The Cape Spencer Project is subject to three separate option agreements on the Cape Spencer, Armstrong, and Marigold Properties, as detailed below, whereby the Company can earn a 100% interest in the mineral rights.

The Cape Spencer Property includes a total of 104 mineral claim units covering 2,365 hectares of land acquired via either staking and or under terms of the Cape Spencer Option Agreement. Under the Cape Spencer Option Agreement, the Company can earn a 100% interest in the property by paying a total of $350,000 in cash (of which $225,000 has been paid) and $145,000 in milestone payments based on certain exploration activities (of which $50,000 has been paid) in cash or equivalent value shares over a seven-year period ending August 9, 2025. The Company has also satisfied its commitment under the agreement to complete $400,000 in exploration expenditures within the first four years. A 2% NSR is payable with one percent of the NSR purchasable for $1,000,000 and a right of first refusal on the remaining 1% NSR.

On August 15, 2020, the Company acquired the option to earn a 100% interest in the Marigold Property, which consists of 4 mineral claims (88 units, 1,998 hectares) by paying a total of $95,000 in cash (of which $35,000 has been paid) and issuing $105,000 in cash or equivalent-value common shares over a 4-year period (of which $45,000 has been paid). The Property is subject to a 2% NSR with 1% purchasable by the Company for $1,500,000 and right of first refusal on the remaining 1% NSR.

On August 15, 2020, the Company acquired the option to earn a 100% interest in the Armstrong Property, which consists of 1 mineral claim (30 units, 682 hectares) by paying a total of $45,000 (of which $25,000 has been paid) and issuing $45,000 in cash or equivalent value common shares over a 3-year period (of which $25,000 has been paid). The Property is subject to a 2% Gross Metal Royalty (“GMR”) with 1% purchasable for $1,000,000 and right of first refusal on the remaining 1%.