The TSX Venture Exchange has accepted for filing documentation relating to an option agreement dated June 16, 2023, and the amending agreement dated July 18, 2023, between the company and an arm's-length party. Pursuant to the terms of the agreements, the company will acquire a 100-per-cent interest in the SourceRock project, 307 mineral claims in the Thunder Bay-Nipigon area of Northwestern Ontario.

Under the terms of the agreements, the company will earn a 100-per-cent interest in the property upon providing a $50,000 cash payment to the optionor upon execution of the agreements and the company to commit a minimum of $100,000 to a staking program (representing 2,000 claim units), three million common shares deemed at four cents per common share and 1.5 million warrants exercisable for one common share of the company at a price of 10 cents for a period of three years from the date of issuance. The company will also, on or before the first-year anniversary, issue $500,000 worth of common shares of the company at a price per share equal to the volume-weighted trading price of the company's shares on the TSX-V for 20 trading days prior to the issue date of such shares. If the price per share is below four cents, the balance of the $500,000 in value will be paid in cash. Upon completion of the above, the company will have acquired 100 per cent in the property.

The company will make advance royalty payments in cash to the optionor, if the company is able to publish a resource estimate, including, but not limited to, an arm's-length National Instrument 43-101-compliant report of the property, of $20,000 per year, payable annually, on or before each of the first through fifth anniversaries of the issuance of the report, thereafter, $40,000 per year, payable annually, on or before each of the sixth through 15th anniversaries of the issuance of the report, and a sum of $500,000 on or before the 16th anniversary of the report. Any advance royalty payments made will be deducted from and credited toward any royalty payments due to the optionor pursuant to the royalty agreement, if any.

The optionor will retain a 3.0-per-cent net smelter return (NSR) royalty on the property, of which up to a 1.0-per-cent NSR may be repurchased by the company for $500,000 up until the fourth anniversary, and, if after the repurchase of the first 1-per-cent NSR by the fourth anniversary, then the company may repurchase the remaining 2-per-cent NSR for $5-million up until the 10th anniversary. If the company does not exercise its right to repurchase the NSR within the time frames, the company will retain at all times a first right of refusal to repurchase the NSR on the same terms and conditions agreed to between the optionor and such third party.

For further information, refer to the company's news releases dated June 26, 2023, July 12, 2023, and July 26, 2023.