10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________

000-54416
(Commission File Number)

SCANDIUM INTERNATIONAL MINING CORP.
(Exact name of registrant as specified in its charter)

British Columbia, Canada	98-1009717
(State or other jurisdiction	(IRS Employer
of incorporation or organization)	Identification No.)

1430 Greg Street, Suite 501, Sparks, Nevada 89431
(Address of principal executive offices) (Zip Code)

(775) 355-9500
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by sections 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X] No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer [   ] Accelerated filer [   ] Non-accelerated filed [   ] Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company, as defined in Rule 12b-2 of the Exchange Act.
Yes [   ] No [X]

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:
As of May 9, 2019, the registrant’s outstanding common stock consisted of 311,782,595 shares.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2019

Scandium International Mining Corp.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in US Dollars) (Unaudited)

As at:		March 31, 2019			December 31, 2018
ASSETS
Current
Cash	$	774,322		$	284,757
Prepaid expenses and receivables		30,458			38,951
Total Current Assets		804,780			323,708
Reclamation bond (Note 4)		11,444			11,444
Equipment (Note 3)		8,697			9,274
Mineral property interests (Note 4)		704,053			704,053
Total Assets	$	1,528,974		$	1,048,479
LIABILITIES AND EQUITY
Current
Accounts payable and accrued liabilities	$	35,178		$	146,586
Accounts payable with related parties (Note 5)		15,390			-
Total Liabilities		50,568			146,586
Equity
Capital stock (Note 6) (Authorized: Unlimited number of common shares;        Issued and outstanding: 311,782,595 (2018 – 304,781,294))		109,241,572			108,244,311
Treasury stock (Note 7) (1,033,333 common shares) (2018 – 1,033,333)		(1,264,194	)		(1,264,194	)
Additional paid in capital (Note 6)		5,587,830			5,675,812
Accumulated other comprehensive loss		(853,400	)		(853,400	)
Deficit		(111,233,402	)		(110,900,636	)
Total Equity		1,478,406			901,893
Total Liabilities and Equity	$	1,528,974		$	1,048,479
Nature and continuance of operations (Note 1)

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Scandium International Mining Corp.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in US Dollars) (Unaudited)

		March 31, 2019			March 31, 2018
3 month period ended
EXPENSES
Amortization (Note 3)	$	577		$	158
Consulting		95,618			68,179
Exploration (recovery)		(26,184	)		(16,794	)
General and administrative		94,492			100,382
Insurance		7,584			7,345
Professional fees		29,204			54,401
Salaries and benefits		114,109			158,895
Stock-based compensation (Note 6)		13,116			920,558
Travel and entertainment		13,731			26,019
		(342,247	)		(1,319,143	)
Foreign exchange gain (loss)		9,481			(10,470	)
Loss and comprehensive loss for the period	$	(332,766	)	$	(1,329,613	)
Basic and diluted loss per common share	$	0.00		$	0.01
Weighted average number of common shares outstanding – basic and diluted		305,571,161			292,740,146

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Scandium International Mining Corp.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in US Dollars) (Unaudited)

3-month period ended		March 31, 2019			March 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period	$	(332,766	)	$	(1,329,613	)
Items not affecting cash:
Amortization		577			158
Stock-based compensation		13,116			920,558
Changes in non-cash working capital items:
Decrease (increase) in prepaid expenses and receivables		8,493			(58,951	)
(Decrease) increase in accounts payable, accrued liabilities and accounts		(96,018	)		318
payable with related parties
		(406,598	)		(467,530	)
CASH FLOWS FROM FINANCING ACTIVITIES
Common shares issued		799,483			810,898
Options exercised for common shares		96,680			16,071
		896,163			826,969
Change in cash during the period		489,565			359,439
Cash, beginning of period		284,757			343,434
Cash, end of period	$	774,322		$	702,873
		2019			2018
Cash paid during the 3 month period for interest	$	-		$	-
Cash paid during the 3 month period for taxes	$	-		$	-

There were no significant non-cash investing and financing activities during the periods ended March 31, 2019 and 2018.

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Scandium International Mining Corp.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Expressed in US Dollars) (Unaudited)

											Accumulated
					Additional Paid						Other						Total
	Number of				in Capital			Treasury Stock			Comprehensive			Deficit			Stockholders’
	Shares		Capital Stock								Loss						Equity
Balance, December 31, 2018	304,781,294	$	108,244,311	$	5,675,812		$	(1,264,194	)	$	(853,400	)	$	(110,900,636	)	$	901,893
Private placement	5,926,301		799,483		-			-			-			-			799,483
Options exercised	1,075,000		197,778		(101,098	)		-			-			-			96,680
Stock-based compensation	-		-		13,116			-			-			-			13,116
Loss for the period	-		-		-			-			-			(332,766	)		(332,766	)
Balance, March 31, 2019	311,782,595	$	109,241,572	$	5,587,830		$	(1,264,194	)	$	(853,400	)	$	(111,233,402	)	$	1,478,406

											Accumulated
					Additional Paid						Other						Total
	Number of				in Capital			Treasury Stock			Comprehensive			Deficit			Stockholders’
	Shares		Capital Stock								Loss						Equity
Balance, December 31, 2017	291,970,239	$	106,468,869	$	4,617,484		$	(1,264,194	)	$	(853,400	)	$	(107,939,528	)	$	1,029,528
Private placement	5,729,167		810,898		-			-			-			-			810,898
Options exercised	200,000		19,964		(3,893	)		-			-			-			16,071
Stock-based compensation	-		-		920,558			-			-			-			920,558
Loss for the period	-		-		-			-			-			(332,766	)		(332,766	)
Balance, March 31, 2018	297,899,406	$	107,299,731	$	5,534,149		$	(1,264,194	)	$	(853,400	)	$	(109,269,141	)	$	1,447,145

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Scandium International Mining Corp.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2019

(Expressed in US Dollars) (Unaudited)

1.	NATURE AND CONTINUANCE OF OPERATIONS
	Scandium International Mining Corp. (the “Company”) is a specialty metals and alloys company focusing on scandium and other specialty metals.
	The Company was incorporated under the laws of the Province of British Columbia, Canada in 2006. The Company currently trades on the Toronto Stock Exchange under the symbol “SCY”.
	The Company’s focus is on the exploration and evaluation of its specialty metals assets, specifically the Nyngan scandium deposit located in New South Wales, Australia. The Company is an exploration stage company and anticipates incurring significant additional expenditures prior to production at any and all of its properties.
	These condensed consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying values in the normal course of business for the foreseeable future. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.
	The Company currently earns no operating revenues and will require additional capital in order to advance the Nyngan property. The Company’s ability to continue as a going concern is uncertain and is dependent upon the generation of profits from mineral properties, obtaining additional financing and maintaining continued support from its shareholders and creditors. These are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. In the event that additional financial support is not received or operating profits are not generated, the carrying values of the Company’s assets may be adversely affected.
2.	BASIS OF PRESENTATION
	Basis of presentation
	The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries with all significant intercompany transactions eliminated. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 and with our Annual Report on Form 10-K filed with the SEC on March 4, 2019. Operating results for the three- month period ended March 31, 2019 may not necessarily be indicative of the results for the year ending December 31, 2019.
	These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp. Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (EMC-A”).
	Use of estimates
	The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.
	The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval.
	Fair value of financial assets and liabilities
	The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.
	The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.
	Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for- trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

6

Scandium International Mining Corp.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2019

(Expressed in US Dollars) (Unaudited)

2.	BASIS OF PRESENTATION (cont’d…)
	Financial instruments, including receivables, accounts payable and accrued liabilities, and accounts payable with related parties are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments.
	The Company has no leases with a term of greater than 12 months. Short term lease expenses totaled $6,966 during the quarter ended March 31, 2019 and $6,699 during the quarter ended March 31, 2018.
	The following table presents information about the assets that are measured at fair value on a recurring basis as at March 31, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

				Quoted Prices		Significant Other		Significant
		March 31,		in Active Markets		Observable Inputs		Unobservable Inputs
		2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash	$	774,322	$	774,322	$	—	$	—
Total	$	774,322	$	774,322	$	—	$	—

The carrying value of receivables, accounts payable and accrued liabilities, and accounts payable with related parties approximate their fair value due to their short-term nature.

The fair value of cash is determined through market, observable and corroborated sources.

    Recently Adopted and Recently Issued Accounting Standards

Accounting Standards Update 2019-01 – Leases (Topic 842) Codification Improvements - Issue 3 Transition Disclosures Related to Topic 250, Accounting Changes and Error Corrections. The amendments in this Update clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-13 – Fair Value Measurement (Topic 840) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-11 - Leases (Topic 842) Targeted Update. This accounting pronouncement is an update to Accounting Standard 2016-02 (see below). This standard allows for an additional (and optional) transition method. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted the election to recognize short-term leases through profit or loss, with no material effect to the consolidated financial statements.

Accounting Standards Update 2018-07 – Compensation – Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. This accounting pronouncement deals with simplification of share-based accounting in efforts to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has adopted this policy with no material effect to the consolidated financial statements.

Accounting Standards Update 2016-02 - Leases (Topic 842). This accounting pronouncement allows lessees to make an accounting policy election to not recognize a lease asset and liability for leases with a term of 12 months or less and that do not have a purchase option that is expected to be exercised. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted this policy which had no material effect to the consolidated financial statements.

7

Scandium International Mining Corp.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2019

(Expressed in US Dollars) (Unaudited)

3. EQUIPMENT

		December 31,		Additions
		2018 Net Book		(disposals)					March 31, 2019
		Value		(write-offs)		Amortization			Net Book Value
Computer equipment	$	9,274	$	-	$	(577	)	$	8,697
		December 31,		Additions					December 31,
		2017 Net Book		(disposals)					2018 Net Book
		Value		(write-offs)		Amortization			Value
Computer equipment	$	1,947	$	8,377	$	(1,050	)	$	9,274

4. MINERAL PROPERTY INTERESTS

		Scandium and
March 31, 2019		other
Balance, March 31, 2019, December 31, 2018	$	704,053

	Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral property interests. The Company has investigated title to all of its mineral property interests and, to the best of its knowledge, title to all of its properties is in good standing.
	SCANDIUM PROPERTIES
	Nyngan, New South Wales Property
	The Company holds a 100% interest in the Nyngan property in New South Wales, Australia (NSW). A definitive feasibility study was completed on the property in fiscal 2016. During December 2017 the Company revised and renewed a scandium product offtake agreement for delivery of scandium-based product upon availability from mine production.
	In April 2019, the Company received notice from the New South Wales Department of Planning and Environment (the “Department”) that, due to a procedural issue within the Department, the Company’s Mine Lease Grant, (“ML 1763”), pertaining to the Nyngan Scandium Project, previously issued by the Department, is invalid. The Company is seeking resolution to the status of ML 1763 and maintains its lease application in good standing.
	Royalties attached to the Nyngan property include, a 0.7% royalty on gross mineral sales on the property, a 1.5% Net Profits Interest royalty to private parties involved with the early exploration on the property, and a 1.7% Net Smelter Returns royalty payable for 12 years after production commences. Another revenue royalty is payable to private interests of 0.2%, subject to a $370,000 cap. A NSW minerals royalty will also be levied on the project, subject to negotiation, currently 4% on revenue.
	Honeybugle property, Australia
	The Company holds a 100% interest in the Honeybugle property.
	Kiviniemi Scandium Property Finland
	In August 2018, the Company was granted an Exploration License for the Kiviniemi Scandium Property in central Finland from the Finnish regulatory body governing mineral exploration and mining in Finland. As of March 31, 2019, no funds have been capitalized for this property. During fiscal 2018, a reclamation bond of $11,444 (€10,000) was placed.
5.	RELATED PARTY TRANSACTIONS
	During the 3-month period ended March 31, 2019, the Company expensed $Nil for stock-based compensation for stock options issued to Company directors. During the 3-month period ended March 31, 2018, the Company expensed $695,405 for stock- based compensation for stock options issued to Company directors.
	During the 3-month period ended March 31, 2019, the Company paid a consulting fee of $25,500 to one of its directors. During the 3-month period ended March 31, 2018, the Company paid a consulting fee of $25,500 to one of its directors.
	As at March 31, 2019, the Company owed $15,390 to various directors and officers of the Company. (December 31, 2018 - $Nil)

8

Scandium International Mining Corp.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2019

(Expressed in US Dollars) (Unaudited)

6.	CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL
	Private placements
	On March 21, 2019, the Company issued 5,926,301 common shares at a value of C$0.18 per common share for total proceeds of C$1,066,734 ($799,483).
	On March 2, 2018, the Company issued 5,729,167 common shares at a value of C$0.18 per common share for total proceeds of C$1,031,250 ($810,898).
	Stock Options
	The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants and the number of options granted under the Plan shall not exceed 15% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors.
	Stock option transactions are summarized as follows:

	Stock Options
				Weighted average
	Number			exercise price in Canadian $
Outstanding, December 31, 2017	23,585,000		$	0.18
Granted	6,850,000			0.225
Exercised	(1,010,000	)		0.10
Expired	(360,000	)		0.27
Outstanding, December 31, 2018	29,065,000			0.194
Exercised	(1,075,000	)		0.12
Outstanding, March 31, 2019	27,990,000		$	0.197
Number currently exercisable	27,610,000		$	0.196

As at March 31, 2019, incentive stock options were outstanding as follows:

	Number of	Number of	Exercise
	Options	Options	Price in	Expiry Date
	Outstanding	Exercisable	Canadian $
Options
	2,300,000	2,300,000	0.120	July 25, 2019
	200,000	200,000	0.100	December 30, 2019
	3,450,000	3,450,000	0.140	April 17, 2020
	250,000	250,000	0.600	May 11, 2020
	400,000	400,000	0.115	August 28, 2020
	4,300,000	4,300,000	0.100	November 5, 2020
	4,850,000	4,850,000	0.130	February 8, 2021
	400,000	400,000	0.200	June 14, 2021
	4,980,000	4,980,000	0.370	February 21, 2022
	250,000	150,000	0.300	October 6, 2022
	6,260,000	5,980,000	0.225	January 19, 2023
	350,000	350,000	0.185	August 30,2023
	27,990,000	27,610,000

As at March 31, 2019 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $594,500 (December 31, 2018 - $1,084,994).

9

Scandium International Mining Corp.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2019

(Expressed in US Dollars) (Unaudited)

6. CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (cont’d…) Stock-based compensation

During the 3-month period ended March 31, 2019, the Company recognized stock-based compensation of $13,116 (March 31, 2018 - $920,558) in the statement of operations and comprehensive loss. There were no stock options granted during the 3-month period ended March 31, 2019 (March 31, 2018 – 6,500,000).

The weighted average fair value of the options granted in the quarter was C$ Nil (2018 - C$0.192) .

The fair value of all compensatory options granted is estimated on grant date using the Black-Scholes option pricing model. The weighted average assumptions used in calculating the fair values of stock options granted in the 3-month period ended March 31 are as follows:

	2019	2018
Risk-free interest rate	N/A	1.96%
Expected life	N/A	5 years
Volatility	N/A	127.81%
Forfeiture rate	N/A	N/A
Dividend rate	N/A	N/A

7. TREASURY STOCK

	Number		Amount
Treasury shares, March 31, 2019 and December 31 2018	1,033,333	$	1,264,194
	1,033,333	$	1,264,194

	Treasury shares comprise shares of the Company which cannot be sold without the prior approval of the TSX.
8.	SEGMENTED INFORMATION
	The Company’s mineral properties are located in Australia. The Company’s capital assets’ geographic information is as follows:

March 31, 2019		Australia		United States		Total
Equipment	$	-	$	8,697	$	8,697
Mineral property interests		704,053		-		704,053
	$	704,053	$	8,697	$	712,750
December 31, 2018		Australia		United States		Total
Equipment	$	-	$	9,274	$	9,274
Mineral property interests		704,053		-		704,053
	$	704,053	$	9,274	$	713,327

10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of the operating results, corporate activities and financial condition of Scandium International Mining Corp. (hereinafter referred to as “we”, “us”, “Scandium International”, “SCY”, or the “Company”) and its subsidiaries provides an analysis of the operating and financial results between December 31, 2018 and March 31, 2019 and a comparison of the material changes in our results of operations and financial condition between the three-month period ended March 31, 2018 and the three-month period ended March 31, 2019. This discussion should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2018.

This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth under the heading “Risk Factors and Uncertainties” in our Annual Report on Form 10-K for the year ended December 31, 2018, and elsewhere in this Quarterly Report on Form 10-Q.

The interim statements have been prepared in accordance with US Generally Accepted Accounting Principles, as required under U.S. federal securities laws applicable to the Company, and as permitted under applicable Canadian securities laws. The Company is a reporting company under applicable securities laws in Canada and the United States. The reporting currency used in our financial statements is the United States Dollar.

The information contained within this report is current as of May 9, 2019 unless otherwise noted. Additional information relevant to the Company’s activities can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Technical information in this MD&A has been reviewed and approved by Willem Duyvesteyn, a Qualified Person as defined by Canadian National Instrument 43-101 (“NI 43-101”). Mr. Duyvesteyn is a director and consultant of Scandium International.

Cautionary Note to U.S. Investors Regarding Reserve and Resource Estimates

The Company uses Canadian Institute of Mining, Metallurgy and Petroleum definitions for the terms “proven reserves”, “probable reserves”, “measured resources” and “indicated resources”. U.S. investors are cautioned that while these terms are recognized and required by Canadian regulations, including National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the U.S. Securities and Exchange Commission (“SEC”) does not recognize them. Canadian mining disclosure standards differ from the requirements of the SEC under SEC Industry Guide 7, and reserve and resource information referenced in this Form 10-Q may not be comparable to similar information disclosed by companies reporting under U.S. standards. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserve”. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources” or “indicated mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Disclosure of “contained ounces” in a resource estimate is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves in compliance with NI 43-101 may not qualify as “reserves” under SEC standards.

Cautionary Note Regarding Forward-Looking Statements

Certain statements made in this Quarterly Report on Form 10-Q may constitute forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include, but are not limited to, reserve and resource estimates, estimated value of the project, projected investment returns, anticipated mining and processing methods for the project, the estimated economics of the project, anticipated scandium recoveries, production rates, scandium grades, estimated capital costs, operating cash costs and total production costs, planned additional processing work and environmental permitting. The forward-looking statements in this report are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation, risks related to uncertainty in the demand for scandium and pricing assumptions; uncertainties related to raising sufficient financing to fund the Nyngan Scandium Project in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of scandium reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; risks related to projected project economics, recovery rates, and estimated NPV and anticipated IRR and other factors identified in the Company's SEC filings and its filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

Scandium International Corporate Overview

Scandium International is a specialty metals and alloys company focused on developing the production and sales of scandium and other specialty metals. The Company intends to utilize its knowhow and, in certain instances, patented technologies to maximize opportunities in scandium and other specialty metals.

The Company was formed in 2006, under the name Golden Predator Mines Inc. As part of a reorganization and spin-out of the Company’s precious metals portfolio in March 2009, the Company changed its name to EMC Metals Corp. In order to reflect our emphasis on mining for scandium minerals, effective November 19, 2014, we changed our name to Scandium International Mining Corp. The Company currently trades on the Toronto Stock Exchange under the symbol “SCY”.

Our focus of operations is the exploration and development of the Nyngan scandium deposit located in New South Wales (“NSW”), Australia (“Nyngan” or the “Nyngan Scandium Project”). We also hold exploration stage properties in Australia, known as the “Honeybugle Scandium Property”, and in Finland, known as the “Kiviniemi Scandium Property”.

We acquired a 100% interest in the Nyngan Scandium Project in June of 2014 pursuant to the terms of a settlement agreement with Jervois Mining Ltd. of Melbourne, Australia. The project is held through our Australian subsidiary, EMC Metals Australia Pty Ltd. (“EMC Australia”), which also holds the Honeybugle Scandium Property.

During Q3 of 2015, the Company converted a $2,500,000 loan from Scandium Investments LLC (“SIL”), an unrelated investment company, into a 20% minority interest in EMC Australia. As a result, from Q3 2015 until October 2017, the Company held an 80% equity interest in EMC Australia, with SIL holding a 20% interest. EMC Australia was operated as a joint venture between SIL and SCY with SIL holding a carried interest in the Nyngan Scandium Project until the Company met certain development milestones. The Company completed the development milestones during May 2017 and triggered a limited period option whereby SIL had a right to convert the fair market value of its 20% interest in EMC Australia into an equivalent value of SCY common shares, at then prevailing market prices.

In June of 2017, the Company entered into a share exchange agreement with SIL for the purchase of SIL’s 20% interest in EMC Australia in exchange for 57,371,565 common shares of SCY as well as an additional 1,459,080 common shares as a royalty adjustment payment. Closing of the purchase of the EMC Australia shares was subject to shareholder approval, which the Company obtained at a special meeting of shareholders held on September 11, 2017. The transaction subsequently closed on October 9, 2017. Under the terms of the share purchase agreement, on closing SIL was granted the right to nominate two individuals to the board of the Company for so long as SIL held at least 15% of Scandium’s issued and outstanding shares, and one director for so long as SIL held at least 5% but less than 15% of Scandium’s issued and outstanding shares. Pursuant to the nomination rights, Peter Evensen and R. Christian Evensen were appointed as directors to the SCY Board on closing of the transaction.

During the first quarter of 2019, we focused on Nyngan Scandium Project activities including scandium marketing arrangements.

Principal Properties Review

Nyngan Scandium Project (NSW, Australia)

Nyngan Property Description and Location

The Nyngan Scandium Project site is located approximately 450 kilometers northwest of Sydney, NSW, Australia and approximately 20 kilometres due west of the town of Nyngan, a rural town of approximately 2900 people. The general area can be characterized as flat countryside and is classified as agricultural land, used predominantly for wheat farming and livestock grazing.

 

Nyngan Feasibility Study

On April 18, 2016, the Company announced the results of an independently prepared feasibility study on the Nyngan Scandium Project. The technical report on the feasibility study entitled “Feasibility Study – Nyngan Scandium Project, Bogan Shire, NSW, Australia” is dated May 4, 2016 and was independently compiled pursuant to the requirements of NI 43-101 (the “Feasibility Study”). The report was filed on May 6, 2016 and is available on SEDAR (www.sedar.com), on the Company’s website (www.scandiummining.com) and the SEC’s website (www.sec.gov). A full discussion on the technical report was provided in the Company’s Form 10Q for the quarterly period ending March 31, 2016, as filed with the SEC and on SEDAR on May 13, 2016.

The Feasibility Study concluded that the Nyngan Scandium Project has the potential to produce an average of 37,690 kilograms of scandium oxide (scandia) per year, at grades of 98.0% -99.8%, generating an after tax cumulative cash flow over a 20 year Project life of US$629 million, with an NPV10% of US$177 million. The average process plant feed grade over the 20 year Project life is 409ppm of scandium.

The financial results of the Feasibility Study are based on a conventional flow sheet, employing continuous high pressure acid leach (HPAL) and solvent extraction (SX) techniques. The flow sheet was modeled and validated from METSIM modeling and considerable bench scale/pilot scale metallurgical test work utilising Nyngan resource material. A number of the key elements of this flowsheet work have been protected by the Company under US patent applications.

The Feasibility Study has been developed and compiled to an accuracy level of +15%/-5%, by a globally recognized engineering firm that has considerable expertise in laterite deposits and process facilities, as well as in smaller mining and processing projects, and has excellent familiarity with the Nyngan Scandium Project location and environment.

Nyngan Scandium Project Highlights

• Capital cost estimate for the Project is US$87.1 million,
• Annual scandium oxide product volume averages 37,690 kg per year, over 20 years,
• Annual revenue of US$75.4 million (oxide price assumption of US$2,000/kg),
• Operating cost estimate for the Project is US$557/kg scandium oxide,
• Project Constant Dollar NPV10% is US$177 million, (NPV8% is US$225 million),
• Project Constant Dollar IRR is 33.1%,
• Oxide product grades of 98-99.8%, as based on customer requirements,
• Project resource increases by 40% to 16.9 million tonnes, grading 235ppm Sc, at a 100ppm cut- off in the measured and indicated categories, and
• Project Reserve totalling 1.43 million tonnes, grading 409ppm Sc was established on part of the resource.

DFS Conclusions and Recommendations

The production assumptions in the Feasibility Study are backed by solid independent flow sheet test work on the planned process for scandium recovery and consolidates a significant amount of metallurgical test work and prior study on the Nyngan Scandium Project. The entire body of work demonstrates a viable, conventional process flow sheet utilizing a continuous-system HPAL leaching process, and good metallurgical recoveries of scandium from the resource. The metallurgical assumptions are supported by various bench and pilot scale independent test work programs that are consistent with known outcomes in other laterite resources. The continuous autoclave configuration, as opposed to batch systems explored in previous flow sheets, is also a more conventional and current design choice.

The level of accuracy established in the Feasibility Study substantially reduces the uncertainty levels inherent in earlier studies. The greater confidence intervals around the Feasibility Study were achieved by reliance on significant project engineering work, a capital and operating cost estimate supported by detailed requirements and vendor pricing, plus one offtake agreement and an independent marketing assessment, both supportive of the marketing assumptions on the business.

The Feasibility Study delivered a positive result on the Nyngan Scandium Project, and recommended the Nyngan Scandium Project owners seek finance and proceed to construction. Recommendations were made therein for additional immediate work, notably to win additional offtake agreements with customers, complete some optimizing flow sheet studies, and to initiate as early as possible detailed engineering required on certain long-lead capital items.

Confirmatory Metallurgical Test Results

On June 29, 2016, we announced the results of a confirmatory metallurgical test work report from Altrius Engineering Services (AES) of Brisbane, Australia. The test work results directly relate to the list of recommended programs included in the Feasibility Study. AES devised and supervised these test work programs at the SGS laboratory in Perth, Australia and at the Nagrom laboratory in Brisbane, Australia.

The project DFS recommended a number of process flowsheet test work programs be investigated prior to commencing detailed engineering and construction. Those study areas included pressure leach (“HPAL”), counter-current decant circuits, solvent extraction (“SX”), and oxalate precipitation, with specific work steps suggested in each area. This latest test work program addressed all of these recommended areas, and the results confirm recoveries and efficiencies that either meet or exceed the parameters used in the DFS. Highlights of the testing are:

• Pressure leach test work achieved 88% recoveries, from larger volume tests,
• Settling characteristics of leach discharge slurry show substantial improvement,
• Residue neutralization work meets or exceeds all environmental requirements as presented in the DFS and the environmental impact statement,
• Solvent extraction circuit optimization tests generated improved performance, exceeding 99% recovery in single pass systems, and
• Product finish circuits produced 99.8% scandium oxide, completing the recovery process from Nyngan ore to finished scandia product.

Engineering, Procurement and Construction Management Contract

On May 30, 2017, the Company announced that its subsidiary EMC Australia signed an Engineering, Procurement and Construction Management ("EPCM") contract with Lycopodium Minerals Pty Ltd ("Lycopodium"), to build the Nyngan Scandium Project in New South Wales, Australia. The EPCM contract also provides for start-up and commissioning services.

The EPCM contract appoints Lycopodium (Brisbane, QLD, Australia) to manage all aspects of project construction. Lycopodium is the principal engineering firm involved with the DFS. Lycopodium's continued involvement in project construction and commissioning ensures valuable technical and management continuity for the project during the construction and start-up of the project.

On October 19, 2017, we announced that Lycopodium has been instructed to initiate critical path engineering for the Nyngan Scandium Project. Lycopodium commenced work on select critical path components for the project, including design and specification engineering on the high-pressure autoclave unit, associated flash and splash vessels and several specialized high-pressure input pumps. The engineering work was completed in 2018 and will enable final supplier selection, firm component pricing and delivery dates for these key process components.

Environmental Permitting/Development Consent/Mining Lease

On May 2, 2016, the Company announced the filing of an Environmental Impact Statement (“EIS”) with the New South Wales Department of Planning and Environment (the “Department”) in support of the planned development of the Nyngan Scandium Project. The EIS was prepared by R.W. Corkery & Co. Pty. Limited, on behalf of the Company’s subsidiary, EMC Australia, to support an application for Development Consent for the Nyngan Scandium Project. The EIS is a complete document, including a Specialist Consultants Study Compendium, and was submitted to the Department on April 29, 2016.

EIS Highlights:

• The EIS finds residual environmental impacts represent negligible risk.
• The proposed development design achieves sustainable environmental outcomes.
• The EIS finds net-positive social and economic outcomes for the community.
• Nine independent environmental consulting groups conducted analysis over five years, and contributed report findings to the EIS.
• The Nyngan Project development is estimated to contribute A$12.4M to the local and regional economies, and A$39M to the State and Federal economies, annually.
• The EIS is fully aligned with the DFS and with a NSW Mining License Application for the Nyngan Project.

Conclusion statement in the EIS:

“In light of the conclusions included throughout this Environmental Impact Statement, it is assessed that the Proposal could be constructed and operated in a manner that would satisfy all relevant statutory goals and criteria, environmental objectives and reasonable community expectations.”

EIS, Development Consent, Mining Lease:

The EIS is the foundation document submitted by a developer intending to build a mine facility in Australia. The Nyngan Scandium Project is considered a State Significant Project, in that capital cost exceeds A$30 million, which means State agencies are designated to manage the investigation and approval process for granting a Development Consent, from the Minister of Planning and Environment. This Department will manage the review of the Proposal through a number of State and local governmental agencies.

The EIS is a self-contained set of documents used to seek a Development Consent. It is however, supported in many ways by the feasibility study.

On November 10, 2016, the Company announced that the Development Consent had been granted. This Development Consent represents an approval to develop the Nyngan Scandium Project and is based on the EIS. The Development Consent follows an in-depth review of the EIS, the project plan, community impact studies, public EIS exhibition and commentary, and economic viability, and involved more than 12 specialized governmental agencies and groups.

During May 2017, EMC Australia received notice of approval for its Mining Lease application. The Mining Lease (“ML”) overlays select areas previously covered by two Exploration Licenses. The ML represents the final major development approval required from the NSW Government to begin construction on the project. The ML is awarded after all environmental work has been completed and reviewed, all social implications of project development have been considered, and the NSW Environmental Minister has issued a Development Consent, which was received earlier, in November 2016. The ML grant reflects the further review that the State resource value has been considered and approved for extraction based on mine development plans. The ML is issued for a period of 21 years, and is based on the development plans and intent submitted in the ML Application. The ML can be modified by NSW regulatory agencies, as requested by EMC Australia over time, to reflect changing operating conditions.

In addition to these two key governmental approvals, other required licenses and permits must be acquired but are considered routine and require only compliance with fixed standards and objective measurements. These remaining approvals include submittal of numerous plans and reports supporting compliance with Development Consent and Mining Lease. In addition, the following water, roads, dam and electrical access reviews and arrangements must be finalized:

• Water Supply Works and Use Approval and Water Access License,
• State and local approval for construction of the intersection of the Site Access Road and Gilgai Road,
• An approval from the NSW Dams Safety Committee for the design and construction of the Residue Storage Facility, and
• A high voltage connection agreement with Essential Energy.

On January 2, 2019, the Company announced receipt of notification that the Department is reviewing the granting of Mine Lease 1763 related to the Nyngan Scandium Project. The Company does not expect the outcome of this ML review to affect its ability to bring the Nyngan Scandium Project into production.

This Department review is in response to an objection by a landowner who holds freehold surface ownership over a portion of the total 874 hectare mine lease area. The landowner objection claims the property is “Agricultural Land”, as defined by the applicable laws.

The landowner filed a formal objection with the Department in mid 2016. That formal objection notice was improperly handled, and was only physically located and verified as compliant in mid 2018. The landowner made the Department aware of the existence of an unrecorded objection in mid 2017, and the Company was subsequently advised that the objection was investigated by the Department directly with the landowner prior to final award of the signed ML grant in late 2017.

The Department has recently sought and received independent consultant input that the landowner objection should qualify as “Agricultural Land”, as defined by the applicable laws. The Company has rights of comment on that finding, which have been exercised, in a formal comment package delivered to the Department on February 1, 2019. With receipt and consideration of comment documents from the parties, and further Department input, the Department Secretary will make a new determination on the validity of the affected portion of the ML.

On April 18, 2019, we announced that the Company received notice from the Department that, due to a procedural issue within the Department, ML 1763 previously issued by the Department on October 4, 2017, is invalid.

The Department has determined that its internal procedures failed to properly and fully consider an affected landowner’s ‘Agricultural Land’ objection prior to the grant of ML 1763, as specified by applicable laws. The Department has not changed the formal ‘granted’ status of ML 1763 on its electronic public record system (TAS), but that is now expected to occur.

As the Company’s underlying mine lease application (‘MLA 531’) submitted in 2016 covering the entire area originally requested has not been impacted or altered by the Department’s advice regarding ML 1763, the mine lease application remains in force and pending. The Department has not yet completed its review and determination of the validity of the landowner’s objection, as per applicable laws, but has advised the Company that it is continuing with its ongoing formal review.

The Department’s ultimate decision on the validity of the landowner objection will then determine the outcome on the pending application (MLA 531). If the landowner’s objection is not upheld by the Department, then the Department will proceed to re-grant a new Mining Lease to the Company.

The Company believes that the viability of the project is not dependent on land related to the current landowner objection, and therefore on the Department findings related to validity of the pending objection. The Company is confident that a new mining lease can be obtained, based exclusively on surface rights owned by the Company, and that the Nyngan Scandium Project can proceed with similar operational and economic parameters on that basis.

If the Department Secretary’s decision upholds the landowner objection, the Company believes that the outcome will not delay or prevent the development of the Nyngan Scandium Project, as is generally characterized in the 2016 feasibility study.

In May 2019 we announced filing a new mine lease application (“MLA 568”) with the Department, related to the Nyngan Scandium Project. The new application covers 371 hectares of ground where the surface rights are fully owned by EMC-A. The Company seeks the granting of a new mine lease for the Nyngan Scandium Project, based on this new MLA.

The new MLA filing is in direct response to ongoing delays in governmental resolution of a neighboring landowner’s objection to the Company’s 2017 mine lease grant (ML 1763).

Downstream Scandium Products

In February 2011 we announced results of a series of laboratory-scale tests investigating the production of aluminum-scandium master alloys directly from aluminum oxide and scandium oxide feed materials. The overall objective of this research was to demonstrate and commercialize the production of aluminum-scandium master alloy using impure scandium oxide as the scandium source, potentially significantly improving the economics of aluminum-scandium master alloy production. In 2014, the Company announced it applied for a US patent on master alloy production, which is still in the application phase. That patent application addressed scandium master alloys with both aluminum-base and magnesium-base metals.

During the 2015-2017 timeframe, we continued our own internal laboratory-scale investigations into the production of aluminum-scandium master alloys, furthering our understanding of commercial processes, and achievable recoveries. We advanced our abilities to make a standard-grade 2% scandium master alloy product typical of commercially available products offered today.

On March 2, 2017, we announced the signing of a Memorandum of Understanding ("MOU") with Weston Aluminium Pty Ltd. ("Weston") of Chatswood, NSW, Australia. The MOU defines a cooperative commercial alliance to jointly develop the capability to manufacture aluminum-scandium master alloy. The intended outcome of this alliance will be to develop the capability to offer Nyngan Scandium Project aluminum alloy customers scandium in form of Al-Sc master alloy, should customers prefer that product form.

The MOU outlines steps to jointly establish the manufacturing parameters, metallurgical processes, and capital requirements to convert Nyngan Scandium Project scandium product into Master Alloy, on Weston's existing production site in NSW. The MOU does not include a binding contract with commercial terms at this stage, although the intent is to pursue the necessary technical elements to arrive at a commercial contract for conversion of scandium oxide to master alloy, and to do so prior to first mine production from the Nyngan Scandium Project.

On March 5, 2018, the Company announced that it had initiated a pilot scale program at the Alcereco Inc. metallurgical research facilities in Kingston, Ontario, to confirm and refine previous work on the manufacture of aluminum-scandium 2% master alloy (MA). The pilot scale program was intended to confirm the previous bench-scale test work, and to provide necessary process understanding for commercial scale upgrade of Nyngan scandium oxide product to master alloy product.

The pilot program consisted of 5 separate trials on two MA product types, production of MA in various forms, and dross analysis to ascertain scandium recoveries to product. The total mass of master alloy and product variants produced in the program totaled approximately 20kg. The pilot program, as defined for 2018, was completed in December of 2018. Additional pilot scale work to pursue further refinements and specific process optimization has been planned for Q1/Q2 of 2019.

On March 5, 2018, the Company also announced that it has filed for patent protection on certain process refinements for master alloy manufacture that it believes are novel methods, and also on certain product variants that it believes represent novel forms of introducing scandium more directly into aluminum alloys.

Focus on Aluminum Alloy Applications for Scandium Products

The Company is in the process of obtaining sales agreements for scandium products produced from our Nyngan Scandium Project. Our focus is on the use of scandium as an alloying ingredient in aluminum-based products. The specific scandium product forms we intend to sell from the Nyngan project include both scandium oxide (Sc2O3) and aluminum-scandium master alloys (Al-Sc 2%).

Scandium as an alloying agent in aluminum allows for aluminum metal products that are much stronger, more easily weldable and exhibit improved performance at higher temperatures than current aluminum-based materials. This means lighter structures, lower manufacturing costs and improved performance in areas that aluminum alloys do not currently compete.

Aluminum Alloy Research Partner – Alcereco

In 2015, the Company entered into a memorandum of understanding (“MOU”) with Alcereco Inc. of Kingston, Ontario (“Alcereco”), forming a strategic alliance to develop markets and applications for aluminum alloys containing scandium. To further that alliance, and to reinforce the capability of both companies to deliver product developed for scandium aluminum alloy markets, Scandium International and Alcereco also signed an offtake agreement governing sales terms of scandium oxide product (scandia) produced from the Nyngan Scandium Project. The offtake agreement specifies prices, delivery volumes and timeframes for commencement of delivery of scandium oxide product. The offtake agreement does not provide for a mandatory annual minimum purchase volume of scandium oxide by Alcereco, and there is no requirement for payment in lieu of purchase.

The MOU represented keen mutual interest in foundry-based test work on aluminum alloys containing scandium, based on understandings that Alcereco’s team had gained from prior work with Alcan Aluminum, and based on SCY’s twin goals of understanding and identifying quality applications for scandium, and also understanding the scandium value proposition with customers.

During December 2017, the Company revised and renewed the scandium product offtake agreement with Alcereco. The revised agreement extends the deadline for initial production and shipments from the Nyngan Scandium Project from December 1, 2017, to as late as December 1, 2020. The defined sale product was changed to an aluminum scandium 2% master alloy from scandium oxide in the prior agreement. The revised sales agreement covers approximately the same scandium oxide volume as the prior agreement, representing 55% of Nyngan’s initial twelve month forecast production, and approximately 20% of nameplate capacity, as established by the Definitive Feasibility Study. The revised offtake agreement does not provide for a mandatory annual minimum purchase volume of scandium oxide by Alcereco, and there is no requirement for payment in lieu of purchase.

The Company has sponsored research work as contemplated by the MOU with Alcereco and with two other unrelated entities in separate locations. This work develops and documents the improvement in strength characteristics scandium can deliver to aluminum alloys without degrading other key properties. The team has run multiple alloy mix programs where scandium loading is varied, in order to look at response to scandium additions on a cost/benefit basis. This work has been done in the context of industries and applications where these particular alloys are popular today.

These programs are focused on 1000 series, 3000 Series, 5000 Series and 7000 Series Al-Sc alloys, and have served to make independent data and volume samples available for sales efforts.

The results of our research work is positive, and consistent with the body of published literature available today on aluminum scandium alloys. We are observing noteworthy strengthening effects with scandium additions above 0.1%, and dramatic strengthening improvements with additions of 0.35%, while preserving or enhancing other alloy properties and characteristics. We have also demonstrated that altering the combinations of scandium loads and alloy hardening process techniques has significant effect on the final alloy properties, offering the opportunity to tune alloy characteristics to suit specific applications. These findings are considered commercially sensitive, and the data is not intended for public disclosure at this time, although the findings and data are being shared with select potential customers under specific non-disclosure agreement protections, as is deemed relevant to their specific areas of commercial interest.

Letters of Intent

During 2018, the Company announced signing letter of intent (“LOI”) agreements with eight unrelated partnering entities. In each LOI, we have agreed to contribute scandium samples, either in form of scandium master alloy product, or aluminum-scandium alloy product, for trial testing by the partners in their downstream manufacturing applications. Each of the parties to the LOI agreements have agreed to report the parameters and general results of the testing program utilizing these scandium-containing alloys, upon completion of testing. All samples committed by the Company for 2018 delivery, through this LOI program, have been delivered and received, and all but one of the recipients has initiated testing and reporting activity. The one remaining recipient has test work planned for Q1 2019. The Company plans to continue this LOI program of introducing scandium for trial testing by partners through agreements with more potential customers in 2019.

These formal LOI agreements, with distinct industry segment leaders, represent a key marketing program demonstrating precisely how scandium will perform in specific products, and in production-specific environments. Potential scandium customers insist on these sample testing opportunities, directly in their research facilities or on their shop floor, to ensure their full understanding of the impacts, benefits, and costing implications of introducing scandium into their traditional aluminum feedstocks.

The partnering entities in these LOI agreements are set out below:

Austal Ltd. (“Austal”), headquartered in Henderson, Western Australia, (Australia). Austel is a public corporation, listed on the Australian Stock Exchange (ASB.ASX), with shipbuilding facilities in Perth, Australia, Mobile, Alabama (USA), Vung Tau, Vietnam and Balamban, Cebu (Philippines). The company maintains a focus on research and development of emerging maritime technologies and cutting-edge ship designs, and is today a recognized world leader in the design and construction of large aluminum commercial and defense vessels.

Impression Technologies Ltd. (“ITL”), based in Coventry, UK. ITL is a privately held technology company, developing and licensing its advanced aluminum forming technology, Hot Form Quench (“HFQ®”), to automotive, aerospace, rail and electronics industries, globally. ITL manufactures custom parts for customers with its patented HFQ® technology, which enables the single-pass forming of complex, lightweight, high-strength aluminum parts that can't otherwise be similarly formed today.

PAB Coventry Ltd. (“PAB”), based in Coventry, UK. PAB is a privately held manufacturing and prototyping company offering specialty metal parts and design capabilities, serving the automotive, aerospace, defense and HVAC industries. PAB has been a well-known parts and forms supplier to the upper market segment of the British automotive industry for decades.

Eck Industries Inc. (“Eck”), based in Manitowoc, Wisconsin, USA. Eck is a privately held manufacturer of precision sand cast parts, and engineering services. Eck Industries operates a 210,000 sq. ft. facility with over 250 employees, and 110 customers. Customer segments include commercial aircraft parts, automotive and trucking cast parts, military drivetrain casings, marine propulsion system castings, and military aerospace components.

Grainger & Worrall Ltd. (“GW”), based in Shropshire, UK. GW is a privately held manufacturer of precision sand cast parts, and engineering services. GW is a well-recognized precision air-set sand cast parts manufacturer in the UK, specializing in low to intermediate volume cast parts for commercial automotive, motorsports/racing, defense, marine, and aerospace applications.

Gränges AB (“Gränges”), based in Stockholm, Sweden. Gränges is a public company, traded on the NASDAQ Stockholm Stock Exchange (GRNG:OMX), and a large global player in the rolled aluminum products business, with production assets in Europe, USA, and China, and a worldwide customer base, majority concentrated in the USA. Gränges is focused on advanced aluminum materials, and holds a leading global position in rolled products for brazed heat exchangers, which it estimates at 20%.

Ohm & Häner Metallwerk GmbH & Co. GK (“O&H”), based in Olpe, Germany. O&H is a privately held manufacturer of sand cast and gravity die cast parts, using metal alloys, servicing a significant, global customer base. O&H produces over 3,000 individual cast parts, and currently works with over 40 different alloys, primarily aluminum and copper-based alloys.

AML Technologies (“AML”), an Adelaide, Australia based start-up company with proprietary technology for applying aluminum alloys to additive layer manufacturing processes, also commonly referred to as 3D printing.

These LOI agreements are part of a developing strategy by the Company to engage with innovative, research-capable partners, willing to test scandium in their applications. The Company also has similar agreements with other research capable partners who do not wish to be publicly named at this time. We are selecting and approaching these specific partners because we have an understanding, from our commissioned alloy mixing programs, that scandium additions can make valuable contributions to their specific products, and we have the alloy samples to enable an expedient uptake on that validation. The scandium market for aluminum alloys needs to be built, and that construction should be seen as underway in the most direct sense. The Company plans to conduct further application-specific programs, in pursuit of sales contracts with quality customers across numerous industry segments, predominantly existing aluminum alloy consumers.

Nyngan Scandium Project - Planned Activities for 2019-2020

The following steps are planned for Nyngan during the 2019 and 2020 calendar years:

• Complete master alloy pilot trials and optimization work in Q2 2019,
• Pursue additional offtake agreements in support of planned future scandium sales,
• Seek project construction financing for the Nyngan Scandium Project in Q4 2019/Q1 2020
• Commence site construction in 2020, with anticipated completion over 14 months, and
• Initiate project commissioning in early 2021, with product available for sale by Q2 2021.

Other Properties Review

Honeybugle Scandium Property (NSW, Australia)

On April 2, 2014, the Company announced that it had secured a 100% interest in an exploration license (EL 7977) covering 34.7 square kilometers in New South Wales, Australia. The license area, we call the ‘Honeybugle Scandium Property’, is located approximately 24 kilometers west-southwest from the Company’s Nyngan Scandium Project and approximately 36 kilometers southwest from the town of Nyngan, NSW.

Exploration rights for the Honeybugle Scandium Property include certain minimum expenditure requirements. The Company intends to fulfill those minimum expenditure requirements.

Honeybugle Drill Results

On May 7, 2014, the Company announced completion of an initial program of 30 air core (“AC”) drill holes on the property, specifically at the Seaford anomaly, targeting scandium (Sc). Results on 13 of these holes are shown in detail, in the table below. These holes suggest the potential for scandium mineralization on the property similar to Nyngan.

Highlights of initial drilling program results include the following:

• The highest 3-meter intercept graded 572 ppm scandium (hole EHAC 11),

• EHAC 11 also generated two additional high grade scandium intercepts, grading 510 ppm and 415 ppm, each over 3 meters,

• The program identified a 13-hole cluster which was of particular interest; intercepts on these 13 holes averaged 270 ppm scandium over a total 273 meters, at an average continuous thickness of 21 meters per hole, representing a total of 57% (354 meters) of total initial program drilling,

• The 13 holes produced 29 individual (3-meter) intercepts over 300 ppm, representing 31% of the mineralized intercepts in the 273 meters of interest, and

• This initial 30-hole AC exploratory drill program generated a total of 620 meters of scandium drill/assay results, over approximately 1 square kilometer on the property.

Kiviniemi Scandium Property (Eastern Finland Province, Finland)

On September 25, 2017, the Company announced that its wholly-owned subsidiary company, Scandium International Mining Corp., Norway AS, was granted a reservation on an Exploration License for the Kiviniemi Scandium property in central Finland from the Finnish regulatory body governing mineral exploration and mining in Finland. The exploration license was subsequently granted during August 2018.

The Geological Survey of Finland (“GTK”) conducted airborne survey work on the area in 1986, conducted exploration drilling on the property in 2008-2010, and published those program results on their public GTK website in 2016. The Company’s Exploration License area is approximately 24.6 hectares (0.25 square kilometer), identical to the historic GTK exploration license on the property.

Highlights

• Kiviniemi property previously identified for scandium and explored by GTK,
• Property is a high iron content, medium grade scandium target, located on surface, with on-site upgrade potential,
• Early resource upgrade work done for GTK promising, confirmed by SCY,
• Property is all-weather accessible, close to infrastructure, and
• Finland location is mining-friendly and ideally suited to EU customer markets.

Kiviniemi Summary

The Kiviniemi property represents a medium grade scandium resource target that has remained unrecognized and overlooked by exploration work, largely due to the absence of the more commonly sought-after minerals in the region, specifically copper, nickel and cobalt. We believe that Kiviniemi is Europe’s largest underdeveloped primary scandium resource.

The target has benefited significantly from valuable early exploration work by the GTK, which has advanced the property to a stage where successful metallurgical investigations may prove value that offsets grade concerns. SCY estimates roughly US$2M of work value has been directed at this property to date, including field work, drilling programs, assay work, overheads, and metallurgical upgrade studies, but firm numbers are not available.

We intend to undertake a limited drill program to augment the existing GTK data, and provide more sample material for metallurgical test work programs to define economic site upgrade possibilities on the scandium mineralization observed to date.

Other Developments – First Quarter 2019

Letters of Intent: During March 2019, we announced signing a letter of intent agreement (“LOI”) with Bronze-Alu Group (“BAL”), based in La Couture-Boussey, northern France. BAL is a privately held manufacturer of precision high-pressure die cast parts, and offers prototyping, machining, finishing and engineering services, employing both aluminum and copper-based alloys. BAL exports approximately 80% of its products to customers outside of France.

Pursuant to the LOI, the Company agreed to contribute aluminum-scandium master alloy 2%, for mixing and trial-testing of alloys by BAL, in their commercially available product lines, primarily in the automotive and aerospace sectors. The test work will be undertaken at BAL’s production facilities in La Couture-Boussey, at small production scale. Bronze-Alu intends to report select results of the testing program utilizing their scandium-containing alloys, as does SCY, upon completion of the testing period.

Private Placements: On March 21, 2019, the Company completed a private placement of 5,926,301 shares at C$0.18 per share for gross proceeds of C$1,066,734. The primary investor was Rothschild Asset Management, but the equity placement also reflects a unanimous participation from the Company’s Board members. No commissions or fees were paid on the transaction.

Operating results - Revenues and Expenses

The Company’s results reflect lower operating costs due to the decrease in stock-based compensation (a non-cash expense). Excluding non-cash costs, expenditures were down $69,873 due to lower professional fees, travel expenditures, salaries and general and admin expenses. These lower costs were slightly offset by higher consulting fees.

Summary of quarterly results

A summary of the Company’s quarterly results are shown below at Table 10.

Table 10. Quarterly Results Summary

	2019	2018				2017
	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Net Sales	-	-	-	-	-	-	-	-
Net Income
(Loss)	(332,766)	(543,316)	(461,781)	(626,398)	(1,329,613)	(563,452)	(409,069)	(490,303)
attributable to
Scandium
Mining Corp.
Basic and
diluted
Net Income	(0.00)	(0.00)	(0.00)	(0.00)	(0.01)	(0.00)	(0.00)	(0.00)
(Loss) per
share
attributable to
Scandium
Mining Corp.

Results of Operations for the three months ended March 31, 2019

The net loss for the quarter was $332,766, a decrease of $996,847 from $1,329,613 in the same quarter of the prior year. Details of the individual items contributing to the decreased net loss are set out below at Table 11:

Table 11. Variance Analysis for Net Loss

Q1 2018 vs. Q1 2019 - Variance Analysis
Item	Variance
	Favourable /	Explanation
	(Unfavourable)
Stock-based compensation	$907,442	In Q1 2018, the Company issued 6,500,000 stock options of which the majority vested immediately. In the corresponding quarter of 2019, no stock options were issued resulting in this favourable expense.
Salaries and benefits	$44,786	The amount paid in Q1 of 2019 is lower due to the resignation of a senior company officer in June of 2018. The position was not replaced.
Professional fees	$25,197	Q1 2018 costs include legal fees pertaining to closing of the Exchange Agreement with SIL and conversion of SIL’s 20% interest in EMC-A to shares of SCY.
Foreign exchange	$19,951	The impact of strengthening Canadian and Australian currency lead to this favourable variance in Q1 of 2019 when compared to Q1 2018 when currency fluctuations were moving in opposite directions.
Travel and entertainment	$12,288	Less travel in Q1 2019 was due to less trips taken to Europe and Australia to promote the marketing of scandium alloys.
Exploration	$9,390	Both quarters of 2019 and 2018 reflect the receipt of Australian R&D credits. In 2019 lower costs for actual exploration resulted in this positive variance.
General and administrative	$5,890	The decrease in general and administrative costs in the current quarter is due to generally lower activity in 2019 when compared to Q1 of 2018.
Insurance	$(239)	The slightly higher cost in Q1 2019 is due to overall increases in insurance premiums for the Company’s operations.
Amortization	$(419)	In the second half of 2018, the Company replaced its computer servers in the Sparks, Nevada office. The higher amortization expense in 2019 is due to this expenditure.
Consulting	$(27,439)	The Company hired new consultants for marketing scandium in America in the latter half of 2018. Q1 2018 does not include these costs hence the lower charges in the same period one year ago.

Cash flow discussion for the three-month period ended March 31, 2019 compared to March 31, 2018

The cash outflow for operating activities was $406,598, a decrease of $60,932 (March 31, 2018 – $467,530), due to lower operating costs as described in the variance analysis.

Cash inflows from financing activities of 896,163 reflect greater inflow from option exercises of $96,680 when compared to Q1 2018, which was partially offset by lower inflow from the private placements of $11,414, resulting in an increase of $69,194 when compared to Q1 2018 of $826,969.

Financial Position

Cash

The Company’s cash position increased during the three-month period by $489,565 to $774,322 (December 31, 2018 - $284,757) due to a private placement and option exercises, together totaling $896,163.

Prepaid expenses and receivables

Prepaid expenses and accounts receivable decreased by $8,493 to $30,458 due to lower expenditures in Australia and Canada where goods and services taxes are levied (December 31, 2018 - $38,951).

Property and equipment

Property and equipment consist of computer equipment at the Sparks, Nevada office. The decrease of $577 to $8,697 (December 2018 - $9,274) is due to amortization of that computer equipment in the quarter.

Mineral interests

Mineral interests remained the same at $704,053.

Accounts payable, accrued liabilities and accounts payable with related parties

Accounts payable has decreased by $96,018 to $50,568 (December 2018– $146,586).

Capital Stock

Capital stock increased by $997,261 to $109,241,572 due to a private placement occurring in the quarter and the exercise of stock options (December 31, 2018 - $108,244,311).

Additional paid-in capital decreased by $87,982, to $5,587,830 (December 31, 2018 - $5,675,812) as a result of the exercise of stock options which was partially offset by the expensing of stock options.

Liquidity and Capital Resources

At March 31, 2019, the Company had a working capital of $754,212 including cash of $774,322 as compared to a working capital of $177,122 including cash of $284,757 at December 31, 2018.

At March 31, 2019, the Company had a total of 27,610,000 stock options exercisable between CAD$0.10 and CAD$0.60 that have the potential upon exercise to generate a total of C$5,386,350 in cash over the next five years. There is no assurance that these securities will be exercised. The Company’s continued development is contingent upon its ability to raise sufficient financing both in the short and long term. There are no guarantees that additional sources of funding will be available to the Company; however, management is committed to pursuing all possible sources of financing in order to execute its business

plan. The Company continues its cost control measures to conserve cash to meet its operational obligations.

Outstanding share data

At the date of this report, the Company has 311,782,595 issued and outstanding common shares and 27,990,000 stock options currently outstanding at a weighted average exercise price of CAD$0.20.

Off-balance sheet arrangements

At March 31, 2019, the Company had no material off-balance sheet arrangements such as guarantee contracts, contingent interest in assets transferred to an entity, derivative instruments obligations or any obligations that trigger financing, liquidity, market or credit risk to the Company.

Transactions with related parties

During the 3-month period ended March 31, 2019, the Company expensed $Nil for stock-based compensation for stock options issued to Company directors. During the 3-month period ended March 31, 2018, the Company expensed $695,405 for stock-based compensation for stock options issued to the Company’s directors.

During the 3-month period ended March 31, 2019, the Company paid a consulting fee of $25,500 for one of its directors. During the 3-month period ended March 31, 2018, the Company paid a consulting fee of $25,500 for one of its directors.

As at March 31, 2019, the Company owed $15,390 to various directors and officers of the Company. (December 31, 2018 - $Nil)

Proposed Transactions

There are no proposed transactions outstanding other than as disclosed.

Critical Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on past experience, industry trends and known commitments and events. By their nature, these estimates are subject to measurement uncertainty and the effects on the financial statements of changes in such estimates in future periods could be significant. Actual results will likely differ from those estimates.

Stock-based compensation

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options and compensatory warrants granted. This model is subject to various assumptions. The assumptions the Company makes will likely change from time to time. At the time the fair value is determined, the methodology the Company uses is based on historical information, as well as anticipated future events. The assumptions with the greatest impact on fair value are those for estimated stock volatility and for the expected life of the instrument.

Future income taxes

The Company accounts for tax consequences of the differences in the carrying amounts of assets and liabilities and their tax bases using tax rates expected to apply when these temporary differences are expected to be settled. When the future realization of income tax assets does not meet the test of being more likely than not to occur, a valuation allowance in the amount of the potential future benefit is taken and no future income tax asset is recognized. The Company has taken a valuation allowance against all such potential tax assets.

Mineral properties and exploration and development costs

The Company capitalizes the costs of acquiring mineral rights at the date of acquisition. After acquisition, various factors can affect the recoverability of the capitalized costs. The Company’s recoverability evaluation of our mineral properties and equipment is based on market conditions for minerals, underlying mineral resources associated with the assets and future costs that may be required for ultimate realization through mining operations or by sale. The Company is in an industry that is exposed to a number of risks and uncertainties, including exploration risk, development risk, commodity price risk, operating risk, ownership and political risk, funding and currency risk, as well as environmental risk. Bearing these risks in mind, the Company has assumed recent world commodity prices will be achievable. The Company has considered the mineral resource reports by independent engineers on the Nyngan Scandium Project in considering the recoverability of the carrying costs of the mineral properties. All of these assumptions are potentially subject to change, out of our control, however such changes are not determinable. Accordingly, there is always the potential for a material adjustment to the value assigned to mineral properties and equipment.

Recent Accounting Pronouncements

Accounting Standards Update 2019-01 – Leases (Topic 842) Codification Improvements - Issue 3 Transition Disclosures Related to Topic 250, Accounting Changes and Error Corrections. The amendments in this Update clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-13 – Fair Value Measurement (Topic 840) Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-11 - Leases (Topic 842) Targeted Update. This accounting pronouncement is an update to Accounting Standard 2016-02 (see below). This standard allows for an additional (and optional) transition method. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted the election to recognize short-term leases through profit or loss, with no material effect to the consolidated financial statements.

Accounting Standards Update 2018-07 – Compensation – Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. This accounting pronouncement deals with simplification of share-based accounting in efforts to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation — Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has adopted this policy with no material effect to the consolidated financial statements.

Accounting Standards Update 2016-02 - Leases (Topic 842). This accounting pronouncement allows lessees to make an accounting policy election to not recognize a lease asset and liability for leases with a term of 12 months or less and that do not have a purchase option that is expected to be exercised. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted this policy which had no material effect to the consolidated financial statements.

Financial instruments and other risks

The Company’s financial instruments consist of cash, receivables, accounts payable, accounts payable with related parties, accrued liabilities and promissory notes payable. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from its financial instruments. The fair values of these financial instruments approximate their carrying values unless otherwise noted. The Company has its cash primarily in three commercial banks: (i) one in Vancouver, British Columbia, Canada, (ii) one in Mackay, Queensland, Australia, and (iii) one in Chicago, Illinois, United States.

Information Regarding Forward-Looking Statements

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contain certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of metals, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Scandium International to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the mining industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of metals. While Scandium International has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scandium International expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure controls and procedures

The Company’s management is responsible for establishing and maintaining adequate disclosure controls and procedures. The Company’s management, including our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on that evaluation, the principal executive officer and principal financial officer concluded that as of the end of the period covered by this report, the Company has maintained effective disclosure controls and procedures in all material respects, including those necessary to ensure that information required to be disclosed in reports filed or submitted with the SEC (i) is recorded, processed, and reported within the time periods specified by the SEC, and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow for timely decision regarding required disclosure.

Changes in Internal Control

There have been no changes in internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

On February 6th, 2019, the Company was served a Summons and named in a lawsuit brought by the Law Firm of Nelson, Keane and Hemmingway, on behalf of Plaintiff, Owen Bernard Carter, a landowner in Nyngan, NSW. The lawsuit named the NSW Minister for Resources as First Defendant, based on the improper grant of a Mining Lease affecting Mr. Carter’s land. The lawsuit also named the Secretary of the Department of Planning and Industry as Second Defendant, and EMC Metals Australia Pty Ltd (EMC-A) as Third Defendant. EMC-A is the Company’s subsidiary holding the disputed Mining Lease, ML 1763, related to the Nyngan Scandium Project.

The lawsuit claims NSW governmental officials improperly granted EMC-A a mining lease in 2017, by not properly considering a 2016 “Agricultural Land” objection made by Mr. Carter against the underlying mining lease application, MLA 531. Counsel for the Government defendants conceded the point, and notified EMC-A that the 2017 decision to grant ML 1763 would be determined an invalid decision. Proceedings were recommended by the Court to be delayed for 3 months, to allow additional time for the Department of Planning and Environment to make a determination on the validity of the landowner objection. The plaintiff was not satisfied with elements of the Court-recommended plan, resulting in additional hearings. These ongoing hearings focused on when the Department would officially update its public record, showing ML 1763 invalid. No claim for compensation has been made against EMC-A. At this point, EMC-A has no active part in ongoing Court proceedings, and has been excused from further attendance.

As of the effective date of this 10Q, the Department of Planning and Environment has not updated the official record on ML 1763, changing its status from granted to invalid, nor has it given a date by which it will plan to rule on the validity of the landowner objection.

In May 2019 we announced filing a new mine lease application (“MLA 568”) with the Department, related to the Nyngan Scandium Project. The new application covers 371 hectares of ground where the surface rights are fully owned by EMC-A. The Company seeks the granting of a new mine lease for the Nyngan Scandium Project, based on this new MLA.

The new MLA filing is in direct response to ongoing delays in governmental resolution of a neighboring landowner’s objection to the Company’s 2017 mine lease grant (ML 1763), and the subject of this lawsuit.

Please refer to more a detailed discussion of the mine lease grant and landowner objection contained in Item 2 – Principle Properties Review, Nyngan Scandium Project in this Form 10Q.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

31.1	Certification of the Principal Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the U. S. Securities Exchange Act of 1934 (filed herewith)
31.2	Certification of the Principal Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the U. S. Securities Exchange Act of 1934 (filed herewith)
32.1	Section 1350 Certification of the Principal Executive Officer (filed herewith)
32.2	Section 1350 Certification of the Principal Financial Officer (filed herewith)

101 Financial Statements from the Quarterly Report on Form 10-Q of the Company for the three months ended March 31, 2019, formatted in XBRL (filed herewith)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 10, 2019

SCANDIUM INTERNATIONAL MINING CORP.

(Registrant)

By:	/s/ George Putnam
	George Putnam
	Principal Executive Officer
By:	/s/ Edward Dickinson
	Edward Dickinson
	Principal Financial Officer

EX-31.1

Exhibit 31.1

CERTIFICATION
PURSUANT TO RULE 13a-14(a) OR 15d-14(a)
OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

I, George Putnam, certify that:

1.	I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2019 of Scandium International Mining Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the annual report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s control over financial reporting.

Date: May 10, 2019	By:	/s/ George Putnam
		George Putnam
		Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION
PURSUANT TO RULE 13a-14(a) OR 15d-14(a)
OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

I, Edward Dickinson, certify that:

1.	I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2019 of Scandium International Mining Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the annual report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s control over financial reporting.

Date: May 10, 2019	By:	/s/ Edward Dickinson
		Edward Dickinson
		Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350
AND RULE 13a-14(b) OR RULE 15d-14(b)
OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Scandium International Mining Corp. (the "Company") on Form 10-Q for the fiscal quarter ended March 31, 2019 (the "Report"), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	/s/ George Putnam
	George Putnam
	Principal Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350
AND RULE 13a-14(b) OR RULE 15d-14(b)
OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Scandium International Mining Corp. (the "Company") on Form 10-Q for the fiscal quarter ended March 31, 2019 (the "Report"), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 10, 2019	/s/ Edward Dickinson
	Edward Dickinson
	Principal Financial Officer

XML

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	Mar. 31, 2019	May 09, 2019
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Trading Symbol	scy
Entity Registrant Name	SCANDIUM INTERNATIONAL MINING CORP.
Entity Central Index Key	0001408146
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		311,782,595
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false

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CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current
Cash	$ 774,322	$ 284,757
Prepaid expenses and receivables	30,458	38,951
Total Current Assets	804,780	323,708
Reclamation bond (Note 4)	11,444	11,444
Equipment (Note 3)	8,697	9,274
Mineral property interests (Note 4)	704,053	704,053
Total Assets	1,528,974	1,048,479
Current
Accounts payable and accrued liabilities	35,178	146,586
Accounts payable with related parties (Note 5)	15,390
Total Liabilities	50,568	146,586
Equity
Capital stock (Note 6) (Authorized: Unlimited number of common shares; Issued and outstanding: 311,782,595 (2018 ? 304,781,294))	109,241,572	108,244,311
Treasury stock (Note 7) (1,033,333 common shares) (2018 ? 1,033,333)	(1,264,194)	(1,264,194)
Additional paid in capital (Note 6)	5,587,830	5,675,812
Accumulated other comprehensive loss	(853,400)	(853,400)
Deficit	(111,233,402)	(110,900,636)
Total Equity	1,478,406	901,893
Total Liabilities and Equity	$ 1,528,974	$ 1,048,479

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CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares	Mar. 31, 2019	Dec. 31, 2018
Common Stock, Shares, Issued	311,782,595	304,781,294
Common Stock, Shares, Outstanding	311,782,595	304,781,294
Treasury stock, shares	1,033,333	1,033,333

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
EXPENSES
Amortization (Note 3)	$ 577	$ 158
Consulting	95,618	68,179
Exploration (recovery)	(26,184)	(16,794)
General and administrative	94,492	100,382
Insurance	7,584	7,345
Professional fees	29,204	54,401
Salaries and benefits	114,109	158,895
Stock-based compensation (Note 6)	13,116	920,558
Travel and entertainment	13,731	26,019
Loss from Operations	(342,247)	(1,319,143)
Foreign exchange gain (loss)	9,481	(10,470)
Loss and comprehensive loss for the period	$ (332,766)	$ (1,329,613)
Basic and diluted loss per common share (in dollars per share)	$ 0.00	$ 0.01
Weighted average number of common shares outstanding - basic and diluted (in shares)	305,571,161	292,740,146

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)	3 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period	$ (332,766)	$ (1,329,613)
Items not affecting cash:
Amortization	577	158
Stock-based compensation	13,116	920,558
Changes in non-cash working capital items:
Decrease (increase) in prepaid expenses and receivables	8,493	(58,951)
(Decrease) increase in accounts payable, accrued liabilities and accounts payable with related parties	(96,018)	318
Net Cash Provided by Used in Operating Activities	(406,598)	(467,530)
CASH FLOWS FROM FINANCING ACTIVITIES
Common shares issued	799,483	810,898
Options exercised for common shares	96,680	16,071
Net Cash Provided by Used in Financing Activities	896,163	826,969
Change in cash during the period	489,565	359,439
Cash, beginning of period	284,757	343,434
Cash, end of period	774,322	702,873
Cash paid during the 3 month period for interest	0	0
Cash paid during the 3 month period for taxes	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)	Capital Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Deficit [Member]	Total
Beginning Balance at Dec. 31, 2017	$ 106,468,869	$ 4,617,484	$ (1,264,194)	$ (853,400)	$ (107,939,528)	$ 1,029,528
Beginning Balance (Shares) at Dec. 31, 2017	291,970,239
Private placement	$ 810,898					810,898
Private placement, Shares	5,729,167
Options exercised	$ 19,964	(3,893)				16,071
Options exercised (Shares)	200,000
Stock-based compensation		920,558				920,558
Loss for the period					(332,766)	(1,329,613)
Ending Balance at Mar. 31, 2018	$ 107,299,731	5,534,149	(1,264,194)	(853,400)	(109,269,141)	1,447,145
Ending Balance (Shares) at Mar. 31, 2018	297,899,406
Beginning Balance at Dec. 31, 2018	$ 108,244,311	5,675,812	(1,264,194)	(853,400)	(110,900,636)	901,893
Beginning Balance (Shares) at Dec. 31, 2018	304,781,294
Private placement	$ 799,483					799,483
Private placement, Shares	5,926,301
Options exercised	$ 197,778	(101,098)				96,680
Options exercised (Shares)	1,075,000
Stock-based compensation		13,116				13,116
Loss for the period					(332,766)	(332,766)
Ending Balance at Mar. 31, 2019	$ 109,241,572	$ 5,587,830	$ (1,264,194)	$ (853,400)	$ (111,233,402)	$ 1,478,406
Ending Balance (Shares) at Mar. 31, 2019	311,782,595

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NATURE AND CONTINUANCE OF OPERATIONS

3 Months Ended

Mar. 31, 2019

NATURE AND CONTINUANCE OF OPERATIONS [Text Block]

1.	NATURE AND CONTINUANCE OF OPERATIONS
	Scandium International Mining Corp. (the “Company”) is a specialty metals and alloys company focusing on scandium and other specialty metals.
	The Company was incorporated under the laws of the Province of British Columbia, Canada in 2006. The Company currently trades on the Toronto Stock Exchange under the symbol “SCY”.
	The Company’s focus is on the exploration and evaluation of its specialty metals assets, specifically the Nyngan scandium deposit located in New South Wales, Australia. The Company is an exploration stage company and anticipates incurring significant additional expenditures prior to production at any and all of its properties.
	These condensed consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying values in the normal course of business for the foreseeable future. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.
	The Company currently earns no operating revenues and will require additional capital in order to advance the Nyngan property. The Company’s ability to continue as a going concern is uncertain and is dependent upon the generation of profits from mineral properties, obtaining additional financing and maintaining continued support from its shareholders and creditors. These are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. In the event that additional financial support is not received or operating profits are not generated, the carrying values of the Company’s assets may be adversely affected.

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2019

Business Description and Basis of Presentation [Text Block]

2.	BASIS OF PRESENTATION
	Basis of presentation
	The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries with all significant intercompany transactions eliminated. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 and with our Annual Report on Form 10-K filed with the SEC on March 4, 2019. Operating results for the three- month period ended March 31, 2019 may not necessarily be indicative of the results for the year ending December 31, 2019.
	These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp. Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (EMC-A”).
	Use of estimates
	The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.
	The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval.
	Fair value of financial assets and liabilities
	The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.
	The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.
	Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for- trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

Financial instruments, including receivables, accounts payable and accrued liabilities, and accounts payable with related parties are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments.

The Company has no leases with a term of greater than 12 months. Short term lease expenses totaled $6,966 during the quarter ended March 31, 2019 and $6,699 during the quarter ended March 31, 2018.

The following table presents information about the assets that are measured at fair value on a recurring basis as at March 31, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

				Quoted Prices		Significant Other		Significant
		March 31,		in Active Markets		Observable Inputs		Unobservable Inputs
		2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash	$	774,322	$	774,322	$	—	$	—
Total	$	774,322	$	774,322	$	—	$	—

The carrying value of receivables, accounts payable and accrued liabilities, and accounts payable with related parties approximate their fair value due to their short-term nature.

The fair value of cash is determined through market, observable and corroborated sources.

    Recently Adopted and Recently Issued Accounting Standards

Accounting Standards Update 2019-01 – Leases (Topic 842) Codification Improvements - Issue 3 Transition Disclosures Related to Topic 250, Accounting Changes and Error Corrections. The amendments in this Update clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-13 – Fair Value Measurement (Topic 840) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-11 - Leases (Topic 842) Targeted Update. This accounting pronouncement is an update to Accounting Standard 2016-02 (see below). This standard allows for an additional (and optional) transition method. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted the election to recognize short-term leases through profit or loss, with no material effect to the consolidated financial statements.

Accounting Standards Update 2018-07 – Compensation – Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. This accounting pronouncement deals with simplification of share-based accounting in efforts to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has adopted this policy with no material effect to the consolidated financial statements.

Accounting Standards Update 2016-02 - Leases (Topic 842). This accounting pronouncement allows lessees to make an accounting policy election to not recognize a lease asset and liability for leases with a term of 12 months or less and that do not have a purchase option that is expected to be exercised. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted this policy which had no material effect to the consolidated financial statements.

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EQUIPMENT

3 Months Ended

Mar. 31, 2019

EQUIPMENT [Text Block]

3. EQUIPMENT

		December 31,		Additions
		2018 Net Book		(disposals)					March 31, 2019
		Value		(write-offs)		Amortization			Net Book Value
Computer equipment	$	9,274	$	-	$	(577	)	$	8,697
		December 31,		Additions					December 31,
		2017 Net Book		(disposals)					2018 Net Book
		Value		(write-offs)		Amortization			Value
Computer equipment	$	1,947	$	8,377	$	(1,050	)	$	9,274

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MINERAL PROPERTY INTERESTS

3 Months Ended

Mar. 31, 2019

MINERAL PROPERTY INTERESTS [Text Block]

4. MINERAL PROPERTY INTERESTS

		Scandium and
March 31, 2019		other
Balance, March 31, 2019, December 31, 2018	$	704,053

Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral property interests. The Company has investigated title to all of its mineral property interests and, to the best of its knowledge, title to all of its properties is in good standing.

SCANDIUM PROPERTIES

Nyngan, New South Wales Property

The Company holds a 100% interest in the Nyngan property in New South Wales, Australia (NSW). A definitive feasibility study was completed on the property in fiscal 2016. During December 2017 the Company revised and renewed a scandium product offtake agreement for delivery of scandium-based product upon availability from mine production.

In April 2019, the Company received notice from the New South Wales Department of Planning and Environment (the “Department”) that, due to a procedural issue within the Department, the Company’s Mine Lease Grant, (“ML 1763”), pertaining to the Nyngan Scandium Project, previously issued by the Department, is invalid. The Company is seeking resolution to the status of ML 1763 and maintains its lease application in good standing.

Royalties attached to the Nyngan property include, a 0.7% royalty on gross mineral sales on the property, a 1.5% Net Profits Interest royalty to private parties involved with the early exploration on the property, and a 1.7% Net Smelter Returns royalty payable for 12 years after production commences. Another revenue royalty is payable to private interests of 0.2%, subject to a $370,000 cap. A NSW minerals royalty will also be levied on the project, subject to negotiation, currently 4% on revenue.

Honeybugle property, Australia

The Company holds a 100% interest in the Honeybugle property.

Kiviniemi Scandium Property Finland

In August 2018, the Company was granted an Exploration License for the Kiviniemi Scandium Property in central Finland from the Finnish regulatory body governing mineral exploration and mining in Finland. As of March 31, 2019, no funds have been capitalized for this property. During fiscal 2018, a reclamation bond of $11,444 (€10,000) was placed.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

RELATED PARTY TRANSACTIONS [Text Block]

5.	RELATED PARTY TRANSACTIONS
	During the 3-month period ended March 31, 2019, the Company expensed $Nil for stock-based compensation for stock options issued to Company directors. During the 3-month period ended March 31, 2018, the Company expensed $695,405 for stock- based compensation for stock options issued to Company directors.
	During the 3-month period ended March 31, 2019, the Company paid a consulting fee of $25,500 to one of its directors. During the 3-month period ended March 31, 2018, the Company paid a consulting fee of $25,500 to one of its directors.
	As at March 31, 2019, the Company owed $15,390 to various directors and officers of the Company. (December 31, 2018 - $Nil)

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CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL

3 Months Ended

Mar. 31, 2019

CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL [Text Block]

6.	CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL
	Private placements
	On March 21, 2019, the Company issued 5,926,301 common shares at a value of C$0.18 per common share for total proceeds of C$1,066,734 ($799,483).
	On March 2, 2018, the Company issued 5,729,167 common shares at a value of C$0.18 per common share for total proceeds of C$1,031,250 ($810,898).
	Stock Options
	The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants and the number of options granted under the Plan shall not exceed 15% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors.
	Stock option transactions are summarized as follows:

	Stock Options
				Weighted average
	Number			exercise price in Canadian $
Outstanding, December 31, 2017	23,585,000		$	0.18
Granted	6,850,000			0.225
Exercised	(1,010,000	)		0.10
Expired	(360,000	)		0.27
Outstanding, December 31, 2018	29,065,000			0.194
Exercised	(1,075,000	)		0.12
Outstanding, March 31, 2019	27,990,000		$	0.197
Number currently exercisable	27,610,000		$	0.196

As at March 31, 2019, incentive stock options were outstanding as follows:

	Number of	Number of	Exercise
	Options	Options	Price in	Expiry Date
	Outstanding	Exercisable	Canadian $
Options
	2,300,000	2,300,000	0.120	July 25, 2019
	200,000	200,000	0.100	December 30, 2019
	3,450,000	3,450,000	0.140	April 17, 2020
	250,000	250,000	0.600	May 11, 2020
	400,000	400,000	0.115	August 28, 2020
	4,300,000	4,300,000	0.100	November 5, 2020
	4,850,000	4,850,000	0.130	February 8, 2021
	400,000	400,000	0.200	June 14, 2021
	4,980,000	4,980,000	0.370	February 21, 2022
	250,000	150,000	0.300	October 6, 2022
	6,260,000	5,980,000	0.225	January 19, 2023
	350,000	350,000	0.185	August 30,2023
	27,990,000	27,610,000

As at March 31, 2019 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $594,500 (December 31, 2018 - $1,084,994).

 Stock-based compensation

During the 3-month period ended March 31, 2019, the Company recognized stock-based compensation of $13,116 (March 31, 2018 - $920,558) in the statement of operations and comprehensive loss. There were no stock options granted during the 3-month period ended March 31, 2019 (March 31, 2018 – 6,500,000).

The weighted average fair value of the options granted in the quarter was C$ Nil (2018 - C$0.192) .

The fair value of all compensatory options granted is estimated on grant date using the Black-Scholes option pricing model. The weighted average assumptions used in calculating the fair values of stock options granted in the 3-month period ended March 31 are as follows:

	2019	2018
Risk-free interest rate	N/A	1.96%
Expected life	N/A	5 years
Volatility	N/A	127.81%
Forfeiture rate	N/A	N/A
Dividend rate	N/A	N/A

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TREASURY STOCK

3 Months Ended

Mar. 31, 2019

TREASURY STOCK [Text Block]

7. TREASURY STOCK

	Number		Amount
Treasury shares, March 31, 2019 and December 31 2018	1,033,333	$	1,264,194
	1,033,333	$	1,264,194

Treasury shares comprise shares of the Company which cannot be sold without the prior approval of the TSX.

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SEGMENTED INFORMATION

3 Months Ended

Mar. 31, 2019

SEGMENTED INFORMATION [Text Block]

8.	SEGMENTED INFORMATION
	The Company’s mineral properties are located in Australia. The Company’s capital assets’ geographic information is as follows:

March 31, 2019		Australia		United States		Total
Equipment	$	-	$	8,697	$	8,697
Mineral property interests		704,053		-		704,053
	$	704,053	$	8,697	$	712,750
December 31, 2018		Australia		United States		Total
Equipment	$	-	$	9,274	$	9,274
Mineral property interests		704,053		-		704,053
	$	704,053	$	9,274	$	713,327

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Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Basis of presentation [Policy Text Block]

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries with all significant intercompany transactions eliminated. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 and with our Annual Report on Form 10-K filed with the SEC on March 4, 2019. Operating results for the three- month period ended March 31, 2019 may not necessarily be indicative of the results for the year ending December 31, 2019.

These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp. Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (EMC-A”).

Use of estimates [Policy Text Block]

Use of estimates

The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.

The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval.

Fair value of financial assets and liabilities [Policy Text Block]

Fair value of financial assets and liabilities

The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.

Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for- trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

Financial instruments, including receivables, accounts payable and accrued liabilities, and accounts payable with related parties are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments.

The Company has no leases with a term of greater than 12 months. Short term lease expenses totaled $6,966 during the quarter ended March 31, 2019 and $6,699 during the quarter ended March 31, 2018.

The following table presents information about the assets that are measured at fair value on a recurring basis as at March 31, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

				Quoted Prices		Significant Other		Significant
		March 31,		in Active Markets		Observable Inputs		Unobservable Inputs
		2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash	$	774,322	$	774,322	$	—	$	—
Total	$	774,322	$	774,322	$	—	$	—

The carrying value of receivables, accounts payable and accrued liabilities, and accounts payable with related parties approximate their fair value due to their short-term nature.

The fair value of cash is determined through market, observable and corroborated sources.

Recently Adopted and Recently Issued Accounting Standards [Policy Text Block]

Recently Adopted and Recently Issued Accounting Standards

Accounting Standards Update 2019-01 – Leases (Topic 842) Codification Improvements - Issue 3 Transition Disclosures Related to Topic 250, Accounting Changes and Error Corrections. The amendments in this Update clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-13 – Fair Value Measurement (Topic 840) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statements.

Accounting Standards Update 2018-11 - Leases (Topic 842) Targeted Update. This accounting pronouncement is an update to Accounting Standard 2016-02 (see below). This standard allows for an additional (and optional) transition method. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted the election to recognize short-term leases through profit or loss, with no material effect to the consolidated financial statements.

Accounting Standards Update 2018-07 – Compensation – Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. This accounting pronouncement deals with simplification of share-based accounting in efforts to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has adopted this policy with no material effect to the consolidated financial statements.

Accounting Standards Update 2016-02 - Leases (Topic 842). This accounting pronouncement allows lessees to make an accounting policy election to not recognize a lease asset and liability for leases with a term of 12 months or less and that do not have a purchase option that is expected to be exercised. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted this policy which had no material effect to the consolidated financial statements.

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BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Fair Value, by Balance Sheet Grouping [Table Text Block]

				Quoted Prices		Significant Other		Significant
		March 31,		in Active Markets		Observable Inputs		Unobservable Inputs
		2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash	$	774,322	$	774,322	$	—	$	—
Total	$	774,322	$	774,322	$	—	$	—

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EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Property, Plant and Equipment [Table Text Block]

		December 31,		Additions
		2018 Net Book		(disposals)					March 31, 2019
		Value		(write-offs)		Amortization			Net Book Value
Computer equipment	$	9,274	$	-	$	(577	)	$	8,697
		December 31,		Additions					December 31,
		2017 Net Book		(disposals)					2018 Net Book
		Value		(write-offs)		Amortization			Value
Computer equipment	$	1,947	$	8,377	$	(1,050	)	$	9,274

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MINERAL PROPERTY INTERESTS (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Mineral Interests [Table Text Block]

		Scandium and
March 31, 2019		other
Balance, March 31, 2019, December 31, 2018	$	704,053

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CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Warrants and Stock Options, Activity [Table Text Block]

	Stock Options
				Weighted average
	Number			exercise price in Canadian $
Outstanding, December 31, 2017	23,585,000		$	0.18
Granted	6,850,000			0.225
Exercised	(1,010,000	)		0.10
Expired	(360,000	)		0.27
Outstanding, December 31, 2018	29,065,000			0.194
Exercised	(1,075,000	)		0.12
Outstanding, March 31, 2019	27,990,000		$	0.197
Number currently exercisable	27,610,000		$	0.196

Schedule of Stock Options Outstanding [Table Text Block]

	Number of	Number of	Exercise
	Options	Options	Price in	Expiry Date
	Outstanding	Exercisable	Canadian $
Options
	2,300,000	2,300,000	0.120	July 25, 2019
	200,000	200,000	0.100	December 30, 2019
	3,450,000	3,450,000	0.140	April 17, 2020
	250,000	250,000	0.600	May 11, 2020
	400,000	400,000	0.115	August 28, 2020
	4,300,000	4,300,000	0.100	November 5, 2020
	4,850,000	4,850,000	0.130	February 8, 2021
	400,000	400,000	0.200	June 14, 2021
	4,980,000	4,980,000	0.370	February 21, 2022
	250,000	150,000	0.300	October 6, 2022
	6,260,000	5,980,000	0.225	January 19, 2023
	350,000	350,000	0.185	August 30,2023
	27,990,000	27,610,000

Schedule of Weighted Average Assumptions for Fair Values [Table Text Block]

	2019	2018
Risk-free interest rate	N/A	1.96%
Expected life	N/A	5 years
Volatility	N/A	127.81%
Forfeiture rate	N/A	N/A
Dividend rate	N/A	N/A

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TREASURY STOCK (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Treasury Stock [Table Text Block]

	Number		Amount
Treasury shares, March 31, 2019 and December 31 2018	1,033,333	$	1,264,194
	1,033,333	$	1,264,194

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SEGMENTED INFORMATION (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Segmented Information [Table Text Block]

March 31, 2019		Australia		United States		Total
Equipment	$	-	$	8,697	$	8,697
Mineral property interests		704,053		-		704,053
	$	704,053	$	8,697	$	712,750
December 31, 2018		Australia		United States		Total
Equipment	$	-	$	9,274	$	9,274
Mineral property interests		704,053		-		704,053
	$	704,053	$	9,274	$	713,327

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BASIS OF PRESENTATION (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Short-term Lease, Cost	$ 6,966	$ 6,699
Maximum [Member]
Lessee, Operating Lease, Term of Contract	12 months

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MINERAL PROPERTY INTERESTS (Narrative) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 EUR (€)
Nyngan, New South Wales Property [Member]
Mineral Property Interest	100.00%
Gross mineral sales royalty	0.70%
Net Profits Interest Royalty	1.50%
Net Smelter Return Royalty	1.70%
Revenue Royalty	0.20%
Royalty Cap, Amount	$ 370,000
NSW minerals royalty	4.00%
Honeybugle Property, Australia [Member]
Mineral Property Interest	100.00%
Kiviniemi Scandium Property Finland [Member]
Reclamation bond		$ 11,444	€ 10,000

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RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Option Expense		$ 695,405
Related Party Transaction, Amounts of Transaction	25,500	$ 25,500
Due to Directors and Officers or Stockholders	$ 15,390

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CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Narrative) (Details)			1 Months Ended		3 Months Ended				12 Months Ended
	Mar. 02, 2018 USD ($) shares	Mar. 02, 2018 CAD ($) $ / shares shares	Mar. 21, 2019 USD ($) shares	Mar. 21, 2019 CAD ($) $ / shares shares	Mar. 31, 2019 USD ($)	Mar. 31, 2019 USD ($) $ / shares	Mar. 31, 2018 USD ($) shares	Mar. 31, 2018 $ / shares	Dec. 31, 2018 USD ($) shares
Stock Issued During Period, Shares, New Issues | shares	5,729,167	5,729,167	5,926,301	5,926,301
Sale of Stock, Price Per Share | $ / shares		$ 0.18		$ 0.18
Proceeds from Issuance of Common Stock	$ 810,898	$ 1,031,250	$ 799,483	$ 1,066,734	$ 799,483		$ 810,898
Number of options authorized under plan, as a percentage of shares outstanding					15.00%
Aggregate Intrinsic Value of Outstanding and Exercisable Stock Options | $					$ 594,500	$ 594,500			$ 1,084,994
Stock-based compensation | $					$ 13,116		$ 920,558
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares							6,500,000		6,850,000
Weighted Average Fair Value of Options Granted | $ / shares								$ 0.192

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Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Cash	$ 774,322	$ 284,757	$ 702,873	$ 343,434
Assets	774,322
Quoted Prices in Active Markets (Level 1) [Member]
Cash	774,322
Assets	774,322
Significant Other Observable Inputs (Level 2) [Member]
Cash	0
Assets	0
Significant Unobservable Inputs (Level 3) [Member]
Cash	0
Assets	$ 0

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Schedule of Property, Plant and Equipment (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Net Book Value, beginning of period	$ 9,274
Amortization	(577)	$ (158)
Net Book Value, end of period	8,697		$ 9,274
Computer Equipment [Member]
Net Book Value, beginning of period	9,274	$ 1,947	1,947
Additions (disposals) (write-offs)	0		8,377
Amortization	(577)		(1,050)
Net Book Value, end of period	$ 8,697		$ 9,274

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Schedule of Mineral Interests (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Acquisition costs, continuing operations abstract
Acquisition costs, beginning of period	$ 704,053	$ 704,053
Acquisition costs, end of period	$ 704,053	$ 704,053

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Schedule of Warrants and Stock Options, Activity (Details) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Number of Stock Options Outstanding, Beginning	29,065,000	23,585,000	23,585,000
Number of Stock Options Granted		6,500,000	6,850,000
Number of Stock Options Exercised	(1,075,000)		(1,010,000)
Number of Stock Options Expired			(360,000)
Number of Stock Options Outstanding, Ending	27,990,000		29,065,000
Number of Stock Options currently exercisable	27,610,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning of Period	$ 0.194	$ 0.18	$ 0.18
Weighted Average Exercise Price of Stock Options Granted			0.225
Weighted Average Exercise Price of Stock Options Exercised	0.12		0.10
Weighted Average Exercise Price of Stock Options Expired			0.27
Weighted Average Exercise Price of Stock Options Outstanding, Ending	0.197		$ 0.194
Weighted Average Exercise Price of Stock Options currently exercisable	$ 0.196

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Schedule of Stock Options Outstanding (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of Options Outstanding	27,990,000	29,065,000	23,585,000
Number of Options Exercisable	27,610,000
July 25, 2019 [Member]
Number of Options Outstanding	2,300,000
Number of Options Exercisable	2,300,000
Exercise Price	$ 0.120
December 30, 2019 [Member]
Number of Options Outstanding	200,000
Number of Options Exercisable	200,000
Exercise Price	$ 0.100
April 17, 2020 [Member]
Number of Options Outstanding	3,450,000
Number of Options Exercisable	3,450,000
Exercise Price	$ 0.140
May 11, 2020 [Member]
Number of Options Outstanding	250,000
Number of Options Exercisable	250,000
Exercise Price	$ 0.600
August 28, 2020 [Member]
Number of Options Outstanding	400,000
Number of Options Exercisable	400,000
Exercise Price	$ 0.115
November 5, 2020 [Member]
Number of Options Outstanding	4,300,000
Number of Options Exercisable	4,300,000
Exercise Price	$ 0.100
February 8, 2021 [Member]
Number of Options Outstanding	4,850,000
Number of Options Exercisable	4,850,000
Exercise Price	$ 0.130
June 14, 2021 [Member]
Number of Options Outstanding	400,000
Number of Options Exercisable	400,000
Exercise Price	$ 0.200
February 21, 2022 [Member]
Number of Options Outstanding	4,980,000
Number of Options Exercisable	4,980,000
Exercise Price	$ 0.370
October 6, 2022 [Member]
Number of Options Outstanding	250,000
Number of Options Exercisable	150,000
Exercise Price	$ 0.300
January 19, 2023 [Member]
Number of Options Outstanding	6,260,000
Number of Options Exercisable	5,980,000
Exercise Price	$ 0.225
August 30, 2023 [Member]
Number of Options Outstanding	350,000
Number of Options Exercisable	350,000
Exercise Price	$ 0.185

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Schedule of Weighted Average Assumptions for Fair Values (Details)	3 Months Ended
	Mar. 31, 2018
Risk-free interest rate	1.96%
Expected life	5 years
Volatility	127.81%

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Schedule of Treasury Stock (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Treasury Shares, Number	1,033,333	1,033,333
Treasury Shares, Amount	$ 1,264,194	$ 1,264,194

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Schedule of Segmented Information (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Equipment	$ 8,697	$ 9,274
Mineral property interests	704,053	704,053
Capital Assets	712,750	713,327
Australia [Member]
Equipment	0	0
Mineral property interests	704,053	704,053
Capital Assets	704,053	704,053
United States [Member]
Equipment	8,697	9,274
Mineral property interests	0	0
Capital Assets	$ 8,697	$ 9,274