[sheet: Cover & Summary]

Field	Detail
Document Title	Funds Flow Memorandum
Prepared By	Calderwood & Harkness LLP
Matter No.	1039-00002
Date	April 18, 2022
Transaction	$300,000,000 Aggregate Principal Amount of 8.750% Senior Secured Notes due 2029
Issuer	Torchlight Mining Corp.
Guarantors	Wolverine Lake Mining Ltd.; Torchlight Milling & Processing Inc.; Torchlight U.S. Holdings, Inc.
Lead Initial Purchaser / Book-Runner	Kelvantis Capital Markets LLC
Co-Managers / Initial Purchasers	Prestige Barrington & Co., Inc.; Halcyon Securities Inc.
Indenture Trustee / Collateral Agent	Northern Dominion Trust Company
Closing Date	April 19, 2022
Governing Law	State of New York
CUSIP (144A)	891207 AA 3
CUSIP (Reg S)	C89120 AA 5
ISIN (144A)	US891207AA38
ISIN (Reg S)	USC89120AA58
Issue Price	98.50% of par
Coupon	8.750% per annum, semi-annual (April 15 / October 15)
Maturity Date	April 15, 2029
First Interest Payment Date	October 15, 2022
Prepared by Contact	Audrey Zhou, Lead Associate, Calderwood & Harkness LLP
Reviewed by	Vivienne St. Claire, Responsible Partner, Calderwood & Harkness LLP
Note	All wire transfers to be initiated on April 19, 2022 upon confirmation of Notes issuance and settlement through DTC (144A) and Thackeray Partners LLC/Ashgrove Enterprises (Reg S). All amounts in U.S. dollars unless otherwise noted.

[sheet: Proceeds Waterfall]

Line Item	Description	Amount (USD)	Calculation / Reference
A. Aggregate Principal Amount	Face value of 8.750% Senior Secured Notes due 2029	$300,000,000	Fixed per Indenture
B. Issue Price	98.50% of par	$295,500,000	$300,000,000 × 0.985
C. Original Issue discount (OID)	1.50% of par	($4,500,000)	$300,000,000 × 0.015
GROSS PROCEEDS FROM INVESTORS	Cash received from Initial Purchasers on behalf of investors	$295,500,000	A × 98.50%
D. Less: Initial Purchaser discount	2.25% of aggregate principal amount	($6,750,000)	$300,000,000 × 0.0225; see allocation on IP discount tab
D.1 — Kelvantis Capital Markets LLC (60%)	Lead Initial Purchaser / Book-Runner	($4,050,000)	$6,750,000 × 60%
D.2 — Prestige Barrington & Co., Inc. (25%)	Co-Manager / Initial Purchaser	($1,687,500)	$6,750,000 × 25%
D.3 — Halcyon Securities Inc. (15%)	Co-Manager / Initial Purchaser	($1,012,500)	$6,750,000 × 15%
NET PROCEEDS TO ISSUER (after IP discount)	Wired to Torchlight Mining Corp. escrow/operating account	$288,750,000	$295,500,000 − $6,750,000
E. Less: Estimated Other Transaction Fees & Expenses	Legal, trustee, ratings, printing, misc.	($3,000,000)	Estimated; see Disbursements tab for detail
NET CASH AVAILABLE FOR USE OF PROCEEDS	After all fees, discounts, and expenses	$285,750,000	$288,750,000 − $3,000,000

USE OF PROCEEDS ALLOCATION

F. Ridgeline Bank of Canada — Revolving Facility Payoff	Repayment of CAD $140,000,000 drawn amount + accrued	$110,250,000	CAD $140,000,000 × 0.7875 USD/CAD
G. Phase II Wolverine Lake Mine Expansion CapEx	Funded to Torchlight operating account for Phase II capital expenditures	$167,000,000	Per Offering Memorandum
H. General Corporate Purposes & Working Capital	Residual to Torchlight operating account	$8,500,000	$285,750,000 − $110,250,000 − $167,000,000
TOTAL USE OF PROCEEDS	$285,750,000	F + G + H = $285,750,000 ✓
TOTAL TRANSACTION FEES & EXPENSES	OID + IP discount + Other expenses	$14,250,000	$4,500,000 + $6,750,000 + $3,000,000
CHECK: Aggregate Principal − Total Fees = Net Proceeds	$285,750,000	$300,000,000 − $14,250,000 = $285,750,000 ✓

[sheet: Disbursements Detail]

Item No.	Payee	Description / Purpose	Amount (USD)	Currency if Non-USD	FX Rate	Amount in Local Currency	Wire Reference	Notes
1	Ridgeline Bank of Canada	Full payoff of CAD $225,000,000 revolving credit facility (CAD $140,000,000 drawn principal + accrued interest and fees); facility to be terminated and all liens released upon receipt	$110,250,000	CAD	0.7875	CAD $140,000,000	TMC-RIDGELINE-PAYOFF-041922	Per Payoff Letter executed by Gavin Forde, Relationship Manager; accrued interest/fees included in total; PPSA discharge filings coordinated with Pendleton Ross LLP
2	Calderwood & Harkness LLP	Legal fees — Issuer's U.S. Counsel (estimated; final invoice to follow)	$1,325,000	USD	N/A	N/A	TMC-SC-FEES-041922	Estimated within $1,200,000–$1,450,000 range per engagement letter; includes $150,000 completion fee payable upon closing; expenses subject to $75,000 cap (excl. mine site travel); Matter No. 1039-00002
3	Pendleton Ross LLP	Legal fees — Issuer's Canadian Counsel	$425,000	USD	N/A	N/A	TMC-PR-FEES-041922	Canadian securities law and CBCA opinions; Marie-Claire Bouchard, Lead Partner
4	Clairmont & Voss LLP	Legal fees — Initial Purchasers' U.S. Counsel (payable by Issuer per Purchase Agreement)	$575,000	USD	N/A	N/A	TMC-CV-FEES-041922	Harrison Voss, Lead Partner; Matter Ref. 1039-00002
5	Greystone & Whitfield LLP	Legal fees — Initial Purchasers' Canadian Counsel (payable by Issuer per Purchase Agreement)	$175,000	USD	N/A	N/A	TMC-GW-FEES-041922	David Shin, Lead Partner
6	Northern Dominion Trust Company	Trustee acceptance fee and first-year annual fee — Indenture Trustee, Collateral Agent, Paying Agent, Transfer Agent, Registrar	$75,000	USD	N/A	N/A	TMC-NDT-TRUSTEE-041922	Sandra Leung, VP Corporate Trust; 101 Barclay Street, 7th Floor, New York, NY 10286
7	Northmark Ratings Group, Inc.	Rating agency fee — B1 rating (stable outlook) assigned March 7, 2022	$175,000	USD	N/A	N/A	TMC-NORTHMARK-RATING-041922	250 Greenwich Street, New York, NY 10007
8	Creston Analytics, Inc.	Rating agency fee — B+ rating (stable outlook) assigned March 7, 2022	$150,000	USD	N/A	N/A	TMC-CRESTON-RATING-041922	55 Water Street, New York, NY 10041
9	Printing / EDGAR / Miscellaneous	OM printing, document production, closing binders, miscellaneous closing costs	$100,000	USD	N/A	N/A	TMC-MISC-041922	Estimated
10	Torchlight Mining Corp. — Operating Account	Residual proceeds for Phase II Wolverine Lake Mine expansion CapEx and general corporate purposes / working capital	$175,500,000	USD	N/A	N/A	TMC-OPERATING-041922	Comprised of: $167,000,000 Phase II CapEx + $8,500,000 working capital / general corporate purposes; 2200 – 400 Burrard Street, Vancouver, BC V6C 3A6
TOTAL DISBURSEMENTS	$288,750,000	Equals Net Proceeds to Issuer after IP discount ✓

[sheet: IP discount Allocation]

Initial Purchaser	Role	Allocation Percentage	Discount Amount (USD)	Contact Person	Office Address	Wire Reference
Kelvantis Capital Markets LLC	Lead Initial Purchaser / Book-Running Manager	60%	$4,050,000	Julian Marchetti, Head of HY Origination, Metals & Mining; Christine Yee, MD, Syndicate	599 Lexington Avenue, 38th Floor, New York, NY 10022	TMC-KELVANTIS-IPD-041922
Prestige Barrington & Co., Inc.	Co-Manager / Initial Purchaser	25%	$1,687,500	Keith O'Sullivan, MD, Debt Capital Markets	1285 Avenue of the Americas, 22nd Floor, New York, NY 10019	TMC-PRESTIGE-IPD-041922
Halcyon Securities Inc.	Co-Manager / Initial Purchaser	15%	$1,012,500	Priya Mehrotra, Director, High Yield	200 Park Avenue, Suite 3100, New York, NY 10166	TMC-HALCYON-IPD-041922
TOTAL	100%	$6,750,000

[sheet: Wire Instructions]

Payee	Bank Name	ABA / Routing / SWIFT	Account Name	Account Number	Reference / Memo	Amount (USD)	Special Instructions
Ridgeline Bank of Canada	[Correspondent Bank TBD]	[SWIFT TBD]	Ridgeline Bank of Canada — Revolving Facility Payoff Account	[Acct No. TBD]	TMC-RIDGELINE-PAYOFF-041922; Ref: Torchlight Mining Corp. CAD $225M RCF Payoff	$110,250,000	Wire in USD; Ridgeline to confirm payoff amount inclusive of accrued interest and breakage fees on T-1 (April 18, 2022); Gavin Forde to provide final payoff letter and release confirmation
Calderwood & Harkness LLP	[Bank TBD]	[ABA TBD]	Calderwood & Harkness LLP Client Trust Account	[Acct No. TBD]	TMC-SC-FEES-041922; Matter No. 1039-00002	$1,325,000	Estimated; final invoice to be reconciled post-closing
Pendleton Ross LLP	[Bank TBD]	[Routing TBD]	Pendleton Ross LLP Trust Account	[Acct No. TBD]	TMC-PR-FEES-041922	$425,000
Clairmont & Voss LLP	[Bank TBD]	[ABA TBD]	Clairmont & Voss LLP Operating Account	[Acct No. TBD]	TMC-CV-FEES-041922; C&V Matter Ref. 1039-00002	$575,000	Payable by Issuer per Purchase Agreement
Greystone & Whitfield LLP	[Bank TBD]	[Routing TBD]	Greystone & Whitfield LLP Trust Account	[Acct No. TBD]	TMC-GW-FEES-041922	$175,000
Northern Dominion Trust Company	[Bank TBD]	[ABA TBD]	Northern Dominion Trust Company — Corporate Trust	[Acct No. TBD]	TMC-NDT-TRUSTEE-041922	$75,000	101 Barclay Street, 7th Floor, New York, NY 10286; Sandra Leung, VP
Northmark Ratings Group, Inc.	[Bank TBD]	[ABA TBD]	Northmark Ratings Group, Inc.	[Acct No. TBD]	TMC-NORTHMARK-RATING-041922	$175,000	250 Greenwich Street, New York, NY 10007
Creston Analytics, Inc.	[Bank TBD]	[ABA TBD]	Creston Analytics, Inc.	[Acct No. TBD]	TMC-CRESTON-RATING-041922	$150,000	55 Water Street, New York, NY 10041
Printing / Misc. Vendors	[Bank TBD]	[ABA TBD]	[Vendor TBD]	[Acct No. TBD]	TMC-MISC-041922	$100,000	To be allocated among vendors; Issuer to direct
Torchlight Mining Corp. — Operating Account	[Bank TBD]	[Routing / SWIFT TBD]	Torchlight Mining Corp. General Operating Account	[Acct No. TBD]	TMC-OPERATING-041922	$175,500,000	2200 – 400 Burrard Street, Vancouver, BC V6C 3A6; Colleen Hébert, Treasurer, to confirm instructions
Kelvantis Capital Markets LLC (IP discount — retained from gross proceeds)	[Bank TBD]	[ABA TBD]	Kelvantis Capital Markets LLC	[Acct No. TBD]	TMC-KELVANTIS-IPD-041922	$4,050,000	Retained by Kelvantis from gross proceeds prior to remittance to Issuer; 599 Lexington Avenue, 38th Floor, New York, NY 10022
Prestige Barrington & Co., Inc. (IP discount — retained from gross proceeds)	[Bank TBD]	[ABA TBD]	Prestige Barrington & Co., Inc.	[Acct No. TBD]	TMC-PRESTIGE-IPD-041922	$1,687,500	Retained from gross proceeds; 1285 Avenue of the Americas, 22nd Floor, New York, NY 10019
Halcyon Securities Inc. (IP discount — retained from gross proceeds)	[Bank TBD]	[ABA TBD]	Halcyon Securities Inc.	[Acct No. TBD]	TMC-HALCYON-IPD-041922	$1,012,500	Retained from gross proceeds; 200 Park Avenue, Suite 3100, New York, NY 10166
TOTAL — ALL OUTFLOWS	$295,500,000	Issuer Disbursements ($288,750,000) + IP Retentions ($6,750,000) = Gross Proceeds ($295,500,000) ✓

[sheet: Reconciliation & Controls]

Check Item	Expected	Actual / Calculated	Status	Reference
Aggregate Principal Amount	$300,000,000	$300,000,000	✓ Confirmed	Per Indenture dated April 19, 2022
Gross Proceeds (Issue Price × Principal)	$295,500,000	$295,500,000	✓ Confirmed	$300,000,000 × 98.50%
Original Issue discount (OID)	$4,500,000	$4,500,000	✓ Confirmed	$300,000,000 × 1.50%
Total IP discount	$6,750,000	$6,750,000	✓ Confirmed	$300,000,000 × 2.25%
IP discount — Kelvantis (60%)	$4,050,000	$4,050,000	✓ Confirmed	Per Purchase Agreement
IP discount — Prestige Barrington (25%)	$1,687,500	$1,687,500	✓ Confirmed	Per Purchase Agreement
IP discount — Halcyon (15%)	$1,012,500	$1,012,500	✓ Confirmed	Per Purchase Agreement
IP discount Sub-Total Check	$6,750,000	$6,750,000	✓ Confirmed	$4,050,000 + $1,687,500 + $1,012,500
Net Proceeds to Issuer (after IP discount)	$288,750,000	$288,750,000	✓ Confirmed	$295,500,000 − $6,750,000
Estimated Other Transaction Fees & Expenses	$3,000,000	$3,000,000	✓ Confirmed	Sum of Disbursements Items 2–9
Total Transaction Fees & Expenses (OID + IP + Other)	$14,250,000	$14,250,000	✓ Confirmed	$4,500,000 + $6,750,000 + $3,000,000
Net Cash Available for Use of Proceeds	$285,750,000	$285,750,000	✓ Confirmed	$300,000,000 − $14,250,000
Use: Ridgeline Bank of Canada Payoff	$110,250,000	$110,250,000	✓ Confirmed	CAD $140,000,000 × 0.7875 USD/CAD
Use: Phase II Expansion CapEx	$167,000,000	$167,000,000	✓ Confirmed	Per Offering Memorandum
Use: Working Capital / General Corporate	$8,500,000	$8,500,000	✓ Confirmed	$285,750,000 − $110,250,000 − $167,000,000
Total Uses	$285,750,000	$285,750,000	✓ Balanced	Sum of all uses
Total Issuer Disbursements (from Disbursements tab)	$288,750,000	$288,750,000	✓ Confirmed	Sum of Items 1–10
Grand Total Outflows (Disbursements + IP Retentions)	$295,500,000	$295,500,000	✓ Confirmed	= Gross Proceeds
FX Rate Applied (USD/CAD)	0.7875	0.7875	✓ Confirmed	Per Offering Memorandum; rate used for Ridgeline payoff conversion
Ridgeline Facility (Committed / Drawn)	CAD $225M / CAD $140M	CAD $225M / CAD $140M	✓ Confirmed	Facility to be terminated and all liens released at closing
Closing Date Confirmed	April 19, 2022	April 19, 2022	✓ Confirmed	Extended from original April 5, 2022 due to Canadian regulatory clearance timing

[sheet: Cover & Summary]
Field | Detail
Document Title | Funds Flow Memorandum
Prepared By | Calderwood & Harkness LLP
Matter No. | 1039-00002
Date | April 18, 2022
Transaction | $300,000,000 Aggregate Principal Amount of 8.750% Senior Secured Notes due 2029
Issuer | Torchlight Mining Corp.
Guarantors | Wolverine Lake Mining Ltd.; Torchlight Milling & Processing Inc.; Torchlight U.S. Holdings, Inc.
Lead Initial Purchaser / Book-Runner | Kelvantis Capital Markets LLC
Co-Managers / Initial Purchasers | Prestige Barrington & Co., Inc.; Halcyon Securities Inc.
Indenture Trustee / Collateral Agent | Northern Dominion Trust Company
Closing Date | April 19, 2022
Governing Law | State of New York
CUSIP (144A) | 891207 AA 3
CUSIP (Reg S) | C89120 AA 5
ISIN (144A) | US891207AA38
ISIN (Reg S) | USC89120AA58
Issue Price | 98.50% of par
Coupon | 8.750% per annum, semi-annual (April 15 / October 15)
Maturity Date | April 15, 2029
First Interest Payment Date | October 15, 2022
Prepared by Contact | Audrey Zhou, Lead Associate, Calderwood & Harkness LLP
Reviewed by | Vivienne St. Claire, Responsible Partner, Calderwood & Harkness LLP
Note | All wire transfers to be initiated on April 19, 2022 upon confirmation of Notes issuance and settlement through DTC (144A) and Thackeray Partners LLC/Ashgrove Enterprises (Reg S). All amounts in U.S. dollars unless otherwise noted.
[sheet: Proceeds Waterfall]
Line Item | Description | Amount (USD) | Calculation / Reference
A. Aggregate Principal Amount | Face value of 8.750% Senior Secured Notes due 2029 | $300,000,000 | Fixed per Indenture
B. Issue Price | 98.50% of par | $295,500,000 | $300,000,000 × 0.985
C. Original Issue discount (OID) | 1.50% of par | ($4,500,000) | $300,000,000 × 0.015
GROSS PROCEEDS FROM INVESTORS | Cash received from Initial Purchasers on behalf of investors | $295,500,000 | A × 98.50%
D. Less: Initial Purchaser discount | 2.25% of aggregate principal amount | ($6,750,000) | $300,000,000 × 0.0225; see allocation on IP discount tab
  D.1 — Kelvantis Capital Markets LLC (60%) | Lead Initial Purchaser / Book-Runner | ($4,050,000) | $6,750,000 × 60%
  D.2 — Prestige Barrington & Co., Inc. (25%) | Co-Manager / Initial Purchaser | ($1,687,500) | $6,750,000 × 25%
  D.3 — Halcyon Securities Inc. (15%) | Co-Manager / Initial Purchaser | ($1,012,500) | $6,750,000 × 15%
NET PROCEEDS TO ISSUER (after IP discount) | Wired to Torchlight Mining Corp. escrow/operating account | $288,750,000 | $295,500,000 − $6,750,000
E. Less: Estimated Other Transaction Fees & Expenses | Legal, trustee, ratings, printing, misc. | ($3,000,000) | Estimated; see Disbursements tab for detail
NET CASH AVAILABLE FOR USE OF PROCEEDS | After all fees, discounts, and expenses | $285,750,000 | $288,750,000 − $3,000,000
USE OF PROCEEDS ALLOCATION
F. Ridgeline Bank of Canada — Revolving Facility Payoff | Repayment of CAD $140,000,000 drawn amount + accrued | $110,250,000 | CAD $140,000,000 × 0.7875 USD/CAD
G. Phase II Wolverine Lake Mine Expansion CapEx | Funded to Torchlight operating account for Phase II capital expenditures | $167,000,000 | Per Offering Memorandum
H. General Corporate Purposes & Working Capital | Residual to Torchlight operating account | $8,500,000 | $285,750,000 − $110,250,000 − $167,000,000
TOTAL USE OF PROCEEDS | $285,750,000 | F + G + H = $285,750,000 ✓
TOTAL TRANSACTION FEES & EXPENSES | OID + IP discount + Other expenses | $14,250,000 | $4,500,000 + $6,750,000 + $3,000,000
CHECK: Aggregate Principal − Total Fees = Net Proceeds | $285,750,000 | $300,000,000 − $14,250,000 = $285,750,000 ✓
[sheet: Disbursements Detail]
Item No. | Payee | Description / Purpose | Amount (USD) | Currency if Non-USD | FX Rate | Amount in Local Currency | Wire Reference | Notes
1 | Ridgeline Bank of Canada | Full payoff of CAD $225,000,000 revolving credit facility (CAD $140,000,000 drawn principal + accrued interest and fees); facility to be terminated and all liens released upon receipt | $110,250,000 | CAD | 0.7875 | CAD $140,000,000 | TMC-RIDGELINE-PAYOFF-041922 | Per Payoff Letter executed by Gavin Forde, Relationship Manager; accrued interest/fees included in total; PPSA discharge filings coordinated with Pendleton Ross LLP
2 | Calderwood & Harkness LLP | Legal fees — Issuer's U.S. Counsel (estimated; final invoice to follow) | $1,325,000 | USD | N/A | N/A | TMC-SC-FEES-041922 | Estimated within $1,200,000–$1,450,000 range per engagement letter; includes $150,000 completion fee payable upon closing; expenses subject to $75,000 cap (excl. mine site travel); Matter No. 1039-00002
3 | Pendleton Ross LLP | Legal fees — Issuer's Canadian Counsel | $425,000 | USD | N/A | N/A | TMC-PR-FEES-041922 | Canadian securities law and CBCA opinions; Marie-Claire Bouchard, Lead Partner
4 | Clairmont & Voss LLP | Legal fees — Initial Purchasers' U.S. Counsel (payable by Issuer per Purchase Agreement) | $575,000 | USD | N/A | N/A | TMC-CV-FEES-041922 | Harrison Voss, Lead Partner; Matter Ref. 1039-00002
5 | Greystone & Whitfield LLP | Legal fees — Initial Purchasers' Canadian Counsel (payable by Issuer per Purchase Agreement) | $175,000 | USD | N/A | N/A | TMC-GW-FEES-041922 | David Shin, Lead Partner
6 | Northern Dominion Trust Company | Trustee acceptance fee and first-year annual fee — Indenture Trustee, Collateral Agent, Paying Agent, Transfer Agent, Registrar | $75,000 | USD | N/A | N/A | TMC-NDT-TRUSTEE-041922 | Sandra Leung, VP Corporate Trust; 101 Barclay Street, 7th Floor, New York, NY 10286
7 | Northmark Ratings Group, Inc. | Rating agency fee — B1 rating (stable outlook) assigned March 7, 2022 | $175,000 | USD | N/A | N/A | TMC-NORTHMARK-RATING-041922 | 250 Greenwich Street, New York, NY 10007
8 | Creston Analytics, Inc. | Rating agency fee — B+ rating (stable outlook) assigned March 7, 2022 | $150,000 | USD | N/A | N/A | TMC-CRESTON-RATING-041922 | 55 Water Street, New York, NY 10041
9 | Printing / EDGAR / Miscellaneous | OM printing, document production, closing binders, miscellaneous closing costs | $100,000 | USD | N/A | N/A | TMC-MISC-041922 | Estimated
10 | Torchlight Mining Corp. — Operating Account | Residual proceeds for Phase II Wolverine Lake Mine expansion CapEx and general corporate purposes / working capital | $175,500,000 | USD | N/A | N/A | TMC-OPERATING-041922 | Comprised of: $167,000,000 Phase II CapEx + $8,500,000 working capital / general corporate purposes; 2200 – 400 Burrard Street, Vancouver, BC V6C 3A6
TOTAL DISBURSEMENTS | $288,750,000 | Equals Net Proceeds to Issuer after IP discount ✓
[sheet: IP discount Allocation]
Initial Purchaser | Role | Allocation Percentage | Discount Amount (USD) | Contact Person | Office Address | Wire Reference
Kelvantis Capital Markets LLC | Lead Initial Purchaser / Book-Running Manager | 60% | $4,050,000 | Julian Marchetti, Head of HY Origination, Metals & Mining; Christine Yee, MD, Syndicate | 599 Lexington Avenue, 38th Floor, New York, NY 10022 | TMC-KELVANTIS-IPD-041922
Prestige Barrington & Co., Inc. | Co-Manager / Initial Purchaser | 25% | $1,687,500 | Keith O'Sullivan, MD, Debt Capital Markets | 1285 Avenue of the Americas, 22nd Floor, New York, NY 10019 | TMC-PRESTIGE-IPD-041922
Halcyon Securities Inc. | Co-Manager / Initial Purchaser | 15% | $1,012,500 | Priya Mehrotra, Director, High Yield | 200 Park Avenue, Suite 3100, New York, NY 10166 | TMC-HALCYON-IPD-041922
TOTAL | 100% | $6,750,000
[sheet: Wire Instructions]
Payee | Bank Name | ABA / Routing / SWIFT | Account Name | Account Number | Reference / Memo | Amount (USD) | Special Instructions
Ridgeline Bank of Canada | [Correspondent Bank TBD] | [SWIFT TBD] | Ridgeline Bank of Canada — Revolving Facility Payoff Account | [Acct No. TBD] | TMC-RIDGELINE-PAYOFF-041922; Ref: Torchlight Mining Corp. CAD $225M RCF Payoff | $110,250,000 | Wire in USD; Ridgeline to confirm payoff amount inclusive of accrued interest and breakage fees on T-1 (April 18, 2022); Gavin Forde to provide final payoff letter and release confirmation
Calderwood & Harkness LLP | [Bank TBD] | [ABA TBD] | Calderwood & Harkness LLP Client Trust Account | [Acct No. TBD] | TMC-SC-FEES-041922; Matter No. 1039-00002 | $1,325,000 | Estimated; final invoice to be reconciled post-closing
Pendleton Ross LLP | [Bank TBD] | [Routing TBD] | Pendleton Ross LLP Trust Account | [Acct No. TBD] | TMC-PR-FEES-041922 | $425,000
Clairmont & Voss LLP | [Bank TBD] | [ABA TBD] | Clairmont & Voss LLP Operating Account | [Acct No. TBD] | TMC-CV-FEES-041922; C&V Matter Ref. 1039-00002 | $575,000 | Payable by Issuer per Purchase Agreement
Greystone & Whitfield LLP | [Bank TBD] | [Routing TBD] | Greystone & Whitfield LLP Trust Account | [Acct No. TBD] | TMC-GW-FEES-041922 | $175,000
Northern Dominion Trust Company | [Bank TBD] | [ABA TBD] | Northern Dominion Trust Company — Corporate Trust | [Acct No. TBD] | TMC-NDT-TRUSTEE-041922 | $75,000 | 101 Barclay Street, 7th Floor, New York, NY 10286; Sandra Leung, VP
Northmark Ratings Group, Inc. | [Bank TBD] | [ABA TBD] | Northmark Ratings Group, Inc. | [Acct No. TBD] | TMC-NORTHMARK-RATING-041922 | $175,000 | 250 Greenwich Street, New York, NY 10007
Creston Analytics, Inc. | [Bank TBD] | [ABA TBD] | Creston Analytics, Inc. | [Acct No. TBD] | TMC-CRESTON-RATING-041922 | $150,000 | 55 Water Street, New York, NY 10041
Printing / Misc. Vendors | [Bank TBD] | [ABA TBD] | [Vendor TBD] | [Acct No. TBD] | TMC-MISC-041922 | $100,000 | To be allocated among vendors; Issuer to direct
Torchlight Mining Corp. — Operating Account | [Bank TBD] | [Routing / SWIFT TBD] | Torchlight Mining Corp. General Operating Account | [Acct No. TBD] | TMC-OPERATING-041922 | $175,500,000 | 2200 – 400 Burrard Street, Vancouver, BC V6C 3A6; Colleen Hébert, Treasurer, to confirm instructions
Kelvantis Capital Markets LLC (IP discount — retained from gross proceeds) | [Bank TBD] | [ABA TBD] | Kelvantis Capital Markets LLC | [Acct No. TBD] | TMC-KELVANTIS-IPD-041922 | $4,050,000 | Retained by Kelvantis from gross proceeds prior to remittance to Issuer; 599 Lexington Avenue, 38th Floor, New York, NY 10022
Prestige Barrington & Co., Inc. (IP discount — retained from gross proceeds) | [Bank TBD] | [ABA TBD] | Prestige Barrington & Co., Inc. | [Acct No. TBD] | TMC-PRESTIGE-IPD-041922 | $1,687,500 | Retained from gross proceeds; 1285 Avenue of the Americas, 22nd Floor, New York, NY 10019
Halcyon Securities Inc. (IP discount — retained from gross proceeds) | [Bank TBD] | [ABA TBD] | Halcyon Securities Inc. | [Acct No. TBD] | TMC-HALCYON-IPD-041922 | $1,012,500 | Retained from gross proceeds; 200 Park Avenue, Suite 3100, New York, NY 10166
TOTAL — ALL OUTFLOWS | $295,500,000 | Issuer Disbursements ($288,750,000) + IP Retentions ($6,750,000) = Gross Proceeds ($295,500,000) ✓
[sheet: Reconciliation & Controls]
Check Item | Expected | Actual / Calculated | Status | Reference
Aggregate Principal Amount | $300,000,000 | $300,000,000 | ✓ Confirmed | Per Indenture dated April 19, 2022
Gross Proceeds (Issue Price × Principal) | $295,500,000 | $295,500,000 | ✓ Confirmed | $300,000,000 × 98.50%
Original Issue discount (OID) | $4,500,000 | $4,500,000 | ✓ Confirmed | $300,000,000 × 1.50%
Total IP discount | $6,750,000 | $6,750,000 | ✓ Confirmed | $300,000,000 × 2.25%
IP discount — Kelvantis (60%) | $4,050,000 | $4,050,000 | ✓ Confirmed | Per Purchase Agreement
IP discount — Prestige Barrington (25%) | $1,687,500 | $1,687,500 | ✓ Confirmed | Per Purchase Agreement
IP discount — Halcyon (15%) | $1,012,500 | $1,012,500 | ✓ Confirmed | Per Purchase Agreement
IP discount Sub-Total Check | $6,750,000 | $6,750,000 | ✓ Confirmed | $4,050,000 + $1,687,500 + $1,012,500
Net Proceeds to Issuer (after IP discount) | $288,750,000 | $288,750,000 | ✓ Confirmed | $295,500,000 − $6,750,000
Estimated Other Transaction Fees & Expenses | $3,000,000 | $3,000,000 | ✓ Confirmed | Sum of Disbursements Items 2–9
Total Transaction Fees & Expenses (OID + IP + Other) | $14,250,000 | $14,250,000 | ✓ Confirmed | $4,500,000 + $6,750,000 + $3,000,000
Net Cash Available for Use of Proceeds | $285,750,000 | $285,750,000 | ✓ Confirmed | $300,000,000 − $14,250,000
Use: Ridgeline Bank of Canada Payoff | $110,250,000 | $110,250,000 | ✓ Confirmed | CAD $140,000,000 × 0.7875 USD/CAD
Use: Phase II Expansion CapEx | $167,000,000 | $167,000,000 | ✓ Confirmed | Per Offering Memorandum
Use: Working Capital / General Corporate | $8,500,000 | $8,500,000 | ✓ Confirmed | $285,750,000 − $110,250,000 − $167,000,000
Total Uses | $285,750,000 | $285,750,000 | ✓ Balanced | Sum of all uses
Total Issuer Disbursements (from Disbursements tab) | $288,750,000 | $288,750,000 | ✓ Confirmed | Sum of Items 1–10
Grand Total Outflows (Disbursements + IP Retentions) | $295,500,000 | $295,500,000 | ✓ Confirmed | = Gross Proceeds
FX Rate Applied (USD/CAD) | 0.7875 | 0.7875 | ✓ Confirmed | Per Offering Memorandum; rate used for Ridgeline payoff conversion
Ridgeline Facility (Committed / Drawn) | CAD $225M / CAD $140M | CAD $225M / CAD $140M | ✓ Confirmed | Facility to be terminated and all liens released at closing
Closing Date Confirmed | April 19, 2022 | April 19, 2022 | ✓ Confirmed | Extended from original April 5, 2022 due to Canadian regulatory clearance timing

[sheet: Cover & Summary]

USE OF PROCEEDS ALLOCATION

Record

Parties

Dates

Amounts