Mosaic Acquires the Historic Golden Island Project

Executive Summary

• Mosaic Minerals Corp. signed a letter of intent to acquire 100 % of the Golden Island (Île D'Or) property in Quebec, with an option structure spanning 2025‑2031 and total consideration of $525k cash, $1.15 M in shares, and up to 2.5 M warrants.
• The agreement includes milestone‑based ounce‑per‑ounce bonus payments (up to $1 M in shares) tied to a NI 43‑101 compliant resource estimate of at least 1.4 g/t Au, plus a 1 % NSR royalty and additional GMR royalties on select claims.
• Historical work indicates historic resources of ~391,000 t @ 2.8 g/t Au (non‑NI 43‑101) and recent 2024 sampling returned high‑grade grab samples up to 101.19 g/t Au.

Key Details

• Property: Golden Island project – 31 contiguous claims in Tiblemont Township, NTS 32C06, near Senneterre, Quebec; accessible year‑round via Road 113 and by boat on Tiblemont Lake.
• Historical Context: Early exploration (1932‑1939) produced a vertical shaft (155 m), adit (360 m), underground development (~1,800 m), 5‑ton mill, and historic resource estimate of 391 k t @ 2.8 g/t Au (non‑NI 43‑101).
• 1982 SOQUEM Drilling (8 holes, 1,150 m): Notable intercepts – Hole 82‑2: 5.6 m @ 2.99 g/t Au; Hole 82‑6: 5.2 m @ 2.01 g/t Au; Hole 82‑8: 5.1 m @ 2.39 g/t Au; plus a 4.7 m @ 1.31 g/t Au at hole 82‑5 (≈1 km NW of main zone).
• 2024 Exploration Campaign: Underwater drone imaging identified quartz veins; 25 grab samples collected, highest grades:
• Sample O0292991 – 101.19 g/t Au (former trench, E‑W contact zone)
• Sample O0292988 – 7.50 g/t Au (old N‑S trench, possible malachite coating)
• Sample O0292994 – 56.69 g/t Au (granodiorite with vertical quartz vein)
• Option Terms (Cash / Shares / Warrants):

• Warrant Details: 2.5 M warrants exercisable at $0.10 for 24 months from issuance.

• Share Pricing Basis: 15‑day VWAP of Mosaic’s share price (denoted “**”).

• Ounce‑Based Bonus Structure (triggered upon NI 43‑101 resource estimate ≥1.4 g/t Au, cut‑off 0.3 g/t):

• First 250,000 oz: $1.20/oz cash up to $300,000 + $300,000 in shares.
• 250,001–500,000 oz: $0.75/oz cash (total $487,500) + $600,000 in shares.

• 500,001 oz: $0.50/oz cash (no cap) + $1 M in shares.

• Royalties: Prospectors retain a 1 % NSR royalty on all mining claims; Globex Mining Enterprise holds a 1 % GMR on 5 claims and a 2 % GMR on 12 claims, with 50 % of the latter (i.e., 1 %) redeemable for $600,000.

• Management Rights: Mosaic may accelerate option exercise at any time and will act as manager of all work on the property.

• Qualified Person: Gilles Laverdière, P.Geo, Vice‑President Exploration, reviewed and approved technical information per NI 43‑101.

Notable Quotes

• “The Golden Island project offers a compelling historic base with modern exploration potential. This LOI positions Mosaic to unlock value through targeted drilling and resource definition,” – Jonathan Hamel, President & CEO.