Hemlo Mining Corp. Buys Back Royalty Interest Over Past-Producing David Bell Property

Executive Summary

• Hemlo Mining Corp. purchased a 1.5% net smelter return royalty on the past‑producing David Bell property, consolidating its interest over the Hemlo land package.
• The acquisition is presented as an accretive move that enhances economic leverage for upcoming 2026 exploration drilling and future production growth.
• The company plans to test multiple high‑priority targets at David Bell during its 2026 drilling program, leveraging existing infrastructure to extend mine life.

Key Details

• Royalty Purchased: 1.5% NSR covering 17 mineral claims associated with the former David Bell Mine (≈1 km east of current Hemlo operations).
• Historical Production of David Bell Mine: ~4.2 million ounces of gold produced from 1985‑2013; average gold price during that period ≈ US$600/oz.
• Strategic Rationale: Consolidation improves economic leverage, supports exploration investment, and is expected to be accretive to long‑term shareholder value.
• Exploration Plan: Multiple high‑priority targets on the David Bell property will be tested in Hemlo’s 2026 drilling program.
• Leadership Insight: Lead Director Dr. Robert Quartermain brings direct historical drilling experience at David Bell (1982‑84), adding geological insight to the 2026 program.
• Qualified Person: Raphael Dutaut, Ph.D., P.Geo, VP Exploration, reviewed and approved all scientific and technical information per NI 43‑101 standards.

Notable Quotes

“Our 2026 exploration program is designed to unlock new mineralization across the broader Hemlo land package… In parallel, we will continue to consolidate royalty interests within our land package where valuations are compelling.” – Jason Kosec, President & CEO

Materiality Assessment: Material – Positive (royalty acquisition materially impacts economic outlook and exploration strategy).