Scorpio Gold signs option agreement for Betty East

Executive Summary

• Scorpio Gold Corp. has entered into an option agreement to acquire a 100% interest in the Betty East property, a 32-claim package located in the Manhattan District, Nevada.
• The transaction involves staged cash payments totaling $900,000 USD, the issuance of 950,000 common shares, and $1,000,000 USD in exploration expenditures over five years.
• Upon exercise, the seller retains a 2% Net Smelter Returns (NSR) royalty, which the company may buy back for the value of 500 ounces of gold.

Key Details

• Property Details: The Betty East property consists of 32 unpatented lode mining claims in Nye County, Nevada. It is geologically contiguous with Scorpio Gold’s existing Manhattan district land position, with additional claims staked to create continuous coverage.
• Historical Exploration:
  • Nevada Goldfields Inc. conducted shallow reverse circulation (RC) drilling and trenching in the early 1990s, identifying near-surface gold mineralization at the Knolls area.
  • Sierra Grande Minerals Inc. completed soil geochemical surveys (approx. 290 samples) identifying a pronounced north-south epithermal gold-arsenic-(silver-mercury) signature.
  • High-grade soil results included 6.27 g/t Au, 5.06 g/t Au, 1.19 g/t Au, and 0.69 g/t Au.
  • A subsequent grid outlined a broad, east-northeast-trending zone >1.5 km long and up to 1 km wide, anomalous in arsenic, mercury, silver, antimony, and molybdenum.
• Transaction Terms (Staged Payments):
  • Total Consideration: $900,000 USD in cash, 950,000 common shares, and $1,000,000 USD in exploration expenditures.
  • Payment 1: $30,000 USD + 100,000 shares within 5 days of TSX-V approval.
  • Payment 2: $30,000 USD + 100,000 shares on the first anniversary.
  • Payment 3: $30,000 USD + 150,000 shares + $150,000 USD exploration spend on the second anniversary.
  • Payment 4: $50,000 USD + 150,000 shares + $200,000 USD exploration spend on the third anniversary.
  • Payment 5: $50,000 USD + 200,000 shares + $250,000 USD exploration spend on the fourth anniversary.
  • Payment 6: $710,000 USD + 250,000 shares + $400,000 USD exploration spend on the fifth anniversary.
• Royalty Terms: The optionor receives a 2% NSR royalty. Scorpio Gold retains the right to buy back 1% of the NSR by paying the optionor an amount equal to the value of 500 ounces of 0.999 fine gold.
• Regulatory Status: The agreement is subject to approval by the TSX Venture Exchange (TSX-V).

Notable Quotes

• "The Betty East option meaningfully expands our footprint at the southern end of the Manhattan district and gives us control of a highly prospective and underexplored part of the camp," said Zayn Kalyan, chief executive officer of Scorpio Gold. "Importantly, we have staked the intervening claims that connect Betty East to our existing claim block, creating continuous land tenure across a favourable geological corridor. This consolidation allows us to evaluate mineralized trends in a district-scale context, integrate historical work with modern exploration methods, and prioritize targets that may complement and extend the broader Manhattan mineral system. We see Betty East as a strategic addition that strengthens our long-term exploration optionality in one of Nevada's most productive gold belts."