Metalquest completes due diligence of West Cameron

Executive Summary

• Metalquest Mining Inc. has completed technical due diligence and formally elected to proceed with its option agreement to acquire a 100% interest in the West Cameron gold project in the Kenora Mining District, Northwestern Ontario.
• The acquisition is subject to a 2% Net Smelter Return (NSR) royalty and requires a series of cash payments and share issuances, with share prices based on a 10-day trading average (minimum $0.2475/share).
• The project is located adjacent to First Mining Gold Corp.'s Cameron gold project (recently acquired by Fiore Group) and features historical surface sampling up to 9.18 g/t Au, with a planned 2026 exploration program including drilling.

Key Details

• Transaction Structure: Metalquest exercises its option to acquire 100% interest in the West Cameron gold project from Gallik Explorations Inc. (wholly owned by Troy Gallik).
• Royalty Terms: The company must pay a 2% Net Smelter Return (NSR) to earn the full interest.
• Consideration: Earn-in involves a series of cash payments and share issuances.
  • Share issuance price: Based on a 10-day trading average prior to issuance.
  • Minimum deemed issue price: $0.2475 CAD per share.
• Termination Rights: Metalquest may terminate the agreement any time after the first year's commitments have been completed.
• Regulatory: Subject to TSX Venture Exchange approval and a four-month-plus-one-day hold period.
• Project Location: ~10 km south of Sioux Narrows, ~60 km south of Kenora, Ontario.
• Project Size: Approximately 1,700 hectares (4,200 acres).
• Infrastructure: Year-round road access via Highway 71, logging roads, and established trails.
• Geological Context:
  • Adjacent to First Mining Gold Corp.'s Cameron gold project (acquired by Fiore Group for ~$27M CAD).
  • Gold mineralization hosted in shear zones, quartz-carbonate veining, altered felsic intrusions, and structurally deformed rock units.
  • Interpreted regional Cameron Lake fault trend extends across the property.
  • New porphyry intrusive target identified as a key focus.
• Historical Data:
  • Surface sampling returned gold values up to 9.18 g/t Au.
  • Grab samples from the New Porphyry intrusive target returned up to 1.9 g/t Au.
• 2026 Exploration Plan:
  • Geological mapping, sampling, geophysical surveys, and targeted drilling to validate and expand known mineralization.
  • Engagement with local First Nations communities for collaborative partnerships.
• Adjacent Project Resources (Cameron Lake):
  • Measured/Indicated (Pit-constrained, 0.55 g/t cut-off): 3.5M tonnes @ 2.45 g/t Au (~274,000 oz).
  • Inferred (Pit-constrained, 0.55 g/t cut-off): 35,000 tonnes @ 2.45 g/t Au (~3,000 oz).
  • Measured/Indicated (Underground, 2.00 g/t cut-off): 2.0M tonnes @ 2.90 g/t Au (~190,000 oz).
  • Inferred (Underground, 2.00 g/t cut-off): 6.5M tonnes @ 2.54 g/t Au (~530,000 oz).
• Qualified Person: Troy Gallik, PGeo (Note: Not independent as he is the underlying vendor and a geological consultant to Metalquest).

Notable Quotes

• Harry Barr, Chairman and CEO: "Completing due diligence and proceeding with the West Cameron gold project marks an important step as Metalquest adds a new gold exploration division. The Kenora mining district remains an underexplored but prospective region, and West Cameron gives us an opportunity to advance a structurally favourable project with good access and infrastructure. Our focus will be on disciplined exploration aimed at building long-term value for our shareholders."