Sorrento Resources expands Rodgers Cove project

Executive Summary

• Sorrento Resources Ltd. entered into a mineral property purchase agreement to acquire a 100% undivided interest in seven additional mineral licenses (52 individual claims) for its Rodgers Cove project in Newfoundland and Labrador.
• The acquisition expands the combined project to 11 mineral licenses, 151 individual claims, and approximately 3,775 hectares.
• Consideration for the transaction includes $5,000 in cash, 150,000 common shares, and a 2% Net Smelter Return (NSR) royalty, with an option to buy down 1.5% of that royalty for $1 million.

Key Details

• Transaction Structure: Mineral property purchase agreement dated August 26, 2025.
• Asset Acquired: Seven mineral licenses comprising 52 individual claims, totaling approximately 1,300 hectares.
• Vendor Status: The vendor deals with the company at arm's length.
• Consideration:
  • $5,000 in cash.
  • Issuance of 150,000 common shares of Sorrento Resources.
  • Grant of a 2% Net Smelter Return (NSR) royalty on the additional claims.
  • Option for the company to purchase 1.5% of the NSR royalty for a total of $1 million.
• Post-Transaction Project Size: The Rodgers Cove project now consists of 11 individual mineral licenses, 151 individual claims, and approximately 3,775 hectares.
• Closing Conditions: Subject to receiving all necessary consents and approvals and satisfaction of customary closing conditions.
• Securities: All securities issued are subject to a statutory hold period of four months and one day from issuance.
• Fees: No finders' fees are payable.
• Geological Context: The property is situated on the eastern edge of the Dunnage zone within the Exploits subzone (Central Newfoundland Gold Belt). It straddles the JBP and Appleton faults, associated with hydrothermal epigenetic gold veining. The area features altered granodiorite-hosted mineralization linked to quartz veining and arsenopyrite.
• Exploration History: Limited exploration has been undertaken; the property has never been diamond drilled. Recent trenching yielded encouraging results, including 115.6 g/t gold over one meter.

Notable Quotes

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