Shovelnose

The Company cautions that the results of the PEA are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have economic consideration applied to them to be classified as Mineral Reserves. There is no certainty that the results of the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

*Base case parameters of US$2,400 per ounce gold, US$28 per ounce silver and CDN$/US$ exchange rate of $0.72.

*All costs are in Canadian dollars unless otherwise specified.

Robust financial metrics.

• Pre-tax Internal Rate of Return (“IRR”) of 56.3%; After-tax IRR of 43.2%.
• Low All-In Sustaining Cost (“AISC”) of $1,161/ounce (“oz”) (US$836/oz) gold equivalent (“AuEq”).
• Low Cash Cost of $872 oz/AuEq (US$ 628/oz AuEq).
• Pre-tax Net Present Value (“NPV”6%) of $730 million (M) and After-tax NPV of $454M.
• Payback period from start of production year at 1.7 years pre-tax and 2.1 years after-tax.

Low capital-intensive development and operating costs.

• Total Preproduction Capital of $184M.
• Total Life of Mine (“LOM”) Capital Costs of $379M.
• Average operating cost of $142/ tonne processed.
• 92% of total stope mining is cost effective longitudinal and traverse longhole stoping, with only 8% of total mining requiring cut and fill stoping.

11.1-year mine life and ability to expand processing to accommodate satellite discoveries.

• 718,600 total Indicated ounces AuEq underground Mineral Resource Estimate.
• 292,000 total Inferred ounces AuEq underground Mineral Resource Estimate.
• Production rate of 1,000 tonnes per day (“tpd”).
• Total payable metals of 637,000 oz Au and 3,562,000 oz Ag.
• Average annual production of 56,000 oz Au, peaking in year 7 at 68,000 oz Au.
• Total mineralized rock production of 4,159,000 tonnes at 5.26 g/t Au and 32 g/t Ag.
• Metallurgical recoveries of 91.5% Au and 92.9% Ag.

Community/stakeholder benefits.

• Total projected income taxes paid of $284M.
• Total projected British Columbia mineral taxes paid of $163M.
• More than 130 well-paying local full time jobs created during life of mine.
• Additional employment during construction phase.
• Indirect spin-off benefits during both construction and mine operations.

Details of the current underground Mineral Resource Estimates (“MRE’s”) for the South Zone, FMN and Franz deposits, as determined by P&E Mining Consultants Inc. (“P&E”) were reported as part of the 2025 PEA.  The MRE’s were estimated on the basis of a database including, among other information, 355 surface drill holes, totalling 121,971m.  A total of 145 drill holes (50,714m) were intersected by the mineral resource wireframes used in the 2025 PEA.

P&E validated the Mineral Resource database in GEMS™ by checking for inconsistencies in analytical units, duplicate entries, interval, length or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, survey and missing interval and coordinate fields. Some minor errors were identified and corrected in the database.

Block models were constructed using GEOVIA GEMS™ V6.8.4 modelling software and consist of separate model attributes for estimated Au, Ag and AuEq grade, rock type (mineralization domains), volume percent, bulk density, and classification. The Mineral Resource was classified as Indicated and Inferred based on the geological interpretation, variogram performance and drill hole spacing. The QPs also consider mineralization at the South, Franz and FMN Zones to be potentially amenable to underground mining methods. The revised MRE used for the 2025 PEA were reported with an effective date of February 28, 2025 and is tabulated in Table 1.

Table 1 - Shovelnose Underground Mineral Resource Estimate @ 1.3 g/t AuEq Cut-off ^(1-7)

In completing the 2025 PEA, a financial model was developed to estimate the Life of Mine (“LOM”) plan and considered only underground mining of Mineral Resources at the South, Franz and FMN Zones. Other known gold-silver mineralization at the Shovelnose property, currently being evaluated by Westhaven, were not included.

The LOM plan covers a 13.1-year period (2 years pre-production and 11.1 years of production). Currency is in Q1 2025 Canadian dollars unless otherwise stated. Inflation has not been considered in the financial analysis.

The Updated PEA outlines a production mine life of 11.1 years with average annual production of 56,000 ounces gold and 312,000 ounces silver at average respective cash costs and all-in sustaining costs ("AISC") per ounce gold equivalent of $1,161(US$836). The PEA considers the payable recovery of 637,000 oz gold and 3,562,000 oz silver from an underground operation, at average respective mine production grades of 5.26 g/t and 32 g/t.