New Break awaits assays after completing Moray drilling

Executive Summary

• New Break Resources Ltd. completed a maiden diamond drilling program at its 100%-owned Moray gold project in Ontario, totaling six holes and 1,502 meters, though assay results are currently pending.
• The company provided an update on the sale of its Sundog gold project to Guardian Exploration Inc., noting that Guardian has received regulatory approval for a planned summer 2025 exploration program.
• New Break sold exploration data for its Esker gold project to Guardian for $20,000 and one million common shares, bringing its total holding of Guardian shares to six million, valued at approximately $840,000.

Key Details

• Moray Gold Project Drilling:
  • Location: 49 km south of Timmins, Ont., and 32 km northwest of the Young-Davidson gold mine (operated by Alamos Gold Inc.).
  • Program Duration: July 12, 2025, to August 14, 2025.
  • Contractor: Enviro North Exploration Inc.
  • Scope: Six drill holes completed for a total of 1,502 meters.
  • Status: Assays are pending.
  • Strategy: New Break is focusing current exploration efforts entirely on the Moray property and nearby mineral claims in Ontario.
• Sundog Gold Project Update:
  • Transaction: Sold to Guardian Exploration Inc. effective April 30, 2025.
  • New Break Interest: Option to repurchase 20% of the project at any time for $1.
  • Guardian Obligations: Responsible for 100% of exploration expenditures and meeting obligations of the mineral exploration agreement.
  • Regulatory Status: Guardian submitted an application to the Nunavut Planning Commission (NPC) on May 24, 2025, for a summer 2025 exploration program. The NPC approved the program on June 20, 2025, indicating no additional review by the Nunavut Impact Review Board was required.
  • Next Steps: Exploration program expected to be undertaken in the near future.
• Esker Gold Project Data Sale:
  • Counterparty: Guardian Exploration Inc.
  • Consideration: $20,000 cash payment and 1,000,000 common shares of Guardian.
  • Total Guardian Holdings: 6,000,000 common shares (5 million from Sundog sale + 1 million from Esker data sale).
  • Valuation: Current value of Guardian shares held is $840,000.
  • Nunavut Interest: New Break has no further interest in projects or mineral claims in Nunavut other than the 20% carried interest in Sundog.
• Qualified Person: Peter C. Hubacheck, PGeo, consulting geologist, reviewed and approved the technical disclosure.

Notable Quotes

• "New Break has decided to focus its current exploration efforts entirely on its Moray property and nearby mineral claims located in Ontario."
• "New Break is pleased to announce that it has sold certain exploration data with respect to the Esker gold project and surrounding areas in Kivalliq, Nunavut, to Guardian in exchange for a cash payment of $20,000 and one million common shares in the capital of Guardian."