Message from CEO

Latest Message from the CEO
August 4, 2020

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Raj Chowdhry, the CEO and Executive Chairman, from time to time (effective date - noted above) provides his message/general-comments, being "Latest Message from the CEO", on the Company's activities, current progress, and market/economic enviornment/conditions impacting the Company in business sectors being pursued by the Company. (See Note** - bottom of page)



General Message/Comments - Summary


Welcome

Raj Chowdhry, the CEO and Executive Chairman stated "Firstly it's my pleasure as always to provide this message to you, our Company's shareholders and investors. Your instrumental support is appreciated by the Company and me personally. This General Message/Comments - Summary section is provided for you in two sections; firstly the "Quick & Concise Summary" to quickly keep you abreast of the Company's progress and then secondly the "Detailed Discussion on each Sector/Division". to provide you more details."


Quick & Concise Summary

"The Company while remaining focused in the Mining sector, has commenced the process to facilitate and complete the spin out (Spin-Out) of three (3) companies (News Release July 20, 2020) having received an interim order from the Supreme Court of British Columbia, Canada on July 17, 2020) to transfer its interest in the Cannabis sector to Mantra Pharma Inc. (News Release - June 19, 2019) and the Real-Estate Development sector tp Mantra 2 Real Estate Inc. (News Release April 16, 2020) and its interest in the Jean Iron Ore Project to Mantra Exploration Inc. The Company's intent as previoysly outlined by the Company has always been to successfully execute in each of the outlined sectors through creation of Spin-Co's pursuant to a plan of arrangement as further outlined below in my closing comments. Further, the Company is in advanced stages of review for entry into the Casino-Entertainment/Destination-Resorts sector opportunities, especially in Croatia (News Release - April 16, 2020), as it continues to explore advanced business opportunities; as previously disclosed by the Company."

"Having returned from the last trip to Europe (Jan 29, 2020) accompanied by key members of the team, and now continuing to have on-going dialouge, inspite of the difficulties being caused by the coronavirus outbreak (the "COVID-19 Outbreak") and the recent severe earhquake in Zagreb (capital city) of Croatia (the "Earthquake": 5.3 magnitude - strongest in 140 years), I'm pleased to inform you that the Company's endeavors into the Cannabis sector entry into the EU, commencing in Croatia, are proceeding well. Croatia, subject to possible delays currently being caused by the COVID-19 Outbreak and the Earthquake, is anticipated to finalize the drafting and passing of the necessary regulations pertaining to medical cannabis by September 30, 2020 (previously anticipated by April 30, 2020); with Croatia having already previously passed legislation for growing and selling cannabis for medical consumption (2015) and now awaiting the completion of the required regulations (the “Regulations”) for full implementation."

"Further, pursuant to the Company's cooperation agreement (the "Cooperation Agreement") with the City in Croatia (News Release - June 19, 2019), the City having received clearance from the national government to incorporate City-New-Sub-Co-Ltd for applications of Medical-Cannabis-Permit, the City anticipates that City-New-Sub-Co-Ltd will be incorporated and be able to start business soon, likely around f September 30, 2020; allowing for delays likely to be caused by the COVID-19 Outbreak. The City has informed the Company that it has commenced the construction of a 3,000 square foot (Sq-Ft) laboratory (the "Lab") within a new 25,000 Sq-Ft building (the "Building") recently completed for occupancy in anticipation of the completion of incorporation of City-New-Sub-Co-Ltd. The Lab, pursuant to an update from the City, is now now 80% completed.(News Release - February 20, 2020)."

"This timing of the progress in the Cannabis sector noted above comes at a very opportune time for the Company, since the EU is addressing issues in this, the Cannabis/CBD sector, especially as they pertain to "Novel Foods' as defined by the EU. Pursuant to the EU's Novelty Foods policy, virtually all CBD products sold within the EU, will require new levels of permitting. This shift in EU's views and its upcoming actions effectively truly provides our Company a first mover advantage; especially with Croatia finally implementing its 2015 decision to facilitate its validly existing laws by finally drafting/finalizing the regulations in the Cannabis sector; especially with a bill reportedly being introduced to possibly legalize recreational use in the Country. You can well imagine, the opportunities in the Cannabis sector in the EU, with Europe being the largest up and coming western-culture cannabis market in the world (population of 740 million people, with EU representing approximately 512 million),"

"Further, while in Croatia, the team was able to identify opportunities both in the Real-Estate Development and Casino-Entertainment/Destination-Resorts market sectors (News Release - February 20, 2020), especially business opportunities that will now result due to the likely impact of the COVID-19 Outbreak in Europe due to the inevitable negative economic impact (economic-slow-down), and more specifically in Croatia. The Company has now entered into an option Agreement resulting from the opportunity identified (News Release April 16, 2020)".

"Please note that the Company's activities, other than in the mining sector which have a global horizon, are currently focused in Croatia and in sectors that are congruent; being in the health, hospitality and entertainment sectors; allowing the team to maintain and stay focused while contributing positively to the country and its people.. The team assembled to date, including the recent additions over the last year to the Advisory Board and the Board of Directors, has the knowledge, experience, vision and the passion to execute in all of the selected sectors within Croatia. In addition, the Company's timing to enter the selected new sectors, especially in Croatia is truly exceptional; allowing the Company to participate and assist in the healing process of the impacted industries and citizens. A true opportunity for all of us to be good corporate citizens."



Closing Remarks

As you are aware, the Company's whole team is focused on delivering shareholder value to all shareholders of the Company. I not only serve the Company, the Company's team, each of the shareholders of the Company, and each community and country where the Company conducts business; I get to do it as a significant shareholder. I thank you and continue to seek your support; as the Company, and its new generation(s) of companies (Spin-Co's), all having forward thinking, create and deliver results and value."

"The current market conditions, especially with the recent volatility (Feb/March, 2020) remind me of the economic turbulent times in the early 1990's; following the 1987 stock-market crash. In the early 1990's, following the market-crash, the conditions were ripe to commence/acquire various successful business through publicly listed companies and to justifiably magnify their values at the same economic time, while building true value for shareholders, society and its citizens; being in the mining (diamonds and copper), casino/entertainment and the internet business sectors/arenas; with the "Internet" being a new arena; globally [view transaction details]. Today, with the severe market correction now under way, I believe that a similar opportunity has arrived; with the "Cannabis" sector/arena being the new entrant (globally) vs the old "Internet" sector/arena. I believe that the Company can and should take advantage of this opportunity. With the Real-Estate sector/arena having already gone through a significant correction over recent period (5 years), especially in Europe and the Mining sector/arena having already gone through a long corrective cycle (almost 10 years), especially in the non-precious metals, the time to capitalize in the mining and real-estate sectors/arenas together with the new Cannabis sector/arena concurrently has arrived; especially with the significant market-crash (Feb/March, 2020) caused by the impact of the Coronavirus."

"The last time the opportunity was capitalized upon, it was done with like-minded shareholders through three (3) independent new publicly traded companies, and in diverse sectors/arenas; and if I recall correctly, I believe with all three (3) companies having 75% of the shareholders in common. This time the current opportunity exists to accomplish the task, and again with like-minded shareholders, through a single company via creation of" Spin-Out" companies using a plan of arrangement ("Spin-Co's"); staying focused, like how AsiaBaseMetals Inc. was formed/created. The key to "Discovery/Success", which is always the "Mantra", is "People". I believe the Company has added the right people to the team to accomplish the task, in each of the Mining, Cannabis, Real-Estate Development and Casino-Entertainment/Destination-Resorts sectors/arenas. In my judgement, "diversification with focus", like the Company's focus in Croatia is the key for capitalizing on the opportunity(s), especially in this new, modern and changing global business world."

"The Cannabis sector being the newest sector/arena gaining momentum globally, with the first-wave entrants especially from North America now suffering, similarly to what happened to the first-wave entrants in the Internet sector/arena, and with the largest up and coming Cannabis sector/arena market being Europe, the Company is in a position to capitalize on the second wave by building an efficient, effective and profitable company in the Cannabis sector/arena; similar to what has transpired in the Internet sector/arena."

"Further, with tourism being harshly impacted globally and especially in Croatia in a severe manner due to the Coronavirus, both currently and in the near foreseeable future, the time to acquire/develop both in the Real-Estate Development and Casino-Entertainment/Destination-Resorts sectors/arenas is opportune. Croatia today, especially with the current general economic condition being magnified by the current and upcoming impact from the Coronavirus, provides the Company the perfect gateway, allowing the Company to maintain focus and execute in the selected sectors/arenas, being the Cannabis sector/arena, the Real-Estate Development sector/arena and the Casino-Entertainment/Destination-Resorts sector/arena. Croatia being highly dependent on the tourism/recreational sector (approximately 20 million visitors/tourists in 2019) annually is now facing the upcoming impact on each of the sectors identified above; providing the Company a unique opportunity. The Company has the best resource to cease the opportunity and to succeed, the "Right People"; especially with the recent new additions to the Board of Directors and the Advisory Board (see News Release - Feb 6, 2020 & News Release - Mar 23, 2020). The Company looks forward to its entry into Croatia and to be a good corporate citizen; adding value and comfort to the lives of the Croatian people, especially in these difficult times."

"The Company's intent is to successfully execute in each of the outlined sectors through creation of Spin-Co's pursuant to a plan of arrangement, as noted above in the Quick & Concise Summary section aboveand. Pursuant to the plan of arrangement, upon successful execution, each shareholder of the Company (as of a record date) will receive shares in a new company focused in its sector for free. As mentioned in my opening remarks, this brings the Quick & Concise Summary, being the first section to a close. For further details on each sector the Company is currently engaged in and/or reviewing please read the second section marked Detailed Discussion for each Section/Division, provided below. Once again, I and the Company thank you for your continued support, and I look forward to providing you the next message from the CEO." stated Raj Chowdhry.



Detailed Discussion for each Sector/Division


Mining - Sector/Division

Raj Chowdhry, Chief Executive Officer & Chairman of the Board stated, "in the mining sector", the Company, as previously announced (News Release - October 25, 2019) has completed the initial drilling (August 2019 - 140 m - true depth of only 80 m) at the Gnome (Zn/Co) property adjacent to the ZincX's Cardiac Creek deposit (a property having a robust PEA, where ZincX did additional drilling (2,000 m - 2019 program) to further develop their deposit. It's an exciting time for the Company as it's been only testing for significantly shallow resource to date compared to the Cardiac Creek deposit (ZincX) or the Cirque deposit [Teck's & Korea Zinc's joint ventured ("T-KZ-JV" - 50% each)]. Based on the drill results of the 2019 exploration program the Company will likely, in due course in conjunction with market sentiment, test for the expected deeper resource; as existing on adjacent projects."

"Further, the Company’s entry into Myanmar with the pursuit for the Thazi project (News Release - Feb 11, 2019), a country having both China and India as neighbors (combined population of almost three billion people) who likely represent the largest buyers of Gold, Copper and Zinc, and users of batteries in the world, is a significant move. Myanmar being endowed with impressive geology will allow the Company, now having commenced operation in the country successfully, to also pursue other assets, including gold, silver and copper assets. With all major mining companies having ceased operations in Myanmar back in 1997, due to prevailing sanctions at that time and with Myanmar after two decades now re-opening its doors with no sanctions, we look forward to capitalizing on the timely first mover advantage while adding and contributing to the growth of the country and its people. The Company expects to receive the granting of the Thazi Lithium Claims within the next quarter." stated Raj Chowdhry.


Cannabis - Sector/Division

Raj Chowdhry, Chief Executive Officer & Chairman of the Board stated, "In the cannabis sector, as previously announced (News Release - June 19, 2019)., the cooperation agreement (the "Cooperation Agreement") with the city (the "City") within Croatia, a member country ("the "Country") of the European Union ("EU") provides for the City to apply for a license for growing and selling cannabis for medical purpose ("Medical-Cannabis-Permit)" and, if it becomes permitted by law of the Country, a license for growing, processing and sale of cannabis for commercial purposes including recreational purposes ("Recreational-Cannabis-Permit"), through a limited liability company to be incorporated by the City ("City-New-Sub-Co-Ltd."). Upon City-New-Sub-Co-Ltd obtaining a Medical-Cannabis-Permit or a Recreational-Cannabis-Permit, the City has agreed to transfer all or majority of the shares of City-New-Sub-Co-Ltd to the Company."

"With the City having received clearance from the national government to incorporate City-New-Sub-Co-Ltd for applications of Medical-Cannabis-Permit, the City anticipates that City-New-Sub-Co-Ltd will be incorporated and be able to start business around end of September, 2020. The City having commenced the construction of a 3,000 square foot (Sq-Ft) laboratory (the "Lab") within a new 25,000 Sq-Ft building (the "Building") in anticipation of the completion of incorporation of City-New-Sub-Co-Ltd anticipates the Lab (now 80% completed) and the Building (now 100% completed) to receive occupancy permit by May 31, 2020 (previously April 30, 2020) (News Release - February 20, 2020)."

"I anticipate that Croatia will be in a position to finalize the drafting and passing of the necessary regulations pertaining to medical cannabis by September 30, 2020 (previously anticipated by March 30, 2020), with Croatia having already previously passed legislation for growing and selling cannabis for medical consumption (2015) and now awaiting the completion of the required regulations (the “Regulations”) for full implementation, especially with the Country having a bill being introduced to possibly legalize recreational use. The Company will consider opportunities and acquisitions in the cannabis sector only in fully legal jurisdictions before commencing business". stated Raj Chowdhry.


Real Estate Development - Sector/Division

Raj Chowdhry, Chief Executive Officer & Chairman of the Board stated, "in the real-estate development sector, the Company having considered exploring opportunities in this sector especially in Croatia (News Release - February 20, 2020) with the addition of Jakša Mrčela to the Board of the Company (News Release - February 6, 2020) has entered into an option agreement (the "Option Agreement") (News Release April 16, 2020)."

Other - Sector(s)/Division(s)

Raj Chowdhry, Chief Executive Officer & Chairman of the Board stated, "With the recent business trip earlier this year, by the Company's management to Croatia, the Company in addition to the Real-Estate sector is also reviewing the Casino-Entertainment/Destination-Resorts opportunities in Croatia (News Release - February 20, 2020).



Maintain Commodity and Business Focus
(Plan of Arrangement Spin-Out Transactions)

Commodity and Business focus: The Company intends to retain Commodity and Business focus, as appropriate and applicable to enhance shareholder value, in the same manner as when AsiaBaseMetals Inc. was originally formed with shareholder support and approval, via plan of arrangement spin-out transaction(s) ("Spin-Co.'s"). Spin-Co's result in the Company retaining commodity/business focus and the shareholders of the Company, as of the record date of Spin-Co creation, receiving their additional new shares in a new Spin-Co company at virtually nil/nominal cost; creating a true business based and rightful benefit and value for the shareholders.


Note **: The comment(s)/message(s) from the CEO provided here-in/above do not and are not intended to nor provide any material reportable information. All material information/items, pursuant to the reporting and regulatory requirements, are provided through News Releases by the Company. Further, all references including access links from this website to other websites are provided strictly for convenience purposes only. The Company is neither responsible nor liable for any information or content contained-in/provided by the referred/linked to websites. Users are urged to independently verify any information provided by the linked websites prior to making any decisions.

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