Mr. Paul Sobie reports

CHURCHILL RESOURCES PROVIDES UPDATE ON THE TAYLOR BROOK NICKEL PROJECT IN NEWFOUNDLAND & LABRADOR; ANNOUNCES $2.5M PRIVATE PLACEMENT

Churchill Resources Inc. has provided an update on its Taylor Brook nickel project and has arranged a non-brokered private placement consisting of the sale of up to 50 million units of the company for gross proceeds of up to $2.5-million, each as further described below.

Taylor Brook project update: spring work program

The company previously announced on Feb. 29, 2024, that drilling and geophysical surveys completed during the winter have confirmed a previously unknown, large, dynamic magmatic intrusive system (TB magmatic trend) that extends from the Layden nickel showing area southeasterly for 13 kilometres to the Taylor Brook gabbro complex South lobe. In particular:

• The TBGC South lobe is of priority interest due to its intense, coincident, gravity and magnetic anomalies proximal to the rifted continental margin, a locale where nickel districts are commonly found.
• Drilling at Layden has hit gabbroic intrusive rocks and sulphide-bearing breccias in all holes targeting CSAMT (controlled source audio magnetotelluric) survey resistivity-low features.
• Airborne MMT (mobile magnetotelluric) resistivity surveys have mapped the high-grade nickel-bearing Layden intrusive area and the TB magmatic trend.

Churchill is currently well into an extensive 2024 exploration program targeted on the TB magmatic trend, and has been active since April with line-cutting, ground CSAMT, induced polarization and time domain electromagnetic surveys, diamond drilling, and borehole electromagnetic surveys. Four selected target areas have been identified along the TB magmatic trend with compelling exploration results to date.

The TBSL-1 area lies just inside the South lobe of the Taylor Brook gabbro complex and along the eastern flank of the TB magmatic trend. A 600-metre-long nickel-copper-cobalt soil anomaly has been defined over the area, including a sample that assayed 584 parts per million Ni, 1,172 ppm Cu and 665 ppm Co -- the highest soil results on the property. Partial CSAMT coverage of this area has identified compelling resistivity-low targets, which are currently being comprehensively followed up with CSAMT, IP and TDEM surveys to delineate drill targets.

The TBSL gravity area contains the 30-plus-milligal bouguer gravity anomaly from the 2016 national gravity survey, which correlates with a very strong magnetic response within the South lobe, as well as the centre of the TB magmatic trend. This area will follow TBSL-1 with blanket CSAMT surveying and follow-up IP and TDEM surveys to outline new targets for drilling, as well as the extensions of targets identified on TBSL-1.

The Layden extension area captures the known Layden high-grade mineralization and is interpreted to be a faulted offset sill-like body to the west, which branches off the north end of the TB trend. Expanded CSAMT surveys here for detailed structure and geology will be followed with targeted IP and TDEM surveys on the resistivity-low features to generate drill targets.

The LIT-1 area on the western flank of the TB magmatic trend has returned soil samples assays to 575 ppm nickel within a 300-metre-long Ni-Cu-Co soil anomaly where prospecting and trenching have confirmed gabbronoritic host rocks at surface. Anomalous nickel and copper assays in float samples are found approximately 500 m south of this area. As at TBSL-1, partial CSAMT coverage of this area has identified compelling resistivity-low targets, which will be comprehensively followed up with CSAMT, IP and TDEM surveys for drill targets.

Taylor Brook chargeability targets

Work at the TBSL-1 grid has identified compelling chargeability targets coincident with soil anomalies, both within the Southern lobe of the Taylor Brook gabbro complex. Drilling is expected to commence in mid-August, 2024, to testing these targets.

The supercharger target TB-01 exhibits an extremely high component to the chargeability response consistent with the physical property measurements from rocks and core containing massive, semi-massive and net-textured nickel sulphide mineralization at Layden. These high values are attributed to the nickel sulphide pentlandite, which is known to exhibit high conductivity and therefore probably high chargeability. Peak responses were as high as 400 millivolts to volts and 80 millivolts to volts, overtop of an already strongly anomalous 50-millivolt-to-volt anomaly amplitude. Background chargeability is 10 to 15 millivolts to volts. A mix of disseminated sulphides and semi-massive sulphides is therefore quite possible in this zone. Thus far from the gradient IP data, TB-01 is indicated to be greater than 750 metres in length extending onto the neighbouring gravity grid, where line cutting is commencing to allow the geophysical surveys to trace the entire anomaly. Similarly, the grid is being expanded to the west to allow for complete coverage of the TB-03 and TB-05 targets. CSAMT and TDEM surveys are arranged to follow the IP work, to increase the understanding of the size, depth and orientation of the chargeability targets prior to drill testing.

Private placement

The offering will consist of the sale of up to 50 million units at a price of five cents per unit for gross proceeds of up to $2.5-million. Each unit will consist of one common share of Churchill and one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at a price of 15 cents at any time prior to the date that is 24 months following the completion of the offering.

In connection with the offering, the company may pay to eligible finders a fee equal to 7.0 per cent of the gross proceeds raised by the company from the sale of units to subscribers directly introduced to the company by such finders. In addition, the company may issue to eligible finders non-transferable warrants equal to 7.0 per cent of the number of units sold in the offering to subscribers directly introduced to the company by such eligible finders. Each finder's warrant will entitle the holder to acquire one common share at a price of five cents per common share for a period of 24 months from the date of issuance.

The company intends to use the net proceeds from the offering on the exploration of the company's key nickel projects in Newfoundland and Labrador and for general working capital purposes. The offering is expected to close on or about July 19, 2024, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The securities issued pursuant to the offering will be subject to a statutory hold period of four months and one day from the closing date of the offering.

Malik Easah, a director of the company, is expected to acquire 10 million units in the offering. Participation of Mr. Easah in the offering will be considered a related-party transaction pursuant to Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company will be exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Mr. Easah's participation in the offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report will be filed in connection with the participation of Mr. Easah in the offering fewer than 21 days in advance of the closing of the offering, which the company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the offering in an expeditious manner.

About Churchill Resources Inc.

Churchill is a Canadian exploration company focused on high-grade, magmatic nickel sulphides in Canada, principally at its prospective Taylor Brook and Florence Lake properties in Newfoundland and Labrador. The Churchill management team, board and its advisers have decades of combined management experience in mineral exploration and in the establishment of successful publicly listed mining companies, both in Canada and around the world. Churchill's Taylor Brook and Florence Lake projects have the potential to benefit from the province's large and diversified mineral industry, which includes world-class nickel mines and processing facilities, and a well-developed mineral exploration sector with locally based drilling and geological expertise.

The technical and scientific information in this news release has been reviewed and approved by Derek H.C. Wilton, PGeo, FGC, and Jeremy S. Brett, PGeo, each of whom is a qualified person as defined under National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Mr. Wilton is an honorary research professor of economic geology at Memorial University, and Mr. Brett is a senior geophysical consultant. Each of Mr. Wilton and Mr. Brett is independent of the company for the purposes of NI 43-101.

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