Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Drastic decline and continued volatility of the global financial markets impacting share prices and equity financing.
• Need to raise additional capital to fund operations, retire indebtedness, and conduct due diligence on potential acquisitions.

Mitigation Strategies

• The Company will consider all options including impairment of certain assets if need be.
• The Company will need to raise additional capital from the sale of common shares or other equity or debt instruments to fund existing levels of operations and administration, retire its indebtedness as they come due, and conduct due diligence on identifying and evaluating potential mineral interest acquisitions or other business opportunities.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Drastic decline and continued volatility of global financial markets impacting equity financing for junior resource sector.
• Need to raise additional capital to fund operations, retire indebtedness, and evaluate potential acquisitions.
• Uncertainty regarding the sustainability of financial markets related to the mineral exploration sector.
• Coronavirus global pandemic impacting ability to fund ongoing exploration due to market uncertainty and restricted movement of people and goods.

Mitigation Strategies

• Closed a private placement for gross proceeds of $220,000.
• Successfully challenged the Mexican Mining Authority to reduce land position and eliminate backdated taxes, decreasing accounts payable by approximately $1,400,000.
• Company will consider all options including impairment of certain assets if need be.
• Company will monitor and review current and future cash requirements and match the maturity profile of financial assets and liabilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sustainability of the financial markets related to the mineral exploration sector.
• Potential costs associated with liabilities not covered by insurance or exceeding insurance coverage.
• Compliance with environmental regulations.
• Coronavirus global pandemic impacting financing availability.

Mitigation Strategies

• Monitoring and reviewing current and future cash requirements.
• Obtaining insurance against certain risks.
• Challenging the Mexican Mining Authority to reduce land position and eliminate backdated taxes.
• Managing capital structure based on economic conditions and exploration plans.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sustainability of the financial markets related to the mineral exploration sector.
• Potential costs associated with liabilities not covered by insurance or exceeding insurance coverage.
• Compliance with environmental regulations.
• Impact of the Coronavirus global pandemic on financing availability.

Mitigation Strategies

• Monitoring and reviewing current and future cash requirements and matching the maturity profile of financial assets and liabilities.
• Obtaining insurance against certain risks.
• Challenging the Mexican Mining Authority to reduce land position and eliminate backdated taxes.
• Seeking additional funding through equity financings.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Sustainability of financial markets related to the mineral exploration sector.
• Volatility in the financial markets impacting capital management.
• Limited financial resources and no current revenues.
• Potential for prolonged disruptions due to weather conditions.
• Hazards in drilling and material removal (rock bursts, cave-ins, flooding).
• Potential costs associated with liabilities not covered by insurance.
• Fluctuating mineral prices.
• Competition in the mineral exploration and mining business.
• Need for additional funding for exploration and development.
• Obtaining necessary licenses and permits.
• Ensuring legal title to property interests.
• Compliance with environmental regulations.
• Potential conflicts of interest among directors and officers.
• Impact of the Coronavirus global pandemic on financing availability.

Mitigation Strategies

• Raising capital through the sale of common shares or other equity or debt instruments.
• Obtaining insurance against certain risks.
• Monitoring and reviewing current and future cash requirements.
• Matching the maturity profile of financial assets and liabilities.
• Utilizing annual capital and operating expenditure budgets.
• Disclosing conflicts of interest and abstaining from voting on related matters.
• Participating in joint ventures to reduce financial exposure.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Environmental Challenges

• Sustainability of the financial markets related to the mineral exploration sector.
• Potential impacts of the Mexican government's amendment to the Mining Law nationalizing lithium.
• Risks associated with the nature of mineral exploration and mining (financial risks, environmental damage, legal liability, weather disruptions, etc.).
• Fluctuating resource prices.
• Competition in the mineral exploration and mining business.
• Financing risks due to limited financial resources and no current revenues.
• Obtaining necessary licenses and permits.
• Securing legal title to property interests.
• Compliance with environmental regulations.
• Potential conflicts of interest among directors and officers.
• Impacts of the Coronavirus global pandemic on financing and exploration.

Mitigation Strategies

• Actively pursuing clarity and a resolution to the Mexican Mining Law amendment.
• Engaging with potential strategic partners.
• Obtaining insurance against certain risks.
• Careful evaluation, experience, and knowledge in mineral exploration and development.
• Successful challenge of the Mexican Mining Authority to reduce land position and eliminate backdated taxes.
• Seeking additional funding through the sale of equity securities or other financing methods.
• Taking precautions to ensure that legal title to property interests is properly recorded.
• Complying with environmental regulations.
• Disclosure of conflicts of interest and abstention from voting on related matters.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sustainability of the financial markets related to the mineral exploration sector.
• Fluctuating Prices of minerals
• Competition in the mineral exploration and mining business
• Financing Risks due to limited financial resources and no current revenues
• Obtaining necessary licenses and permits for exploration, development, and mining operations
• Securing legal title to property interests
• Compliance with environmental regulations
• Potential conflicts of interest among directors and officers

Mitigation Strategies

• Raising additional capital from the sale of common shares or other equity or debt instruments
• Careful evaluation, experience and knowledge in mineral exploration and development
• Seeking joint ventures to reduce financial exposure
• Actively pursuing clarity and a resolution to recent changes in Mexican Mining Law

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sustainability of the financial markets related to the mineral exploration sector.
• Potential impacts of the Mexican Government's amendment to the Mining Law stating Lithium is a strategic mineral.

Mitigation Strategies

• Actively pursuing clarity and a resolution to the Mexican Mining Law amendment.
• Discussions with LitioMX (the national lithium company of Mexico) to form a partnership.

Supply Chain Management

Climate-Related Risks & Opportunities