WARRANTS DISCLOSURE

6 Months Ended

Sep. 30, 2019

Notes

WARRANTS DISCLOSURE

NOTE 9 - WARRANTS

During six months ended September 30, 2019, the Company issued 4,904,000 warrants in connection with the private placement. The relative fair value of these warrants issued was estimated at $1,661,038 using the Black-Scholes valuation technique. The warrants are convertible into equal number of shares at an exercise price of $0.50 per share within two years of their issuance.

The expiry date of 5,650,000 warrants issued in prior year expiring between July 2019 and September 2019 was extended to March 31, 2020. These warrants were revalued at $1,580,000 using the Black-Scholes valuation technique due to the extended expiry date. The additional cost was expensed. These warrants are convertible into equal number of shares at an exercise price of $0.24 per share.

The following assumptions were used in the valuation of these warrants:

Expected dividend	nil
Risk free interest rate	3%
Expected volatility	105%
Expected term	2 years

The value of warrants has been included in paid in capital.

The following are the movements in warrants during the six months ended September 30, 2019:

	September 30, 2019		March 31, 2019
	No. of Warrants	Weighted average exercise price	No. of Warrants	Weighted average exercise price
Outstanding - beginning of year	6,800,000	$ 0.24	5,900,000	$ 0.20
Issued	4,904,000	$ 0.50	34,900,000	$ 0.02
Exercised	(250,000)	$       -	(34,000,000)	$ 0.0025
Outstanding - end of year	11,454,000	$0.35	6,800,000	$0.24

The aforementioned warrants have an average remaining life of approximately 1.12 year as at September 30, 2019 (0.57 year as at March 31, 2019).