RELATED PARTY TRANSACTIONS

The following transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

Nine months ended August 31, 2016

The directors were compensated as per their consulting agreements with the Company. The Company expensed a total of $208,400 as management fees to two of its directors in their role as officers in accordance with their consulting contracts, which included $57,600 paid on full and final settlement to one director in his role as CEO on his resignation and termination effective July 15, 2016, and also expensed a total of $5,900 as automobile allowance. In addition, the Company expensed $42,200 as a consulting fee to an independent director for services provided.

The Company expensed $16,400 for services provided by the CFO of the Company and $154,900 for services provided by a Corporation in which the Chief Operating Officer (who was later elected interim CEO and President effective July 16, 2016) has an ownership interest, in accordance with the consulting contract.

Effective July 21, 2016, Bryan Ganz was elected as a director of the Company. Prior to his appointment, effective May 1, 2016, the Company executed a one-year consulting agreement with a Corporation in which the said director has an ownership interest. The said Corporation was paid cash of $25,000 in May, 2016 and $25,000 in June, 2016.

The Company reimbursed $31,400 to directors and officers for travel and entertainment expenses incurred for the Company.

Nine months ended August 31, 2015

The directors were compensated as per their consulting agreements with the Company. The Company expensed a total of $158,900 as management fees to these two directors, in their role as officers in accordance with their consulting contracts and expensed a total of $3,900 as automobile allowance.

The Company expensed $19,000 for services provided by the CFO of the Company and $166,500 for services provided by a Corporation in which the Chief Operating Officer has an ownership interest, in accordance with the consulting contract.

The Company reimbursed $65,700 to directors and officers for travel and entertainment expenses incurred for the Company.