IBW PAYMOGO PROJECT

Location for IBW Project within the Iberian Pyrite Belt and the three mineral deposits.

Drill program, La Infanta area, IBW Project

Section across the mineralization in La Infanta. Historical drill results and planned holes

Diamond drill hole collar locations for historical drill holes at the Infanta deposit.

Iberia Belt West (“IBW”) Project (formerly referred to as Paymogo) In September 2017, the Upper Court of Andalusía (the “Upper Court”) ruled in favour of Emerita’s appeal relating to the awarding of the IBW Zinc Project (the “IBW Project”) tender to Mina de Aguas Tenidas SA (“Matsa”) and ordered that the qualifying bids pursuant to the tender be reassessed. When the IBW Project was initially awarded to Matsa in 2014, Emerita filed an appeal based on its belief that the tender process contained a number of procedural errors and had not been conducted impartially. The Upper Court found that certain of the criteria used by the panel to evaluate the offers were considered arbitrarily and had not been made known to all the participants in the tender process and that “the panel made an arbitrary assessment of the bids favoring one bidder to the detriment of the others”. As a result, the Upper Court ruled in favour of Emerita’s appeal and rescinded the awarding of the IBW Project. The Upper Court directed the panel to reassess the bids excluding the criteria that were not previously publicly disclosed. In November 2019, the Supreme Court of Spain confirmed the ruling supporting Emerita’s challenge to the tender process, and that the tender bid results be recalculated excluding certain criteria. In February 2020, the Supreme Court instructed the panel responsible for awarding the project to execute its ruling. On September 1, 2020, Emerita was officially notified through a resolution that it is the winning bidder of the IBW mining rights in Huelva. The Tender resolution has been issued by the Provincial Secretary of the Regional Ministry of Industry in Huelva. The resolution declares that Emerita Espana is the winning bidder of the tender. Emerita Espana has submitted the required certificates and is now prepared to accept the mineral rights to the project. Emerita Espana is registered on the Junta de Andalusia official website as the owner of the mineral rights to the IBW Project. The IBW Project is located within the famous Iberian Pyrite Belt, one of the most highly mineralized volcanogenic massive sulfide (VMS) terranes in the world. The IBW Project is located in the western part of the belt, adjacent to the border with Portugal, approximately 70km west of Seville and 50km from the port city of Huelva. The IBW Project extends along a strike length of approximately 18km. Access to the IBW Project is excellent via paved and all-weather gravel roads. Within the IBW Project area, several base metal occurrences have been identified by previous exploration, the most significant of which are the La Infanta and Romanera deposits. EMERITA RESOURCES CORP. Management’s Discussion and Analysis For the three months ended December 31, 2020 and 2019 (in Canadian dollars, unless otherwise noted) 3 The Romanera deposit was drilled primarily by Minera Rio Tinto in the 1990’s and is reported to contain 34 million tonnes grading 0.42% copper, 2.20% lead, 2.3% zinc, 44.4g/t silver and 0.8g/t gold, within which there is a higher-grade resource of 11.21 million tonnes grading 0.40% copper, 2.47% lead, 5.50% zinc, 64.0 g/t silver and 1.0 g/t gold (The Volcanic Hosted Massive Sulphide Deposits of the Iberian Pyrite Belt, Garcia-Cortes ed., 2011). A qualified person, as defined by NI 43-101, has not done sufficient work on behalf of Emerita to classify the historical estimate reported above as current mineral resources or mineral reserves, as Emerita is not treating the historical estimate as such. The historical estimate should not be relied upon. The deposit extends from surface to approximately 350 metres depth on historical drilling. The mineralization remains open for further expansion down dip beyond the limits of the existing drilling. The La Infanta mineralized zone has been drilled from surface where it outcrops to a depth of approximately 100 metres. Numerous high-grade intercepts occur within the zone, and it remains open for expansion at shallow depths. Drilling was completed by Phelps Dodge in the mid-1980’s. La Infanta is located approximately 8km to the east of the La Romanera deposit. The Company has completed the compilation of a comprehensive digital database from the historical work which was well preserved in hard copy. For the Romanera and Infanta deposits at the IBW Project there are 51 and 48 historical drill holes available, respectively, including survey data and assays. A complete list of the drill hole results for both the Infanta and Romanera deposits can be found in the Company’s press releases dated September 9, 2020 and October 15, 2020, respectively. With the digital databases in place, three-dimensional models of the mineralized zones were developed and used for target generation in the upcoming diamond drill program, which the Company has submitted to and has been accepted by the mining authorities in Andalusia. The exploration permit granted to the Company is officially published on the Andalusia Mining portal on the Junta de Andalusia website. This is a requirement of the permitting process by the Department of Mines of Huelva province, who will consult with the environmental department of Huelva province to secure the environmental permit and authorize the exploration activities. The application process in Spain requires a comprehensive exploration plan as well as a reclamation plan. Once issued, the permits are valid for the duration of the license. IBW Project- Outlook The initial program has been designed to drill the deposit in sufficient detail to complete a NI 43-101 compliant mineral resource estimate. The Company is completing protocols with respect to safe work practices relating to managing the present pandemic situation as an important part of project implementation. The Company filed its work program with the appropriate regulators in Huelva Province in support of acquiring permits to commence the diamond drill program on the IBW Project. On February 4, 2021, the Company received approval of the restoration plan for the planned drill program. The initial drilling will focus on the Infanta deposit. This is the zone with the highest-grade mineralization on the IBW Project to date and was only drilled to approximately 110 metres depth historically. The mineralized zone at Infanta remains open down dip and along strike. The first drill program will be comprised of approximately 5,000 metres of drilling in 22 planned drill holes ranging from 100 metres to 300 metres in length. Planned collar locations and an example section for the planned program can be found in the Company’s press release dated November 10, 2020. The core will be logged and sampled in the Company’s facilities in Puebla de Guzman, located 7km from the IBW Project. The samples will be shipped to ALS prep lab in Seville and assayed in ALS Canada. Both laboratories are independent of the Company. The Company has engaged FRASA Ingenieros Consultores (“FRASA”) to prepare the environmental documentation for the IBW Project in order to obtain the environmental license required in the area for exploration activities. In Spain, there are different classifications of land with respect to environmental sensitivity as it pertains to development. The portion of the IBW Project that hosts the Infanta deposit falls within the classification where there are no environmental restrictions for development. The Company has EMERITA RESOURCES CORP. Management’s Discussion and Analysis For the three months ended December 31, 2020 and 2019 (in Canadian dollars, unless otherwise noted) 4 been provided with a copy of a letter from the Environment Department to the Mines Department confirming this is the case and as such there is no requirement for an environmental study for this area of the Project for the purposes of mineral exploration. In order to commence drilling, the Mines Department’s regulations require that the reclamation plan filed by the Company for the diamond drill program be published for 30 days on the government website for comment. The documentation related to the approved drill site reclamation plan has been published and, subsequent to the consultation period, the Mines Department of Huelva province will issue the resolution providing for the drill program to commence. The El Cura area of the property falls in the next category of environmental classification in terms of environmental protection to permit a drill program. The area within the IBW municipality is another step higher. Both areas require the Autorizacion Ambiental Unificada (“AAU”) which is being completed with the assistance of FRASA. The municipality of Puebla de Guzman, where La Infanta is located, is actively collaborating with the Company in facilitating the access agreements with the landowners. The Company does not anticipate any issues with respect to accessing the drill sites based on discussions to date