Nexcel Earns Initial 29.58% Interest in the Burnt Hill Tungsten Project

Executive Summary

• Nexcel Metals Corp. exercised its option agreement to acquire an initial 29.58% interest in the Burnt Hill Tungsten Project for $170,000 cash and $330,000 worth of common shares (355,775 shares at $0.78 per share).
• The company retains the right to earn a further 28.42% interest (up to a total 58% ownership) by delivering an additional $250,000 cash and $600,000 in common shares.
• Upon reaching ≥51% ownership, a joint‑venture will be formed among Nexcel, Cadillac Ventures Inc., and the Minority Owner.

Key Details

• Initial Acquisition: 29.58% Property Interest earned; consideration – $170,000 cash + issuance of 355,775 common shares (valued at $0.78 per share).
• Future Earn‑On Option: Up to an additional 28.42% interest available for $250,000 cash and $600,000 in common shares, bringing total possible ownership to 58%.
• Hold & Resale Restrictions: Shares issued (355,775 to Cadillac Ventures; 1,000,000 to Northex Capital Partners) subject to a hold period expiring April 9 2026. Voluntary resale restrictions: 15% of shares restricted until each of Apr‑3‑2026, Oct‑3‑2026, Apr‑3‑2027, Oct‑3‑2027, Apr‑3‑2028, Oct‑3‑2028; remaining 10% unrestricted.
• Assignment Shares: 1,000,000 common shares issued to Northex Capital Partners pursuant to amendment and assignment agreement dated August 1 2025.
• Project Overview: Burnt Hill Project (~1,540 ha) hosts a historical NI 43‑101 resource of 1,761,000 t (open pit & underground) averaging 0.292% WO₃, 0.007% MoS₂, 0.008% SnO₂; plus inferred 1,520,000 t at 0.263% WO₃, 0.008% MoS₂, 0.005% SnO₂.
• Contained Metal (Historical MRE):
• Indicated – Tungsten: 8.99 M lb; Molybdenum: 162.91 k lb; Tin: 244.64 k lb
• Inferred – Tungsten: 6.99 M lb; Molybdenum: 160.7 k lb; Tin: 131.98 k lb
• Strategic Context: Tungsten is a critical mineral for aerospace, defense, and high‑temperature applications; domestic supply is limited, enhancing the strategic importance of Burnt Hill.

Notable Quotes

“The acquisition of an initial 29.58% interest in the Burnt Hill Project represents a significant step toward securing a domestic source of critical tungsten resources.” – Hugh Rogers, CEO, Nexcel Metals Corp.