Silver Elephant Mining : Year Ended March 31, 2024 MDA Financial Statements.pdf

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

Dated June 27, 2024

i

Silver Elephant Mining Corp.
Management's Discussion and Analysis
For the Year Ended March 31, 2024
(Expressed in Canadian dollars, except where indicated)
Table Of Contents
Profile And Strategy	1
Discussion Of Operations	3
Selected Annual Information	7
Summary Of Quarterly Results	9
Liquidity And Capital Resources	11
Off-Balance Sheet Arrangements	13
Related Party Transactions	13
Contingencies	14
Proposed Transactions	14
Critical Accounting Policies And Estimates	14
Changes In Accounting Standards	15
Capital Management	16
Fair Value Measurements And Financial Instruments	16
Additional Information	23

ii

Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

This Management's Discussion and Analysis ("MD&A") focuses on significant factors that have affected Silver Elephant Mining Corp. (the "Company", "Issuer", "Silver Elephant" or "ELEF") and its subsidiaries' performance and such factors that may affect its future performance. This MD&A should be read in conjunction with the Company's audited consolidated financial statements and related notes for the year ended March 31, 2024 (the "Annual Financial Statements"), which was prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and the Company's Annual Information Form ("AIF"), dated June 27, 2024 (the "AIF"), all of which are available under the Company's SEDAR profile at www.sedarplus.ca. For the purposes of this MD&A, "Financial Position Date" means March 31, 2024, "this quarter" or "current quarter" means the three month period ended March 31, 2024, the "prior year quarter" means the three month period ended March 31, 2023, "this year" or "current year" means the year ended March 31, 2024, and the "prior year period" means the fifteen month period ended March 31, 2023. The information contained in this MD&A is current to June 27, 2024.

On December 30, 2022, the Company changed its financial year end from December 31 to March 31.

The information provided herein supplements but does not form part of the financial statements. Financial information is expressed in Canadian dollars, unless stated otherwise. All references to "$" or "dollars" in this MD&A refer to Canadian dollars. References to "US$" or "USD" in this MD&A refer to United States dollars. Readers are cautioned that this MD&A contains "forward-looking statements" and that actual events may vary from management's expectations. Readers are encouraged to read the cautionary note contained herein regarding such forward-looking statements. Information on risks associated with investing in the Company's securities are contained in the AIF.

Profile and Strategy

The Company is incorporated under the laws of the province of British Columbia, Canada. The common shares without par value in the capital of the Company (the "Common Shares") are listed for trading on the Toronto Stock Exchange (the "TSX") under the symbol "ELEF" and on the Frankfurt Stock Exchange under the symbol "1P2" and are quoted on the OTC under the symbol "SILEF". The Company maintains its registered and records office at Suite 1610 - 409 Granville Street, Vancouver, British Columbia, Canada, V6C 1T2.

On January 14, 2022, the Company's share capital was consolidated on the basis of one (1) new Common Share for each ten (10) old Common Shares (the "Consolidation"). All Common Share, warrant, option and per Common Share amounts have been retroactively adjusted.

On January 14, 2022, the Company completed a strategic reorganization of the Company's business through a statutory plan of arrangement (the "Spin-off Arrangement") under the Business Corporations Act (British Columbia), dated November 8, 2021. Pursuant to the Spin-off Arrangement, the common shares of the Company were consolidated on a 10:1 basis and each holder of common shares of the Company received in exchange for every 10 pre-consolidation common shares held: (i) one post-consolidation common share of the Company; (ii) one common share of Flying Nickel Mining Corp. ("Flying Nickel"); (iii) one common share of Nevada Vanadium Mining Corp. ("Nevada Vanadium"); and (iv) two common shares of Oracle Commodity Holding Inc. ("Oracle") (formerly Battery Metals Royalties Corp. ("Battery Metals")).

The Company is a mineral exploration stage company. The Company's projects are the Pulacayo Paca silver-lead-zinc property in Bolivia (the "Pulacayo Paca Project"), and the El Triunfo gold-silver-lead-zinc project in Bolivia (the "Triunfo Project"). In addition, as the Company has de facto control over Nevada Vanadium, by extension, the Gibellini vanadium property in Nevada, USA (the "Gibellini Project") is also included in the Company's exploration and evaluation assets. The Company also had de facto control over Flying Nickel, by extension, the Minago nickel property in Canada (the "Minago Project") was also included in the Company's exploration and evaluation assets. The Company ceased to have de facto control over Flying Nickel as at October 1, 2023, therefore Flying Nickel and its Minago Project were deconsolidated from the Company's consolidated financial statements effective October 1, 2023. The Company also owns or holds 100% interests in each of the following projects: (a) the Ulaan Ovoo coal project located in Mongolia, and (b) the Chandgana coal project, located in Mongolia; all of which have been fully impaired.

1

Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

Overall Performance and Outlook

The following highlights the Company's overall performance for the periods presented:

	Year Ended	Fifteen Months Ended
	March 31,	March 31,
	2024	2023
	($)	($)	Change
Net loss attributable to shareholders of the Company	(6,538,045)	(4,562,213)	(1,975,832)
Cash used in operating activities	(260,081)	(6,330,557)		6,070,476
Cash at end of period	2,209,099	1,504,969	704,130
Loss per share attributable to shareholders of the Company - basic and diluted	(0.20)	(0.17)		(0.03)

Corporate Updates

• On April 19, 2023, the Company announced the appointment of Mr. Douglas M. Flett, J.D. to its board of directors. Mr. Flett has been a director of KWG Resource Inc. since 2006 and presently serves as Chairman of the Board. He has also been a director of Tartisan Nickel Corp. since 2006 and is a member of the compensation and audit Committees for both companies. He is a past president and a director of Fletcher Nickel Inc. and a past director of Debut Diamonds Inc. Mr. Flett graduated from the University of Windsor Law School in 1972 and was called to the (Ontario) Bar in 1974. He practiced law in his own corporate commercial law firm until 1996 when he retired from practising law for a career in the resource industry. He continues to be a member of the Law Society of Ontario. He has also completed the Rotman Institute of Corporate Directors SME Program.
• On April 24, 2023, the Company appointed Mr. Adrian Lupascu as the Company's VP of Exploration. Mr. Lupascu is a "Qualified Person" as defined in National Instrument 43-101 ("NI 43-101"). He holds a bachelor's degree in geological engineering and a master's degree in geochemistry. As an accomplished geologist and engineer, he has more than 20 years of experience in mining exploration and development for nickel platinum-group-metals, and other precious and base metals projects. Mr. Lupascu ceased to serve as the Company's VP of Exploration effective August 2, 2023.
• On May 15, 2023, the TSX issued confirmation that it has accepted the Company's intention to extend the terms of common share purchase warrants to purchase 960,000 common shares for an additional two years. The warrants were issued by the Company on May 20, 2020, with a three-year term, closing in two tranches, due to expire on May 1, 2023, and May 20, 2023. The warrants to purchase 463,800 common shares will have their expiry date extended to May 1, 2025 and warrants to purchase 496,200 common shares will have their expiry date extended to May 20, 2025.
• On July 6, 2023, the Company was ceased traded for failing to file its annual financial statements and management's discussion and analysis for the 15 months ended March 31, 2023. The Company filed its annual financial statements and management's discussion and analysis for the 15 months ended March 31, 2023, on August 3, 2023, and the cease trade order was lifted on August 4, 2023.
• On October 18, 2023, the Company appointed Jenna Virk as its Chief Legal Officer. Ms. Virk has been a practising lawyer in British Columbia since 2007 and has over 15 years of experience in corporate finance, securities and commercial law. She also brings with her prior experience as in house counsel for various organizations since 2015, including most recently serving as Director, Legal Affairs and Corporate Secretary of Lithium Americas Corp. She holds a Bachelor of Law from the University of British Columbia and a Bachelor of Business Administration from Simon Fraser University.
• On January 18, 2024, the Company filed a Form 15 with the United States Securities and Exchange Commission ("SEC") with the intention of voluntarily deregistering its common shares with the SEC as a cost saving measure. The Company's common shares do not trade on a national stock exchange such as NYSE or NYSE American in the United States and are not otherwise required to be registered. This move does not affect the trading and listing of the Company's common shares on the Toronto Stock Exchange. The deregistration was completed in April 2024.

2

Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

Discussion Of Operations

Pulacayo Paca Project, Bolivia

The Company holds an interest in the Pulacayo Paca silver-lead-zinc project in Bolivia.

The Pulacayo Paca Project comprises seven mining concessions covering an area of approximately 3,560 hectares of contiguous areas centered on the historical Pulacayo mine and town site. The Pulacayo Paca Project is located 18 kilometers east of the town of Uyuni in the Department of Potosí, in southwestern Bolivia. It is located 460 kilometers south-southeast of the national capital of La Paz and 150 kilometers southwest of the City of Potosí, which is the administrative capital of the department. The Pulacayo Paca Project is fully permitted with secured social licenses for mining.

The Company's 2024 Pulacayo Paca Project objectives are:

• Complete a 3D geological model incorporating collected metadata;
• Design a drill program to test high priority targets identified through modeling and IP mapping; and
• Advance permitting for potential mining exploitation on the property.

On May 11, 2023, the Company reported chip and channel sampling assay results from the ongoing exploration at the Company's flagship Pulacayo-Paca silver project in Bolivia. A total of 120 samples were collected from three exploration priority target areas: Paca conglomerate zone, the Pulacayo San Leon tunnel, and the Rothschild zone (an area immediately northwest of Pulacayo's Tajo Vein system). Assays with significant silver were returned from many of the chip and channel samples taken at regular intervals in those areas. Further details are included in the May 11, 2023 press release available on the Company's website.

On September 11, 2023, the Company entered into a sales and purchase agreement (the "SPA") with Andean Precious Metals Corp. ("APM") and its subsidiary (together "APM Group"), for the sale of up to 800,000 tonnes (the "SPA Quantity") of silver-bearing oxide materials from the Company's Paca property, which, together with the Pulacayo property, comprises the Pulacayo Paca Project. In addition, the Company entered into a master services agreement (the "MSA") with APM Group to provide expertise in mining operations, community relations, logistics and access to technical and geological information, in exchange for APM Group agreeing to pay the Company an aggregate of $6,772,500 (US$5,000,000) (the MSA Payments") as follows:

1. $1,636,632 (US$1,200,000) in cash and non-refundable on signing of the MSA (received);
2. $2,452,077 (US$1,800,000) in cash and non-refundable by January 31, 2024 (the "Second Payment");
3. $2,031,750 (US$1,500,000) in cash and non-refundable before January 31, 2025; and
4. $677,250 (US$500,000) in cash and non-refundable by January 31, 2026 (the "Final MSA Payment").

In addition to the cash consideration, if the London Bullion Market Association silver spot price averages over (the "Additional Consideration"):

1. US$28/oz in any given 260 trading day-interval during the term, then APM Group will pay Silver Elephant a one-time payment of $1,354,500 (US$1,000,000) in cash; and
2. US$32/oz in any given 150 trading day-interval during the term, then APM Group shall pay Silver Elephant a one-time payment of $1,354,500 (US$1,000,000) in cash;

provided that the Additional Consideration is subject to a $2,709,000 (US$2,000,000) maximum in aggregate, and once any payment described under (a) or (b) above is made, the applicable trading day-interval resets to zero to determine whether Additional Consideration is payable.

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Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

The MSA also serves to provide comfort to the APM Group to receive the 800,000 tonnes of silver-bearing oxide materials from the Company.

On January 30, 2024, the parties amended the MSA to: (1) extend the date for completion of certain permitting and other contractual milestones in respect of the Pulacayo Paca Project pursuant to which the APM Group paid a non-refundable extension fee of $201,573 (US$150,000) (the "MSA Extension Fee") to the Company; and, (2) to modify the second payment of $2,452,077 (US$1,800,000) under the MSA to provide for it to be payable in two equal installments, the first of $1,213,497 (US$900,000) received on March 7, 2024 and the second $1,238,580 (US$900,000) received on May 1, 2024, in order for APM Group to proceed with additional purchases of threshold tonnage under the MSA as amended. APM Group has the right to offset the MSA Extension Fee from the Final MSA Payment.

Under the MSA, if the Company fails to comply with certain service commitments and not cured within a certain period, the Company will pay to APM a penalty that is the greater of:

1. $948,150 (US$700,000) in cash, and subject to the approval and policies of the TSX, shares (or cash at the Company's discretion) of the Company with a value of $677,250 (US$500,000) as determined in accordance with the MSA; or
2. the positive difference, if any, between 1.2 times the MSA Payments received by the Company and US$12.00 (US$15.00 if the average London Bullion Market Association silver spot price exceeds US$26/oz from the start of the term of the MSA to the conclusion of the MSA) multiplied by the aggregate tonnage of products that have been acquired by APM Group under the SPA.

In connection with the MSA, shares of ISMC, Apogee Bolivia, ASC Bolivia and ASC Holdings are held in escrow. These shares will be released upon the earlier of:

1. the escrow agent receiving a joint written notice from Silver Elephant and APM; or
2. the escrow agent receives a written direction or decision of a duly appointed arbitrator or court of competent jurisdiction in each case pursuant to the dispute resolution mechanisms provided for in the MSA directing the escrow agent to release the shares.

As at March 31, 2024, the Company has delivered 50,930 tonnes to APM Group under the SPA.

On May 21, 2024 the Company announced that it has identified multiple occurrences of gallium (Ga) and indium (In) in selected drill core at its Pulacayo Paca Project. Further details are included in the May 21, 2024 press release available on the Company's website.

On June 12, 2024, the Company announced the commencement of a diamond drilling program at the Pulacayo Paca Project. The initial drilling program consists of drilling 24 holes totaling 1,500 meters to test and confirm continuity of oxide mineralization at depth in the Paca north area. Further details are included in the June 12, 2024 press release available on the Company's website.

Minago Project, Manitoba Canada

The Minago property is located in northern Manitoba, Canada within the southern part of the Thompson Nickel Belt, approximately 107 kilometers north of the Town of Grand Rapids, Manitoba and 225 kilometres south of the City of Thompson, Manitoba. Provincial Highway 6 transects the eastern portion of the Minago property. The Minago Project is comprised of 94 mining claims and two mining leases.

As a result of the Spin-off Arrangement, the Company consolidated Flying Nickel from January 14, 2022 to September 30, 2023, the period for which the Company had de facto control over Flying Nickel. Effective October 1, 2023, the Company deconsolidated Flying Nickel (the "Flying Nickel Deconsolidation") as de facto control was lost due to dilution. However, as the Company still maintains significant influence over Flying Nickel, it has applied the equity method of accounting for Flying Nickel. The Company has significant influence over Flying Nickel as a result of having the power to participate in the financial and operating policy decisions of Flying Nickel but does not have control or joint control.

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Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

The Company recorded the carrying value of its investment in Flying Nickel at its fair value of $1,657,229, resulting in a loss from deconsolidation of $1,373,090. The fair value of the Company's investment in Flying Nickel is determined based on share price of Flying Nickel on October 12, 2023.

		$
Balance, January 1, 2022 and March 31, 2023	-
Derecognition of net assets of Flying Nickel	24,946,212
Derecognition of non-controlling interest of Flying Nickel	(21,915,893)
Fair value loss from deconsolidation of Flying Nickel	(1,373,090)
	1,657,229
Proportionate share of losses	(122,445)
Balance, March 31, 2024	1,534,784

Gibellini Project, USA

The Gibellini vanadium project (the "Gibellini Project") is comprised of the Gibellini, Bisoni and Louie Hill vanadium deposits and associated claims located in the State of Nevada, USA.

On April 6, 2022, Nevada Vanadium acquired the Fish Creek Ranch property located in Eureka County, Nevada USA for an aggregate purchase price of $5,291,641 (US$4,245,895). The Fish Creek Ranch is adjacent to the Gibellini Project, contains a part of the irrigation canal, and will provide support to the Gibellini Project in the form of water supply.

Triunfo Project, Bolivia

On July 10, 2020, the Company entered into an agreement (the "Triunfo Agreement") with a third party (the "Triunfo Vendor") for the right to conduct mining exploration activities (the "Exploration Right") within the El Triunfo gold-silver-lead-zinc project in La Paz District, Bolivia (the "Triunfo Project") and the right, at the Company's election, to purchase the Triunfo Project for $1,354,500 (US$1,000,000) (the "Purchase Right" and together with the Exploration Right, the "Triunfo Rights"). The Purchase Right can be exercised at any time after the Triunfo Vendor completes the required Bolivian administrative procedures for the Triunfo Project until July 13, 2025 or such further period as the parties may agree. To secure the Triunfo Rights, the Company paid the Triunfo Vendor $135,676 (US$100,000) upon execution of the Triunfo Agreement. Until the Company exercises its Purchase Right, beginning in 2021 the Company must pay the Triunfo Vendor $67,725 (US$50,000) on June 15 of each year to maintain the Triunfo Rights. The Company may elect to terminate the Triunfo Agreement at any time. If the Company exercises the Purchase Right, the Triunfo Vendor will maintain up to a 5% interest of the profits, net of taxes and royalties, derived from the sale of concentrate produced from the Triunfo Project (the "Residual Interest").

If the Company exercises the Purchase Right, the Company may reduce some or all of the Residual Interest at any time by making a lump sum payment to the Triunfo Vendor at any time to reduce some or all of the Residual Interest as follows:

• the Residual Interest may be extinguished for $406,350 (US$300,000);
• the Residual Interest may be reduced by 4% for $338,625 (US$250,000);
• the Residual Interest may be reduced by 3% for $270,900 (US$200,000);
• the Residual Interest may be reduced by 2% for $203,175 (US$150,000); or
• the Residual Interest may be reduced by 1% for $135,450 (US$100,000).

The Triunfo Project area covers approximately 256 hectares located in the La Paz Department, which is located about 75 kilometers to the east of the city of La Paz, Bolivia. The Triunfo Project has access to power and water and is accessible by road year-round. The Triunfo Vendor maintains a positive relationship with the local community.

5

Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

During the year ended March 31, 2024, the Company recorded an impairment charge of $1,235,460 related to the Triunfo Project. As at the Financial Position Date, the Triunfo Project was impaired to $1.

Other Projects

The Company had a 100% interest in the Titan property (the "Titan Project"), a vanadium-titanium-iron project located in Ontario, Canada, which has been fully impaired since 2014.

On August 4, 2023, the Company divested its Titan Project in exchange for cash totaling $231,000, and 13,283,801 common shares (the "Cachee Shares") of Cachee Gold Mines Corp. ("Cachee"), representing a 19.99% interest in Cachee. The Company attributed a value of $199,257 for the Cachee Shares based on Cachee's net assets. During the year ended March 31, 2024, the Company recorded an impairment charge of $199,257 related to the Cachee Shares. As at March 31, 2024, the Cachee Shares were fully impaired. In addition, the Company retains a net smelter royalty ("SE Titan NSR") on the Titan Project equal to 0.5% applicable after the commencement of commercial production if the V205 Vanadium Pentoxide Flake 98% price per pound exceeds US$12 per pound. The SE Titan NSR may be purchased by the acquirer, Osprey Advanced Materials Corp. ("Osprey"), a subsidiary of Cachee, at any time for cash of $500,000.

In addition, Oracle holds a 2% net smelter royalty (the "Oracle Titan NSR") on all mineral products produced from certain mineral claims and leases on the Titan Project after the commencement of commercial production if the V205 Vanadium Pentoxide Flake 98% price per pound exceeds US$12. On August 4, 2023, Oracle granted Osprey, the right to acquire the Oracle Titan NSR at any time, for $1,000,000 in cash. Osprey paid the Company $5,000 as consideration for this right.

Under certain conditions, each of the SE Titan NSR and Oracle Titan NSR (together, the Titan NSRs) may be increased by 0.25% or a portion of each of the Titan NSRs reduced by up to $500,000.

On September 8, 2023, the Company announced that it has successfully renewed the Detailed Environmental Impact Assessment license ("DEIA") required to restart its Ulaan Ovoo coal operations in Mongolia. The DEIA is subject to renewal by the Ministry of Environment every 5 years. The Company has held 100% rights to Ulaan Ovoo mineral claims and mining licenses in Mongolia since 2007. The Ulaan Ovoo project is fully impaired.

6

Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

Exploration and Evaluation Assets

The table below is a summary of the Company's exploration and evaluation assets:

		Bolivia				Canada	USA
		Pulacayo
		Paca	Triunfo		Minago	Gibellini	Total
		($)	($)	($)	($)	($)
Balance, January 1, 2022	20,461,951	672,925	16,452,655	16,017,568	53,605,099
Contingent consideration	-	-		2,000,000		500,000		2,500,000
Licenses, tax and permits	-	69,390	373,740	462,922	906,052
Geological and consulting	843,490	368,948	-	760,989	1,973,427
Feasibility	-	-	1,183,974	-	1,183,974
Exploration and drilling	-	-	1,589,653	-		1,589,653
Royalties	-	-	-	272,941	272,941
Personnel, camp and general	995,951	63,907	376,296	21,840	1,457,994
Incremental cost related to Flying Nickel warrants	-	-		426,468		-		426,468
Foreign exchange	241,585	93,368	-	657,020	991,973
Balance, March 31, 2023	22,542,977	1,268,538	22,402,786	18,693,280	64,907,581
Licenses, tax and permits	14,359	3,003	132,917	37,297	187,576
Geological and consulting	422,516	413	-	110,653	533,582
Feasibility study	-	-	47,297	19,917	67,214
Exploration and drilling	-	-	114,409	-	114,409
Royalties	-	-	-	269,930	269,930
Personnel, camp and general	322,920	1,450	174,005	37,311	535,686
Proceeds from MSA	(431,158)	-	-		-		(431,158)
Impairment	-	(1,235,460)	-	-	(1,235,460)
Deconsolidation of Flying Nickel	-	-	(22,871,414)	-	(22,871,414)
Foreign exchange	192,586	(37,943)	-	20,922	175,565
Balance, March 31, 2024	23,064,200	1	-	19,189,310	42,253,511
Selected Annual Information
			Year Ended 15 Months Ended	Year Ended
					March 31	March 31,	December 31
					2024		2023		2021
					($)		($)		($)
	Net loss attributable to shareholders of the Company		(6,538,045)		(4,562,213)		(6,829,714)
	Basic loss per share attributable to shareholders of the Company			(0.20)		(0.17)		(0.33)
	Diluted loss per share attributable to shareholders of the Company			(0.20)		(0.17)		(0.33)

7

Silver Elephant Mining Corp.

Management's Discussion and Analysis

For the Year Ended March 31, 2024

(Expressed in Canadian dollars, except where indicated)

	March 31,	March 31,	December 31,
	2024	2023	2021
	($)	($)	($)
Cash	2,209,099	1,504,969	1,378,693
Restricted cash	-	-	6,715,407
Total assets	50,739,783	72,577,218	62,046,418
Total non-current financial liabilities	(4,531,846)	(2,052,620)	(2,037,731)

During the year ended March 31, 2024, the Company recorded a net loss of $9,312,514, and a net loss attributable to shareholders of the Company of $6,538,045, compared to $9,739,129 and $4,562,213, respectively, for the fifteen months ended March 31, 2023.

Of note for the year ended March 31, 2024 compared to the fifteen months ended March 31, 2023 are the following items:

• An increase in amortization from $190,016 to $478,198, primarily relating to the Company's building and equipment in Nevada.
• A decrease in advertising and promotion from $757,130 to $115,002. The current year amount is reduced as a result of the Flying Nickel Deconsolidation, and during the prior, Company acquired the domain www.nickel.comfor $313,977 and spent $205,947 in advertising.
• Consulting and management fees decreased by $219,392, to a total of $1,023,411 this year. The prior year period included certain bonus payments totalling $186,920, financial advisory for $100,000 and administrative services outsourced to a third party service provider totalling $67,500. The current year amount is also reduced as a result of the Flying Nickel Deconsolidation.
• Professional fees of $1,061,851 this year compared to $1,765,487 during the prior year period. The higher amounts during the prior year period primarily relates to legal and audit fees in connection with the Spin-off Arrangement and the Merger Transaction (see Proposed Transactions section). The current year amount is also reduced as a result of the Flying Nickel Deconsolidation.
• Salaries and benefits decreased to $1,464,417 this year, compared to $1,996,092 during the prior year period. The lower amount during the current year is mainly attributable to the prior year period including 15 months of expenses, whereas the current year period includes 12 months of expenses, combined with improved employee retention. Employee turnover was higher during the prior year period which resulted in increased turnover related payments. The current year amount is also reduced as a result of the Flying Nickel Deconsolidation.
• Share-basedpayments decreased by $2,603,584, to a total of $1,472,006 this year compared to $4,075,590 during the prior year period. The higher amount during the prior year period is also impacted by the Spin-Off Arrangement and its effect on share purchase options outstanding as at January 14, 2022. Under IFRS 2 - Share Based Payment, the effect is considered a modification, which resulted in incremental share-based payments expense of $1,368,938. The current year amount is also reduced as a result of the Flying Nickel Deconsolidation.
• Other income of $215,745 this year, compared to $572,567 during the prior year period. The current year amount is mainly comprised of $133,237 from hay sales and pasture leasing at the Fish Creek Ranch, $119,803 from the sale of a parcel of land at the Fish Creek Ranch and the reversal of an over accrual for employment related expenses of $313,567. These amounts were partially offset with an impairment charge of $199,257 related to the Cachee Shares, and certain penalties of $135,615 which the Company is in the process of disputing. The prior year period amount is primarily comprised of $448,675 from the sale of cattle and hay at the Fish Creek Ranch, $25,372 from the disposal of Fish Creek Ranch equipment, and $31,743 from Government grant.
• A gain of $430,257 from the sale of the Titan Project as described in the section titled Other Projects.
• Foreign exchange loss of $19,387 compared to $531,665. The Company has activity in the USA, Bolivia and Mongolia. Consequently, the Company incurs foreign exchange gains and losses from changes in exchange rates of the US Dollar, Bolivian Boliviano, and Mongolian Tugrik relative to the Canadian Dollar.

8