Geological Setting and Mineralization

The Charlotte property shares a similar geological setting and mineralization
style & tenor as Klaza

Charlotte Property is adjacent to the Klaza Project (Rockhaven Resources Inc.)

2020 positive PEA for Klaza contemplates production of 750,000 oz Au & 13.8M oz Ag over 12 years
Updated 2018 Mineral Resources at Klaza (open pit & underground)
Indicated Resources: 4.5 Mt @ 4.8 g/t gold & 98 g/t Ag
Inferred Resources: 5.7 Mt @ 2.8 g/t gold & 76 g/t Ag

Note: The PEA for Klaza is available at rockhavenresources.com. The PEA is preliminary in nature and includes inferred Mineral Resources that are too speculative geologically to have the economic consideration applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results of the PEA will be realized. The information presented for the Klaza project cannot be verified and is not necessarily indicative of the mineralization on the Charlotte property.*

Host Rocks

Paleozoic metamorphic rocks intruded by several plutonic suites and related volcanic rocks

Two styles of mineralization

Structurally-controlled precious metal epithermal veins & breccias
Quartz carbonate gangue mineralogy
Sulphides include pyrite, galena, sphalerite, chalcopyrite, arsenopyrite, stibnite and lesser oxides & carbonates
Cu-Au porphyry mineralization

Webber Zone

Two main vein structures – variable dip to southwest
Explored for over 500 m strike length through trenching, drilling, and underground development
Gold is associated with arsenopyrite and lesser stibnite
17 distinct mineralized zones up to 1 m in width with grades of approximately 14.1 g/t gold and 917 g/t silver
Mineralized zones or rods measure 25 m in horizontal strike length and up to 100 m along plunge

Huestis Zone

Three main NNW striking quartz-sulphide vein structures
Quartz vein system dips steeply to the east-northeast
Vein width from 0.3 m to 2.0 m – average is approximately 1.0 m
Total of sixteen mineralized zones have been identified underground
Mineralized zones vary from approximately 10 m to 50 m of exposed strike length (average of 27 m) and average 1.0 m width
Mineralization similar to Webber with average grade in mineralized zones about 19.4 g/t gold and 442 g/t silver

Flex Zone

Four main sub-parallel quartz-sulphide veins dipping steeply to the west
Delineated over strike length of 550 m
Open at depth, down plunge, and along strike to the north and south
Veins range from 5 cm to 1.1 m thick – extensive silicification extends precious metal values up to 7 m width

Flex Zone Drilling

2010: 1442.82 m in 14 holes
2011: 3607.00 m in 22 holes

2012: 1883.46 in 6 holes

In addition, there are 74 historical drill holes in the
Flex Zone from 1960s to 1990s

Significant drill intersections include:

9.22g/t gold and 489.67 g/t silver over 29.05 m (apparent width) from 24.30 – 53.35 m in DDH 11-257

4.26 g/t gold and 73.97 g/t silver over 4.08 m (apparent width) from 184.46 – 188.54 m in DDH 12-278

51.5 g/t gold and 780.56 g/t silver over 1.4 m (apparent width) from 144.87 – 146.27 m in DDH 12-280

25.93 g/t gold and 1,305.44 g/t silver over 1.76 m (apparent width) from 194.44- 196.2 m in DDH 12-280

Most recent drilling in 2012 extended Flex Zone mineralization to the west, south, to depth, and down plunge. Mineralization remains open in all directions

Metallurgy

Various metallurgical studies (1960s to 1980s) focused primarily on flotation, gravity, and cyanidation of mineralization.
Historical metallurgical test work is considered preliminary; oxide/sulphide distribution and optimal processing alternatives are not fully understood.
The most recent metallurgical testwork is thirty years old.
Rockhaven Resources Ltd. have conducted comprehensive metallurgical testwork on their adjacent Klaza project, which has similar geology and mineralogy to Charlotte.
In their recent (2020) PEA, Rockhaven contemplates three separate concentrates:
- A gold-rich lead concentrate would undergo leaching to extract the gold
- The zinc concentrate could be shipped directly
- The arsenopyrite/pyrite concentrate could be processed on-site or sold to a
  third party

9,300 Multi-element soil samples

Most collected at 50 m intervals along 100 m spaced NE oriented lines
Covers most of the property

Many significant multi-station anomalies largely untested

The Charlotte property shares a similar geological setting and mineralization style & tenor as Klaza