Affinity Metals Enters into Option Agreement to Acquire Discovery Lake Gold Property Located in Ontario

Executive Summary

• Affinity Metals entered a three‑year option agreement to acquire 100 % of the 2,500‑hectare Discovery Lake property in Ontario’s high‑grade gold‑bearing Abram‑Minnitaki Lake Greenstone Belt.
• To exercise the option, Affinity will pay $64,000 in cash and issue 200,000 common shares; the Optionor retains a 1.5 % net smelter return royalty, with an optional purchase of a 0.5 % royalty for $500,000.
• The transaction expands Affinity’s land portfolio into a prolific gold district adjacent to Heritage Mining’s Drayton‑Black Lake project, supporting planned exploration programs.

Key Details

• Property: Discovery Lake, >2,500 ha, located near Sioux Lookout, Ontario, within the Abram‑Minnitaki Lake Greenstone Belt.
• Option Term: 3 years; cash consideration of $64,000 plus issuance of 200,000 common shares.
• Royalty Structure:
• Initial net smelter return royalty retained by Optionor – 1.5 %.
• Affinity may purchase a 0.5 % royalty for $500,000, reducing the Optionor’s royalty to 1.0 %.
• Share Hold Period: Shares issued are subject to a hold period of four months and one day per CSE policies.
• Strategic Rationale: Property lies adjacent to Heritage Mining’s Drayton‑Black Lake project, which has recent broad gold intercepts in quartz veins; the area is known for high‑grade gold deposits (>30 M oz produced historically).
• Future Plans: Affinity intends to commence an exploration program on Discovery Lake “getting boots on the ground” (details pending).

Notable Quotes

“We are excited to expand into this area of Ontario, one of Canada’s, and the world’s, most prolific gold mining regions… The Discovery Lake property itself has highly prospective underlying geology…” – Rob Edwards, President & CEO, Affinity Metals Corp.