Lux Metals signs option for La Grande project in Quebec

Executive Summary

• Lux Metals Corp. has entered into an option agreement to acquire a 100% interest in the La Grande high-grade gold project in Quebec from La Pulga Mining Corp.
• The transaction requires a minimum private placement financing of $2 million and the issuance of shares to La Pulga, capped at 19.9% of outstanding shares post-issuance.
• Additional share issuances are triggered if Lux defines mineral resources of 500,000 oz and 2,000,000 oz gold equivalent, subject to the 19.99% ownership cap.

Key Details

• Transaction Structure: Option agreement dated Nov. 10, 2025, to acquire 100% undivided interest in the La Grande project.
• Target Asset: La Grande Project, located in the James Bay region of Quebec, transected by the all-season Transtaiga Road, ~80 km east of Radisson.
• Property Size: 15,357 hectares across two exclusive exploration right (EER) blocks, covering >40 km of prospective Archean greenstone belt.
• Infrastructure: Year-round road access; proximity to hydroelectric power (La Grande-4 station) and service centers in Radisson.
• Historical Drilling Results (Virginia Gold Mines, 1995-2015):
  • 253 diamond drill holes totaling 52,472 metres completed.
  • Notable intercepts include:
    • 83.8 m at 7.95 g/t Au (LGS97-98)
    • 38.5 m at 4.32 g/t Au (LGS98-125)
    • 56.0 m at 2.73 g/t Au (LGS97-83)
    • 36.0 m at 3.37 g/t Au (LGS97-103)
    • 47.4 m at 2.06 g/t Au (LGS01-170)
    • 37.0 m at 1.93 g/t Au (LGS12-224)
  • Mineralization extends from surface to ~300m depth with excellent continuity.
• Financing Requirement: Private placement of not less than $2 million to earn initial interest.
• Equity Consideration:
  • Initial issuance: Shares equal to 19.9% of outstanding shares post-financing.
  • Milestone 1: 4 million shares if NI 43-101 technical report demonstrates ≥500,000 oz AuEq resources.
  • Milestone 2: Additional 4 million shares if NI 43-101 technical report demonstrates ≥2,000,000 oz AuEq resources.
  • Cap: No shares issued if La Pulga would hold >19.99% of issued and outstanding shares.
• Royalties: Subject to underlying royalties of 4%.
• Board Rights: La Pulga has the right to designate one board nominee (Jean-Felix Lepage) while holding ≥5% of shares.
• Right of First Refusal: La Pulga holds ROFR on any sale/transfer of project rights.
• Regulatory Status: Subject to TSX Venture Exchange acceptance; constitutes a reviewable transaction as it is not arm's-length (Mr. Lepage is CEO/Director of La Pulga and a Lux director).
• Termination: La Pulga may terminate if TSX-V approvals are not obtained within 60 days or if the option is not exercised within 120 days of TSX-V acceptance.
• Next Steps: Lux has digitized historical data (lidar, orthophotography, geophysics) to generate drill targets.

Notable Quotes

• "La Grande represents a rare opportunity to secure a district-scale land package in a proven gold belt. With multiple mineralized zones and a fertile regional shear system extending across the property, the project offers significant discovery potential. Our exploration strategy will target high-grade zones both down plunge from historical drilling and along untested surface targets along the broader 40-kilometre gold trend." — Carl Ginn, President and CEO of Lux Metals