ALS.L Regulatory News (ALS)

Altus Strategies Plc / Index (EPIC): AIM (ALS) & TSX-V (ALTS) / Sector: Mining

29 August 2019

Altus Strategies Plc

("Altus" or the "Company")

Quarterly Report & Financial Statements

Altus Strategies Plc (AIM: ALS & TSX-V: ALTS), the Africa focused project and royalty generator, announces that it has today published its unaudited financial results for the three month and six month periods ending 30 June 2019 and the Management Discussion & Analysis for the three month period ending 30 June 2019. These documents have been posted on the Company's website www.altus-strategies.com and are also available on SEDAR at www.sedar.com.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For further information you are invited to visit the Company's website www.altus-strategies.com or contact:

About Altus Strategies Plc

Altus is a London (AIM: ALS) and Toronto (TSX-V: ALTS) listed project and royalty generator in the mining sector with a focus on Africa. Our team creates value by making mineral discoveries across multiple licences. We enter joint ventures with respected groups and our partners earn interest in these discoveries by advancing them toward production. Project milestone payments we receive are reinvested to extend our portfolio, accelerating our growth. The portfolio model reduces risk as our interests are diversified by commodity and by country. The royalties generated from our portfolio of projects are designed to yield sustainable long-term income. We engage constructively with all our stakeholders, working diligently to minimise our environmental impact and to promote positive economic and social outcomes in the communities where we operate.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programmes on schedule and the success of exploration programmes. Readers are cautioned not to place undue reliance on the forward-looking information, which speak only as of the date of this news release.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

**ENDS**

ALTUS STRATEGIES PLC

INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2019

Company Registration No. 10746796 (England and Wales)

NOTICE

These condensed consolidated interim financial statements have been prepared by management and approved by the Audit Committee and the Board of Directors of the Company. These condensed consolidated interim financial statements have not been reviewed by the Company's external auditors.

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2019

CONDENSED CONSOLDIATED INTERIM STATEMENT OF COMPREHENSIVE LOSS

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2019

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

The financial statements were approved by the board of directors and authorised for issue on 28 August 2019 and are signed on its behalf by:

Steven Poulton

Chief Executive Officer

29 August 2019

Company no. 10746796

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2019

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2019

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

1. Accounting policies

General information

Altus Strategies plc ("the Company") is a public company limited by shares incorporated in England and Wales. The registered office is 14 Station Road, The Orchard Centre, Didcot, Oxfordshire, OX11 7LL. The principal activity of the Company and its subsidiaries (together the "Group") is that of a mineral exploration project generator. There is no seasonality or cyclicality to the Group's operations.

The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange ("AIM") and the TSX Venture Exchange ("TSXV"). The Company's shares were admitted to trading on the AIM on 10 August 2017 and the TSXV on 6 June 2018.

Basis of preparation

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34") using accounting policies consistent with International Financial Reporting Standards (IFRS) and IFRS interpretations committee (IFRS IC) interpretations as adopted for use in the European Union and IFRS and their interpretations issued by the International Accounting Standards Board (IASB). These financial statements do not constitute statutory accounts as defined in the Companies Act 2006.

These condensed consolidated interim financial statements have been prepared on a going concern basis in accordance with the same accounting policies and methods of application as the most recent audited financial statements for the year ended 31 December 2018, and those envisaged for the year ended 31 December 2019, except for the new policies outlined below. The Group has not adopted any standards or interpretation in advance of the required implementation dates. It is not anticipated that the future adoption of any new or revised standards or interpretations issued by the IASB will have a material impact on the Group's earnings or shareholder's funds. The effect of the adoption of IFRS 16 is outlined below.

These condensed interim financial statements are for the three month and six month periods ended 30 June 2019. Comparative information has been provided for the unaudited three month and six month periods ended 30 June 2018, and where applicable the audited twelve month period from 1 January 2018 to 31 December 2018.

The financial statements are prepared in British Pounds Sterling (£), which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest whole pound.

The financial statements have been prepared on the historical cost basis, except for the valuation of investments at fair value through profit or loss.

These condensed consolidated interim financial statements have not been audited or reviewed by the Company's external auditors, PKF Littlejohn.

Basis of consolidation

These condensed consolidated interim financial statements comprise the accounts of the parent company, and its subsidiaries, after the elimination of all material intercompany balances and transactions.

Going concern

The Directors have at the time of approving these condensed consolidated financial statements, a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. In common with many junior resource investment and exploration companies, the Group and Company raise funds in discrete tranches from existing shareholders and /or new investors. The Directors and management are using funds for the evaluation of resource investment and exploration opportunities. The current funds are forecast to provide sufficient working capital into the fourth quarter of 2019 and additional funds will be raised as and when required. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Risks and uncertainties

The Directors continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Annual Report and Financial Statements for the Year Ended 31 December 2018, a copy of which is available on the Group's website, www.altus-strategies.com, and on SEDAR, www.sedar.com. The key financial risks are liquidity risk, foreign exchange risk, credit risk, commodity risk and interest rate risk.

Critical accounting estimates

The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Annual Report and Financial Statements for the Year Ended 31 December 2018. The nature and amounts of such estimates have not changed significantly during the interim periods.

The Group has one lease under the rules of the newly-adopted IFRS 16, which was signed during in Q1 of 2019.

Foreign exchange gains and losses on consolidation

On consolidation, the results of overseas operations measured using a different functional currency to British Pounds Sterling, are translated into British Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of these overseas operations are translated at the rate of the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Valuation of equity units issued in private placements

The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocated value to the more easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component.

The fair value of the ordinary shares issued in private placements are determined to be the more easily measurable component and were valued at their fair value, as determined by the closing quoted bid price on the day of issuance of the ordinary shares. The balance, if any, was allocated to the attached warrants. Any fair value attributed to the warrants is recorded in other reserves.

Adoption of IFRS 16

On 1 January 2019, the Group adopted all of the requirements of IFRS 16 - Leases. IFRS 16 Leases was issued in January 2016 and provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value.

At 1 January 2019 the Group had no leases with a lease term greater than 12 months. Consequently, the adoption of the standard resulted in no impact to the opening financial statements. Periodic payments made in respect of mineral exploration site licences are capitalised under the rules of IFRS 6.

One new lease was signed during the period. In the Statement of Financial Position the right-of-use asset is recorded in Non-current assets and the lease liability is split between Current liabilities for the portion due within 12 months (£17,264) and Non-current liabilities for the remainder (£75,130).

To determine the split between principal and interest in the lease the Company applied an estimate of the interest it would have to pay in order to finance payments under the new lease. This method was adopted as the Company was not able to ascertain the implied interest rate and does not have borrowings to use as a benchmark. The impact of the estimate is currently considered to be immaterial to the financial statements, but the Directors will review this approach as appropriate.

The figures brought into the Statement of Financial Position represented 2% of Non-current assets, 3% of Current liabilities and 100% of Non-current liabilities. The net effect on Net Assets is a reduction of £1,108. Expensed lease costs relating to low value assets was £8,421. Cash outflow in the period for lease payments was £14,546.

2. Segmental Analysis

The Group operates principally in the UK, Canada and Africa, with operations managed on a project by project basis within each geographical area. Activities in the UK and Canada are mainly administrative in nature whilst the activities in Africa relate to exploration and evaluation work.

4. Administrative expenses

5. Intangible Assets

6. Share Capital

On 4 March 2019 shares were issued to a consultant in respect of a finder's fee agreement relating to the Company's licences in Côte d'Ivoire.

7. Share warrants

8. Share Options

The Company does not presently operate a share option plan.

9. Share based payments

The share based payment charge in the quarter represented an accrual for consultant's fees.

10. Earnings per share

The calculation of the basic loss per share of 0.16 pence for the three months ended 30 June 2019 (2018: 0.32 pence) is based on the loss attributable to the equity holders of the Company of £294,790 for the three month period ended 30 June 2018 (2018: £550,094) divided by the weighted average number of shares in issue during the period of 177,899,659 (2018: 171,040,938).

The calculation of the basic loss per share of 0.47 pence for the six months ended 30 June 2019 (2018: 0.69 pence) is based on the loss attributable to the equity holders of the Company of £838,444 for the six month period ended 30 June 2019 (2018 £1,063,545) divided by the weighted average number of shares in issue during the period of 177,858,941 (2018: 152,920,186).

The basic and diluted loss per share are the same, as the effect of the exercise of warrants would be to decrease the loss per share.

Details of warrants that could potentially dilute earnings per share in future periods are disclosed in note 8 above.

11. Dividends

No dividend has been declared or paid by the Company during the three months or six months ended 30 June 2019.

12. Related party transactions

The contracted remuneration of key management personnel of the Group for the three month period ending 30 June 2019 of £79,594 (2018: £96,967) and for the six month period ended 30 June 2019 of £161,469 (2018: £151,233). In 2019 £46,750 has been paid in cash and £114,719 has been deferred.

For the three months and six months ended 30 June 2019, the Group incurred expenses of £3,426 (2018: £11,033) and £19,743 (2017: £14,350) respectively, for services provided by Seabord Services Corp. ("Seabord"), a company controlled by one of the directors. Seabord is a management services company that provides the accounting advisory services and administrative support to the Group with respect to its obligations in Canada. At 30 June 2019 £41,211 was due to Seabord (at 31 December 2018: £44,775).

For the three months and six months ended 30 June 2019, the Group recharged £nil (2018: £5,798) and £5,951 (2018: £40,291) respectively, of costs to Canyon Resources Ltd ("Canyon") with respect to the Birsok & Mandoum project joint venture between Canyon and Altus. Canyon is a company with a mutual director. At 30 June 2019 £43,861 was due from Canyon (at 31 December 2018: £37,550).

For both the three months and six months ended 30 June 2019, the Group recharged £360 (2018: £83), of costs to Aegis Asset Management Limited ("Aegis"). Aegis is a company with mutual directors. At 30 June 2019 £360 was due from Aegis (at 31 December 2018: £130).

13. Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

14. Approval of financial statements

These condensed consolidated interim financial statements were authorised for issue by the board of directors on 28 August 2019.

ALTUS STRATEGIES PLC

MANAGEMENT'S DISCUSSION AND ANALYSIS

THREE AND SIX MONTH PERIODS ENDED 30 JUNE 2019

Company Registration No. 10746796 (England and Wales)

As approved for issue on 29 August 2019

ALTUS STRATEGIES PLC

MANAGEMENT'S DICSUSSION AND ANALYSIS

FOR THE PERIOD ENDED 30 JUNE 2019

GENERAL

This management discussion and analysis ("MD&A") of financial position and results of operations is prepared as at 20 August 2019 and should be read in conjunction with the interim unaudited condensed financial statements for the three and six month periods ended 30 June 2019 and the annual audited consolidated financial statements of Altus Strategies plc (the "Company", or "Altus" and together with its subsidiaries "the Group") for the year ended 31 December 2018.

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS interpretations committee (IFRS IC) interpretations as adopted for use in the European Union and with IFRS and their interpretations issued by the IASB. The consolidated financial statements have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, (except as otherwise stated).

The financial statements have been prepared on a historical cost basis, as modified by the financial assets at fair value through profit or loss. The financial statements are prepared in British Pounds Sterling (£), which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest whole pound.

Additional information on the Company's activities can be found on the Company's website at www.altus-strategies.com and at https://beta.companieshouse.gov.uk/ and www.sedar.com.

DESCRIPTION OF BUSINESS

Altus is a public limited company incorporated and domiciled in England and Wales. The Company's shares have been listed on the AIM Market of the London Stock Exchange ("AIM") under the symbol "ALS" since 10 August 2017 and on the TSX Venture Exchange ("TSX-V") under the symbol "ALTS" since 6 June 2018.

The principal activity of the Group and Company is that of a project and royalty generator in the field of mineral exploration with a focus on Africa. Our business model is to make and monetise mineral discoveries. We proactively seek joint venture partners to finance the exploration and development of the projects we have generated, in return for a share in their ownership and the payment of future royalties to Altus. Our goal is to increase value per share by participating in the potentially substantial and long term returns on capital that can be made by making economic mineral discoveries. Risk diversification is at the heart of our philosophy, and we enact this by exploring for a variety of minerals across several jurisdictions. At the end of the quarter the Group had a diversified portfolio of twenty one projects, exploring for six different commodities across six countries. This diversification means that the Company's portfolio is constantly evolving: new licences are added, licences that are not considered to be a good prospect are relinquished and those for which exploration, remote sensing and sample analysis indicate that a potentially economic discovery can be made are actively marketed. Licences that are under JV partnerships will be drilled, and the successful of these will result in mines being built and royalties accruing to Altus on the metals produced.

FORWARD LOOKING INFORMATION

This MD&A may contain "forward-looking statements" that reflect the Company's current expectations and projections about its future results. When used in this MD&A, words such as "estimate", "intend", "expect", "anticipate" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause Altus's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project and other factors.

The operating plan is also dependent on being able to raise new equity funds as required to ensure there are sufficient capital resources to acquire and explore new properties. Other factors which affect Altus' operating plan are gaining access to exploration properties by concluding agreements with local communities, and commodity prices. If any of these factors are affected negatively, such as joint venture partners being unable to raise sufficient capital to complete option agreements or if the Company is unable to raise sufficient capital of its own, there will be a significant impact on the Company's operating plan and on any forward-looking statements contained herein.

Any references made in this report to historical information, including historical geological and technical information cannot be verified. A qualified person ("Qualified Person") under the AIM rules and National Instrument 43-101 Standards of Disclosure of Mineral Projects of the Canadian Securities Administrators ("NI 43-101") has not verified the sampling, analytical, and test data underlying any such historical information. The Company has obtained historical information from sources that it believes to be reliable, and assumes it is accurate and complete in all material aspects. While the Company has carefully reviewed the available historical information, it cannot guarantee its accuracy and completeness. The forward looking information and statements included in this announcement are expressly qualified by this cautionary statement and are based on the beliefs, estimates and opinions of the Company on the date of this announcement. Except as required by securities laws the Company does not undertake any obligation to publicly update or revise any forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this MD&A or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified above and elsewhere in this MD&A, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by securities law.

HIGHLIGHTS

Highlights for the three months ended 30 June 2019 and to the date of this report are as follows.

Corporate highlights:

·; Royalty and JV Terms Sheet signed with Corben Resources Ltd ("Corben") on Zolowo and Laboum gold projects in Liberia and Cameroon

·; JV with Resolute Mining Ltd ("Resolute") on Pitiangoma Est project in southern Mali extended by two years to 2021

Operational highlights:

·; New copper and gold exploration licence granted in northern Ethiopia

·; Drill targets defined at Djelimangara and Sebessounkoto Sud projects, western Mali

·; Drill targets defined at Tabakorole gold project, southern Mali

·; New prospect defined at Diba gold project, western Mali

·; Exploration update provided on Daro copper-gold project, northern Ethiopia

·; Exploration update provided on Agdz copper-silver project, central Morocco

Financial highlights:

·; Balance of cash and marketable securities of £0.8m / C$1.4m (cash balance of £0.2m / C$0.3m and listed equity holdings of £0.6m / C$1.1m as at 30 June 2019)

·; Cash outflow for operating activities of £0.2m / C$0.3m for 3 months ending 30 June 2019

Post period:

·; Option agreement signed on Toura nickel-cobalt project in Côte d'Ivoire

·; Term sheet signed with Glomin Services Ltd for a joint venture on two projects in western Mali

·; Term sheet signed with TSX-V listed Desert Gold Ventures Inc. for sale of and royalty on two projects in western Mali

·; Gold discoveries on Zager VMS licence in northern Ethiopia

OPERATIONS REPORT

Altus is a project and royalty generator which is focused on Africa. The Company's business model is to make mineral discoveries, prior to undertaking joint ventures with third parties who can earn up to a 100% equity interest in our projects by financing the next stages of exploration, making milestone payments to the Company and entering a royalty agreement with the Company on future production.

Due to its large size, many parts of Africa remain under-explored or not explored at all. Altus believes that significant economic deposits can still to be discovered at or close to surface. Importantly, this means that in Africa the speed of discovery can potentially be faster and the cost of discovery can potentially be lower for shareholders, when compared to more mature mining jurisdictions.

At the time of writing, Altus has a diversified portfolio of twenty one precious metal (gold and silver) and base metal (copper, zinc, bauxite and iron ore) exploration projects across six African countries (Morocco, Ethiopia, Cameroon, Liberia, Côte d'Ivoire and Mali). The Company has two active joint ventures, with both its partners being listed on the Australian Stock Exchange ("ASX"). The Company's current partners are Resolute Mining Ltd (ASX: RSG) on the Company's Pitiangoma Est gold project in southern Mali, and Canyon Resources Ltd ("Canyon") (ASX: CAY) on the Company's Birsok bauxite project in central Cameroon. In February 2019 the Company entered agreements with Canyon to terminate the Birsok JV in return for equity in Canyon and to vend the Birsok project to Canyon for further equity in Canyon and a $1.50/t royalty (subject to the grant of a mining licence).

During the period Altus announced the signing of a Terms Sheet with a private Australian company Corben Resources Ltd in respect of the Company's gold projects in Liberia and Cameroon and agreed with Resolute to extend the Pitiangoma Est JV by two years.

During the quarter ending 30 June 2019, the Company's team of geologists has begun exploration of the recently granted Zager licence in northern Ethiopia, and continued to examine new project acquisition and licence application opportunities to be fed into the project generation pipeline.

After the period end Altus announced:

a) the signing of a Term Sheet with TSX-V listed Desert Gold Ventures Inc. for the sale of and a royalty on the Company's contiguous Sebessounkoto Sud and Djelimangara gold projects located in western Mali.

b) the signing of a Term Sheet with Glomin Services Ltd for a joint venture on the Company's Lakanfla and Tabakorole gold projects located in western and southern Mali respectively.

The following is a review of the Company's activities by jurisdiction and project during the period.

Mali Operations

Altus holds six projects in Mali. The projects are held through the Company's 100% owned subsidiary, LGN Holdings (BVI) Inc., which became part of the Group in January 2018 through a plan of arrangement with Legend Gold Corp. ("Legend"), which was previously listed on the TSX-V. Four of the projects (Korali Sud/Diba, Lakanfla, Djelimangara and Sebessounkoto Sud) are located in the Kayes region of western Mali, approximately 450km northwest of the capital city of Bamako; two projects (Tabakorole and Pitiangoma Est) are located in southern Mali.

Korali Sud (Diba) Gold Project (83.1 km2), Western Mali

Korali Sud ("Diba") is located 13km southwest of the Sadiola gold mine, which is operated by AngloGold Ashanti (JSE: ANG, NYSE: AU, ASX: AGG), IAMGOLD (TSX: IMG, NYSE: IAG) and the Malian government. Both Sadiola and Korali Sud are situated on the Senegal-Malian shear corridor within the world renowned 'Kenieba window'.

Korali Sud hosts the Diba historical resource (see Table 1 below), as prepared for Legend by AMEC Americas Limited ("Technical Report and Mineral Resource Estimate Diba Badiazila Gold Property Mali, West Africa", 30 June 2013) and filed on SEDAR by Legend on 20 September 2013. A Qualified Person has not done sufficient work to classify this historical estimate as current mineral resources and Altus is not, therefore, treating this historical estimate as a current mineral resource. However, it remains relevant to the Project and Altus believes it is also reliable. To verify this historical estimate so that the resource can be considered current, Altus would be required to contract a qualified and independent consultant to review historical drilling data and prepare a resource estimate in accordance with NI 43-101. The resource comprises stacked lenses which dip approximately 35-40 degrees ESE within the oxide zone.

Notes: Applying a 0.5g/t cut-off grade and a US$1,200/oz gold price as reported in 2013 NI 43-101 technical report.

Historical drill results from the Diba project (unverified by the Group) include 12m at 20.66 g/t Au and 32m at 2.06 g/t Au. Diba has a potentially low mining strip ratio with relatively limited overburden and a high proportion of the potential ore is in the oxide zone. Deeper drilling at Diba targeting the sulphide zone has intersected 1.32 g/t Au over 45m (from 93m). The sulphide zone remains open at depth.

Oxide gold mineralisation at Diba is mainly found in saprolite that is within 50m of the surface, across a compact 1,200m² area drilled to date. The deposit is controlled by a number of structures, with gold occurring as fine grained disseminations and localised high grade calcite-quartz veinlets.

Altus has defined two further drill targets within the licence area: Diba Northwest, a 2.6km2 soil anomaly which is immediately along strike and northwest of the current historic Diba resource, and Diba East, approximately 2km2 in size and located immediately to the east of the historic Diba resource. The Company has prepared a phase one exploration programme for Diba, which incorporates an initial 5,000m of drilling and is actively looking for a partner to progress this work.

During the quarter, the Company completed a systematic termite mound sampling programme which resulted in the discovery of a new prospect at Diba WNW, located approximately 1.5km from the Diba historical resource. This drill-ready prospect is approximately 650m by 400m in size and remains open to the north and west. Altus is not currently seeking a joint venture on the Diba project, while it undertakes its own exploration programme.

Lakanfla Gold Project (24 km2), Western Mali

Lakanfla is located 5km east of Korali Sud and 6.5km from (and is considered to be geologically analogous to) the karst-type FE3 and FE4 open pits that form part of the Sadiola gold mine. It is also considered to be geologically analogous to the Yatela karst-type gold deposit, which was mined between 2001 and 2015, located 35km to the northwest.

The project hosts a significant number of active and historical artisanal gold workings which are coincident with major geochemical and gravity anomalies surrounding a granodiorite intrusion. Historical drilling (unverified by the Group) has returned encouraging intersections including 9.78 g/t Au over 12m and 5.20 g/t Au over 16m. Historical drilling targeted breccia mineralisation of the granodiorite, and intersected low grade gold mineralisation in limestones, voids and lose sands at depth, features which are indicative of a karst. A low gravity geophysical anomaly and corresponding surface slumps features, are also considered to be significant indicators. The karst target at Lakanfla remain to be systematically drill tested.

On 7 February 2019 the Company announced the signing of a Term Sheet for a Joint Venture with ASX-listed Indiana Resources Ltd (ASX: IDA) on the Lakanfla project. On 17 June 2019 the Company announced that this Terms Sheet had expired.

After the period end Altus announced the signing of a Term Sheet for a JV with Glomin Services Ltd on the Lakanfla (and Tabakorole) projects. Subject to concluding a definitive agreement and the progress of the JV, Glomin will earn up to an 80% initial interest in the projects and Altus will receive up to US$1,450,000 in milestone cash payments and a 2.5% Net Smelter Return ("NSR") royalty on the projects. In accordance with the Term Sheet, Glomin has paid Altus a US$50,000 exclusivity payment.

Djelimangara & Sebessounkoto Sud Gold Projects (55 km2 and 28 km2), Western Mali

The contiguous Djelimangara and Sebessounkoto Sud licences are located 3km and 15km southeast of Korali Sud respectively, and comprise four priority prospects to date: Sourounkoto, Kamana, Woyanda and Manankoto. These prospects are characterised by gold-in-soil anomalies of up to 2.5km in length, coincident with hard rock gold workings in fine metasediments. Historical drilling (unverified by the Group) has reportedly returned encouraging intersections including 1.34 g/t Au over 30m in Djelimangara, while historical trenching (unverified by the Group) undertaken by Barrick (formerly Randgold Resources) has reportedly returned up to 0.68 g/t Au over 61m in Sebessounkoto Sud. During 2018 the Group defined the Soa gold prospect in the Sebessounkoto Sud licence, with a 2.7km long gold-in-soil anomaly. Spoil samples returned grades of 5.18 g/t Au, 3.98 g/t Au and 2.4 g/t Au.

Results from termite mound samples has also defined a number of geochemical anomalies in the Djelimangara project, including one priority area approximately 0.5km by 0.5km in size which remains open to the north and south.

During the quarter the Company has undertaken an extensive review of all historical data on the projects to define further targets.

After the period end Altus announced the signing of a Term Sheet with TSX-V listed Desert Gold Ventures Inc. for the sale of and an NSR royalty on the projects. Subject to concluding a definitive agreement Altus will receive an initial payment of US$50,000 and 3 million Desert Gold shares with a value of approximately C$675,000 (as at 27 August 2019). Subject to progress on the projects further milestone payments in cash and shares will be due to Altus, and the Company will retain up to a 2.5% NSR royalty on the projects.

Tabakorole Gold Project (100 km2), Southern Mali

Tabakorole is located 280km south of the capital city of Bamako and sits on the Massagui Belt, which hosts the Morila gold mine operated by Barrick. Exploration to date has identified a 2.7km long shear zone which is up to 200m wide and hosts a historical mineral resource, see table 2 below. The resource was prepared in accordance with NI 43-101 by H. Andrew Daniels, Consulting Geologist, P.Geo in a report entitled "Technical Report on the Mineral Resource Update, June 2007 FT Project Mali, West Africa", dated July 27, 2007 and filed on SEDAR on July 27, 2007 by North Atlantic Resources Ltd. A Qualified Person has not done sufficient work to classify this historical estimate as current mineral resources and Altus is not, therefore, treating this historical estimate as a current mineral resource. However, it remains relevant to the Project and Altus believes it is also reliable. To verify this historical estimate so that the resource can be considered current, Altus would be required to contract a qualified and independent consultant to review historical drilling data and prepare a resource estimate in accordance with NI 43-101.

Historical drilling (unverified by the Group) has returned encouraging intersections including 16m at 9.31 g/t Au, 14m at 9.84 g/t Au and 60m at 2.91 g/t Au.

On 7 February 2019 the Company announced a Term Sheet for a Joint Venture with ASX-listed Indiana Resources Ltd (ASX: IDA) on the Tabakorole project. On 17 June 2019 the Company announced that this Terms Sheet had expired.

During the quarter the Company announced that following an extensive review of the historical data on the Tabakorole project a number of priority drill targets had been defined, which when tested have the potential to expand the FT prospect as well as define new prospects.

After the period end Altus announced the signing of a Term Sheet for a JV with Glomin Services Ltd on the Tabakorole (and Lakanfla) projects. Details of the Term Sheet are included under the Lakanfla project on pages 6-7.

Pitiangoma Est Gold Project (106 km2), Southern Mali

Pitiangoma Est is located 300km southeast of the capital city of Bamako. The licence is subject to a joint venture with ASX-listed Resolute Mining Limited and is located on the Syama shear zone, 15km from the Tabakoroni deposit and 40km from the Syama gold mine (both owned by Resolute). Resolute can earn up to a 70% interest in the project by funding US$3million in exploration and completing a feasibility study. Thereafter Altus may elect to co-fund its 30% interest on a pro rata basis, or exchange its interest for a 2% Net Smelter Return royalty.

Prior to the JV with Resolute, exploration at Pitiangoma Est included regolith sampling (6,930 soil and 1,230 auger samples), lithological mapping, airborne VTEM geophysics, BLEG stream sediment sampling and RC drilling (2,160m) as well as diamond drilling (6,450m). These work programmes were completed by Endeavour Mining Corporation who held the project prior to it being acquired by Legend. Since the commencement of the JV, Resolute has reportedly completed a gradient array IP survey, 329 air core drill holes for a total of 14,193m and 7 RC drill holes for a total of 708m.

During the reporting period the Company announced that it had signed a two year extension to the joint venture with Resolute until May 2021. At the time of writing drilling is reportedly underway by Resolute, following up anomalies generated by air core drilling. Full data from the drilling programme has not yet been received. Early indicative results are not believed to have defined a potentially discovery. The Company is awaiting further results from these programmes.

Cameroon Operations

Altus holds three projects in Cameroon including the Laboum gold project, held through the Company's 99% owned subsidiary, Auramin Ltd, the Birsok bauxite project and the Bikoula & Ndjele iron ore project that are held though the Company's 97.3% owned subsidiary, Aluvance Ltd.

Laboum Gold Project (189 km2), Northern Cameroon

Laboum is located 600km northeast of the capital city of Yaoundé. The licence hosts a major Pan-African age, regional shear zone which is up to 5km wide and which comprises highly prospective Birimian metavolcanic and metasedimentary rocks. Results of a ground magnetic survey and regional soil sampling programme completed by the Company have defined numerous anomalies. Many of these are coincident with dilational and fold structures which are considered to be excellent targets for potentially economic gold deposits. Rock chip sampling by the Company has returned grades including 24.50 g/t Au, 16.15 g/t Au from quartz veins and 6.86 g/t Au from sheared and silicified metasediments.

During the quarter, the Company identified further artisanal workings in a new area of the licence coincident with a remote sensing anomaly and quartz vein targets. Samples from this area are undergoing analysis at the time of writing.

During the quarter Altus signed a Terms Sheet for a Sale & Purchase, Joint Venture and Royalty agreement with Corben Resources Ltd, an unlisted Australian company. Under the proposed terms, Altus will vend its Zolowo gold project in Liberia into Corben and Corben will have the right to earn up to a 100% interest in the Laboum gold project through a joint venture. Altus will retain up to a 2.5% NSR royalty. Details of the agreement are available on the Company's website (www.altus-strategies.com/news, entry dated 24 April 2019).

Birsok (198 km2) Bauxite Project, Central Cameroon

The Birsok licence is located 370km northeast of the capital city of Yaoundé. From December 2013 the licence has been subject to a joint venture with ASX-listed Canyon. The project is contiguous with Canyon's Minim-Martap potentially tier-one bauxite project.

On 11 October 2018 the Company announced it had signed a letter of intent with Canyon to terminate the JV and vend in the Birsok project to Canyon. On 11 February 2019 the Company announced that it had signed a JV Termination Agreement and a Sale and Purchase Agreement with Canyon, in return for 25 million Canyon shares and to vend the JV licences into Canyon for an additional 5 million Canyon shares and a US$1.50/t royalty on the licences (subject to Canyon receiving a mining licence on the Minim Martap project). Details of the agreement with Canyon are available on the Group's website (www.altus-strategies.com/news, entries dated 11 October 2019 and 11 February 2019). Completion of the transaction is subject to the satisfaction of certain conditions precedent, including the approval of Canyon's shareholders to issue the Canyon shares. The Company is working closely with Canyon to expedite the completion of the transaction.

During the first half of the year the Mandoum licence expired and a new application is being considered.

Bikoula (200 km2) & Ndjele (200 km2) Iron Ore Project, Southern Cameroon

The Bikoula and Ndjele licences are located 150km south of the capital city of Yaoundé. The licences are on the western geological strike of the Nkout iron ore deposit and 160km west of the Mbalam iron ore deposit. The licences are adjacent to the road linking to the deep water port at Kribi and are 30km north of the proposed trans-Cameroon east-west iron ore rail line.

The Group has defined a maiden JORC-compliant Inferred Mineral Resource of 46 Mt at 44% Fe, including a supergene haematite cap of 5 Mt at 52.7% Fe. The resource statement is not in accordance with NI 43-101. The independent resource report was prepared by Coffey Mining South Africa (Pty) Ltd and entitled 'Mineral Resource Estimation and Classification of the Bikoula Iron Ore Project in Cameroon' and dated April 2014. The non-43-101 resource was calculated on less than 25% of the strike of a 17km-long Libi Hills airborne geophysical target. To date 48 drill holes have been completed at Bikoula. During 2018, Altus pitted a large airborne magnetic anomaly at the Nkout North prospect. This work discovered further supergene haematite within reddish clayey soils. The Group considers this prospect and the undrilled remainder of the Libi Hills prospect to represent excellent targets for the definition of further high grade iron ore resources. No material exploration was undertaken on the project during the quarter.

Altus is seeking a partner to advance the project to undertake further drilling and the preparation of an independent NI 43-101 compliant mineral resource estimate.

Morocco Operations

Altus holds four projects in Morocco through its 100% owned subsidiary, Aterian Resources Ltd, targeting copper, lead, zinc, silver and gold.

Agdz Copper-Silver Project (60 km2), Central Morocco

Agdz comprises four contiguous permits in the Anti-Atlas Mountains, 350km south of the capital city Rabat and 14km from the Bouskour copper mine which is operated by Managem, the Moroccan state mining group.

Altus has carried out geological mapping, surface outcrop sampling, reconnaissance trenching and ground magnetic surveys at Agdz. This work has defined strongly mineralised and altered zones and a clear structural context. Three main prospects have been identified to date at Makarn, Amzwaro and Minière from which rock-chip samples have returned assay results up to 26.5% Cu and 448 g/t Ag and an initial rock-chip channel sample returned 1.25% Cu and 96 g/t Ag over 9.3m, with grades up to 2.26% Cu and 223 g/t Ag. Rock-chip and spoil samples from the Minière prospect, which hosts multiple underground workings that exploit a series of sub-parallel alteration zones, have returned 13.0% Cu, 6.0% Cu and 5.0% Cu. Mapped alteration in the Makarn prospect is considered analogous to that of the Bouskour mine, with over a 0.5km strike length mapped to date.

During the quarter the Company announced results from a rock chip sampling programme on the licence. These included 2.22% Cu, 52 g/t Ag and 2.96 g/t Au. The Company also announced the discovery of further copper mineralisation within an approximately 1km long and 0.5km wide northeast trending elongate rhyolite dome, located between the Amzwaro and Makarn prospects. The Company is planning a 50 line kilometre Induced Polarisation programme across the northern portion of the Agdz licence.

Altus is actively seeking a joint venture partner for the Agdz project.

Takzim Copper-Zinc Project (72 km2), Central Morocco

Takzim comprises five permits located 35km northeast of the city of Marrakech and 7km east of the historical Bir-n-Hass copper mine. No material exploration was undertaken on the project during the quarter. Altus is actively seeking a joint venture partner for the Takzim project.

Zaer Copper Project (96 km2), Central Morocco

Zaer comprises six permits located 80km south of the capital city of Rabat in the Hercynian Massif, which contains three large granitic plutons that have been intruded into a sequence of sediments. The region hosts active and historical mines for copper, tin, tungsten, lead and zinc. Zaer is strategically located covering a 20km strike length of metamorphic aureole along a granite-metasediment contact. No material exploration was undertaken on the project during the quarter. Altus is actively seeking a joint venture partner for the Zaer project.

Ammas Zinc-Lead Project (32 km2), Central Morocco

Ammas is comprised of two permits, located 30km south of the city of Marrakech. The project is 3km southeast and along strike of Managem's Hajjar Zn-Pb-Cu VMS mine. The Hajjar mine exploits a number of buried and folded massive sulphide lenses. No material exploration was undertaken on the project during the quarter. Altus is actively seeking a joint venture partner for the Ammas project.

Ethiopia Operations

Altus holds three projects in Ethiopia at Tigray-Afar, Daro, and, since 3 June 2019, Zager. All three projects are held by the Company's 100% owned subsidiary, Altau Resources Ltd.

Daro Copper-Gold Project (412 km2), Northern Ethiopia

Daro is located 570km north of Ethiopia's capital city, Addis Ababa and 95km west of the Company's Tigray-Afar Cu-Ag project. The project targets potential Volcanogenic Massive Sulphide ("VMS") copper and gold deposits. It is situated in the Neo-Proterozoic Nakfa Terrane, which hosts a number of significant VMS base metal and gold deposits and mines.

Prospecting and regional mapping has identified key geological markers for a VMS deposit type setting. These include the presence of bimodal volcanics, extensive chert horizons and associated metasediments, which conform to an ophiolite complex of ancient oceanic crust and seafloor sediments.

To date, four priority prospects: Keren, Teklil, Wedihazo and Simret have been defined by the Company on the licence. The Keren prospect strikes for 2km with grab and outcrop samples returning up to 37 g/t Au and 10.35 g/t Au. At the 2.5km long Teklil prospect, located within an ophiolite complex, rock chip and grab samples have returned 24% Cu, 6.51 g/t Au and 203 g/t Ag. Rock chip and grab sample results at the 0.5km long Wedihazo prospect, have returned up to 22.3% Cu and 0.24 g/t Au. At the Simret prospect, grab samples have returned up to 944 g/t Ag, 3.55 g/t Au and 2.72% Pb and discovered Au-Ag-Cu-Pb-Zn bearing quartz veins and gossanous float.

During the quarter a reconnaissance ground gravity survey was completed along an initial 300m section of the Teklil prospect. The survey identified a potentially significant gravity anomaly adjacent to key VMS markers, including a gossanous outcrop sample which returned 6.95% Cu.

Also during the quarter, the Company announced the discovery of a potentially significant new gold prospect at Wedi Keshi, which is hosted within a highly altered quartz-feldspar porphyry intrusion, and was discovered by the Company's Sentinel remote sensing programme. The prospect has been mapped for approximately 2km in length and 300m in width. It is also coincident with a series of discontinuous hard gold workings and likely represents the primary source for the gold in the alluvial artisanal workings in the area. Gold grades from rock chip sampling of quartz veins and altered wall rock material include 14.1 g/t Au, 8.5 g/t Au and 7.3 g/t Au.

Altus is actively seeking a joint venture partner for the Daro project, to conduct trenching and complete a geophysical survey with the aim of defining targets for a maiden drill programme.

Zager Copper-Gold Project (285 km2), Northern Ethiopia

Zager is located in the Semien Mi'irabawi Zone of Tigray in northern Ethiopia, approximately 175km northwest of the Tigray state capital of Mekele and 610km north of Addis Ababa. It is 80km west of the Company's Daro project with which it shares an almost identical geological terrane, and 15km from the Harvest polymetallic VMS project. The licence hosts 27km of ophiolite belt within the prospective Arabian Nubian Shield.

Initial prospecting of the licence has been undertaken and rock chip sampling has returned grades of 1.95 g/t, 1.31 g/t and 1.11 g/t Au. In addition, a number of hard rock artisanal gold workings have been identified within the licence. Altus is not currently seeking a joint venture on the Zager project, while it undertakes its own exploration programmes.

Tigray-Afar Copper-Silver Project (242 km2), Northern Ethiopia

Tigray-Afar is located 580km north of Ethiopia's capital city, Addis Ababa and 95km east of the Company's Daro Cu-Au project. An evaluation of previous exploration data, has identified a potential sediment hosted copper target within a 5km long VTEM conductor. The zone hosts gossans at surface, which are interpreted to overlay a potential copper sulphide source which has yet to be drill tested. No further work was undertaken during the quarter. The next steps for the project will be to conduct a 2,000m 5-hole programme to test the presence of sedimentary hosted copper mineralisation. No material exploration was undertaken on the project during the quarter. Altus is actively seeking a joint venture partner for the Tigray-Afar project.

Liberia Operations

Altus holds one licence, namely Zolowo, in Liberia through its 100% owned subsidiary Auramin Ltd, targeting orogenic lode gold deposits within the Man Shield, which forms part of the West African Craton.

Zolowo Gold Project (466 km2), Western Liberia

Zolowo is located 190km northeast of the capital city of Monrovia. The licence targets a significant 33km-long Archaean-age greenstone belt on the West African Craton. No material exploration was undertaken on the project during the quarter.

During the quarter the Company announced that a Terms Sheet had been signed with Corben Resources which incorporated the vend-in of the Zolowo project (see Operations in Cameroon, Laboum project). Under the terms of the vend-in, Altus will receive 10% of the issued equity capital of Corben upon its proposed IPO on the Australian Stock Exchange followed by milestone payments of A$0.5 million and A$1 million upon the definition of a one million ounce gold resource and a one million ounce gold reserve respectively. Altus will retain a 2.5% NSR royalty, of which Corben may purchase 1% for US$2 million.

Côte d'Ivoire Operations

Altus holds the Prikro exploration licence in Côte d'Ivoire as well as two submitted licence applications. One application targets gold and the other targets nickel-cobalt. The licence and applications are held through the Company's 100% owned subsidiary, Aeos Gold Ltd.

Prikro Gold Project (369.5 km2), Eastern Côte d'Ivoire

Prikro is located 240km southeast of the country's largest city, Abidjan. The project targets a prospective folded and sheared Birimian-aged greenstone sequence intruded by felsic plutons, and hosts historical Au, Cu, Zn and Mo mineral occurrences. No material exploration was undertaken on the project during the quarter. Altus is actively seeking a joint venture partner for the Prikro project.

After the end of the period, on 25 July 2019 the Company announced that it had signed an option agreement on its Toura nickel-cobalt licence application, with Firering Holdings Limited ("Firering") upon exercise of which Firering will earn a 95% interest in the Toura project, and Altus will receive a cash payment of €15,000, a 5% free carried interest until such time that Firering have invested US$1 million and a production royalty which his linked to the nickel price. Further details are available on the Company's website (www.altus-strategies.com/news, entry dated 25 July 2019).

Qualified Person

The technical disclosure in this MD&A has been read and approved by Steven Poulton, Chief Executive of Altus. He has not verified the historical data disclosed in this regulatory announcement but has no reason to question its accuracy. A graduate of the University of Southampton in Geology (Hons), Steven Poulton also holds a Master's degree from the Camborne School of Mines (Exeter University) in Mining Geology. He is a Fellow of the Institute of Materials, Minerals and Mining and has over 20 years of experience in mineral exploration and is a Qualified Person under the AIM rules and National Instrument 43-101 Standards of Disclosure of Mineral Projects of the Canadian Securities Administrators.

OUTLOOK

The Company's strategy for the next twelve months will be to:

·; Close the agreement with Canyon Resources Ltd

·; Facilitate the completion of due diligence by Corben, in respect of the Zolowo and Laboum gold projects in Liberia and Cameroon respectively

·; Facilitate the completion of due diligence by Glomin Services, in respect of the Lakanfla and Tabakorole gold projects in Mali

·; Facilitate the completion of due diligence by Desert Gold, in respect of the Djelimangara & Sebessounkoto Sud gold projects in Mali

·; Develop new joint venture and or royalty agreements with third parties on the Company's remaining projects

·; Undertake exploration to generate new projects within its current countries of operation; and

·; Evaluate early to advance stage project and royalty acquisition opportunities, which may exist privately or within listed companies

RESULTS OF OPERATIONS

Three Months Ended 30 June 2019

Income

Income from recharging costs to JV partners of £22,000 was higher than in the comparative quarter of 2018 (£7,000), although there was no change to the nature of the revenue, reflecting mainly mining event sales and recharges, and recharges of costs relating to the JV arrangement with Canyon in Cameroon.

Expenses

The Company has undertaken work to improve the methodology it uses to apportion costs between Exploration and Administrative costs. The following costs for the quarter were categorised as Exploration Costs; under the methodology used in 2018 and up to 2019 Q1, they were treated as Administrative costs.

Exploration costs under the new method of apportioning were £261,000 and under the old method were £153,000 (2018 Q2: £197,000); the change from 2018 reflected the focus of the Company in the first few months of the year on reviewing and assimilating the extensive historical data pertaining to the Company's exploration licences in Mali. The exploration team has remained the same size, and the level of activity is similar, although costs on specific projects have varied as detailed in note 3 and in the Operations Report on pages 4 to 13.

The largest area of operational spend in Africa was in Cameroon at £50,000 for the quarter (2018 Q2: £59,000). Approximately £33,000 was spent in each of Mali and Ethiopia, which included exploration work at the Company's recently granted Zager licence, and £17,000 was spent in Morocco. The total of £83,000 for these three countries was in line with the £87,000 expensed in the same quarter in 2018.

Administrative costs under the new method were £135,000 and under the old method were £243,000 (2018: £277,000). To a large extent this reflects the reduced level of corporate activity compared to the same quarter in 2018, which included costs relating to the Company's listing on the TSX-V market in Canada which occurred on 6 June 2019 and the C$4.2m private placement as announced by the Company on 18 April 2018.

The fair value gain on investments of £117,000 (2018 Q2: £46,000 loss) was in respect of the Company's holding in ASX-listed Canyon Resources Limited, which is denominated in Australian dollars.

Six Months Ended 30 June 2019

For the six months ended 30 June 2019 the Company had a net loss of £831,000 compared to a loss of £1,062,000 in the first half of 2018. Combined Exploration and Administrative costs of £847,000 were at a similar level to the comparative period (2018 H1: £852,000). As described in the quarterly summary above, the methodology of apportioning costs between the two categories has been updated.

IPO, listing and acquisition related costs reduced from £108,000 to £54,000. These costs in 2019 also include activity related to joint venture negotiations. The fair value loss on investment reduced from £166,000 in 2018 H1 to £74,000 in 2019 H1, with this figure mainly reflecting movements in foreign exchange rates.

Liquidity and Capital Resources

The net assets of the Group reduced from £5,266,000 at 31 December 2018 to £4,446,000 at 30 June 2019, which, allowing for fluctuations in current assets and liabilities, reflected mainly a lower cash balance, a reduction in investments and an increase in accruals.

There was a small increase of £9,000 in the value of the group's intangible assets as exploration licence costs were capitalised. Pursuant to the Company's policy, the carrying balances of all intangible assets were reviewed by the management team for impairment and presented to the board. No impairments were made in the quarter.

The cash balance decreased from £725,000 at 31 December 2018 to £198,000, reflecting two quarters of operating expenses with minimal revenue. The Company realised income by the sale of 2.5 million shares in the Company's holding of Canyon realising proceeds of £287,000.

The directors are confident, based on the experience of raising finance in 2017 and 2018, the liquidity profile of Canyon and the potential for joint venture and other deal flow that the Company will continue to have sufficient capital, and have prepared these financial statements on a going concern basis accordingly.

An increase in the value of payables from £487,000 as at 31 December 2018 to £700,000 was due partly to the continued deferral of board fees by non-executive directors and the partial deferral of salaries and pensions by executive directors as outlined in detail in the 2018 Annual Report and Accounts (see www.altus-strategies.com/investors/financials/). The value of deferred remuneration during the quarter was £60,000.

The adoption of IFRS 16 as of 1 January 2019 has had the effect of increasing non-current assets by £90,000 and current liabilities by £98,000 as at 30 June 2019. This net liability will reduce over the life of the lease of the Company's UK office, which expires in 2023. The impact on the ratio of current liabilities to current assets has been to increase it from 1.86 to 2.15.

SUMMARY OF QUARTERLY RESULTS