Strategic Metals Options Yukon Copper-Gold Porphyry Property to GT Resources Inc.

Executive Summary of Recent Release

• Date: May 20, 2026
• Event: Strategic Metals Ltd. granted GT Resources Inc. a staged option to acquire up to a 75% interest in the CD copper-gold porphyry property in the Yukon.
• Transaction Structure: Two-stage process: First option for 60% interest, followed by second option for additional 15%.
• Consideration: $225,000 cash payment plus issuance of GT shares equal to $225,000 value; minimum expenditure requirement of $10 million on the CD property.
• Joint Venture: Formation of a 60/40 or 75/25 joint venture depending on option exercise completion dates (Oct 2030 and Dec 2030).

Financial Impact Analysis

• Cash Injection: The $225,000 cash payment is immaterial relative to the company's ~$3.5 million cash balance and $41 million market capitalization. It does not significantly alter liquidity or solvency.
• Dilution Risk: Issuance of GT shares to Strategic Metals introduces counterparty risk rather than direct equity dilution for Strategic shareholders, though it ties value to GT's performance.
• Expenditure Burden: The $10 million expenditure requirement is transferred entirely to GT Resources, reducing capital risk for Strategic Metals on this specific asset.

Business Model

• Strategy: Yukon-focused Project Generator acquiring early-stage assets, building royalty portfolios, and holding equity in advanced projects to generate cash flow.
• Portfolio: 81 wholly owned mineral projects across Yukon, northern BC, and western NWT; net smelter return (NSR) royalties on an additional 16 projects.