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Share Capital

12 Months Ended

Aug. 31, 2018

12.

Share Capital

Authorized

The Company is presently authorized to issue an unlimited number of common shares without par value. The Company is also authorized to issue up to 25,000,000 preferred shares without par value, of which 950 have been issued and 570 are outstanding as at August 31, 2018.

Common Shares

Common shares issued during the years ended August 31, 2016, 2017 and 2018 are as follows:

	i)	In September 2013, the Company entered into a sales agreement (the “Sales Agreement”) with Cowen and Company, LLC (“Cowen”), pursuant to which the Company could, at its discretion and from time to time during the term of the Sales Agreement, sell, through Cowen, as agent and/or principal, such number of the Company’s common shares as would result in aggregate gross proceeds to the Company of up to US$25,000,000. Sales of common shares could be made through “at the market” issuances on the NYSE MKT at the market price prevailing at the time of each sale, and, as a result, prices varied.

		The Company filed a prospectus supplement, dated September 24, 2013, pursuant to which the Company could issue up to US$8,100,000 in common shares using the Sales Agreement (each prospectus supplement is limited to 10% of the market value of the Company at the end of the month prior to filing) (the “First Supplement”).

		The Company could pay Cowen a commission, or allowed a discount, equal to 3.0% of the gross proceeds of all common shares sold under the Sales Agreement.

		Pursuant to the Sales Agreement, as at August 31, 2015, the Company had issued 9,428,180 common shares for gross proceeds of $3,855,388 (US$3,439,916) and paid cash commissions totaling $115,661 (US$103,197). During the year ended August 31, 2014, the Company had also incurred other costs (primarily related to the preparation of the Sales Agreement and the First Supplement) of $399,032, of which $381,775 had been recognized as share issuance costs as at August 31, 2015, and the balance of $17,257 was recorded as prepaid transaction costs.

		During the year ended August 31, 2016, the Company had issued 1,553,724 common shares for gross proceeds of $248,086 (US$187,696) pursuant to the Sales Agreement and paid cash commissions totaling $7,443 (US$5,631). The Company had recognized the balance of the prepaid transaction costs of $17,257 as share issuance costs.

		The Sales Agreement expired in October 2015.

	ii)	On December 24, 2015, the Company completed a private placement (the “December 2015 Private Placement”) and issued 6,000,000 flow-through units (“Flow-Through Unit”) at $0.125 per unit (the “Unit Price”) for gross proceeds of $750,000. Each Flow-Through Unit consists of one flow-through common share and one-half of one non-transferrable common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of $0.175 per share, until December 24, 2017.

		The fair value of the warrant component of the Flow-Through Unit was estimated at $0.0196 and the fair value of the flow-through feature of the Flow-Through Unit was estimated at $0.0313. Using the relative fair value method, the Flow-Through Unit price of $0.125 was allocated between the share component, the warrant component and the flow-through feature as follows: $0.0917, $0.0128, and $0.0205, respectively.

		The fair value of the warrant was estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.48%; expected life of 2.0 years; and expected volatility of 64%. The fair value of the flow-through feature (flow-through share premium) is estimated by multiplying the CEE amount to be renounced per Flow-Through Unit of $0.1249 by the Company’s current tax rate of 25%.

		In connection with the December 2015 Private Placement, the Company paid cash commission of $45,000, incurred other issuance costs of $23,541 and issued 360,000 non-transferrable compensation warrants. Each compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.125 per share until December 24, 2017. The estimated fair value of the compensation warrants totaled $19,573. The fair values of these compensation warrants were estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.48%; expected life of 2.0 years; and expected volatility of 64%.

		Cash issuance costs and the estimated fair value of the compensation warrants were allocated on a pro-rata basis between the three components of the Flow-Through Unit.

		The total flow-through share premium of $108,549 (net of issuance costs of $14,451) was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on December 24, 2015. The CEE expenditures renounced relating to the December 2015 Private Placement were incurred during the year ended August 31, 2016, accordingly the Company has recognized a deferred income tax recovery $108,549 through the consolidated statement of comprehensive loss with a corresponding reduction to the deferred flow-through share premium liability during the year ended August 31, 2016.

	iii)	On March 11, 2016, the Company completed a private placement (the “Private Placement”) and issued 13,700,000 units (“PP Unit”) at a price of $0.10 per PP Unit for gross proceeds of $1,370,000, of which 1,000,000 PP Units were issued to Mr. Donald Bubar. Each PP Unit consists of one common share and one-half of one non-transferrable common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of $0.15 per share, until March 11, 2018, or if at any time following September 11, 2016, the closing price of the common shares on the TSX is $0.25 or higher for a period of twenty consecutive trading days, the Company may, by notice to the holder reduce the expiry date of the warrants to not less than 30 days from the date of such notice (the “Accelerated Expiry Date”).

		Of the PP Unit price of $0.10, $0.0871 was allocated to the common share component of the PP Unit and the balance of $0.0129 was allocated to the warrant component of the PP Unit. These values were allocated on a pro rata basis based on the closing trading price of the Company’s common shares on the TSX on the date the terms of the private placement were finalized, which was $0.14, and the estimated fair value of a whole warrant of $0.0208. The fair value of the warrant was estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.50%; expected life of 1.0 years; and expected volatility of 82%.

		In connection with the Private Placement, the Company paid finders’ fees of $30,000, incurred other issuance costs of $17,864 and issued 300,000 non-transferrable finder’s compensation warrants. Each finder’s compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.11 per share until the earlier of March 11, 2018 or the Accelerated Expiry Date. The estimated fair value of the compensation warrants totaled $26,671.

		The fair values of these compensation warrants were estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.50%; expected life of 1.0 years; and expected volatility of 82%.

		Cash issuance costs and the estimated fair value of the compensation warrants were allocated on a pro-rata basis between the two components of the Unit.

	iv)	On March 29, 2016, the Company completed a private placement (the “March 2016 Private Placement”) and issued 3,000,000 flow-through units (“FT Unit”) at a price of $0.175 per FT Unit and 2,000,000 units (“Non-FT Unit”) at a price of $0.125 per Non-FT Unit for gross proceeds of $775,000. Each FT Unit consists of one flow-through common share and one-half of one non-transferrable common share purchase warrant (“FT Warrant”). Each whole FT Warrant entitles the holder to purchase one common share of the Company at a price of $0.20 per share until March 29, 2018, or if at any time following September 29, 2016, the closing price of the common shares on the TSX is $0.25 or higher for a period of twenty consecutive trading days, the Company may, by notice to the holder reduce the expiry date of the warrants to not less than 30 days from the date of such notice (“Expiry Date”). Each Non-FT Unit consists of one common share and one-half of one non- transferrable common share purchase warrant (Non-FT Warrant”). Each whole Non-FT Warrant entitles the holder to purchase one common share of the Company at a price of $0.175 per share until the Expiry Date.

		The fair value of the warrant component of the F-T Unit was estimated at $0.0147 and the fair value of the flow-through feature of the FT Unit was estimated at $0.0439. Using the relative fair value method, the FT Unit price of $0.175 was allocated between the share component, the warrant component and the flow-through feature as follows: $0.1259, $0.0123, and $0.0368, respectively.

		The fair value of the FT Warrant was estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.50%; expected life of 1.0 years; and expected volatility of 74%. The fair value of the flow-through feature (“flow-through share premium”) was estimated by multiplying the CEE amount to be renounced per FT Unit of $0.1749 by the Company’s current tax rate of 25%.

		Of the Non-FT Unit price of $0.125, $0.1117 was allocated to the common share component of the Non-FT Unit and the balance of $0.0133 was allocated to the warrant component of the Non-FT Unit. These values were allocated on a pro rata basis based on the closing trading price of the Company’s common shares on the TSX on the date the terms of the private placement were finalized, which was $0.15, and the estimated fair value of a whole Non-FT Warrant of $0.0356. The fair value of the Non- FT Warrant was estimated using the Black-Scholes pricing model, with the same assumptions as for the FT Warrant.

		In connection with the issuance of the FT Units, the Company paid finders’ fees of $31,500 and issued 180,000 non-transferrable finder’s compensation warrants. Each finder’s compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.175 per share until March 29, 2018. The estimated fair value of the compensation warrants totaled $8,203. The fair values of these compensation warrants were estimated using the Black- Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.51%; expected life of 2.0 years; and expected volatility of 72%.

		The Company also incurred other issuance costs of $14,263 relating to the March 2016 Private Placement.

		Cash issuance costs and the estimated fair value of the compensation warrants totaling $50,397 were allocated on a pro-rata basis between the three components of the FT Unit. The balance of the cash issuance costs of $3,569 were allocated on a pro-rata basis between the two components of the Non-FT Unit.

		The total flow-through share premium of $110,400 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on March 29, 2016. As at August 31, 2016, the Company had incurred CEE of $65,505 related to the March 2016 Private Placement and the balance of $459,195 had been incurred during the year ended August 31, 2017. Accordingly, the Company had recognized a pro rata amount of the flow-through share premium of $13,783 and $96,617 through the consolidated statement of comprehensive loss as a deferred income tax recovery with a corresponding reduction to the deferred flow-through share premium liability during the years ended August 31, 2016 and August 31, 2017, respectively.

	v)	On November 7, 2016, the Company completed a private placement (the “November 2016 Private Placement”) and issued 4,545,454 flow-through common shares at $0.22 per share for gross proceeds of $1,000,000.

		In connection with the November 2016 Private Placement, the Company paid finders’ fees of $60,000, incurred other issuance costs of $11,351 and issued 272,727 non-transferrable finder’s compensation warrants. Each compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.25 per share until November 7, 2018. The estimated fair value of the compensation warrants totaled $12,747. The fair values of these compensation warrants were estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.70%; expected life of 2.0 years; and expected volatility of 74%.

		The excess of the cash consideration received over the market price of the Company’s shares at the date of the announcement of the flow-through share financing totaling $181,818 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on November 7, 2016.

	vi)	On December 23, 2016, the Company completed a private placement (the “December 2016 Private Placement”) and issued 2,500,000 flow-through common shares at $0.15 per share for gross proceeds of $375,000.

		In connection with the December 2016 Private Placement, the Company paid finders’ fees of $22,500, incurred other issuance costs of $15,367 and issued 150,000 non-transferrable finder’s compensation warrants. Each compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.15 per share until December 23, 2018. The estimated fair value of the compensation warrants totaled $9,189. The fair values of these compensation warrants were estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.78%; expected life of 2.0 years; and expected volatility of 85%.

		The excess of the cash consideration received over the market price of the Company’s shares at the date of the announcement of the flow-through share financing totaling $25,000 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on December 23, 2016.

	vii)	On June 12, 2017, the Company completed a private placement (the “June 2017 Private Placement”) and issued 3,400,000 flow-through common shares at $0.15 per share for gross proceeds of $510,000.

		In connection with the June 2017 Private Placement, the Company paid finders’ fees of $30,600, incurred other issuance costs of $23,069 and issued 204,000 non-transferrable finder’s compensation warrants. Each compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.15 per share until June 12, 2019. The estimated fair value of the compensation warrants totaled $10,463. The fair values of these compensation warrants were estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 0.83%; expected life of 2.0 years; and expected volatility of 66%.

		The excess of the cash consideration received over the market price of the Company’s shares at the date of the announcement of the flow-through share financing totaling $17,000 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on June 12, 2017.

	viii)	On August 16, 2017, the Company completed a private placement (the “August 2017 Private Placement”) and issued 3,100,000 flow-through common shares at $0.145 per share for gross proceeds of $449,500.

		In connection with the August 2017 Private Placement, the Company paid finders’ fees of $26,970, incurred other issuance costs of $21,908 and issued 186,000 non-transferrable finder’s compensation warrants. Each compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.145 per share until August 16, 2019. The estimated fair value of the compensation warrants totaled $7,655. The fair values of these compensation warrants were estimated using the Black-Scholes pricing model, with the following assumptions: expected dividend yield of Nil; risk free interest rate of 1.23%; expected life of 2.0 years; and expected volatility of 63%.

		The excess of the cash consideration received over the market price of the Company’s shares at the date of the announcement of the flow-through share financing totaling $46,500 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on August 16, 2017.

	ix)	In November 2017, the Company completed a private placement and issued 3,215,000 flow-through common shares at a price of $0.145 per share (of which 305,000 flow-through common shares were subscribed by certain directors and officers of the Company) and 4,800,000 non-flow-through units at a price of $0.12 per unit (the “Unit”) for gross proceeds of $1,042,175 (the “November 2017 Private Placement”). Each Unit consists of one non-flow-through common share and one half non- transferable common share purchase warrant, with each whole warrant being exercisable to acquire one non-flow-through common share of the Company at a price of $0.16 until November 3, 2019.

		Of the Unit price of $0.12, $0.112 was allocated to the common share component of the Unit and the balance of $0.008 was allocated to the warrant component of the Unit. These values were allocated on a pro rata basis based on the closing trading price of the Company’s common shares on the TSX on the closing date of the private placement, which was $0.135, and the estimated fair value of a whole warrant of $0.0193. The fair value of the warrant was estimated using the Black-Scholes pricing model.

		In conjunction with this private placement, the Company paid finder’s fees of $34,560, incurred other issuance costs of $10,192 and issued 288,000 non-transferrable compensation warrants, with each compensation warrant being exercisable to acquire one common share of the Company at a price of $0.15 until November 3, 2019. The total fair values of these compensation warrants were estimated at $14,030 using the Black-Scholes pricing model.

		The excess of the cash consideration received over the market price of the Company’s shares at the date of the announcement of the flow-through share financing totaling $32,150 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on the date of issuance.

	x)	In December 2017, the Company completed a private placement (the “December 2017 Private Placement”) and issued 3,737,400 flow-through common shares at $0.145 per share for gross proceeds of $541,923.

		In connection with the December 2017 Private Placement, the Company paid finders’ fees of $19,140, incurred other issuance costs of $9,322 and issued 132,000 non-transferrable finder’s compensation warrants. Each compensation warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.15 per share until December 22, 2019. The fair values of these compensation warrants were estimated at $4,475 using the Black-Scholes pricing model.

		The excess of the cash consideration received over the market price of the Company’s shares at the date of the announcement of the flow-through share financing totaling $112,122 was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on December 29, 2017.

	xi)	In July 2018, the Company completed a private placement and issued 2,400,000 non-flow-through units (“New NFT Unit”) at a price of $0.10 per New NFT Unit and 3,500,000 flow-through units (“New FT Unit”) at a price of $0.10 per New FT Unit for total gross proceeds of $590,000. Each New NFT Unit was comprised of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.12 for a period of two years from the closing date of the private placement (the “Closing Date”), or if the closing price of the common shares on the TSX is $0.16 or higher for a period of twenty consecutive trading days after the Closing Date, the Company may, by notice to the holder (supplemented by a news release of general dissemination) reduce the expiry date of the warrants to not less than 30 days from the date of such notice (the “Expiry Date”). Each New FT Unit was comprised of one flow-through common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of $0.12 until the Expiry date.

		Of the New NFT Unit price of $0.10, $0.0889 was allocated to the common share component of the New NFT Unit and the balance of $0.0111 was allocated to the warrant component of the New NFT Unit. These values were allocated on a pro rata basis based on the closing trading price of the Company’s common shares on the TSX on the Closing Date of the private placement, which was $0.095, and the estimated fair value of a warrant of $0.0119. The fair value of the warrant was estimated using the Black-Scholes pricing model.

		The fair value of the warrant component of the New FT Unit was estimated at $0.0040 and the fair value of the flow-through feature of the FT Unit was estimated at $0.0250. Using the relative fair value method, the New FT Unit price of $0.10 was allocated between the share component, the warrant component and the flow-through feature as follows: $0.0746, $0.0035, and $0.0219, respectively.

		The fair value of the warrant was estimated using the Black-Scholes pricing model. The fair value of the flow-through feature (“flow-through share premium”) was estimated by multiplying the CEE amount to be renounced per FT Unit of $0.0999 by the Company’s current tax rate of 25%, which totaled $76,650 and was recorded as a deferred flow-through share premium liability on the consolidated statement of financial position on July 11, 2018.

Warrants

The following table reconciles the warrants outstanding to purchase common shares of the Company at the beginning and end of the respective years:

				Weighted
	Number			Average
	of Warrants			Exercise Price

Balance – September 1, 2015	3,478,485	⁽¹⁾	$	0.490
Issued pursuant to equity offerings (Note 12b(ii) (iii) (iv))	12,350,000			0.164
Issued pursuant to Accommodation Agreement (note 7a)	10,000			0.230
Exercised	(125,000	)		0.150

Balance – August 31, 2016	15,713,485	⁽¹⁾		0.237
Exercised	(2,275,000	)		0.150
Expired	(3,448,485	)		0.490

Balance – August 31, 2017	9,990,000	⁽¹⁾		0.169
Issued pursuant to equity offerings (Note 12b(ix) (xi))	6,550,000			0.135
Expired	(9,960,000	)		0.168

Balance – August 31, 2018	6,580,000	⁽¹⁾	$	0.136

⁽¹⁾

Does not include the 6,466,513 US$ Warrants, 6,900,000 A1 Warrants, 6,250,000 B1 warrants and 3,750,000 C1 Warrants as disclosed below.

The outstanding warrants have a weighted average remaining contract life of 1.6 years.

The warrants reserve, included as a component of the consolidated statement of changes in equity, relates to equity settled instruments issued by the Company to various stakeholders.

As disclosed in Note 10, the Company also has the following warrants outstanding as at August 31, 2018:

	i)	6,466,513 US$ Warrants with an adjusted exercise price of US$0.5223 per share and are exercisable until June 13, 2021;

	ii)	6,900,000 A1 Warrants with an exercise price of $0.23 per share and are exercisable until March 10, 2022;

	iii)	6,250,000 B1 Warrants with an exercise price of $0.15 per share and are exercisable until January 15, 2023; and

	iv)	3,750,000 C1 Warrants with an exercise price of $0.125 per share and are exercisable until June 29, 2023.

The Company is also required to issue 20,000 warrants to the Northwest Territory Métis Nation in two equal installments of 10,000 warrants upon the Nechalacho REE Project meeting certain milestones.

Share Based Payments

The shareholders have approved a Stock Option Plan (the “Plan”) that provides for the issue of up to 10% of the number of issued and outstanding common shares of the Company to eligible employees, directors and service providers of the Company.

The Plan authorizes the granting of options to purchase common shares of the Company at a price equal to or greater than the closing price of the shares on either the trading day prior to the grant or the day of the grant. The options generally vest over a period of one to four years, and generally have a term of two to five years (but can have a maximum term of up to 10 years).

The following table reconciles the stock options outstanding at the beginning and end of the respective years:

				Weighted
	Number			Average
	of Options			Exercise Price

Balance – September 1, 2015	9,775,000		$	1.56
Granted	2,140,000			0.16
Expired	(1,125,000	)		4.46
Forfeited	(150,000	)		2.13

Balance – August 31, 2016	10,640,000			0.96
Granted	3,180,000			0.17
Expired	(3,075,000	)		2.15
Forfeited	(410,000	)		0.86

Balance – August 31, 2017	10,335,000			0.37
Granted	2,345,000			0.12
Exercised	(50,000	)		0.11
Expired	(1,215,000	)		0.91
Forfeited	(70,000	)		0.44

Balance – August 31, 2018	11,345,000		$	0.26

As at August 31, 2018, there were 7,816,250 options vested (August 31, 2017 – 7,223,750, August 31, 2016 – 7,551,250) with an average exercise price of $0.31 per share (August 31, 2017 - $0.42, August 31, 2016 - $1.15), that were exercisable.

During the year ended August 31, 2018, an aggregate of 50,000 stock options were exercised at the weighted average exercise price of $0.11 per share, and the weighted average closing market share price on the date preceding the date of exercise was $0.13 per share. No stock options were exercised during the years ended August 31, 2016 and 2017.

The share based payments reserve, included as a component of the consolidated statement of changes in equity, relates to equity settled compensation options issued by the Company to its directors, officers, employees and consultants.

The estimated fair value of options earned during the year ended August 31, 2018 was $176,836 (2017 - $254,994, 2016 - $455,475), of which $1,825 (2017 - $3,172, 2016 - $5,633) was capitalized to property, plant and equipment, $25,129 (2017 - $66,082, 2016 - $103,407) was capitalized as exploration and evaluation assets, $596 (2017 - $2,632, 2016 - $1,000) was charged to operations as general exploration expenses, with the balance of $149,286 (2017 - $183,108, 2016 - $345,435) charged to operations as share based compensation expense.

The fair value of each option granted is estimated at the time of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the input of subjective assumptions, including expected life of the option award, share price volatility and other assumptions. The expected life of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. Expected volatility is based on the historic volatility of the Company’s shares. These assumptions involve inherent uncertainties and the application of management judgment. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those options expected to vest.

The weighted average assumptions for grants during the years ended August 31, 2018, August 31, 2017 and August 31, 2016 are as follows:

		August 31,		August 31,		August 31,
		2018		2017		2016

Exercise price	$	0.12	$	0.17	$	0.16
Closing market price on day preceding date of grant	$	0.12	$	0.17	$	0.16
Risk-free interest rate		1.88%		0.75%		0.53%
Expected life (years)		3.1		3.0		3.5
Expected volatility		59%		77%		71%
Expected dividend yield		nil		nil		nil
Grant date fair value	$	0.05	$	0.08	$	0.08
Forfeiture rate		15%		16%		16%

The following table summarizes information concerning outstanding and exercisable options as at August 31, 2018:

			Weighted Average
	Number of Options		Remaining
Exercise Price Range	Outstanding	Exercisable	Contractual Life

$0.60 - $0.84	1,035,000	1,035,000	0.5 years
$0.40 - $0.59	1,140,000	1,117,500	0.7 years
$0.30 - $0.39	585,000	438,750	1.7 years
$0.20 - $0.29	1,770,000	1,488,750	1.8 years
$0.11 - $0.19	6,815,000	3,736,250	2.2 years

	11,345,000	7,816,250

Brokers’ Compensation Warrants

The following table summarizes information concerning outstanding brokers’ compensation warrants as at August 31, 2016, August 31, 2017 and August 31, 2018:

	Number of			Weighted
	Compensation			Average
	Warrants			Exercise Price

Balance – September1, 2015	1,732,612		$	0.45	⁽¹⁾
Issued pursuant to equity offerings (Note 12b(ii)(iii)(iv))	840,000			0.13
Exercised	(360,000	)		0.13

Balance – August 31, 2016	2,212,612			0.38	⁽¹⁾
Issued pursuant to equity offerings (Note 12b(v)(vi)(vii)(viii))	812,727			0.18
Expired	(1,732,612	)		0.44

Balance – August 31, 2017	1,292,727			0.16
Issued pursuant to equity offering (note 12b(ix)(x))	420,000			0.15
Exercised	(300,000	)		0.11
Expired	(180,000	)		0.18

Balance – August 31, 2018	1,232,727		$	0.17

⁽¹⁾

554,273 of the compensation warrants outstanding as at Semptember 1, 2015 and throughout the period to August 31, 2016 were denominated in US$. The effect of the change in the foreign exchange rate between the Canadian$ and the US$ had been reflected in the weighted average exercise price as at September 1, 2015 and as at August 31, 2016.

The brokers’ compensation warrants reserve, included as a component of the consolidated statement of changes in equity, relates to equity settled compensation instruments issued by the Company to external service providers.

As at August 31, 2018, the Company has the following compensation warrants outstanding:

	(i)	272,727 compensation warrants with an exercise price of $0.25 per common share, which are exercisable until November 7, 2018;

	(ii)	150,000 compensation warrants with an exercise price of $0.15 per common share, which are exercisable until December 23, 2018;

	(iii)	204,000 compensation warrants with an exercise price of $0.15 per common share, which are exercisable until June 12, 2019;

	(iv)	186,000 compensation warrants with an exercise price of $0.145 per common share, which are exercisable until August 16, 2019;

	(v)	288,000 compensation warrants with an exercise price of $0.15 per common share, which are exercisable until November 3, 2019; and

	(vi)	132,000 compensation warrants with an exercise price of $0.15 per common share, which are exercisable until December 22, 2019.