Mr. Christopher Huggins reports

COLLECTIVE METALS ANNOUNCES OPTION AGREEMENT TO ACQUIRE 70% OF PRINCETON PROJECT IN SOUTHEASTERN BRITISH COLUMBIA

Collective Metals Inc. has signed an option agreement dated May 9, 2023, to acquire 70 per cent of the Princeton project, a copper-gold project located in south-central British Columbia covering 70,570 acres, from Tulmeen Resources Corp. The project is approximately 10 kilometres west of Copper Mountain Corp.'s currently producing Copper Mountain mine, which hosts a proven and probable mineral reserve of 702 million tonnes (Mt) of 0.24 per cent copper (Cu). The project hosts potential for identification of one (or more) copper-gold alkalic porphyry occurrences similar in age and deposit type to the Copper Mountain mine.

The project is easily accessible by road and is located immediately west of Highway 3 south of Princeton, B.C., in a well-established mining district with excellent infrastructure, a local work force and support services. British Columbia is known as a low-risk jurisdiction with high standards for environmental stewardship and community engagement.

Christopher Huggins, chief executive officer of Collective, commented: "The acquisition is a major milestone for Collective and gives the company a drill-ready, highly prospective copper project in a world-renowned region. The company hopes to move quickly to drill high-priority targets that have been previously identified from the extensive analysis done on the project. We believe the project holds many similarities to the nearby Copper Mountain mine and has the potential to be developed into a world-class copper-gold project."

Project overview

The predominant feature of interest on the project is a large, prominent, high-intensity magnetic anomaly comparable with the magnetic anomaly spatially associated with the Copper Mountain mine and associated intrusive complex. The previously identified Trojan and Nev Minfile occurrences, together with the geophysically identified Condor corridor, are located on the northwest margin of the high-intensity magnetic anomaly. The Whipsaw property and the Goldrop Minfile occurrences, immediately adjacent to the project and held by competitors, are located on the western and northern margins of the high-intensity magnetic anomaly, respectively. Therefore, the high-intensity magnetic anomaly will provide the dominant focus for exploration and evaluation of the project.

The most advanced areas on the project are as follows:

• The Trojan-Condor corridor, which is the highest priority drill target on the project at this time, located on the northwest fringe of the high-intensity magnetic anomaly along Whipsaw Creek.
• Magnetite occurrences in the Fifteen Mile, and relatively extensive iron carbonate-silica-pyrite alteration identified in the Fourteen Mile Creek drainages, spatially associated with the northwest margin of the high-intensity magnetic anomaly.
• The Lamont Ridge and Wilmac target areas, which are also spatially associated with smaller high-intensity magnetic anomalies slightly farther to the northwest of the large, high-intensity magnetic anomaly.

Based on previous work, the project has documented potential for precious metals (gold (Au) and silver (Ag)), platinum group elements (predominantly platinum (Pt) and palladium (Pd)), base metals (copper (Cu), molybdenum (Mo), lead (Pb) and zinc (Zn)), a variety of industrial minerals, including, but not limited to bentonite, clay, gypsum, pyrophyllite and zeolites, and gemstones (agate). With respect to precious and base metals, there is documented potential for a variety of deposit types defined by British Columbia deposit models, including, but not limited to, Cu plus or minus Mo plus or minus Au porphyry (L04), subvolcanic Cu-Ag-Au (As (arsenic)-Sb (antimony)) (L01), Cu skarn (K01), Noranda/Kuroko massive sulphide Cu-Pb-Zn (G06) and polymetallic veins Ag-Pb-Zn plus or minus Au (I05).

Project geology

The project area is underlain by late Triassic to early Jurassic Nicola group volcanic and subordinate sedimentary rocks, overlain on the eastern portion of the property by the Eocene-age Princeton group, a cover sequence that has preserved the underlying Nicola group from erosion. The Nicola group was subsequently intruded by late Triassic- to early Jurassic-age diorite intrusions, some of which have been correlated to the Copper Mountain suite (associated with the Copper Mountain mine) or the Tulameen mafic-ultramafic complex to the west. Diorite intrusions represent the high-priority targets for subsequent exploration and evaluation of the project area, as they are interpreted as potential hosts for porphyry-style alteration and, more importantly, mineralization in the region. Interpreted porphyry-style alteration was identified by previous operators from surface rock samples and subsurface core samples. The limited drill program carried out on the project in 2015 also identified weak copper mineralization, as chalcopyrite, also interpreted to indicate the presence of an alkalic copper-gold porphyry.

The Eocene Princeton group is associated with a distinctly different style of mineralization, which includes documented potential for industrial minerals and gemstones (agate). A secondary priority for 2023 is to evaluate volcanogenic massive sulphide (VMS) potential, specifically with respect to the Noranda/Kuroko massive sulphide Cu-Pb-Zn deposit model. A potential VMS exhalate horizon was tentatively identified in work completed by the British Columbia Geological Survey branch.

Terms of the option agreement

Collective has secured an option on the project from Tulmeen to earn a 70-per-cent interest in the project through a combination of cash payments, common share issuances and incurrence of exploration expenditures, as follows:

• Paying Tulmeen an aggregate of $500,000 in cash as follows:
  • $50,000 on or before the date that is 10 calendar days after May 9, 2023;
  • $25,000 on or before: (a) the date that Collective consummates an equity investor financing providing not less than $200,000 in gross cash proceeds to Collective; or (b) Dec. 1, 2023, whichever is earlier;
  • $100,000 on or before the date that is one calendar year after the effective date;
  • $162,500 on or before the date that is two calendar years after the effective date; and
  • $162,500 on or before the date that is three calendar years after the effective date.
• Issuing to Tulmeen an aggregate of seven million common shares as follows:
  • One million shares on or before the date that is 10 calendar days after the effective date;
  • 1.5 million shares on or before the date that is one calendar year after the effective date;
  • Two million shares on or before the date that is two calendar years after the effective date; and
  • 2.5 million shares on or before the date that is three calendar years after the effective date.
• Incurring a minimum of $1.4-million in exploration expenditures on the project as follows:
  • $300,000 on or before the date that is 16 months after the effective date, $85,000 of which must be incurred before June 30, 2023;
  • $300,000 on or before the date that is two calendar years after the effective date;
  • $300,000 on or before the date that is three calendar years after the effective date; and
  • $500,000 on or before the date that is four calendar years after the effective date.

Marketing campaign

The company announces an agreement with Hillside Consulting & Media Inc. (address: 474 Main St., Penticton, B.C., Canada, phone: 250-485-3615, e-mail: hillsideconsultingmedia@gmail.com) for marketing services of up to three months, commencing May 9, 2023.

Hillside will utilize its on-line programs to generate a greater following, increase investor awareness and attract potential new investors through various on-line platforms and methods of engagement for total consideration of $200,000. The activities will occur by e-mail, on-line publications, social media and other PPC (pay-per-click) advertising techniques. As of the date hereof, to the company's knowledge, Hillside (including its directors and officers) does not own any securities of the company and has an arm's-length relationship with the company. The company will not issue any securities to Hillside as compensation for its marketing services.

Options issuance

The company also announces that it has granted an aggregate of 2,475,000 incentive stock options under the company's stock option plan, each with an exercise price of 15 cents, to officers, directors and consultants of the company. Each option, upon payment of the exercise price, entitles the holder thereof to receive one share of the company. The options, and any shares issued upon the exercise of, will be subject to a hold period of four months in accordance with the policies of the Canadian Securities Exchange.

Correction notice of press release dated March 24, 2023 -- announcing closing of non-brokered private placement of units

The second paragraph of the prior release is corrected to read as follows. For clarity, the company's right to accelerate the expiry date of the warrants described therein will apply from closing of the offering (defined in the prior release), instead of starting four months and one day from closing (as previously indicated in the prior release):

• "Each unit consists of one common share in the capital of the company and one whole common share purchase warrant. Each warrant entitles the holder to purchase one additional share at a price of 20 cents on or before March 23, 2025. The warrants are subject to an acceleration clause such that, if the price at which the shares trade on the Canadian Securities Exchange is greater than 30 cents for 10 consecutive trading days, the company may accelerate the warrant expiry date by giving notice to the holder of the warrants. In such case, the warrants will expire at 5 p.m. (Toronto time) on the date which is the earlier of: (i) the 30th day after the date on which such notice is given by the company; and (ii) the expiry day."

Qualified person

This news release has been reviewed and approved by Rick Walker, PGeo, who is acting as the company's qualified person for the Princeton property project, in accordance with regulations under National Instrument 43-101.

About Collective Metals Inc.

Collective Metals is a resource exploration company specialized in precious metals exploration in North America. The company's flagship property is the Princeton project, located in south-central British Columbia, Canada, approximately 10 kilometres west of the currently producing Copper Mountain mine. The Princeton project consists of 29 mineral tenures totalling approximately 28,560 hectares (70,570 acres) in a well-documented and prolific copper-gold porphyry belt and is easily accessible by road, located immediately west of Highway 3.

The company's Landings Lake lithium project is located in Northwestern Ontario, where numerous lithium deposits have been delineated to host significant reserves of Li2O (lithium oxide). The Landings Lake lithium project is located 53 km east of Ear Falls, Ont., and covers 3,146 hectares.

Collective Metals is also advancing the Uptown gold project four km outside of Yellowknife, adjacent to several high-grade past-producing mines. The Uptown gold property is a high-grade Archean lode gold prospect adjoining the Giant mine in Yellowknife, NWT. The property consists of four claims covering over 2,000 hectares and borders the west side of the Giant mine leases.

We seek Safe Harbor.