NOTE

EQUITY-ACCOUNTED INVESTMENT

As of

April 30, 2021,

we owned

14,000,000

shares of Uranium Royalty Corp. (“URC”), representing a

18.8%

(

July 31, 2020:

19.5%

) interest in URC. In addition,

two

of our officers are members of URC's board of directors, and

one

of which is also an executive officer of URC. As a consequence, our ability to exercise significant influence over URC's operating and financing policies continued to exist during the

three

and

nine

months ended

April 30, 2021.

URC is a public company listed on the TSX Venture Exchange with the trading symbol “URC.V” and on NASDAQ with the trading symbol “UROY”.

For the

three

and

nine

months ended

April 30, 2021

and

2020,

income (loss) from investment in URC consisted of the following:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2020		2021		2020
Share of income (loss) from URC	$	456,132	$	684,443	$	353,440	$	(8,437	)
Gain on ownership interest dilution		413,881		-		413,881		3,056,656
Total	$	870,013	$	684,443	$	767,321	$	3,048,219

For the

three

and

nine

months ended

April 30, 2021

and

2020,

we recorded a gain on ownership interest dilution as a result of URC issuing more shares from the exercises of URC's share purchase warrants.

For the

three

and

nine

months ended

April 30, 2021,

we recorded translation gains of

$493,101

and

$1,041,900,

respectively, and for

three

and

nine

months ended

April 30, 2020,

we recorded translation losses of

$479,148

and

$528,690,

respectively, as a result of translating the ending balance of the investment in URC denominated in Canadian Dollars to U.S. Dollars using the period end exchange rate, which was included in other comprehensive income (loss) in our condensed consolidated statements of operations and comprehensive loss.

During the

nine

months ended

April 30, 2021,

the change in carrying value of our investment in URC is summarized as follows:

Balance, July 31, 2020	$	11,515,327
Income from investment in URC		353,440
Gain on ownership interest dilution		413,881
Translation gain		1,041,900
Balance, April 30, 2021	$	13,324,548

As of

April 30, 2021,

the fair value of our investment in URC was approximately

$49.3

million.

Subsequent to

April 30, 2021,

May 20, 2021,

we participated in an equity financing and acquired an additional

1,000,000

common shares of URC at a price of

CAD$4.10

per share for total consideration of

$3,396,852.