Advanced Gold to acquire Silver Belle project

Executive Summary

• Advanced Gold Exploration Inc. has entered into a mineral property purchase agreement to acquire a 100% interest in the Silver Belle project, a 2,000-acre CRD-style mineral property in Eureka County, Nevada, with no modern exploration conducted to date.
• The acquisition consideration includes $175,000 in total cash payments and the issuance of 3.0 million common shares to the vendors, alongside a 1.5% net smelter return (NSR) royalty held by Stream Metals.
• Concurrently, the company announced a proposed non-brokered private placement of up to 5.0 million units at $0.20 per unit, targeting up to $1.0 million in gross proceeds to fund general corporate and working capital needs.

Key Details

• Property & Location: Silver Belle project, Eureka County, Nevada; ~100 unpatented lode mining claims covering ~2,000 acres within the prolific Eureka mining district.
• Geology & Mineralization: CRD-style carbonate replacement deposits; historic high-grade silver-lead-zinc-antimony production.
• Historic Production Data: 1937 smelter return from Silver Bell Mining Co. reported 1,611 g/t Ag (47 oz/t), 37% Pb, 10% Zn, 1% Cu, and 3,000 g/t Sb.
• Infrastructure: Existing shaft, multiple adits, and ~500 feet of historical underground development; deeper sulphide-rich CRD core remains untested.
• Cash Consideration: $25,000 upon execution, $100,000 on closing, and $50,000 on or before the sixth anniversary of closing.
• Equity Consideration: 1.5 million common shares issued on closing; 1.5 million common shares issued on or before the sixth anniversary of closing.
• Royalty Terms: Stream Metals retains a 1.5% NSR royalty; company holds option to buy out royalty for $1.5 million USD.
• Private Placement Size: Up to 5,000,000 units at $0.20 per unit.
• Gross Proceeds: Up to $1,000,000.
• Warrant Terms: Each unit includes 0.5 transferable common share purchase warrant; exercisable at $0.30 per share for a period of two years from issuance.
• Use of Proceeds: General corporate and working capital purposes.
• Hold Periods: 4 months + 1 day for all securities issued under the acquisition and private placement.
• Regulatory Conditions: Subject to CSE approval and other customary regulatory/conditions precedent.
• Qualified Person: Jim Atkinson, MSc, PGeo (Chairman & Director), reviewed and approved geological information per NI 43-101.

Notable Quotes

• Arndt Roehlig, President: "Data interpreted of the project has confirmed the site's status as a rediscovery target, highlighted by documented historical production of silver. Located in the historic Diamond district of Eureka county, the project consists of a 2,000-acre claim block situated on the Eureka-Battle Mountain mineral belt. Despite its location in one of the world's most productive mining jurisdictions, the project has seen no modern exploration, with all historical work restricted to the shallow oxidized cap of a much larger, untested potential CRD system."