Klondike Gold receives $42,282 Montana royalty payment

Executive Summary

• Klondike Gold Corp. reports that its Montana Creek placer property, leased by Armstrong Mining Corp., exceeded expectations in its first season, generating a total of $542,282 in royalty payments for 2025.
• The company has $8.9 million remaining in royalties or payments to be paid to complete the option to purchase agreement by March 2031.
• Armstrong Mining completed significant operational milestones including early production, infrastructure upgrades, and a 140-hole sonic drilling program to delineate gold pay streaks.

Key Details

• Royalty Revenue: Total production royalty revenue paid to Klondike Gold in 2025 is $542,282.
• Remaining Obligations: $8.9 million of royalties or payments remain to be paid to complete the option to purchase payments by March 2031.
• Lease Terms: Armstrong Mining holds a six-year lease with an option to purchase 100% of the Montana Creek surface gravel alluvial gold placer property.
• Royalty Structure: A 10% production royalty per year on all gold and other minerals produced, capped at $9.5 million.
• Operational Highlights (2025 Season):
  • Production and gold recovery began ahead of schedule, exceeding projected returns.
  • Successful mobilization of heavy equipment and installation/upgrading of camp infrastructure.
  • Installation and calibration of new processing equipment (wash plant and gold cleaning machine); a second larger capacity plant is scheduled for the next season.
  • Material stripped and stockpiled to facilitate a rapid start to the 2026 season.
  • Installation of a light aircraft emergency airstrip.
  • Completion of a 140-short-hole sonic drilling exploration program covering approximately 1.5 square kilometers to delineate and expand previously documented white channel gravel pay streaks.
  • Maintenance and filing of all required permitting and remediation procedures.
• CEO Commentary: President and CEO Peter Tallman noted the asset is returning "dilution-free funding" and that Armstrong Mining's management has exceeded expectations, positioning the property to contribute increasing royalty revenues beyond original projections.

Notable Quotes

• "The Montana Creek placer deposit was an idle, underappreciated asset that is now returning dilution-free funding for Klondike Gold. We are pleased with Armstrong Mining's professional and competent management of the operation, which has exceeded our expectations from the start, and now is positioned to contribute increasing royalty revenues beyond our original projections for the next several years." — Peter Tallman, President and CEO
• "I congratulate the Armstrong Mining team for their professional effort that exceeded our productivity and financial objectives for 2025... This year's completed work sets up 2026 for an early season start and the potential for high production and significant and lasting potential revenue through royalty payments to Klondike Gold." — Peter Tallman, President and CEO