Effective as of February 1, 2016
the Company
has entered into an assignment agreement with Cabal Limited, a
company of which Theo Bullmore
is a shareholder and director. Under the terms of the assignment agreement, the
Company has agreed to assign its claims against Highb
ank Resources Ltd. in the British Columbia Supreme Court
action number S
-139544 (note 4) to Cabal Limited, in exchange for a cash payment of USD $250,000 to the Company
and the extinguishment of debt in the amount of $295,000 CDN owed by the Company to The
o Bullmore which was
revalued at February 1, 2016 to $728,000.