Policy Statement to Regulation 51-105 Respecting Issuers Quoted in the U.S. Over-the-Counter Markets

Policy Statement to Regulation 51-105 June 9, 2023 Page 1 Last Amendments in force on June 9, 2023 POLICY STATEMENT TO REGULATION 51-105 RESPECTING ISSUERS QUOTED IN THE U.S. OVER-THE-COUNTER MARKETS PART 1 GENERAL COMMENTS

1. Introduction Regulation 51-105 respecting Issuers Quoted in the U.S. Over-the-Counter Markets (c. V-1.1, r. 24.1) (Regulation) applies in every jurisdiction of Canada, except Ontario, and has been implemented as a rule or regulation in all jurisdictions, except Ontario. This Policy Statement sets out how the Canadian Securities Administrators (we) interpret or apply the provisions of the Regulation and related securities legislation. Except for Part 1, the numbering of Parts and sections in this Policy Statement corresponds to the numbering in the Regulation. Any general guidance for a Part appears immediately after the Part name. Specific guidance on sections in the Regulation follows any general guidance. If there is no guidance for a section, the numbering in this Policy Statement will skip to the next provision that does have guidance. The Regulation designates or determines as a reporting issuer (OTC reporting issuer) in a jurisdiction of Canada an issuer that: (a) has issued a class of securities that are quoted on any of the over-the￾counter markets in the United States of America, including the OTC Bulletin Board, the OTC Markets and reported in the grey markets, and has no securities listed on another North American exchange or quotation and trade reporting system listed in the Regulation (OTC issuer), and (b) meets one or more of the tests for a significant connection to that jurisdiction set out in section 3 of the Regulation. We consider NEX to be part of the TSX Venture Exchange for the purposes of the Regulation. An OTC reporting issuer must comply with the requirements of securities legislation that apply to reporting issuers in that jurisdiction generally. The Regulation requires an OTC reporting issuer to make some additional disclosure, and restricts the use of some of the prospectus, take-over bid and disclosure exemptions.

Policy Statement to Regulation 51-105 June 9, 2023 Page 2 Because an OTC reporting issuer is likely to be an unlisted reporting issuer under Regulation 45-106 respecting Prospectus Exemptions (c. V-1.1, r. 21), section 2.25 of that regulation applies to distributions of the issuer’s securities by the issuer or a control person to a director, executive officer, employee, consultant or other person described in section 2.24 of that regulation. Section 2.25 of that regulation requires non-management shareholders to approve those distributions if the limitations in that section are exceeded. 1.1. Electronic transmission Regulation 13-103 respecting System for Electronic Data Analysis and Retrieval +(SEDAR+) (chapter V-1.1, r. 2.3) prescribes that each document that is required or permitted to be provided to a regulator, except in Québec, or securities regulatory authority must be transmitted to the regulator, except in Québec, or securities regulatory authority electronically through the System for Electronic Data Analysis and Retrieval +(SEDAR+). The reference to a document includes any report, form, application, information, material and notice, as well as a copy thereof, and applies to documents that are required or permitted to be filed or deposited with, or delivered, furnished, sent, provided, submitted or otherwise transmitted to, a regulator, except in Québec, or securities regulatory authority. To reflect the phased implementation of SEDAR+, the Appendix of Regulation 13-103 respecting System for Electronic Data Analysis and Retrieval +(SEDAR+) sets out securities legislation under which documents are excluded from being filed or delivered in SEDAR+. Regulation 13-103 respecting System for Electronic Data Analysis and Retrieval +(SEDAR+) should be consulted when providing any document to a regulator, except in Québec, or securities regulatory authority under the Regulation and this Policy Statement. 2. Definitions Unless defined in the Regulation, terms used in the Regulation or in this Policy Statement have the meaning given to them in the securities legislation of each jurisdiction, in Regulation 14-101 respecting Definitions (c. V-1.1, r. 3) or in Regulation 51-102 respecting Continuous Disclosure Obligations (c. V-1.1, r. 24). For example, (a) “reporting issuer” is defined in the securities legislation of each jurisdiction, (b) “1934 Act”, “local jurisdiction”, “jurisdiction of Canada”, “prospectus requirement”, “securities legislation”, and “SEC” are defined in Regulation 14-101 respecting Definitions, and (c) “AIF” and “MD&A” are defined in Regulation 51-102 respecting Continuous Disclosure Obligations.

Policy Statement to Regulation 51-105 June 9, 2023 Page 3 3. Reporting issuer designation and determination General The Regulation has been adopted as a local rule or regulation in each jurisdiction of Canada, except Ontario. The OTC reporting issuer designation and determination is made on a jurisdiction by jurisdiction basis as is the case for determination of reporting issuer status under Canadian securities legislation. The connecting factors in section 3 of the Regulation prescribe whether or not an issuer is an OTC reporting issuer and therefore subject to the Regulation. We think that a news release stating that it is “not for dissemination in Canada” is not a substitute for an analysis of the connecting factors. Direction and administration of business An OTC issuer’s business may be directed or administered in or from more than one jurisdiction. For the purposes of section 3 of the Regulation, generally, we will consider that an OTC issuer’s business is directed or administered in or from a jurisdiction if: (a) its head office, or another office where executive functions take place, is located in that jurisdiction, (b) some or all of its directors are located in that jurisdiction, or (c) any director, officer, consultant or other person who carries out executive functions for the issuer does so from an office in that jurisdiction, or is resident in that jurisdiction. Executive functions are those of a president, a vice president, a secretary, a treasurer or a general manager of a corporation or other entity, or the chair of a board of directors, normally performs. These functions include responsibility for important corporate activities such as exploration, product development, asset acquisition and development, financing, investor relations and operations. Generally, we will not consider that an OTC issuer’s business is directed or administered in or from a jurisdiction if the only connection to the jurisdiction is the location, in the jurisdiction, of: (a) an asset of the issuer, such as a mineral property or distribution or warehouse facility, or (b) sales personnel, or an expert, none of whom performs executive functions for the issuer.

Policy Statement to Regulation 51-105 June 9, 2023 Page 4 Promotional activities If an OTC issuer employs or retains an individual or a firm located in a jurisdiction of Canada to conduct promotional activities, we will likely conclude that the OTC issuer is carrying out promotional activities from that jurisdiction. The Regulation defines “promotional activities.” For the purposes of the Regulation, we will consider generally that these activities include communications through an investment newsletter or other publication that promotes, or reasonably could be expected to promote, the purchase or sale of securities of the OTC issuer. Generally, we will consider that these activities also include providing information to potential investors who request information, or to potential private placement investors. We will consider that an OTC issuer is carrying out promotional activities in a jurisdiction of Canada if it communicates from anywhere with persons in that jurisdiction, or communicates from a jurisdiction of Canada with persons anywhere, in a way that promotes, or reasonably could be expected to promote, the purchase or sale of its securities. Ticker-symbol date In the Regulation, the ticker-symbol date is the date an issuer is first assigned a ticker-symbol on any market or quotation and trade reporting system anywhere in the world. If an issuer’s ticker-symbol changes, that is not a “ticker-symbol date” under the Regulation. New OTC issuers If an OTC issuer has distributed a security to a resident of a jurisdiction of Canada before the ticker-symbol date, it will be a reporting issuer under paragraph 3(c) of the Regulation if the security distributed is of the class of securities that became the issuer’s OTC-quoted securities. This provision applies only to an OTC issuer with a ticker-symbol date on or after the effective date of the Regulation in that jurisdiction. An issuer with a ticker-symbol date prior to the effective date does not become an OTC reporting issuer until it meets the conditions in section 3(a) or (b) of the Regulation. The condition in (c) which makes an issuer an OTC reporting issuer if it sells seed stock to a Canadian resident only applies to an issuer whose ticker-symbol date is on or after the effective date of the Regulation. Application to existing reporting issuers The Regulation applies to a reporting issuer that meets the definition of an “OTC issuer” in section 1 of the Regulation and to an issuer that has become a reporting issuer under section 3 of the Regulation.

Policy Statement to Regulation 51-105 June 9, 2023 Page 5 4. Ceasing to be an OTC reporting issuer OTC reporting issuers may cease to be OTC issuers as well as cease to be reporting issuers. In certain circumstances, they may cease to be OTC issuers but remain reporting issuers in one or many of the jurisdictions. Ceasing to be an OTC issuer and a reporting issuer in jurisdictions other than Québec Other than in Québec, an OTC reporting issuer may cease to be an OTC issuer and a reporting issuer under one of the following three circumstances: (a) it satisfies all the conditions in subsection 4(1) of the Regulation, including filing Form 51-105F1 Notice - OTC Issuer Ceases to be an OTC Reporting Issuer, and it does not otherwise meet the definition of reporting issuer in securities legislation; (b) it ceases to be an OTC issuer because a class of its securities becomes listed or quoted on an exchange or a quotation and trade reporting system listed in section 1 of the Regulation, it has filed Form 51-105F4 Notice – Issuer Ceases to be an OTC Reporting Issuer and it does not otherwise meet the definition of reporting issuer in securities legislation; (c) it receives an order from the securities regulatory authority in the jurisdiction that it is no longer a reporting issuer in that jurisdiction. Ceasing to be an OTC issuer and a reporting issuer in Québec In Québec, an OTC reporting issuer may cease to be an OTC issuer and a reporting issuer if pursuant to making an application for a decision to revoke its OTC reporting issuer status, it receives an order from the securities regulatory authority that it is no longer a reporting issuer. The application must be made pursuant to section 69 of the Securities Act (Québec). Other cessation procedures unavailable BC Instrument 11-502 Voluntary Surrender of Reporting Issuer Status and CSA Staff Notice 12-307 Applications for a Decision that an Issuer is not a Reporting Issuer are not available to an OTC reporting issuer. Regaining OTC reporting issuer status An OTC reporting issuer that ceases to be an OTC reporting issuer might become an OTC reporting issuer again if its circumstances change. For example, an OTC reporting issuer that ceased to be an OTC reporting issuer because it satisfied all the conditions in subsection 4(1) of the Regulation and did not otherwise meet the definition of reporting issuer in securities legislation, or, in Québec, obtained a decision revoking its reporting issuer status, would again become an OTC reporting issuer if it subsequently re-located its head office to a jurisdiction of Canada and was an OTC issuer at that time.

Policy Statement to Regulation 51-105 June 9, 2023 Page 6 Ceasing to be an OTC issuer but remaining a reporting issuer An OTC reporting issuer that ceases to be an OTC reporting issuer under the Regulation continues to be a reporting issuer under securities legislation if it meets the definition of reporting issuer in securities legislation. For example, if an issuer ceases to be an OTC reporting issuer because its securities have become listed on NASDAQ, it would remain a reporting issuer under securities legislation if it had filed and obtained a receipt for a prospectus in a jurisdiction of Canada or if it has exchanged its securities with another reporting issuer in a jurisdiction of Canada or with the holders of the securities of that other reporting issuer in connection with an amalgamation. Forms to be filed on ceasing to be an OTC reporting issuer in jurisdictions other than Québec Subsection 4(1) of the Regulation provides that, except in Québec, if an OTC reporting issuer has no significant connection to any jurisdiction of Canada for at least one year, it may cease to be an OTC reporting issuer on filing Form 51-105F1 Notice - OTC Issuer Ceases to be an OTC Reporting Issuer. Form 51-105F1 also requires the issuer to disclose whether or not it will remain a reporting issuer in a jurisdiction of Canada. Form 51-105F4 Notice - Issuer Ceases to be an OTC Reporting Issuer is the form that is required to be filed, except in Québec, for an OTC reporting issuer that ceases to be an OTC issuer because a class of its securities becomes listed or quoted on an exchange or a quotation and trade reporting system listed in section 1 of the Regulation. Form 51-105F4 requires the issuer to disclose whether or not it will remain a reporting issuer in a jurisdiction of Canada. If the issuer will not remain a reporting issuer in a jurisdiction of Canada, filing the form will help prevent the securities regulatory authorities from placing the issuer on the defaulting issuer list, or cease trading the issuer’s securities, for failure to file documents. PART 2 DISCLOSURE 5. Additional disclosure requirements Regulations An OTC reporting issuer has the same disclosure obligations as other reporting issuers under securities legislation, subject to Part 2 of the Regulation. For example, an OTC reporting issuer is subject to requirements in addition to those described in the Regulation, including: (a) Regulation 43-101 respecting Standards of Disclosure for Mineral Projects (c. V-1.1, r. 15), which will require most OTC reporting issuers in the mineral business to file with their first AIF a technical report for each material mineral property;

Policy Statement to Regulation 51-105 June 9, 2023 Page 7 (b) Regulation 51-101 respecting Standards of Disclosure for Oil and Gas Activities (c. V-1.1, r. 23), which will require most OTC reporting issuers in the oil and gas business to file, when they first file audited annual financial statements, a statement of reserves data and other information, a report of an independent qualified reserves auditor, and a related report of management and directors; (c) Regulation 52-107 respecting Acceptable Accounting Principles and Auditing Standards (c. V-1.1, r. 25) which sets out the accounting principles and auditing standards that must be used by reporting issuers; (d) Regulation 52-108 respecting Auditor Oversight (c. V-1.1, r. 26) which sets out the requirements that must be satisfied by auditors of reporting issuers, including the requirement that an auditor must be a participating audit firm with the Canadian Public Accountability Board; (e) Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure (chapter V-1.1, r. 28.1) which sets out disclosure requirements for non-GAAP financial measures and certain other financial measures. Most regulations that impose disclosure obligations have policy statements that also provide guidance. Policy Statements The following policy statements provide additional guidance to reporting issuers about disclosure obligations; (a) National Policy 51-201 Disclosure Standards (Décision 2002-C-0244); (b) Policy Statement 58-201 to Corporate Governance Guidelines (Décision 2005-PDG-0196). Disclosure obligations of insiders of OTC reporting issuers Insiders of an OTC reporting issuer have the same disclosure obligations as insiders of other reporting issuers under Canadian securities legislation. Exemptions for SEC filers and their insiders An OTC reporting issuer that has a class of securities registered under section 12 of the 1934 Act or is required to file reports under paragraph 15(d) of that Act may have exemptions from most continuous disclosure requirements available to it. However, section 6 of the Regulation provides that an OTC reporting issuer is not exempt from material change reporting requirements. An OTC reporting issuer must comply with the same timely disclosure requirements for material change reporting as other reporting issuers. The requirements are to issue a news release and file the news release and a material change report on

Policy Statement to Regulation 51-105 June 9, 2023 Page 8 SEDAR+. An OTC reporting issuer that files Form 8-K Current Report with the SEC disclosing the material change may file Form 8-K Current Report on SEDAR as its material change report. An insider of an OTC reporting issuer that is incorporated outside of Canada and is an SEC filer is exempted from insider reporting requirements if the insider files insider reports with the SEC under U.S. federal securities law. However, an insider of an OTC reporting issuer that is exempted from filing insider reports under U.S. federal securities law must file insider reports in Canada. The most common exemptions from continuous disclosure requirements for SEC filers and their insiders are in: (a) Regulation 51-102 respecting Continuous Disclosure Obligations (c. V-1.1, r. 24); (b) Regulation 52-107 respecting Acceptable Accounting Principles and Auditing Standards; © Regulation 52-109 respecting Certification of Disclosure in Issuers’ Annual and Interim Filings (c. V-1.1, r. 25); (d) Regulation 58-101 respecting Disclosure of Corporate Governance Practices (c. V-1.1, r. 32); (e) Regulation 71-101 respecting The Multijurisdictional Disclosure System (c. V-1.1, r. 36); (f) Regulation 71-102 respecting Continuous Disclosure and Other Exemptions relating to Foreign Issuers (c. V-1.1, r. 37). Exemptions for designated foreign issuers and their insiders The continuous disclosure and other exemptions for a designated foreign issuer under Regulation 71-102 respecting Continuous Disclosure and Other Exemptions Relating to Foreign Issuers are available to an OTC reporting issuer that is a designated foreign issuer. 7. Registration statement The requirement to file a registration statement under section 7 of the Regulation applies only to an issuer that becomes an OTC reporting issuer under the Regulation on its ticker-symbol date. If it does, then it must file the last registration statement it filed with the SEC.

Policy Statement to Regulation 51-105 June 9, 2023 Page 9 8. Promotional activities The required form under section 8 of the Regulation is Form 51-105F2 Notice of Promotional Activities. If the promotional activities are a material change then the requirements for material change reporting apply. In that case, the OTC reporting issuer may comply with its obligation to file a news release under section 7.1 of Regulation 51-102 respecting Continuous Disclosure Obligations (c. V-1.1, r. 24) by including in Form 51-105F2 Notice of Promotional Activities the information required by section 7.1(a) of Regulation 51-102 respecting Continuous Disclosure Obligations. 10. Personal information form and authorization Securities regulatory authorities do not make any of the information provided in these forms public, unless required under freedom of information legislation. PART 3 RESALE OF PRIVATE PLACEMENT SECURITIES 11. Resale of seed stock The restrictions on resale of seed stock in Part 3 of the Regulation apply only to seed stock that a person purchases after the effective date of the Regulation. A person who acquires a security of the issuer after the effective date and before the ticker-symbol date may sell that security using any available exemption until the issuer’s ticker-symbol date. On and after an OTC reporting issuer’s ticker-symbol date, a person who acquires a security of the issuer after the effective date and before the ticker-symbol date may trade that security only under the circumstances and conditions set out in section 11 of the Regulation. 13. Resale of private placement securities acquired after ticker-symbol date Section 13 of the Regulation restricts the resale of securities acquired in a private placement after the issuer’s ticker-symbol date to trades that meet the conditions of the section, which include a hold period, volume limitations, and a requirement that the sale be made through an investment dealer who executes the trade through an over-the￾counter market in the United States of America. No other exemptions from the prospectus requirement(s) apply to the first trade by a holder of a security of an OTC reporting issuer distributed to that person after the ticker￾symbol date under an exemption from the prospectus requirement(s). PART 4 OTHER RESTRICTIONS 15. Securities for services

Policy Statement to Regulation 51-105 June 9, 2023 Page 10 An OTC issuer may only issue securities for services to any of its directors, officers, or consultants if the conditions in this section are met and there is an available exemption from the prospectus requirements. PART 5 EXEMPTION Exemptive relief requests from the application of the Regulation will be considered on a coordinated review basis under section 3.4 of Policy Statement 11-203 respecting Process for Exemptive Relief Applications in Multiple Jurisdictions (Décision 2008-PDG￾0061). This section states that the principal regulator reviews the application, and each non-principal regulator coordinates its review with the principal regulator. The decision of the principal regulator to grant exemptive relief evidences the decision of each non￾principal regulator that has made the same decision as the principal regulator. For an application for an exemption from a requirement in the Regulation, the factors a filer should consider in identifying the principal regulator for the application based on the most significant connection test are, in order of influential weight: (a) location of direction or administration of the OTC reporting issuer’s business; if direction or administration of the OTC reporting issuer’s business occurs in more than one location, the location of the OTC reporting issuer’s most senior officer, (b) location of conduct of majority of promotional activities of the OTC reporting issuer, an©(c) location of majority of Canadian security holders of the OTC reporting issuer. PART 6 TRANSITION AND COMING INTO FORCE 19. Trans–tion - financial disclosure for non-SEC filers The Regulation provides a transition period for an OTC reporting issuer that is not an SEC filer. The transition period does not apply in British Columbia. (a) annual – the issuer’s first financial year for which it must file annual financial statements and related MD&A is the financial year that begins on or after January 1, 2012. Therefore, an issuer whose financial year ends on December 31, 2012 would be required to file its first annual audited financial statements and related MD&A for the financial year ended December 31, 2012. The filing deadline would be 120 days later, on April 30, 2013. (b) interim – the issuer’s first period for which it must file interim financial reports and related MD&A begins on or after January 1, 2012 and ends after July 31, 2012. Therefore, an issuer whose financial year ends on December 31, 2011 would be required to file its first interim financial reports and related MD&A for the nine￾month period ended September 30, 2012. The filing deadline would be 60 days later, on November 29, 2012.

Policy Statement to Regulation 51-105 June 9, 2023 Page 11 Section 4.1 of Regulation 51-102 respecting Continuous Disclosure Obligations (c. V-1.1, r. 24) requires an issuer to file annual financial statements that include comparative information for the immediately preceding year and that are audited. An OTC reporting issuer must ensure that it has financial statements for its comparative period audited. Sections 3.9 and 3.10 of Regulation 52-107 respecting Acceptable Accounting Principles and Auditing Standards (c. V-1.1, r. 25) state the requirements for acceptable accounting principles and acceptable auditing standards for foreign issuers. Décision 2012-PDG-0140, 2012-07-03 Bulletin de l’Autorité: 2012-07-26, Vol. 9, n° 30 AMENDMENTS Décision 2021-PDG-0036, 2021-06-30 Bulletin de l’Autorité: 2021-08-05, Vol. 18, n° 31. Decision 2023-PDG-0018, 2023-04-27 Bulletin de l’Autorité : 2023-06-01, vol. 20 n° 21