Prospect Ridge acquires Camelot Cu-Au project in B.C.

Executive Summary

• Prospect Ridge Resources Corp. has secured a 100% interest in the Camelot copper-gold project in British Columbia’s Cariboo mining district from Orogen Royalties Inc., subject to regulatory approval.
• The project features a significant, untested geophysical anomaly (1,700m x 500m) with a permitted drill program for up to 255 holes, targeting a porphyry system under shallow till cover.
• The acquisition consideration is $200,000 total, payable in cash or shares, with options to buy down existing royalties and future NSR obligations.

Key Details

• Transaction Structure: Prospect Ridge acquires 100% interest in the 2,646-hectare Camelot project (formerly Lemon Lake) from Orogen Royalties Inc.
• Consideration: Total aggregate consideration of $200,000.
  • $25,000 in common shares (based on 10-day VWAP) payable within 5 days of regulatory approval.
  • $175,000 payable in cash or common shares (based on 10-day VWAP) at Prospect Ridge's discretion within 6 months and 2 days of approval.
  • All issued shares subject to a 4-month + 1 day restricted resale period.
• Royalty Terms:
  • Prospect Ridge assumes an existing 1% NSR royalty held by an underlying royalty holder.
  • Prospect Ridge grants a new 1% NSR royalty to Orogen.
  • Option to buy down 0.5% of the underlying 1% NSR for a one-time payment of $1,000,000.
  • Annual advance royalty payment of $10,000 to the underlying holder.
  • One-time payment of $30,000 to the underlying holder upon completion of a NI 43-101 mineral resource.
• Project Location & Infrastructure: Located ~65 km east of Williams Lake, B.C., in the Quesnellia terrane. Area has excellent road access and infrastructure, near producing mines including Gibraltar and Mount Polley.
• Geological Target:
  • Defined by a 1,700m x 500m northeast-southwest composite chargeability-magnetic anomaly.
  • Target is a copper-gold porphyry system under shallow till cover, never previously drill tested in this specific zone.
  • Coincides with anomalous copper in soils, a magnetic high, and strong chargeability anomaly.
  • Inferred area of potassically altered monzonite.
• Drilling Permit: Area-based drill permit allows collaring of up to 255 reverse circulation (RC) and diamond drill holes.
• Historical Data:
  • 1974: Hudson Bay Oil and Gas drilled 11 vertical percussion holes (max depth 61m). Hole PDH74-L04 intersected 0.25% Cu over 21.3m in potassic-altered biotite monzonite. No gold assays or follow-up drilling occurred.
  • 2011: 3-D IP survey outlined a 2,800m x 600m chargeability zone. Historic drilling did not test the core of this anomaly.
  • 2022: Two-hole drill program by previous operator tested margins of the property, missing the primary geophysical target.
• Future Plans: Management intends to test the target aggressively before year-end with exploration partner Equity Exploration Consultants.

Notable Quotes

• Mike Iverson, Chairman: "Today's market challenges have created a rare window to secure high-quality, drill-ready copper-gold projects at attractive valuations. Camelot is exactly the kind of overlooked asset we target -- projects with defined anomalies, permits in place and the potential to deliver a major new discovery."
• Len Brownlie, CEO: "British Columbia has a long history of world-class porphyry discoveries, but the next generation lies under shallow cover where previous explorers stopped looking. Camelot represents a textbook discovery opportunity... We intend to test this target aggressively before year-end... We believe Camelot has the potential to become a cornerstone project in Prospect Ridge's portfolio."
• Paddy Nicol, CEO of Orogen: "The Camelot project contains a fully permitted drill target outlined by the coincidence of anomalous copper in soils, a magnetic high and a strong chargeability anomaly... Orogen maintains its upside exposure to the property through its retained royalty and we are excited to see drill results in the coming months."