Third Quarter 2019: Management Discussion & Analysis

ALTUS STRATEGIES PLC

MANAGEMENT'S DISCUSSION AND ANALYSIS

THREE AND NINE MONTH PERIODS ENDED 30 SEPTEMBER 2019

Company Registration No. 10746796 (England and Wales)

As approved for issue on 25 November 2019

ALTUS STRATEGIES PLC

MANAGEMENT'S DICSUSSION AND ANALYSIS

FOR THE PERIOD ENDED 30 SEPTEMBER 2019

GENERAL

This management discussion and analysis ("MD&A") of financial position and results of operations is prepared as at 25 November 2019 and should be read in conjunction with the interim unaudited condensed financial statements for the three month period ended 30 September 2019 and the annual audited consolidated financial statements of Altus Strategies plc (the "Company", or "Altus" and together with its subsidiaries "the Group") for the year ended 31 December 2018.

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS interpretations committee (IFRS IC) interpretations as adopted for use in the European Union and with IFRS and their interpretations issued by the IASB. The consolidated financial statements have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, (except as otherwise stated).

The financial statements have been prepared on a historical cost basis, as modified by the financial assets at fair value through profit or loss. The financial statements are prepared in British Pounds Sterling (£), which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest whole pound.

Additional information on the Company's activities can be found on the Company's website at www.altus-strategies.com and at https://beta.companieshouse.gov.uk/ and www.sedar.com.

DESCRIPTION OF BUSINESS

Altus is a public limited company incorporated and domiciled in England and Wales. The Company's shares have been listed on the AIM Market of the London Stock Exchange ("AIM") under the symbol "ALS" since 10 August 2017 and on the TSX Venture Exchange ("TSX-V") under the symbol "ALTS" since 6 June 2018.

The principal activity of the Group and Company is that of a project and royalty generator in the field of mineral exploration, with a focus on Africa. Our business model is to make and monetise mineral discoveries. We proactively seek joint venture partners to finance the exploration and development of the projects we have generated, in return for a share in their ownership and the payment of future royalties to Altus. Our goal is to create shareholder value by participating in the potentially substantial and long term returns on capital that can be made by making economic mineral discoveries. Risk diversification is at the heart of our philosophy, and we enact this by exploring for a variety of minerals across several jurisdictions. At the end of the quarter the Group had a diversified portfolio of eighteen projects, exploring for six different commodities across six countries. This diversification means that the Company's portfolio is constantly evolving: new licences are added, licences that are not considered to be a good prospect are relinquished and those for which exploration, remote sensing and sample analysis indicate that a potentially economic discovery can be made are actively marketed. Licences that are under JV partnerships are expected to be drilled, and the successful of these will result in mines being built and royalties accruing to Altus on the mineral assets produced.

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FORWARD LOOKING INFORMATION

This MD&A may contain "forward-looking statements" that reflect the Company's current expectations and projections about its future results. When used in this MD&A, words such as "estimate", "intend", "expect", "anticipate" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause Altus's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project and other factors.

The operating plan is also dependent on being able to raise new equity funds as required to ensure there are sufficient capital resources to acquire and explore new properties. Other factors which affect Altus' operating plan are gaining access to exploration properties by concluding agreements with local communities, and commodity prices. If any of these factors are affected negatively, such as joint venture partners being unable to raise sufficient capital to complete option agreements or if the Company is unable to raise sufficient capital of its own, there will be a significant impact on the Company's operating plan and on any forward-looking statements contained herein.

Any references made in this report to historical information, including historical geological and technical information cannot be verified. A qualified person ("Qualified Person") under the AIM rules and National Instrument 43-101 Standards of Disclosure of Mineral Projects of the Canadian Securities Administrators ("NI 43-101") has not verified the sampling, analytical, and test data underlying any such historical information. The Company has obtained historical information from sources that it believes to be reliable, and assumes it is accurate and complete in all material aspects. While the Company has carefully reviewed the available historical information, it cannot guarantee its accuracy and completeness. The forward looking information and statements included in this announcement are expressly qualified by this cautionary statement and are based on the beliefs, estimates and opinions of the Company on the date of this announcement. Except as required by securities laws the Company does not undertake any obligation to publicly update or revise any forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this MD&A or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified above and elsewhere in this MD&A, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by securities law.

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HIGHLIGHTS

Highlights for the three months ended 30 September 2019 and to the date of this report are as follows.

Corporate highlights:

• Joint venture term sheet signed with Glomin Services Ltd ("Glomin") on Lakanfla & Tabakorole gold projects in western and southern Mali
• Term sheet signed with Desert Gold Ventures Inc ("Desert Gold") for sale & royalty on Sebessounkoto Sud and Djelimangara gold projects in western Mali
• Option agreement signed on Toura nickel-cobalt project in eastern Côte d'Ivoire

Operational highlights:

• Gold discoveries on Zager VMS licence in northern Ethiopia
• Significant new prospect defined at Diba gold project, western Mali

Financial highlights:

• Balance of cash and marketable securities of £0.4m / C$0.7m (cash balance of £0.15m / C$0.24m and listed equity holdings of £0.27m / C$0.44m as at 30 September 2019)
• Cash outflow for operating activities of £0.27m / C$0.39m for 3 months ending 30 September 2019

Post period:

• Proposed strategic investment from La Mancha Holdings S.à.r.l, a Luxembourg-incorporated private gold investment company ("La Mancha") & separate non-brokered private placement, to raise aggregate gross proceeds of up to C$5,265,000 (approximately £3,088,000 / US$4,000,000)
• Extension to due diligence period granted to Glomin in respect of Mali JV
• Exploration update on Zager & Daro VMS projects in northern Ethiopia
• Completion of sale and royalty transaction with Desert Gold

OPERATIONS REPORT

Altus is a project and royalty generator which is focused on Africa. The Company's business model is to make mineral discoveries, prior to undertaking joint ventures with third parties who can earn up to a 100% equity interest in the Company's projects by financing the next stages of exploration, making milestone payments to the Company and entering a royalty agreement with the Company on future production.

Due to its large size, many parts of Africa remain under-explored or not explored at all. Altus believes that significant economic deposits can still to be discovered at or close to surface. Importantly, this means that in Africa the speed of discovery can potentially be faster and the cost of discovery can potentially be lower for shareholders, when compared to more mature mining jurisdictions.

At the reporting date, Altus had a diversified portfolio of eighteen precious metal (gold and silver) and base metal (copper, zinc, bauxite and iron ore) exploration projects across six African countries (Morocco, Ethiopia, Cameroon, Liberia, Côte d'Ivoire and Mali). The Company has two active joint ventures, with both its partners being listed on the Australian Stock Exchange ("ASX"). The Company's

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current partners are Resolute Mining Ltd (ASX: RSG) on the Company's Pitiangoma Est gold project in

southern Mali, and Canyon Resources Ltd (ASX: CAY) on the Company's Birsok & Mandoum bauxite project in central Cameroon. The Company has agreed to terminate the Canyon JV in return for 25 million shares in Canyon and to vend the JV licences to Canyon for a further 5 million shares in Canyon and a $1.50/t royalty (subject to the grant of a mining licence).

During the period Altus announced the signing of a Joint Venture Term Sheet with Glomin, a Mauritius based company, in respect of the Company's Lakanfla and Tabakorole gold projects located in western and southern Mali respectively. Following the end of the reporting period, the Company announced that the Term Sheet has been extended by both parties until 30 November 2019 to allow further time for the completion of due diligence by Glomin and final documentation. During the period, the Company also announced the signing of a Term Sheet with TSX-V listed Desert Gold in respect of the sale of the Sebessounkoto Sud and Djelimangara licences in western Mali in return for cash, equity milestone payments and 2.5% NSR royalty; post-period end, the Company announced the successful completion of this transaction.

During the period it was also announced that the Company had signed an option agreement with Firering holdings Limited in respect of the Toura nickel-cobalt licence located in Côte d'Ivoire in return for a cash payment, 5%-cappedfree-carried interest and a sliding scale royalty linked to the nickel price.

Altus also announced during the period that exploration had commenced on the Company's newly granted Zager licence in northern Ethiopia where multiple hard rock gold workings have been discovered, some of which are estimated to be up to 15m deep. On the Company's 100% owned Diba VMS project in western Mali, the discovery of a significant new target was announced, including a 1.2km long discontinuous gold in soil anomaly.

Post the period end, Altus announced that it had signed a non-binding Letter of Intent with La Mancha, a Luxembourg-incorporated private gold investment company, for a proposed strategic investment of 124,229,389 shares at a price of C$0.09 (approximately £0.053) per share for aggregate gross proceeds of C$11,180,645 (approximately £6,562,000 / US$8,500,000)

The following is a review of the Company's activities by jurisdiction and project during the period.

Mali Operations

At 30 September Altus held six projects in Mali. The projects are held through the Company's 100% owned subsidiary, LGN Holdings (BVI) Inc., which became part of the Group in January 2018 through a plan of arrangement with Legend Gold Corp. ("Legend"), which was previously listed on the TSX-V. Four of the projects (Korali Sud/Diba, Lakanfla, Djelimangara and Sebessounkoto Sud) are located in the Kayes region of western Mali, approximately 450km northwest of the capital city of Bamako; two projects (Tabakorole and Pitiangoma Est) are located in southern Mali, approximately 280km and 300km southeast of Bamako.

On 31 October the Company announced that it had sold two of the projects, namely the contiguous Djelimangara and Sebessounkoto Sud projects to Desert Gold in return for 3,000,000 shares in Desert Gold (with an approximate value of C$420,000), US$50,000 in cash and a 2.5% NSR.

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Korali Sud (Diba) Gold Project (83.1 km2), Western Mali

Korali Sud ("Diba") is located 13km southwest of the Sadiola gold mine, which is operated by AngloGold Ashanti (JSE: ANG, NYSE: AU, ASX: AGG), IAMGOLD (TSX: IMG, NYSE: IAG) and the Malian government. Both Sadiola and Korali Sud are situated on the Senegal-Malian shear corridor within the world renowned 'Kenieba window'.

Korali Sud hosts the Diba historical resource (see Table 1 below), as prepared for Legend by AMEC Americas Limited ("Technical Report and Mineral Resource Estimate Diba Badiazila Gold Property Mali, West Africa", 30 June 2013) and filed on SEDAR by Legend on 20 September 2013. A Qualified Person has not done sufficient work to classify this historical estimate as current mineral resources and Altus is not, therefore, treating this historical estimate as a current mineral resource. However, it remains relevant to the Project and Altus believes it is also reliable. To verify this historical estimate so that the resource can be considered current, Altus would be required to contract a qualified and independent consultant to review historical drilling data and prepare a resource estimate in accordance with NI 43-

101. The resource comprises stacked lenses which dip approximately 35-40 degrees ESE within the oxide zone.

Table 1: Diba project historical mineral resource

	Category	Tonnes (t)	Grade (g/t Au)	Metal (oz Au)
	Indicated	6,348,000	1.35	275,200
	Inferred	720,000	1.40	32,500

Notes: Applying a 0.5g/t cut-off grade and a US$1,200/oz gold price as reported in 2013 NI 43-101 technical report.

Historical drill results from the Diba prospect (unverified by the Group) include 12m at 20.66 g/t Au and 32m at 2.06 g/t Au. Diba has a potentially low mining strip ratio with relatively limited overburden and a high proportion of the potential ore is in the oxide zone. Deeper drilling at Diba targeting the sulphide zone has intersected 1.32 g/t Au over 45m (from 93m). The sulphide zone remains open at depth.

Oxide gold mineralisation at Diba is mainly found in saprolite that is within 50m of the surface, across a compact 1,200m² area drilled to date. The deposit is controlled by a number of structures, with gold occurring as fine-grained disseminations and localised high grade calcite-quartz veinlets.

Two drill targets have been defined within the licence area: Diba Northwest, a 2.6km2 soil anomaly which is immediately along strike and northwest of the current historic Diba resource, and Diba East, approximately 2km2 in size and located immediately to the east of the historic Diba resource. The Company has prepared a phase one exploration programme for Diba, which incorporates an initial 5,000m of drilling and is actively looking for a partner to progress this work.

During the quarter, the Company completed a systematic termite mound sampling programme and, as a result, confirmed the discovery of a new prospect at Diba SW, located approximately 0.5km and along strike of the Diba historical resource. The prospect is defined by a discontinuous 1.2km long gold in termite soil anomaly along the flanks of a ferricrete capped ridge and is also coincident with a VTEM

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geophysical anomaly. Based on the discovery of Diba SW, the Company undertook a reinterpretation of the historical geochemical, geophysical and topographical data at Diba which has successfully defined at least three further potential prospects, increasing the total number of new prospects at Diba to six. Given the number and potential scale of these prospects, Altus believes the opportunity to increase the size of the historic resource at Diba is considerable.

Lakanfla Gold Project (24 km2), Western Mali

Lakanfla is located 5km east of Korali Sud and 6.5km from (and considered to be geologically analogous to) the karst-type FE3 and FE4 open pits that form part of the Sadiola gold mine. It is also considered to be geologically analogous to the Yatela karst-type gold deposit, which was mined between 2001 and 2015, located 35km to the northwest.

The project hosts a significant number of active and historical artisanal gold workings which are coincident with major geochemical and gravity anomalies surrounding a granodiorite intrusion. Historical drilling (unverified by the Group) has returned encouraging intersections including 9.78 g/t Au over 12m and 5.20 g/t Au over 16m. Historical drilling targeted breccia mineralisation of the granodiorite, and intersected low grade gold mineralisation in limestones, voids and lose sands at depth, features which are indicative of a karst. A low gravity geophysical anomaly and corresponding surface slumps features, are also considered to be significant indicators. The karst targets remain to be drill tested.

During the period the Company signed a term sheet for a joint venture with Glomin Services Ltd on the Lakanfla project as well as on Tabakorole, a separate gold project, which is located in southeastern Mali. Subject to concluding a definitive agreement and the progress of the JV, Altus will receive up to US$1,450,000 in milestone cash payments and will retain a 2.5% Net Smelter Return ("NSR") royalty on the two projects. Post the period end, the Company announced that it had agreed with Glomin to extend the due diligence period until 30 November 2019.

Djelimangara & Sebessounkoto Sud Gold Projects (55 km2 and 28 km2), Western Mali Djelimangara is located 3km southeast of Korali Sud, and comprises four priority prospects: Sourounkoto, Kamana, Woyanda and Manankoto. These are characterised by gold-in-soil anomalies of up to 2.5km in length, coincident with hard rock gold workings in fine metasediments. Historical drilling (unverified by the Group) has reportedly returned encouraging intersections including 1.34 g/t Au over 30m. Sebessounkoto is located 15km southeast of Korali Sud. Historical trenching (unverified by the Group) undertaken by Barrick Gold Corporation ("Barrick") (formerly Randgold Resources) has reportedly returned up to 0.68 g/t Au over 61m. During 2018 the Group defined the Soa gold prospect covering a 2.7km long gold-in-soil anomaly, identified from mapping artisanal workings, and sampling spoil and termite mounds. Spoil samples returned up to 5.18 g/t Au, 3.98 g/t Au and 2.4 g/t Au.

During the period the Company announced that it had signed a term sheet with TSX-V listed Desert Gold Venture Inc, for the sale of and a royalty on both the Djelimangara and Sebessounkoto Sud gold projects. This includes an upfront payment of 3,000,000 Desert Gold shares with a current value of approximately C$420,000 and US$50,000 in cash on completion of the transaction, and an additional US$200,000 in cash and up to 5,000,000 additional Desert Gold shares in milestone payments. Finally, the transaction includes a 2.5% NSR of which 1.5% will be can be repurchased by Desert Gold for up to

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US$6.0m depending on the size of the NI 43-101 reserve at the time of a definitive feasibility study.

Following the period end the Company announced on 31 October 2019 the successful completion of the transaction with Desert Gold.

Tabakorole Gold Project (100 km2), Southern Mali

Tabakorole is located 280km south of the capital city of Bamako and sits on the Massagui Belt, which hosts the Morila gold mine operated by Barrick. Exploration to date has identified a 2.7km long shear zone which is up to 200m wide and hosts a historical mineral resource, see table 2 below. The resource was prepared in accordance with NI 43-101 by H. Andrew Daniels, Consulting Geologist, P.Geo in a report entitled "Technical Report on the Mineral Resource Update, June 2007 FT Project Mali, West Africa", dated July 27, 2007 and filed on SEDAR on July 27, 2007 by North Atlantic Resources Ltd. A Qualified Person has not done sufficient work to classify this historical estimate as current mineral resources and Altus is not, therefore, treating this historical estimate as a current mineral resource. However, it remains relevant to the Project and Altus believes it is also reliable. To verify this historical estimate so that the resource can be considered current, Altus would be required to contract a qualified and independent consultant to review historical drilling data and prepare a resource estimate in accordance with NI 43-101.

Historical drilling (unverified by the Group) has returned encouraging intersections including 16m at 9.31 g/t Au, 14m at 9.84 g/t Au and 60m at 2.91 g/t Au.

Table 2: Tabakorole project historical mineral resource

Category		Tonnes (t)	Grade (g/t Au)	Metal (Oz Au)
Oxide	Indicated	1,040,000	1.01	34,000
	Inferred	960,000	1.114	35,000
Sulphide	Indicated	6,840,000	0.94	207,000
	Inferred	9,590,000	1.03	318,000

The Tabakorole project was included in the joint venture term sheet signed with Glomin Services Ltd during the period (see Lakanfla project above).

Pitiangoma Est Gold Project (106 km2), Southern Mali

Pitiangoma Est is located 300km southeast of the capital city of Bamako. The licence is subject to a joint venture with ASX-listed Resolute Mining Limited and is located on the Syama shear zone, 15km from the Tabakoroni deposit and 40km from the Syama gold mine (both owned by Resolute). Resolute can earn up to a 70% interest in the project by funding US$3million in exploration and completing a feasibility study. Thereafter Altus may elect to co-fund its 30% interest on a pro rata basis, or exchange its interest for a 2% Net Smelter Return royalty.

Prior to the JV with Resolute, exploration at Pitiangoma Est included regolith sampling (6,930 soil and 1,230 auger samples), lithological mapping, airborne VTEM geophysics, BLEG stream sediment sampling and RC drilling (2,160m) as well as diamond drilling (6,450m). These work programmes were completed by Endeavour Mining Corporation who held the project prior to it being acquired by Legend Gold

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Corporation. Since the commencement of the JV, Resolute has reportedly completed a gradient array IP survey, 329 air core drill holes for a total of 14,193m and 7 RC drill holes for a total of 708m.

On 8 May 2019 the Company announced that it had signed a two-year extension to the joint venture with Resolute until May 2021. At the time of writing the Company is awaiting results from the most recent field exploration programme.

Cameroon Operations

Altus holds three projects in Cameroon including the Laboum gold project, held through the Company's 99% owned subsidiary, Auramin Ltd, and the Birsok & Mandoum bauxite project and the Bikoula & Ndjele iron ore project that are held though the Company's 97.3% owned subsidiary, Aluvance Ltd.

Laboum Gold Project (189 km2), Northern Cameroon

Laboum is located 600km northeast of the capital city of Yaoundé. The licence hosts a major Pan-African age, regional shear zone which is up to 5km wide and which comprises highly prospective Birimian metavolcanic and metasedimentary rocks. Results of a ground magnetic survey and regional soil sampling programme completed by the Company have defined numerous anomalies that are coincident with structural targets. Dilational and fold structures are considered to be excellent targets for potentially economic gold deposits. Rock chip sampling by the Company has produced grades including 24.50 g/t Au, 16.15 g/t Au from quartz veins and 6.86 g/t Au from sheared and silicified metasediments. No material exploration was undertaken on the project during the quarter.

During the first quarter of 2019 Altus signed a Terms Sheet for a Sale & Purchase, Joint Venture and Royalty agreement with Corben Resources Ltd, an unlisted Australian company. Under the proposed terms, Altus will vend its Zolowo gold project in Liberia into Corben and Corben will have the right to earn up to a 100% interest in the Laboum gold project through a joint venture. Altus will retain up to a 2.5% NSR royalty. Details of the agreement are available on the Company's website (www.altusstrategies.com/news, entry dated 24 April 2019).

No material exploration was undertaken on the project during the quarter.

Birsok (198 km2) & Mandoum (174 km2) Bauxite Project, Central Cameroon

The Birsok and Mandoum licences are located 370km northeast of the capital city of Yaoundé. From 2013 to October 2018 they were under a joint venture with ASX-listed Canyon Resources Ltd. The project is contiguous with Canyon's Minim-Martap, a potentially tier-one bauxite project.

On 11 February 2019, the Company announced that it had signed a Termination Agreement and a Sale and Purchase Agreement with Canyon to terminate the JV in return for 25 million Canyon shares and to vend the Birsok project into Canyon for an additional 5 million Canyon shares and a US$1.50/t royalty (subject to Canyon receiving a mining licence). Details of the agreement with Canyon are available on the Group's website (www.altus-strategies.com/news,entry dated 11 February 2019).

Following the period Canyon announced their Notice of Annual General Meeting which is to occur on 27 November 2019. The Notice contains a resolution to approve the issue of the first tranche of 15 million shares to Altus. Altus has agreed with Canyon to escrow the first 15 million shares issued in

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respect of the JV termination for 12 months from the date of issue.

Bikoula (200 km2) & Ndjele (200 km2) Iron Ore Project, Southern Cameroon

The Bikoula and Ndjele licences are located 150km south of the capital city of Yaoundé. The licences are on the western geological strike of the Nkout iron ore deposit and 160km west of the Mbalam iron ore deposit. The licences are adjacent to the road linking to the deep-water port at Kribi and are 30km north of the proposed trans-Camerooneast-west iron ore rail line.

The Group has defined a maiden JORC-compliant Inferred Mineral Resource of 46 Mt at 44% Fe, including a supergene haematite cap of 5 Mt at 52.7% Fe. The resource statement is not in accordance with NI 43-101. The independent resource report was prepared by Coffey Mining South Africa (Pty) Ltd and entitled 'Mineral Resource Estimation and Classification of the Bikoula Iron Ore Project in Cameroon' and dated April 2014. The non-43-101 resource was calculated on less than 25% of the strike of a 17km- long Libi Hills airborne geophysical target. To date 48 drill holes have been completed at Bikoula. During 2018, Altus pitted a large airborne magnetic anomaly at the Nkout North prospect. This work discovered further supergene haematite within reddish clayey soils. The Group considers this prospect and the undrilled remainder of the Libi Hills prospect to represent excellent targets for the definition of further high-grade iron ore resources. No material exploration was undertaken on the project during the quarter.

Altus is seeking a partner to advance the project with further drilling along the anomaly, and the preparation of an independent NI 43-101 compliant mineral resource estimate.

Morocco Operations

Altus holds four projects in Morocco through its 100% owned subsidiary, Aterian Resources Ltd, targeting copper, lead, zinc, silver and gold.

Agdz Copper-Silver Project (60 km2), Central Morocco

Agdz comprises four contiguous permits in the Anti-Atlas Mountains, 350km south of the capital city Rabat and 14km from the Bouskour copper mine which is operated by Managem, the Moroccan state mining group.

Altus has carried out geological mapping, surface outcrop sampling, reconnaissance trenching and ground magnetic surveys. This work has defined strongly mineralised and altered zones and a clear structural context. Three main prospects have been identified to date at Makarn, Amzwaro and Minière from which rock-chip samples have returned assay results up to 26.5% Cu and 448 g/t Ag and an initial rock-chip channel sample returned 1.25% Cu and 96 g/t Ag over 9.3m, with grades up to 2.26% Cu and 223 g/t Ag. Rock-chip and spoil samples from the Minière prospect, which hosts multiple underground workings that exploit a series of sub-parallel alteration zones, have returned 13.0% Cu, 6.0% Cu and 5.0% Cu. Mapped alteration in the Makarn prospect is analogous to that of the Bouskour mine over a 0.5km strike length mapped to date. No material exploration was undertaken on the project during the quarter. No material exploration was undertaken on the project during the quarter.

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Takzim Copper-Zinc Project (72 km2), Central Morocco

Takzim comprises five permits located 35km northeast of the city of Marrakech and 7km east of the historical Bir-n-Hass copper mine. No material exploration was undertaken on the project during the quarter.

Zaer Copper Project (96 km2), Central Morocco

Zaer comprises six permits located 80km south of the capital city of Rabat in the Hercynian Massif, which contains three large granitic plutons that have been intruded into a sequence of sediments. The region hosts active and historical mines for copper, tin, tungsten, lead and zinc. Zaer is strategically located covering a 20km strike length of metamorphic aureole along a granite-metasediment contact. No material exploration was undertaken on the project during the quarter.

Ammas Zinc-Lead Project (32 km2), Central Morocco

Ammas is comprised of two permits, located 30km south of the city of Marrakech. The project is 3km southeast and along strike of Managem's Hajjar Zn-Pb-Cu VMS mine. The Hajjar mine exploits a number of buried and folded massive sulphide lenses. No material exploration was undertaken on the project during the quarter.

Ethiopia Operations

Altus holds three projects in Ethiopia at Tigray-Afar, Daro, and, since 3 June 2019, Zager. All three projects are held by the Company's 100% owned subsidiary, Altau Resources Ltd and are located on the highly prospective Arabian Nubian Shield of Northern Ethiopia.

Daro Copper-Gold Project (412 km2), Northern Ethiopia

Daro is located 570km north of Ethiopia's capital city, Addis Ababa and 95km west of the Company's Tigray-AfarCu-Ag project. The project targets potential Volcanogenic Massive Sulphide ("VMS") copper and gold deposits. It is situated in the Neo-Proterozoic Nakfa Terrane, which hosts a number of significant VMS base metal and gold deposits and mines.

Prospecting and regional mapping has identified key geological markers for a VMS deposit type setting. These include the presence of bimodal volcanics, extensive chert horizons and associated metasediments, which conform to an ophiolite complex of ancient oceanic crust and seafloor sediments.

To date, five priority prospects: Keren, Teklil, Wedihazo, Wedi Keshi and Simret have been defined by the Company on the licence. The Keren prospect strikes for 2km with grab and outcrop samples returning up to 37 g/t Au and 10.35 g/t Au. At the 2.5km long Teklil prospect, located within an ophiolite complex, rock chip and grab samples have returned 24% Cu, 6.51 g/t Au and 203 g/t Ag. A reconnaissance ground gravity survey completed along an initial 300m section of the Teklil prospect, identified a potentially significant gravity anomaly adjacent to key VMS markers, including a gossanous outcrop sample which returned 6.95% Cu.

Rock chip and grab sample results at the 0.5km long Wedihazo prospect, have returned up to 22.3% Cu and 0.24 g/t Au. At the Simret prospect, grab samples have returned up to 944 g/t Ag, 3.55 g/t Au and 2.72% Pb and discovered Au-Ag-Cu-Pb-Zn bearing quartz veins and gossanous float. At the Wedi Keshi prospect a highly altered quartz-feldspar porphyry intrusion was discovered by the Company's Sentinel

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remote sensing programme. The prospect has been mapped for approximately 2km in length and 300m in width. It is also coincident with a series of discontinuous hard gold workings and likely represents the primary source for the gold in the alluvial artisanal workings in the area. Gold grades from rock chip sampling of quartz veins and altered wall rock material include 14.1 g/t Au, 8.5 g/t Au and 7.3 g/t Au.

Following the reporting period, the Company announced that exploration completed during the quarter had identified a 1.2km long potential extension to the 2.8km long Simret prospect following interpretation of historical geochemical data, in parallel with the analysis of Short Wave Infrared (SWIR) satellite imagery and follow-up fieldwork. Recent results from the Wedi Keshi prospect include 21.6 g/t Au from a rock chip sample.

Altus is actively seeking a JV partner for Daro to conduct trenching and to complete the geophysical gravity survey with the aim of defining targets for a maiden drill programme.

Zager Copper-Gold Project (285 km2), Northern Ethiopia

Zager is located in the Semien Mi'irabawi Zone of Tigray in northern Ethiopia, approximately 175km northwest of the Tigray state capital of Mekele and 610km north of Addis Ababa. It is 80km west of the Company's Daro project with which it shares an almost identical geological terrane, and 15km from Harvest polymetallic VMS project. The licence hosts 27km of mapped ophiolite belt.

Initial prospecting of the licence has been undertaken and rock chip sampling has returned grades of

1.95 g/t, 1.31 g/t and 1.11 g/t Au. In addition, a number of hard rock artisanal gold workings have been identified within the licence.

During the period the Company completed a maiden programme of prospecting and ground truthing following the licence grant in June 2019. This programme resulted in the discovery of five hard rock artisanal gold workings, two of which have shafts estimated to be up to 15m deep.

Follow up exploration, which was reported on following the end of the report period, has identified eight additional hard rock artisanal gold workings. Three of the newly identified workings are situated on the margin of a large alluvial gold field, where densely spaced excavations cover an area of approximately 500m by 1,000m. Rock chip sampling, primarily of quartz veins and spoil from the hard rock sites, have returned grades including 27.1 g/t Au, 7.3 g/t Au and 2.9 g/t Au. Polymetallic mineralisation has also been observed at a number of localities, with galena, chalcopyrite and bornite identified in hand specimen. These observations have been supported by rock chip sample results up to 1.5 % Pb, 0.2 % Cu and 24 g/t Ag.

Tigray-AfarCopper-Silver Project (242 km2), Northern Ethiopia

Tigray-Afar is located 580km north of Ethiopia's capital city, Addis Ababa and 95km east of the Company's Daro Cu-Au project. An evaluation of previous exploration data, has identified a potential sediment hosted copper target within a 5km long VTEM conductor. The zone hosts gossans at surface, which are interpreted to overlay a potential copper sulphide source which has yet to be drill tested. No further work was undertaken during the quarter. The next steps for the project will be to conduct a 2,000m 5-hole programme to test the presence of sedimentary hosted copper mineralisation. Altus is actively seeking a JV partner for Tigray-Afar. No material exploration was undertaken on the project

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during the quarter.

Liberia Operations

Altus holds one licence, Zolowo, in Liberia through its 100% owned subsidiary, Auramin Ltd, targeting orogenic lode gold deposits within the Man Shield, which forms part of the West African Craton.

Zolowo Gold Project (466 km2), Western Liberia

Zolowo is located 190km northeast of the capital city of Monrovia. The licence targets a significant 33km-longArchaean-age greenstone belt on the West African Craton. No material exploration was undertaken on the project during the quarter.

Côte d'Ivoire Operations

Altus holds one granted licence, Prikro, and two licence applications in Côte d'Ivoire. The licence and applications are held through the Company's 100% owned subsidiary, Aeos Gold Ltd.

Prikro Gold Project (369.5 km2), Southwestern Côte d'Ivoire

Prikro is located 240km southeast of the country's largest city, Abidjan. The project targets a favourable folded and sheared Birimian-aged greenstone sequence intruded by felsic plutons, and hosts historical Au, Cu, Zn and Mo mineral occurrences. No material exploration was undertaken on the project during the quarter.

During the period, the Company announced that it had signed an option agreement on its Toura licence application with Firering Holdings Limited ("Firering") upon exercise of which Firering will earn a 95% interest in the project, and Altus will receive a cash payment of €15,000, a 5% capped free carried interest and a royalty linked to the nickel price. Further details are available on the Company's website (www.altus-strategies.com/news, entry dated 25 July 2019).

Qualified Person

The technical disclosure in this MD&A has been read and approved by Steven Poulton, Chief Executive of Altus. He has not verified the historical data disclosed in this regulatory announcement but has no reason to question its accuracy. A graduate of the University of Southampton in Geology (Hons), Steven Poulton also holds a Master's degree from the Camborne School of Mines (Exeter University) in Mining Geology. He is a Fellow of the Institute of Materials, Minerals and Mining and has over 20 years of experience in mineral exploration and is a Qualified Person under the AIM rules and National Instrument 43-101 Standards of Disclosure of Mineral Projects of the Canadian Securities Administrators.

OUTLOOK

The Company's strategy for the next twelve months will be to:

• Undertake the proposed Private Placement of up to US$4M
• Close the Proposed Strategic Investment from La Mancha of US$8.5M
• Close the JV Termination agreement with Canyon
• Close the Glomin JV agreement in respect of the Lakanfla and Tabakorole gold projects in Mali
• Develop new joint venture and or royalty agreements with third parties on the Company's available projects

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• Undertake exploration to generate new projects within its current countries of operation and potential new countries; and
• Evaluate early to advance stage project and royalty acquisition opportunities, which may exist privately or within listed companies.

RESULTS OF OPERATIONS

Three Months Ended 30 September 2019

Income

Income from recharging costs to JV partners was £4,000 in Q3 of 2018 as there were no further recharges of costs relating to the JV arrangement with Canyon on the Birsok and Mandoum licences in central Cameroon.

Expenses

Exploration costs in the quarter of £236,000 were higher than the same quarter in 2018 (£199,000). There was a small, temporary reduction in the number of exploration staff and the level of exploration activity was slightly lower during the quarter, as focus switched to completing agreements on the Company's Mali projects with Glomin and Desert Gold. Cash was conserved prior to the announcement on 5 November 2019 of the potential strategic investment by La Mancha. This resulted in lower spend in each area of the Company's operations, as outlined below. Of the £236,000 total Exploration costs, £61,000 related to UK geologists and a further £60,000 related to apportioned UK exploration support costs, which includes operations management and use of shared resources.

The largest area of operation by spend in Africa for the quarter was Mali with £60,000, of which £32,000 were costs of local geologists and exploration support, which compares to £45,000 for the same quarter last year; the quarter largely coincided with the due diligence periods on the projects for Glomin and Desert Gold. Spend in Ethiopia for the quarter was £47,000 (local: £28,000 and 2018: £29,000), where the Teklil prospect was being mapped in the comparative period, and spend in Cameroon was £42,000 (local: £22,000 and 2018: £32,000) where the Company hosted the Ministry of Mines on site in the comparative period. Spend in Morocco was £48,000 (local: £16,000 and 2018: £26,000), while in Liberia and Ivory Coast the combined spend was £35,000 (local: £16,000 and 2018: £48,000), where in the prior year's equivalent quarter, the Company's UK and African geologists were conducting on site soil sampling.

As a consequence of the reapportionment of geologists and UK support costs Administrative expenses were recorded as being £160,000 in the quarter, compared to £292,000 in the comparative 2018 period. Without the change in method Administrative expense would have been £284,000 reflecting a comparable level of corporate activity to the same quarter in 2018.

The fair value loss on investments of £136,000 (2018 Q3: £495,000 gain) was in respect of the Company's holding in ASX-listed Canyon Resources Limited, which is denominated in Australian dollars, and whose share price decreased from A$0.20 to A$0.16 during the quarter.

Nine Months Ended 30 September 2019

For the nine months ended 30 September 2019 the Company had a net loss of £1,378,000 compared to a loss of £1,044,000 in the first three quarters of 2018. Combined Exploration and Administrative costs

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of £1,243,000 were at a similar level to the comparative period (2018 9 months: £1,344,000), although as described in the quarterly summary above, the method of splitting costs between the categories has changed. IPO, listing and acquisition related costs reduced from £108,000 to £66,000; costs in 2019 also include activity on JV deals. The fair value loss on investment reflects both movements in the price of shares of Canyon Resources and in the Australian dollar exchange rate; the loss of £94,000 contrasts to a gain in the comparative period of £329,000.

Liquidity and Capital Resources

The net assets of the Group reduced from £5,266,000 at 31 December 2018 to £3,884,000 at 30 September 2019, which, allowing for fluctuations in current assets and liabilities, reflected mainly a lower cash balance, a reduction in investments and an increase in accruals, continuing the trend that has been reported in previous quarters.

There was a small reduction of £15,000 in the value of the group's intangible assets relating to expired warrants that were acquired as part of the Company's plan of arrangement with Legend Gold which closed in January 2018. Pursuant to the Company's policy, the carrying balances of all intangible assets were reviewed by the management team for impairment and presented to the board. No impairments were made in the quarter.

The cash balance decreased from £725,000 at 31 December 2018 to £150,000, reflecting three quarters of operating expenses with minimal revenue, offset in part by the sale of a portion of the Company's investment in Canyon worth £522,000. The value of the investment reduced further as the price of shares of Canyon Resources decreased from A$0.20 on 30 June to A$0.16 at 30 September.

On 5 November the Company announced a prospective strategic investment by La Mancha of £6.6 million (C$11.2 million), and also a separate non-brokered private placement of shares to raise up to £3.1 million (C$5.3 million). These two funding plans are not mutually dependent. The potential transaction with La Mancha, at a 30% premium to the 30 day volume weighted average price of the Company's shares traded on the TSX-V prior to the date of the announcement, and the Company's experience of raising previous equity funding, gives the directors confidence that funding will be available for future operations. The directors have, therefore, prepared the financial statements on a going concern basis. However, whilst negotiations with La Mancha continue in good faith, and marketing of the current non-brokered private placement are ongoing, there is no certainty that binding agreements will be reached and the transactions completed.

An increase in the value of payables from £487,000 as at 31 December 2018 to £834,000 was due partly to the continued deferral of board fees by non-executive directors and the partial deferral of salaries and pensions by executive directors which was outlined in detail in the 2018 Annual Report and Accounts (see www.altus-strategies.com/investors/financials/). The value of deferred remuneration during the quarter was £74,000 and in total amounts to £511,000.

The adoption of IFRS 16 at 1 January 2019 has had the effect of increasing non-current assets by £85,000 and current liabilities by £88,000 as at 30 September 2019. This net liability will reduce over the life of the lease on the UK office, which expires in 2023. The impact on the ratio of current liabilities to current assets has been to increase it from 2.86 to 3.59.

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SUMMARY OF QUARTERLY RESULTS

	2019	2019	2018	2018
Quarter Ended	30 Sep	30 Jun	31 Mar	31 Dec
	£	£	£	£
Costs recovered from JV partners	75	22,161	5,951	44,231
Exploration costs	(235,519)	(390,342)	(116,120)	(103,455)
Administration costs	(160,249)	(10,756)	(317,500)	(404,635)
IPO, acquisition and JV costs	(12,530)	(27,586)	(39,291)	(3,027)
Net profit/(loss) from operations	(408,223)	(406,523)	(466,960)	(466,886)
Investment income	7	2	5	32
Other operating income	(2,167)	1,899	(2,217)	(30,974)
Fair value gain/(loss) on investments	(136,364)	116,848	(74,194)	(47,011)
Loss before taxation	(546,747)	(287,774)	(543,366)	(544,839)
Taxation	-	-	-	-
Income/(loss) for the quarter	(546,747)	(287,774)	(543,366)	(544,839)
Income/(loss) per share - basic and
diluted	(0.00)	(0.00)	(0.00)	(0.00)
	2018	2018	2018	2017
Quarter Ended	30 Sep	30 Jun	31 Mar	31 Dec
	£	£	£	£
Costs recovered from JV partners	4,122	6,831	34,494	13,241
Exploration costs	(199,036)	(271,531)	(131,369)	358,640
Administration costs	(292,732)	(197,042)	(252,213)	(766,007)
IPO and acquisition costs	-	(60,456)	(47,777)	28,979
Net profit/(loss) from operations	(487,646)	(522,198)	(396,865)	(365,147)
Investment income	17	7	6	3,658
Other operating income	10,440	22,171	340	13,362
Fair value gain/(loss) on investments	494,883	(46,383)	(119,262)	227,200
Loss before taxation	17,694	(546,403)	(515,781)	(120,927)
Taxation	-	-	-	-
Income/(loss) for the quarter	17,694	(546,403)	(515,781)	(120,927)
Income/(loss) per share - basic and
diluted	(0.00)	(0.00)	(0.00)	(0.01)

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During the majority of 2018 (after the plan of arrangement with TSXV listed Legend Gold) and 2019 there has not been a material change to the underlying cost base of the business, as the number of licences and staff and the level of operations have all remained stable. The main difference is the modest additional administration and compliance costs to the Company of being listed on the TSX-V in Canada as well as on the AIM market of the LSE in the United Kingdom.

The Company has made great efforts to carefully manage its financial resources and to focus expenditure on the areas that bring the greatest return in terms of the marketability of its licence portfolio. This has meant that over the last five quarters, net loss from operations has steadily reduced from £522,000 in 2018 Q2 to £408,000 in this quarter.

The variable costs that have resulted in the main quarterly fluctuations in the table above are as follows:

• The main variations in Exploration costs are due to changes in the level of onsite activity, with additional costs to transport geologists to site including flying UK geologists to Africa, equipment rentals and maintenance and use of causal labour. The most significant cost is for assaying samples including the transport of samples to the assaying labs. Other costs which cause variations between quarters are licence renewals, annual audit costs and local taxes. Exploration licences and land rents, although a significant cost to the business, are capitalised in line with the Company's accounting policies and do not generally affect the quarterly results.
• IPO and acquisition costs, and to a lesser extent Administration costs, were impacted by capitalisation of costs in 2017 Q4 in relation to the listing of the Company's shares on the AIM in London in August 2017, the Plan of Arrangement with Legend in January 2018 and the dual listing of the Company on the TSX-V in Toronto in June 2018 Since the beginning of 2019, the Company has grouped together the costs of executing JV and other partnering agreements, and financing and corporate acquisition costs.
• The change in the Fair value gain on investment is derived from the value of shares in Canyon Resources (ASX: CAY). The shares were valued at A$0.16 at 30 September 2019, and varied in price between A$0.09 and A$0.29 during 2018 and between A$0.14 and A$0.24 in the first three quarters of 2019. Further fluctuations resulted from the shares' denomination in Australian dollars.

OFF-BALANCE SHEET ARRANGEMENTS

The Company had no off-balance sheet arrangements.

RELATED PARTY TRANSACTIONS

The Company entered into a number of transactions with key management personnel. The remuneration of key management personnel includes those persons having the authority and responsibility for the planning, directing and controlling of the activities of the Company are as follows.

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Nine months ended	Contracted	Pension	Contracted	Paid in
30 September 2019	Remuneration	Contribution	Total	Cash
	£	£	£	£
Executive Directors
Steven Poulton	92,328	9,600	101,928	6,250
Matthew Grainger	75,000	7,500	82,500	49,250
Non-executive Directors
David Netherway	26,253	-	26,253	-
Robert Milroy	18,755	-	18,755	-
Michael Winn	15,000	-	15,000	-
Total	227,336	17,100	244,436	55,500
Deferred remuneration	171,836	17,100	188,936

The above payments for director compensation are payments made in the normal course of business. The amounts paid for these services are negotiated in good faith by both parties and fall within normal market ranges. The Remuneration Committee reviews executive compensation annually. The Board of Directors considers any changes recommended by the Remuneration Committee and approves these changes if appropriate.

In each year directors may choose to defer some of their remuneration, whether this is salary or company pension contributions, until such time as the Company has either the headroom to be able to allot further shares to its directors, or has the liquid resources available to be able to settle the deferred amounts in cash. Deferred remuneration is recorded in the accounts by way of an accrual. The value of remuneration deferred by the directors in respect of the first nine months of 2019 was £188,936.

The following are the related party balances at 30 September 2019 and 30 September 2018.

	30 September	30 September
Related party current assets/(liabilities)	2019	2018
	£	£
Canyon Resources Ltd	43,861	39,137
Seabord Services Corp.	(64,148)	(42,738)
Aegis Asset Management Ltd	360	130
	(19,927)	(3,471)

Canyon Resources Ltd

David Netherway is a director and shareholder of the Company. He is also a director of Canyon which is listed on the Australian Stock Exchange. Altus has a joint venture arrangement with Canyon in relation to the Birsok project in central Cameroon. Altus incurs project expenses and recharges them to Canyon. As at 30 September 2019, the balance due to Altus was £43,861 (30 September 2018: £39,137).

Seabord Services Corp.

Michael Winn is a director and shareholder of the Company. He is also the controlling party of Seabord

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Services Corporation ("Seaboard"). Seabord has an agreement with Altus to provide financial advisory services and administrative support to Altus with respect to its legal and compliance obligations in Canada. As at 30 September 2019, the balance due from Altus was £64,148 (30 September 2018: £42,738).

Aegis Asset Management Ltd

Three of the directors and shareholders of the Company (David Netherway, Steven Poulton and Matthew Grainger) are also directors of Aegis Asset Management Ltd ("Aegis"), which was formerly a subsidiary of the Company. Altus incurs some incidental costs which it recharges to Aegis. As at 30 September 2019, the balance due to Altus was £360 (30 September 2018: £130).

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

In the application of the Group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical Judgments

Impairment of Deferred Exploration Costs

Deferred exploration costs had a carrying value as at 30 September of £4,078,742 (2018 Q4: £4,071,870). Management tests quarterly whether deferred exploration costs have a carrying value in accordance with the accounting policy stated in note 16 of the annual audited consolidated financial statements of Altus Strategies plc.

Each exploration project is subject to a quarterly review either by a consultant or a senior Company geologist to determine if the exploration results returned to date warrant further exploration expenditure and have the potential to result in an economic discovery. This review takes into consideration long-term metal prices, anticipated resource volumes and grades, permitting and infrastructure, external factors affecting the project, as well as the likelihood of on-going funding from current or potential joint venture partners. In the event that a project does not represent an economic exploration target and results indicate that there is no additional upside, or that future funding from joint venture partners is unlikely, a decision will be made to discontinue exploration. A further review of the recommendations of the consultant or senior Company geologist is then performed by management. The Directors have reviewed the estimated value of each project prepared by management and do not consider any further impairment necessary.

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Stability of Joint Venture Partners

The stability of the Group's joint venture partners is periodically reviewed in determining the likelihood of future funding for related projects.

Finance leases

The Company adopted IFRS 16 Leases as at 1 January 2019. At that date it had no assets that fell under the regime of the new standard, however, during the half year it signed one new lease for office premises in the UK and has accounted for this applying IFRS 16. To determine the split between principal and interest in the lease the Company applied an estimate of the interest it would have to pay in order to finance payments under the new lease. This method was adopted as the Company was not able to ascertain the implied interest rate and does not have borrowings to use as a benchmark. The impact of the estimate is currently considered to be immaterial to the financial statements, but the Directors will review this approach as appropriate.

Share based payments

Estimating fair value for share based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. For issues of shares in respect of debt the Company values the shares based on the lower of the closing price on the AIM or TSX-V of the shares on the prior day or on the volume weighted average for a reasonable period determined by management. For the grant of share options or share warrants, the Company uses the Black Scholes Model. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of any share option or appreciation right, volatility and dividend yield and making assumptions about them.

FINANCIAL RISK MANAGEMENT

Altus's strategy with respect to cash is to safeguard this asset by investing any excess cash in very low risk financial instruments such as term deposits or by holding funds in the highest yielding savings accounts with major United Kingdom banks. By using this strategy, the Company preserves its cash resources and can marginally increase these resources through the yields on these investments. The Company's financial instruments are exposed to certain financial risks, which include currency risk, credit risk, liquidity risk and interest rate risk.

Currency Risk

The Company's functional currency is the Pound Sterling, and major purchases are transacted in Pounds Sterling, US Dollars, Canadian Dollars, West African Francs, Ethiopian Birrs, Moroccan Dirhams and Liberian Dollars. The Company's head office expenditures are mainly incurred in Pounds Sterling and the majority of its exploration costs are incurred in the local African currencies. Some of the Company's subsidiaries have functional currencies other than Pounds Sterling. The Company is therefore exposed to unrealised foreign currency on the translation of the subsidiary's net assets. Management believes the foreign exchange risk derived from currency conversions is not significant to its operations, and therefore does not hedge its foreign exchange risk. For the nine months ended 30 September 2019, the Company had an exchange loss of £46,330 (2018: £48,619 gain) which was not material to its operations and an unrealised loss on retranslation of net assets of its subsidiaries of £nil (2018: £135,596).

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Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates. When the Company has sufficient cash, it is invested in term deposits which can be reinvested without penalty after thirty days should interest rates rise. As at 30 September 2019 the Company did not have any interest-bearing loans. Accordingly, the Company does not have significant interest rate risk.

Credit Risk

Credit risk is the risk that one party will cause a financial loss for another party by failing to discharge an obligation. The Company's credit risk is primarily attributable to receivables. The Company has no significant concentration of credit risk arising from operations. Financial instruments included in receivables consist of trade receivables and amounts due from associates.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective is to ensure that there are sufficient committed financial resources to meet its current obligations and its future business requirements for a minimum of twelve months. As at 30 September 2019 the Company had a balance of cash and marketable securities of £0.4m. Based on this balance, along with the ability of the Company to raise finance that has been demonstrated in the last two years, the announcement of a strategic investor and private placement of shares on 5 November and the possibility of reducing some discretionary costs, the Directors believe the Company has the means to continue its operations for a further twelve months and have prepared the financial statements on a going concern basis.

FINANCIAL INSTRUMENTS

The Group adopted IFRS 9 Financial Instruments in the comparative period in 2018, which did not result in any changes to the Group and Company's financial statements.

Fair Values

The Company's financial instruments consist of cash and cash equivalents, trade and other receivables, investments, and trade and other payables. Financial instruments are initially recognized at fair value with subsequent measurement depending on classification as described below. Classification of financial instruments depends on the purpose for which the financial instruments were acquired or issued, their characteristics, and the Company's designation of such instruments. The Company has classified its financial instruments as follows:

	Investments	Amortised
	at FVTPL	Cost	Total
As at 30 September 2019	£	£	£
Cash and cash equivalents	-	149,596	149,596
Trade and other receivables	-	111,450	111,450
Non-current investments	268,026	-	268,026
Trade and other payables	-	(833,566)	(833,566)
	268,026	(572,520)	(304,494)
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Financial instruments measured at fair value on the statement of financial position are summarized into the following fair value hierarchy levels.

1. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
2. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
3. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

OUTSTANDING SHARE DATA

As of the reporting date of this MD&A, the Company had 177,899,659 ordinary shares issued and outstanding. There were also 28,303,477 share purchase warrants outstanding as follows.

Warrants outstanding	Exercise price*	Issue date	Expiry date
911,861	C$0.225 (£0.135)	18 April 2018	17 April 2021
27,391,616	C$0.300 (£0.181)	18 April 2018	17 April 2023

• Exercise prices in GBP are determined by reference to the underlying Canadian Dollar price and the exchange rate as at 30 September 2019.

RISKS AND UNCERTAINTIES

No Assurance of Titles or Borders

The acquisition of the right to exploit mineral properties is a very detailed and time-consuming process. There can be no guarantee that the Company has acquired title to any such surface or mineral rights or that those rights will be obtained in the future. To the extent they are obtained, titles to the Company's surface rights or mineral properties may be challenged or impugned and title insurance is generally not available. The Company's mineral properties may be subject to prior unregistered agreements, transfers or claims and title may be affected by, among other things, undetected defects. Such third-party claims could have a material adverse impact on the Company's operations.

Mineral Property Exploration and Mining Risks

The business of mineral deposit exploration and extraction involves a high degree of risk. Few properties that are explored ultimately become producing mines. At present, none of the Company's properties has a known commercial ore deposit. The main responses to operating risks include: ensuring ownership of and access to mineral properties by confirmation that option agreements, claims and leases are in good standing and obtaining permits for drilling and other exploration activities. There can be additional risks involved in some countries where pending applications for claims or licences can be affected by government changes to application procedures.

Some of the Company's mineral properties are located within or near local communities. In these areas, it may be necessary as a practical matter to negotiate surface access with these local communities. There can be no guarantee that, despite having the legal right to access a mineral property and carry on exploration activities, that the Company will be able to negotiate a satisfactory agreement with the

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existing land owners or communities for this access. Therefore, the Company or one of its joint venture partners may be unable to carry out exploration activities on a property. In those circumstances where access has been denied by a local community or land owner, the Company may need to rely on the assistance of local officials or the courts to gain access or it may be forced to abandon the property.

Altus may acquire properties through option agreements in the future. Acquisition of title to the properties under these kinds of agreements is only completed when all the option conditions have been met. These conditions generally include making property payments, incurring exploration expenditures on the properties and can include the satisfactory completion of pre-feasibility studies. If the Company does not satisfactorily complete these option conditions in the time frame laid out in the option agreements, the Company's title to the related property will not vest and the Company will have to write-off the previously capitalized costs related to that property.

Joint Venture Funding Risk

When appropriate, Altus seeks partners through joint ventures or option agreements to fund exploration and project development and the Company seeks to retain a royalty interest in its projects as well as receive milestone-based payments. The main risk of this strategy is that funding partners may not be able to raise sufficient capital to satisfy exploration and other expenditure terms in a particular option agreement. As a result, exploration and development of one or more of the Company's property interests may be delayed depending on whether Altus can find another partner or has enough capital resources to fund the exploration and development on its own.

Commodity Price Risk

Altus is exposed to commodity price risk. Declines in the market prices of gold, base metals and other minerals may adversely affect its ability to raise capital or attract joint venture partners to fund exploration on its mineral properties. Commodity price declines could also reduce the amount the Company would receive on the disposition of one of its mineral properties to a third party.

Financing and Share Price Fluctuation Risks

Altus has limited financial resources, has no reliable source of operating cash flow and has no assurance that additional funding will be available to it for further exploration and development of its projects. Further exploration and development of one or more of the Company's projects may be dependent upon the Company's ability to obtain financing through equity issues, debt financing or the sale of some of its exploration properties. Failure to obtain this financing could result in delay or indefinite postponement of further exploration and development of its projects which could result in the loss of one or more of its properties.

Securities markets often experience a high degree of price and volume volatility, and the market price of securities of many companies, particularly those considered to be development stage companies such as Altus, have experienced wide fluctuations in share prices which have not necessarily been related to their operating performance, underlying asset values or prospects. As a result, there can be no assurance that the Company will be able to attract additional capital or whether share prices will be strong to enough to make private placements advisable.

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Political and Currency Risks

The Company is operating in African countries, where there is a higher risk of political uncertainty and instability. The Company regularly monitors the political situation in each country in which it operates. Changing political situations may affect the manner the Company operates. The Company's equity financings are sourced in Pounds Sterling and Canadian Dollars but it incurs a significant portion of its expenditures in US Dollars and West African Francs, Ethiopian Birr and Moroccan Dirham. There are no currency hedges in place. Therefore, a weakening of its funding currencies against the US Dollar, West African Franc, Ethiopian Birr and Moroccan Dirham could have an adverse impact on the amount of exploration conducted.

Insured and Uninsured Risks

During exploration, development and production on mineral properties, the Company is subject to many risks and hazards in general, including adverse environmental conditions, operational accidents, labour disputes, unusual or unexpected geological conditions, changes in the regulatory environment and natural phenomena such as inclement weather, floods, and earthquakes. Such occurrences could result in damage to the Company's property or facilities and equipment, personal injury or death, environmental damage to properties of the Company or others, delays, monetary losses and possible legal liability.

Although the Company may maintain insurance to protect itself against certain risks in such amounts as it considers reasonable, its insurance may not cover all the potential risks associated with its operations. The Company may also be unable to maintain insurance to cover these risks at economically feasible premiums or for other reasons. Should such liabilities arise, they could reduce or eliminate future profitability and result in increased costs, have a material adverse effect on the Company's results and cause a decline in the value of the Company's securities. Some work is carried out through independent consultants and the Company requires that all consultants carry their own insurance to cover any potential liabilities because of their work on a project.

Environmental Risks and Hazards

The activities of the Company are subject to environmental regulations issued and enforced by government agencies. Environmental legislation is evolving in a manner that will require stricter standards and enforcement and involve increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects, and a heightened degree of responsibility for companies and their officers, directors and employees. There can be no assurance that future changes in environmental regulation will not adversely affect Altus's operations. Environmental hazards may exist on properties in which the Company holds interests which are unknown to the Company at present.

Conflicts of Interest

The Company's directors and officers may serve as directors or officers of other companies or have significant shareholdings in other resource companies and to the extent that such other companies may participate in ventures in which the Company may participate, some directors of the Company may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation. If such a conflict of interest arises at a meeting of the Company's directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms. In

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accordance with best practice and the laws of British Columbia, the directors of the Company are required to act honestly, in good faith and in the best interests of the Company. In determining whether the Company will participate in a program and the interest therein to be acquired by it, the directors will primarily consider the degree of risk to which the Company may be exposed and its financial position at that time.

Key Personnel Risk

The Company's success is dependent upon the performance of key personnel working in management and administrative capacities. The loss of the services of any senior management or key personnel could have a material and adverse effect on the Company, its business and results of operations.

Competition

The Company will compete with many companies and individuals that have substantially greater financial and technical resources than the Company for the acquisition and development of its projects as well as for the recruitment and retention of qualified consultants and employees.

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