Trans Canada Gold Enters into an Option Agreement with Bear Mountain Gold Mines to Acquire a 60% Interest in the Harrison Lake District Scale Gold Property, with $10.0 Million Dollars in Prior Exploration Expenditures

Executive Summary

• Trans Canada Gold Corp. entered a five‑year option agreement to acquire a 60 % interest (subject to a 2 % NSR royalty) in the Harrison Lake Gold Property from Bear Mountain Gold Mines, with cash payments, share issuances and staged exploration expenditures totaling up to $5 M CAD.
• The company simultaneously announced a non‑brokered private placement of 10 million units at $0.15 per unit, targeting gross proceeds of up to $1.5 M CAD to fund the option agreement, initial acquisition costs, year‑1 and year‑2 exploration, and general working capital.
• Historical drilling on the property indicates a historic resource estimate of ~220,000 oz gold (Jenner & Portal zones) with several high‑grade intercepts (e.g., 102 m @ 3.54 g/t Au; 7 m @ 21.4 g/t Au).

Key Details

• Option Agreement Terms
• Total cash payable to BMGM: $250,000 CAD (five installments of $50,000 each).
• Share issuances to BMGM: 10,000,000 common shares (in five tranches of 2,000,000 shares).
• Exploration expenditures required over 5 years: $4,500,000 CAD (scheduled as detailed in the release).
• Initial payment of $50,000 and 2,000,000 shares is firm‑committed regardless of exercise.

• Option subject to TSX‑V approval and completion of financing.

• Financing – Private Placement

• Units: 10,000,000 (each unit = 1 common share + 1 warrant).
• Price per unit: $0.15 CAD → gross proceeds up to $1,500,000 CAD.
• Warrants exercisable at $0.30 per share for three years.
• Finder’s fee: 6 % cash of gross proceeds plus warrants equal to 6 % of units sold.

• Hold period: four months from issuance; subject to TSX‑V approval and securities law exemptions.

• Use of Proceeds

• $50,000 – due diligence & acquisition costs for the Harrison Lake Property.
• $50,000 – initial cash payment under the option agreement.
• $600,000 – Year 1 exploration expenditures (incl. underground rehab, drilling, logging).
• $600,000 – Reserve for Year 2 exploration and additional acquisition costs.

• $200,000 – General working capital.

• Year 1 Exploration Budget (Property)

• Core‑logging facility upgrade: $25,000
• Underground rehab & drill site prep: $100,000
• Minimum 1,000 m underground drilling: $150,000
• ATV trail & drill road upgrades: $50,000
• Minimum 500 m drilling in Hill Zone & Portal Zone: $75,000
• Equipment rentals & consumables: $50,000
• Supervision, assaying & reporting: $50,000

• Contingency: $100,000

• Historical Resource Highlights (Non‑CIM)

• Jenner Zone – Probable + Possible: ~1.8 Mt @ 2.71 g/t Au → ≈156,700 oz Au.
• Portal Zone – Probable + Possible: ~0.66 Mt @ 3.02 g/t Au → ≈63,800 oz Au.

• Not classified as current mineral resource; presented for context only.

• Key Intercepts

• DDH‑84‑52: 102 m @ 3.54 g/t Au (Jenner Zone).
• DDH‑88‑76: 7 m @ 21.4 g/t Au.

• DDH‑88‑121: 9 m @ 13.5 g/t Au (requires deeper drilling).

• Management & Technical Personnel

• Tim Coupland – President & CEO (quoted on acquisition rationale).
• Michael Magrum, P.Eng – Exploration Manager; Qualified Person under NI 43‑101, responsible for technical oversight of the property and upcoming drilling program.

Notable Quotes

“We are acquiring the Harrison Lake Gold project with over $10 million dollars in prior drilling and exploration expenditures, and a 220,000 oz historic gold resource… we are entering a long‑term precious metals super‑cycle.” – Tim Coupland, President & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the company’s filings.