NATURE AND CONTINUANCE OF OPERATIONS

August 25, 2010,

International Tower Hill Mines Ltd. (“ITH”) completed a Plan of Arrangement (the “Arrangement”) whereby its existing Alaska mineral properties (other than the Livengood project) and related assets and the North Bullfrog mineral property and related assets in Nevada (collectively, the “Nevada and Other Alaska Business”) were indirectly spun out into a new public company, being Corvus Gold Inc. (“Corvus” or the “Company”). As part of the Arrangement, ITH transferred its wholly-owned subsidiary Corvus Gold Nevada Inc. (“Corvus Nevada”) (which held the North Bullfrog property), to Corvus and a wholly-owned Alaskan subsidiary of ITH, Talon Gold Alaska, Inc. sold to Raven Gold Alaska Inc. (“Raven Gold”), the Terra, Chisna, LMS and West Pogo properties. As a consequence of the completion of the Arrangement, the Terra, Chisna, LMS, West Pogo and North Bullfrog properties were transferred to Corvus.

The Company was incorporated on

April 13, 2010

under the

Business Corporations Act

(British Columbia). These condensed interim consolidated financial statements reflect the cumulative operating results of the predecessor, as related to the mineral properties that were transferred to the Company from

June 1, 2006.

The Company is engaged in the business of acquiring, exploring and evaluating mineral properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. At

February 28, 2019,

the Company had interests in properties in Nevada, U.S.A.

The business of mining and exploration involves a high degree of risk and there can be

assurance that current exploration programs will result in profitable mining operations. The Company has

source of revenue, and has significant cash requirements to meet its administrative overhead and maintain its mineral property interests. The recoverability of amounts shown for mineral properties is dependent on several factors. These include the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties, and future profitable production or proceeds from disposition of mineral properties. The carrying value of the Company’s mineral properties does

not

reflect current or future values.

These condensed interim consolidated financial statements have been prepared on a going concern basis, which presume the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future. The Company’s ability to continue as a going concern is dependent upon achieving profitable operations and/or obtaining additional financing.

In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future within

one

year from the date the condensed interim consolidated financial statements are issued. There is substantial doubt upon the Company’s ability to continue as going concern, as explained in the following paragraphs.

The Company has sustained significant losses from operations, has negative cash flows, and has an ongoing requirement for capital investment to explore its mineral properties. As at

February 28, 2019,

the Company had working capital of

$5,514,929

compared to working capital of

$2,562,047

as at

May

31,

2018.

June 7, 2018,

the Company closed a non-brokered private placement equity financing and issued

1,730,770

common shares at a price of

$2.60

per common share for gross proceeds of

$4,500,002.

November

2018,

the Company issued

4,036,900

common shares on the exercise of

4,036,900

stock options at an exercise price of

$0.86

per stock option for net proceeds of

$3,453,924.

December 20, 2018,

the Company closed a non-brokered private placement equity financing and issued

800,000

common shares at a price of

$2.60

per common share for gross proceeds of

$2,080,000.

Based on its current plans, budgeted expenditures, and cash requirements, the Company has sufficient cash to finance its current plans for the

months from the date the condensed interim consolidated financial statements are issued.

The Company expects that it will need to raise substantial additional capital to accomplish its business plan over the next several years. There is

assurance that additional capital or other types of financing will be available if needed or that these financings will be on terms at least as favourable to the Company as those previously obtained, or at all. Should such financing

not

be available in that time-frame, the Company will be required to reduce its activities and will

not

be able to carry out all of its presently planned exploration, if warranted, and development activities on its currently anticipated scheduling.

These condensed interim consolidated financial statements do

not

include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue in business.

All currency amounts are stated in Canadian dollars unless noted otherwise.