As at January 31, 2015, the Company recorded liabilities relating to certain arm’s length financial advisory agreements as a result of the ICL Offering and Offtake Agreement totaling $8,293,928, of which $3,686,190 (USD 2,900,000) is recorded in current liabilities and $4,607,738 (USD 3,625,000) is recorded in non-current liabilities in the consolidated statements of financial position.

Once fully accreted, the non-current liability of USD 4,000,000 (approximately CAD $5,085,000) is due on the beginning of production or in February 2016, whichever comes first. The Company uses a 10% discount rate for this estimate. An amount of $203,991 is recorded as interest expense in the condensed interim consolidated statements of loss and comprehensive loss for the six months ended January 31, 2015