AntioquiaGold Inc

Management Discussion and Analysis 06/05/2021

Form 51-102F1
Management Discussion and Analysis

For the year ended December 31, 2020

The following Management’s Discussion and Analysis (“MD&A”) of Antioquia Gold Inc. (the “Company” or “Antioquia”) should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020 and the notes thereto. The Company’s audited consolidated financial statements have been
prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Unless otherwise stated, all amounts discussed herein are denominated in Canadian dollars. This MD&A was prepared as of April 30, 2021 and all information is current as of such date. Readers
are encouraged to read the Company’s public information filings on SEDAR at

This discussion provides management’s analysis of Antioquia’s historical financial and operating results and provides estimates of Antioquia’s future financial and operating performance based on information currently available. Actual results will vary from estimates and the variances may be significant. Readers should be aware that historical results are not necessarily indicative of future performance.


Antioquia Gold Inc. (the “Company” or “Antioquia”) is a mineral Company engaged in operation of primarily gold resource properties in Colombia. The Company has an office in Toronto, Canada with operations and office and field facilities located in Colombia. The Company trades on the TSX-V under the symbol “AGD” and on the OTC pink sheets.

The Company’s primary focus is the operation of its Cisneros underground gold operation (“Cisneros Operation”) consisting of two underground mines and a process plant located outside Medellin, Colombia, along with exploring and developing additional properties. The Company controls a total of 17,147.59 hectares of mineral leases in the Cisneros Operation area. Commercial production was declared on March 1, 2019.

Additional information relating to Antioquia, Antioquia’s business and activities, including Antioquia’s most recently filed annual information form, can be found on SEDAR at and on the Company’s website at


Antioquia was formerly known as High American Gold Inc. which was originally formed pursuant to an amalgamation agreement dated April 25, 1997 involving Stromatalite Resource Corp. and Intex Mining Company Limited.

On July 30, 2008, Antioquia Gold Inc. completed a transaction (the “Am-Vest Transaction”) with AmVes Resources Inc. (“Am-Ves”), a company incorporated under the laws of Alberta on January 19, 2006. On July 30, 2008, the Company acquired 100% of the outstanding shares of Am-Ves. This transaction was accounted for as a reverse takeover where the shareholders of Am-Ves acquired control of Antioquia. On March 31, 2009 Antioquia and Am-Ves were amalgamated under the laws of Alberta and now operate under the name Antioquia Gold Inc.

As part of the Am-Ves Transaction, 6,129,100 common shares issued to certain shareholders of Am-Ves were placed into escrow pursuant to an escrow agreement entered into among the Company, certain shareholders, and the Company’s transfer agent and became subject to a staggered release from escrow over a period of three years. The final
15% held in escrow were released on August 5, 2011.

On March 24, 2016 Antioquia continued under the laws of British Columbia.

The Company owns 100% of Antioquia Gold Ltd., a Barbados company, which in turn has a branch registered to conduct business in Colombia, South America. On December 2, 2009, the Company completed the 100% acquisition of Ingenieria y Gestion Del Territorio S.A. (“IGTER”), a company incorporated under the laws of Colombia. All the mineral exploration activities of the Company are in Colombia.

In October 2015, the Company started the construction phase of the Cisneros project, which consists of two underground mines (Guaico and Guayabito), a 500 tpd treatment plant, tailing deposit and 10 km pipeline.

The Company has been testing and optimizing the processing plant since January 1, 2019, and successfully completed the ramp up schedule with recovery rates and Concentration ratios within the estimated design parameters for the current phase. On March 1, 2019, the Company declared the successful start of production at the Cisneros Mine in Antioquia, Colombia. The Company continues to further optimize production.

It should be noted that with the decision to proceed with construction and mining of the Cisneros project, on the basis of a Preliminary Economic Assessment (as compared to a pre-feasibility or a feasibility study), there is increased uncertainty and higher risk of economic and technical failure associated with the Company’s decision. Production and
economic variables may vary considerably, due to the absence of a pre-feasibility or a feasibility study prepared in accordance with NI 43-101 standards. In particular, there is additional risk that mineral volumes and grades will be lower than management expected and the risk that construction or ongoing mining operations will be more difficult or
more expensive than management expected. Project failure may materially adversely impact the Company’s future profitability, its ability to repay existing loans, and its overall ability to continue as a going concern.

Qualified Persons

Dr. Roger Moss, a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, has approved the scientific and technical disclosure in this Management Discussion and Analysis.

Accomplishments during the year ended December 31, 2020

For the year ended December 31, 2020, 20,301 ounces of gold were produced at the Cisneros Operation. An average of 585 tonnes were processed per day with a 96.8% average recovery during the period.