Jayden Resources : MD&A - June 30, 2020

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the six-month period ended June 30, 2020

JAYDEN RESOURCES INC.

INTERIM MANAGEMENT DISCUSSION & ANALYSIS - QUARTERLY HIGHLIGHTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

This interim Management Discussion and Analysis - Quarterly Highlights ("Interim MD&A") has been prepared as of August 31, 2020. This interim MD&A updates disclosure previously provided in our Annual MD&A, up to the date of this Interim MD&A, and should be read in conjunction with our unaudited interim financial statements for the six months ended June 30, 2020 and 2019 (our "Interim Financial Statements"), our audited Financial Statements for the years ended December 31, 2019 (our "Audited Financial Statements") and our Annual MD&A for the year ended December 31, 2019 (our "Annual MD&A").

Our Interim Financial Statements have been prepared by management in accordance with International Financial Reporting Standards ("IFRS") and all amounts are expressed in Canadian dollars unless otherwise noted. Our accounting policies are described in note 2 of our Audited Financial Statements. Additional information relating to the Company is available on SEDAR at www.sedar.com.

Caution on Forward-Looking Information

This MD&A may include forward-looking statements and forward-looking information, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements and forward-looking information addresses future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

The forward-looking statements in this MD&A do not include a full assessment or reflection of the unprecedented impacts of the COVD-19 pandemic occurring in the first quarter of 2020 and the ongoing and developing indirect global and regional impacts. It is anticipated that the spread of COVID-19 and the global measures to contain it, will have an impact on the Company, however, it is challenging to quantify the potential magnitude of such impact at this time.

Overview

Up until the fourth quarter of 2018, Jayden was in the advanced stage of exploration on its 80% owned Silver Coin Property, the Company's only asset. The Silver Coin Property is located approximately 25 kilometres by road north of Stewart, British Columbia in the Skeena Mining Division of British Columbia and consists of 44 claims totalling 1,496 net Ha. All of the Silver Coin assets were held in the Company's wholly owned British Columbia incorporated subsidiary, Jayden Resources (Canada) Inc. ("Jayden Canada").

At the Special General Meeting held on October 17, 2018, Jayden shareholders overwhelmingly voted in favor to sell the Silver Coin Property to Ascot Resources Ltd. ("Ascot"). On October 31, 2018, Jayden announced that it had closed the sale of all of the issued and outstanding shares of Jayden Canada to Ascot pursuant to the share purchase agreement between Jayden and Ascot signed on August 12, 2018. Ascot acquired all the issued and outstanding shares of Jayden Canada in exchange for 15,179,497 Ascot common shares at a deemed value of $0.94 per Ascot Share.

Jayden management is currently contemplating certain options for the future of the Company and will keep shareholders apprised to any developments as they progress.

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the six-month period ended June 30, 2020

FINANCIAL POSITION AND LIQUIDTY

Review of Financial Results

		Three Months Ended
	Jun 30, 2020	Mar 31, 2020 Dec 31, 2019 Sept 30, 2019
Net Income (Net loss)	(74,892)	(25,991)	5,424,181	(39,023)
Basic and diluted loss per share	(0.00)	(0.00)	0.06	(0.00)
Total assets	16,318	31,978	57,407	109,124
Working capital	(153,267)	(78,375)	(52,384)	1,340

		Three Months Ended
	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018 Sept 30, 2018
Net loss	(98,422)	(4,469,131)	14,127,104	(83,530)
Basic and diluted loss per share	(0.00)	(0.05)	0.16	(0.09)
Total assets	177,958	316,246	20,457,164	489,415
Working capital	43,363	176,695	20,283,971	369,296

During the quarter ended June 30, 2020, the Company incurred a net loss of $74,892 compared to $98,422 for the quarter ended June 30, 2019. Significant items making up the change in net loss for the three months ended June 30, 2020, as compared to the three months ended June 30, 2019 were as follows:

• Corporate administration increased to $74,892 (2019: $64,153) as the Company has increased the cost of
  office overhead. Increase has mainly been due to increase in consulting fees to $33,000 (2019: $18,000).

Operating Activities

The Company's cash used in operating activities was $43,571 (2019: $155,589). The decrease in the six months

June 30, 2020 was due to the decrease in operating loss $101,048 (2019: $126,651) and maximizing payable credits with an increase in payables of $59,794 compared to a decrease in payables of $38,597 in 2019.

Investing Activities

The Company's cash generated in investing activities was $165 (2019: $252,075). There was a decrease in cash inflow in the six months June 30, 2020 compared to prior year, which was due to sales of marketable securities with $251,867 proceeds received in 2019.

Financing Activities

The Company's cash outflow in financing activities was $Nil (2019: $398,098). There was no outflow in the six months June 30, 2020 compared to prior year, which was due to the Company issuing a cash dividend $398,098.

Cash Resources and Going Concerns

At June 30, 2020, the Company had $7,787 in cash and a working capital of $(153,267). To continue to operate in the future, the Company will have to raise additional equity or form strategic partnerships; however, there cannot be any certainty that additional financing can be raised or strategic partnerships can be found.

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the six-month period ended June 30, 2020

OPERATIONS

In 2018, the company disposed its subsidiary, Jayden Resources (Canada) Inc. ("Jayden Canada"). The Company is principally engaged in the business of acquiring, exploring and developing interests in mining projects. To date, the Company has not generated revenues from its principal activities and is considered to be in the exploration stage.

ADDITIONAL DISCLOSURE

Related Party Transactions

There were no transactions with the Company's directors and officers for the period ending June 30, 2020 and June 30, 2019.

Outstanding Share Data

The authorized capital consists of 5,000,000,000 shares without par value. During the three months ended June 30, 2020, there were no share capital transactions. As of August 31, 2020, the following common shares and stock options were issued and outstanding:

	Number of Shares	Exercise Price $	Expiry Date
Common Shares	90,995,746	-	-
Fully diluted	90,995,746

Financial instruments

The Company is exposed to financial risks through its use of financial instruments in its ordinary course of operations. The financial risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company does not have any written risk management policies and guidelines. However, the board of directors meets regularly and co-operates closely with key management to identify and evaluate risks and to formulate strategies to manage financial risks. The Company has not used any derivatives or other instruments for hedging purposes and does not hold or issue derivative financial instruments for trading purposes. The most significant risks to which the Company is exposed to are described below.

(i) Currency risk

Some of the operating expenses and cash and cash equivalents held are denominated in foreign currencies and as such are subject to currency risk. The Company does not enter into derivative financial instruments to mitigate this risk but the Company does not believe its net exposure to foreign exchange risk is significant as most funds are held by the Company in Canadian dollars.

(ii) Credit risk

The Company's cash and cash equivalents are held in authorized Canadian and Hong Kong financial institutions. Management believes that the credit risk concentration with respect to its financial instruments is minimal. The Company adopts conservative investment strategies. Usually investments are in liquid securities quoted on recognized stock exchanges. No margin trading is allowed. Loans and financial guarantees have to be approved by the board of directors. The board monitors the Company's overall investment position and exposure on a day to day basis. The credit and investment policies have been followed by the Company since prior years and are considered to have been effective in limiting the Company's exposure to credit risk to a desirable level.

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the six-month period ended June 30, 2020

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has interest-bearing assets in relation to cash at banks and cash equivalents carried at floating interest rates with reference to the market and non-interest bearing director's loans. The Company's operating cash flows are substantially independent of changes in market interest rates. The Company has not used any financial instrument to hedge potential fluctuations in interest rates. The exposure to interest rates for the Company is considered minimal. The Company has no interest-bearing borrowings.

The policies to manage interest rate risk have been followed by the Company since prior years and are considered to be effective.

(iv) Liquidity risk

The Company's ability to continue as a going concern is dependent on management's ability to raise required funding through future equity issuances. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the board of directors are actively involved in the review, planning and approval of significant expenditures and commitments.

The liquidity policies have been followed by the Company since prior years and are considered to have been effective in managing liquidity risk.

(v) Fair value measurements

The following table presents financial assets and liabilities measured at fair value in the statement of financial position in accordance with the fair value hierarchy. The hierarchy groups financial assets into three levels based on the relative reliability of significant inputs used in measuring the fair value of these financial assets. The fair value hierarchy has the following three levels:

Level 1 - quoted prices (unadjusted) in active markets for identical assets;

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 - inputs for the asset that are not based on observable market data (unobservable inputs).

The level in the fair value hierarchy within which the financial asset is categorized in its entirety is based on the lowest level of input that is significant to the fair value measurement.

The marketable securities are grouped into level 1 as at June 30, 2020 and December 31, 2019.

There have been no significant transfers between levels 1 and 2 in the respective reporting periods. The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting periods.

Financial instruments that are not measured at fair value on the balance sheet are represented by cash and cash equivalents and accounts payable and accrued liabilities. The fair value of these financial instruments approximates their carrying value due to their short-term nature.

Capital risk management

The Company's capital management objectives are to ensure the Company's ability to continue as a going concern so as to benefit from its operations to provide an adequate return for its shareholders.

The Company manages its capital structure and makes adjustments to it based on the funds available to the Company in order to support the acquisition, exploration and development of mineral properties. The Company

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the six-month period ended June 30, 2020

defines capital that it manages as its shareholders' equity. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.

The Company has historically relied on the equity markets to fund the acquisition, exploration and development of mineral properties. In addition, the Company is dependent upon external financings to fund activities. In order to carry out planned exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional funds as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

The Company is not subject to externally imposed capital requirements.

Proposed transactions

The Company does not currently have any proposed transactions approved by the Board of Directors. All current transactions are fully disclosed in the financial statements for the period ended June 30, 2020.

Off balance sheet transactions

There are currently no off-balance sheet arrangements which could have a material effect on current or future results of operations, or the financial condition of the Company.

Internal control over financial reporting

The Chief Executive Officer ("CEO") and the Chief Financial Officer ("CFO") of the Company, together with the Company's management, are responsible for the information disclosed in this MD&A and in the Company's other external disclosure documents. For the period ended June 30, 2020, the CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company has been disclosed in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's DCP and have concluded that the design and operation of the Company's DCP were effective as of June 30, 2020 and that the Company has the appropriate DCP to ensure that information used internally by management and disclosed externally is, in all material respects, complete and reliable.

The CEO and the CFO are also responsible for the design of the internal controls over financial reporting ("ICFR") within the Company in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards ("IFRS"). During the year ended December 31, 2012, the Company engaged an international business advisory firm to assess the effectiveness of the Company's ICFR.

During the design and evaluation of the Company's ICFR, management identified certain non-material deficiencies, a number of which have been addressed or are in the process of being addressed in order to enhance the Company's processes and controls. The Company employs entity level and compensating controls to mitigate any deficiencies that may exist in its process controls. Management intends to continue to further enhance the Company's ICFR. Management concluded that the Company's ICFR were effective as of December 31, 2012, 2011 and 2010.