Exploits investor Sprott enters support deal

Executive Summary

• Eric Sprott’s company, 2176423 Ontario Ltd., has entered into a voting and support agreement with New Found Gold Corp. to support the proposed acquisition of Exploits Discovery Corp.
• The transaction involves New Found Gold acquiring all of Exploits' mineral claims in central Newfoundland under a definitive property purchase agreement dated September 7, 2025.
• Exploits will receive 2,821,556 common shares of New Found Gold (valued at $7 million) and a 1.0% net smelter return royalty on specific claims.

Key Details

• Transaction Structure: New Found Gold Corp. is acquiring all mineral claims of Exploits Discovery Corp. in central Newfoundland.
• Consideration for Exploits:
  • Equity: An aggregate of 2,821,556 common shares of New Found Gold.
  • Valuation Basis: The share consideration is valued at $7 million, based on the 20-day volume-weighted average trading price of New Found Gold common shares as of the purchase agreement date (Sept. 7, 2025).
  • Royalty: A 1.0-per-cent net smelter return (NSR) royalty on the Bull's-eye and Gazeebow (North and South) claims, as well as Exploits' claim block west of Keats West.
• Voting Agreement:
  • 2176423 Ontario Ltd., beneficially owned by Eric Sprott, agreed to vote all of its Exploits common shares in favor of the proposed transaction at any special meeting of shareholders.
  • 2176423 Ontario holds 25,154,070 Exploits common shares, representing approximately 13.6% of the outstanding common shares.
• Future Intentions: Mr. Sprott holds the shares for investment and to support the transaction. He may acquire additional Exploits securities or sell existing ones depending on market conditions, plan reformulation, or if the transaction fails to proceed.
• Regulatory Filings: An early warning report regarding 2176423 Ontario’s holdings will be filed on Exploits Discovery's profile on SEDAR+.

Notable Quotes

• None explicitly quoted in the text, but the intent is clearly stated: "Mr. Sprott holds the common shares for investment purposes and to support the proposed transaction..."