An anonymous director reports

NEVADA EXPLORATION PROVIDES CORPORATE UPDATE

Nevada Exploration Inc. has provided an update.

Data review and target generation

The company has engaged certain experts to conduct a comprehensive compilation, review and verification of the company's data that have been collected in various formats over the past two decades. These data include hydrogeochemistry, drill-logs, assays and geological interpretations. On completion of the review, the company's team of experts will generate and prioritize a pipeline of targets for advancement during the 2023 field season.

In connection with target generation, the company is also conducting a review of its extensive land position in Nevada and, in due course, will determine whether to rationalize any of these positions. Decisions will be based on multiple factors, including target priority and the cost of retaining claims.

The company is committed to the use of hydrogeochemistry as an important tool, in combination with geological, alteration and remotely sensed data, to identify gold deposits hidden under cover within Nevada, and proximal to many of the most productive gold mines in the world.

Drill contract

Drilling on the company's flagship South Grass Valley project stalled in Q2 of 2022 due to a variety of factors suffered by the drill contractor, Drill NV. The issues included the inability of Drill NV to source critical parts for the drill in a timely manner, as well as the inability of Drill NV to retain staff. In addition, there has been a marked lack of reasonable communication from Drill NV, despite numerous unsuccessful attempts by the company and its agents to contact Drill NV.

The company is unsure whether Drill NV has the capacity to conduct further drilling and therefore, in subsequent disclosure, the company may be forced to reconcile its previously reported approximately $1.7-million asset and associated approximately $600,000 liability related to the Drill NV contract, with a resulting impact on the financial position of the company.

Previous management of the company sold a combined drill and water sampling rig (the Scorpion) to Drill NV in December, 2021. The Scorpion had been used historically to conduct in-house water sampling as part of the continuing collection of hydrogeochemical data critical to target generation. The company is currently considering whether to attempt a recovery of the Scorpion rig.

Kelly Creek project

The company, Austin Gold Corp., and Austin American Corp. (collectively Austin) have amended the terms of the option to joint venture agreement on the Kelly Creek project, Humboldt county, Nevada. The amended terms state that Austin must spend a cumulative total of $2.5-million (down from $4.75-million previously) by June 30, 2025, to earn an initial 51-per-cent interest in the Kelly Creek project. The amended terms also include a reduction in total expenditures to $5.0-million required for Austin to earn an additional 19-per-cent interest (for a total of 70 per cent) in the Kelly Creek project.

Austin must continue to pay the underlying property lease payments and Bureau of Land Management and county fees to keep the properties in good standing during the term of the agreement.

While the amended KC option agreement represents a significant reduction in commercial terms, and therefore in potential future value for the company, it also allows the company to retain a valued industry partner who will maintain a land package in the Kelly Creek basin at no present cost to the company.

Personnel changes

The company wishes to thank Wade Hodges for his fundamental contributions to the company over the past two decades as he transitions from management to a consulting role. Mr. Hodges has been instrumental in advancing the concept of groundwater geochemistry as a critical tool in identifying gold deposits hidden under deep cover.

About Nevada Exploration Inc.

Led by an international team of explorers, Nevada Exploration is applying modern technology to systematically explore for the undiscovered second half of Nevada's gold endowment waiting to be uncovered within Nevada's valley basins. Nevada Exploration is advancing a portfolio of gold exploration projects, primarily focused on three district-scale Carlin-type gold projects, including its flagship South Grass Valley project, located in close proximity to the Nevada gold mines of the Cortez complex.

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