Hemlo Mining buys back 1.5% NSR at Hemlo mine complex

Executive Summary

• Hemlo Mining Corp. has acquired a 1.5% net smelter return (NSR) royalty interest associated with the past-producing David Bell property, which is located within its Hemlo gold mine complex near Marathon, Ontario.
• The acquisition consolidates the company's interest in the Hemlo land package, aiming to improve economic leverage for future exploration and production growth.
• The David Bell property, which produced approximately 4.2 million ounces of gold between 1985 and 2013, contains multiple exploration targets that will be tested during the company's 2026 drilling program.

Key Details

• Transaction Structure: Acquisition of a 1.5% net smelter return (NSR) royalty.
• Target Asset: The royalty covers 17 mineral claims associated with the past-producing David Bell mine, located approximately one kilometer east of Hemlo Mining's current operations.
• Strategic Rationale: The company views this consolidation as an accretive strategy to support exploration investment and long-term shareholder value by improving economic leverage to potential exploration success.
• Historical Production Context: The David Bell mine operated from 1985 to 2013, producing approximately 4.2 million ounces of gold during a period when gold prices averaged approximately $600 (U.S.) per ounce.
• Exploration Plans: The company has identified multiple exploration targets at the David Bell property, which will be tested through the 2026 exploration drilling program.
• Geological Context: The David Bell deposit represents a classic Hemlo-style gold system with mineralization hosted in altered volcano-sedimentary and fragmental rocks. Historical stopes demonstrate continuity of mineralized corridors, including B-Zone hangingwall and footwall zones.
• Technical Review: Scientific and technical information was reviewed by Raphael Dutaut, PhD (PGeo), Vice-President, Exploration, who is a qualified person under National Instrument 43-101.
• Data Sources: Technical information is derived from an NI 43-101 Technical Report with an effective date of Dec. 31, 2024, and a signature date of Oct. 27, 2025.

Notable Quotes

• Jason Kosec, President and CEO: "Our 2026 exploration program is designed to unlock new mineralization across the broader Hemlo land package, including in the vicinity of the past-producing David Bell mine. By targeting areas proximal to existing infrastructure, we aim to efficiently convert exploration success into extended mine life, enhanced production profiles and improved long-term economics."
• Jason Kosec, President and CEO: "In parallel, we will continue to consolidate royalty interests within our land package where valuations are compelling. This disciplined and accretive approach directly supports exploration investment and strengthens long-term shareholder value."
• Jason Kosec, President and CEO: "Importantly, our lead director, Dr. Robert Quartermain, brings firsthand knowledge of the district, having spent three years drilling and working underground at the David Bell mine from 1982 to 1984. His direct experience during Hemlo's formative discovery period provides valuable geological insight that meaningfully enhances the technical rigor and strategic focus of our 2026 program."