA$500,000 cash to be paid on or before December 31st, 2019
* CA$1,000,000 cash to be paid on or before December 31st, 2020;
* CA$5,500,000 on or before April 30, 2021, to be paid, at Mandalay’s option, in Aftermath shares of up to a value of CA$2,750,000, and the balance in cash; provided that in no event shall the number of Aftermath shares issued represent more than 49% of Aftermath’s outstanding shares following such payment; and
In April 2021, Aftermath elect to pay $3,000,000 on or before April 30, 2021 and an additional $3,000,000 on or before April 30, 2022. At AAG’s option, 50% of both payments can be in AAG shares.The first tranche of shares payable under this option was issued to Mandalay in May 2021. Mandalay retains a 3% Net Smelter Returns royalty on production, up to a maximum of $3,000,000.

On August 10, 2022 made the final payment of C$3,000,000 to MRC through a cash payment of C$1,000,000, the issuance of 6,122,448 common shares at a deemed price of C$0.245 per share and the issuance of a promissory note in the amount of C$500,000 repayable upon the earlier of: (i) the completion by the Company of a debt or equity financing for gross proceeds of at least C$1,000,000; and (ii) December 31, 2022.

EMX is entitled to a 2% NSR royalty with respect to all Ag products from the Challacollo concessions, payable from and after the date on which 36,000,000 ounces of silver have been sold or credited to the account of Mandalay, up to a maximum amount of $5 million.