Cameo to begin drilling at Katoro

Executive Summary

• Cameo Resources Inc. has executed a drilling service agreement with Hetamis Mineral Services Ltd. to initiate its first-ever drilling campaign at the 100%-owned Katoro gold property in Tanzania, targeting 10-15 high-priority drill holes from 80 geophysical targets.
• The company announced a non-brokered private placement of up to $3 million, consisting of 10 million units priced at 30 cents each, with proceeds designated for exploration and working capital.
• Additionally, the company granted 2 million stock options to directors, officers, and consultants, exercisable at 30 cents with immediate vesting.

Key Details

• Drilling Campaign:
  • Target: 10-15 high-priority drill holes in Phase 1, selected from 80 targets generated by recent geophysical exploration.
  • Service Provider: Hetamis Mineral Services Ltd. (Dar es Salam, Tanzania).
  • Timeline: Drilling to commence as early as the first or second week of February.
  • Technical Basis: Targets selected via collaboration with Hetamis and Dr. Didas M. Mabula, based on a technical report using drone-mounted magnetic and induced polarization data.
  • Phase 1 Focus: Northern project area magnetic anomalies with east-west-trending lineaments; coincidental induced polarization anomalies with chargeability readings up to 250 mV/V (indicative of massive to semi-massive sulphide zones).
  • Subsequent Phases: Three remaining areas from the technical report to be tested in future campaigns.
  • Geological Context: Targets mimic mineralized depths at nearby Tembo (7 km NE) and Buckreef (15 km NE) mines. Anomalies are shallow, to a depth of 120 metres.
  • Nearby Sampling: Massive to semi-massive sulphide material sampled from mining operations <1 km from the northern border returned gold values of 238.74 g/t (8.42 oz) and 169.22 g/t (5.97 oz).
• Private Placement:
  • Structure: Non-brokered private placement of up to $3 million.
  • Units: 10 million units at 30 cents per unit.
  • Warrants: Each unit includes one-half of a common share warrant. Each whole warrant is exercisable at 50 cents for two years from closing.
  • Acceleration Clause: Company reserves the right to accelerate warrant expiry if shares trade at or above 60 cents for five consecutive days.
  • Use of Proceeds: Exploration expenses and general working capital.
• Option Grant:
  • Quantity: 2 million options.
  • Recipients: Directors, officers, and consultants.
  • Terms: Exercisable at 30 cents; vest immediately; exercisable for two years.
• Qualified Person: Brian Thurston, PGeo, reviewed and approved the technical information.

Notable Quotes

• "In only 42 months, Cameo has taken unworked virgin ground and scientifically proven that it is a very prospective property to host Buckreef-style gold mineralization. The company has fast-tracked a drill campaign with 10 to 15 priority drill targets proposed for phase 1. The team has proven their commitment to shareholders, quickly delivering on this first ever drilling campaign using modern science as a guide." — Brian Thurston, PGeo