Numbers are outTransition Metals Corp.Notes to the Consolidated Financial StatementsMay 31, 2020 and 2019(Expressed in Canadian Dollars)3314.Commitments and Contingencies Environmental Contingencies The Companys exploration activities are subject to various federal, state,provincial, and internationallaws and regulations governing the protection of the environment.These laws and regulations are continually changing and generally becoming more restrictive.The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations.Flow-through Expenditures From time-to time,the Company and its associatesenter into flow-through financings and indemnifythe subscribers of flow-through shares for any tax related amounts that become payable by the subscriber(see Note 9). In the ordinary course of business, the Company is subject to ongoing audits by tax authorities. There are many transactions and calculations for which the ultimate tax determination is uncertain. While the Company believes that its tax filing positions are appropriate and supportable, from time to time, certain matters are reviewed and challenged by the tax authorities.The Companys interpretation of taxation law as applied to transactions and activities may not coincide with the interpretation of the tax authorities..15.Subsequent event a)On June 3, 2020 the Company announce that it has closed a non-brokered private placement. The private placement was for a total of 7,910,331 units (the “Units”) at a price of $0.15 per Unit, for proceeds of $1,186,549.65 and 1,061,188flow-through common shares (the “FT Shares”) at a price of $0.18 per FT Share, for proceeds of $191,013.84 (collectively, the “Offering”). Units consist of a common share and a common share purchase warrant. Each Warrant will entitle the holder to purchase one additional Common Share for a period of 24 months from closing at a price of $0.22. b)The global outbreak of COVID-19 (coronavirus), has had a significant impact on businesses through restrictions put in place by the Canadian government regarding travel, business operations and isolations/quarantine orders. At this time it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions and quarantine/isolation measures that are currently, or may be put, in place by Canadaand other countries to fight the virus. While the extent of the impact is unknown, we anticipate that this outbreak may cause supply chain disruptions, staff shortages and increased government regulations, all of which may negatively impact the Companys business and financial condition.