Mr. Lyle Davis reports

CONDOR SIGNS ROYALTY AGREEMENTS ON LUCERO AND CHAVIN PROJECTS

Through its Peruvian subsidiaries, Condor Resources Inc. has concluded royalty agreements on two of its wholly owned projects in Peru.

Minas Lucero del Sur SAC has concluded a production royalty agreement with a private Peruvian company on the Lucero project, and Condor Exploration Peru SAC has concluded a production royalty agreement with the operator on the Chavin project.

Lucero is located in southern Peru, approximately 25 kilometres southeast of Buenaventura's Orcopampa mine. The property covers what is known as the Shila mining district, which includes three precious metal vein mines that were mined from 1990 until 2006. Under the royalty agreement, the operator will pay Minas Lucero a net smelter royalty of 3 per cent, subject to an annual minimum of $75,000 (U.S.), payable in advance. If the price of gold exceeds $2,000 (U.S.) per ounce, the royalty increases to 4.5 per cent, and, conversely, if the price of gold is below $1,000 (U.S.), the royalty will decrease to 1.5 per cent. The first year's minimum royalty was paid on signing. The operator is also obligated to complete a minimum of 1,000 metres of diamond drilling on the project within one year of obtaining the necessary permits.

Chavin is located in the Ancash department of Peru, approximately 45 kilometres northwest of Barrick's Pierina mine. The property is host to epithermal polymetallic veins, and the principal vein has been traced for over one kilometre. The property shows evidence of previous small-scale mining, including an adit of over 50 metres in length. Under the royalty agreement, the operator will pay Condor Peru a net smelter royalty of 3 per cent, subject to an annual minimum of $25,000 (U.S.), payable in advance. The first year's minimum royalty was paid on signing. The operator is also obligated to complete a minimum of 1,000 metres of diamond drilling on the project within one year of obtaining the necessary permits.

With the closing of these two agreements and receipt of the first year's minimum royalties of $100,000 (U.S.), the company has cancelled the private placement announced Sept. 24, 2015.

We seek Safe Harbor.