Mr. Brian Morrison reports

K9 GOLD CLOSES TRANSACTION AND ADDS 3300 HA TO THE JB LITHIUM PROJECT, N. QUEBEC

Further to K9 Gold Corp.'s press released dated May 24, 2023, it has acquired 1415322 B.C. Ltd. (141 B.C.) pursuant to a share exchange agreement dated May 24, 2023. Pursuant to the transaction, the company added 64 claims (3,304 hectares) to its JB lithium project in the James Bay region of northern Quebec. This will bring the total project holdings to 5,418 Ha in 105 claims.

The Lac Joubert-Tilly (LJ-T) property is located approximately 60 kilometres due east of the previously announced Riviere Salomon (RS) property on the JB Li project. The LJ-T property is located approximately 400 km east-southeast of Radisson, Que., and is immediately adjacent to Winsome Resources recently announced Tilly project (Winsome company release April 19, 2023). Other projects in the area include Allkem's James Bay lithium project, which recently received federal approval for development, Patriot Battery Metals Corvette project located 50 km to the west and Winsome Resources Lithium Adina project located approximately 40 km to the west. The LJ-T property is underlain by a package of Archaean rocks that is similar to the geological setting of the Corvette and Adina projects, and includes outcrops of Tilly pegmatites, a known host of lithium in the James Bay region.

About JB Lithium project

The JB Lithium project is located in the La Grande subprovince of the Archaean Superior province in Quebec, and comprises two units, the Riviere Salomon property (see company release Nov. 15, 2022, for property details) and the newly acquired Lac Joubert-Tilly property.

Lac Joubert-Tilly (LJ-T) property

The LJ-T property is underlain mainly by the Archean Joubert suite and the Salomon River formation. Where the Joubert suite occurs on the property, it consists of a package of foliated, banded, or gneissic biotite-tonalite and granodiorite. The Salomon River formation in the area consists mainly of paragneisses that have undergone moderate partial melting, with 10 per cent or more mobilisate.

Within the property boundaries, the Salomon River formation has been intruded by at least five zones of Tilly pegmatites which comprise pegmatitic granite with biotite-muscovite-tourmaline-magnetite-garnet assemblages. These pegmatites are a significant lithium target for other explorers in this area. They are in close proximity to the Joubert suite tonalites which are believed to be the source of lithium in regional discoveries. A 2015 Quebec government geological mapping program located at least six outcrops of pegmatitic granite, consistent with the Tilly pegmatites. In addition, one outcrop of an ultramafic intrusive returned an assay of 77 parts per million Li, along with 0.10 per cent Ni and 0.30 per cent Cr.

Riviere Salomon (RS) property

The Trieste formation, which hosts lithium mineralization on the adjacent Adina property, transects the RS property. Within the property boundaries, this Meso-Archaean age formation is mainly an ensemble of mylonites and banded amphibolites derived from basalt, which have been intruded by various intermediate rocks. A significant band of tonalite, part of the Meso-Archaean age Kamusaawach Intrusion, cuts through the centre of the property. Also cutting through the claims is a band of the Neo-Archaean Richardie suite, an intrusive biotite-magnetite-hornblende granodiorite. The northern portion of the property is underlain by the Neo-Archaean Sauvolles Pluton, which is mainly of granitic composition. There is also a prominent Paleoproterozoic-age mafic dike (Senneterre dike system) cutting through the north of the property with a NE-SW (northeast-southwest) orientation.

During a regional mapping program in 2013 by government geologists, one outcrop was collected sample from the property, reported in the Quebec government's on-line geological database, SIGEOM, an returned a value of 65 ppm Li.

K9 has recently completed a helicopter-borne magnetometer and VLF survey on this property. Results will be reported on completion of data interpretation.

Lac Joubert-Tilly acquisition terms

In connection with the transaction, the company issued three million common shares to the shareholders of 141 B.C. in exchange for the issued and outstanding common shares of 141 B.C. The company shares were issued at a deemed value of 3.5 cents per company share. The company shares were issued to the 141 B.C. shareholders pursuant to applicable securities laws and the policies of the TSX Venture Exchange.

141 B.C. is now a wholly owned subsidiary of the company. 141 B.C. is a party to an option agreement whereby, pursuant to the terms of the option agreement, 141 B.C. may acquire a 100-per-cent interest in the property upon the completion of certain expenditures, cash payments or issuances of company shares.

Pursuant to the option agreement, 141 B.C. can earn a 100-per-cent undivided interest in the property upon the occurrence of the following milestones:

• Payment of $25,000 within 180 days of May 9, 2023, to the optionor;
• Payment of $80,000, or the issuance of $80,000 worth of company shares to the optionor within one year of the effective date;
• Payment of $150,000, or the issuance of $150,000 worth of company shares to the optionor within two years of the effective date;
• Payment of $215,000, or the issuance of $215,000 worth of company shares to the optionor within two years of the effective date.

If the company elects to issue company shares in satisfaction of the certain payments under the option agreement, an aggregate of 12,714,285 company shares may be issuable at a deemed price of 3.5 cents per company share.

Upon exercise of the Milestones, the optionor will be granted a 2-per-cent net smelter royalty, of which 1.5 per cent of the NSR may be purchased by 141 B.C. for a cash payment of $2-million. Further, 141 B.C. has agreed to pay to the optionor a one-time payment of $1-million in the event there is a National Instrument 43-101 -- Standards of Disclosure for Mineral Projects compliant mineral resource on the property valued over $100-million.

The transaction is an arm's-length transaction (as such term is used in the TSX Venture Exchange policies) and no finders' fees are payable in connection with the transaction.

About K9 Gold Corp.

K9 Gold has assembled a highly experienced and dynamic team to explore its Stony Lake gold project in central Newfoundland. The project has been acquired from District Copper Corp. by an option agreement, whereby K9 can earn up to a 100-per-cent interest in the project (see the company's news release dated July 30, 2020). The company also owns a 100-per-cent interest in the Desert Eagle vanadium-uranium project, located in the historic Henry Mountains mining district in southeast Utah. The area has seen extensive historic vanadium and uranium mining and is close to Anfield Energy Inc.'s Shootaring Canyon mill.

Chris M. Healey, PGeo, chief geologist and a director of K9 Gold, is the qualified person under National Instrument 43-101 guidelines who is responsible for the technical content of this release and approves its release.

We seek Safe Harbor.