F4 Uranium has TSX-V OK to option 70% of Murphy Lake

Executive Summary

• F4 Uranium Corp. received TSX Venture Exchange approval for an exclusive option agreement with Stearman Resources Inc. to acquire up to a 70% interest in the Murphy Lake uranium property in Saskatchewan.
• The transaction involves significant cash payments, exploration expenditure commitments, and equity issuance by Stearman to F4.
• The agreement includes a path to a joint venture after 60 months if the additional 20% option is not exercised, and establishes a 2.0% NSR royalty for F4 upon commercial production.

Key Details

• Transaction Structure: F4 Uranium granted Stearman Resources Inc. an exclusive option to acquire up to 70% interest in the Murphy Lake uranium property.
• Initial Option (50% Interest):
  • Stearman must pay an aggregate of $800,000 (including a $50,000 non-refundable payment) over two years.
  • Stearman must finance $10 million in expenditures over 42 months.
  • Stearman must issue common shares equal to 9.9% of its issued and outstanding shares within six months.
• Additional Option (Further 20% for 70% Total Interest):
  • Stearman may acquire an additional 20% interest for an aggregate of $500,000 over three years (starting from the agreement date).
  • Stearman must finance an additional $8 million in exploration expenditures on or before five years from the agreement date.
• Royalty Terms: Upon exercise of the initial option, Stearman grants F4 a 2.0% Net Smelter Return (NSR) royalty. Stearman is responsible only for the percentage of the NSR equal to its ownership interest.
• Joint Venture Trigger: On the earlier of: (i) exercise of the additional 20% option, (ii) election not to exercise the additional 20% option, or (iii) 60 months from the initial payment date, F4 and Stearman will form a joint venture for further exploration and development.
• Property Details: The Murphy Lake property consists of eight claims in the northeastern Athabasca basin, totaling 609 hectares.
• Finders' Fees: None payable.
• Neighboring Context: The property is located near major uranium deposits, including Orano's McLean Lake, IsoEnergy's Hurricane, and Cameco's La Rocque Lake (where drill hole Q22-040 intersected 29.9% U3O8 over 7.0m). F4's 2022 maiden drill program included 14 holes (6,850m), with hole ML22-006 intersecting 0.065% U3O8 over 2.5m.

Notable Quotes

• "The agreement is considered as an arm's-length transaction. The transaction reflects F4's focused strategy to unlock the project's potential through a committed partnership and establishes a clear path forward for exploration and development at Murphy Lake." — Ray Ashley, Chief Executive Officer