The TSX Venture Exchange has accepted for filing documentation pertaining to a property option agreement dated July 30, 2025, between the company and five arm's-length vendors, whereby the company will acquire a 100-per-cent interest in 15 mining claims located in the province of Newfoundland and Labrador, known as the Stockley Kennedy property.

Under the terms of the agreement, to exercise the option, the company will pay the optionors a total of $130,000 in cash and issue $200,000 in common shares over a two-year period. The payments are scheduled as follows.

Cash payments:

• $50,000 on the date of the agreement;
• $30,000 on or before the first anniversary of the agreement date;
• $50,000 on or before the second anniversary of the agreement date.

Common share issuances:

• $50,000 in shares as soon as practicable after receiving the exchange approval;
• $50,000 in shares on or before the first anniversary of the agreement date;
• $100,000 in shares on or before the second anniversary of the agreement date.

The $200,000 in shares will be issued at a price per common share of the company equal to the greater of: (i) the 20-day volume-weighted average closing price on the exchange; or (ii) five cents, resulting in the issuance of up to four million shares pursuant to the agreement. If the aggregate market value of the shares issued is less than the stated dollar amount, the company will pay the shortfall in cash.

The company will make cash payments to the royalty holder upon achieving specific project milestones. The first payment of $1-million is due when a technical report, compliant with National Instrument 43-101, confirms the existence of one million ounces of gold resources on the property. A second payment of $1.5-million is required after the completion of a feasibility study.

Upon the full exercise of the option, a 2.0-per-cent net smelter return (NSR) royalty on the property will be granted to the royalty holders. The company holds the right to buy back a 1-per-cent royalty for a one-time cash payment of $1-million before commercial production.

For further details, please refer to the company's news releases dated Aug. 5, 2025, and Aug. 19, 2025.