KNOW WONDER IT IS TIME FOR A CHANGE....DESPICABLECascadero Copper Corporation Notes to Interim Financial Statements For the quarter ended February 28, 2018 and 2017 (Expressed in Canadian dollars - unaudited) 10. RELATED PARTY TRANSACTIONS The related party balances and transactions not disclosed elsewhere in these consolidated financial statements are listed below. Related party transactions in normal course of operations are measured at the exchange amount. Due from and to the related parties are unsecured, and non-interest bearing. a) The Company has the following balances owed to and from related entities as at February 28, 2018: (i) $426,105 (November. 30, 2017 - $474,438) due to Mr. McWilliam. (ii) $312,331 (November 30, 2016 - $334,986) due to Ms. Harder. Ms. Harder is also the immediate family member of Mr. McWilliam. (iii) $103,116 (November 30, 2017 - $104,240) due to Argentine Frontier Resources Inc. (“AFRI”), an entity controlled by Mr. McWilliam and Ms. Harder. (iv) $11,074 (November 30, 2017- $10,922) due to the Company’s Chief Financial Officer (the “CFO”). (v) $15,126 (November 30, 2017 - $15,126) due from Cosmos Mineral Canada, an entity controlled by Mr. McWilliam and Ms. Harder. (vi) $121,183 (November 30, 2017 - $168,848) due from Cosmos Mineral S.A. an entity controlled by Mr. McWilliam and Ms. Harder. b) Effective October 3, 2017, the Company and two of its officers and directors, Ms. Harder and Mr. McWilliam (the “Lenders”) agreed to enter into a loan agreement whereby the Lenders will advance up to $300,000 in readily available funds to the Company. The loan bears an interest rate of 6% per annum. The loan has a minimum term of one year and can be repaid by the Company at any time after the one year period. The Company has agreed to issue as a loan bonus share purchase warrants that enables each of the Lenders to purchase 1,875,000 shares in the Company at $0.08 per share exercisable over a term of five years. As at November 30, 2017, the Company received $200,000 from the Lenders and issued 3,750,000 Loan Bonus Warrants with a fair value of $0.06 per warrant (also see Note 8 (e)). The Company allocated $160,654 to the loan and $139,346 to the Loan Bonus Warrants using the relative fair value method. Two-Third of the allocated Loan Bonus Warrants value in the amount of $92,898 was treated as financing charges to the loan proceeds of $200,000 received. The remaining one-third of the allocated Loan Bonus Warrants value in the amount of $46,448 was included in prepaid expenses and will be treated as financing charges to the remaining loan proceeds of $100,000 when received. The loan has an effective interest rate of 67% and the accretion expense for the year ended November 30, 2017 was $7,266 (2016 - $Nil). c) During the quarter ended February 28, 2018, the Company had the following transactions with related parties: (i) The Company settled debt of $120,000 with Mr. McWilliam and incurred a loss of $40,000 (2016 - $Nil) (see Note 8(c)). (ii) Incurred $4,500 (2017 - $4,500) in office rent to AFRI. (iii) Incurred $40,000 (2017 - $40,000) in management consulting fees to the Mr. McWilliam. (iv) Incurred $ NIL (2017- $ NIL) in automobile expenses to the Mr. McWilliam. (v) Incurred $21,000 (2016 - $21,000) in management consulting fees to Ms. Harder. (vi) Incurred $12,725 (2016 - $8,100) in accounting fees to the CFO of the Company. (vii) The Company entered into a management agreement with Mr. McWilliam on December 1, 2015, pursuant to which the Company has agreed to pay an annual service fee of $160,000 plus $1,100 car allowance per month. The management agreement has an initial term of three years and can be extended another three years. (viii) The Company entered into a service agreement with Ms. Harder on December 1, 2015, pursuant to which the Company has agreed to pay an annual service fee of $84,000. The service agreement has an initial term of one year and is renewable annually.