San Lorenzo starts drilling at Salvadora

Executive Summary

• San Lorenzo Gold Corp. has commenced drilling at its Cerro Blanco porphyry target on the Salvadora property in Chile, targeting geophysical anomalies identified in a June 2025 survey.
• The company closed a second credit facility providing up to $1 million in additional funding, approved by the TSX Venture Exchange, with proceeds designated for the ongoing drilling program.
• The credit facility is a related-party transaction involving a company linked to a director, carrying an 8% interest rate and conversion options at 35 cents per share, subject to a one-year hold period.

Key Details

• Drilling Operations:
  • Commenced on Oct. 11, 2025, at the Cerro Blanco porphyry target.
  • Located on the Salvadora property in Chile.
  • Currently drilling the first of three planned holes.
  • Targets strong geophysical anomalies from an expanded induced polarization survey reported on June 17, 2025.
  • Company intends to provide continuing updates, including assay results.
• Financing Details (Second Credit Facility):
  • Amount: Up to $1 million.
  • Status: Closed with final TSX Venture Exchange approval.
  • Use of Proceeds: To finance the recently commenced drilling program at Salvadora.
  • Lender: A company related to a director of San Lorenzo Gold Corp.
  • Interest Rate: 8% per annum.
  • Maturity: July 31, 2027 (upon full draw, advances convert to a term loan).
  • Conversion Terms: Convertible at the lender's option into common shares at a price of 35 cents per share until maturity.
  • Restrictions: Contractual hold period of one year from issuance date for converted shares.
  • Fees: No bonuses, finders' fees, or commissions paid.
• Regulatory & Governance (MI 61-101):
  • Deemed a related party transaction as the lender is related to an insider.
  • Exempt from formal valuation and minority shareholder approval requirements under MI 61-101 (subsections 5.5(c) and 5.7(1)(b)) because the fair market value and consideration did not exceed $2.5 million.
  • Unanimously approved by the board of directors, with the related director abstaining from voting.
  • Share Impact: If fully drawn and converted, plus the first credit facility, a total of 7,857,143 common shares would be issued, representing 9.0% of then issued and outstanding shares.
  • Current Holdings: Lender currently holds 50,000 common shares and no options.

Notable Quotes

• None provided in the text.