Initial Research Report (By RB Milestone Group) (July 20, 2016)

Zadar Ventures Limited


(OTCQB: ZADDF, TSXV: ZAD)

July 20, 2016

Global Green Energy Prospects to Benefit Zadar

Zadar Ventures (OTCQB:ZADDF, TSXV:ZAD) (“Zadar” or the “Company”) is a

Canadian exploration and development company. Zadar owns multiple assets across

the lithium and uranium space. The Company is currently focused on exploration of

lithium-enriched brines at its two lithium projects located in Clayton Valley, in

Nevada, USA. The Company’s strategic plans involve processing lithium into in-

demand battery grade chemicals. The Company has secured over 750 hectares of

placer claims in Clayton Valley, which are adjacent to the only active lithium mine in

North America (operated by a global lithium producer). Further, Zadar has recently

signed a Memorandum of Understanding (“MoU”) with Macarthur Minerals Limited

(TSX-V: MMS) (“Macarthur Minerals”) for entering into a Farm-In-Agreement (“FIA”)

at Macarthur Minerals’ Ravensthorpe lithium acreage, in the Ravensthorpe region of

South Western Australia, close to other ongoing major lithium projects. Zadar also

owns seven uranium projects in the Athabasca Basin in Saskatchewan, Canada. The

Basin is host to numerous uranium mining operations that have been producing high

grade uranium for the nuclear energy industry for decades. Diverse mineral bases at

strategic locations uniquely position the Company in the lithium and uranium space.

Investment Rationale

Strategic location of US lithium claims could help in inking a supply agreement

Zadar Ventures has two active lithium projects in Clayton Valley, which is located

only about 250 miles from Tesla’s Gigafactory. The Gigafactory has a planned

production of up to 500,000 lithium ion batteries per year by 2020. Tesla is in need of

large quantities of lithium to produce batteries. The Company’s close proximity to

Tesla’s new battery making facility may enable the Company to enter in a supply

agreement that could provide tremendous upside to the Company’s future prospects.

Further, Nevada’s favorable business environment for mining and exploration

companies should continue to help Zadar in its operations.

High-grade prospective mineralization should benefit Zadar

As per the United States Geological Survey (USGS), Clayton Valley in Nevada is

host to the best-known reserves of high-grade lithium rich brines. Preliminary drilling

carried out at one of Zadar’s project areas by the USGS estimated 55 parts per

million lithium content from the analyzed water samples. The presence of such high

lithium concentrations in basin-hosted brines along with successful and on-going

extraction of lithium at neighboring projects raises the Company’s future development

and commercialization prospects.

Macarthur Minerals partnership bodes well for Zadar's growth plans

On 12 July, 2016, Zadar entered into a MoU with Macarthur Minerals for entering into

a Farm-in Agreement (“FIA”) for lithium exploration on Macarthur Minerals’

Ravensthorpe acreage (subject to due diligence). The Ravensthorpe acreage

comprises two exploration license applications, covering an area of 91 square

kilometers. Most promisingly, at its closest point, the Ravensthorpe acreage, is only

approximately 7 kilometers from the Mount Cattlin Lithium Project, which is currently

mining and processing spodumene (source of lithium) with full capacity production of

approximately 137,000 tonnes, in addition to 56,000 lbs of contained tantalum. Such

partnerships should help expand Zadar's geographic reach and revenue potential.

Qualified Management Team

The management team, led by Mr. Paul D. Gray President & CEO of the Company,

is highly experienced to lead the Company to successful exploration and

Price (as of July 19, 2016): $0.15

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Recent News

19-Jul-16: Completes detailed gravity survey at WSP lithium project. Results of gravity survey will be used to prioritize locations for exploration.

12-Jul-16: Zadar enters into MoU with Macarthur Minerals to farm its Ravensthorpe Lithium project in South Western Australia, approximately seven kilometers from the Mount Cattlin Lithium Project.

07-Jul-16: Begins detailed gravity survey at WSP lithium project.

22-Jun-16: Zadar starts geophysical survey and diamond drilling at its two projects in Clayton Valley.

15-Jun-16: Senior hydro geologist, Mr. Thomas Freehan joins Zadar's advisory board.

13-Jun-16: Zadar releases an update on its uranium projects, prioritizing its Passfield Lake Project as most compelling among its uranium projects.

07-Jun-16: Zadar commences trading on OTCQB Venture market under symbol ZADDF.

03-May-16: Zadar completes $0.7 million financing and meets requirements of two lithium project financings.

03-Mar-16: Zadar inks deal with GeoXplor Corp to buy stake in two lithium projects situated in Clayton Valley.

Shares Outstanding: 65.45 million

Market Cap: $14.5 million

52 Week (Low-High): $0.01 - $0.26

Note: All $ symbol represents Canadian Dollars

(CAD), unless otherwise specified.

www.RBMILESTONE.com

http://www.rbmilestone.com/

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commercialization of its lithium and uranium projects. The management team has 100 plus years of combined experience in the

mining and exploration industry with experienced investment advisors from Canada. The Zadar team also has an established

track record of identifying, funding and mining development projects in Canada and the US. Mr. Gray has more than 20 years of

extensive experience in handling exploration and development of uranium and precious metals mining projects. Further, senior

management has more than 22 years of successful experience in raising funds. They have also designed and supervised

quality assured successful ground and airborne geophysical surveys for uranium and many other commodities.

Compelling Lithium Market Dynamics enhances revenue potential

Demand for lithium is growing significantly, driven by its numerous applications in batteries, metals, ceramic/glass, polymers,

grease, air treatment, and others. Batteries are expected to play a vital role in the growth of lithium demand. This has led to an

exponential increase in demand from energy storage in transportation, grid storage and consumer electronics. Battery grade

lithium hydroxide (LiOH) traded at an average price of US$8,000 per ton in 2015, a 20% increase as compared to 2014. In

addition, the scheduled introduction of new model electric vehicles by numerous automakers will play an important role in driving

the demand for lithium. According to the International Energy Agency (IEA), global sales of electric vehicles sales increased at a

CAGR of 170% from 2010 to 2014 and are further estimated to grow at a CAGR of 77% till 2020. An existing supply deficit along

with an increasing demand scenario should lead to a short-term increase in lithium prices. This situation will undoubtedly benefit

lithium suppliers like Zadar.

Bottoming Uranium prices should result in recommencement of exploration activity

Uranium prices have been on a downward trend since the Fukushima nuclear accident in 2011. This was largely due to Japan’s

decision to shut down its nuclear energy program that led to a negative sentiment regarding uranium demand. Since 2011, the

price of uranium has been trading at approximately US$40 per pound. In the first half of 2016, the price fell below US$40 per

pound and is currently trading at US$26.65. Prolonged low uranium prices have led to numerous uranium producers reducing or

closing down exploration activities. However, the current price trend should reverse as the demand from nuclear energy

producers is estimated to increase. This increase is largely a factor of rising demand for electricity and several new nuclear

plants being constructed around the globe. Further, a large supply deficit and falling uranium stockpiles is expected to support

higher uranium prices. This trend should benefit uranium explorers such as Zadar and enable them to commence full-fledged

exploration.

Company Overview

Zadar Ventures is currently exploring and developing two lithium and five uranium projects across the Clayton Valley in the US

and Athabasca Basin in Canada, respectively. The Company plans to focus on its lithium projects due to favorable industry

prospects, primarily from lithium-ion batteries and an upward swing in lithium prices. We now present each project in detail

highlighting its feasibility, current status and mineralization, followed by a quick overview of the recent Macarthur Minerals’

Ravensthorpe MOU arrangement. We conclude this section with details on Zadar's uranium projects.

Key Lithium Projects (Clayton Valley) The Company operates two lithium projects WSP Placer Claims and CR Claims in Clayton Valley, Nevada, USA. Exhibit 1

displays the location of the Company’s lithium projects relative to the neighboring projects.

Exhibit 1: Zadar’s lithium projects location in Clayton Valley

Source: Company website

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Clayton Valley represents an internally drained, closed-basin with mountains, hills and ridges on all four sides. The valley is

comprised of Tertiary aged volcanic rocks that are interpreted to be the primary source for the lithium within the system. The

lithium, in solution, migrates from these Tertiary volcanics to the closed Clayton Valley Basin where lithium concentrates within

the confined in the aquifer of the Basin. Exhibit 2 displays a graphical representation of the working of an aquifer system.

Exhibit 2: Graphical representation of an aquifer system

Source: http://www.lgam.info/aquifer

WSP Project

On March 3, 2016, Zadar entered into an agreement with GeoXplor Corp. to acquire the WSP Placer Claims and CR Placer

Claims. The terms of the agreement are also given in detail below, after we discuss CR Claims. WSP Placer Claims are located

in the northern part of Clayton Valley, adjacent to the Albermarle Silver Peak mine complex, which is North America’s only

lithium production operation. The WSP Claims covers 425 hectares and are known to host to brines with an elevated

concentration of lithium. In 1986, the United States Geological Survey (USGS) drilled a 600 meter test hole just east of the

property and identified lithium concentration of up to 55 parts per million in the analyzed water sample.

Preliminary Economic Study

The Company plans to undertake a preliminary study in the near future. The project is expected to be commercially viable as the

neighboring Silver Peaks project has been successfully in extracting lithium from the brines present in Clayton Valley. Further,

other neighboring operations such as Pure Energy Minerals (TSXV: RE, OTCQB: HMGLF) have conducted pumping tests that

have shown the sustainability of extracting lithium from brine at their locations.

Current Status & Future Strategy

On July 7, 2016, Zadar completed detailed gravity survey on the WSP Claims to adequately define the basin shape and target

depths, which was according to their plan. The gravity survey on the WSP claim was conducted by Hasbrouck Geophysics, Inc.

from June 12 to June 23, 2016. A LaCoste & Romberg Model G gravity meter was used over entire WSP Claims, which

identified a total of 126 gravity station. The data was collected along 14 lines which were divided by 250 meters, at an interval of

125 and 250 meters. Currently, a bedrock depth modeling is under process on the WSP Claims. Further, the Company will start

exploration process depending upon the results obtained from the gravity survey. The Company’s future plans involve the

development of the WSP Claims by defining lithium brine host layers and implementing systematic extraction thereon.

CR Project As mentioned above, on March 3, 2016, the Company entered into an agreement with GeoXplor Corp to acquire the project.

The CR Claims are located in the eastern part of Clayton Valley, 18 kilometers southwest of the Rockwood Lithium Mine and

Processing Plant in Esmeralda Country, Nevada. The project covers over 330 hectares of an undrilled basin. Initial exploration

shows that the project is a potential host to brine, which is similar to lithium brine found at other Clayton Valley locations.

Preliminary Economic Study

Similar to WSP Placer Claims, the Company has planned to undertake feasibility studies in the near future. The project’s

proximity to the commercially successful neighboring projects raises the probability of its viability.

Current Project Status and Future Strategy

CR Claims project area has been the subject to initial gravity surveys that shows the features of an existing, isolated basin,

which has the potential to host lithium brines. The Company plans to undertake additional gravity survey and follow it up with

extensive drilling. Finally, the Company plans to test the presence of lithium concentrations from the brine solution samples

collected from the drill holes.

Terms of agreement with GeoXplor Corp. to acquire WSP and CR Placer Claims

Exhibit 3 presents the payment milestones and its status that provides the Company the option to earn 100% ownership in the

43 unpatented placer claims (WSP and CR Placer Claims).

http://www.lgam.info/aquifer

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Exhibit 3: Zadar’s terms of agreement to acquire WSP and CR Placer Claims

Milestone Status

Pay US$50,000 on the effective date Completed

Issue 1,000,000 common shares on TSX.V approval Completed

Pay US$50,000 on or before March 25, 2016 Completed

Issue 1,000,000 common shares on each of the first four anniversaries of the effective date Pending

Pay US$75,000 on each of the first and second anniversaries of the effective date Pending

Pay US$100,000 on each of the third and fourth anniversaries of the effective date Pending Source: Company Website

Further, the Company is required to make exploration expenditures of US$0.2 million in year one, US$0.3 million in year two,

US$1 million in year three and finally US$1 million in year four. After the fifth anniversary of the effective date, Zadar shall pay

advanced royalties of US$0.1 million annually.

The agreement also states that upon completion of an inferred resource calculation and confirmation of the presence of a

minimum of 0.1 million tons of lithium carbonate equivalent at an average grade of 28 parts per million, at either of the projects,

then the Company shall pay GeoXplor US$1 million in cash or shares or a combination thereof. Further, upon completion of an

economic study on either of the properties, the Company shall pay GeoXplor US$2 million in cash or shares or a combination

thereof. GeoXplor will also maintain a 3% gross value royalty return, of which 2% can be purchased by Zadar at any time for

US$5 million.

Ravensthorpe lithium acreage (MoU with Macarthur Minerals)

On July 12, 2016, Zadar signed binding a Memorandum of Understanding (MoU) with Macarthur Minerals Limited’s (TSX-V:

MMS) subsidiary, Macarthur Lithium Pty Ltd for entering into a Farm-in Agreement (“FIA”) for lithium exploration on Macarthur

Minerals’ Ravensthorpe acreage. Zadar will conduct due diligence within three months to confirm the presence of lithium in the

Ravensthorpe acreage, before entering into the FIA. The Ravensthorpe lithium acreage covers around 91 square kilometers

and is located in the Ravensthorpe region in South Western Australia. The Ravensthorpe lithium acreage is about seven

kilometers from the Mount Cattlin Lithium Project, owned by Galaxy Resources Limited (ASX: GXY). The Mount Cattlin Lithium

Project has an expected full capacity of about 137,000 tonnes per year of lithium production, in addition to 56,000 lbs. of

tantalum. Currently, the lithium acreage consist two exploration license applications, namely, E74/587 and E74/588, as shown in

Exhibit 4. We remind the reader that pegmatite often contain rare earth minerals, in addition to being the primary source of

lithium, either as psodumene, lithiophyllite or lepidolite.

EL74/588 is situated near the margin between the Yilgarn Craton granites and the South-West Terrane greenstone (which is

intruded by numerous pegmatites, feldspar dykes, quartz veins and dolerite dykes) and Annabelle Volcanics to the south west

and the Youanmi Terrane greenstones to the north. Pegmatites are also known immediately south of the south-western portion

of the tenement.

E74/587 is positioned primarily on the Annabelle Volcanics (consisting mostly of metamorphosed basalt and pyroclastic tuff).

The area is also adjacent to the Manyutup Tonalite, which is located in the same setting as the well-explored Mount Cattlin

Lithium Project (ten kilometers to the north-east). Exhibit 4 shows that a large pegmatite is mapped on the exploration license

application and extends for almost half its length.

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Exhibit 4: Location of Ravensthorpe lithium acreage’s two exploration regions

Source: Company Website

Terms of MoU with Macarthur Minerals to Ravensthorpe acreage

Zadar will initially earn into a 51% stake in Ravensthorpe lithium acreage by spending AUD 2 million, within two years

after they receive the Ravensthorpe exploration license.

Zadar can also acquire an additional stake of 24% taking its total interest on the Ravensthorpe acreage to 75% after a

NI43-101 Preliminary Economic Assessment (“PEA”) is completed within three years of receiving the Ravensthorpe

exploration license.

Macarthur Minerals will manage the lithium exploration program on the Ravensthorpe acreage. Macarthur Mineral will

be paid project management fee of 15% of the total costs until Zadar completes a positive PEA report.

Macarthur Lithium will have a free carried interest of not less than 25% throughout the period of the FIA

Zadar will have the first right to offer to purchase Macarthur Lithium’s 25% share of Ravensthorpe acreage

Additionally, if Zadar fails to complete a positive PEA, a joint venture would be formed between Zadar and Macarthur

Lithium. Zadar will then have 51% interest the Ravensthorpe acreage and Macarthur Lithium will have 49% stake,

while maintaining a 25% free carried interest (effectively only contributing to 24% of expenditures).

Uranium Projects Zadar Ventures holds 64,735 hectares of high potential uranium projects located in Athabasca Basin. This basin is located in the

Northern Saskatchewan and Alberta provinces in Canada. The Company’s uranium projects are adjoining major existing

uranium projects such as Cigar Lake Mine, Key Lake Mine, McClean Lake Mine, Fission Uranium Mine and Rook Mine, which

are run by established companies such as Cameco Corp., Uranium Participation Corp. and Areva Resources. Athabasca Basin

is known for its high-grade uranium deposits and currently supplies approximately 20% of the world’s uranium. Currently, the

most important mine is the McArthur River Mine, which has the world’s largest deposits of high-grade uranium. According to

Rockstone Research, Athabasca Basin’s uranium deposits grades are 20 times higher averaging at 2% as compared to the

global average grade of 0.14%. Exhibit 5 displays the various mines located in the Athabasca Basin.

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Exhibit 5: Various uranium projects in the Athabasca Basin

Source: Company filings

Exhibit 6 presents the various uranium projects area and ownership on each of the projects.

Exhibit 6: Ownership and area of uranium projects


Passfield Lake Project

The Passfield Lake project, which covers 27,505 hectares, is located on the Passfield structure in the Athabasca Basin, SK. It is

located on a major regional shear zone, which has shown strong surface geochemical anomalies along with the presence of

highly altered and radioactive rocks.

The Passfield Lake Project has seen advanced exploration activities such as lake sediment sampling, soil and biogeochemical

sampling, airborne electromagnetic and gravity surveys, as well as targeted diamond drilling since project development in the

mid 2000’s. Initial diamond drilling and exploration activity has identified presence of uranium within the project area. Further,

soil and bio-geochemical surveys indicated the presence of boron, lead, molybdenum, vanadium and arsenic. Zadar expects to

conduct additional diamond drilling to follow-up the successful drilling campaigns of the late 2000’s towards definition of the

uranium mineralization and ultimately prepare a resource estimate. Exhibit 7 displays the location of the Company’s Passfield

Lake projects.

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Exhibit 7: Zadar’s Passfield Lake project (an extract from Exhibit 5)



On July 31, 2015, the Company wrote off $10,000 on the Passfield Lake project. The Company has currently reduced its

exploration expenditures due to the global economic slowdown. However, the Company has expressed confidence in project’s

long-term worth and should continue to carry out exploration activities once uranium prices rebound.

Terms of Agreement

On September 25, 2013, the Company entered into an agreement with Canterra Minerals Corporation, Triex Minerals Corp and

Thelon Capital to acquire a 100% interest in the mineral claims located in the Athabasca Basin, Canada. Total consideration

stood at $25,000 million in cash and 1.74 million shares. During 2014, the Company paid additional fees of $50,000 to extend

the option period along with a finder’s fee of $6,000. The vendor will retain a Net Smelter Return (NSR) of 2% out of which the

Company has the option to purchase 1% of the NSR for $1 million.

West Carswell Project

The West Carswell Project is located in the Western part of the Carswell Structure and covers approximately 8,157 hectares.

Exhibit 8 displays the location of West Carswell project. The Carswell Structure is considered to be a meteorite impact site. The

project’s neighboring areas such as Shea Creek and Harrison Shear Zone show presence of high-grade uranium deposits. The

Shea Creek is located outside Carswell Structure and is the third largest uranium deposit in the Athabasca Basin. Meanwhile,

the Company has conducted electromagnetic and geophysical surveys in the project area, which has shown strong presence of

uranium deposits. Presence of uranium deposits in the neighboring zones further increases the probability of presence of high-

grade uranium deposits at West Carswell.

Exhibit 8: Zadar’s West Carswell project location


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On July 31, 2015, the Company wrote off $10,000 as impairment to the West Carswell property. Similar to the Passfield Lake

Project, the Company has reduced activity in this project also owing to global economic slowdown.

Terms of Agreement

On December 17, 2013, the Company entered into an agreement with Canterra Minerals Corporation and Triex Minerals Corp

to acquire a 100% interest in certain mineral claims located in the Athabasca Basin, Saskatchewan by issuing 385,000 common

shares. Further, the vendor will keep a NSR of 2%, out of which the Company may purchase 1% for $1 million.

Riverlake Project

The Riverlake project covers approximately 5,583 hectares located in the Athabasca Basin. The project is considered to have

similar geology as the Key Lake mine, which remains as one of the high-grade deposits ever discovered (average grade of over

2% uranium). Historical exploration involves airborne and ground electromagnetic surveys and soil sampling. At the Riverlake

property, the Company identified a 1,200 meter long-600 meter wide anomaly with uranium values peaking at 3.74 parts per

million. Further, the Company also discovered the presence of arsenic, molybdenum, vanadium and lead.

Exhibit 9: Zadar’s Riverlake projects (an extract from Exhibit 5)



Currently, the Company has suspended all exploration and development activities at the Riverlake project due to unfavorable

market conditions. However, the Company plans to undertake additional exploration and development of the project once

uranium prices rebound.

Terms of Agreement

On November 21, 2013, the Company entered into an agreement with Canterra Minerals Corporation, Triex Minerals Corp and

African Oil Corp to acquire a 100% interest in the projects mineral claims located in the Athabasca Basin by issuing 0.33 million

shares. The vendor will be entitled to 2% NSR, out of which the Company has the option to purchase 1% of the NSR for $1

million.

Upper Poulton Lake Project

The Upper Poulton Lake project covers approximately 2,730 hectares and lies 21 kilometers southeast of Cigar Mine project,

which is the second largest high-grade uranium deposit in the world. The Company has not conducted any significant

exploration activity in the project. Historically, drilling has focused on the neighboring Bird Lake Fault. Drilling activity has shown

the presence of two and a half kilometers wide uranium and lead enriched boulder that partly covers the trace of the fault.

Future explorations target the clear determination of a series of electromagnetic anomalies that were identified through an

airborne survey conducted by the previous project owners’ in 2004. Further, drilling conducted by Cameco revealed the

evidence of hydrothermal alteration that is associated with the presence of uranium.

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Exhibit 10: Zadar’s Upper Poulton location and neighboring mines (an extract from Exhibit 5)


Terms of Agreement

On April 15, 2014, the Company entered into an agreement with an arm’s length vendor to acquire a 100% interest in the Upper

Poulton Lake Property located in Saskatchewan, Canada. Exhibit 11 shows the terms of agreement with the vendor.

Exhibit 11: Terms of agreement to acquire 100% interest in Upper Poulton

Milestone Status

Pay $10,000 non -refundable due diligence deposit Completed

Pay $40,000 and issue 100,000 shares by April 30, 2013 Complete

Pay $50,000 by January 18,2004 Complete

Issue 550,000 shares by April 10, 2014 Complete

Pay $75,000 by April 10, 2015 Complete

Pay $50,000 and issue 250,000 shares by April 10,2016 Complete

Spend a minimum of $2 million in exploration expenditure by April 10, 2017

Complete


The vendor will also be entitled to a 1% NSR, out of which the Company has the option purchase 0.5% of the NSR for $1

million.


During the fiscal year 2015, Zadar’s interest in Upper Poulton Lake project lapsed. Since, the Company did not meet the terms

of agreement they do not hold the property. However, the Company stated that it began negotiating settlement terms with the

arm’s length vendor. All the capitalized costs associated with the property were written off.

Whiskey Gap Project

The Whiskey Gap Property lies along the Alberta Montana border and consists of two metallic mineral permits, each containing

an area of approximately 36 square miles. The property is to host significant uranium deposits similar to that of uranium ore

bodies found in South Texas and Wyoming. In the past, the Company conducted preliminary sampling of water sources, which

indicated strong presence of uranium. Zadar also undertook extensive exploration and drilling activity. In 2011, the Company

released a technical report highlighting the results of the exploration actives, which were positive.

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Exhibit 12: Whiskey Gap project location



The Company entered into an agreement with Albert Limited on April 29, 2010 to acquire 60% of the Whiskey Gap property.

The terms of agreement are shown in Exhibit 13.

Exhibit 13: Terms of Agreement with Albert Limited to acquire 60% interest in the Whiskey Gap project

Milestone Status

Pay $12,500 and issue and allot 100,000 shares of the Company Completed

Pay $12,500 and issue and allot 200,000 shares of the Company on or before first anniversary of the effective date Completed

Pay $25,000 and issue 300,000 shares of the Company on or before second anniversary of the effective date Completed

Pay $100,000 by September 30, 2010 on exploration expenditure on the property Completed

Pay $100,000 by June 30, 2012 Completed

Pay $50,000 and allot 500,000 shares by December 31, 2012 Completed


Further, Zadar stated that it had the option to acquire the remaining 40% in the property by paying an additional $100,000 to the

vendor and issuing 1 million shares by September 30, 2016. The Company on July 31, 2015 decided to write off $10,000 as an

asset impairment cost and halted exploration activity in the property due to unfavorable market conditions.

Abandoned Project

In the year 2015, the Company returned the Bullrun property to the vendor without penalty. Similarly, in 2015, Zadar abandoned

Bullrun Blocks D and E. Further, in 2015, the Company abandoned the Patterson Northeast Property and allowed its interest in

the Stone Road claims to lapse. All capital costs associated with these properties were written off during the year ended 2015.


Company Timeline and Key Events

Exhibit 14 below shows the reverse chronological timeline of the evolution of Zadar Ventures, summarizing some key annual

events for the Company since 2011.

Exhibit 14: Timeline summarizing significant annual events since 2011

Dates Events

12-Jul-16 Zadar Ventures and Macarthur Lithium Pty Ltd signed a Memorandum of Understanding (MoU) for entering into Farm-in-Agreement (FIA) for lithium exploration on Macarthur’s Ravensthorpe acreage

07-Jul-16 Completed detailed gravity survey on WSP lithium project, to help prioritize lithium explorations

22-Jun-16 Zadar Ventures started geophysical survey and diamond drilling on two lithium projects in Clayton Valley

13-Jun-16 Zadar Ventures released an update of its uranium project portfolio indicating that its Pasfield Lake project has best potential among its uranium projects

07-Jun-16 Started trading on the OTCQB Venture market under symbol ZADDF

03-May-16 Completed $0.7 million financing and met purchase obligations of two lithium projects in Clayton Valley

03-Mar-16 Entered into an agreement with GeoXplor Corp to acquire two lithium projects in the Clayton Valley

07-Jan-16 Completed $0.235 million financing that allowed the Company to proceed with its current development plans

21-Sep-15 Appointed Ms. Yana Bobrovskaya to the Board of Directors. Ms. Bobrovskaya has over ten years of international business experience and has served on the board of several publicly listed companies.

27-Feb-14 Announced an incentive stock option plan for its directors, officers and employees

28-Jan-14 Completed a $2 million financing consisting of 0.93 million shares

19-Dec-13 Entered in an agreement with Canterra Minerals Corporation and Triex Minerals Corp to purchase 100% interest in West Carswell uranium project

27-Nov-13 Entered in an agreement with Canterra Minerals Corporation, Triex Minerals Corp and Magnum Uranium Corp to purchase Stony Road uranium projects

20-Nov-13 Entered into an agreement with Canterra Minerals Corporation, Triex Minerals Corp and African Oil Corp to purchase Highrock and Riverlake Uranium projects

18-Nov-13 Raised $2 million by issuing 10 million shares at $0.2 per share

22-Oct-13 Announced completion of Phase II program on Patterson Northeast Uranium (PNE)

09-Oct-13 Received acceptance letter from TSX Venture Exchange for purchase of Passfield Lake Uranium Project

17-Sep-13 Arranged a non-broker private placement to raise up to $2 million by issuing 10 million shares at $0.2 per share

26-Sep-13 Entered in an agreement with Canterra Minerals Corporation, Triex Minerals Corp and Thelon Capital to purchase Passfield Lake Uranium Project

11-Sep-13 Discovered radioactive boulders in Phase I exploration program in the Company's PNE uranium project and initiated follow-up phase II exploration program

29-May-13 Entered in an agreement with Canterra Minerals Corporation and Triex Minerals Corp to purchase all of the Canterra/Triex interest in five strategically located uranium project with substantial data package

16-May-13 Entered agreement with vendor to acquire a 100% stake in PNE project

24-Apr-13 Zadar Ventures entered in an option agreement with Geomode Mineral Exploration Ltd for material change

17-Apr-13 Entered a deal with vendor to purchase Bull Run Uranium Project in Patterson Lake Area which consisted of three claims

09-Apr-13 Zadar Ventures inked deal with vendor to acquire Upper Poulton Lake Uranium Project by paying $0.1 million cash and issuing 0.9 million shares

29-Jun-12 Announced terms of agreement with Alberta Limited for acquisition of Whiskey Gap Property

28-May-12 Completed initial public offering by offering 2.2 million shares for gross proceeds of $550,000

19-Sep-11 Entered an agreement with Bua Capital and Jason Walsh for drilling operations

19-Sep-11 Released technical report for Whiskey Gap Uranium Project


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Industry Overview

Over the past two decades, new applications of lithium have been found, resulting in the transformation of the lithium industry.

Currently, lithium is produced from two sources, lithium enriched brines and lithium bearing minerals. Despite multiple

applications and uses, growing demand from the Electric Vehicles (“EV”) and Energy Storage Solutions (“ESS”) market is

expected to continue to significantly drive the demand and pricing for lithium chemicals.

We now present a detailed description of the lithium industry’s dynamics and its future direction.

Lithium prices could stabilize in 2017 & beyond

As seen in Exhibit 15, since 2014, the prices of lithium carbonate has increased rapidly. The primary reason for the price rise is

the demand-supply imbalance. There is a high demand for lithium globally due to its newly discovered applications in the EV

and ESS markets. Further, demand for lithium from traditional markets (electronics, ceramics, medical, glass, etc.) has

remained constant. The supply side of the market has been late to respond to this rising demand and existing brine operators

have not been able to not ramp up production quickly.

However, the rise in prices and unmet demand has led to the entry of new players. Large projects around the globe with

capacities greater than 20 tons per annum are expected to come online by 2016, which could lead to supply-demand

rebalancing in 2017. This should lead to lithium prices stabilizing over the next three years.

Exhibit 15: Promising lithium market dynamics should benefit Zadar

-

5,000

10,000

15,000

20,000

25,000

-

100,000

200,000

300,000

400,000

500,000

600,000

2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Prices (

US

$ p

er

ton)

Dem

and &

Supply

(in

tons)

Global supply Global demand Lithium carbonate - 99.5% prices Lithium hydroxide prices Lithium carbonate - 98.5% prices

Source: Deutsche Bank Market Research

Falling lithium-ion energy costs could lead lithium-ion batteries becoming mass market devices

The costs of production and operating a lithium-ion battery have fallen by approximately 75% since 2010. As of May 2016, the

average lithium-ion energy cell costs stood at US$225 per kWh as compared to US$900 per kWh in 2010. Further, the energy

costs for an automotive system as well as stationary energy systems have also fallen. This is largely due to development of new

manufacturing facilities, unlocking of economies of scale and technological innovation. As per Deutsche Bank’s Lithium 101

Market Research, the costs are expected to fall further to US$150 per kWh by 2020. Such cost reduction has opened up

completely new avenues for lithium-ion applications and has made existing applications cheaper. Exhibit 16 presents the fall of

lithium-ion battery costs since 2010.

13


Exhibit 16: Falling lithium-ion battery costs should open up new applications

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US

$ pe

r kW

h

Energy Cell Automotive System Stationary Energy System

Source: Company website

Exponential growth in demand from the Electric Vehicle and Energy Storage Systems market

Increasing economies of use and the availability of cheaper batteries have made it possible for the automobile industry to

develop and market Electric Vehicles (EVs). The pioneer in this space has been Tesla, but the catalyst for rising demand has

been the Chinese subsidies for both passenger and commercial EVs. Currently, Hybrid Electric Vehicles (HEVs) and Plug-In

Hybrids Vehicles (PHEVs) dominate the EV space. Full electric vehicles accounted for only 0.6% of the global automobile sales

in 2015. The sales for all types of EVs are expected to grow to 16 million vehicles by 2025 with full electric vehicles accounting

for 3% of global sales. Such demand from the EV industry should drive consumption from the 2015 levels of 25 kilotons to 205

kilotons in 2025, resulting in a CAGR growth of 23% over the period. Exhibit 17 presents Deutsche Bank’s forecast of sales of

vehicles of various categories.

Exhibit 17: Estimated increase in EV sales should drive lithium demand

-

20

40

60

80

100

-

2

4

6

8

10

2015 2020 2025

Die

sel &

Gasolio

ne v

ehic

le s

ale

s (

in m

illio

ns)

HE

V, P

EV

& F

ull

EV

sale

s (

in

mill

ions)

Hybrid Plug-in Hybrid Full EV Diesel Gasoline


Energy Storage is also expected to drive demand for lithium in the near future. Currently, the ESS market is at an inflection

point. Low cost of lithium-ion batteries has now made energy storage applications economically feasible. Further, the rapid

growth in solar capacity addition is creating new demand for efficient and low cost energy storage solutions. Exhibit 18 presents

the global solar capacity addition. Deutsche Bank estimates the lithium battery consumption to reach 48GWh by 2025, resulting

in a 54% CAGR growth and accounting for almost 97% of the battery use in energy storage. Such growth is expected to drive

the battery industry lithium demand from virtually zero to 34 kilotons by 2025.

14


Exhibit 18: Solar capacity addition should drive demand for energy storage systems

0

50

100

150

200

250

300

350

400

0

10

20

30

40

50

60

70

80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E

To

tal G

lob

al C

ap

acity (

GW

)

An

nu

al C

ap

acity A

dd

itio

n (

GW

)

Annual Capacity Addition Low Scenario Capacity Addition High Scenario Capacity Addition Total Global Capacity

Source: Global Market Outlook for Photovoltaics 2015-2019, EPIA and RBMG Research

Further, traditional markets mentioned earlier are expected to continue to grow and increase the lithium demanded in the near

future. Traditional markets are expected to grow at 3.6% per annum over the next decade and should increase the lithium

consumption from 155 kilotons in 2015 to 222 kilotons in 2025. Such favorable prospects from various end markets should aid in

development and growth of lithium companies.

New entrants and production by existing producers - a response to rising demand

Lithium is not a rare element but its market is still underdeveloped. However, the supply side of the market is not fragmented or

lacking capital. Five of the largest global producers of lithium control 46% of the global reserves and four of the largest

producers control 83% of the global supply. Despite having access to financial and owning mineral resources, the producers

have not actively responded to meet rapidly rising demand. 50% of the global lithium supply comes from the capital intensive

brine operations that have not been able to ramp up production to meet the rising demand. As mentioned earlier, the current

global demand for lithium outstrips global supply. However, this phenomenon is expected to reverse in the near future with

global supply exceeding demand as new mining operations are expected to come online by 2018 and existing producers ramp

up production to meet demand.

Exhibit 19: Supply of lithium to be driven primarily new operations

171000

16000

3300013000

1000017000

18000 278000

0

50000

100000

150000

200000

250000

300000

2015 Salar deOlaroz

Mt. Marion Mt. Cattlin La Negra Chineseproduction

Existingproducers

2018

Lithiu

m p

roduction (

in t

ons)


Uranium Industry Dynamics

Demand for uranium is a function of nuclear energy generation along with operating factors and fuel management at reactors.

There has been a stable increase in nuclear power generation due to the commission of new nuclear plants. Globally there exist

substantial uranium resources to meet this demand, but its extraction and supply has not been adequate to meet demand.

Supply of uranium is a combination of uranium prices, uranium resources, its processing and regulations.

15


Increasing dependence on nuclear energy should continue to drive demand for uranium

Use of nuclear fuels as an energy source has played a major part in the development of nuclear technology. Nuclear energy is

considered to be a clean energy source and its contribution to energy generation is expected to grow. As of January 1, 2016,

there were 439 nuclear reactors operating in 30 countries. These reactors have the combined capacity to generate 382.5

Gigawatts of electricity and supply over 11% of the global electricity need. Further, as of January 1, 2016, there were 66 new

nuclear reactors under construction in 14 countries. The principal countries investing in nuclear energy are China, India, Russia,

the US, UAE and South Korea.

Exhibit 20: Construction of new nuclear plants

Country Numbers

China 24

Russia 8

India 6

United States 5

South Korea 4

UAE 4 Source: World Nuclear Association

As per Ux Consulting’s Uranium Market Outlook - Q4 2015, global nuclear energy capacities are estimated to increase by 44%

to 511 Gigawatts in 2030 from 377 Gigawatts in 2015. Majority of this growth in capacities is expected to come from China

(64%) followed by India, Korea and Russia (collectively accounting for 24%). This growth in nuclear capacities is expected to

drive the uranium demand to 133.5 thousand tons by 2030 from 89.5 thousand tons in 2015. Such demand for uranium is

expected to be beneficial for Zadar’s uranium mine prospects.

Estimated increase in supply will not be adequate to meet rising demand

As per Ux Consulting, uranium production increased marginally in 2015 to 75.6 thousand tons from 72.5 thousand tons in 2014.

However, this increase was largely due to ramp up of production at the Cigar Lake mine, the largest high-grade uranium mine.

Factoring out the Cigar Lake production, global supply declined by roughly 2.6 thousand tons representing a 3.6% decline in

2015 as compared to 2014. However, production in Kazakhstan, Russia and Australia remained relatively stable. Ux Consulting

has estimated that the global supply will increase by 11.5% from 75.6 thousand tons in 2015 to 84.3 thousand tons by 2025.

However, this increase in supply is not adequate to meet the rising demand and the demand-supply imbalance is expected to

continue in the future. As seen in Exhibit 21, in the past, there has always existed a supply deficit.

Exhibit 21: Uranium supply not adequate to meet demand

0%

20%

40%

60%

80%

100%

0

20000

40000

60000

80000

100000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Su

pp

ly a

s a

% o

f D

em

an

d

Ura

niu

m S

up

ply

(i

n to

ns)

Uranium Supply Supply as a % of Demand

Source: World Nuclear Association

Supply-demand imbalance could lead to a short-term spike in prices

As seen in Exhibit 22, uranium prices peaked in 2007, before crashing to US$40 per pound. However, in early 2010, uranium

prices witnessed a short-term recovery before crashing again in 2011 to US$40 per pound. This was largely due to the negative

sentiment surrounding nuclear energy after the Fukushima accident in Japan in 2011. Since the incident Japan’s nuclear

program has completely taken offline.

16


Despite a demand supply imbalance, the prices of uranium have not increased. Further, uranium price per pound has broken

the US$40 resistance. However, this downward price trend is expected to reverse despite Japan’s nuclear program closure.

This price rise is expected to be driven by falling uranium stockpiles and increasing nuclear capacity addition around the globe.

A revival in uranium prices is expected to benefit Zadar.

Exhibit 22: Uranium prices has been trading at levels of US$40 per pound since the Fukushima accident in 2011

0

40

80

120

160

U.S

. $ p

er

pound

UxC Uranium U3O8 Swap Futures End of Day Settlement Price

Source: www.indexmundi.com

Canada estimated to be the fastest growing market in a highly oligopolistic market

In 2015, the top four producers accounted for 62% of the global uranium production. Further, nine of the top producers

accounted for 88% of the global uranium supply. Uranium mining is also highly geographically concentrated with Kazakhstan,

Canada and Australia supplying approximately 70% of the world uranium. However, competition in the uranium exploration and

development is very high. Exploration for uranium is taking place globally, but capital expenditures are the highest in Canada

and Africa. The Athabasca Basin in Canada is host to high-grade uranium deposits. Exploration at the Athabasca Basin is

generally divided, with the Eastern part consisting of rich infrastructure associated with existing uranium mining operations. In

contrast, the Western part of the basin does not have good infrastructure facilities despite several recent uranium discoveries.

However, this is expected to change, as several infrastructure projects have been planned by the Canadian government. The

Company’s uranium projects, which are primarily located in the Western part of the basin should benefit from such development.

SWOT Analysis

Strengths Location advantage and good mineral prospects

Zadar’s lithium and uranium claims are strategically located with access to several intermodal facilities. Further, the Company’s

projects in Nevada and Athabasca Basin are located in the world’s most welcoming mining jurisdictions. The Company’s lithium

projects are located near the Tesla Gigafactory, offering the potential for prospective lithium supply agreement with Tesla. The

lithium projects are located in Clayton Valley, which is known for its lithium brine resources. Neighboring projects in Clayton

Valley have shown feasibility in lithium pumping and extraction. This supports feasibility of the lithium projects. Further, the

Company’s uranium projects are located in Athabasca Basin, which is also known for its high-grade uranium resources and

favorable government regulations.

Specialty minerals with numerous applications

Lithium and uranium are globally important specialty minerals, which are currently experiencing a severe worldwide demand-

supply imbalance. New applications for these minerals are being discovered, which could add to the current demand-supply

imbalance. Further, traditional demand for these minerals is also expected to grow in the future. The Company’s product

diversification offers it the opportunity to serve these markets and diversify commodity risk. Zadar has the potential be a key

player in lithium markets.

Weaknesses Negative operating cash flow

Since inception, the Company has not generated any revenues and has been generating negative cash flows from operations.

To meet its operating and capital expenditure requirements, Zadar has raised funds through equity issuance. This is expected to

continue in the future, as there is no visible timeline for commercialization. Further, fund raising is a factor of equity market

17


fundamentals and the ability of the management to successfully close equity placements. Negative operating cash flows and

dependence on equity funding also affects the Company’s going concern ability.

Inactive exploration in projects due to unattractive end markets

Exploration and development expenditures at Zadar’s uranium projects have been controlled. During the year 2015, the

Company gave up its interest in the Bullrun uranium and the Patterson North Eastern uranium projects. Further, during the

same year, the Company’s interest in two other uranium projects lapsed. All exploration and development at the remaining

uranium projects have been stopped due to unattractive end markets economics, specifically low uranium market prices. The

Company is also expecting an improvement in the infrastructure facilities provided by the authorities, before undertaking any

further expenditure at the Riverlake, Passfield and West Caswell projects.

Opportunities Growing Lithium End Markets

Over the last decade, lithium consumption has grown significantly due to increased demand for batteries. There currently exists

a large supply deficit in the market, which has led to a surge in lithium prices. This phenomenon is anticipated to continue in the

2017 and beyond. Demand from lithium’s traditional markets such as ceramics, glass, lubricating greases, and others are also

expected to increase. Such favorable prospects from various end markets should aid in development and growth of lithium

companies.

EVs – Innovation in Automobile Space

Growing concerns regarding greenhouse gas emissions has led to an increase in demand for environment friendly vehicles.

Subsequently, automakers across the globe have launched or are planning to launch EVs. Further, recent announcements by

Tesla and its competitors such as BYD have led to higher expectations of further growth in the EV market. As mentioned above,

Deutsche Bank forecasts the lithium battery consumption to reach 48GWh by 2025, a 54% CAGR growth from 2015. Such

growth is expected to drive the battery industry lithium demand from virtually zero to 34 kilotons by 2025.

Uranium Project and large uranium supply deficit

Athabasca basin is known for its high-grade uranium deposit. The Cigar Mine, in the Athabasca Basin, is well known for its high-

grade uranium deposit in the world. The Company’s projects are located near this mineral rich area. Growing addition of nuclear

plants across the globe is expected to be the driving factor for uranium demand and prices. As mentioned earlier, the global

nuclear energy capacities are estimated to increase by 44% to 511 Gigawatts by 2030 from 377 Gigawatts in 2015. This should

expand the current demand-supply disparity and consequently result in rising in long-term uranium prices.

Potential for a supply agreement with Tesla

Tesla Motors, which is setting up its Gigafactory near the Company’s lithium project, is estimated to demand large quantities of

lithium for its EVs. Further, the recent supply agreement between Tesla and Pure Energy for lithium has triggered expectations

among peer industries. The Company’s strategic location and prospective high-grade lithium reserves should offer the

opportunity to be on Tesla’s supplier list.

Threats Competition

Zadar Ventures is in the mineral resource industry, which is in highly competitive in nature. The Company competes with other

lithium and uranium producers across the world on factors such as price, quality, size of mineral claims and partners for joint

ownership. Further, falling commodity prices due to increased competition or excess supply in the market, may affect the values

of the Company’s potential reserves. Additionally, the Company is yet to commence full-fledged exploration activities, which

raises the risk of losing out to competitors with better financial resources, operations and technology.

Regulations

Exploration activities of the Company are subject to various laws and regulations. Zadar has to abide by policies governing

development, production, imports, exports, taxes and royalties, waste disposal, occupational health, environmental protection

and safety. The Company is also required to apply for certain approvals or licenses for development of mineral properties. Cost

of exploration activities for Zadar may increase if they fail to receive the necessary approvals and licenses. The Company’s

compliance cost may also increase if there are changes in regulations or delay in acquiring permits.

Changes in technology in the lithium industry

The Company needs to employ the latest technology to efficiently produce high-grade quality lithium. Currently, the main focus

of researchers is to extend the battery life or limit the quantity of lithium for attaining high power. Further, researchers are finding

ways to use aluminum along with lithium to make batteries, which has four times the capacity of lithium-ion. Such research in

technology may risk lithium demand. Nevertheless, market experts estimate that this technological advancement is highly

unlikely near term.

18


Financial Performance

We now discuss the financial performance of Zadar Ventures. We begin by analyzing the Company’s cash burn followed by the

financial statements of the Company.

Exhibit 23 presents the cash burn analysis of Zadar Ventures. The Company’s average cash burn stood at $35,000 per month.

As of April 30, 2016, the Company’s cash reserve stood at $404,654. The Company has not generated positive cash flow from

operations and incurs expenses relating to project exploration and development. At the end of April 30, 2016, excluding current

liabilities of $434,315, the Company had cash reserves for a survival period of two months. Further, in April 2016, the Company

raised $600,000 through a non-brokered private placement and in May 2016, raised another $700,000. The capital raised

through private placement will be utilized for exploration and development of the Clayton Valley lithium projects and for working

capital needs. Taking into account the current average burn rate and existing cash levels, Zadar Ventures must continue to

regularly raise capital to meet its working capital and capital expenditure needs.

Exhibit 23: Cash burn analysis (in $ ‘000s)

Period/ Amount ( in '000) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 AVG

Net operating cash flow (44) (104) (17) (8) (14) (99) (9) (67) (342) (78)

Net investing cash flow (41) (43) - - - - (6) (3) (152) (27)

Net financing cash flow 101 112 - - - 118 7 179 789 145

Cash position (quarter end)

61 27 10 2 1 7 0 98 404 57

Burn Rate per month (29) (49) (6) (3) (5) (33) (5) (23) (165) (35)

Survival period (in months)

2.1 0.6 1.8 0.9 0.1 0.2 0.0 4.2 2.4 1.3

Source: RBMG Research

Exhibit 24 displays Zadar's Income Statements for the three months ended April 30, 2016 and April 30, 2015. During the period,

the Company did not generate any revenues from sale of products. During the three months ended April 30, 2016, the Company

reported a net loss of $627,804 as compared to a net loss of $205,744 in the same period in 2015. The increase in losses was

mainly attributable to expenses related stock based compensation and consulting fees as compared to previous period in 2015.

Exhibit 24: Income Statements for the quarters ended April 30, 2016 and 2015 (in $)

Particulars 30-Apr-16 30-Apr-15 Y-o-Y (%)

Administrative expenses

Accounting and audit 5,000 8,000 -38%

Bank charges and interest 649 44 NM

Consulting 313,216 - NM

Legal -

Listing and filing fees 15,239 6,379 139%

Management fees 20,500 4,500 356%

Office and sundry 21,211 14,441 47%

Promotion 54,323 1,336 NM

Stock based compensation 216,389

NM

646,527 34,700 NM

Unrealized loss on investment 23,269 (171,044) -114%

Foreign exchange loss (4,546)

NM

Net loss and comprehensive loss (627,804) (205,744) 205%

Basic and diluted loss per share (0.01) (0.01)

Basic and diluted weighted average shares 36,314,257 26,352,300


19


Exhibit 25 shows Zadar's Balance Sheets as of April 30, 2016 and July 31, 2015. As on April 30, 2016, the Company’s cash and

cash equivalents stood at $404,654, a significant increase as compared to July 31, 2015. The rise was due to the closure of a

private placement in April 2016. Zadar’s investment reduced by 54% due to fair value adjustments during the nine months

ended April 30, 2016. Total current liabilities increased by 19% during the nine months ended April 30, 2016 as compared to

July 31, 2015.

Exhibit 25: Balance Sheets as of January 31, 2016 and July 31, 2015 (in $)

Particulars 30-Apr-16 31-Jul-15 Y-o-Y (%)

ASSETS

Current

Cash 404,654 7,495 NM

Investment 80,654 175,827 -54%

Goods and services tax recoverable

45,430 36,685 24%

Due from related parties 31,665 29,206 8%

Prepaid expenses 3,000 3,000 0%

$565,403 $252,213

Exploration advances 6,154 6,154

Exploration and evaluation assets

279,982 40,000 NM

Total assets $851,539 $298,367 185%

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued liabilities

363,450 252,579 44%

Due to related parties 70,865 112,721 -37%

Total Current liabilities 434,315 365,300 19%

Shareholders' equity

Share capital 5,714,878 4,488,483 27%

Subscriptions received in advance

- 20,100 -100%

Subscriptions receivable (141,240) (31,840) 344%

Contributed surplus 410,098 193,709 112%

Deficit (5,566,512) (4,737,385)

417,224 (66,933)

Total liabilities and shareholders' equity

851,539 298,367 185%


Exhibit 26 presents Zadar Ventures’ Cash Flow Statements for the nine months ended April 30, 2016 and April 30, 2015. For the

nine months ended April 30, 2016, the Company’s operating cash outflows significantly increased to $417,898 as compared to

the outflow in during the same period in 2015. This was primarily attributable to a significant decline in net income between the

two periods. Net cash used in investing activities stood at $159,982 for the period ended April 30, 2016, due to expenditures

related to exploration and evaluation. During nine months ended April 30, 2016, the Company issued common shares worth

$1.01 million through private placement.

20


Exhibit 26: Cash Flow Statements for the six months ended January 31, 2016 and January 31, 2015 (in $)

Particulars As at Apr 30, 2016 As at Apr 30, 2015 Y-o-Y (%)

Operating activities

Net income (loss) for the year ($829,127) ($359,802) 130%

Adjustments: NM

Unrealized loss on investment 95,173 234,280 -59%

Stock based compensation 216,389

Changes in non-cash working capital

Goods and services tax recoverable

(8,745)

(4,886) NM

Advances to related parties

(2,459) 16,416 NM

Prepaid expenses 0 1,870 NM

Accounts payable and accrued liabilities 110,871 73,659 51%

Net cash used in operating activities

(417,898)

(38,463) NM

Investing activities

Exploration and evaluation expenditure

(159,982) 0 NM

Net cash used in investing activities

(159,982) 0

Financing activities

Proceeds from issuance of common stock, net of issue costs 1,016,895 0

Advances (to) from related parties

(41,856) 12,000

Net cash used in investing activities 975,039 12,000

Net change in cash and cash equivalents for the period 397,159 -26,463 -1601%

Cash and cash equivalents, at the beginning of the period 7,495 27,016 -72%

Cash and cash equivalents, at the end of the period 404,654 553 NM


21


Key Risk Factors

Negative operating cash flow and uncertainty in projects

As mentioned earlier, Zadar Ventures is in the exploration and development stage of operations; as a result it has not generated

any revenues and has negative cash flows from operations. The Company may continue to generate negative cash flow in the

near future due to the uncertainty and risk involved developing its project. The Company is yet to announce any economic and

feasibility study which raises concerns regarding their position in completing existing project and bidding for new deals.

Uncertainty in commercialization of projects

Zadar is in the process of exploration activity and has no proven history of performance, earnings or success. There is no

guarantee that the Company will be able to achieve profitable results. There is no visibility regarding the commercialization of

the projects. The Company has still not undertaken feasibility studies for any of the projects. Exploration and development of

mineral resources involves a high degree of risk. Further, there is no assurance that its exploration and development activities

will result in discoveries that could be commercially feasible.

Regulatory risk

Zadar Ventures is subject to numerous government regulation and environmental laws. The Company has to abide by

regulations related to waste management, water discharge management, and disposal of hazardous materials and protection of

natural resource. Failure to comply with such regulations could lead to delays the project completion and increase compliance

costs affecting Zadar’s profitability.

Risks related to nature of business

Global economic conditions and the mining industry have high correlation, which could affect marketability and profitability of the

Company’s products. Sharp rise in lithium demand is due to robust demand from countries. However, there is high degree of

uncertainty involved in determining the timeline of increased demand. Currently, mining companies across the world are

operating at low capacity utilization due to global economic slowdown. However, recovery in global economic scenario could

help mining companies to enhance production.

Foreign currency fluctuations

The Company’s functional currency is Canadian dollar. However, Zadar owns investments denominated in British pounds and is

subject to exchange rate fluctuation of the Canadian dollar versus the British pound. Further, the Company’s lithium projects are

located in the United States, which also raises concerns relating to foreign currency fluctuations. Additionally, the prices of the

Company’s key products, lithium and uranium, are determined by US dollar. Hence, any exchange rate fluctuation between US

dollar and Canadian dollar could also lead to foreign exchange gains or losses.

Risks related to capital requirements

As mentioned earlier, the Company does not generate revenues from its operational activities. Since the Company has limited

capital resources, it relies upon the sale of equity and/or debt securities for capital requirements relating to exploration and

development activities, acquisitions, and administration expenses. In the near future, Zadar will continue dilute its equity or issue

debt.

Shareholding Pattern

As of May 2016, the Company had 65.45 million shares outstanding, excluding warrants and options. Zadar’s insiders control

approximately 20% of the total shares outstanding. Exhibit 27 displays the Company’s capitalization structure.

Exhibit 27: Share capitalization

Particulars (in millions)

Common Shares Outstanding 65.45

Warrants @ $0.05 18.4

Future property payments 4.0

Source: Zadar Ventures Investor Presentation

22


Profile of Directors and Management

Paul D. Gray (P. Geo.), President

Paul D. Gray, P.Geo is the President at Zadar Ventures with a Bachelor of Science (Honors) degree from Dalhousie University

and is a member with the Association of Professional Engineers and Geoscientists of British Columbia. Over the past 20 years

he has worked extensively as an exploration geologist in the Mineral Exploration Industry in Canada, the United States, Asia

and Central and South America, concentrating on uranium, base and precious metals exploration and development. Since 2007,

in particular, he has worked in the uranium exploration and development space focused on uranium production in the Colorado

Plateau district, and exploration within the Athabasca Basin and in South America.

Mark Tommasi, Chairman

Mr. Mark Tommasi is the Chairman of the Company, having over 20 years of experience in corporate development, finance,

board and committee activities and marketing. He is a former investment advisor, has served as a senior officer, director and

financier of numerous public and private companies both in the United States and Canada.

John Roozendaal, Director

Mr. John Roozendaal is a director at Zadar Ventures holding Bachelor of Science in Geology and has 22 years of experience in

the mining industry. He is founder and President of VMS Ventures Inc. (VMS.V) and was directly involved in the discovery of the

high-grade Reed Copper Mine now under construction in Manitoba. He is also a Director of North American Nickel Ventures

(NAN.V), which is exploring a large prospective nickel belt in southwest Greenland. He has immense experience with corporate

governance, finance and the development of public companies.

Geoff Watson, Chief Financial Officer

Mr. Geoff Watson is Chief Financial Officer of the company. For the past 30 years, he has been involved in various aspects of

the securities industry, including 22 years in the brokerage community, during which time he was involved with retail and

institutional client management, and the financing of numerous public companies. Most recently, he has been involved in the

corporate communication and development of North American public companies.

Yana Bobrovskaya, Director

Ms. Yana Bobrovskaya is a director of Zadar Ventures, having over 10 years of international business experience and has been

on the board of several public companies assisting in the raising of venture capital and day to day operations.

Jason Dussault, Advisory Board

Mr. Jason Dussault serves on the advisory board of the company. He was the founder and the first Chief Executive Officer of

Pure Energy. He led Pure Energy’s initial capital raise, reverse takeover and phase one exploration program. His experience in

the lithium sector is value addition to Zadar and his long-standing relationship with GeoXplorer (the operator of Pure Energy) will

help streamline the company’s upcoming exploration programs.

Jeremy Brett M.Sc. (P.Geo), Advisory Board

Mr. Jeremy Brett serves on the advisory board of the company. He is a senior consulting geophysicist with MPH Consulting and

has strong geological and management background with over 22 years of experience in mineral exploration. He has designed,

supervised, quality assured and interpreted ground and airborne geophysical surveys for uranium and many other commodities.

His specialty is in the imaging, synthesis and interpretation of geophysical data and its direct integration with ore deposit models

and structural/tectonic frameworks, for target identification and testing.

Thomas Feehan, MSc. (Hydrogeology), MBA, Advisory Board

Mr. Thomas Feehan is a senior level hydro geologist with over 20 years of professional experience who has worked extensively

in Nevada and Latin America throughout his career. His specialties involve the design and implementation of drilling and

sampling for lithium brine exploration and development projects.

23


Sources

Company Website

Company Press Release & Presentations

SEDAR Filings

Deutsche Bank Market Research

International Energy Agency

Ux Consulting

Global Market Outlook for Photovoltaics 2015-2019, EPIA

World Nuclear Association

www.indexmundi.com

Disclaimer

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended

to meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or

solicitation of an offer to buy or sell any security. To the fullest extent of the law, RB Milestone Group LLC (“RBMG”), its specialists, advisors, and

partners will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of the information provided, or for

any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information provided to any person or

entity (including but not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or

incompleteness of such information). Investors are expected to take full responsibility for any and all of their investment decisions based on their

own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. Investors are further cautioned

that small-cap and microcap stocks have additional risks that may result in trading at a discount to their peers. Liquidity risk, caused by small

trading floats and very low trading volume can lead to large spreads and high volatility in stock price. Small-cap and microcap stocks may also

have significant company-specific risks that contribute to lower valuations. Investors need to be aware of the higher probability of financial default

and higher degree of financial distress inherent in the small-cap and microcap segments of the market. The information, opinions, data,

quantitative and qualitative statements contained herein have been obtained from sources believed to be reliable but have not been

independently verified and are not guaranteed as to accuracy, nor does it purport to be a complete analysis of every material fact regarding

RBMG client companies, industries, or securities. The information or opinions are solely for informational purposes and are only valid as of the

date appearing on the report and are subject to change without notice. Statements that are not historical facts are "forward-looking statements"

that involve risks and uncertainties. "Forward looking statements" as defined under Section 27A of the Securities Act of 1933, Section 21B of the

Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995 include words such as "opportunities," "trends," "potential,"

"estimates," "may," "will," "could," "should," "anticipates," "expects" or comparable terminology or by discussions of strategy. These forward

looking statements are subject to a number of known and unknown risks and uncertainties outside of the company's or our control that could

cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to

those factors that are discussed in each profiled company's most recent reports or company filings or registration statements filed with the SEC or

other actual government regulatory agency. Investors should consider these factors in evaluating the forward looking statements contained herein

and not place undue reliance upon such statements. Investors are encouraged to read investment information available at the websites of Zadar

Ventures Limited (“Zadar”) at www.zadarventures.com and the SEC at http://www.sec.gov and/or FINRA at http://www.finra.org and/or other

actual government regulatory agency. RBMG is a consulting firm headquartered in New York, New York, USA and is hired by client companies

globally to carry out consulting services that include: corporate strategy formation, business development, market intelligence and research.

RBMG is not a FINRA member or registered broker/dealer. RBMG research reports and other proprietary documents or information belonging to

RBMG are not to be copied, transmitted, displayed, distributed (for compensation or otherwise), or altered in any way without RBMG's prior

written consent. Although RBMG was not compensated for the analytical research and evaluation services that are performed in connection with

the preparation of Zadar’s RBMG research reports, RBMG has received a cash fee equal to seventy thousand USD from Zadar in exchange for

other RBMG services. In this case, these services are designed to help Zadar communicate its corporate characteristics to applicable investment

and media communities. In addition, RBMG and/or its respective affiliates, contractors, principals or employees may buy, sell, hold or exercise

shares, options, rights, or warrants to purchase shares of Zadar at any time. In the past, RBMG’s principal at the time, formerly known as RB

Milestone Equities LLC, (“RBME”) purchased 1,562,787 restricted common shares plus 1,562,787 warrants to purchase 1,562,787 common

shares of Zadar from Zadar. The common shares and warrants came with four-month trade restrictions. Currently, RBMG’s new principal

(“Principal”), through a controlling interest in RBME, indirectly owns shares and warrants of Zadar. Principal will directly or indirectly buy, sell, hold

or exercise shares, options, rights, or warrants to purchase shares of Zadar at its lawful discretion and this can happen at any time.

http://www.indexmundi.com/

Documents

Initial Research Report (By RB Milestone Group) (July 20, 2016)