Prospect Ridge closes Camelot acquisition

Executive Summary

• Prospect Ridge Resources Corp. has closed the acquisition of a 100% interest in the Camelot copper-gold porphyry project from Orogen Royalties Inc., with the transaction deemed accepted by the Canadian Securities Exchange effective September 9, 2025.
• The acquisition involves an initial payment of 243,180 shares (valued at $25,000) and a potential additional payment of $175,000 (cash or shares) within six months, plus a 1% NSR royalty that can be partially bought down for $1 million.
• The company provided strategic exploration updates for its portfolio, including planned geophysical surveys at Castle and Excalibur, and upcoming prospecting/mapping at Knauss Creek and Holy Grail, with the goal of initiating drilling programs in 2026.

Key Details

• Camelot Acquisition Terms:
  • Interest Acquired: 100% interest in the Camelot copper-gold porphyry project.
  • Seller: Orogen Royalties Inc.
  • Initial Payment: 243,180 shares of Prospect Ridge common stock, calculated at a deemed price of 10.2804 cents per share, totaling $25,000.
  • Hold Period: The initial shares are subject to a hold period expiring January 10, 2026.
  • Contingent Payment: An additional $175,000 is payable at the company's sole discretion within six months and two days of the approval date. This payment can be made in cash or common shares based on a 10-day VWAP.
  • Resale Restrictions: All shares issued are subject to a restricted resale period expiring four months plus one day after issuance.
  • Royalty Structure:
    • Prospect Ridge grants Orogen a 1% Net Smelter Return (NSR) royalty.
    • Prospect Ridge has the option to buy down 0.5% of the NSR for a one-time payment of $1 million.
    • Prospect Ridge assumes an annual advance royalty payment of $10,000.
    • A one-time payment of $30,000 is payable to the underlying royalty holder upon completion of a NI 43-101 mineral resource.
• Camelot Exploration Plans:
  • Prospect Ridge intends to conduct a 2,000-metre drill program this fall targeting a well-defined geophysical target.
  • Discussions with qualified drilling contractors are currently underway.
• Castle Project Updates:
  • Completed an approximately 7-line-kilometre induced polarization (IP) survey covering north and west Castle gossan slopes.
  • Completed prospecting and mapping over Castle and Abbey gossans.
  • Scheduled to begin a 500-line-kilometre airborne magnetic survey over the entire project on September 17, 2025.
• Excalibur Project Updates:
  • Line brushing will begin within two weeks to support a 20-line-kilometre IP survey.
  • Survey line spacing is 200 metres, focusing on areas associated with high-copper soil samples from 2019/2021 linked to porphyritic intrusive bodies.
• Knauss Creek and Holy Grail Updates:
  • Field crews are returning for a one-week program of prospecting and mapping to focus on three additional high-priority exploration targets.
  • Operations will be staged from the fully equipped Terrace camp using trucks, ATVs, and helicopter support.
  • Both projects are fully drill permitted and cover a combined land package of 625.5 square kilometres.
• Future Drilling Goals:
  • The objective of initial programs at Castle and Excalibur is to generate high-priority drill targets for a minimum 2,000-metre diamond drill program at each project, targeted for summer 2026 (subject to permitting).

Notable Quotes

• "This acquisition strengthens Prospect Ridge's foothold in a highly prospective copper-gold district and adds another flagship porphyry project to its growing portfolio."