Torq Resources : Financial Statements

TORQ RESOURCES INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS

For the year ended December 31, 2023

(Expressed in Canadian Dollars)

Dated: April 17, 2024

HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2023 AND THE PERIOD UP TO APRIL 17, 2024

Operational highlights

• On February 13, 2024, Torq Resources Inc. ("Torq" or the "Company") announced the commencement of drilling at its Santa Cecilia project. The first target, Pircas Norte, has outcropping copper porphyry mineralization on surface, a defined geophysical anomaly below surface, is within 1.5 kilometres (km) of the world-class Caspiche deposit, and has never been drill tested. The drill program at Santa Cecilia is expected to consist of approximately 1,500 metres (m) over three drill holes and results are expected in the coming weeks.
• On December 5, 2023, the Company announced the results of a trenching program at its Margarita iron-oxide-copper-gold (IOCG) project. The purpose of the trenching program was to further define the geometry of the mineralization at the Falla 13 discovery area as well as to evaluate undrilled target areas in the northern half of the project. The trenching program consisted of 443.5 m, primarily along road cuts and drill platforms created during the phase III drill program. Trench 23MRT- 001 intersected 34 m of 0.87 g/t gold and 0.22% copper along a prominent west-northwest structure that links the Falla 13 discovery area and the drill hole 23MAR-031R, which was announced on October 18, 2023 (below).
• On October 18, 2023, the Company announced the first set of results from its phase III drill program at its Margarita iron- oxide-copper-gold project, which began mid-August, 2023. The objective of this drill program was to test the potential to expand the original Falla 13 discovery area, both along strike and laterally, as well as to test several undrilled targets that were identified by anomalous gold-in-soils, permissive geology and geophysical signatures of conductivity and chargeability. The reverse-circulation ("RC") drill program consisted of approximately 4,000 m and identified a new parallel mineralized structure 200 m west of the original Falla 13 discovery, intersecting 42 m of 1.1 g/t gold and 0.48% copper of sulphide mineralization in drill hole 23MAR-031R. A new zone of copper oxide mineralization was also discovered in the southern area of the project at the Cototuda target, where 132 m of 0.48% copper was intersected in drill hole 23MAR-035R. Finally, broad zones of copper oxide mineralization were encountered at the historically drilled Margarita structural corridor, at the southwest limit of the property, where Torq drilled 62 m of 0.49% copper and 134 m of 0.29% copper in drill hole 23MAR- 036R.
• On August 2, 2023, the Company announced drill results from the first two drill holes at the Cerro del Medio target in the Company's inaugural drill program at the Santa Cecilia gold - copper porphyry project. Drill holes 23SC-DDH-001 and 23SC- DDH-002 are located 700 m apart and were designed to cross a northeast trending structural corridor with the objective of intersecting new porphyry phases and higher-grade mineralization than the 2012 historical intercept in drill hole CDM-12- 003, which consisted of 925.7 m of 0.21 g/t gold, 0.27% copper and 82 parts per million ("ppm") molybdenum. The results from the Company's drill holes, 23SC-DDH-001 and 23SC-DDH-002, were 476.3 m of 0.23 g/t gold, 0.22% copper and 93 ppm molybdenum at a hole depth of 584 m - 1,060.3 m and 557 m of 0.38 g/t gold, 0.23% copper and 56 ppm molybdenum at a hole depth of 442 m - 999 m respectively. Both drill holes bottomed in mineralization and significantly expanded porphyry mineralization to the south and east from the historical drilling. The gold grades encountered in drill hole 23SC-DDH-002 represent an 81% increase from the 2012 historical intercept from CDM-12-003 and provide a vector to the south and the east toward a potentially higher-grade causative intrusion.
• On July 19, 2023, the Company announced the results of its rock sampling program, based on a total of 196 samples, that were collected from the Pircas Norte and Gemelos Norte target areas from the eastern region of the Santa Cecilia project. The highlights from selective rock sampling targeting porphyry-style veining included gold grades of 0.3 g/t to 0.83 g/t in banded quartz-magnetite-pyrite veinlets with copper grades ranging from 438 ppm to 0.44% at Pircas Norte. At the Gemelos Norte target, highlights from the selective rock sampling targeting porphyry style veining included gold grades of 0.13 g/t to 1.49 g/t. In addition, at Gemelos Norte, two epithermal veins sampled on the southwestern edge of the target area had gold grades of 12.05 g/t and 3.36 g/t and copper grades of 2.3% and 285 ppm, respectively. Collectively, the rock sampling results from both Pircas Norte and Gemelos Norte demonstrated mineralized gold - copper and gold porphyry systems that are exposed on surface.
• On May 3, 2023, the Company announced the results of its soil survey from Santa Cecilia. The results of the soil survey are based on 1,503 samples of a total of 1,735 soil samples that were collected on a 70 m by 70 m grid across the Santa Cecilia hydrothermal system. The results indicated a total of seven porphyry targets.

Corporate highlights

• On March 28, 2024, the Company announced the appointment of Waldo Cuadra, Torq's General Manager in Chile, and an
  Officer, as Director of the Company. Mr. Cuadra has been leading Torq's technical team in Chile since he joined the
  Company in 2020. He brings over 40 years of experience both as a geologist and an executive within the mining industry.

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• On March 25, 2024, the Company implemented cash preservation measures including an immediate 50% pay cut for all salaried North American senior executives, a deferral of those reduced salaries until a financing permits payment and a deferral of all directors cash compensation. The Company will also inact reductions of all non-essential employees and contractors and intends to consolidate its Vancouver office operations into a combination of remote working and relocation to the Santiago offices, where the Company's technical team, physical assets and exploration activities are centered.
• On March 25, 2024, the Company also dropped its option on the Andrea project in order to focus and prioritize its capital allocation to its more advanced Margarita and Santa Cecilia projects, where the latter is currently wrapping up its second exploration focused drill program.
• On March 25, 2024, the Company announced that director, Jeffrey Mason, and Chief Geological Officer (CGO), Michael Henrichsen, have resigned their respective positions with the Company, effective immediately, to pursue other business interests. The Company will not in the near term appoint a replacement CGO given the strength of the Chilean technical team.
• On January 4, 2024, the Company completed a public and private offering and issued 23,206,860 units at a price of $0.23 per unit for gross proceeds of $5,337,578. Each unit consists of one Torq common share and one share purchase warrant exercisable at $0.30 per Torq common share until January 4, 2027. Three directors of the Company purchased an aggregate of 575,000 units in the offering for gross proceeds of $132,250. The net proceeds from the offering will be used for exploration of the Company's Santa Cecilia project and for general corporate and working capital purposes.
• On November 27, 2023, the Company and the Lender agreed to amend the loan facility agreement by extending the maturity date to July 11, 2025. In consideration of the extension, the Company agreed to replace the 4,102,564 share purchase warrants that were issued to the Lender with 7,500,000 share purchase warrants exercisable at $0.35 per common share until July 11, 2025.
• On March 10, 2023, the Company closed a private placement for gross proceeds of $6,260,339, consisting of 10,433,899 units of the Company at a price of $0.60 per unit. Each unit consisted of one Torq common share and one half of a share purchase warrant, two half-warrants being required to exercise and acquire a common share at $0.80 until March 10, 2026.
• On February 10, 2023, the Company announced that it had obtained a receipt for its final short form base shelf prospectus
  (the "Shelf Prospectus") filed with the securities commissions in each of the provinces and territories of Canada. The filing of this Shelf Prospectus provides the Company with financing flexibility; under the Shelf Prospectus, the Company may issue and sell up to $60,000,000 of common shares, warrants, subscription receipts, units, debt securities, or any combination thereof, from time to time over the 25-month period that the Shelf Prospectus remains effective.

DATE OF INFORMATION AND CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Management Discussion and Analysis ("MD&A") of Torq has been prepared by management to assist the reader in assessing material changes in the financial condition and results of operations of the Company as at December 31, 2023. Commentary is made on the results of the period under review. This MD&A should be read in conjunction with the consolidated financial statements of the Company and related notes thereto as at and for the years ended December 31, 2023 and 2022 ("Financial Statements"). All financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standard Board, all dollar amounts presented are Canadian dollars, the presentation currency of the Company, unless otherwise stated. The functional currency of the Company and its subsidiaries is disclosed in the notes to the Financial Statements.

In this MD&A, the words "we", "us", or "our", collectively refer to Torq Resources Inc. and its subsidiaries. The first, second, third and fourth quarters of the Company's Fiscal years are referred to as "Q1", "Q2", "Q3" and "Q4", respectively. The years ended December 31, 2023 and 2022 are referred to as "Fiscal 2023" and "Fiscal 2022", respectively.

United States readers should be aware that the Company uses mineral terminology based on the Canadian Institute of Mining and Metallurgy ("CIM"). CIM standards are not the same as those accepted by the US Securities Exchange Commission for US domestic mining company disclosure. Further details of these differences can be found in the Company's Annual Information Form filings.

The effective date of this MD&A is April 17, 2024 (the "MD&A Date").

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Forward-looking statements and risk factors

Certain statements made in this MD&A contain forward-looking information within the meaning of applicable Canadian and United States securities laws ("forward-looking statements"). These forward-looking statements are presented for the purpose of assisting the Company's shareholders and prospective investors in understanding management's intentions and views regarding future outcomes and are inherently uncertain and should not be heavily relied upon. When used in this MD&A, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, identify such forward-looking statements. Specific forward-looking statements in this MD&A may include, but are not limited to: the Company's ability to execute on its exploration and financing plans, the likelihood of discovering resources; the potential for access to and exploration of the Company's Margarita, Andrea or Santa Cecilia projects; permitting timelines; government regulation of mining operations; environmental and climate-related risks; the possible impairment of mining interests; any objectives, expectations, intentions, plans, results, levels of activity, goals or achievements; the timing and amount of estimated exploration expenditures and capital raises for the Company; the liquidity of the common shares in the capital of the Company and other events or conditions that may occur in the future; the Company's intention to grow its business and its operations; the Company's competitive position; changes to government regulation, in particular Chilean; and the impact of the COVID-19 pandemic on the Company's operations and the economy generally.

The forward-looking statements contained in this MD&A represent the Company's views as of the date hereof. The assumptions related to these plans, estimates, projections, beliefs and opinions may change without notice and in unanticipated ways. Many assumptions may prove to be incorrect, including the Company's budgeting plans, expected costs, assumptions regarding market conditions and other factors upon which the Company has based its expenditure and funding expectations; the Company's ability to obtain or renew the licenses and permits necessary for exploration; that operations and financial markets will not in the long term be adversely impacted by the COVID-19 pandemic; the Company's ability to complete and successfully integrate acquisitions; the possible effects of climate change, extreme weather events, water scarcity, and seismic events, and the effectiveness of strategies to deal with these issues; the Company's expectations regarding the future demand for, and supply and price of, precious and base metals; the Company's ability to recruit and retain qualified personnel; the Company's ability to comply with current and future environmental, safety and other regulatory requirements and to obtain and maintain required regulatory approvals.

Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict, that may cause the actual results, performance or achievements of the Company, or developments in the Company's business or in its industry, to adversely differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Some of the risks and other factors (some of which are beyond the Company's control) which could cause results to differ materially from those expressed in the forward-looking statements and information contained in this MD&A include, but are not limited to, fluctuations in the current and projected prices for gold, other precious and base metals and other commodities (such as natural gas, fuel oil and electricity) which are needed for exploration activities; risks and hazards associated with the business of mineral exploration (including environmental hazards, potential unintended releases of contaminants, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); the speculative nature of mineral exploration and development; the estimation of mineral resources, the Company's ability to obtain funding, including the Company's ability to complete future equity financings; the current lack of any estimated mineralized deposit; environmental risks and remediation measures, including evolving environmental regulations and legislation; changes in laws and regulations impacting exploration activities; the Company's mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; legal and litigation risks; statutory and regulatory compliance; insurance and uninsurable risks; the Company's limited business history and history of losses and negative cash flow, which will continue into the foreseeable future; our inability to pay dividends, volatility in the Company's share price, the continuation of our management team and our ability to secure the specialized skill and knowledge necessary to operate in the mining industry; availability of drilling equipment and other exploration equipment; timely receipt of appropriate exploration permits; relations with and claims by local communities and non-governmental organizations, including relations with and claims by indigenous populations; the requirements of being a public company, including maintaining the listing requirements TSX Venture Exchange ("TSX-V"); risks associated with the significant resources required to maintain regulatory compliance as a public company; the effectiveness of the Company's internal control over financial reporting; cybersecurity risks; risks relating to the Company's public perception; general business, economic, competitive, political and social uncertainties; and public health crises such as the COVID-19 pandemic. This is not an exhaustive list of the risks and other factors that may adversely affect any of the Company's forward-looking statements. Readers should refer to the risks discussed herein and in the Company's Annual Information Form for the year ended December 31, 2022, filed on March 27, 2023, and subsequent disclosure filings with the Canadian Securities Administrators, available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.torqresources.com. These documents are for information purposes only and not incorporated by reference in this MD&A.

DESCRIPTION OF THE BUSINESS

Torq is a junior mineral exploration company focused on the acquisition and exploration of mineral resource properties. The Company is incorporated under the Business Corporations Act (British Columbia) and is a reporting issuer in British Columbia, Alberta and Ontario. The Company is listed on the TSX-V, where its shares trade under the symbol TORQ.V and on the OTCQX where its shares trade under the US symbol TRBMF.

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The Company is principally engaged in the acquisition and exploration of mineral property interests with a focus in the Americas, particularly Chile.

The information presented consists of the Financial Statements of the Company, and the following 100% beneficially owned subsidiaries:

	Country of	Percentage	Functional
Name of subsidiary	incorporation	ownership	currency	Principal activity
Torq Resources Chile SpA	Chile	100%	USD	Holding company
Minera Margarita SpA	Chile	100%	USD	Mineral exploration
Minera Andrea SpA	Chile	100%	USD	Mineral exploration
Minera Santa SpA	Chile	100%	USD	Mineral exploration
Torq Operaciones Chile SpA	Chile	100%	USD	Mineral exploration

In January 2023, Candelaria Minerals S.A.C., a dormant subsidiary of the Company, was dissolved.

Qualified persons and technical disclosures

Bryan Atkinson. P.Geol., is the qualified person as defined by National Instrument 43-101 with respect to the technical disclosures in this MD&A.

MINERAL PROPERTY INTERESTS

A summary of the Company's mineral property interests is as follows:

	Margarita	Andrea	Santa Cecilia
	Project	Project	Project	Total
	$	$	$	$
Balance, December 31, 2021	453,886	165,826	268,486	888,198
Additions	3,435	-	-	3,435
Option payments	477,841	170,937	409,470	1,058,248
Foreign currency translation	35,977	21,000	5,510	62,487
Balance, December 31, 2022	971,139	357,763	683,466	2,012,368
Option payments	748,460	81,204	-	829,664
Foreign currency translation	(37,559)	(9,480)	(12,720)	(59,759)
Balance, December 31, 2023	1,682,040	429,487	670,746	2,782,273

Margarita Project

On March 8, 2021, the Company announced it had acquired the option to earn a 100% interest in the Margarita iron -oxide-copper-gold project (the "Margarita project") located in Chile, 65 kilometres ("km") north of the city of Copiapo. The Company acquired the rights that constitute the Margarita project through two option agreements: the Margarita claims and the La Cototuda claim.

Pursuant to the execution of the Margarita project option agreement, the Company incurred finders' fees requiring the issuance of 466,667 common shares of the Company in separate tranches as follows: 81,250 shares were issued on April 7, 2021; 141,667 shares were issued on March 31, 2022; and the final 243,750 shares were issued on March 31, 2023.

Margarita claims

Under the option agreement, the Company may acquire a 100% interest in the Margarita claims by making cash payments totaling US$6,200,000 over 66 months. To maintain the option, the Company is also required to incur work expenditures totaling US$3,050,000 within 30 months of the signing date of the definitive agreement (February 22, 2021), which have been fully incurred as at December 31, 2023.

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The summary of the Company's total required cash payments and work expenditures under the option agreement is as follows:

		Work
	Cash	expenditures
	payments	requirement
	US$	US$
April 20, 2021 (paid $62,445)	50,000	-
August 22, 2021 (paid $64,280 and work requirements met)	50,000	400,000
August 22, 2022 (paid $155,013 and work requirements met)	100,000	1,150,000
August 18, 2023 (paid $406,560 and work requirements met)	300,000	1,500,000
August 22, 2024	1,200,000	-
August 22, 2025	2,000,000	-
August 22, 2026	2,500,000	-
	6,200,000	3,050,000

La Cototuda Claim

Under the La Cototuda option agreement, the Company can acquire a 100% interest in the La Cototuda claim by making cash payments totaling US$900,000 over 36 months as follows:

	Cash
	payments
	US$
February 23, 2021 (paid $63,065)	50,000
February 23, 2022 (paid $31,745)	25,000
August 23, 2022 (paid $291,083)	225,000
October 23, 2023 (paid $341,900)	250,000
February 23, 2024 (paid $472,920 subsequent to December 31, 2023)	350,000
	900,000

Two legal claims arose in 2022 regarding the mineral exploration rights over a non-material section (approximately 10 m wide) at the edge of the Margarita southern property. While the outcome of these legal claims is uncertain, management, after review with legal counsel, believes the claims have no merit. As of December 31, 2023, the issuance of the final court decision is pending.

Exploration activities

A summary of the Company's Margarita project exploration and evaluation expenses for the years ended December 31, 2023 and 2022 is as follows:

	2023	2022
	$	$
Drilling	831,722	1,383,575
Environmental, permitting and concessions	228,129	39,414
Equipment, vehicles, rent and field supplies	14,346	69,455
Geological consulting, salaries and wages	1,339,141	1,346,334
Geophysics, sampling and assays	316,898	564,633
Project support	885,060	780,668
Share-based compensation	322,666	89,562
Travel, meals and accommodation	331,713	305,212
	4,269,675	4,578,853

During the year ended December 31, 2023, the Company drilled two new discoveries, which included 42 m of 1.1 g/t gold and 0.48% copper in sulphide mineralization on a structure parallel to Falla 13, and 132 m of 0.48% copper in oxide mineralization on the southern portion of the project at the Cototuda target. This was following the completion of a multi-element soil geochemistry survey that identified multiple new targets and structures, which were the focus for the phase III RC drill program that began on August 17, 2023.

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New Targets

Several geochemical targets were identified proximal to the Falla 13 discovery on the Margarita project, which included intercepts of 90 m of 0.94% copper and 0.84 g/t gold (22MAR-013R) and 98 m of 0.68% copper and 0.94 g/t gold (22MAR-014R) within a defined 800 m long mineralized body. The results of the phase II drill program demonstrated that the mineralized system is open along strike to the north-northwest, with the most northerly drill hole, 22MAR-022R, intersecting 48 m of 0.37 g/t gold and 0.26% copper (including 20 m of 0.47 g/t gold and 0.35% copper). Gold geochemistry results have supported the potential to expand mineralization along strike to the north-northwest by 500 m, with gold values in soils observed to the north being comparable to those observed over the Falla 13 discovery.

The Company believes there is the potential for flat lying Manto-style mineralization immediately to the west of the Falla 13 discovery area, where drilling and mapping have defined a mineralized permeable contact horizon between the volcanics and intrusives, located at a depth of approximately 100 m. In this case, the sub-vertical Falla 13 structure acts as a feeder where ascending mineralized hydrothermal fluids can flow laterally along the permeable contact between the volcanics and intrusives, demonstrating the potential to extend the known mineralization considerably. In addition, a second parallel structure has been recognized 300 m to the east of Falla 13 structural corridor. Gold geochemistry results from the parallel structure are consistent with results observed along the Falla 13 discovery and provide a 500 m long north-northwest oriented target that is undrilled. Finally, the west-northwest structures that link the two parallel structures are all deemed to be targets, with drill hole 22MAR-023 intersecting 130 m of 0.36 g/t gold and 0.28% copper (including 30 m of 1.02 g/t gold and 0.57% copper) across one of the west- northwest oriented structures.

The gold geochemistry results also delineated five target areas that had not been previously drill tested. This included three of the five targets, namely: the Remolino; Margarita North; and Cototuda targets, which were all focuses of the phase III drill program. The additional two targets are prominent gold-in-soil anomalies that are located in the northern third of the project, within areas of generally poor outcrop exposure, and are currently considered early-stage. The Company plans to conduct additional mapping in order to advance these targets to drill stage.

Phase III Drill Program

On October 18, 2023, the Company announced the first set of results from its phase III drill program, which consisted of 14 drill holes over 3,862 m, and which also successfully accomplished the Company's main objectives of: 1) expanding on the original Falla 13 discovery area and 2) discovering a new mineralized body to demonstrate the scale and potential of the mineralized system that encompasses the Margarita project.

The phase III drill program identified a new parallel mineralized structure 200 m west of the original Falla 13 discovery, intersecting 42 m of 1.1 g/t gold and 0.48% copper of sulphide mineralization in drill hole 23MAR-031R and in addition, a new zone of copper oxide mineralization was discovered in the southern area of the project at the Cototuda target, where 132 m of 0.48% copper was intersected in drill hole 23MAR-035R. Finally, broad zones of copper oxide mineralization were encountered at the historically drilled Margarita structural corridor, at the southwest limit of the property, where Torq drilled 62 m of 0.49% copper and 134 m of 0.29% copper in drill hole 23MAR-036R.

The Company is currently planning a set of follow-up drill holes to explore along the north-northwest trending structure, as well as to test for adjacent flat-lyingmanto-style mineralization both to the east and west of drill hole 23MAR-031R.

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Figure 1: illustrates the position of the discovery holes, 23MAR-031R and 23MAR-035R, at the Falla 13 and Cototuda target areas, respectively, as well as the significant copper oxide mineralization encountered in drill hole 23MAR-036R at the Margarita structural corridor.

Margarita RC Drilling - sample methodology

Analytical samples were taken using 1/8 of each 2 m interval material (chips) and sent to ALS Lab in Copiapo, Chile for preparation and then to ALS Labs in Santiago, Chile and Lima, Peru for analysis. Preparation included crashing core sample to 90% < 2mm and pulverizing 1,000 g of crushed material to better than 85% < 75 microns. All samples are assayed using 50 g nominal weight fire assay with AAS finish (Au-AA24),multi-element four acid digest ICP-AES/ICP-MS method (ME-MS61), and copper sulphuric acid leach with AAS finish (Cu-AA05). Where MS61 results were greater or near 10,000 ppm copper the assays were repeated with ore grade four acid digest method (Cu-OG62). QA/QC programs for 2023 RC drilling samples using internal standard samples, field and lab duplicates, standards and blanks indicate good accuracy and precision in a large majority of standards assayed.

True widths of mineralization are unknown based on current geometric understanding of the mineralized intervals.

Canadian mineral terminology and standards differ from those of other countries. The Company's public disclosure filings highlight some of these differences.

Margarita Soil Sampling

Approximately 1-3 kg of soil material was collected on a 100 m x 100 m grid and sent to ALS Lab in Copiapo, Chile or La Serena, Chile for preparation and then to Santiago, Chile and Lima, Peru for analysis. All samples are assayed using 30 g nominal weight fire assay with AAS finish (Au-AA23) and multi-element super trace four acid digest ICP-AES/ICP-MS method (ME-MS61L). QA/QC programs for 2022-2023 soil samples using internal standard samples and duplicates, lab duplicates, standards and blanks indicate good accuracy and precision in a large majority of standards assayed.

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Andrea Project

On May 25, 2021, the Company announced it had acquired the option to earn a 100% interest in the Andrea copper porphyry project (the "Andrea project") located in northern Chile, 100 km east of the city of La Serena. The Company acquired the rights that constitute the Andrea project through three option agreements.

Exploration activities

A summary of the Company's Andrea project exploration and evaluation expenses for the years ended December 31, 2023 and

2022 is as follows:

	2023	2022
	$	$
Environmental, permitting and concessions	18,162	22,841
Equipment, vehicles, rent and field supplies	174	2,813
Geological consulting, salaries and wages	35,495	276,193
Geophysics, sampling and assays	-	8,570
Project support	53,069	83,392
Share-based compensation	17,852	17,992
Travel, meals and accommodation	19,966	21,679
	144,718	433,480

During the year ended December 31, 2023, the Company continued to refine its targets based on geochemical sampling, previous geophysical surveys and comprehensive mapping at the Andrea project. The integration of these data sets has resulted in a set of defined targets for the Company to drill test.

On March 25, 2024, the Company dropped its option on the Andrea project in order to focus and prioritize its capital allocation to its more advanced Margarita and Santa Cecilia projects, where the latter is currently wrapping up its second exploration focused drill program. As a result, the Company will impair all previously capitalized costs related to the project and recognize an impairment charge of $429,487 for the period ended March 31, 2024.

Santa Cecilia Project

On October 21, 2021, the Company announced that it had acquired an option to earn a 100% interest in the 3,250-hectare Santa Cecilia gold-copper project, (the "Santa Cecilia Project"), located approximately 100 km east of the city of Copiapo in Northern Chile. The project is in the southern region of the world-class Maricunga belt and immediately north of the El Indio belt.

In order to maintain the Santa Cecilia Project option agreement, the Company needs to make option payments up to October 21, 2028. The Company has made on-time all the required option payments totaling US$400,000 to the date.

The summary of total required cash payments and work expenditures under the option agreement is as follows:

		Work
	Cash	expenditures
	payments	requirement
	US$	US$
October 21, 2021 (paid $123,580)	100,000	-
October 21, 2022 (paid $409,470)	300,000	-
October 21, 2023 (work expenditures requirement met)	-	3,000,000
October 21, 2024	600,000	4,500,000
October 21, 2025	1,000,000	8,000,000
October 21, 2026	3,000,000	-
October 21, 2027	5,000,000	-
October 21, 2028	15,000,000	-
	25,000,000	15,500,000

The Company needs to complete total staged work expenditures of US$15,500,000 over the period up to October 20, 2028, as well as complete 25,000m of drilling which is a pre-requisite to exercising the option to earn 100% interest in the project. The first work expenditure requirement by October 20, 2023, is US$3,000,000; as at December 31, 2023, the Company had incurred just under US$7,500,000 of eligible work expenditures and drilled 2,059 m.

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Exploration activities

A summary of the Company's exploration and evaluation expenses, which are not all eligible work expenditures under the Santa Cecilia option agreement, are as follows:

Santa Cecilia Project	2023	2022
	$	$
Community relations	287,340	297,110
Drilling	1,867,796	31,427
Environmental, permitting and concessions	496,282	70,661
Equipment, vehicles, rent and field supplies	70,571	43,910
Geological consulting, salaries and wages	2,568,601	1,070,380
Geophysics, sampling and assays	525,533	137,712
Project support	1,621,896	391,196
Share-based compensation	430,894	28,277
Travel, meals and accommodation	1,009,939	159,106
	8,878,852	2,229,779

During the year ended December 31, 2023, the Company completed its inaugural drill program at Santa Cecilia, the first comprehensive drilling on the project in over 30 years. It intercepted 557 m of 0.38 g/t gold, 0.23% copper and 56 ppm molybdenum in wall rock at a depth of 442 m - 999 m. This intercept bottomed in grade and represented an 81% increase in the gold grade from historical drilling, indicating that Torq may be vectoring toward the higher-grade causative intrusion. The Company also identified a number of undrilled porphyry targets with copper mineralization on surface within 1km - 2km of the Norte Abierto project, owned jointly by Newmont and Barrick, creating a pipeline of additional targets.

On February 13, 2024, the Company announced it had commenced drilling at Santa Cecilia on one of these undrilled porphyry targets, Pircas Norte, which also has a defined geochemical anomaly below surface. Approximately 1,500 m of drilling was completed on three drill holes, the results are expected in the coming weeks.

Identification of Copper Porphyry Targets

During the year ended December 31, 2023, the Company completed a 1:5000 scale geological mapping program across the project area. The results of the soil survey are based on a total of 1,880 soil samples that were collected on a 70 m by 70 m grid across the Santa Cecilia hydrothermal system and identified seven distinct porphyry targets. Significant results of gold-copper- moybdenum anomalies that are interpreted to be directly associated with porphyry mineralization were identified at both the Pircas Norte and Gemelos Norte targets in areas of extensive colluvium in the eastern area of the property and had dimensions of 750 m by 700 m and 700 m by 700 m respectively. In addition, a third target area was identified late in the field season at Filo Gemelos where an area of elevated gold and molybdenum values over an area of 450 m by 300 m.

The results from initial rock sampling programs consisted of 196 samples from the Pircas Norte and Gemelos Norte targets from the eastern region of Santa Cecilia identified mineralized porphyry bodies on surface and positively corroborated the soil geochemistry results, building confidence in the target areas that will be prioritized for future drilling. The highlights from selective rock sampling targeting porphyry-style veining included gold grades of 0.3 g/t to 0.83 g/t in banded quartz-magnetite-pyrite veinlets with copper grades ranging from 438 ppm to 0.44% at Pircas Norte and at the Gemelos Norte targets. Rock sampling targeting porphyry style veining included gold grades of 0.13 g/t to 1.49 g/t within dioritic and dacitic porphyry bodies, respectively. In addition, at Gemelos Norte, two epithermal veins sampled on the southwestern edge of the target area had gold grades of 12.05 g/t and 3.36 g/t and copper grades of 2.3% and 285 ppm, respectively. At Filo Gemelos initial rock samples of banded quartz veinlets had gold grades of up to 0.11 g/t and 0.26 g/t.

Inaugural Drill Program

During the third quarter of 2023, the Company announced drill results from its first two drill holes at Santa Cecilia, which were located at the Cerro del Medio target, where a 2012 historical drill hole (CDM-12-003) intersected 925.7 m of 0.21 g/t gold, 0.27% copper and 82 ppm molybdenum within wall rock. The purpose of Torq's two drill holes was to identify higher grade mineralization and to potentially find a causative intrusion responsible for the mineralization observed in CDM-12-003. The results from the Company's drill holes, 23SC-DDH-001 and 23SC-DDH-002, included 476.3 m of 0.23 g/t gold, 0.22% copper and 93 ppm molybdenum at a depth of 584 m - 1,060.3 m and 557 m of 0.38 g/t gold, 0.23% copper and 56 parts ppm molybdenum at a depth of 442 m - 999 m, respectively.

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