Barkerville Gold Mns Ltd BGMZF

RE:RE:RE:New Rumblings, and, it's not Lightning!

[Cognition777]

No, Bull, we don't own the Revelstoke Mill ... sold for scrap. From MD&A dated April 18, 2017

Goldstream Mill

During the year ended February 28, 2013, the Company recognized an impairment loss of $224,000, which reduced the carrying value of the Goldstream mill to fair value less costs to sell. The impairment loss was primarily a result of declining scrap steel prices.

The Company determined that further indications for impairment existed for the Goldstream Mill during the year ended February 29, 2016.

The recoverable amount of the Milling Plant & Equipment was obtained using a professional valuator, using an orderly liquidation value. The recoverable amount for the Milling Plant & Equipment was $2,697,450 (including 5% selling costs) and an impairment loss of a further $669,450 was recorded for the year ended February 28, 2016. Significant assumptions in this valuation include scrap metal prices.

On September 8, 2016, the Company sold the assets and liabilities related to the Goldstream Mill for proceeds of $2,000,000 in the form of a $1,000,000 promissory note payable as follows:

(i) Lessthan6months-$50,000 (ii) 6 – 12 months - $50,000 (iii)12 – 24 months - $175,000 (iv) 24 – 36 months - $275,000 (v) 36 – 48 months - $450,000

With the remaining $1,000,000 receivable over time by way of having the right to receive 25% of the net profits generated from commercial processing of material through the Mill.

The Company will record proceeds of disposition as they are received due to the uncertainty of collection regarding the amount receivable. Subsequent to December 31, 2016, the first payment due was not received by the Company.