Bullion Gold takes 100% ownership of Terragold

Executive Summary

• Bullion Gold Resources Corp. has signed an amendment to acquire 100% of the Terragold Project (consolidating the Transterre and Transterre-Ouest properties) by issuing 3.5 million common shares, eliminating all future cash payment obligations and completion milestones.
• The acquisition is driven by a reinterpretation of historical drilling data, revealing that past drill holes were mislocated ~500m east in government databases, leading the company to pivot focus toward lower-grade, open-pit potential rather than high-grade historical claims.
• The ~2,060-hectare project in Quebec’s Abitibi region features a >2.2 km low-grade gold corridor with historical intersections and geological features that support open-pit viability, particularly given current gold prices.

Key Details

• Transaction Structure: 100% acquisition of Terragold Project via issuance of 3.5 million common shares; eliminates future cash payments and completion milestones from the original agreement.
• Project Location & Size: 36 mining claims totaling ~2,060 hectares, located 12 km south-southeast of Senneterre, Quebec (Abitibi region); accessible year-round via secondary roads and logging paths.
• Historical Data Reinterpretation: Kerr Addison (1984) drill holes were mislocated ~500m east in SIGEOM databases. Repositioning supports lower-grade continuity over high-grade historical claims.
• Historical Drilling Intercepts (East Extension): Senneterre-Goldfield (GM 15746) reported 3.16 g/t Au over 2.89 m; Candore Exploration reported 1.26 g/t Au over 4.92 m.
• Historical Drilling Intercepts (West Extension): Groupe Minier Sullivan (GM 39890) reported 1.01 g/t Au over 5.43 m; 1.35 g/t Au over 4.85 m; 1.23 g/t Au over 13.2 m (including 2.03 g/t Au over 6.30 m); 0.68 g/t Au over 20.60 m; 1.05 g/t Au over 6.30 m.
• Historical Drilling Intercepts (Main Zone): Transterre holes J-33 and J-39 reported 4.26 g/t Au over 3.65 m and 1.16 g/t Au over 7.6 m, respectively.
• Porphyry & Grade Analysis: 70% of porphyry samples yielded >0.3 g/t Au; weighted average for samples between 0.3 and 3.25 g/t Au (representing 60% of porphyry samples) is ~0.9 g/t Au.
• Geological Context: Low-grade gold corridor extends >2.2 km across the Transterre zone and ~1 km toward the Candore showing. System remains open laterally and at depth. Features include quartz porphyry dikes (>35m thick), mineralized shear zones, and volcanic contacts.
• Correction Note: Candore property acquisition cost corrected to 50,000 common shares (previously misstated as $50,000 cash).
• Qualified Person: Gilles Laverdiere, PGeo (Chairman of the Board, reviewed and approved technical data per NI 43-101).

Notable Quotes

• "This acquisition secures full ownership of Terragold for consideration solely in shares. We are thus preserving our cash while providing our shareholders with maximum exposure to the potential of this additional gold project." – Guy Morissette, CEO
• "This project remains interesting nonetheless for its potential as a low-grade, open-pit deposit. The gold corridor was intersected over more than 1.2 km in the Transterre zone and extends for approximately 1 km towards the Candore showing... Today, with a value of over $140 (U.S.) per gram of gold, this makes the concept of a low-grade gold deposit exploitable by open pit more attractive. As an example, low-grade deposits such as Cote Lake (Iamgold) or Detour Lake (Agnico-Eagle) have become world-class gold projects." – Guy Morissette, CEO