Kootenay Resources sells Two Times Fred property

On February 10, 2026, Kootenay Resources Inc. (KTRI) announced the sale of its Two Times Fred (2XF) property in British Columbia to a subsidiary of Evolution Mining Ltd., a major gold producer. The consideration includes $1,000,000 CAD in cash and a 2% Net Smelter Return (NSR) royalty. Evolution holds a "Buy-Down Option" to purchase 1% of the NSR for $3,000,000 CAD prior to commercial production. If exercised, Kootenay is required to use part of the proceeds to extinguish a pre-existing 2% underlying NSR (held by the Kennedy Group), which would leave Kootenay with a clean 1% NSR.

• Liquidity Infusion: This is a material positive for KTRI's balance sheet. As of September 30, 2025, the company held only $51,322 in cash. The $1,000,000 injection represents nearly 30% of the company's current market capitalization and provides a significant non-dilutive runway for its flagship Moyie Anticline project.
• Strategic Validation: Partnering with Evolution Mining—a $10B+ market cap producer—validates the geological potential of the Nechako Plateau assets which were previously dropped by Centerra Gold in 2023.
• Asset Rationalization: KTRI is successfully transitioning from a "holder" of exploration ground to a "royalty generator" on secondary assets, allowing management to focus capital on the Moyie project.
• Underlying Obligations: The "Material Positive" is slightly tempered by the disclosure that KTRI must extinguish a pre-existing 2% NSR if the buy-down is exercised. Per financial notes, buying out the Kennedy Group royalty typically costs $500,000 per 0.5% ($2M total for 2%).

Kootenay Resources is a Canadian explorer focused on "Tier 1" discoveries in British Columbia. - Flagship Project: Moyie Anticline Project (Purcell Basin). It is prospective for Sullivan-style Sedex (Ag-Zn-Pb) and Revett-type copper-silver deposits. The project covers over 33,000 hectares with 12+ defined targets based on ZTEM and MT geophysical surveys. - Secondary Focus: Generative gold-silver-copper projects in the Nechako Plateau (Copley, SMK, and the now-optioned 2XF).