Western Star signs option for Rowland tungsten project

Mr. Blake Morgan reports WESTERN STAR RESOURCES ANNOUNCES ACQUISITION OF AN OPTION TO ACQUIRE A PAST PRODUCING TUNGSTEN PROJECT IN NEVADA Western Star Resources Inc. has entered into an agreement to acquire the past-producing Rowland project, located in the Jarbidge mining district of Nevada. Key highlights from past-producing Rowland property: High-grade tungsten project with values of 3.38 per cent WO3 (tungsten trioxide) reported; A road-accessible, past-producing mine, located in the historical Jarbidge mining district, located about six miles southwest of Jarbidge; Rocks exposed in the area are limestones, shales and quartzites intruded by a quartz monzonite stock; adjacent to the intrusive, the shales and limestones have been extensively metamorphosed to skarn and hornfels in zones as much as 100 feet wide; Mine workings consist of two shallow shafts and several hundred feet of open cuts; Scheelite occurs as coarse crystals and is also finely disseminated with molybdenite, powellite, pyrite, chalcopyrite and limonite in a garnet, epidote, quartz and calcite skarn; In 1943, W.J. Rowland shipped 4.5 tons of ore containing 3.38 per cent WO (tungsten oxide) to Metals Reserve Co.; During 1954 to 1956, about 1,000 tons of ore containing 0.5 to 1.0 per cent WO were produced. Why the past-producing Rowland property is a strategic asset: Critical mineral status: Tungsten is indispensable for the defence, aerospace, energy and semiconductor industries. The United States currently has no domestic commercial production, making it highly dependent on imports, with approximately 85 per cent of global supply controlled by China. Exploration upside: Identified in the 1940s, this project has identifiable mineralization but remains underexplored using modern exploration techniques. Alignment with U.S. policy: Recent executive orders prioritize fast-tracking domestic tungsten projects, with federal grants and defence-sector support available for qualifying assets. "As I stated previously, securing a domestic source of tungsten is not just a business opportunity; it's a matter of national importance," said Blake Morgan, chief executive officer of Western Star. "The acquisition of the past-producing Rowland property aligns perfectly with Western Star's mission to deliver value to shareholders while supporting U.S. government priorities to strengthen domestic supply chains for critical minerals. "The in-depth due diligence exceeded expectations of our view that the past-producing Rowland property represents a unique and timely opportunity," said Mr. Morgan. "This asset not only complements our flagship drill-permitted green metals project in Canada but also positions us at the heart of U.S. efforts to rebuild domestic supply chains for critical minerals. We plan to get crews out on the ground as soon as possible to start with geophysics, channels sampling and mapping. The goal with the first phase of exploration is to get the project to a drill-ready stage, ready for its maiden program early next year." The past-producing Rowland property directly aligns with recent U.S. government directives to secure a domestic tungsten supply, a resource classified as critical to national security. With no U.S. commercial production since 2015 and global supply dominated by China (approximately 85 per cent), companies such as Western Star Resources are poised to benefit from government support, fast-track permitting and defence-sector demand. Transaction summary Under the agreement, Western Star will acquire all of the rights, title and interest in and to the underlying option agreement. Total consideration Total consideration for the assignment of the option totals $60,000 and one million common shares of Western Star Resources, payable as follows: Initial payment: $20,000 non-refundable, payable within five business days of signing this agreement; Deferred payment: $40,000, payable upon receipt of conditional approval of the transaction by the Canadian Securities Exchange; Share issuance: one million fully paid and non-assessable common shares of Western Star Resources upon closing. Deferred milestone consideration In addition to the upfront consideration, Western Star shall issue or pay the following upon satisfaction of performance milestones: Milestone 1: Upon (i) increasing the total claim area by 30 per cent or more; and (ii) identifying at least three rock-chip samples grading above 2.0 per cent WO, Western Star shall issue 500,000 Western Star shares valued at the 10-day VWAP (volume-weighted average price) immediately preceding verification. Milestone 2: Upon completing drilling or trenching intersecting mineralization of at least 10 metres averaging 0.7 per cent WO, Western Star shall issue one million Western Star shares valued at the 10-day VWAP immediately preceding verification. Milestone 3: Upon completing and filing a National Instrument 43-101- or JORC-compliant resource estimate defining at least five million tonnes at greater than or equal to 0.7 per cent WO, Western Star shall pay $500,000 in either cash or Western Star shares, at the company's election. All milestone verifications will be confirmed by an independent third party expert mutually agreed upon by both parties. The deferred consideration shall be paid within 30 days of verification of the milestone by an independent third party expert mutually agreed upon by the parties. Net smelter return (NSR) royalty The vendors shall retain a 1.5-per-cent NSR royalty on the property, with Western Star having the right to buy back 1.0 per cent for $1-million at any time. The NSR royalty shall constitute a contractual obligation of Western Star until such time as legal title to the property is acquired. The deferred consideration shall be paid within 30 days of verification of the milestone by an independent third party expert mutually agreed upon by the parties. The vendor acknowledges that the consideration shares will be subject to restrictions on resale prescribed by applicable securities laws and the policies of the TSX Venture Exchange and that these restrictions will limit the ability to trade the consideration shares for a period of four months and one day from the date of issuance. In addition to the foregoing, the optionors acknowledge and agree that: (i) the consideration shares issued upon closing will be subject to a four-month resale restriction expiring four months from the date of issuance; and (ii) the consideration shares issued on or before the four-month anniversary of the closing will only be subject to the four-month-and-one-day period from the date of issuance resale restriction. Underlying option Option to earn 100-per-cent interest in the Rowland property: $15,000 (U.S.) on or before July 1, 2026; $15,000 (U.S.) on or before July 1, 2027; $20,000 (U.S.) on or before July 1, 2028. Upon completion of these payments, Western Star may exercise its option to acquire a 100-per-cent interest in the property, subject to the 0.5-per-cent production royalty. Derrick Strickland is a non-independent and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has reviewed and approved the scientific and technical information contained in this news release. About Western Star Resources Inc. Western Star is a junior mining company advancing its flagship gold and silver project in Canada while expanding into the United States with a focus on strategic critical minerals. With a commitment to responsible exploration and development, the company is building a portfolio of assets aligned with U.S. government priorities to secure domestic supplies of minerals essential for defence, energy and advanced manufacturing.