Mr. Darcy Marud reports

WESTERN EXPLORATION REPORTS POSITIVE GRAVEL CREEK METALLURGICAL RESULTS, INCLUDING GOLD RECOVERY OF 94.8% TO COMBINED GRAVITY AND FLOTATION CONCENTRATE

Western Exploration Inc. has released the results of 2024 metallurgical testing on composite samples from the Jarbidge rhyolite hangingwall zone of the Gravel Creek deposit.

Highlights from the work include:

• Locked-cycle flotation tests indicate recoveries of 94.8 per cent for gold and 89.8 per cent for silver in a combined gravity and flotation concentrate.
• The combined gravity and flotation concentrate were 10.9 per cent of the feed weight and averaged 57.1 grams per tonne and 1,725 grams per tonne silver.
• The flotation concentrate averaged 29.1 per cent sulphide sulphur.
• Gravity concentration before rougher flotation concentration (from the gravity tailings) recovered 22.4 per cent of the gold and 4.4 per cent of the silver in 0.16 per cent of the total feed weight with a gold grade of 920 g/t and a silver grade of 5,750 g/t.

Western Exploration chief executive officer Darcy Marud said: "Preliminary metallurgical test work on Gravel Creek hangingwall mineralization has returned very positive results for the recovery of gold and silver to concentrate. The recoveries are similar to past Gravel Creek metallurgical test work and demonstrate a potential path to economic recovery for precious metals."

2024 flotation metallurgy sample locations

Flotation test work was conducted on a gold-bearing and silver-bearing diamond drill composite from core holes WG456 and WG457, drilled in 2023 in the Jarbidge rhyolite. The two oriented core holes were completed to evaluate resource expansion potential in mineralized vein/breccia trends northeast of the Gravel Creek resource:

• Hole WG456, located 250 metres northeast of the Gravel Creek resource area, reported individual assays up to 34.9 g/t Au and 2,800.0 g/t Ag, as reported in a company news release dated Nov. 21, 2023.
• Hole WG457, located 140 metres northeast of the Gravel Creek resource area, reported individual assays up to 257.0 g/t Au and 1655.0 g/t Ag, as reported in a company news release dated Jan. 8, 2024.
• The composite comprised sulphide mineralization collected from samples ranging in downhole depths of 316 metres to 731 metres in WG456 and WG457.

Flotation program and results

All test work was completed by McClelland Laboratories Inc (MLI) of Sparks, Nev. Flotation testing was conducted on a gold-bearing and silver-bearing Gravel Creek drill core composite, designated 4991-001, to evaluate response to flotation processing. The composite comprised sulphidic mineralization ranging from 316-metre to 731-metre downhole depths from two drill holes (WG456 and WG457). Composite assays showed that it contained 6.14 g/t Au, 206 g/t Ag and 2.71 per cent sulphide sulphur. Cyanide shake analysis showed that the sample had cyanide soluble to fire assay ratios (CN/FA) of 53.4 per cent for gold and 36.8 per cent for silver. The composite contained negligible amounts (less than 0.1 per cent) carbon. A preg-rob assay showed that it was not preg-robbing. Initially, six rougher flotation tests were conducted at feed sizes ranging from 80 per cent under 150 microns to 80 per cent under 45 microns. A typical bulk sulphide flotation collector reagent suite was employed for all tests. Following grind optimization testing, a bulk rougher concentrate was produced and used for preliminary cleaner flotation testing. The objectives for the testing were to maximize gold and silver recovery and concentrate grades. Sulphide sulphur recoveries were also tracked during testing. Variability in flotation tail grade caused significant variability in flotation gold recoveries. Flotation testing showed that the Gravel Creek mineralization responded very well to bulk sulphide flotation treatment. Gold and silver recoveries of as high as greater than 92 per cent were achieved with rougher flotation mass pulls of approximately 11 per cent (see attached table).

Preliminary cleaner flotation testing showed that it was possible to significantly increase concentrate grades by cleaning. Cleaner concentrate grades of as high as greater than 70 g/t Au, greater than 3,900 g/t Ag and 41 per cent sulphide sulphur were achieved.

Regrinding the rougher concentrate for as much as 90 minutes resulted in production of a cleaner concentrate that was 3.2 per cent of the ore weight, assayed 72.4 g/t Au, 3,920 g/t Ag and 41.07 per cent sulphide sulphur and represented recoveries of 35.9 per cent gold, 59.6 per cent silver and 49.2 per cent sulphide sulphur. The corresponding cleaner tail was another 7.4 per cent of the feed weight, assayed 40.6 g/t Au, 898 g/t Ag and 16.04 per cent sulphide sulphur and represented additional recoveries of 46.5 per cent gold, 31.5 per cent silver and 44.4 per cent sulphide sulphur (see attached table).

A gravity concentration test was conducted on tailings from one of the flotation tests to evaluate causes for variability in flotation tail grade. Results showed that most (77 per cent) of the gold contained in the flotation rougher tail sample was gravity recoverable. The gravity concentrate produced was 0.07 per cent of the flotation tail weight, assayed 2,250 g/t Au and represented 77.0 per cent of the gold contained in the flotation tailing.

Follow-up locked-cycle flotation test work was conducted at an 80-per-cent-under-150-micron grind size on gravity tails generated from the sample composite. Test results showed that the combined gravity and flotation concentrate was 10.9 per cent of the feed weight, assayed 57.1 g/t Au and 1,725 g/t Ag. Recoveries reporting to this combined concentrate were 94.8 per cent gold and 89.8 per cent silver of the values contained in the whole feed. The combined concentrate described herein included a gravity cleaner concentrate and flotation rougher concentrate (from locked-cycle testing on the gravity tailing). The gravity concentrate was 0.16 per cent of the feed weight, assayed 920 g/t Au and 5,750 g/t Ag and represented gold and silver recoveries of 22.4 per cent and 4.4 per cent, respectively. The gravity concentrate was not assayed for sulphide sulphur. The flotation concentrate was 10.74 per cent of the whole feed weight, assayed 44.3 g/t Au, 1,665 g/t Ag and 21.9 per cent sulphide sulphur, and represented gold and silver recoveries of 72.4 per cent and 85.4 per cent respectively of values contained in the whole feed weight.

About the Aura project

The 6,000-hectare Aura project has established mineral resource estimates in three different deposits (Doby George, Gravel Creek and Wood Gulch), as reported in the 2021 updated resource estimates and technical report for the Aura gold-silver project, Elko county, Nevada, dated Oct. 20, 2021 (with an effective date of Oct. 14, 2021) that was prepared for the company by Mine Development Associates (see attached table). The mineral resource estimates in the technical report were established in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects.

In addition, the Aura project has well-established infrastructure, including year-round accessibility by highway and county-maintained road and nearby access to water and electricity. Western Exploration has exploration, development and mining rights on 930 hectares of privately owned land through a mineral lease agreement with a local landowner and may purchase those fee lands at any time for the development of Doby George.

About Western Exploration Inc.

Western Exploration is focused on advancing the 100-per-cent-owned Aura gold-silver project, located approximately 120 kilometres/75 miles north of the city of Elko, Nev. The project includes three unique gold and silver deposits: Doby George, Gravel Creek and Wood Gulch.

Western Exploration comprises an experienced team of precious metal experts that aim to lead the company to becoming North America's premier gold and silver development company.

Qualified person approval

The scientific and technical information in this news release has been reviewed and approved by Mark Hawksworth, general manager of the Aura project, and Jack McPartland of MLI, each of whom is a qualified person within the meaning of NI 43-101.

Quality assurance/quality control

Exploration program design, QA/QC and the interpretation of results are performed by qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. For Western Exploration legacy samples, standards and blanks and duplicates were generally included approximately every 20th sample for QA/QC purposes by the company as well as the lab. Approximately 5 per cent of sample pulps are sent to secondary laboratories for check assay. QA/QC controls are not fully documented for legacy assays from the 1980s and 1990s but Mine Development Associates conducted rigorous evaluation of adjacent assay intervals as part of the technical report resource calculations.

Metallurgical test work

Interval preparation and assay: A total of 28 drill interval samples, from the Gravel Creek deposit were received on Jan. 18, 2024. Select samples from drill holes WG456 (ranging from 1,792.7 feet to 2,397 feet) and WG457 (ranging from 1,036.5 feet to 2,319.2 feet) were used for testing. The interval samples were previously crushed to a nominal two millimetres and weighed 0.3 kilogram to 7.3 kilogram each. Select samples (19) were combined in entirety to produce Gravel Creek composite 4991-001.

The entire composite was stage crushed to just passing 1.7 metres in size. The minus-1.7-millimetre composite was thoroughly blended and split to obtain multiple 1.0-kilogram samples for testing and triplicate 0.25-kilogram samples for head assay.

The composite was assayed directly in triplicate, using conventional fire assay fusion procedures, to determine gold and silver content. A single cyanide shake analysis was conducted, with and without a gold-spike leach solution (preg-rob test series). Carbon and sulphur speciation analyses were conducted using Leco/pyrolysis methods. A single multielement ICP scan was conducted.

Flotation testing

A total of six rougher flotation tests were conducted on composite 4991-001, at feed sizes ranging from 80 per cent under 150 micrometres to 80 per cent under 45 micrometres, to evaluate response to flotation and to optimize flotation feed size. The tests were conducted using a bulk sulphide flotation reagent scheme, designed to maximize recoveries of sulphide minerals, gold and silver.

Initially, a scouter rougher flotation test was conducted on a one-kilogram sample at an 80-per-cent-under-75-micrometre feed size to obtain preliminary information concerning response of the ore to flotation treatment. Based on those results, a series of three additional rougher flotation tests (one kilogram each) were conducted at feed sizes of 80 per cent under 150 micrometres, 80 per cent under 106 micrometres and 80 per cent under 45 micrometres to optimize feed size. Based on those test results, the 75-micrometre feed size was selected for further testing. A kinetic rougher flotation test was conducted at the 75-micrometre feed size to establish the relationships between flotation time, mass pull, rougher concentrate grade and recovery. A bulk flotation test (16 kilograms) was conducted at the 75-micrometre feed size to generate rougher concentrate for cleaner flotation testing. Cleaner flotation tests (three) were conducted on the resulting bulk rougher concentrate to evaluate the potential for increasing concentrate grade by regrinding and cleaner flotation.

The same reagent suite was used for all rougher flotation tests. Flotation was conducted using a Denver laboratory-scale flotation unit at 1,200 revolutions per minute. Each ground pulp was slurried with grind water to achieve 33 per cent solids (weight/weight) and was conditioned for five minutes with 0.25 kilogram per metric tonne CuSO4.5H2O.

Flotation was conducted in five stages with incremental additions of 0.005 kilogram per metric tonne ore of PAX (potassium amyl xanthate) and 0.010 kilogram per metric tonne Aero 208 (dithiophosphate) collectors at each stage. Respective total addition of each reagent was 0.025 kilogram per metric tonne and 0.050 kilogram per metric tonne ore. Aerofroth 65 was used as frother. The pulp was floated at natural pH. For all rougher flotation tests, except for the kinetic test, the five stages of concentrate were combined into a rougher concentrate. Those rougher concentrates were dried, weighed and assayed directly to determine gold, silver and sulphide sulphur content.

The five staged rougher concentrate samples generated from the kinetic flotation test (F-5) were each dried, weighed and assayed separately for the same constituents.

In the case of the bulk (16-kilogram) rougher flotation test (F-6), rougher flotation was conducted in two eight-kilogram lots, using a larger flotation machine. The rougher concentrates produced from those two tests were combined, dried, weighed and split to obtain three 0.5-kilogram samples for cleaner flotation testing and 0.2 kilogram for assay. The combined rougher concentrate was assayed directly to determine gold, silver and sulphide sulphur content. The rougher tails from each eight-kilogram lot were dried, weighed and assayed separately, in triplicate to determine gold silver and sulphide sulphur content (one sulphide sulphur assay per eight-kilogram lot). Results presented for rougher flotation test F-6 are based on the average of assay results from the two eight-kilogram lots (designated F-6A and F-6B).

Cleaner flotation tests (three) were conducted on the rougher concentrate generated from the bulk flotation test (F-6). The tests were conducted on 0.5-kilogram splits of rougher concentrate after regrinds of one minute (polish grind), 45 minutes and 90 minutes. Cleaner flotation was conducted without additional collector or promoter. Frother was added as required. The resulting cleaner concentrates and cleaner tails were dried, weighed, and assayed to determine gold, silver and sulphide sulphur content.

For additional information on the Aura project, please see the technical report, which has been prepared in accordance with the requirements of NI 43-101, a copy of which is available on SEDAR+ under Western Exploration's issuer profile and on Western Exploration's corporate website.

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