Abitibi Metals Secures 100% Ownership of the B26 Deposit and Establishes a District Scale Consolidation Platform Across the Selbaie Camp

Executive Summary

• Abitibi Metals Corp. has entered into a definitive agreement to acquire SOQUEM Inc.'s remaining 20% interest in the B26 Polymetallic Deposit, securing 100% ownership of its flagship Quebec asset.
• The transaction features a ~C$7M initial consideration structure with milestone payments tied to feasibility and construction stages, alongside a 1% NSR royalty retained by SOQUEM.
• The agreement includes a 10-year Right of First Refusal on SOQUEM's Wagosic and Carheil properties, establishing a strategic pathway for district-scale consolidation in the Selbaie Mining Camp.

Key Details

• Transaction Type: Acquisition of remaining 20% joint venture interest in the B26 Polymetallic Deposit from SOQUEM Inc.
• Initial Consideration (~C$7M):
• Upon closing: C$5M in cash (payable within 90 days, reduced by 20% of SOQUEM's attributable exploration expenditures) + C$2M in Abitibi Metals shares.
• Milestone 1 (Feasibility study or ≤3 years post-closing): C$6M payable 50% cash / 50% shares.
• Milestone 2 (Construction decision or ≤5 years post-closing): C$6M payable 50% cash / 50% shares.
• Royalty Terms: SOQUEM retains a 1% Net Smelter Return (NSR) royalty on B26; the existing 2023 JV royalty terminates at closing.
• Default Provisions: Failure to meet milestones triggers additional NSR (1% at feasibility, 0.5% at construction) and JV re-formation with equity reversion (12% at feasibility, 6% at construction). Abitibi retains the right to repurchase any additional NSR for C$2M.
• Resource Estimate: 2026 updated resource comprises 13.0M tonnes Indicated at 2.1% CuEq and 12.4M tonnes Inferred at 2.2% CuEq, totaling 25.3M tonnes (124% growth since the Company's initial option in 2023).
• Consolidation Rights: 10-year Right of First Refusal (ROFR) on SOQUEM's 100% owned Wagosic and Carheil properties.
• Collaboration Framework: A joint technical committee will be established to advance B26 and Wagosic concurrently, beginning with blended metallurgical test work to evaluate combined development scenarios.
• Project Context: B26 is located 7 km southeast of the formerly producing Selbaie Mine in northwestern Quebec's Selbaie Mining Camp.

Notable Quotes

• "Securing 100% ownership of B26 represents a transformative milestone for Abitibi Metals... With full ownership now secured, we have complete control over the future direction of the project and the ability to maximize value for our shareholders." – Jon Deluce, President and CEO
• "Equally important, this agreement establishes a strategic framework for future consolidation opportunities across the Selbaie Camp... this transaction positions us to evaluate those opportunities from a position of strength." – Jon Deluce, President and CEO