Delta Resources' Delta-2 option receives conditional OK

Executive Summary

• Delta Resources Ltd. has closed its option agreement with Troilus Mining Corp., allowing Troilus to acquire a 100% undivided interest in the Delta-2 mineral claims in Quebec.
• The transaction provides up to $8.25 million in non-dilutive funding over three years, with an initial $1.0 million payment received at closing.
• Delta retains a 1.0% Net Smelter Return (NSR) royalty on the property, with Troilus responsible for all exploration and claim maintenance costs during the option period.

Key Details

• Transaction Structure: Option agreement for Troilus to earn 100% interest in Delta-2 mineral claims; conditional TSX Venture Exchange approval received, with final approval pending standard regulatory filings.
• Total Consideration: Up to $8.25 million in staged cash and/or common shares of Troilus, payable over an option period ending December 15, 2028.
• Initial Payment: $1.0 million total received at closing, structured as $500,000 in cash and $500,000 in Troilus common shares, payable within two business days of closing.
• Future Payments: Additional staged payments totaling $7.25 million to be made through December 15, 2028.
• Royalty Terms: Delta retains a 1.0% NSR royalty. 50% of this royalty may be repurchased by Troilus for $500,000.
• Operational Responsibilities: Troilus acts as operator, financing all exploration activities and claim maintenance expenditures during the option period. Delta retains ownership until the option is fully exercised.
• Asset Details: Delta-2 property comprises 405 mineral claims covering approximately 21,783 hectares in Quebec's Abitibi greenstone belt.

Notable Quotes

• "This agreement allows us to unlock immediate value from Delta-2 through non-dilutive funding and royalty exposure while maintaining strategic focus on advancing the rapidly evolving Delta-1 gold property in Thunder Bay, Ont." — Frank Candido, Chairman
• "The initial funding, combined with Delta's disciplined cost structure, positions the company to accelerate exploration at Delta-1 without shareholder dilution. We believe this transaction underpins our business plan over the coming years and aligns Delta with a technically strong partner to advance Delta-2." — Ron Kopas, Interim CEO