McFarlane Lake closes sale of High Lake, West Hawk Lake

Executive Summary

• McFarlane Lake Mining Ltd. has closed the sale of its High Lake and West Hawk Lake properties to Total Metals Corp. for total consideration of $9.25 million.
• The transaction is structured as $7.25 million in cash and 3,333,333 common shares of Total Metals Corp., valued at a deemed price of $0.60 per share.
• The sale aligns with McFarlane's strategic shift to focus exclusively on its flagship Juby gold project, strengthening its balance sheet to fund upcoming exploration drilling.

Key Details

• Transaction Value: Total consideration of $9.25 million.
• Consideration Structure:
  • Cash: $7.25 million.
  • Equity: 3,333,333 common shares of Total Metals Corp.
  • Share Valuation: Deemed price of $0.60 per share.
  • Market Context: Total Metals' shares averaged $1.25 on the TSX Venture Exchange over the five trading days ended Oct. 24, 2025.
• Assets Sold: High Lake and West Hawk Lake properties.
• Buyer: Total Metals Corp.
• Strategic Impact: Proceeds will strengthen McFarlane's balance sheet to fund planned drilling at the Juby gold project.
• Juby Project Context:
  • Recent Mineral Resource Estimate (effective Sept. 29, 2025) indicates 1.01 million ounces of gold in the indicated category (0.98 g/t Au) and 3.17 million ounces in the inferred category (0.89 g/t Au).
  • Sensitivity analysis at $3,750/oz gold price indicates 1.20 million ounces indicated and 4.23 million ounces inferred.
• Next Steps: McFarlane has submitted a drill permit application for Juby and is reviewing environmental baseline proposals.

Notable Quotes

• "The monetization of our High Lake and West Hawk Lake properties has significantly strengthened our balance sheet and allows us to focus predominately on advancing the Juby gold project. With planned drilling fully funded and our drill permit application submitted, we're eager to begin drilling and showcasing the opportunity at Juby for resource expansion." — Mark Trevisiol, CEO and Chairman