RE:“ KERR MINES INC. CONDENSED INTERIM CONSOLIDATED FINANCIAL Subsequent March 31, 2020, the Company announced on April 23, 2020 its plans for the first phase of its 2020resource and reserve expansion program consisting of up to 5,000 meters of drilling at the Copperstone Minelocated in Arizona, USA which was targeted to commence in second quarter of 2020. The planning of the firstphase of the program and contract negotiations for drilling contractors is now complete.Timing for the commencement of the drilling program has now been delayed in light of delays resulting fromCOVID-19 and recent developments resulting from the remediation of a localized area of the pit high-wall andrestoration of permanent power at the Copperstone Mine underground workings. The high-wall remediationimpacted certain infrastructure and equipment nearby one of the portals to the underground workings inclusive ofpermanent power, which has now been fully restored.The first phase of drilling is now targeted to commence in Q3 once we are in receipt of the final amount owingfrom the Company’s insurers. To date, the Company has received partial recovery of costs incurred and isworking with the insurance company regarding the current outstanding balance