Vanadiumcorp Resource : Earnings Document

VANADIUMCORP RESOURCE INC.

Management’s Discussion and Analysis

For The Nine Months Ended July 31, 2022

The Management’s Discussion and Analysis (“MD&A), prepared as of September 28, 2022, review and summarize the activities of VanadiumCorp Resource Inc. (“VanadiumCorp” or the “Company”) and compare the financial results for the nine months ended July 31, 2022, with those of the nine months ended July 31, 2021. This information is intended to supplement the unaudited condensed interim consolidated financial statements for the nine months ended July 31, 2022 and the related notes thereto, which have been prepared by management in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. All dollar amounts included in this MD&A are stated in Canadian dollars unless otherwise indicated.

FORWARD-LOOKING INFORMATION

This MD&A contains certain forward-looking statements and information relating to Vanadiumcorp and its operations that are based on the beliefs of its management as well as assumptions made by and information currently available to the Company. When used in this document, the words “anticipate,” “believe,” “budget,” “estimate,” “expect,” “intends,” “plans,” “potential,” and similar expressions, as they relate to the Company or its management and operations, are intended to identify forward-looking statements.

These forward-looking statements or information relate to, among other things: the Company’s future financial and operational performance; the sufficiency of the Company’s current working capital, anticipated cash flow or its ability to raise necessary funds; the anticipated amount and timing of work programs; our expectations with respect to future exchange rates; the estimated cost of and availability of funding necessary for sustaining capital; forecast capital and non- operating spending; and the Company’s plans and expectations for its Property, exploration and community relations operations.

These forward-looking statements and information reflect the Company’s current beliefs as well as assumptions made by, and information currently available to the Company and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic, competitive, political, regulatory, and social uncertainties and contingencies. These assumptions include cost estimates for exploration programs; cost of drilling programs; prices for base and precious metals remaining as estimated; currency exchange rates remaining as estimated; capital estimates; our expectation that work towards the establishment of mineral resource estimates and the assumptions upon which they are based will produce such estimates; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions at our operations; no unplanned delays or interruptions in scheduled work; all necessary permits, licenses and regulatory approvals for our operations being received in a timely manner and can be maintained; and our ability to comply with environmental, health and safety laws, particularly given the potential for modifications and expansion of such laws. The foregoing list of assumptions is not exhaustive.

Forward-looking statements and information involve known and unknown risk, uncertainties, assumptions, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements (see “Risks and Uncertainties” in this MD&A), there may be other factors, such as the coronavirus global pandemic, which could cause results not to be as anticipated, estimated, described, or intended. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements or information.

Forward-looking statements and information contained herein are made as of the date of this MD&A and the Company does not intend and disclaims any obligation to update or revise forward-looking statements or information, whether as a result of new information, future events, or to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law.

By July 21, 2010, VanadiumCorp had completed a third drilling campaign totalling over 2,349 meters and sampling 3 trenches also in the Lac Olga-Ouest mineralized zone.

In 2011, a mineral resource estimate (the “2011 MRE”) was issued on behalf of the Company for the Lac Olga-Ouest mineralized occurrence (the “Genesis Zone”). A report by M. Dupere, P.Geo. of SGS Canada Inc. – Geostat, titled “Technical Report – Resource Update of the Iron-TVanadium-Titanium-Iron Property, Matagami Area, Quebec” dated May 19, 2011, stated that the zone contains 14.37 Mt bearing 39.04% Fe2O3, 6.55% TiO2 and 0.42% V2O5 in the inferred category using a cut-off grade of 0.48% V2O5. This historical estimate is not considered a current estimate by the Company.

The 2011 MRE was prepared using the results of the 2009-2010 drilling program. However, the Company conducted further drilling in 2011, and these results were not included in the resource estimate.

Drilling programs from 2009 to 2011 revealed a further potential for mineralization on the Property.

• Specifically, down-dip and step-out drill holes intersected mineralization with similar grades to those from the 2011 resource area, thereby demonstrating that the Main Zone remains open at depth and along trend.
• Several holes drilled in the Lac Shallow-Ouest area in the western half of the Property intersected V-Ti-Fe mineralization with similar features to the Lac Olga- Ouest showing, specifically the grades, the geological setting, and the coincident broad geophysical signature.
• Consistent drill results, trench samples and aeromagnetic responses along the entire 22 km strike length indicate remarkably similar geology to the Lac Doré Vanadium Project, including virtually no impurities and exceptional metallurgical recoveries.

Priority for exploration shifted to the Company’s Lac Dore Property in 2013, and the Iron-T was put on maintenance only.

The Iron-T Property is located within the Matagami volcanic complex in the northern part of the Abitibi Greenstone Belt, which represents one of several EW trending belts composed of a series of volcanic, sedimentary, and intrusive rocks within the Superior Province. Sharpe (1968) defined the stratigraphy of the Matagami area and identified two Archean volcanic packages, the Watson Lake Group marking the first of two phases of Archean volcanism characterized by the extrusion of bimodal Fe-rich, tholeiite volcanic rocks. The overlying Wabassee Group is characterized mainly by calc- alkaline basaltic to andesitic volcanics with some localized felsic units near its base.

The Watson Lake and Wabassee groups are intruded by the Bell River Complex, a large, 750 km2 layered synvolcanic intrusion dated 2724.6 ± 2.5 Ma (Mortensen, 1993). The Iron-T Property includes a few historical V-Ti-Fe mineralized occurrences and showings in the Bell River Complex (e.g., Lac Olga-Ouest and Lac Shallow-Ouest), as well as magmatic Cu-Ni mineralization (Lac Shallow-Est).

Geological setting and mineralization encountered on the Iron-TVanadium-Titanium-Iron Property located in the Bell River Complex indicate many similarities with typical large magmatic Fe- Ti-V oxide deposits associated with a layered intrusive complex consisting mainly of layered and massive concentrations of titanomagnetite, titaniferous magnetite, magnetite, and ilmenite.

The vanadium mineralization is associated with titanomagnetite, magnetite and ilmenite layers within the layered ferrogabbro zone. Vanadium is mainly associated with titanomagnetite and magnetite mineral species.

Taner et al. (1998) conducted a mineralogical and petrological study of vanadium mineralization in the Bell River and Lake Doré Complex. This study indicates that vanadium mineralization is associated with magnetite and ilmenite layers within the layered ferrogabbro zone of the upper part of the Bell River Complex. The oxide-rich gabbro horizons varying in width from 10 to 100 m clearly appear on the airborne regional magnetic survey. The oxide-rich gabbro is a mineralized cumulate forming either homogeneous horizons with disseminated oxide mineral contents ranging from 20 to 60% or massive homogeneous layers with oxide mineral contents varying from 60 to 90%. Massive oxide mineralized bands are interlayered with poorly mineralized gabbro forming pluri-centimetric to decimetric scale interlayers. The mineralized layering of the gabbro dips north from 75˚ to 85˚.

On October 30, 2019, the Company announced it had entered into a definitive agreement (the “Agreement”) with 11626191 Canada Inc., a private company (“Private Company”) whereby the issuer can earn a 100% interest in the Property. On March 12, 2020, the Company announced in a press release that the project transaction had closed.

Private Company has the right to:

• Earn a 75% interest on completion of $5 million in exploration expenditures and $1 million in cash and stock payments to VanadiumCorp before the 4th anniversary of the signing of the Agreement (“First Option”).
• Earn an additional 10% interest on completion of a preliminary economic assessment (“Second Earn-in”); and
• Earn an additional 15% interest on completion of a positive feasibility study (“Third Earn-in”).

After receipt of $25,000 upon signing a Letter of Intent, the Private Company defaulted on its commitments and as of October 31, 2021, the Agreement has been terminated.

Lac Dore Property, Québec

The Company holds 100% ownership in the Lac Dore Vanadium, Iron and Titanium Property (“Lac Dore Property”). The Lac Dore Property is located approximately 27 km east-southeast from the city of Chibougamau, in Eeyou Istchee James Bay Territory, Nord-du-Québec administrative region, Province of Québec, Canada. The center of the Property lies at approximately Latitude 49°50’N, Longitude 74°0’W. The Property comprises two discontinuous groups of claims that straddle the border between National Topographic System (NTS) map sheets 32G-16 and 32H-13:

• Lac Dore Main, holding mineral tenures over the Lac Dore deposit and is comprised of 23 claims of 648.8 hectares area.
• Lac Dore North to the north, straddling strike extensions of the Lac Dore deposit is comprised of 15 claims of 701.9 hectares area.
• Lac Dore Extension that abuts Lac Dore North and is mostly west of the Main/North mineralized horizon. It is currently comprised of 86 claims of 4,789.0 hectares area. The Company recently abandoned 2,116.8 hectares of claims in the northwestern extremity because they are not mineralized.

The Lac Dore magnetite deposit was discovered in 1948 through an aeromagnetic survey and has since been the subject of historical exploration by several companies with work carried out, including mapping, channel sampling, drilling, metallurgical test work, resource estimates, and feasibility studies. A large amount of historical data is available, but historical data considered most relevant are:

• The results of an extensive drilling program carried out by SOQUEM Inc. (SOQUEM), beginning in 1979.
• A 1997 stripping and sampling program by McKenzie Bay Resources Ltd (McKenzie Bay), including sampling and assaying of 1734 diamond-cut samples along a series of northwest-southeast lines.
• Seven drillholes completed by McKenzie Bay on the ground now held by the Company (i.e. within the current claim holdings).
• Four drillholes were completed by the Company (recorded as PacificOre Mining in the assessment filing registry) in 2013. Although conducted by the Company, they are considered historical as they were not drilled as part of the most recent program.
• Other than drilling, the Company carried out several ground magnetic surveys between 2009 and 2013.

The Lac Dore Property is located at the northeast end of the Abitibi greenstone belt, which is host to several Archaean mafic intrusions, including the Lac Dore Complex (LDC) near Chibougamau, which has been emplaced into volcano- sedimentary host rocks and has in turn been intruded by the felsic Chibougamau Pluton.

The LDC is a layered mafic complex and is comparable to other better-known complexes such as the Bushveld Complex in South Africa, and the Lac Dore Property area (located in the Layered Zone of the LDC) is underlain by anorthosite, gabbro, magnetitite, and pyroxenite in varying proportions.

Magnetite deposits in layered complexes such as at Lac Dore are formed through primary magmatic processes, and the magnetite-bearing units (as well as the intervening mafic rocks that may contain minor amounts of magnetite) are generally continuous along strike. This is the case at Lac Dore, where magmatic layering has formed several magnetite- rich or magnetite-poor lithologies zones. Based on the detailed correlation of lithological units logged during the 2019- 2020 exploration campaign, a magmatic stratigraphy comprising nine units has been defined (PO, P1, P2-LOW,P2-A, P2- PART, P2-B,P2-HW P3, P3-HW).