Mr. David Tasker reports

GOLDEN HORSE ACQUIRES HIGHLY PROSPECTIVE LITHIUM AND GOLD TENEMENTS

Golden Horse Minerals Ltd. has entered into binding agreements dated Jan. 7, 2024, to wholly acquire Enterprise Metals' option for the Bullfinch North lithium and gold project. A second agreement, dated Jan. 6, 2024, covers the direct purchase of an exploration licence wholly owned by Enterprise Metals.

The Bullfinch North tenements cover 278 square kilometres (km) over three exploration licences and four prospecting licences. The project is centred approximately 50 km north of the Southern Cross township and located within the Yilgarn mineral field, Western Australia. The new tenements interfinger with the company's existing tenements.

The project is located in the northern part of the Southern Cross greenstone belt which has recorded production in excess of 12 million ounces of gold and is recognized as a major emerging lithium province. Golden Horse has purchased Enterprise Metals binding option agreement (with Nickgraph Pty. Ltd.) over the tenements and plans to exercise the option to secure 100-per-cent ownership of the project in 2024.

Golden Horse Minerals chairman and interim chief executive officer Graeme Sloan said:

"The acquisition of Enterprise Metals' Bullfinch North project substantially adds to our consolidation of the northern portion of the highly prospective Southern Cross greenstone belt. These tenements will add to what is already an exciting lithium and gold regional strategy. Since the start of 2023, we have more than quadrupled our tenement holding in the region, taking the total area under our control to over 1,180 square km, a great achievement by the team.

"Recent exploration by Enterprise Metals has identified several highly encouraging pegmatite outcrops as well as numerous gold targets. Our next steps postexecution of the option agreement will be field validation and sampling to finalize drilling programs for the highest priority targets."

Bullfinch North project overview

The Bullfinch North area occupies the northern continuation of the Southern Cross greenstone belt and has historically been explored for gold and nickel. The recent discovery of a number of important lithium deposits in the southern part of the belt, (the Earl Grey/Mt. Holland deposit with a reported resource of 186 milion tonnes (Mt) at 1.5 per cent Li2O (lithium oxide)), highlights the growing prominence of pegmatite hosted LCT (lithium-caesium-tantalum) deposits in the region. The Southern Cross greenstone belt hosts more than 150 known gold deposits, which have collectively produced more than 12 million ounces of gold.

Lithium potential

The project is located on Archaean greenstone lithologies prospective for lithium and gold deposits as well as massive sulphide nickel-copper deposits. Recent exploration by Enterprise Metals has focused on lithium mineralization and through mapping and soil sampling programs has produced significant results that confirm the presence of a number of LCT pegmatites with coincident lithium, caesium and rubidium soil anomalism.

The pegmatites on the new tenure are typically weathered and occur as subcropping zones that are not obvious without field investigation. In 1939, GSWA geologist Malleson mapped pegmatites in the area, and recent mapping by Enterprise Metals geologists has extended the pegmatite occurrences southwards for over seven km. Extensive soil geochemistry (364 samples) over the area resulted in 16 per cent of the samples reporting greater than 60 parts per million (ppm) lithium (Li) peaking at 202 ppm Li, which is considered to be highly anomalous.

The lithium enriched pegmatite trends identified by Enterprise Metals continue onto tenements already held by Golden Horse. The consolidation of the tenements in the area will lead to more effective overall exploration and evaluation of potential lithium mineralization.

Golden Horse will further review the recent data in detail and follow up with further field studies and soil sampling aimed at rapidly define drill targets for lithium mineralization.

Gold potential

The gold prospectivity of the tenements, and region in general, was further demonstrated by a recent targeting study completed for Enterprise Metals by independent consultants. The interpretation based on historical drilling, mapping and recently acquired detailed gravity data and historical detailed magnetic data identified 10 high-priority gold targets requiring field validation and potentially subsequent drill testing. The study was broadly based on known Yilgarn gold deposit analogues, with an emphasis on models of major gold deposits in the Southern Cross greenstone belt.

One existing gold prospect of particular interest is located at Marie's Find (or Bingin). Small-scale open-pit and shallow underground mining produced over 10,000 ounces of gold at a mined grade of 10 to 20 grams per tonne (g/t) gold (Au). No mining or effective drill testing has occurred at the project since last century. The prospect clearly justifies further work.

At Trough Well in the north of the acquired tenure, the presence of massive sulphide nickel-copper mineralization was defined in the 1970s and has been tested sporadically since then. While not a major focus at present, Golden Horse will review the potential of the belt to host nickel mineralization, with a view to assessing the potential. The significant consolidation in ownership of the belt north of Bullfinch North by Golden Horse removes the previous fragmented tenement holding of the past and provides an opportunity to complete regional and systematic exploration programs for all types of deposits for the first time.

Transaction

The material terms of the acquisition are as follows:

• The Bullfinch North Tenement option and Sale agreement includes tenements E77/2325, E77/2568, P77/4350, P77/4566, P77/4586 and P77/4587. Golden Horse Minerals has acquired the same terms and conditions with Nickgraph as outlined in the Enterprise Metals-Nickgraph Bullfinch North tenement option agreement.
• Golden Horse will assume Enterprise's obligations relating to the Bullfinch North tenement option and sale agreement that provide the company has the right to exercise the option to purchase Bullfinch North project by May 24, 2024, with:
  • A payment to Nickgraph of $400,000 (Australian) cash;
  • The issue of shares in Golden Horse to Nickgraph to the value of $400,000 (Australian);
  • All production subject to a 1.5-per-cent gross royalty capped at $1-million (Australian).
• Golden Horse has also agreed a cash payment of $200,000 (Australian) to purchase Enterprise Metals wholly owned of E77/2652 which is not part of the Bullfinch North tenement option and sale agreement.
• Golden Horse will also assume the 1-per-cent net smelter royalty over E77/2652 already in place with a third party.

Qualified person

Jonathan Lea, a member of the Australian Institute of Mining and Metallurgy (AusIMM) and an independent qualified person as defined by National Instrument 43-101, is responsible for the preparation of the technical content regarding the Bullfinch North project contained in this document. Mr. Lea is a non-executive director of Golden Horse Minerals and has reviewed and approved the technical disclosure in this news release.

We seek Safe Harbor.