Golden Lake signs new Jewel Ridge lease in Nevada

Executive Summary

• Golden Lake Exploration Inc. signed a new mining lease with an option to purchase for its Jewel Ridge project in Nevada, replacing a 2004 agreement.
• The lease covers 96 unpatented federal mining claims and 11 patented claims (approx. 80% of the project) for a seven-year term.
• The agreement includes specific expenditure requirements, annual payments, and a royalty structure with buy-down options, alongside details on previously acquired adjoining claims.

Key Details

• Lease Parties: Golden Lake Exploration Inc. (Lessee) and GM Squared LLC (Lessor).
• Property Covered: 96 unpatented federal mining claims and 11 patented mining claims, representing approximately 80% of the Jewel Ridge project near Eureka, Nevada.
• Lease Term: Seven years.
• Financial Obligations:
  • Annual lease payment: $25,000 USD.
  • Minimum expenditures: $1 million USD incurred over the first three years for mining, exploration, and development.
  • Additional costs: All Bureau of Land Management filings, records, taxes, and fees to maintain the property.
• Purchase Option: The company has the option to purchase the leased property for $3 million USD, less the aggregate lease payments already made.
• Royalty Structure:
  • Upon production commencement, a 4.0% net smelter return (NSR) royalty is payable to the lessor.
  • Royalty Buy-Down Options:
    • 1% reduction: $1 million USD.
    • 2% reduction: $1.5 million USD.
    • 3% reduction: $2.5 million USD.
    • 4% reduction: $3 million USD.
• Termination Clauses:
  • Company may terminate with 30-day written notice.
  • Lessor may terminate for default (including failure to pay rentals, royalties, or meet work commitments), subject to a 30-day cure period.
• Additional Property Context:
  • Rainbow Claims: 19 patented claims acquired from Greencastle Resources Ltd. (affiliate) in May 2023. Subject to a 3.0% NSR royalty, with an option to buy down 2% of the royalty (reducing it to 1.0%) for $2 million USD, exercisable until May 4, 2030.
  • Lord Byron Claims: Added in April 2022; 4 acres contiguous with A & E targets, with no royalties or obligations.
  • BLM Lode Claims: 46 unpatented claims (924 acres) staked in September 2023, 100% owned with no royalty obligations or work commitments.
• Correction: The release corrects a previous announcement from Dec 4, 2025, clarifying that the promissory note for advance royalty payments was issued under an option agreement with Greencastle Resources Ltd., not Greenlane Resources.