Torex Completes its Option of Medicine Springs; Northern Lights Retains 1% Royalty

Executive Summary

• Torex Gold Resources Inc. exercised its option to acquire 100% of the Medicine Springs project in Nevada, leaving Northern Lights Resources Corp. with a 1 % NSR royalty (potentially reducible to 0.5 % upon payment of US$2.5 million).
• The royalty provides Northern Lights continued exposure to future production without additional capital commitments.
• The Medicine Springs project hosts multiple mineralization styles (silver, lead, zinc, copper, gold) identified through historic drilling.

Key Details

• Option Exercise: Torex Gold Resources Inc. completed its option to purchase the entire Medicine Springs property.
• Royalty Retention: Northern Lights retains a 1 % Net Smelter Return royalty on all future production from the project.
• Buydown Provision: The royalty can be reduced to 0.5 % if Torex pays US$2.5 million to Northern Lights.
• Project Geology: Historical exploration revealed potential for silver, lead, zinc, copper, and gold within carbonate replacement, porphyry, and skarn mineralization styles.
• Management Comment: CEO Luka Capin highlighted the strategic benefit of retaining a royalty while focusing on core assets.
• Qualified Person: Steven McMullan, P.Geo., reviewed and approved the technical information in accordance with NI 43‑101.

Notable Quotes

“Medicine Springs has come a long way since the Company originally optioned the property in 2017… Retaining a royalty interest allows Northern Lights shareholders to benefit from the long‑term potential of the project while we remain focused on advancing our core assets.” – Luka Capin, CEO, Northern Lights Resources Corp.