Mr. Stephane Leblanc reports

QNB METALS ADDS TO SALT PROPERTY PORTFOLIO AND CLOSES KINGSVILLE SALT DEPOSIT ACQUISITION

QNB Metals Inc. has entered into an arm's-length option agreement dated Nov. 15, 2023, to acquire a 100-per-cent interest in the Havre Aubert East property located in the Magdalen Islands in Quebec, Canada.

The property consists of eight non-contiguous claims situated in the southern region of Havre Aubert Island. While some of these claims are located to the west, near L'Anse-a-la-Cabane, the remaining ones are situated to the south, on the Dune du Harve.

Between 1940 and 1972, geological surveys and drilling programs were conducted in the Iles-de-la-Madeleine archipelago, leading to the discovery of coarse crystalline rock salt (greater than 98 per cent NaCl (sodium chloride)) over 462.1 metres in the first hole (hole A-1) from 148.1 metres through 609.6 metres. This hole was collared on the Dune du Harve, along the south shore of Harve Aubert Island on the property.

The Havre Aubert East salt deposit is located in the three easternmost claims of the property. According to SOQUEM, it is a salt formation that is situated in an environment where volcanic and clay facies are prevalent. The primary impurity of the salt is clay, and anhydrite is scarce. The diapiric deposit is characterized by a greatly disturbed and complex original geological structure. The top of the deposit is at least 1,500 metres below sea level. SOQUEM has reported in 1979 an historical estimate of 159.8 million metric tonnes of salt reserves at a grade above or equal to 90 per cent NaCl.

In the upcoming months, the historical geophysical and drill hole data will be reprocessed, validated and assimilated to enable the planning of a geological program that will unlock the full potential of the property.

Terms of the agreement

Pursuant to the option, and following the acceptance of the Canadian Securities Exchange of the option, the company will pay an aggregate of $120,000 in cash and issue an aggregate of six million common shares of the company to the vendor, as consideration for the acquisition of the interest in the property, as follows: (i) 500,000 shares on the effective date; (ii) $15,000 on or before April 30, 2024; (iii) $25,000 and 500,000 shares on or before the date that is 12 months from the effective date; (iii) $40,000 and one million shares on or before the date that is 24 months from the effective date; and (iv) $40,000 and $1-million on or before the date that is 36 months from the effective date.

In addition to the option shares, the company shall issue to the vendor three million shares on the declaration of proven reserves supported by a technical National Instrument 43-101 reserve calculation report that the company deems economically feasible to continue developing the property.

All shares issued under the agreement will be subject to a four-month-and-one-day statutory hold period.

Closing of Kingsville acquisition

The company is also pleased to announce the closing of the previously announced acquisition of a 100-per-cent interest in the Kingsville salt deposit, pursuant to a purchase agreement dated Oct. 30, 2023.

The consideration for the acquisition of the property was paid by the issuance of nine million shares to the vendors (see Oct. 31, 2023, press release for further details).

Qualified person

The technical content of this news release has been reviewed and approved by Patrick Laforest, BSc, MBA, PGeo, who is an independent qualified person (QP) as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The QP and the company have not completed sufficient work to verify the historic information on the properties, particularly regarding historical exploration, neighbouring companies and government geological work.

About QNB Metals Inc.

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

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