Val-d'Or grants option on Recession Larder prospect

Executive Summary

• Val-D'Or Mining Corp. entered into a mining option agreement with Gold Candle Ltd. to acquire a 100% interest in the Recession Larder prospect in Northeastern Ontario.
• The transaction involves an initial cash payment of $100,000, followed by $100,000 payments on the first and second anniversaries, plus $1 million in exploration expenditures over three years.
• Upon exercise, Val-D'Or retains a 2% Net Smelter Return (NSR) royalty and a back-in right to reacquire a 20% interest via joint venture upon the publication of a mineral reserve estimate.

Key Details

• Parties: Val-D'Or Mining Corp. (Optionor) and Gold Candle Ltd. (Optionee, arm's-length party).
• Asset: Recession Larder prospect, consisting of 14 contiguous mining claim cells totaling approximately 121 hectares in McGarry township, Northeastern Ontario.
• Location: Approximately 1.8 km northwest of the past-producing Kerr-Addison mine at Virginiatown.
• Financial Consideration:
  • $100,000 payable upon signing the option agreement.
  • $100,000 payable on the first anniversary of the agreement.
  • $100,000 payable on the second anniversary of the agreement.
  • $1,000,000 in aggregate expenditures to be incurred by the optionee over a three-year period.
• Royalty Terms: Upon acquiring a 100% interest, the optionee grants Val-D'Or a 2% Net Smelter Return (NSR) royalty.
• Back-In Right:
  • Val-D'Or has the right to reacquire a 20% interest in the property within 90 days of the optionee publishing an estimate of mineral reserves (per CIM definition).
  • Exercise triggers a joint venture agreement (80% Optionee / 20% Val-D'Or), with the optionee as manager/operator.
  • Upon exercising the back-in right, Val-D'Or surrenders the 2% NSR.
  • The optionee may purchase the back-in right for a one-time payment of $1,000,000 at any time prior to the publication of a mineral reserve estimate.
• Property History & Geology:
  • Geology: East-northeast-striking band of felsic to intermediate volcanic rocks (trachytes/agglomerates) in contact with Temiskaming sediments, along the South limb of the Ivan Larder fault.
  • Mineralization: Associated with secondary faults trending east-northeast; confined to trachytic units via quartz veins and flat-lying small quartz stockworks.
  • Historical Work: First work in 1939 (Drummond) included 3 drill holes and 2 shallow shafts, reporting values up to 1.33 oz/t Au. Subsequent work included geophysical surveys (2013) and prospecting (2014 and later years).
• Contextual Data (Kerr-Addison Mine):
  • Gold Candle acquired the Kerr-Addison property in 2015.
  • 2025 Mineral Resource Estimate:
    • Indicated: 3.31 Moz Au at 1.5 g/t in 69.2 Mt.
    • Inferred: 2.36 Moz Au at 1.3 g/t in 55.6 Mt.
  • 2026 Plan: 120,000-metre drill program using nine diamond drill rigs for resource expansion and exploration.
  • Historical Production: Kerr-Addison and Chesterville mines produced >11 Moz Au total (Kerr-Addison: 35.3 Mt @ 9.1 g/t; Chesterville: 2.96 Mt @ 3.8 g/t).

Notable Quotes

• "Michael Rosatelli, MSc, PGeo, senior geological consultant and the vice-president, exploration, of the company, is a qualified person as defined by National Instrument 43-101. Mr. Rosatelli has verified the referenced data disclosed in this press release and has approved the technical information presented herein."