Nobel Resources: Executive Discussion and Analysis

NOBEL RESOURCES CORP.

Management discussion and analysis

For the six months ended June 30, 2022

(In Canadian dollars, unless otherwise indicated)

Date: August 25, 2022

This management report (“Management report“) provides a discussion and analysis of the financial condition and results of operations of Nobel Resources Corp. (individually or collectively with its subsidiaries, as applicable, “nobel“or the”Company“), in order to allow the reader to assess the significant changes in the financial position and results of operations as of June 30, 2022 and for the six months then ended. The management report should be read in conjunction with the consolidated financial statements audited as of and for the year ended December 31, 2021. All amounts included in the MD&A are expressed in Canadian dollars, unless otherwise indicated.

The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS“) as published by the International Accounting Standards Board. Please refer to Note 3 to the annual audited consolidated financial statements as at December 31, 2021 and for the year ended December 31, 2021 for disclosure of the Company’s significant accounting policies. .

The scientific and technical content of this MD&A has been reviewed and approved by Mr. Vernon Arseneau, (P.Geo), and Mr. David Gower, (P.Geo), Qualified Persons under National Instrument 43-101 (“NEITHER 43-101“). As officers of the Company, Messrs. Arseneau and Gower are not considered independent.

The Company’s audit committee has reviewed this management report and the consolidated financial statements for the six months ended June 30, 2022, and the Company’s board of directors has approved these documents prior to their publication.

Presentation and strategy

Nobel is a Canadian exploration and development company engaged in the acquisition, exploration and development of mineral properties with a primary focus on exploration in Chile. Exploration is conducted through the Company’s wholly-owned subsidiary, Grupo Los Nogales SA (“NobelPanama“), which in turn owns 100% of Mantos Grandes Resources Chile SpA.

The Company currently has the right to acquire a 100% interest in the Algarrobo Project and the La Salvadora Project, both iron oxide, copper and gold potentials (“IOCG“) style high-grade copper properties in Chile, which are described in detail below in the sections titled “Mineral Exploration Properties”. The Company continues to evaluate both the La Salvadora Project and the Algarrobo Project The Company also continues to evaluate project submissions and data from various sources with a view to identifying other opportunities that could create value for its shareholders.

Summary of properties and projects

Mineral exploration properties

The Company has the right to acquire a 100% interest in Algarrobo Iron Oxide Copper Gold Ore (IOCG), a prospective large-scale IOCG-style high-grade copper property in Chile. The country is a leading mining jurisdiction as it is strategically located less than 25 km from the port via a tarmac highway and has world-class IOCG deposits in the major Candelaria belt.

Algarrobo Property – Description

The Algarrobo project is located approximately 850 km north of Santiago, in Region III, Chanaral Province, Chile. The Algarrobo project is located in the southern Atacama Desert, with the town of Copiapo located approximately 43 km to the southeast and the port of Caldera 25 km to the east (see Figure 1).

The property consists of 53 ‘Angela’, 2 ‘Angelita’ and 24 ‘Roble’ holdings, comprising a total of 6,710 ha (16,581 acres).

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NOBEL RESOURCES CORP.

Management discussion and analysis

For the six months ended June 30, 2022

(In Canadian dollars, unless otherwise indicated)

Algarrobo Property – Exploration

The Company completed an extensive chip channel sampling program on the underground and surface exposures of the mineralization prior to its drilling program. A total of 133 chip/channel samples were taken from the existing workings as well as from the trenches and exposed surfaces. The mineralization is generally characterized by very high grade veins ranging from 0.5 to 5 meters thick with an adjacent mineralized rock face which generally has copper grades ranging from 0.8% to 5% copper. Mining has been geared towards high quality small-scale production for the direct shipment of +12% copper ore to the Enami smelter 45km south in the town of Copiapo.

  • Chip/channel samples through the high grade mineralized structures returned values ​​as high as 36.22% copper with many samples grading 5% to 30% copper.
  • Rich in coppersamples show consistent gold enrichment with values ​​ranging from 0.24 to 3.37 g/t gold and locally values ​​as high as 15 g/t and 27.4/t gold.
  • Artisanal mining produces 12% copper ore and ships it directly to the Copiapo smelter for processing.
  • Work on the project generally does not exceed 40 meters depth, but historic mining at 350 meters depth has taken place on adjacent property and 500 meters within 5 km of the project.
  • The project is characterized by a very extensive mineralized system that extends for at least 6 km along strike in a northeasterly direction and major mineralized veins form a horsetail structure that extends for more than 2 km in the direction. In addition to the many major vein structures, there are thousands of smaller copper mineralized veins with varying orientations that have not been sampled within the mineralized zone (see Figure 2).
  • The project is located in an area with excellent infrastructure, 25 km by paved highway from the port of Caldera and 45 km north of the foundry complexes located in the town of Copiapo, also by paved highway.

For a complete listing of the sampling process and results, please refer to the Company’s press release dated April 22, 2021. Additional information regarding the project can be found in the Company’s technical report prepared by Richard T. Walker, M.Sc, P. Geo., and Enrique Grez Armanet, B.Sc, P. Geo. entitled “NI 43-101 Technical Report Algarrobo Property III Region, Chile at 27oh 02′ 34′ Latitude East, 70oh 33′ 52′ Longitude” with an effective date of February 28, 2021, which has been filed on SEDAR (www.sedar.com).

Thirty-one diamond drill holes have been completed to date by the company for a total of 2,745 m with 4,100 line km of ground magnetic surveys and 50.5 km of induced polarization (IP) surveys at depth. The Company is well funded to execute a major drilling campaign at Algarrobo.

The objective of the program has been to identify drill targets that have the scale necessary to host a potential major copper deposit. The project area has been subject to artisanal mining for decades, demonstrating the presence of high-grade copper mineralization extending for at least 5 kilometers in strike length in numerous exposed mineralized structures. in mine openings in the northeast part of the project area (the northeast trend) (Figure 2). The Company has also identified a second mineralized corridor (the Gloria Corridor) in the southern part of the property (Figure 2). The project is unusual in that there is little basic geological mapping or documentation of geological controls on mineralization given the mine’s long history of development. To achieve this objective, the following was carried out:

  1. Coverage of the entire project property by a high-resolution ground magnetometric survey (see press release of June 11, 2021).
  2. Coverage of key areas with IP surveys to detect mineralization in priority magnetic features and associated mineralized structures. This survey responds to sulphide minerals at depth which would be oxide mineralization closer to the surface (generally within the top 120 meters of this area).
  3. Complete a wide-spaced drilling program, coupled with geological mapping and trenching to provide the geological basis required to correctly interpret geophysical surveys.

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NOBEL RESOURCES CORP.

Management discussion and analysis

For the six months ended June 30, 2022

(In Canadian dollars, unless otherwise indicated)

Figure 3: Property map showing IP anomalies and coincident magnetic anomalies. Note in particular the large central target in an unexplored zone at the intersection of two copper mineralized structural trends.

Geophysical surveys have identified high priority targets where large-scale magnetic features directly coincide with IP anomalies comprising chargeability highs and resistivity lows, which is the correct answer for a mineralized system with large-scale potential. Key target areas have been identified (Figure

  1. as following:
    1. The central target is in a project area that is completely covered in dunes and has never been explored. The magnetic anomaly coincides directly with an IP anomaly comprising high chargeability and low resistivity and occurs precisely in the area where two mineralized structural trends appear to intersect. The coincident magnetic/IP anomaly is approximately 4 km X 1.5 km in this target area. It appears that the target is controlled along a contact between an unmineralized intrusive unit and a mineralized granitic unit with a very clear rupture of the anomaly along this contact, which is a geological setting shared by other deposits. IOCG, including Marimaca and Michilla.
    2. The northeast (NE) target (Figure 3) has one of the strongest IP responses and is closest to the area with the highest concentration of historic mine workings. This anomaly extends for at least 2.5 km in a northeast direction and is about 750 meters wide.

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