Hertz Energy Inc. Options 100% Interest in High-Grade District-Scale Crag and Rod Properties in Yukon

Executive Summary

• Hertz Energy Inc. entered into an option agreement to acquire 100% of the Crag and Rod properties (including the Craig silver‑lead‑zinc deposit) from Strategic Metals Ltd. for a total consideration of $2.35 M.
• The transaction provides Hertz with ~31,200 ha of contiguous land in Yukon’s high‑grade Rackla Belt, enhancing its strategic footprint for base‑metal and precious‑metal exploration.
• Historical drilling on the Craig Deposit returned high‑grade intercepts (e.g., 4.26 m @ 24.1% Zn, 4.3% Pb, 48 g/t Ag; 8.31 m @ ~102 g/t Ag, 4.8% Pb, 4.4% Zn) and gold values up to ~9.5 g/t Au, underscoring the project's exploration upside.

Key Details

• Option Agreement Terms (executed Jan 27 2026):
• Total consideration $2.35 M comprising:
  • $100,000 cash at execution
  • 2,500,000 Hertz common shares issued within 10 business days (deemed value $0.30/share)
  • Additional $1.5 M payable in cash or Hertz shares (at company election) due either 10 days after receipt of a Yukon quartz mining land‑use permit for drilling or the first anniversary of the agreement, whichever is earlier.
• Royalty: Strategic Metals retains a 2.0% Net Smelter Returns (NSR) royalty; Hertz may buy down 50% (to 1.0% NSR) by delivering 500 oz gold or cash equivalent before any production decision.
• Land Position: Crag and Rod properties cover ~31,200 ha within the Craig Belt, a sub‑belt of the ~175‑km Rackla Belt known for high‑grade silver‑lead‑zinc and gold mineralization.
• Historical Drill Intercepts (Craig Deposit):
• 4.26 m @ 24.1% Zn, 4.3% Pb, 48 g/t Ag
• 8.31 m @ ~102 g/t Ag, 4.8% Pb, 4.4% Zn
• Gold Anomalies: Rock samples up to ≈9.5 g/t Au, indicating Carlin‑style gold affinity.
• Broader Corridor: Includes additional zones (Discovery, Trent, Azure, Nadaleen, Scott) with Mississippi Valley‑type and vein‑hosted mineralization; historic soil surveys show:
• Ag 20–293 ppm, Sb 20–918 ppm, Pb 1,000–20,700 ppm, Zn up to 60,400 ppm.
• Rod Property Highlights: Historical trench assays up to 193 g/t Ag with multi‑percent Zn over ~1 m.
• Strategic Rationale: Acquisition positions Hertz for district‑scale exploration in a Tier‑1 jurisdiction, targeting critical minerals (silver, zinc, lead) essential for clean‑energy technologies.

Notable Quotes

(No direct CEO/President quotes were included in the release.)