Mr. Stephane Leblanc reports

QNB METALS EXPANDS ITS GOODWIN NICKEL / COPPER PROPERTY IN NEW BRUNSWICK

QNB Metals Inc. has entered into two arm's-length option agreements dated June 12, 2023, with prospectors to acquire 65 additional claims to expand its recently acquired Goodwin nickel/copper property, increasing the total size of the property from 8,670 to 9,970 hectares.

Terms of the option agreement

QNB Metals has secured the options to earn a 100-per-cent interest in the claims through a combination of cash payments and common share issuances.

Pursuant to the first option agreement, the corporation may acquire 35 claims by:

• Making aggregate cash payments of $50,350 to the optionor as follows: (i) $10,350 on the effective date; (ii) $10,000 on or before the first anniversary of the effective date; (iii) $10,000 on or before the second anniversary of the effective date; and (iv) $20,000 on or before the third anniversary of the effective date;
• Issuing an aggregate of 500,000 common shares in the capital of the corporation to the optionor as follows: (i) 100,000 shares on the effective date; (ii) 100,000 shares on or before the first anniversary of the effective date; (iii) 100,000 shares on or before the second anniversary of the effective date; and (iv) 200,000 shares on or before the third anniversary of the effective date.

Pursuant to the second option agreement, the corporation may acquire 30 claims by issuing an aggregate of three million shares to the optionor before June 30, 2023.

Pursuant to the terms of each option agreement, in the event QNB Metals exercises its option in full and acquires the claims, QNB Metals shall grant a 2.0-per-cent net smelter return royalty, and the NSR royalty may be reduced to 1.0 per cent upon QNB Metals making a cash payment of $1-million for each option agreement.

The transactions contemplated by the option agreements, including the issuance of shares thereunder, are subject to the approval of the Canadian Securities Exchange. All shares issued under the option agreements will be subject to a hold period of four months and one day in accordance with Canadian securities laws.

About QNB Metals Inc.

QNB Metals is an exploration and development company focused on creating shareholder value through the strategic acquisition of nickel and copper projects while closing and maintaining key partnerships.

We seek Safe Harbor.