PLAZA NORTE

Plaza Norte Property – Description On October 26, 2017, the Company, along with, inter alia, its Spanish joint venture partner, Aldesa, was awarded exploration concessions for 120 claims comprising 3,600 hectares in the Santillana Syncline (the “Plaza Norte Project”), through the public tender organized by the government of Cantabria. The rights to the Plaza Norte Project have been granted for an initial term of three years, with the option to renew. The Company participated in the tender process through a joint venture company, CDZ, of which the Company owns a 50% interest. The remaining ownership interest is majority held by the Aldesa Group of Companies (“Aldesa”). Details about Aldesa can be found at www.aldesa.es. Aldesa is a specialized infrastructure construction group with over 40 years experience in the construction industry in Spain and internationally. Emerita and Aldesa formed a joint venture for the purpose of participating in the exploration and development of the Plaza Norte Project. Under the terms of the joint venture, the parties will be equally represented on the board of directors of CDZ and Emerita will be the operator of the board-approved exploration programs. The Plaza Norte Project is in the Cantabria Region, northern Spain, in the Reocin mining district. The Cantabria region is characterized by first world infrastructure including an industrial port and an excellent rail and road network. The Reocin mine is a past producing zinc mine and among the richest zinc mines in the world. Plaza Norte Property – Outlook CDZ has filed the technical report for renewal of the claims comprising the Plaza Norte Project with the Ministry of Mines in Cantabria. The claims were renewed by the Ministry in December 2020. All activities are suspended in this area due to the COVID-19 pandemic. CDZ has received all requisite permits and has initiated the exploration program. The drilling program is focused on evaluating high-grade Mississippi Valley type zinc-lead mineralization in the past producing Reocin mining camp. The program is following up on mineralized drill intercepts identified in previous drilling during exploration campaigns completed primarily in the 1980s and 1990s. The Company has digitally compiled and analyzed the historical technical data consisting of drill core logs and assays from more than 300 diamond drill holes, geophysical data, historical production data, and internal exploration reports for the Project. Analysis of this data has resulted in 4 key areas being identified as high priorities for exploration. These areas are (from north to south): Yuso, Queveda, San Miguel and EMERITA RESOURCES CORP. Management’s Discussion and Analysis For the three months ended December 31, 2020 and 2019 (in Canadian dollars, unless otherwise noted) 5 Mercadal. All of these targets have significant mineralized intercepts, and Mercadal was the site of a past producing mine. To date, 6 drill holes have been completed on the Quevada target (see news release dated August 8, 2019 for target details). All drill holes intersected mineralization and drill holes were generally more than 200 meters apart on this broad target area. The most significant intercepts were: • Hole 1- intersected 4 meters grading 9.0% zinc • Hole 2- intersected 1-meter grading 6.0% zinc • Hole 4- intersected 1-meter grading 9.3% zinc and 1-meter grading 7.8% zinc • Hole 5- intersected 1-meter grading 8.2% zinc The mineralization is hosted within a breccia zone within a dolomite unit at depths between 550 and 600 meters in this area. The Breccia zones hosts pockets of collapse breccia that contains sphalerite and dolomite in variable proportions. The drilling indicates that sphalerite-rich sections on the Quebrada target seen to date are highly variable in shape, grade and width and become dolomite dominated laterally. To date, a dominant structural control that would focus the mineralization such as is seen at the adjacent Riocin deposit has not been identified at the Quevada target. To date, 3 drill holes have been completed on the Yuso target. The most significant intercepts were: • Hole 7- intersected 1 meter grading 6.65% zinc • Hole 8- intersected 1-meter grading 1.67 and 1-meter grading 1.43% zinc • Hole 9- intersected 2.10-meter grading 9.48% zinc including 1-meter grading 16.15% zinc CDZ expects to focus on the past producing Mercadal target for the next phase of drilling, however the project is presently a lower priority and the Company’s focus will shift to the IBW Project