# EDGAR Filing Document

**Accession Number:** 0001263364
**File Stem:** 0001213900-23-005558
**Filing Date:** 2023-1
**Character Count:** 1626181
**Document Hash:** 305d270eb752478784e0b4ae9c8e0a46
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-005558.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0001213900-23-005558

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 126

**CONFORMED PERIOD OF REPORT**: 20230123

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Changes in Control of Registrant

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Amendments to the Registrant's Code of Ethics, or Waiver of a Provision of the Code of Ethics

**ITEM INFORMATION**: Change in Shell Company Status

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Joway Health Industries Group Inc
- **CENTRAL INDEX KEY:** 0001263364
- **STANDARD INDUSTRIAL CLASSIFICATION:** BLANK CHECKS [6770]
- **IRS NUMBER:** 980221494
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-108715
- **FILM NUMBER:** 23560981

**BUSINESS ADDRESS:**
- **STREET 1:** NO 19 BAOWANG ROAD
- **STREET 2:** BAODI ECONOMIC DEVELOPMENT ZONE
- **CITY:** TIANJIN, PRC
- **STATE:** F4
- **ZIP:** 300180
- **BUSINESS PHONE:** 862258896888

**MAIL ADDRESS:**
- **STREET 1:** NO 19 BAOWANG ROAD
- **STREET 2:** BAODI ECONOMIC DEVELOPMENT ZONE
- **CITY:** TIANJIN, PRC
- **STATE:** F4
- **ZIP:** 300180

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** G2 VENTURES INC
- **DATE OF NAME CHANGE:** 20030911

?xml version="1.0" encoding="utf-8"?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **<u>January 23, 2023</u>**

**<u>Joway Health Industries Group Inc.</u>**

(Exact Name of Registrant as Specified in Charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **333-108715** | **98-0221494** |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number)<br>| (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **800 W. Main St, Ste 1460<br> Boise, ID** | **83702** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **702-384-1990**

<u>600 South 3rd Street Las Vegas, Nevada 89101</u> <br> (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

<u>Title of each class</u> <u>Trading Symbol</u> <u>Name of exchange on which registered</u> <br> N/A N/A N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**CURRENT REPORT ON FORM 8-K**

**JOWAY HEALTH INDUSTRIES GROUP INC.**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
| [CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS](#a_001) | [CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS](#a_001) | 1 |
| Item 1.01 | [Entry into a Material Definitive Agreement.](#a_002) | 1 |
| Item 2.01 | [Completion of Acquisition or Disposition of Assets.](#a_003) | 4 |
|  | [The Exchange](#a_004) | 4 |
|  | [Description of Business and Properties](#a_005) | 4 |
|  | [Risk Factors](#a_006) | 19 |
|  | [Financial Information / Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_007) | 24 |
|  | [Security Ownership of Certain Beneficial Owners and Management](#a_008) | 29 |
|  | [Directors, Executive Officers, Promoters and Control Persons](#a_009) | 30 |
|  | [Executive Compensation](#a_010) | 32 |
|  | [Certain Relationships and Related Transactions, and Director Independence](#a_011) | 35 |
|  | [Legal Proceedings](#a_012) | 37 |
|  | [Market Price of and Dividends on Common Equity and Related Stockholder Matters.](#a_019) | 37 |
|  | [Recent Sales of Unregistered Securities.](#M_003) | 37 |
|  | [Description of Registrant's Securities](#M_004) | 37 |
|  | [Indemnification of Directors and Officers](#M_001) | 38 |
| Item 3.02 | [Unregistered Sales of Equity Securities.](#a_013) | 38 |
| Item 5.01 | [Changes in Control of Registrant.](#a_014) | 39 |
| Item 5.02 | [Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.](#a_015) | 39 |
| Item 5.05 | [Amendments to the Registrant's Code of Ethics, or Waiver of a Provision of the Code of Ethics.](#a_016) | 39 |
| Item 5.06 | [Change in Shell Company Status.](#a_017) | 40 |
| Item 9.01 | [Financial Statements and Exhibits.](#a_018) | 40 |

---

i

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Current Report on Form 8-K (this "**Report**") for Joway Health Industries Group Inc. (the "**Company**"), contains forward-looking statements, including, without limitation, in the sections captioned "Business and Properties," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere. Any and all statements contained in this Report that are not statements of historical fact may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "pro-forma," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future" and terms of similar import (including the negative of any of the foregoing) may be intended to identify forward-looking statements. Not all forward-looking statements, however, may contain one or more of these identifying terms. Forward-looking statements in this Report may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, (ii) a projection of income, earnings per share, capital expenditures, dividends, capital structure or other financial items, (iii) the Company's future financial performance, including any such statement contained in a discussion and analysis of financial condition by management or in the results of operations included pursuant to the rules and regulations of the Securities and Exchange Commission (the "**SEC**") and (iv) the assumptions underlying or relating thereto.

The forward-looking statements are neither historical facts nor assurances of future performance and are not meant to predict or guarantee actual results, performance, events or circumstances. Instead, they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Actual results, the timing of certain events and circumstances, and financial condition may differ materially from those indicated by the forward-looking statements as a result of these risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them. Any forward-looking statement made by the Company in this Report is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

**Section 1** **Registrant's Business and Operations**

**Item 1.01 Entry Into a Material Definitive Agreement.**

On January 23, 2023, the Company entered into and consummated the transactions contemplated by a share exchange agreement (the "**Share Exchange Agreement**") by and among the Company, International CuMo Mining Corporation, an Idaho corporation ("**ICUMO**"), and all of the shareholders of ICUMO (collectively, the "**ICUMO Shareholders**"). Pursuant to the terms of the Share Exchange Agreement, the ICUMO Shareholders have transferred all the issued and outstanding shares of common stock of ICUMO to the Company in exchange for newly issued shares of the Company's common stock, par value $0.001 per share (the "**Common Stock**"). As a result of this share exchange (the "**Exchange**"), ICUMO is now a wholly owned subsidiary of the Company.

ICUMO owns or controls the mining claims and rights to the CuMo Project, a large primary molybdenum deposit with silver and copper deposits. Located in Boise County, Idaho, ICUMO was formed to explore the geologic and environmental factors that will determine the future development plan of the CuMo Project.

Pursuant to the terms of the Share Exchange Agreement, each share of ICUMO's common stock held by the ICUMO Shareholders was converted into the right to receive the number of shares of Common Stock (the "**Exchange Shares**") equal to an exchange ratio of 1.34 (the "**Exchange Ratio**").

As a result of the Exchange, a change in control of the Company has occurred with the ICUMO Shareholders now owning 90.1% of the issued and outstanding shares of Common Stock. Immediately after giving effect to the Exchange, there were 202,294,000 issued and outstanding shares of Common Stock, held as follows:

● The stockholders of the Company prior to the Exchange now hold 20,054,000shares of Common Stock issued and outstanding; and

● The ICUMO Shareholders now hold 182,240,000 shares of Common Stock.

The Share Exchange Agreement contains representations, warranties, and covenants that are customary for transactions of this type.

Pursuant to the terms of the Share Exchange Agreement, at the closing of the Exchange (the "**Closing**") the Company assumed: (i) all ICUMO's obligations for the options, whether or not vested, granted to key management personnel pursuant to certain incentive stock option agreements (the "**Incentive Stock Options**"), and such vested options are now exercisable to purchase shares of Common Stock at an exercise price of $0.125 until December 31, 2027; and (ii) all ICUMO's obligations pursuant to certain warrants to purchase shares of ICUMO common stock (the "**2021 Warrants**"), which warrants are now exercisable to purchase shares of Common Stock, at an exercise price of $0.15, until May 11, 2027. These assumed Incentive Stock Options and 2021 Warrants shall continue to have, and be subject to, the same terms and conditions set forth in their respective agreements immediately prior to the Closing, except that (i) such options and warrants will, in accordance with the Exchange Ratio, be exercisable for that number of shares of Common Stock equal to the number of shares of ICUMO's common stock subject to such option immediately prior to the Closing, and (ii) the initial exercise price per share shall remain as the initial exercise price per share in effect for that option or warrant immediately prior to the Closing. With respect to these Incentive Stock Options and 2021 Warrants, the Company assumed, after applying the Exchange Ratio, vested and unvested options to purchase an aggregate of 56,615,000 shares of Common Stock and warrants exercisable for up to 41,540,000 shares of Common Stock. The preceding summary of the Incentive Stock Options and 2021 Warrants does not purport to be complete and is qualified in its entirety by reference to the Form Incentive Stock Option Agreement and Form 2021 Warrant, copies of which are filed as Exhibits 10.1 and 4.3 hereto and are incorporated herein by reference.

At the Closing, Ramon Lata, the sole officer and director of the Company, resigned from all his offices and from the Board of Directors of the Company (the "**Board**"). In his place, the Board appointed, effective as of the Closing, four new directors, Robert Scannell, John Moeller, Shaun Dykes, and Andrew Brodkey, and the following four executive officers, Steven Rudofsky as Chief Executive Officer and President, Robert Scannell as Chief Financial Officer, Andrew Brodkey as Chief Operating Officer, and Shaun Dykes as Vice President, Exploration.

The preceding summary of the Share Exchange Agreement does not purport to be complete and is qualified in its entirety by reference to the Share Exchange Agreement, a copy of which is filed as Exhibit 2.1 hereto and is incorporated herein by reference.

Prior to entering into the Share Exchange Agreement, from December 2022 to January 9, 2023, ICUMO conducted a private placement offering whereby it issued and sold convertible secured promissory notes in the total amount of $898,000 with a conversion price of $0.10 (the "**Notes**") and 8,980,000 warrants to purchase ICUMO common stock, with an exercise price of $0.15 (the "**2023 Warrants**"). As a condition to entering into the Share Exchange Agreement, ICUMO and the Company agreed that the Company would exchange the Notes and 2023 Warrants for notes and warrants issued by the Company on substantially comparable terms and conditions. Such replacement notes and warrants were issued by the Company to the holders of the Notes and 2023 Warrants on January 23, 2023 (the "**Replacement Notes and Warrants**").

Pursuant to the Replacement Notes and Warrants, the Company now has outstanding convertible secured promissory notes in the principal amount of $898,000 which are secured by a first priority lien on all of the assets and mining claims of the Company, other than certain patented lode mining claims that represent approximately 7.3% of the CuMo Project. The Replacement Notes and Warrants are, respectively, convertible into shares of Common Stock at a conversion price of $0.10 per share and warrants to purchase an aggregate of 8,980,000 shares of Common Stock at an exercise price of $0.15 per share, which expire five years from January 9, 2023.

No other securities convertible into or exercisable or exchangeable for Common Stock are outstanding.

The issuance of the Exchange Shares, as well as the issuance of the Replacement Notes and Warrants, in connection with the Exchange were not registered under the Securities Act, in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act, which exempts transactions by an issuer not involving any public offering, and Regulation D promulgated by the SEC under that section. These securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement and are subject to further contractual restrictions on transfer as described below. Forms of the Replacement Notes and Warrants are filed as Exhibits 4.4 and 4.5 hereto and are incorporated herein by reference.

The Company continues to be a "smaller reporting company," as defined under the Exchange Act of 1934, as amended (the "**Exchange Act**") following the Exchange, however, as a result of the Exchange, the Company has ceased to be a "shell company" (as such term is defined in Rule 12b-2 under the Exchange Act).

In connection with the Exchange, the Company entered into lock-up and leak-out agreements ("**Lock-Up Agreements**") with (i) certain majority shareholders of ICUMO, (ii) the holders of the Incentive Stock Options, (iii) the majority stockholder of the Company prior to the Exchange; and (iv) certain service providers who will receive shares of Common Stock as payment for services rendered in connection with the Share Exchange Agreement. These Lock-Up Agreements cover the Exchange Shares, any Common Stock issued pursuant to the exercise of any Incentive Stock Options or 2021 Warrants, and all shares of Common Stock issued to such service providers (the "**Covered Securities**"). The Lock-up Agreements provide that the Covered Securities are subject to an 18-month lock-up from the date of the Share Exchange Agreement, subject to (i) early release upon the Company up-listing to a national securities exchange, and (ii) termination upon certain corporate events and transactions, and provide for certain limited permitted transfers where the recipient takes the shares subject to the restrictions in the Lock-Up Agreement.

At the end of the lock-up period, the Covered Securities are subject to a one-year leak-out restriction for public resales of five percent of the trailing ten (10) day average trading volume of the Common Stock. The Company may waive these restrictions.

The preceding summary of the Lock-Up Agreements does not purport to be complete and is qualified in its entirety by reference to the Form Lock-Up Agreement, a copy of which is filed as Exhibit 4.6 hereto and is incorporated herein by reference.

In connection with the transactions contemplated by the Share Exchange Agreement, prior to and conditioned upon the Closing, the Company assigned all the amounts owed to a third-party service provider to JHP Holdings, Inc., the former controlling stockholder of the Company. Pursuant to the terms of this Debt Assignment and Release Agreement, JHP Holdings, Inc. assumed all the outstanding debts of the Company as of the Closing.

The preceding summary of the Debt Assignment and Release Agreement does not purport to be complete and is qualified in its entirety by reference to such agreement, a copy of which is filed as Exhibit 10.2 hereto and is incorporated herein by reference.

**Section 2** **Financial Information**

**Item 2.01 Completion of Acquisition or Disposition of Assets.**

**The Exchange**

On January 23, 2023, the Company consummated the Exchange. Pursuant to the terms of the Share Exchange Agreement, the ICUMO Shareholders have transferred all of the issued and outstanding shares of common stock of ICUMO to the Company in exchange for 182,240,000 of Exchange Shares, which number was based on a 1.34 exchange ratio. As a result of the Exchange, ICUMO is now a wholly owned subsidiary of the Company, as described in more detail in Item 1.01 above, which is incorporated herein by reference.

**Description Of Business and Properties**

Prior to the Closing, the Company was a shell company (as defined in Rule 12b-2 of the Exchange Act) with no operations. At the Closing and as a result of the Exchange, the business of ICUMO became the business of the Company.

**Overview**

The Company, through ICUMO, owns or controls the mining claims and related rights to the CuMo Project, a large molybdenum-copper-silver deposit in Idaho. The Company is currently engaged in exploration and feasibility work to determine the future development plan of the CuMo Project. No production has yet occurred on the CuMo Project.

ICUMO was incorporated in the State of Nevada on October 15, 2004, under the name of Mosquito Mining Corporation by, and as a wholly owned subsidiary of, Multi-Metal Development Company (TSX-V: MLY), previously named Mosquito Consolidated Gold Mines Ltd. and American CuMo Mining Corporation, ("**MMDC**" or "**American CuMo**"). In February 2013, MMDC reincorporated ICUMO as Idaho CuMo Mining Corp. in the State of Idaho. In 2013, ICUMO acquired title to all the patented lode mining claims in the CuMo Project and in 2017, MMDC arranged contractually for ICUMO to acquire all of the rights, titles, and interests in and to the remaining CuMo Project mining claims, such claims as further described below. The CuMo Project is the only mining project in which ICUMO has any interests. On January 6, 2021, Idaho CuMo Mining Corp. changed its name to International CuMo Mining Corporation.

**The CuMo Project** 

***Project Ownership History***

The CuMo Project is situated in an historic placer gold mining camp with a recorded production of 2.8 million ounces of gold. Molybdenite (MoS2) mineralization was not discovered in this area until 1963. Historic drilling at the site was done between 1969 and 1982 for a total of 10,981m (36,026 ft) in twenty-three (23) diamond drill holes and three reverse circulation holes.

In 1998, the property was re-staked as unpatented federal lode mining claims by CuMo Molybdenum Mining Inc. who then optioned these claims to American CuMo in October 2004 (the "**2004 Option Agreement**").

In 2005, American CuMo optioned these same mining claims to Kobex Resources Ltd. ("**Kobex**") who commenced drilling in 2006. Kobex drilled one complete hole and 50% of a second hole 1,087m (3,565 ft), and in 2006 withdrew from their option agreement with American CuMo, surrendering all rights and interests in the optioned property back to American CuMo. After resuming control, between 2006 to 2011, American CuMo completed several exploration drilling programs and, during 2012, American CuMo drilled nine additional holes totaling 4,713m (15,464 ft), aimed at improving the resource categorization and gaining a better understanding of the extent of the deposit.

In 2010, the CuMo Project's footprint was expanded by the purchase of additional patented mineral claims by American CuMo adjacent to the unpatented claims they already owned. In February 2017, ICUMO purchased an additional twenty (20) unpatented lode mining claims in the area around the CuMo Project from a group of local prospectors. *See the "Properties" section below for more information regarding the patented and unpatented mining claims.*

The Company, through ICUMO, owns or has the right to acquire a 100% interest in the CuMo Project properties pursuant to the terms of the agreements described below.

 **

***2004 Option Agreement and Related Agreements***

 **

The 2004 Option Agreement, as amended in 2005, grant American CuMo exclusive rights to explore, develop and process minerals and metals on the related mining claims and an option to purchase 100% of the mining claims. The consideration for the exclusive rights was a combination of advance and actual royalty payments, the issuance of American CuMo shares, and yearly work requirements. The advance royalty payments are ongoing and are currently payable at $15,000 every six (6) months. The advance royalty payments are credited against a 1.5% net smelter return ("**NSR**") royalty, based on sale proceeds for minerals and metals, which reduces to a 0.5% NSR after cumulative payments of $3,000,000 in advance and NSR royalties. The work requirements are also ongoing and currently require $50,000 worth of work on the property each year. The option to purchase, granted in the 2005 amendment, was exercisable within four years or upon payment of the $3,000,000 in advance royalties. This summary of the 2004 Option Agreement and related amendment does not purport to be complete and is qualified in its entirety by reference to such agreement, a copy of which is filed as Exhibit 10.3 hereto and is incorporated herein by reference.

In July 2017, the 2004 Option Agreement and related 2005 amendment were to be superseded by a Mining Claims Agreement entered into by and among American CuMo, ICUMO, CuMo Molybdenum Mining Inc., Western Geoscience Inc., and Thomas Evans. Under the terms of this purchase agreement, ICUMO was granted the right to purchase 100% of the mining claims and American CuMo retained the right to all royalties. This summary of the Mining Claims Agreement does not purport to be complete and is qualified in its entirety by reference to such agreement, a copy of which is filed as Exhibit 10.4 hereto and is incorporated herein by reference.

This purchase transaction was expected to close by July 30, 2017, however, due to ongoing legal challenges regarding to governmental permits related to the CuMo Project that qualify as a force majeure event under the terms of the purchase agreement, the purchase transaction has been suspended until such time as the required permits are granted to ICUMO by the US Forest Service (the "**USFS**"). Until such time as the transactions contemplated under the purchase agreement can be consummated, the 2004 Options Agreement, as amended, remains in effect. *See the "Permitting for Drilling and Exploration Activities; Legal Challenges" section below for more information.*

***Additional Agreements***

In 2010, American CuMo expanded the CuMo Project footprint by entering into an option agreement, amended in 2011, to purchase six (6) patented lode mineral claims located in Section 13, 18 and 24 Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey 1706: Blackbird, Red Flag, Enterprise, Enterprise Fraction, Commonwealth, and Baby Mine. These patented lode mining claims comprise 99.419 acres, are adjacent to the unpatented claims described herein and provide access to the CuMo Project. All option payments were completed, and these patented mining claims became part of the overall CuMo Project in 2013. On July 31, 2013, American CuMo transferred these patented mining claims to ICUMO by way of a Special Warranty Deed, a copy of which is attached hereto as Exhibit 10.5

In February 2017, ICUMO purchased an additional twenty (20) unpatented lode mining claims in the area around the CuMo Project from a group of local prospectors for an aggregate of $1,250,000 paid in $250,000 silver units, plus one million shares of American CuMo. The silver units are a seven (7) year debenture that can be converted into the right to buy silver for $5 per ounce from any future production at the CuMo Project. The debenture pays 8.5% interest per annum and is secured by ICUMO's property and assets, *excluding* the patented lode mining claims. ICUMO has made all the interest payments due under such debentures. This summary of the 8.5% Secured Non-Convertible Note does not purport to be complete and is qualified in its entirety by reference to the form of such agreement, a copy of which is filed as Exhibit 4.7 hereto and is incorporated herein by reference.

**Properties**

 ****

***Mining Property***

To determine material mining operations in accordance with subpart 1300 of SEC Regulation S-K, management considered both quantitative and qualitative factors, assessed in the context of the Company's overall business and financial condition. The Company concluded that, as of the date of the filing of this Report, its sole material mining operation is the CuMo Project. The Company will update its assessment of individually material mines on an annual basis.

The information relating to such sole material mining operation is contained in the technical report summary ("**TRS**") relating to the CuMo Project prepared in compliance with the Item 601(b)(96) and subpart 1300 of Regulation S-K. Reference should be made to the full text of the TRS, a copy of which is filed as Exhibit 96.1 and incorporated herein by reference. A glossary of terms used herein can be found in the TRS.

Pursuant to Item 1302(b)(5) of Regulation S-K (17 C.F.R. §229.1302(b)(5)), the Company states that the TRS was prepared by Shaun M. Dykes, M. Sc. (Eng), P.Geo of Geologic Systems, Ltd. Mr. Dykes is also serving as a director of the registrant and is also the registrant's Director, Vice President, Exploration. Mr. Dykes meets the qualifications specified under the definition of "qualified person" under Item 1300 of Regulation S-K.

The CuMo Project currently consists of one hundred and twenty-six (126) federal unpatented lode mining claims, and six (6) patented mining claims. In total, the project comprises approximately 2,640 acres. The unpatented lode mining claims and patented claims are situated in an unorganized mining district, in Boise County, Idaho, spanning Sections in Township 7N and 8N, Range 5E and 6E, Boise Meridian. The names of the unpatented claims, and the place of record of the location notices thereof in the official records of the Boise County recorder, and the authorized office of the Bureau of Land Management are as follows:

**Table 1**

The following table lists the unpatented mining claims currently a part of the CuMo Project:

![](image_001.jpg)

![](image_002.jpg)

![](image_003.jpg)

On August 24, 2021, ICUMO and Computershare Trust Company of Canada entered into a 7.5% Secured Note Indenture under which the aggregate principal amount of notes authorized to be issued is $15,000,00, with a maturity date of May 31, 2028. The 7.5% Secured Note Indenture is secured by all of the mining claims of ICUMO that represent the CuMo Project, other than the patented lode mining claims located in Section 13, Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey 1706: (i) Blackbird; (ii) Red Flag; (iii) Enterprise; (iv) Enterprise Fraction; (v) Commonwealth; and (vi) Baby Mine. In connection with this security interest, ICUMO and Computershare Trust Company of Canada, as Mortgagee, signed a Real Property Mortgage under which the Mortgagee has the right upon default by the mortgagor to choose to sell the real property constituting the unpatented claims set out above. This summary of the 7.5% Secured Note Indenture does not purport to be complete and is qualified in its entirety by reference to the agreement, a copy of which is filed as Exhibit 4.8 hereto and is incorporated herein by reference.

**Table 2**

The following table lists the patented mining claims currently a part of the CuMo Project:

![](image_004.jpg)

On October 31, 2014, as subsequently amended March 26, 2015, and January 29, 2016, ICUMO entered into a Loan Agreement with La Familia II, LLC, evidenced by a secured promissory note, in the amount of $500,000. The promissory note accrues annual interest at 8.5%, has a maturity date of December 31, 2025, and is secured by a first priority deed of trust over the patented mining claims listed above. This summary of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the agreement, a copy of which is filed as Exhibit 10.6 hereto and is incorporated herein by reference.

***Location, Access, Climate, Infrastructure and Topography***

The CuMo Project is situated in the mountains of south-central Idaho, in the Boise National Forest, in Boise County, Idaho, approximately 15 miles northeast of the town of Idaho City, near the unincorporated community of Centerville, roughly 37 miles on a straight line, and 60 miles by road, from the city of Boise. Good all-weather highways, and USFS logging roads provide access to the project from Idaho City and Centerville. The trip from Boise takes approximately 1.5 hours. Access is limited during some winter months when significant snow cover can impede passage via the Forest Service roads.

![](image_005.jpg)

The property is accessed by road from Boise by taking US State Highway 55 northerly for approximately 40 miles (65 km) to the town of Banks, Idaho, and then east on the Banks Lowman Road towards the town of Garden Valley for approximately 10 miles (16 km). One mile east of Garden Valley is a secondary road heading south across the Payette River. Following this secondary road, the western most edge of the CuMo claim block is approximately 10 miles (16 km) from Garden Valley. Alternatively, access can be gained by traveling northeast from Boise along Highway 21 past the towns of Idaho City and Centerville, along Grimes Creek, and then over the Grimes Pass.

The elevation of the CuMo project ranges between 5,100 feet and 7,200 feet. The project site features a mountain top which contains the bulk of the mineral deposit, deep ravines adjacent, and is largely forested, except for sections that have been cleared by several fires which occurred in 2014 and 2016.

The climate is defined by summer temperatures to a maximum of 100° F (38°C) and cold, windy winters with lows to -10° F (-23°C). Precipitation is moderately light with an average rainfall of 30 inches (<1 meter) and an average snowfall of approximately 140 inches (3.6 m). Vegetation in the project area consists of cedar, lodgepole pine, mountain mahogany, and juniper.

The area is serviced by the Idaho Power Company which supplies electricity to residents of Garden Valley, Lowman and Pioneerville. The nearest rail line is the Idaho Northern & Pacific line formerly operated by Union Pacific that runs through the town of Banks, approximately 20 road miles (32 km) to the west of the property. Equipment, supplies, and services for exploration and mining development projects are available at Boise. There is also a trained mining-industrial workforce available in Boise.

Exploration and mining activities at the property can be conducted year-round, due to the established road system and its proximity to other infrastructure. The property is large enough to accommodate exploration within the current CuMo deposit property footprint.

***Geology and Mineralization***

 

The regional tectonic setting consists of a basement of amalgamated Archean and Paleoproterozoic crystalline terrains that were joined during the Paleoproterozoic Trans-Montana orogeny, and are overlain discontinuously by sedimentary rocks of Mesoproterozoic, Neoproterozoic, and Paleozoic ages; and volcanic and sedimentary rocks of Eocene and Miocene ages. Voluminous tonalite to granite bodies of the Idaho batholith and later granitic plutons of Eocene age intrude the older rocks. Major deformational episodes superimposed on the Precambrian basement include the Cretaceous Sevier orogeny, which mainly involved east-vergent "thin-skinned" thrusting; Eocene extensional deformation, which resulted in development of metamorphic core complexes; and basin and range type faulting.

The CuMo deposit is situated within the Idaho batholith and is part of a regional scale belt of porphyry and related deposits identified as the Idaho-Montana Porphyry Belt. Igneous complexes in this belt are interpreted to be related to an Eocene, intra-arc rift, and are characterized by alkalic rocks in the northeast, mixed alkalic and calc-alkalic rocks in the middle, and calc-alkaline rocks in the southwest. The CuMo deposit is located at the southwestern end of this belt and is associated with a calc-alkalic monzogranite, reported as 45-52Ma age that intrudes Cretaceous equigranular intrusive rocks of the Atlanta Lobe of the Idaho Batholith. The CuMo area is underlain by biotite granodiorite, the most common rock type of the Atlanta lobe of the Idaho batholith. All of the felsic intrusive phases contain molybdenite (MoS2) mineralization.

The CuMo deposit is located in an historic gold mining camp. Gold was discovered in the Boise Basin in 1862 and lode mining began within a year. As of 1940, total gold production amounted 2.8 million ounces of which 74% was from placer operations. More gold has been produced from the Boise Basin than any other mining locality in Idaho. Although they are primarily gold deposits, considerable silver and minor copper, lead and zinc were produced as byproducts from the lodes.

The area features two separate mineralizing events that are referred to as early Tertiary and early Miocene. The first event consists of gold-quartz veins containing minor sulfide minerals that occur within the Idaho batholith and are associated with weak wall rock alteration. Associated sulfide minerals include pyrite, arsenopyrite, sphalerite, tetrahedrite, chalcopyrite, galena, and stibnite. The second mineralizing event occurs within porphyry dikes and stocks as well as in the batholith, and is characterized by relatively abundant sulfide mineralization, subordinate quartz and widespread wall rock alteration. Base metal mineralization consists of pyrite, sphalerite, galena, tetrahedrite, chalcopyrite, minor quartz, and siderite with local occurrences of pyrrhotite and enargite.

Molybdenum mineralization was discovered at CuMo in 1963. Mineralization on the property occurs in veins and veinlets developed within various intrusive bodies. Molybdenite (MoS2) occurs within quartz veins, veinlets, and vein stockworks. Individual veinlets vary in size from tiny fractures to veinlets five centimeters in width, with an overall thickness averaging 0.3- 0.4 cm. Pyrite and/or chalcopyrite are commonly associated with molybdenite although molybdenite can occur alone without other metallic mineralization.

The CuMo deposit has been classified as a porphyry copper molybdenum deposit. But more specifically, it is a stockwork-type deposit where the principal mineralization, as described immediately above, is found in thin veins and veinlets, whereas a typical porphyry deposit features disseminated mineralized areas throughout the orebody.

The CuMo deposit is typical of large, dispersed, lower grade copper-molybdenum deposits that are associated with hybrid magmas typified by fluorine-poor, differentiated monzogranite igneous complexes. Due to their large size, the total contained economic molybdenum in these types of deposits can be equivalent to or exceed that of high-grade molybdenum deposits.

**History of CuMo Project Exploration**

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The Boise Basin was first explored following the discovery of placer gold deposits in 1862. Several lode gold deposits were discovered and developed immediately following the initial alluvial gold rush, with significant production occurring in the late 1800's and early 1900's. No production has occurred on the CuMo Project itself.

The first interest in the CuMo property was shown during aerial reconnaissance by Amax Exploration ("**Amax**") in 1963. Follow-up geochemical rock and soil sampling indicated anomalous molybdenum and copper values. Forty claims were then staked, and three previously existing claims were optioned. A 2.5 mile (4 km) rough access road was constructed in 1964 to facilitate collection of rock samples and geological mapping. Amax completed detailed bedrock mapping on the CuMo property between 1964 and 1981. Earlier periods of mapping outlined five general rock types, including quartz monzonite of the Idaho Batholith, rhyolite porphyry, lamprophyre, dacite and diabase dykes. The property was subsequently relinquished due to the combination of contemporary economic conditions and initial sample grades.

In 1968, Curwood Mining Company staked 12 claims and undertook detailed mapping and geochemical rock sampling. This work indicated roughly coincident anomalies in copper, molybdenum, and silver. Several trenches were excavated, and one line of dipole-dipole array induced polarization ("**IP**") geophysical survey was conducted.

In 1969, Midwest Oil Corp. optioned the property and conducted exploration drilling through 1972 (four short rotary holes (less than 100 ft) initially, which were later deepened using diamond drilling, followed by six cored holes). Midwest also performed an IP survey in 1971 and an airborne magnetic survey in 1973. The IP survey indicated a pyrite halo on the north side of the deposit, although an alternative interpretation concluded that the combined IP data may indicate a halo effect but more probably shows an east-west trend to the rock types and mineralization. The CuMo deposit did not have a strong magnetic signature, being somewhat of a plateau with surrounding highs.

In 1973, Midwest formed a joint venture with Amax and then subsequently Midwest was merged with Amoco Minerals Company ("**AMOCO**") resulting in an Amax-AMOCO joint venture with AMOCO as operator. During the period 1973 to 1981, the Amax-AMOCO joint venture completed 30,822 ft of drilling, surface geological mapping, re-logging of the core, road construction, an aerial topographic survey, and age dating. In 1980, Amax Exploration Inc. transferred its interest to Climax Molybdenum Company ("**Climax**"), also a subsidiary of Amax Inc. In 1982, Climax collected more than 300 soil geochemical samples from three different grids.

A total of twenty-three (23) diamond holes and three RC holes were drilled on the property during this timeframe. Most RC holes were pre-collars to diamond drill holes with only the diamond drill component of the holes being used for resource modelling and sampling. The historic holes were sampled mostly at a 20ft sample interval. A Skelton core representation of the historic drill holes (one four-inch piece of core for each 10-foot interval), and all the sample rejects were delivered directly from Climax's secure facility in Colorado and are stored in the project secure warehouse facility for use by the project.

The drilling efforts from 1969 to 1982 were the only actual drilling done on the property until ICUMO in 2006, who under option from American CuMo completed one diamond drillhole and partially completed another before relinquishing the project back to American CuMo in late 2006. Thereafter, American CuMo between 2006 and 2012 drilled a total of 25,486.82m in forty-two (42) holes. All American CuMo drilling programs were directly supervised by onsite geology staff located in Garden Valley, Idaho. Drilling consisted of both HQ and NQ diameter core with holes being started with HQ diameter and then reducing at a major fault intersection or at 1000ft which ever was less. Core recoveries were monitored and were excellent (90%+). All holes were surveyed down-the-hole at regular intervals (100 feet) using a Reflex survey instrument. All core was collected at the drill site by the diamond drillers under supervision of onsite geology staff and delivered to a secure warehouse facility in Garden Valley where they were logged, analyzed and samples collected. All drill sites were surveyed using a total field station in order to accurately locate the holes.

The 2006 through 2012 results confirmed the extent and grade of mineralization on the property as indicated by previous drilling and demonstrated continuity of mineralization between the original wide-spaced holes.

American CuMo's work resulted in the interpretation and modelling of three distinct mineralized zones within the deposit. These zones were previously interpreted by Amax as distinct shells that were produced by separate intrusions. Re-interpretation of down-hole histograms for copper (Cu), silver (Ag) and molybdenite (MoS2) suggests the mineralized zones are part of a single, large, concentrically zoned system with an upper copper-silver zone, underlain by a transitional copper-molybdenum zone, in turn underlain by a lower molybdenum-rich zone. Three-dimensional modeling of the above zonation indicates the current area being drilled is located on the north side of a large system extending 4.5km (15,000ft) in diameter, of which 1.5km (3,000ft) has been drilled.

***Resource Reports and Preliminary Economic Assessments***

 

A geologically inferred historic resource of 1.36 billion tonnes at 0.092% MoS2 (non-compliant with Canadian National Instrument 43-101 or US Regulation SK-1300) was calculated by block modeling in 1983 by Climax.

In 2008, an initial Resource Estimate compliant with Canadian National Instrument 43-101 was commissioned by American CuMo under its former name, Mosquito Consolidated Gold Mines Ltd. This estimate was based on information from 31 diamond drillholes completed through 2007. The deposit was subdivided into three mineral domains based on the drill hole data: a Cu-Ag zone, a Cu-Mo zone, and a Mo zone. Within each mineral domain 20 ft. composites were formed. Blocks 50 x 50 x 50 ft. were estimated for MoS2, Cu, Ag and W by ordinary kriging. At a 0.10 % Cu cutoff there was reported 293 million tons averaging 0.016 % MoS2 and 0.14 % Cu classified as inferred. Within the Cu-Mo and Mo Zones at a 0.04 % MoS2 cutoff there were 1.72 billion tons averaging 0.091 % MoS2 and 0.075 % Cu classified as inferred.

In May 2009, the authors of the 2008 report provided an updated Resource Estimate based on a total of 42 diamond drill holes totaling 76,436 ft, including 11 completed during 2008. Using a Recoverable Metal Value (the "**RCV**") cutoff at various US dollar values per ton, and at certain assumed metal recoveries and metal prices, the authors presented tonnages, metal grades, and contained metal for indicated and inferred resource calculations in all 3 mineralized zones.

In November 2009, Ausenco Canada Inc. ("**Ausenco**"), an independent, third-party engineering firm employed by American CuMo, published a NI 43-101 compliant Preliminary Economic Assessment, throughput Scoping Study Report based on the same 42 diamond drillholes. In a manner similar to the May 2009 report, Ausenco reported tonnages, metal grades and contained metal for indicated and inferred resource calculations in all 3 mineralized zones. Ausenco went further and proposed a mining and processing operational design at various mining rates, from 50,000 to 200,000 tons per day of ore to mill throughput. This firm also included provisions and estimated capital and operating costs for a conceptual open pit mine, waste dumps, tailings storage facility, plant/concentrator, molybdenum roaster, and ancillary facilities. Initial capital costs ranged from $1.6 to $3.4 billion (in 2009 dollars). Based on this data, Ausenco was able to perform a Preliminary Economic Analysis (PEA) of the CuMo project, at various throughput rates, which yielded numeric results for Net Present Value, Internal Rate of Return, Payback, and cash operating costs per pound of molybdenum equivalent. They concluded that higher throughputs yield a higher NPV and higher IRR, although at a greater capital cost.

In 2011, a new technical study for a NI 43-101 compliant Resource update was commissioned with Snowden Mining Consultants. The resource estimate update was based on a total of 54 diamond drillholes totaling 99,404 ft. Of these, 12 diamond drillholes were completed in 2009 and 2010. Again, using assumed metal recoveries and selected RCV cut-off grades, Snowden reported updated global Indicated Resources of over 2 billion tons, and global Inferred Resources of over 5 billion tons. Snowden adopted most of the other design parameters and assumptions offered by Ausenco.

In August 2015, Gary Giroux of Giroux Consultants Ltd. (one of the authors of the 2008 and 2009 Reports) was employed by American CuMo to publish a NI 43-101 compliant, updated resource estimate. This update was based on a total of 65 diamond drill holes totaling 120,685 feet (36,784.9 meters). Nine (9) of the sixty-five (65) diamond drill holes were completed in 2012 since the previous resource calculation. Using low, medium, and high metal price assumptions, and different cutoff grades for RCV, Giroux calculated Measured, Indicated, and Inferred mineral resource numbers for ore contained within a conceptual pit shell. The maximum case reported here was a combined Measured, Indicated, and Inferred resource of over 6 billion tons.

Finally, in 2020 SRK authored a NI 43-101 compliant Preliminary Economic Assessment and Technical Report for the CuMo project. This document, relying on the previously published 2015 resource estimate, proposed an open pit mine and concentrator combination at a milling rate of 150,000 tons per day, and an initial mine life of 30 years. It also incorporated particle-based ore sorting technology to remove 28% of the mining waste from the ore stream, prior to entering the concentrator. SRK projected that operations would produce (yearly Life of Mine average) of 43 million pounds of molybdenum, 84 million pounds of copper, and 3.7 million ounces of silver. The capital cost estimate prepared by SRK was $3.1 billion, with a cash cost per pound of molybdenum (after by-product credits) of $4.67, a post-tax Net Present Value (at 5% discount) of $1.7 billion, and an Internal Rate of Return of 9%.

The mineral resource estimates contained in the TRS are based on drilling completed through 2012. As no additional drilling has been completed since the 2015 resource was estimated, the mineral resource estimates are considered current and have not been updated since that time. The mineral resource was classified on the basis of the quality and uncertainty of the sample data and sample spacing, in accordance with the definitions of "inferred mineral resource," "indicated mineral resource" and "measured mineral resource" under the SEC Mining Rules.

For a detailed summary of mineral resource estimates current as of ICUMO's most recent fiscal year, including tabular disclosure of measured, indicated, and inferred resources, please refer to Section 1.5 of the attached TRS.

The mineral resource estimates contained in the TRS were estimated in conformity with Committee for Mineral Reserves International Reporting Standards (CRIRSCO) "International Reporting Template for the public reporting of Exploration Targets, Exploration Results, Mineral Resources and Mineral Reserves" as adopted by the International Council on Mining & Metals November 2019. The mineral resources are reported in in accordance with §§229.1300 through 229.1305 (subpart 229.1300 of Regulation S-K).

The resource estimate was based on a total of 65 diamond drill holes totaling 36,166 m (118,654 ft). Note that the three reverse circulation holes were not used in the resource estimate. Nine of the 65 diamond drill holes were completed in 2012.

**Internal Controls and Data Verification**

Shaun M. Dykes (the "**Qualified Person**") has reviewed the procedures used by ICUMO and produced a description and an analysis of the results as contained in Section 8 of the TRS. These are standard data verifications with no limitations.

All assay results used in the verification process by the Qualified Person were obtained from fully certified analytical laboratories with signed assay certificates.

The Qualified Person has reviewed the data collection and verification procedures followed by ICUMO and by third parties on behalf of ICUMO, and believes these procedures are consistent with industry best practices and acceptable for use in geological and resource modelling.

These procedures have also been verified by several independent qualified people over the years.

For more information about quality control/quality assurance and data verification, see Section 8 and Section 9 of the TRS.

The mineral resources estimated may ultimately be affected by a broad range of environmental, permitting, socio-economic (as discussed in Section 17 of the TRS), legal, title (as discussed in Section 3 of the TRS), marketing and political factors (as discussed in Section 22 of the TRS). At this time the authors are unaware of any of these factors that could materially affect the mineral resource estimate. Of course, going forward, relevant factors that could influence the resource estimate include changes to the geological, geotechnical or geometallurgical models, infill drilling to convert mineral resources to a higher classification, drilling to test for extensions to known resources, collection of additional bulk density data and significant changes to commodity prices. It should be noted that all these factors pose potential risk and opportunities to the current mineral resource.

**Permitting for Drilling and Exploration Activities; Legal Challenges**

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Exploration on federal lands requires a permit to conduct exploration except for sampling of rocks and soils by hand and other activities that create no land disturbance. There are three levels of permits reflecting increasing disturbance:

● The lowest level of permit is Categorical Exclusion (CE). This is the least intense disturbance and requires some public notification;

● Environmental assessment requires an in-depth study with 30 days for public comment, plus additional time for appeal; and

● Environmental Impact Statement is the highest permit level and would be required for mine development.

ICUMO's predecessor, Mosquito Mining Corporation, submitted an exploration plan of operations (the "**POO**") in 2007 to the USFS for exploration activities which would result in about twenty (20) miles of drill road, of which 4.7 miles were existing unauthorized drill roads from previous operators and 13.3 miles of new temporary roads. An environmental assessment for these activities was prepared by the USFS. On June 14, 2010, the Environmental Assessment was completed and submitted for public review and hearing during a mandated 90-day period. On February 14, 2011, a Finding of No Significant Impact ("**FONSI"**) was delivered by the USFS. During the mandated 45-day appeal period, an environmental group, the Idaho Conservation League (the "**ICL**") submitted an appeal of the USFS decision.

On May 17, 2011, the USFS denied the appeal allowing American CuMo to begin work under the new exploration permit following a mandatory fifteen (15) day stay period which ended on June 7, 2011. The ICL filed a challenge to this denial in United States District Court for the District of Idaho on December 15, 2011. ICL and other non-governmental organizations sought summary judgment reversing and remanding the Forest Service's February 2011 issuance of the FONSI.

On August 29, 2012, the judge in the case dismissed four of the five claims of the opponents but remanded the section on groundwater for further study. As a result, on February 7, 2013, the USFS initiated a Supplemental Environmental Assessment (2015 SEA) in order to address the judge's concerns regarding groundwater and, as needed, consider new information or changed circumstances since the 2011 FONSI was issued, including a proposed change in status of the wolverine from a regional sensitive species to an Endangered Species Act proposed listed species.

Based on the 2015 SEA, a supplemental FONSI addressing the 2011 court order and other changes summarized above was issued on September 30, 2015. Plaintiffs from the 2011 lawsuit again filed a lawsuit challenging the 2015 FONSI in January 2016. The lawsuit challenged the analysis of potential effects of exploration activities to groundwater and Sacajawea's bitterroot, a sensitive plant species. The court issued a memorandum decision and order in this lawsuit on July 11, 2016. The court upheld the 2015 FONSI as to the NEPA challenges related to groundwater, so no further analysis was required. The court found, however, that the USFS analysis and conclusions concerning Sacajawea's bitterroot to be arbitrary and capricious because it failed to reexamine the baseline Sacajawea's bitterroot population in the project area following the 2014 Grimes Fire and subsequent 2016 Pioneer Fire.

Each resource area addressed in the 2015 SEA was affected differently. Similar to the updates made in response to the 2014 Grimes Fire, updates were made in a document produced by the FS entitled "2018 Supplemental Redline Environmental Assessment CuMo Exploration Project" (2018 SREA) to address the change in baseline conditions caused by the 2016 Pioneer Fire. The 2018 SREA focused on the re-evaluation of the Sacajawea's bitterroot baseline, as well as other resources addressed in the 2015 SEA that were affected by the 2016 Pioneer Fire, to determine whether the conclusions reached in the 2015 SEA that supported the 2015 FONSI were different or changed. The 2018 SREA focused only on these topics because the Court determined that other concerns raised during the 2012 and 2015 lawsuits were properly addressed and the evidence and analysis in the 2015 SEA project record supported the determination that no significant impacts would occur to other resources from proposed management activities.

Numerous environmental studies were undertaken for the 2011 Environmental Assessment and subsequently revised in 2015 and 2018. The 2018 SREA incorporated habitat changes and resulting impacts related to the 2014 Grimes Fire and the 2016 Pioneer Fire. A number of reports supported the preparation of the 2018 SREA. Some of these updated reports and some earlier reports can be accessed at https://www.fs.usda.gov/project/?project=52875.

The USFS is currently in process of preparing the final decision on the proposed exploration POO which is expected sometime before the end of calendar year 2023.

**Current Planned Working Programs**

***Ore Sorting and Updated Preliminary Economic Assessment***

ICUMO presently is investigating the potential to utilize additional ore sorting scanning technologies to optimize the separation of waste from ore post-mining and increase the head grade of ICUMO ore being fed to a concentrator. The thin-veined, stockwork nature of the CuMo deposit lends itself nicely to ore sorting, as noted above, since these darker colored veins largely carry the metals of interest and are much different from waste in appearance. A visual scanning exercise of all of the core recovered from the drilling activities described herein shows that on average, 84% of the waste mined can be theoretically separated through application of ore sorting, versus the 28% waste removal that SRK Consulting (Canada) Inc. ("**SRK**") conservatively used in its 2020 Preliminary Economic Assessment ("**PEA**"). There are over 90 active mines in the world today which utilize some form of ore sorting.

In September 2022, ICUMO signed an agreement to test CuMo material with MineSense, Technologies Ltd., using their ShovelSense scanning systems, which employ X-ray fluorescence (the "**XRF**") surface scanning technology. These systems are installed directly on shovel buckets and scan the blasted material as the shovel scoops it up, allowing the mine operator to begin to differentiate ore from waste at the mining face. ShovelSense is currently being used successfully by at least three large producing copper open pit mines (Highland Valley BC, Copper Mountain BC, and Carmen de Andacollo Chile). Contemporaneously with this test work, the Company plans to scan all of the existing drill cores with portable XRF scanners. The all-in cost of this exercise is anticipated to be less than $200,000, and the Company believes that the ShovelSense results can be attained by Q1 2023. This summary of the MineSense agreement does not purport to be complete and is qualified in its entirety by reference to the agreement, a copy of which is filed as Exhibit 10.7 hereto and is incorporated herein by reference.

ICUMO's sorting examination is designed to not just rely on a single sorting pass, but to possibly integrate multiple sorting technologies, such as combining surface XRF scanning at the face with downstream penetrative prompt gamma neutron activation analysis (PGNAA) or pulsed fast thermal neutron activation (PFTNA) scanners installed on the material conveyors, and potentially particle scanners to finish. The potential combination of different ore sorting technologies and equipment is intended to enable the Company to optimize the separation of ore from waste, substantially increasing the head grade of mill feed, and thereby reducing the size of the concentrator which then will only be concerned with the processing of ore. Consequently, this will in theory allow the Company to design and build a smaller concentrator, significantly reducing capital and operating costs. As an example, the Company believes that if ore sorting can remove 75% of waste pre-mill feed, this result will reduce the size of the mill to around 30,000 tons per day to produce the same amount of metal as the SRK 2020 PEA mill design of 150,000 tons per day, and thereby save over $1.5 billion in projected capital expenditures. The Company has just commenced initial discussions with consultants, and mining equipment providers who design and fabricate penetrative scanning systems for testing of CuMo material.

At the conclusion of all of ICUMO's ore sorting investigations, the Company intends to contract with an independent third-party engineering firm to publish an updated PEA, utilizing ore sorting results to revise the technical and economic sections of the document. The expected budget for this work is roughly $750,000.

***Additional Exploration and Metallurgical Studies; Pre-Feasibility Study***

Following completion of the updated PEA, and pending issuance of a new FONSI by the USFS relating to the "2018 Supplemental Redline Environmental Assessment CuMo Exploration Project" issued by the USFS (the "**2018 SREA**"), the Company intends to resume its plans for additional exploration including infill, expansion, and geotechnical pit wall drilling. The infill work is intended to enable the Company to reclassify resources currently labeled as Inferred, to the level of Indicated, or Measured and Indicated. The expansion drilling should allow the Company to add more resources to at least the Inferred category. The Company has tentatively budgeted $8 million for this drilling work.

The Company also plans to initiate additional metallurgical studies to (1) determine the optimal concentrator design for both copper-silver, and molybdenum concentrate circuits, and (2) investigate the potential to recover copper and molybdenum via heap leaching of lower grade ore that is stockpiled and not immediately processed at the concentrator. The Company has identified a number of outside consultants that can be engaged for both of these studies. In total, the Company expects that these studies will cost approximately $1,000,000 and will take on the order of four (4) months to complete.

These undertakings are part of the Company's plan to develop an independent, third-party Pre-Feasibility Study (PFS) for the CuMo Project. In addition to the exploration and metallurgical work, explained above, the PFS will include expenditures for infrastructure and road improvements, environmental and permitting work, preliminary engineering, community, and public/governmental relations work, and potentially costs for expansion of the current land position. All-in, the Company has budgeted a range of $25 to $30 million to reach the PFS stage and estimates that the PFS can be completed within two years of the release of the updated PEA.

***Competitive Position in the Industry***

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The mineral exploration, development, and production industry are largely un-integrated. The Company competes with other exploration companies looking to acquire and obtain financing for the exploration and development of mineral resource properties. While the Company competes with other exploration companies to locate and acquire mineral resource properties, it may also compete with them for the removal or sales of mineral products from its properties if it should eventually discover their presence in quantities sufficient to make production economically feasible. Readily available markets for the sale of mineral products only sometimes exist for all mineral commodities; however, the principal CuMo Project commodities of copper, silver and molybdenum are traded on international exchanges and therefore, at a minimum a terminal market exists for which these commodities can be delivered and sold.

***Competition***

ICUMO's competition includes large, established mining companies with substantial capabilities and more significant financial and technical resources than it. As a result of this competition, it may have to compete for financing and may need help to acquire the funding on terms it considers acceptable. ICUMO may also have to compete with other mining companies to recruit and retain qualified managerial and technical employees. If ICUMO cannot compete successfully for financing or qualified employees, its exploration programs may be slowed down or suspended, which may cause it to cease operations as a company.

***Employees***

As of the date of this Report, other than certain executives, ICUMO has no employees. ICUMO does not have or maintain any employee benefit plans or similar plans under any applicable laws.

**RISK FACTORS**

***The following risk factors apply to the business and operations of the Company. These risk factors are not exhaustive. Investors are encouraged to perform their own investigation with respect to the business, financial condition and prospects of the Company. You should carefully consider the following risk factors, as well as the other information included in this Report. In particular, please refer to the section entitled "Cautionary Note Regarding Forward-Looking Statements." The Company may face additional risks and uncertainties that are not presently known to IT, or that IT currently deem immaterial, which may also impair the business. The following discussion should be read in conjunction with the financial statements and notes to the financial statements included herein.***

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If any of the following or other risks materialize, the Company's business, financial condition, and results of operations could be materially adversely affected which, in turn, could adversely impact the value of Common Stock. In such a case, investors in Common Stock could lose all or part of their investment.

***Risks Related to Capital Structure***

The Common Stock is currently quoted on the Pink tier of OTC Markets Group Inc., an over-the-counter quotation system, under the symbol "GTVI." There is, however, currently no trading market for the Common Stock and there is no assurance that a regular trading market will ever develop. The trading price of the Company's securities could be subject to wide fluctuations, in response to quarterly variations in its operating results, announcements by the Company or others, developments affecting it, and other events or factors. In addition, the stock market has experienced extreme price and volume fluctuations in recent years. These fluctuations have had a substantial effect on the market prices for many companies, often unrelated to the operating performance of such companies, and may adversely affect the market prices of the securities Such risks could have an adverse effect on the stock's future liquidity.

***If our business plan is not successful, the Company may not be able to continue operations as a going concern and shareholders may lose their entire investment in the Company.***

As discussed in the notes to the Company's financial statements included in this Report, as of September 30, 2022, since inception the Company has incurred cumulative losses of $23,370,325 and as of September 30, 2022, had a working capital deficiency of $4,994,515 which may cast significant doubt regarding the Company's ability to continue as a going concern. The Company does not generate material cash flows from operations and accordingly, the Company will need to raise additional funds through future issuance of securities. Although the Company has been successful in raising funds in the past, there can be no assurance the Company will be able to raise sufficient funds in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business. The Company has not determined whether any of its properties contain mineral reserves that are economically recoverable. It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of operations. Should the Company be unable to realize its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts on the statement of financial position.

If the Company fails to raise sufficient capital, it will have to explore other financing activities to provide it with the liquidity and capital resources to meet its working capital requirements and to make capital investments in connection with ongoing operations. The Company cannot give assurance that it will be able to secure the necessary capital when needed. The Company's independent auditor included an explanatory paragraph on the financial statements emphasizing to the readers of the audit report that there is substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon it being able to generate cash flow sufficient to fund operations and reducing operating expenses. The Company's business plans may not be successful in addressing cash flow issues. If the Company cannot continue as a going concern, its shareholders may lose their entire investment in it.

***You may experience dilution of your ownership interests because of the future issuance of additional shares of Common Stock or other securities that are convertible into or exercisable for Common Stock or preferred stock.***

In the future, the Company may issue authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of present stockholders. The Company is authorized to issue an aggregate of 500,000,000 shares of Common Stock and 10,000,000 shares of preferred stock. Additional shares of Common Stock or other securities that are convertible into or exercisable for Common Stock may be issued in connection with hiring or retaining employees, future acquisitions, future sales of securities for capital raising purposes, or for other business purposes. The future issuance of any such additional shares of Common Stock may create downward pressure on the trading price of Common Stock.

***The Company does not have a class of securities registered under Section 12 of the Exchange Act. Until it does, or the Company becomes subject to Section 15(d) of the Exchange Act, it will be a "voluntary filer."***

The Company is not currently required under Section 13 or Section 15(d) of the Exchange Act to file periodic reports with the SEC. It has in the past voluntarily elected to file some or all of these reports to ensure that sufficient information about it is publicly available to its stockholders and potential investors. Until the Company becomes subject to the reporting requirements under the Exchange Act, it is a "voluntary filer" and is currently considered a non-reporting issuer under the Exchange Act. The Company will not be required to file reports under Section 13(a) or 15(d) of the Exchange Act until the earlier to occur of: (i) the registration of a class of securities under Section 12 of the Exchange Act, which would be required if the Company lists a class of securities on a national securities exchange or if it meets the size requirements set forth in Section 12(g) of the Exchange Act, or which it may voluntarily elect to undertake at an earlier date; or (ii) the effectiveness of a registration statement under the Securities Act relating to Common Stock. Until the Company becomes subject to the reporting requirements under either Section 13(a) or 15(d) of the Exchange Act, it is not subject to the SEC's proxy rules, and large holders of its capital stock will not be subject to beneficial ownership reporting requirements under Sections 13 or 16 of the Exchange Act and their related rules. As a result, the Company's stockholders and potential investors may not have available to them as much or as robust information as they may have if and when it becomes subject to those requirements. In addition, if the Company does not register under Section 12 of the Exchange Act, and remain a "voluntary filer", it could cease filing annual, quarterly or current reports under the Exchange Act.

***Share of Common Stock are subject to the "penny stock" rules of the SEC, and the trading market in the Company's securities is limited, which makes transactions in its stock cumbersome and may reduce the value of an investment in its stock.***

Rule 15g-9 under the Exchange Act establishes the definition of a "penny stock," for the purposes relevant to the Company, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require: (a) that a broker or dealer approve a person's account for transactions in penny stocks; and (b) the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.

In order to approve a person's account for transactions in penny stocks, the broker or dealer must: (a) obtain financial information and investment experience objectives of the person; and (b) make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to the penny stock market, which, in highlight form: (a) sets forth the basis on which the broker or dealer made the suitability determination; and (b) that the broker or dealer received a signed, written agreement from the investor prior to the transaction. Generally, brokers may be less willing to execute transactions in securities subject to the "penny stock" rules. This may make it more difficult for investors to dispose of shares of Common Stock and may cause a decline in the market value of the Company's stock.

Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.

***Because the Company does not intend to pay any cash dividends on share of Common Stock, its stockholders will not be able to receive a return on their shares unless they sell them.***

The Company intends to retain any future earnings to finance the development and expansion of its business. The Company does not anticipate paying any cash dividends on share of Common Stock in the foreseeable future. Unless the Company pays dividends, its stockholders will not be able to receive a return on their shares unless they sell them. The Company cannot assure its stockholders that they will be able to sell shares when they desire to do so.

***The Company's principal stockholders and management own a significant percentage of Common Stock and will be able to exercise significant influence over matters subject to stockholder approval.***

As of January 23, 2023, the Company's executive officers, directors and principal stockholders, together with its other affiliates, owned approximately 85.9% of the issued and outstanding Common Stock. Accordingly, these stockholders will be able to exert a significant degree of influence over the management and affairs of the Company and over matters requiring stockholder approval, including the election of the directors and approval of significant corporate transactions. This concentration of ownership could have the effect of entrenching Company management or the Board, delaying or preventing a change in control or otherwise discouraging a potential acquirer from attempting to obtain control of the Company, which in turn could have a material and adverse effect on the fair market value of Common Stock.

***Risks Associated with Mining Business***

***It is uncertain that the Company's mineral properties contain any proven or probable reserve, nor can the Company provide such assurance, but its business is highly dependent on the existence of the mineral property.***

 **

As all the Company's mineral properties are in the exploration stage, there is no assurance that it can establish the existence of any mineral reserves on any of its properties in commercially exploitable quantities. Until the Company can do so, it cannot earn any revenues from operations and if it does not do so, it will lose all of the funds that were expended on exploration. If the Company does not discover any mineral reserves in a commercially exploitable quantity, its business could fail.

The Company has not established that its mineral properties contain any proven or probable reserves, nor can there be any assurance that it will be able to do so. If the Company fails to establish any proven or probable reserve, the business could fail.

 ****

***Due to the speculative characteristics of the mine exploration business, there is substantial risk that the Company will not find sufficient commercially exploitable minerals and fail in its business.***

The Company cannot evaluate its success rate on the CuMo Project. The search for valuable minerals as a business is perilous. The Company may not find commercially exploitable mineral reserves or other valuable minerals in its mineral property. Exploration for minerals is a speculative venture necessarily involving substantial risk. The expenditure to be made by the Company on exploration programs may not result in the discovery of commercial quantities of ore. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications, and delays encountered in the exploration of the mineral properties the Company plans to undertake. Issues such as unusual or unexpected formations and other conditions are involved in mineral exploration and often result in unsuccessful exploration efforts. In such a case, the Company would need help to complete its business plan. Due to the inherent dangers involved in mineral exploration, the business may incur liability or damages.

 ****

 ****

***Even if the Company does eventually discover a mineral reserve on one or more of its properties, there can be no assurance that it will be able to develop such properties into producing mines and extract those resources. Both mineral exploration and development involve a high degree of risk and few properties which are explored are ultimately developed into producing mines.***

The commercial viability of an established mineral deposit will depend on several factors, including, by way of example, the size, grade, and other attributes of the mineral deposit, the proximity of the resource to infrastructures such as a smelter or processing facilities, power, and water, roads and a point for shipping, available workforce, government regulation, successful permitting, proximity to markets and consumers, and market prices. Most of these factors will be beyond the Company's control, and any of them could increase costs and make extraction of any identified mineral resource unprofitable.

***The Company cannot provide any assurance about financing for additional exploration. If its exploration costs are higher than anticipated, the Company may only be able to complete the exploration program with additional financing.***

The Company is proceeding with exploration on its CuMo property. The exploration program outlines the budget for completion of the program but there is no assurance that actual costs will not exceed the budgeted costs. Factors that could cause actual costs to exceed budgeted costs include increased prices due to competition for personnel and supplies during the exploration season, unanticipated problems in completing the exploration program and delays due to weather or other factors experienced in completing the exploration program. Increases in exploration costs could result in the Company not being able to carry out its exploration program without additional financing. There is no assurance that the Company would be able to obtain additional financing in this event.

***If the Company cannot raise sufficient capital after it establishes the existence of a mineral resource on any of its properties in a commercially exploitable quantity, it will not be able to exploit the resource, thus the business could fail.***

If the Company discovers mineral resources in commercially exploitable quantities on any of its properties, it will then be required to expend substantial sums of money to explore and fully establish the extent of the resources and reserves, develop processes to extract it, and develop extraction and processing facilities and infrastructure. Although the Company may derive substantial benefits from the discovery of a significant deposit, there can be no assurance that such a resource or reserve will be large enough to justify commercial operations, nor can there be any assurance that the Company will be able to raise the funds required for the development on a timely basis. The business may not succeed if the Company cannot extend the necessary capital or complete the required facilities and infrastructure.

***Mineral exploration and development are subject to extraordinary operating risks. The Company does not currently insure against these risks. In the event of a cave-in or similar occurrence, its liability may exceed its resources, which would have an adverse impact on the business.***

Mineral exploration, development, and production involve many risks that even a combination of experience, knowledge and careful evaluation may be unable to overcome. The Company's operations will be subject to all the geological, technical, and operating hazards and risks in exploring mineral resources. If the Company discovers a mineral resource in commercially exploitable quantity, its operations would be subject to the hazards and risks inherent in the development and production of resources, including liability for pollution, cave-ins, or similar dangers against which it cannot fully insure or against which it may elect not to insure. Any such event could result in work stoppages and property damage, including damage to the environment. The Company does not currently maintain any insurance coverage against these operating hazards. The payment of any liabilities arising from such occurrences may have a material adverse impact on the business.

***Mineral prices are subject to dramatic and unpredictable fluctuations.***

 ****

The Company expects to derive revenues from the sale of its mineral resource properties or from the extraction and sale of molybdenum, silver, copper, and rhenium, and associated minerals. The price of those commodities has fluctuated widely in recent years. It is affected by numerous factors beyond the Company's control, including international, economic, and political trends, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumptive patterns, speculative activities, and increased production due to new extraction developments and improved extraction and production methods. The effect of these factors on the price of base and precious metals, and therefore the economic viability of any of the Company's exploration properties and projects, cannot accurately be predicted.

 ****

 **

***The unpredictable inclement weather may restrict mineral exploration and cause delay or impact on the Company's mining progress.***

 **

Access to the mineral property may be restricted between November and April of each year because the period between these months can sometimes feature heavy snow cover, extreme cold, and high winds, which makes it difficult, if not impossible, to carry out exploration and other activities. Visits, tests, and explorations of the mineral property can only be attempted when weather permits such activities. These limitations can result in significant delays in the exploration, mining, and production of commercial minerals. Such delays can cause the business to fail.

**Risks Related to Regulatory and Permitting Requirements in the Industry the Company Operates**

***Mineral operations are subject to applicable law and government regulation. Even if the Company discovers a mineral resource in a commercially exploitable quantity, applicable laws and regulations could restrict or prohibit the exploitation of that mineral resource.***

Both mineral exploration and extraction require permits from various federal, state, provincial and local governmental authorities and are governed by laws and regulations, including those with respect to prospecting, mine development, mineral production, transport, export, taxation, labor standards, occupational health, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters. There can be no assurance that the Company will be able to obtain or maintain any of the permits or bonds required for the continued exploration of its mineral properties or for the construction and operation of a mine on its properties at economically viable costs.

The Company cannot ensure that all its business activities will continue to comply with all material laws and regulations because there may be changes to applicable laws and regulations, and it may not be able to comply with such changes. Further, there is no assurance that the Company will be able to obtain or maintain all permits or bonds necessary for its future operations or that it will be able to obtain them on reasonable terms. To the extent such approvals are required and are not accepted, the Company may be delayed or prohibited from proceeding with the planned exploration or development of its mineral properties. If the Company is prevented from exploiting any mineral resource that it discovers by a failure to comply with applicable laws and regulations or obtain or to maintain any required permits, the business could fail.

***Exploration development and exploitation activities are subject to comprehensive regulation and permitting, which may cause substantial delays or require capital outlays in excess of what is currently anticipated, causing a material adverse effect on the business.***

 ****

Exploration, development, and exploitation activities are subject to federal, provincial, state, and local laws, regulations, and policies, including laws regulating permitting, bonding, and the removal of natural resources from the ground and the discharge of materials into the environment. Exploration, development, and exploitation activities are also subject to federal, provincial, state, and local laws and regulations which seek to maintain health and safety standards by regulating the design and use of drilling methods and equipment and other operational activities.

Environmental and other legal standards imposed by federal, provincial, state, or local authorities may be changed, and any such changes may prevent the Company from conducting planned activities or increase its costs of doing so, which could have material adverse effects on the business. Moreover, compliance with such laws may cause substantial delays or require capital outlays in excess of those currently anticipated, thus causing a material adverse effect on the business. Additionally, the Company may be subject to liability for pollution or other environmental damages that it may not be able to, or elect not to, insure against due to prohibitive premium costs and other reasons. Any laws, regulations, or policies of any government body or regulatory agency may be changed, applied, or interpreted that could materially alter and negatively affect the Company's ability to carry on the business.

***The Company depends on its senior management team, and the loss of one or more key employees or an inability to attract and retain highly skilled employees could adversely affect the business.***

The Company's success depends on the skills, experience, and performance of its Chief Executive Officer, Steven Rudofsky, and other key employees. The effort of the Chief Executive Officer will be important as the Company continues to develop and expand its commercial activities. The loss or incapacity of existing members of the executive management team could negatively impact the Company's operations if it experiences difficulties in hiring qualified successors. Qualified employees periodically are in great demand and may be unavailable in the time frame required to satisfy business requirements. Expansion of the business could require the Company to employ additional personnel. There can be no assurance that the Company will be able to attract and retain sufficient numbers of skilled employees in the future. The loss of personnel or inability to hire or retain sufficient personnel at competitive rates could impair the growth of the business.

The Company also relies on its leadership team in the areas of finance, marketing, services, and general and administrative functions, and on sales. From time to time, there may be changes in the executive management team resulting from the hiring or departure of executives, which could disrupt the business.

In addition, in making employment decision, job candidates often consider the value of the equity awards they are to receive in connection with their employment. Volatility in the price of Common Stock might, therefore, adversely affect the Company's ability to attract or retain highly skilled personnel. Furthermore, the requirement to expense certain stock awards might discourage the Company from granting the size or type of stock awards that job candidates require to join. If the Company fails to attract new personnel or fail to retain and motivate its current personnel, the business and its future growth prospects could be severely harmed.

**FINANCIAL INFORMATION / MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

As the result of the Exchange and the change in business and operations of the Company, a discussion of the past financial results of the Company is not pertinent, and under applicable accounting principles the historical financial results of ICUMO, the accounting acquirer, prior to the transaction are considered the historical financial results of the Company. Audited financial statements and the accompanying notes for ICUMO for the fiscal year ending June 30, 2022 (compared to the same period ending June 30, 2021), as well as unaudited financial statement and notes for the quarter ending September 30, 2022, are attached as Exhibit 99.1 and incorporated herein by reference.

The following discussion highlights the results of operations and the principal factors that have affected our financial condition, as well as the liquidity and capital resources for the periods described and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on the audited financial statements contained in this Report, which have prepared in accordance with United States generally accepted accounting principles. This the discussion and analysis should be read together with such financial statements and the related notes thereto.

**Overview**

**Basis of Presentation**

The audited financial statements of ICUMO for the fiscal years ended June 30, 2021 and 2022 and the unaudited financial statements for the three months ended September 30, 2022 and 2021, include a summary of significant accounting policies and should be read in conjunction with the financial notes as well as the discussion below. In the opinion of management, all material adjustments necessary to present fairly the results of operations for such periods have been included in these audited financial statements. All such adjustments are of a normal recurring nature.

**Results of Operations**

***For the three months ended September 30, 2022 compared to the three months ended September 30, 2021***

 

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| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**September 30,**<br>**2022** | **Three Months**<br>**Ended**<br>**September 30,**<br>**2021** |
| General and administrative expense | $118356 | $129500 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 118356 | 129500 |
| &nbsp;&nbsp;&nbsp;Income (loss) from operations | (118356) | (129500) |
| Other (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Total other (expense) | - | - |
| &nbsp;&nbsp;&nbsp;Income (loss) before income taxes | (118356) | (129500) |
| Net loss | $(118356) | $(129500) |

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*Net Loss*

For the three months ended September 30, 2022 and 2021, we incurred a net loss of $118,356 and $129,500, respectively. These net losses are attributable primarily to the fact that the company is in the pre-production phase of developing its mining properties.

*Liquidity and Capital Resources*

 

As of the three months ended September 30, 2022, we have $20,809 in current assets and $5,015,324 in current liabilities, as compared to $127,016 in current assets and $5,003,180 in current liabilities as of the year ended June 30, 2022. As of the three months ended September 30, 2022, we had $20,804 cash on hand and our working capital deficit was $4,994,515.

*Cash Flows:*

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| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**September 30,**<br>**2022** | **Three Months**<br>**Ended**<br>**September 30,**<br>**2021** |
| Cash flows from operating activities | (106212) | 97 |
| Net increase (decrease) in cash and cash equivalents | (106212) | 97 |
| Cash and cash equivalents at beginning of period | 127016 | 588 |
| Cash and cash equivalents at end of period | $20804 | $685 |

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*Operating Activities*

During the three months ended September 30, 2022, operating activities used net cash of $106,212 primarily resulting from a net loss of $118,356.

 

***For year ended June 30, 2022 compared to the year ended June 30, 2021***

The following table sets forth a summary of our consolidated results of operations for the fiscal years indicated. This information should be read together with our consolidated financial statements and related notes included elsewhere in this Report. The operating results in any year are not necessarily indicative of the results that may be expected for any future period.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the fiscal years ended June 30** | **For the fiscal years ended June 30** | **For the fiscal years ended June 30** | **For the fiscal years ended June 30** |
|  | **2022** | **2021** | **Change** | **Change (%)** |
| &nbsp;&nbsp;&nbsp;General and administrative expense | $637986 | $33241 | $604745 | 1819% |
| &nbsp;&nbsp;&nbsp;Legal and professional fees | 311053 | 3000 | 308053 | 10268 |
| &nbsp;&nbsp;&nbsp;Rent | 30000 |  | 30000 | &nbsp;&nbsp;&nbsp;&nbsp;n/a |
| &nbsp;&nbsp;&nbsp;Impairment of property | 106932 |  | 106932 | &nbsp;&nbsp;&nbsp;&nbsp;n/a |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative and expenses | 1453 | 15214 | (13761) | (90) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1087424 | 51455 | 1035969 | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | (1087424) | (51455) | (1035969) | 2013 |
| **Other (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (415215) | (155736) | (259479) | 167 |
| &nbsp;&nbsp;&nbsp;Miscellaneous income | 344545 | (133) | 344678 | 259157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense) | (70670) | (155869) | 85199 | (55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | (1158094) | (207324) | (950770) | 459 |
| **Net Loss** | $(1158094) | $(207324) | $(950770) | $459 |

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*Net Loss*

For the fiscal year ended June 30, 2022, we incurred a net loss of $1,158,094. Included in the loss of 1,158,094 are non-cash items including $623,000 of non-cash stock-based compensation and $106,932 of impairment of fixed assets. The net loss is attributable primarily to the fact that the Company is in the process of exploring its mineral right interests in the United States. As of the date of this Report, the Company has not yet determined whether any of its mineral properties contain economically recoverable mineral reserves. Accordingly, the carrying amount of mineral right interests represents cumulative expenditures incurred to date and does not necessarily reflect present or future values. The recovery of these costs is dependent upon the discovery of economically recoverable mineral reserves and the ability of ICMC to obtain the necessary financing to complete their exploration and development and to resolve any environmental, regulatory, or other constraints. Uncertainty also exists with respect to the recoverability of the carrying value of certain mineral right interests. The ability of the Company to realize on its investment in resource properties is contingent upon resolution of the uncertainties and confirmation of the Company's title to the mineral properties.

*Liquidity and Capital Resources*

In order to assess our liquidity needs, we constantly monitor working capital needs. Our operating capital comes primarily from the periodic issuance of investment securities.

As of June 30, 2022, our cash and cash equivalents amounted to $127,016. Our current liabilities were $5,003,180 and our shareholders' deficit totaled $4,000,247. We had a net loss of $1,158,094 and $207,324 for the fiscal year ended June 30, 2022 and 2021, respectively. We believe the company will continue to generate operating losses until one or more of our mineral assets moves into production. In the meanwhile, we believe working capital is sufficient to support our operations for the next twelve months.

The following chart summarizes the key components of our cash flows for the fiscal years ended June 30, 2022 and 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the fiscal years ended June 30,** | **For the fiscal years ended June 30,** | **For the fiscal years ended June 30,** | **For the fiscal years ended June 30,** |
|  | **2022** | **2021** | **Change** | **Change (%)** |
| Cash flows from operating activities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(1158094) | $(207324) | $(950770) | 459% |
| &nbsp;&nbsp;&nbsp;Impairment of property | 106932 |  | 106932 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 623000 |  | 623000 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 302428 | 121314 | 181113 | 149% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating activities | (125734) | (86010) | (39724) | 46% |
| Cash flows from investing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets | - | (107117) | 107117 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) financing activities |  | (107117) | 107117 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| Cash flows from financing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due (to) from parent company | (1111895) | 242714 | (1354609) | 558 |
| &nbsp;&nbsp;&nbsp;Loan proceeds | 1079000 |  | 1079000 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| &nbsp;&nbsp;&nbsp;Loan repayments |  | (49530) | 49530 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| &nbsp;&nbsp;&nbsp;Proceeds from private placements | 285000 | - | 285000 | &nbsp;&nbsp;&nbsp;&nbsp; n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 252105 | 193184 | 58921 | 30% |
| Net increase (decrease) in cash and cash equivalents | 126371 | 57 | 126314 | 222032 |
| Cash and cash equivalents at beginning of period | 645 | 588 | 57 | 10 |
| Cash and cash equivalents at end of period | $127016 | $645 | $126371 | $19596 |

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*Operating Activities*

During the fiscal year ended June 30, 2022, net cash used in operating activities increased to $125,734 compared to net cash used of $86,010 in the 2021 period. The increase of $39,724 in the 2022 period compared to 2021 is attributable to an increase in net loss, net of non-cash items of $220,838 in the 2022 period partially offset by an increase in accounts payable and accrued expenses of $181,314.

*Investing Activities*

Net cash used in financing activities for the fiscal year ended June 30, 2022, was $-0-, compared to $107,117 used in the period ended June 30, 2021. Cash used in the 2021 period was used to purchase fixed assets,

*Financing Activities*

Cash flows provided by financing activities for the fiscal year ended June 30, 2022, was $252,105 compared to $193,184 during the same period ended June 30, 2021. The difference is primarily attributable to loan proceeds of $1,079,000, proceeds of $285,000 from private placements, payments to the former parent company in the 2022 period; compared to proceed of $242,714 from the former parent company and loan payments in the 2021 period.

 

*Going Concern*

Because it does not currently generate material cash flows from operations, the Company will need to raise additional funds through the future issuance of securities. Although the Company has been successful in raising funds in the past, there can be no assurance that it will be able to do so in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business. The Company has not determined whether any of its properties contain mineral reserves that are economically recoverable. Should the Company be unable to develop its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts on the statement of financial position.

*Anticipated Capital Requirements*

 

We will require significant capital to fully develop our mining assets. The next major milestone for the CuMo project is the completion of a pre-feasibility study (PFS), which we estimate will take two years and require a capital investment of $25-30 million. With a completed PFS in hand we will move on to a bankable feasibility study (BFS), which will require an additional $100 million capital investment. In addition to these major capital expenditures, we expect the company to incur ongoing G&A expense of approximately $1 million per annum.

*Off-Balance Sheet Arrangements*

We did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K as of September 30, 2022 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

*Contractual Obligations and Commitments*

We are obligated to pay principal and interest on outstanding bonds. The total par value of the bonds is $3,349,000, $2,260,000 of which accrue interest at 8.5%, and $1,089,000 of which accrue interest at 7.5%. The bonds mature in the following years and amounts: 2023: $500,000; 2024: $1,510,000; 2025: $250,000; 2028: $1,089,000.

In addition, the Company rents a warehouse facility for storage of core drilling samples at a cost of $3,500/month. The space is leased on a month-to-month basis and is terminable at any time.

The Company has management agreements in place with its senior officers including Steven Rudofsky, Shaun Dykes, Andrew Brodkey and Robert Scannell. The management agreements are for a one-year term and renew annually unless otherwise terminated. In 2023, these four management agreements, each of which stipulates annual compensation of $250,000, will total $1 million.

 

*Critical Accounting Policies and Estimates*

The preparation of the financial statements and accompanying notes requires ICUMO to make estimates and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual experience may differ from these estimates and assumptions. The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both.

Information about critical accounting estimates and judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the financial statements are more fully described in Note 3 to the financial statements attached hereto, but they believe that the following critical accounting policies involve the most significant estimates and judgments used in the preparation of their financial statements.

*Unproven mineral right interests* 

The application of ICUMO's accounting policy for unproven mineral right interests requires judgment in determining whether it is likely that future economic benefits will flow to ICUMO, which may be based on assumptions about future events or circumstances. Estimates and assumptions may change if new information becomes available. If, after expenditures are capitalized, information becomes available suggesting that the recovery of the expenditures is unlikely, the amount capitalized is impaired with a corresponding charge to profit or loss in the period in which the new information becomes available.

*Title to unproven mineral right interests*

Although ICUMO has taken steps to verify title to its unproven mineral right interests, these procedures do not guarantee ICUMO title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

*Convertible debentures*

 

The Company presents convertible debentures separately in its debt and equity components on the statement of financial position. The fair value of a compound instrument at issuance is assigned to its respective debt and equity components. The fair value of the debt component is established first with the equity component being determined by the residual amount.

*Going concern*

Critical judgement and estimates are applied for the determination that the Company will continue as a going concern for the next year.

*Share-based payments*

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date in which they are granted. Estimating fair values for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. The estimate also requires determining the most appropriate inputs to the valuation model, including the expected life of the share option, volatility, and dividend yield, and making assumptions about them.

*Income taxes*

The calculation of income taxes requires judgment in applying tax laws and regulations, estimating the timing of the reversals of temporary differences, and estimating the reliability of deferred tax assets. These estimates impact current and deferred income tax assets and liabilities, and current and deferred income tax expense.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. In accordance with SEC rules, shares of Common Stock which may be acquired upon exercise of stock options or warrants which are currently exercisable or which become exercisable within sixty (60) days of the date of the applicable table below are deemed beneficially owned by the holders of such options and warrants and are deemed outstanding for the purpose of computing the percentage of ownership of such person, but are not treated as outstanding for the purpose of computing the percentage of ownership of any other person. Subject to community property laws, where applicable, the persons or entities named in the tables below have sole voting and investment power with respect to all shares of Common Stock indicated as beneficially owned by them.

The following table sets forth information with respect to the beneficial ownership of Common Stock as of January 23, 2023, by (i) each stockholder known by us to be the beneficial owner of more than 5% of Common Stock (the Company's only class of voting securities), (ii) each of the directors and executive officers, and (iii) all of the directors and executive officers as a group. To the best knowledge of the Company, except as otherwise indicated, each of the persons named in the table has sole voting and investment power with respect to the shares of Common Stock beneficially owned by such person, except to the extent such power may be shared with a spouse. To the knowledge of the Company, none of the shares listed below are held under a voting trust or similar agreement, except as noted. Other than the Exchange, to the knowledge of the Company, there is no arrangement, including any pledge by any person of securities of the Company or any of its parents, the operation of which may at a subsequent date result in a change in control of the Company.

---

| | | | |
|:---|:---|:---|:---|
| **Name and Address of Beneficial Owner(1)** | **Number of <br> Shares <br> Beneficially <br> Owned** |  | **Percentage<br> of <br> Beneficial <br> Ownership** |
| **Named Executive Officers and Directors** | |  | |
| Robert Scannell – Director, Chief Financial Officer, and Treasurer | 17534000 | (2) | 8.1% |
| Steven Rudofsky – Chief Executive Officer and President | 21260000 | (3) | 10.0% |
| Andrew Brodkey – Director, Chief Operating Officer, and Secretary | 9517600 | (4) | 4.5% |
| Shaun Dykes – Director, Vice President - Exploration | 8278200 | (5) | 4.0% |
| John Moeller – Director | 2680000 | (6) | 1.3% |
| All current directors and executive officers as a group (5 persons) | 59269800 |  | 27.9% |
| **5% Stockholders** |  |  |  |
| Multi-Metal Development Limited | 128787400 | (7) | 61.4% |
| JHP Holdings Inc. | 16644820 | (8) | 8.2% |
| Elatam Family Trust | 35443000 | (9) | 16.1% |

---

(1) Unless indicated otherwise, the address of all the persons listed above
is c/o the Company at 800 W. Main St, Ste 1460 Boise, ID 83702.

(2) Consists of: (1) 2,680,000 shares of Common Stock owned by Mr. Scannell and 1,407,000 shares of Common Stock of Feehan Partners LLP ()"**Feehan**") that Mr. Scannell, as General Partner of Feehan, has discretionary authority to vote and dispose of the shares held by Feehan and may be deemed to be the beneficial owner of these shares; (2) 5,360,000 shares of Common Stock underlying vested options that he holds pursuant to the 2022 Incentive Stock Options; (3) 2,680,000 shares of Common Stock underlying the 2021 Warrants held directly by Mr. Scannell and 1,407,000 shares of Common Stock underlying the 2021 Warrants held by Feehan that Mr. Scannell could be deemed to beneficially own; and (4) 2,000,000 shares of Common Stock underlying the 2023 Replacement Warrants and 2,000,000 shares of Common Stock underlying the Replacement Note held by Feehan that Mr. Scannell could be deemed to beneficially own.

(3) Consists of: (1) 11,725,000 shares of Common Stock owned by Mr. Rudofsky; (2) 5,360,000 shares of Common Stock underlying vested options that he holds pursuant to the 2022 Incentive Stock Options; (3) 1,675,000 shares of Common Stock underlying the 2021 Warrants held by Mr. Rudofsky; and (4) 1,250,000 shares of Common Stock underlying the 2023 Replacement Warrants and 1,250,000 shares of Common Stock underlying the Replacement Note held by Mr. Rudofsky.

(4) Consists of: (1) 1,098,800 shares of Common Stock owned by Mr. Brodkey; (2) 5,360,000 shares of Common Stock underlying vested options that he holds pursuant to the 2022 Incentive Stock Options; (3) 1,098,800 shares of Common Stock underlying the 2021 Warrants held by Mr. Brodkey; and (4) 980,000 shares of Common Stock underlying the 2023 Replacement Warrants and 980,000 shares of Common Stock underlying the Replacement Note held by Mr. Brodkey.

(5) Consists of: (1) 1,159,100 shares of Common Stock owned by Mr. Dykes; (2) 5,360,000 shares of Common Stock underlying vested options that he holds pursuant to the 2022 Incentive Stock Options; (3) 1,159,100 shares of Common Stock underlying the 2021 Warrants held by Mr. Dykes; and (4) 300,000 shares of Common Stock underlying the 2023 Replacement Warrants and 300,000 shares of Common Stock underlying the Replacement Note held by Mr. Dykes.

(6) Consists of 2,680,000 shares of Common Stock underlying vested options that Dr. Moeller holds pursuant to the 2022 Incentive Stock Options.

(7) Consists of (1) 121,343,700 shares of Common Stock owned by Multi-Metal
Development Limited; and (2) 7,443,700 shares of Common Stock underlying the 2021 Warrants held by Multi-Metal Development Limited ()"**MMD** ").
MMD is a public company traded on the Toronto Stock Exchange (TSXV: MLY) and the Board of Directors of MMD share voting and dispositive
power over the shares of the Company. The address for MMD is 638 Millbank Road Vancouver, BC V5Z 4B7 Canada

(8) JHP Holdings, Inc. holds a total of 16,644,820 shares of the Company's
common stock. As the shareholder and executive director of JHP Holdings, Inc., Mr. Lata is the beneficial owner of the shares of the Company
held by JHP Holdings, Inc. The address for the foregoing entity is 701 S. Carson Street, Suite 200, Carson City, NV, 89701.

(9) Consists of (1) 17,721,500 shares of Common Stock owned by the Elatam
Family Trust; and (2) 17,721,500 shares of Common Stock underlying the 2021 Warrants held by the Elatam Family Trust. As a director of
the Elatam Family Trust, Mr. Mohammad Elatam had voting and dispositive power over these shares and may be deemed to be the beneficial
owner of such shares.

**DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS**

**Directors and Executive Officers**

Below are the names of and certain information regarding the Company's current executive officers and directors who were appointed effective as of the closing of the Exchange:

---

| | | | |
|:---|:---|:---|:---|
| **NAME AND ADDRESS** | **AGE** | **POSITION(S)** | **DATE OF APPOINTMENT** |
| Steven Rudofsky | 60 | Chief Executive Officer and President | January 23, 2023 |
| Robert Scannell | 64 | Director, Chief Financial Officer, and Treasurer | January 23, 2023 |
| Andrew Brodkey | 66 | Director, Chief Operating Officer, and Secretary | January 23, 2023 |
| Shaun Dykes | 70 | Director, Vice President - Exploration | January 23, 2023 |
| John Moeller | 76 | Director | January 23, 2023 |

---

Directors are elected to serve until the earlier of the election and qualification of their successors, their removal for cause by the shareholders, or their resignation. Directors are elected by a plurality of the votes cast at the annual meeting of stockholders and hold office until the expiration of the term for which he or she was elected and until a successor has been elected and qualified.

A majority of the authorized number of directors constitutes a quorum of the Board for the transaction of business. The directors must be present at the meeting to constitute a quorum. Any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board individually or collectively consent in writing to the action.

Executive officers are appointed by the Board and serve at its pleasure.

The principal occupation and business experience during the past five years for the Company's executive officers and directors is as follows:

**Biographies**

The biographies of the individuals appointed as directors and officers as discussed above follow:

**Steven Rudofsky**

Mr. Rudofsky, age 60, has been CEO of ICUMO since January 2022. He has been working in upstream and midstream natural resources for over 30 years. After beginning his career at Glencore (then Marc Rich and Co), he held senior and CEO positions at TransCanada Pipeline Ltd, Credit Agricole Investment Bank and Alfa Group of Russia. He is the founder of Talex Commodities, which works with private equity and debt providers, including family offices, to implement innovative financing for the junior mining and oil & gas sectors, including streaming, convertible debt, and royalties. He holds a Bachelor of Arts degree from Clark University and a Juris Doctor degree from Emory University School of Law.

**Andrew Brodkey**

Mr. Brodkey, age 66, has been the COO of ICUMO since January 2022. He has more than 30 years of experience working with public companies in the mining and metals sector, including roles as VP, General Counsel at Magma Copper; VP of Business Development at BHP Copper; CEO of Pan American Lithium/First Potash Corp; CEO of Zoro Mining Corp; and CEO of Pacific Copper Corp. He was also the Managing Director of the International Mining Group at CB Richard Ellis, where he represented a number of major mining companies in the valuation, marketing and sales of mining projects. He currently acts as a Principal with both Critical Metals Ventures, LLC and Energy Metals Discovery Group LLC, private enterprises dedicated to finding and incubating early-stage copper, lithium, cobalt, vanadium, and titanium projects. He received a Bachelor of Science degree (with distinction) in Mining Engineering from the University of Arizona, and a Juris Doctor degree (cum laude) from Creighton University.

**Robert Scannell**

Mr. Scannell, age 64, has been the Chief Financial Officer of ICUMO since January 2022. Since 2015 he has been the Managing Partner of Feehan Partners, LP, a private family office. Previously he spent nine years at Merrill Lynch & Co. as a Vice President of Institutional Fixed-Income Sales. Thereafter, he founded Tradewinds Investment Management, LP, which from 1994 to 2015 managed numerous funds investing in emerging markets, natural resources, and distressed assets. Mr. Scannell holds a Bachelor of Arts degree and Master of Business Administration degree from Penn State University, a Master of Science degree from the University of Washington, a Juris Doctor degree from Purdue University, and has been a Chartered Financial Analyst since 1993.

**Shaun Dykes**

Mr. Dykes, age 70, has been Vice President - Exploration of ICUMO since January 2022. He has been instrumental in the development of the Idaho Copper project, acting as CEO of a predecessor company and as a champion of the project since 1994. He has over 35 years of experience in the management, exploration, and analysis of mineral properties, and has been directly involved in, or responsible for, the discovery of numerous mineral deposits, five of which have been placed into commercial production. Previously, Mr. Dykes spent 15 years as a project geologist with Westmin Resources Ltd., where he managed a variety of early-stage and pre-production projects. He also played a major role in the discovery and development of the Premier open pit deposit (at one time North America's largest gold mine), which required analysis and computerization of an extensive historical database. Mr. Dykes is also the founder of Geologic Systems Ltd, which supplies geological expertise to the mining and exploration community. He holds a Bachelor of Science in Geology and a Master of Science degree in Geological Engineering from Queen's University.

**Dr. John Moeller**

Dr. Moeller, age 76, has served as a director of ICUMO since 2013. He is an environmental engineer with broad experience in the permitting, development, and regulatory infrastructure of mining projects in Idaho. Since 2010 Dr. Moeller has represented the Idaho Copper project before state, local, and federal agency officials, and has led the project's highly visible environmental assessment process. Previously, he managed water quality and hazardous materials programs at the Idaho Department of Environmental Quality and was awarded an EPA Bronze Medal for his work with hazardous waste and pollution prevention programs. Later in his career he was a Principal at Forsgren Associates, a civil and environmental engineering firm in the western US and served on the board of directors for the Idaho Conservation league. Dr. Moeller earned a PhD in Water Quality/Limnology from Idaho State University, and both a Master of Science (MS) degree in Zoology/Water Quality and a Bachelor of Science in Electrical Engineering in from the University of Kentucky. From 2005-2017 he was on the Adjunct Faculty at Boise State University, where he taught Water Quality Management.

**Involvement in Certain Legal Proceedings**

None of the Company's directors or executive officers have been involved in any of the following events during the past ten years:

● any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

● any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

● being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; or

● being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

**Family Relationships**

There are no family relationships among the Company's directors or executive officers.

**Significant Employees**

While the Company has engaged various consultants, other than management, it currently has no significant employees.

**EXECUTIVE COMPENSATION**

**Executive Officer Compensation**

The following is a summary of all compensation paid to the Company's executive officers for the last two completed fiscal years. The summary is broken out into two tables below, the first of which is for the Company prior to the closing of the Share Exchange Agreement (**"Pre-Closing**") because the Company's last two completed fiscal years ended on December 31, 2020, and December 31, 2021. The second summary is for the Company subsequent to the closing of the Share Exchange Agreement ("**Post-Closing**") and the acquisition of ICUMO because ICUMO's last two completed fiscal years ended on June 30, 2021, and June 30, 2022.

Information in the Pre-Closing table pertains to Jinghe Zhang who was the principal executive officer of the Company until his resignation on February 3, 2022, when Crystal Globe Limited sold 83% of the issued and outstanding shares to JHP Holdings, Inc. Subsequently, Ramon Lata became the Company's principal executive officer and principal financial and accounting officer, serving in such capacity without compensation until the closing of the Share Exchange Agreement. Simultaneous with the closing of the Share Exchange Agreement, Messrs. Rudofsky, Scannell, Brodkey, and Dykes were appointed as officers of the Company.

**Summary Executive Compensation Table 2021-2022 – Pre-Closing**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Bonus<br> ($)** | **Stock<br> awards<br> ($)** | **Option<br> awards<br> ($)** | **Non-equity<br> incentive<br> plan<br> compensation<br> ($)** | **Nonqualified<br> deferred<br> compensation<br> earnings<br> ($)** | **All other<br> compensation<br> ($)** | **Total<br> ($)** |
| **Jinghe Zhang President, Chief Executive Officer** | 2020 |  |  |  |  |  |  | $21500 |
|  | 2021 | $— |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp; |

---

**Summary Executive Compensation Table 2021-2022 – Post-Closing <sup>(1)</sup>**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Salary ($)** | **Bonus ($)** | **Stock awards ($)** | **Option awards ($)** | **Non-equity incentive plan compensation ($)** | **Nonqualified deferred compensation earnings ($)** | **All other compensation ($)** |  | **Total ($)** |
| **Steven Rudofsky President, Chief Executive Officer** | 2021 | $— |  |  |  |  |  |  |  | $— |
|  | 2022 | $125000 |  |  |  |  |  |  |  | $125000 |
| **Robert Scannell Treasurer, Chief Financial Officer** | 2021 | $— |  |  |  |  |  |  |  | $— |
|  | 2022 | $100000 |  |  |  |  |  |  |  | $100000 |
| **Andrew Brodkey, Secretary, Chief Operating Officer** | 2021 | $— |  |  |  |  |  |  |  | $— |
|  | 2022 | $92000 |  |  |  |  |  |  |  | $92000 |
| **Shaun Dykes**, Vice President, Exploration <sup>(2)</sup>** | 2021 | $&nbsp;&nbsp;&nbsp;&nbsp; — |  |  |  |  |  | 46282 | (2) | $46282 |
|  | 2022 | $— |  |  |  |  |  | 245409 | (2) | $245409 |

---

(1) Compensation paid by ICUMO to Messrs. Rudofsky, Scannell,
Brodkey, and Dykes, are for the fiscal years ended June 30, 2022 and 2021, respectively. These are the last two completed fiscal years
for ICUMO ended prior to the closing of the Share Exchange Agreement.

(2) Dykes Geologic Systems Ltd. ()"**Geologic Systems** ")
is 50% owned by Shaun Dykes, President and CEO of the Company, and 50% owned by his spouse. Dykes Geologic Systems Ltd. is the full legal
name. That company is also known as Geologic Systems Ltd., which is its trade name. In ICUMO's fiscal year ended June 30, 2022,
the Company paid Geologic Systems $155,854 in exploration fees and $89,555 in salaries and management fees. This is compared with $13,041
for exploration fees and $33,241 paid by the Company to Geologic Systems in ICUMO's fiscal year ended June 30, 2021.

***Option Plan***

There were no stock options and no common shares set aside for any stock option plan as of December 31, 2021 for the Company or for ICUMO as of June 30, 2022.

***Aggregated Option Exercises and Fiscal Year-End Option Value Table***

There were no stock options exercised during the fiscal year ended December 31, 2021 or during the fiscal year ended June 30, 2022, by the executive officers named in the Executive Compensation Table.

***Long-Term Incentive Plan ("LTIP") Awards Table***

There were no awards made to a named executive officer in the last completed fiscal year under any LTIP.

**Director Compensation**

The following is a summary of the compensation paid to directors for the Company's last completed fiscal year. As stated above, the summary is broken out into two tables below, the first of which is for the Pre-Closing Period and the second of which is for the Post-Closing period. The last completed fiscal year for the Company ended on December 31, 2021, and the last completed fiscal year for ICUMO ended on June 30, 2022.

**Summary Director Compensation Table 2021 – Pre-Closing**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Fees earned or paid in cash<br> ($)** | **Stock awards<br> ($)** | **Option awards<br> ($)** | **Non-equity incentive plan<br> compensation<br> ($)** | **Nonqualified deferred<br> compensation earnings<br> ($)** | **All other compensation<br> ($)** | **Total<br> ($)** |
| **Jinghe Zhang <sup>(1)</sup>** | $– |  |  |  |  |  | $— |
| **Haibo Fan <sup>(2)</sup>** | $– |  |  |  |  |  | $— |
| **Jun Pang <sup>(2)</sup>** | $– |  |  |  |  |  | $— |
| **Ramon Lata <sup>(1)</sup>** | $– |  |  |  |  |  | $— |

---

(1) On February 3, 2022, Ramon Lata was appointed as a director,
and Jinghe Zhang resigned as a director. Mr. Lata served without compensation as a director until his resignation upon the closing of
the Share Exchange Agreement.

(2) As of April 29, 2021, Jun Pang and Haibo Fan resigned as
independent directors of the Company.

**Summary Director Compensation Table 2022 – Post-Closing**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Fees earned or paid in cash<br> ($)** | **Stock awards<br> ($)** | **Option awards<br> ($)** | **Non-equity incentive plan<br> compensation<br> ($)** | **Nonqualified deferred<br> compensation earnings<br> ($)** | **All other compensation<br> ($)** | **Total<br> ($)** |
| **Shaun Dykes** | $– |  |  |  |  |  | $— |
| **Trevor Burns <sup>(1)</sup>** | $– |  |  |  |  |  | $— |
| **John Moeller** | $– |  |  |  |  |  | $— |
| **Andrew Brodkey** | $– |  |  |  |  |  | $— |
| **Robert Scannell** | $– |  |  |  |  |  | $— |

---

(1) Mr. Burns resigned as a director of ICUMO on September 12, 2022.

**Employment Contracts, Termination of Employment, Change-in-Control Arrangements**

The Company does not currently have employment agreements with any of its executive officers but expects to enter into employment agreements with certain of them in the future. ICUMO currently has Management Agreements with Steven Rudofsky, Robert Scannell, and Andrew Brodkey.

Mr. Rudofsky and ICUMO entered into a Management Agreement dated January 1, 2022, for a term of one year with automatic renewals for one-year periods at December 31 of each year, subject to renegotiation within 60 days of the end of any one year period unless earlier terminated, with or without cause, upon notice. Unless terminated for cause or other defined reasons, Mr. Rudofsky is entitled to severance of one (1) month compensation for each two (2) months of service at the end of the third (3) month of service up to a maximum of two (2) years' wages. Mr. Rudofsky's annual base compensation is $250,000, reviewable at least annually, and he may participate in any Company economic benefit plans that exist or may be implemented.

Mr. Scannell and ICUMO entered into a Management Agreement dated January 1, 2022, for a term of one year with automatic renewals for one-year periods at December 31 of each year, subject to renegotiation within 60 days of the end of any one year period unless earlier terminated, with or without cause, upon notice. Unless terminated for cause or other defined reasons, Mr. Scannell is entitled to severance of one (1) month compensation for each two (2) months of service at the end of the third (3) month of service up to a maximum of two (2) years' wages. Mr. Scannell's annual base compensation is $200,000, reviewable at least annually, and he may participate in any Company economic benefit plans that exist or may be implemented.

Mr. Brodkey and ICUMO entered into a Management Agreement dated December 15, 2021, for a term of one year with automatic renewals for one-year periods at December 31 of each year, subject to renegotiation within 60 days of the end of any one year period unless earlier terminated, with or without cause, upon notice. Unless terminated for cause or other defined reasons, Mr. Scannell is entitled to severance of one (1) month compensation for each two (2) months of service at the end of the third (3) month of service up to a maximum of two (2) years' wages. Mr. Scannell's annual base compensation is $250,000, payable in a combination of cash, common stock (valued at $0.15 per share) and 5-year warrants (exercisable at $0.15 per share), with payments to be made upon the Company's raising of certain funding amounts, or "Trigger Amounts," as stated in Mr. Brodkey's agreement.

The Company currently has no compensation plans or arrangements.

 ***Compensation Committee***

We do not currently have a compensation committee of the board of directors or a committee performing similar functions. The board of directors as a whole participates in the consideration of executive officer and director compensation.

***Indebtedness of Directors, Senior Officers, Executive Officers and Other Management***

None of our directors or executive officers or any associate or affiliate of our company during the last two fiscal years is or has been indebted to our company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding.

**CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE**

SEC rules require us to disclose any transaction or currently proposed transaction in which the Company is a participant and in which any related person has or will have a direct or indirect material interest involving the lesser of $120,000 or one percent (1%) of the average of the Company's total assets as of the end of last two completed fiscal years. A related person is any executive officer, director, nominee for director, or holder of 5% or more of the Company's common stock, or an immediate family member of any of those persons.

Except as disclosed below, since the beginning of the fiscal year preceding the last fiscal year none of the following persons has had any direct or indirect material interest in any transaction to which our Company was or is a party, or in any proposed transaction to which our Company proposes to be a party:

● any Director or officer of our Company;

● any proposed Director of officer of our Company;

● any person who beneficially owns, directly or indirectly, shares carrying more than 5 percent of the voting rights attached to our Common Stock; or

● any member of the immediate family of any of the foregoing persons (including a spouse, parents, children, siblings, and in-laws).

**Transaction with Crystal Globe**

On November 20, 2020, the Company entered into a Merger Agreement (the "**Merger Agreement**") with Crystal Globe Limited, a British Virgin Islands company which was at that time a majority shareholder the Company and the other parties' signatory thereto. Upon completion of the transactions contemplated by the Merger Agreement, Crystal Globe acquired the Company in consideration for $119,070 in cash.

**Transactions with Jinghe Zhang**

During the years ended December 31, 2021 and 2020, the Company received financial supports of $66,235 and $182,515 from the former CEO and chairman, Mr. Jinghe Zhang. The loans due to him were for daily operating activities without interest charge and due on demand.

On April 28, 2021, the Company entered into an agreement with Mr. Jinghe Zhang to release the Company from $295,928 of indebtedness owed to him.

**Transactions with Joway Shengshi**

Joway Shengshi was one of the Company's subsidiaries but was sold pursuant to the Merger Agreement. Mr. Jinghe Zhang owns 99% of the equity interest in Joway Shengshi. For the years ended December 31, 2021 and 2020, the Company received $3,844 and $0 of advances from Joway Shengshi, respectively, for daily operating activities.

On April 28, 2021, Joway Shengshi released the Company from $463,698 of indebtedness owed to it. As of December 31, 2021 and 2020, the total unpaid principal balance due to Joway Shengshi was $0.

**Transactions with JHP Holdings, Inc.**

The information set forth in the Item 1.01 above is incorporated herein by reference. Pursuant to the Debt Assignment and Release Agreement, on January 23, 2023, JHP Holdings, Inc. a holder of more than five percent (5%) of the issued and outstanding Common Stock, assumed $176,261.07from the Company, which was owed by the Company to a third-party service provider.

**Other Related Party Transactions**

Except as disclosed above, no executive officer, director or any member of these individuals' immediate families, any corporation or organization with whom any of these individuals is an affiliate or any trust or estate in which any of these individuals serve as a trustee or in a similar capacity or has a substantial beneficial interest in is or has been indebted to us at any time since the beginning of our last fiscal year.

**Procedures for Approval of Related Party Transactions**

The Board is charged with reviewing and approving all potential related party transactions. All such related party transactions must then be reported under applicable SEC rules. The Company has not adopted other procedures for review, or standards for approval, of such transactions, but instead review them on a case-by-case basis.

**Director Independence** 

Prior to the Closing, Ramon Lata was the Company's sole officer and director.

Following the Closing, the Board consists of four members, none of whom are independent. The Company is not currently subject to listing requirements of any national securities exchange or inter-dealer quotation system which has requirements that a majority of the board of directors be "independent" and, as a result, the Company is not at this time required to have the Board comprised of a majority of "independent directors."

The Company has no directors that are "independent" as that term is defined in the rules of any national securities exchange. As a result, the Company does not have an audit, compensation or nominating and corporate governance committee. The functions of such committees would perform are performed by the Board as a whole. Consequently, there is a potential conflict of interest in Board decisions that may adversely affect the Company's ability to become a listed security on a national securities exchange and as a result adversely affect the liquidity of the Common Stock.

**LEGAL PROCEEDINGS**

From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business.

Except for the disclosure set forth above under the captions "DESCRIPTION OF BUSINESS – Legal Proceedings", the Company is currently not aware of any pending legal proceedings to which it is a party or of which any of its property is the subject, nor is it aware of any such proceedings that are contemplated by any governmental authority.

**Market Price of and Dividends on the Company's Common Equity and Related Stockholder Matters**

**Market Information**

The Common Stock is currently quoted on the OTC Pink marketplace of OTC Markets Group, Inc., an inter-dealer quotation system, under the symbol "GTVI". However, there is currently only a limited trading market for the Common Stock and there is no assurance that a regular trading market will ever develop.

**Holders**

As of January 23, 2023, there were 449 holders of record of Common Stock, based on information provided by the Company's transfer agent. The holders of Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of Common Stock have no preemptive rights and no right to convert their Common Stock into any other securities. There are no redemption or sinking fund provisions applicable to the Common Stock.

**Dividends**

In January 2022, the Company distributed a special dividend to its minority shareholders in connection with the Merger Agreement. Other than the special distribution in January 2022, the Company does not pay dividends on shares of Common Stock and does not anticipate paying such dividends in the foreseeable future. The declaration of any future cash dividends is at the discretion of the Board and depends upon earnings, if any, capital requirements and financial position, the Company's general economic conditions, and other pertinent conditions.

**Securities Authorized for Issuance Under Equity Compensation Plans**

As of the end of the most recently completed fiscal years, December 31, 2021 or June 30, 2022, the Company did not have any equity compensation plans and have not maintained any such plans since our inception.

**Recent Sales of Unregistered Securities** 

On January 23, 2023, pursuant to the terms of the Share Exchange Agreement, each share of ICUMO's common stock held by the ICUMO Shareholders was exchanged for an aggregate of 182,240,000 Exchange Shares.

This transaction was exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "**Securities Act**") and/or Regulation S promulgated thereunder, as not involving any public offering. None of the securities were sold through an underwriter and, accordingly, there were no underwriting discounts or commissions involved. At the time of their issuance, the 182,240,000 Exchange Shares were deemed to be restricted securities for the purpose of the Securities Act and will bear restrictive legends to that effect.

The information set forth in the Item 1.01 above is incorporated herein by reference.

**Description of Registrant's Securities**

The Company has authorized capital stock consisting of 500,000,000 shares of Common Stock and 10,000,000 shares of preferred stock. As of the date of this Report, the Company has 202,294,000 shares of Common Stock issued and outstanding.

***Common Stock***

 

The holders of outstanding shares of Common Stock are entitled to receive dividends out of assets or funds legally available for the payment of dividends of such times and in such amounts as the board from time to time may determine. Holders of Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. There is no cumulative voting of the election of directors then standing for election. The Common Stock is not entitled to pre-emptive rights and is not subject to conversion or redemption. Upon liquidation, dissolution or winding up of our company, the assets legally available for distribution to stockholders are distributable ratably among the holders of the Common Stock after payment of liquidation preferences, if any, on any outstanding payment of other claims of creditors.

***Warrants***

At the Closing, the Company assumed all ICUMO's obligations pursuant to the 2021 Warrants, which are now exercisable to purchase shares of Common Stock, at an exercise price of $0.15, until December 21, 2024. The Company assumed warrants exercisable for up to 41,540,000 shares of Common Stock.

At the Closing, the Company exchanged the 2023 Warrants for the Replacement Warrants. Pursuant to the Replacement Warrants, the Company warrants to purchase an aggregate of 8,980,000 shares of Common Stock at an exercise price of $0.15 per share until five years from January 9, 2023. The exercise price may be adjusted to account for stock dividends payable in shares of Common Stock, subdivisions, or split-ups of shares of Common Stock or similar corporate events.

***Other Convertible Securities***

At the Closing, the Company exchanged the Notes for Replacement Notes. Pursuant to the Replacement Notes, the Company has outstanding convertible secured promissory notes in the principal amount of $898,000, which are secured by a first priority lien on all of the assets and mining claims of the Company, other than certain patented lode mining claims that represent approximately 7.3% of the CuMo Project. The Replacement Notes are convertible into shares of Common Stock at a conversion price of $0.10 per share. The conversion price can be adjusted based on stock splits, stock combinations, recapitalization or other similar transactions.

As of January 23, 2023, other than the securities described above, the Company does not have any outstanding convertible securities.

***Indemnification of Directors and Officers***

The Company's Articles of Incorporation provide for the elimination or limitation to the fullest extent permitted by Chapter 78 of Nevada Revised Statutes (the "**NRS**") of the liability of directors and officers of the Company. The Articles of Incorporation also provide that the Company will, to the fullest extent permitted by the NRS, indemnify any and all directors and officers whom it shall have power to indemnify under the NRS from and against any and all of the expenses, liabilities, or other matters referred to in or covered by the NRS.

The Company does not currently have directors' and officers' liability insurance; however, it intends to acquire such liability insurance as soon as possible after the Closing.

**Section 3 Securities and Trading Markets**

**Item 3.02 Unregistered Sales of Equity Securities.** 

The information set forth in Item 1.01 and 2.01 above is incorporated herein by reference.

The issuance of the Exchange Shares, as well as the issuance of the Replacement Notes and Warrants, in connection with the Exchange were not registered under the Securities Act, in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act, which exempts transactions by an issuer not involving any public offering, and Regulation D promulgated by the SEC under that section. These securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement and are subject to further contractual restrictions on transfer as described below.

**Section 5 Corporate Governance and Management**

**Item 5.01 Changes In Control of Registrant.**

As a result of the consummation of the transactions contemplated under the Share Exchange Agreement, a change in control of the Company has occurred with the ICUMO Shareholders now owning approximately 90.1% of the issued and outstanding Common Stock

The information set forth in the Item 1.01, Item 2.01, and Item 3.02 above is incorporated herein by reference.

**Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.**

The information set forth in Item 2.01 above is incorporated herein by reference, including, without limitation, the information regarding the departure and election of directors and executive officers of the Company in connection with the Exchange, and the biographical, related party, executive compensation and other information regarding the Company's directors and executive officers.

There are no arrangements or understandings pursuant to which any of the Company's current directors were appointed as a director.

**Item 5.05 Amendments to the Registrant's Code of Ethics, or Waiver of A Provision of the Code of Ethics.**

On May 11, 2012, the Board approved a Code of Ethics which was applicable to officers and senior executives. On January 23, 2023, in connection with the Exchange, the Board adopted a revised and restated Code of Ethics ("**Code of Ethics**"), applicable to all officers and directors. This Code of Ethics embodies the Company's commitment to conduct business in accordance with the highest ethical standards and applicable laws, rules, and regulations.

The Code of Ethics promotes honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest. It promotes full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the SEC and other public communications made by the Company. The Code of Ethics addresses the following areas:

● Honest and Ethical Conduct

● Conflicts of Interest

● Compliance

● Disclosure

● Protection and Proper Use of Company Assets

● Corporate Opportunities

● Confidentiality

● Fair Dealing

● Reporting and Enforcement

The preceding summary of the Code of Ethics does not purport to be complete and is qualified in its entirety by reference to the complete Code of Ethics, a copy of which is filed as Exhibit 14.1 hereto and incorporated herein by reference.

**ITEM 5.06 CHANGE IN SHELL COMPANY STATUS.**

Prior to the Exchange, the Company was a "shell company" (as such term is defined in Rule 12b-2 under the Exchange Act). As a result of the consummation of the transactions contemplated under the Share Exchange Agreement, the Company believes that it is no longer a shell company as that term is defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act.

**ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.**

(a) Financial
 Statements of Businesses Acquired.

In accordance with Item 9.01(a), the audited financial statements of ICUMO for the last two fiscal years ended June 30, 2021 and June 30, 2022 and the accompanying notes and the unaudited financial statements of ICUMO for the three months ended September 30, 2022 with the accompanying notes are included in this Report attached as Exhibit 99.1.

(b) Pro
 Forma Financial Information.

In accordance with Item 9.01(b), the unaudited pro forma condensed combined financial statements for the fiscal year ended June 30, 2022 and as of and for the three months ended September 30, 2022 are included in this Report attached as Exhibit 99.1.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |

---

---

| | |
|:---|:---|
| 2.1\* | [Share Exchange Agreement, by and between Joway Health Group Industries Inc., International CuMo Mining Corporation, and the shareholders of International CuMo Mining Corporation, dated January 23, 2023](ea171459ex2-1_jowayhealth.htm) |
| 4.3 | [Form 2021 Warrant](ea171459ex4-3_jowayhealth.htm) |
| 4.4 | [Form of Replacement Note](ea171459ex4-4_jowayhealth.htm) |
| 4.5 | [Form of Replacement Warrant](ea171459ex4-5_jowayhealth.htm) |
| 4.6 | [Form Lock-Up Agreement](ea171459ex4-6_jowayhealth.htm) |
| 4.7 | [Form of 8.5% Secured Non-Convertible Note](ea171459ex4-7_jowayhealth.htm) |
| 4.8 | [7.5% Secured Note Indenture, dated August 24, 2021, by and between International CuMo Mining Corporation and Computershare Trust Company of Canada](ea171459ex4-8_jowayhealth.htm) |
| 10.1 | [Form Incentive Stock Option Agreement](ea171459ex10-1_jowayhealth.htm) |
| 10.2 | [Debt Assignment and Release Agreement, dated January 23, 2023, by and among Joway Health Industries Group, Inc. and JHP Holdings, Inc.](ea171459ex10-2_jowayhealth.htm) |
| 10.3 | [Option Agreement, dated October 13, 2004, by and between Cumo Molybdenum Mining Inc. and Mosquito Consolidated Gold Mines Limited, as amended January 14, 2005](ea171459ex10-3_jowayhealth.htm) |
| 10.4 | [Mining Claims Agreement, dated July 25, 2017, by and among American CuMo Mining Corporation, International CuMo Mining Corporation, CuMo Molybdenum Mining Inc., Western Geoscience Inc., and Thomas Evans](ea171459ex10-4_jowayhealth.htm) |
| 10.5 | [Special Warranty Deed, between American CuMo Mining Corporation and International CuMo Mining Corporation](ea171459ex10-5_jowayhealth.htm) |
| 10.6 | [Loan Agreement, dated October 31, 2014, as amended March 26, 2015, and January 29, 2016, by and between International CuMo Mining Corporation and La Familia II LLC](ea171459ex10-6_jowayhealth.htm) |
| 10.7 | [MineSense Amenability Test Proposal, dated August 29, 2022, by and between MineSense Technologies Ltd. and International CuMo Mining Corporation](ea171459ex10-7_jowayhealth.htm) |
| 14.1 | [Code of Ethics](ea171459ex14-1_jowayhealth.htm) |
| 23.1 | [Consent of Geologic Systems Ltd. regarding the CuMo Project](ea171459ex23-1_jowayhealth.htm) |
| 96.1 | [Technical Report Summary and Resource Estimate, the CuMo Project, Boise National Forest, Boise County, Idaho, United States](ea171459ex96-1_jowayhealth.htm) |
| 99.1 | [Financial Statements of Businesses Acquired and Pro Forma Financial Information](ea171459ex99-1_jowayhealth.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* The schedules and exhibits to this agreement have been omitted in accordance with Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Dated: January 27, 2023 | By: | /s/ Robert Scannell | /s/ Robert Scannell |
|  |  | Name: | Robert Scannell |
|  |  | Title: | Chief Financial Officer and Treasurer |

---

## Exhibit 2.1

**Exhibit 2.1**

EXECUTION VERSION

**<u>SHARE EXCHANGE AGREEMENT</u>**

This Share Exchange Agreement (this "<u>Agreement</u>") is made and entered into as of January 23, 2023, by and among Joway Health Group Industries Inc., a Nevada corporation (the "<u>Company</u>"), International CuMo Mining Corporation, an Idaho corporation ("<u>ICUMO</u>**"**), and the shareholders of ICUMO listed on <u>Schedule 1</u> attached hereto (collectively, the "<u>Shareholders</u>"). Each of the parties to this Agreement is individually referred to herein as a "<u>Party</u>" and collectively as the "<u>Parties</u>."

**<u>BACKGROUND</u>**

WHEREAS, the Company is a publicly reporting company organized under the laws of the State of Nevada;

WHEREAS, the Shareholders own the issued and outstanding common stock, no par value, of ICUMO (the "<u>ICUMO Shares</u>"), and the Shareholders have agreed to transfer the ICUMO Shares, and all of their rights with respect to such ICUMO Shares, to the Company in exchange for newly issued shares of the Company's common stock, par value $0.001 per share (the "<u>Common Stock</u>") with the result of ICUMO becoming a subsidiary of the Company (the "<u>Exchange</u>"); and

WHEREAS, the Board of Directors of each of the Company and ICUMO has determined that it is desirable to affect the Exchange.

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties intending to be legally bound hereby agree as follows:

ARTICLE I

<u>Exchange of Shares</u>

SECTION 1.01. <u>Exchange by the Shareholders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Upon the terms and subject to the conditions of this Agreement, each Shareholder shall irrevocably assign, transfer, and deliver to the Company at the Closing (as defined in <u>Section 1.02</u>) each ICUMO Share held by such Shareholder as legal and beneficial owner as set forth opposite such Shareholders name on <u>Schedule 1</u> attached hereto and any and all rights associated with such ICUMO Shares held by such Shareholder; and, in exchange therefor, the Company shall allot and issue to each Shareholder such number of shares (rounded to the nearest whole share) of Common Stock (the "<u>Exchange Shares</u>") as is equal to the product of (i) the number of such Shareholder's ICUMO Shares multiplied by (ii) 1.34.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No fractional shares of Common Stock shall be issued in connection with the Exchange, and no certificates or scrip for any such fractional shares shall be issued. The number of shares of Common Stock that would be issued to each Shareholder in connection with the Exchange (after aggregating all fractional shares of Common Stock which would have been issued to such Shareholder) shall be rounded to the next whole share, in lieu of such fractional shares.

EXECUTION VERSION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. From and after the Closing, the Shareholders shall be shareholders of the Company and shall have no rights or interest as a shareholder of ICUMO.

SECTION 1.02. <u>Closing</u>. The closing (the "<u>Closing</u>") of the transactions contemplated by this Agreement is taking place remotely, by electronic exchange of documents, or to the extent such an exchange is not practicable at the offices of the Crone Law Group P.C. in New York, New York, simultaneously with the execution of this Agreement.

SECTION 1.03. <u>Actions at the Closing</u>. Simultaneously with the execution of this Agreement or as soon thereafter as is practicable:

a. The Shareholders shall deliver to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the certificates representing the ICUMO Shares owned by each such Shareholder, duly endorsed or accompanied by stock powers duly executed in blank and otherwise in a form acceptable for transfer on the books of ICUMO, such certificates may be delivered to the Company's registrar or transfer agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. counterparts duly executed by those certain Shareholders listed on <u>Schedule 2(a)(ii)</u> to lock-up agreements in substantially the form attached hereto as <u>Exhibit A</u> (the "<u>Lock-Up Agreements</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. counterparts duly executed by those certain Shareholders listed on <u>Schedule 2(a)(iii)</u> to the convertible promissory notes and warrants in substantially the form attached hereto as <u>Exhibit B</u> and <u>C</u>, respectively (the "<u>Replacement Notes and Warrants</u>").

b. ICUMO shall deliver to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. (x) the balance sheets of ICUMO as of June 30, 2021 and June 30, 2022 and the related statements of income and comprehensive income, shareholders' equity and cash flows for the years then ended, together with the auditor's reports thereon, in each case, audited in accordance U.S. GAAP and applicable Public Company Accounting Oversight Board auditing standards, and (y) the reviewed, unaudited balance sheet of ICUMO and related unaudited statements of operations, cash flows and shareholders' equity for the nine months ended September 30, 2022; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. duly executed counterparts to the Replacement Notes and Warrants by those individuals who are not Shareholders listed on <u>Schedule 2(b)(ii)</u>.

c. The Company shall deliver to ICUMO and the Shareholders, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. duly executed counterparts to the Lock-Up Agreements and the Replacement Notes and Warrants;

EXECUTION VERSION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. duly executed copies of lock-up agreements entered into between the Company, its majority shareholder, certain service providers, and certain holders of options to purchase ICUMO common stock, pursuant to those certain 2022 Incentive Stock Option Agreements, who are not Shareholders and who are listed on <u>Schedule 2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. certificates for the Exchange Shares to the Shareholders in the respective amounts provided for on <u>Schedule 1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. a copy of the pro forma financial statements that comply with the requirements of Regulation S-X under the rules and regulations of the SEC (as defined below).

SECTION 1.04. <u>Effect of Share Exchange</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) After the Closing, ICUMO will continue to conduct its business as a subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The ICUMO Charter Documents (as defined in <u>Section 3.01</u>) in effect at the Closing shall continue as the ICUMO Charter Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the Closing, the Board of Directors of the Company (the "<u>Company Board</u>") shall appoint Robert Scannell, John Moeller, Shaun Dykes, and Andrew Brodkey to the Company Board effective as of the Closing and Ramon Lata, the sole director, shall tender his resignation from the Company Board effective as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the Closing, Ramon Lata shall resign as President, Treasurer, Secretary, Principal Executive Officer and Principal Financial Officer, and the Company Board shall appoint Robert Scannell as Chief Financial Officer and Treasurer, Andrew Brodkey as Chief Operating Officer and Secretary, Steven Rudofsky as Chief Executive Officer and President, and Shaun Dykes as Vice President-Exploration.

ARTICLE II

<u>Representations and Warranties of the Shareholders</u>

As an inducement to the Company to enter into this Agreement, each Shareholder, severally but not jointly, hereby represents and warrants to the Company as follows:

SECTION 2.01. <u>Good Title</u>. Each Shareholder is the record and beneficial owner, and has good, valid, and marketable title to, the ICUMO Shares appearing next to such Shareholder's name on <u>Schedule 1</u>. Each Shareholder has the right and authority to sell and deliver its ICUMO Shares, free and clear of all liens, security interests, pledges, equities and claims of any kind, voting trusts, shareholder agreements and other encumbrances ("<u>Encumbrances</u>") or adverse claims of any nature whatsoever. Upon delivery of any certificate or certificates duly assigned, representing the ICUMO Shares as herein contemplated or upon registering of the Company as the new owner of the ICUMO Shares in the share register of ICUMO, the Company will receive good title to the ICUMO Shares owned by each such Shareholder.

EXECUTION VERSION

SECTION 2.02. <u>Power and Authority</u>. Each Shareholder has the legal power, capacity, and authority to execute and deliver this Agreement and each transaction document to which they are a party, to consummate the transactions contemplated hereunder and thereunder and to perform their respective obligations hereunder and thereunder. This Agreement and each transaction document to which they are a party constitutes a legal, valid, and binding obligation of each such Shareholder, enforceable against each such Shareholder in accordance with the terms hereof and thereof, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws (as defined below) of general applicability relating to or affecting creditors' rights and to general equity principles (assuming due authorization, execution and delivery by the other Parties).

SECTION 2.03. <u>No Conflicts</u>. The execution and delivery by each such Shareholder of this Agreement and each transaction document to which they are a party and the performance by each such Shareholder of its obligations hereunder and thereunder in accordance with the terms hereof and thereof: (i) will not require the consent of any third party or any federal, state, local or foreign government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign ("<u>Governmental Entity</u>") under any statutes, laws, ordinances, rules, regulations, orders, writs, injunctions, judgments, or decrees (collectively, "<u>Laws</u>"); (ii) will not violate any Laws applicable to such Shareholder; and (iii) will not violate or breach any contractual obligation to which such Shareholder is a party.

SECTION 2.04. <u>No Finder's Fee</u>. To the knowledge of each Shareholder, none of the Shareholders have created any obligations for any finder's, investment banker's, or broker's fee in connection with the transactions contemplated by this Agreement that will be the responsibility of ICUMO or the Company.

SECTION 2.05. <u>Purchase Entirely for Own Account.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Shareholder is acquiring the Exchange Shares for its own account as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution, or fractionalization thereof in whole or in part in any transactions that would be in violation of the Securities Act of 1933, as amended (the "<u>Securities Act</u>") or any state securities or "blue-sky" laws. No other Person (as defined below) has a direct or indirect beneficial interest in, and such Shareholder does not have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third party, with respect to, the Exchange Shares or any part thereof that would be in violation of the Securities Act or any state securities or "blue sky" laws or other applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement:

"<u>Person</u>" means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>").

EXECUTION VERSION

SECTION 2.06. <u>No General Solicitation</u>. No Shareholder is receiving the Exchange Shares as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio; or presented at any seminar or similar gathering; or any solicitation of a subscription by a Person, other than Company or ICUMO personnel, previously known to such Shareholder.

SECTION 2.07. <u>Available Information</u>. Each Shareholder has been provided an opportunity for a reasonable period of time prior to the date hereof to obtain additional information concerning the Company and all other information to the extent the Company possesses such information or can acquire it without unreasonable effort or expense. Each Shareholder has reviewed the documents filed by the Company with the United States Securities and Exchange Commission (the "<u>SEC</u>") and has also considered the uncertainties and difficulties frequently encountered by companies such as the Company.

SECTION 2.08. <u>Investment Experience</u>. Each Shareholder, or such Shareholder's professional advisor, has such knowledge and experience in finance, securities, taxation, investments and other business matters as to evaluate investments of the kind described in this Agreement and, if such Shareholder is a resident of Canada, they are "accredited investor" as defined in Canadian National Instrument 45-106.

SECTION 2.09. <u>Non-Registration</u>. Each Shareholder understands that the Exchange Shares have not been registered under the Securities Act and, if issued in accordance with the provisions of this Agreement, will be issued by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of each such Shareholder's representations as expressed herein.

SECTION 2.10. <u>Restricted Securities</u>. Each Shareholder understands that the Exchange Shares are characterized as "restricted securities" under the Securities Act inasmuch as this Agreement contemplates that, if acquired by the Shareholders pursuant hereto, the Exchange Shares would be acquired in a transaction not involving a public offering. The Shareholder further acknowledges that if the Exchange Shares are issued to the Shareholders in accordance with the provisions of this Agreement, such Exchange Shares may not be resold without registration under the Securities Act or the existence of an exemption therefrom. Each Shareholder represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

SECTION 2.11. <u>Status of Shell Company</u>. Each Shareholder acknowledges and understands that the Company is a "shell company", as such term is defined in Rule 12b-2 under the Exchange Act. The Company will cease to be a "shell company" on the Closing, and will then file Form 10 type information under cover of Form 8-K. Pursuant to Rule 144(i), securities issued by a current or former shell company (such as the Exchange Shares) that otherwise meet the holding period and other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 until one year after such company (a) is no longer a shell company; and (b) has filed current "Form 10 information" (as defined in Rule 144(i)) with the SEC reflecting that it is no longer a shell company, and provided that, at the time of a proposed sale pursuant to Rule 144, such company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and has filed all reports and other materials required to be filed by Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding twelve (12) months (or for such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports. As a result, the restrictive legends on certificates for Exchange Shares cannot be removed except in connection with an actual sale meeting the foregoing requirements or pursuant to an effective registration statement.

EXECUTION VERSION

SECTION 2.12. <u>Legends</u>. It is understood that the Exchange Shares will bear the following legend or another legend that is similar to the following:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

and any legend required by the "blue sky" laws of any state to the extent such laws are applicable.

SECTION 2.13. <u>Shareholders Acknowledgment.</u> Each Shareholder acknowledges that it has read the representations and warranties of ICUMO set forth in Article III herein and such representations and warranties are, to the best of their knowledge, true and correct as of the date hereof.

ARTICLE III

<u>Representations and Warranties of ICUMO</u>

ICUMO represents and warrants to the Company, except as set forth in the disclosure schedules provided in connection herewith (the "<u>ICUMO Disclosure Schedules</u>"), as follows:

SECTION 3.01. <u>Organization, Standing and Power</u>. ICUMO is duly incorporated or organized, validly existing and in good standing under the laws of the State of Idaho and has the corporate power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its businesses as presently conducted, other than such franchises, licenses, permits, authorizations and approvals the lack of which, individually or in the aggregate, has not had and would not reasonably be expected to have a material adverse effect on ICUMO, a material adverse effect on the ability of ICUMO to perform its obligations under this Agreement or on the ability of ICUMO to consummate the transactions contemplated by this Agreement (a "<u>ICUMO Material Adverse Effect</u>"). ICUMO is duly qualified to do business in each jurisdiction where the nature of its business or its ownership or leasing of its properties make such qualification necessary, except where the failure to so qualify would not reasonably be expected to have a ICUMO Material Adverse Effect. ICUMO made available to the Company complete and correct copies of the articles of incorporation and bylaws of ICUMO, each as amended to the date of this Agreement (as so amended, the "<u>ICUMO Charter Documents</u>").

EXECUTION VERSION

SECTION 3.02. <u>Capital Structure</u>. The authorized share capital of ICUMO consists of 500,000,000 shares of common stock, no par value per share, 136,000,000 of which are issued and outstanding. All outstanding ICUMO Shares are duly authorized, validly issued, fully paid and non-assessable and subject to, or not issued in violation of, any purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of the applicable corporate laws of its state of incorporation, the ICUMO Charter Documents or any contract to which ICUMO is a party or by which ICUMO is bound. As of the date of this Agreement, there are no outstanding contractual obligations of ICUMO to repurchase, redeem or otherwise acquire any of ICUMO Shares or any capital equity of ICUMO and there are no outstanding contractual obligations of ICUMO to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any other Person. None of the outstanding ICUMO Shares has been issued in violation of any applicable securities Laws. Except as disclosed on <u>Section 3.02 of the ICUMO Disclosure Schedule</u>, there are no outstanding warrants, options, or other convertible securities issuable or convertible for equity interests in ICUMO.

SECTION 3.03. <u>Authority; Execution and Delivery; Enforceability</u>. ICUMO has all requisite corporate power and authority to execute and deliver this Agreement and each transaction document to which it is a party and to consummate the transactions contemplated hereunder and thereunder and to perform its respective obligations hereunder and thereunder. The execution and delivery by ICUMO of this Agreement and any such transaction document, the performance by ICUMO of its obligations hereunder and thereunder and the consummation by ICUMO of the transactions contemplated hereby and thereby have been duly authorized by all requisite action on the part of ICUMO, and this Agreement and each transaction document to which it is a party constitutes a legal, valid and binding obligation of ICUMO, enforceable against ICUMO in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors' rights and to general equity principles (assuming due authorization, execution and delivery by the other Parties).

SECTION 3.04. <u>No Conflicts; Consents</u>. The execution and delivery by ICUMO of this Agreement and each transaction document to which it is a party does not, and the consummation of the transactions contemplated hereby and thereby, and compliance with the terms hereof and thereof, will not conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or result in the creation of any Encumbrance upon any of the properties or assets of ICUMO under any provision of (i) ICUMO Charter Documents, (ii) any contract, lease, license, indenture, note, bond, agreement, permit, concession, franchise or other instrument to which ICUMO is a party or by which any of their respective properties or assets is bound, or (iii) any judgment, order or decree ("<u>Judgment</u>") or Law applicable to ICUMO or its properties or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, have not had and would not reasonably be expected to have a ICUMO Material Adverse Effect.

EXECUTION VERSION

SECTION 3.05. <u>ICUMO Financial Statements</u>. ICUMO has delivered to the Company its balance sheets, statements of operations, statements of shareholders equity, and statements of cash flows for ICUMO's prior two fiscal years audited by a PCAOB registered independent accounting firm, as well as pro forma financial statements of the post-Closing balance sheet of the Company, on a consolidated basis, and such additional information as is required for the Company's Current Report on Form 8-K required in connection with the Closing.

SECTION 3.06. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ICUMO has timely filed, or caused to be timely filed, all material federal, state, local and foreign Tax returns and reports required to be filed by ICUMO (taking into account all available extensions) (collectively, "<u>Tax Returns</u>"), which Tax Returns are true, accurate, correct and complete in all material respects, and has paid, collected or withheld, or caused to be paid, collected or withheld, all material Taxes required to be paid, collected or withheld, other than such Taxes for which adequate reserves in its financial statements have been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement:

"<u>Taxes</u>" includes all forms of taxation, whenever created or imposed, and whether of the United States or elsewhere, and whether imposed by a local, municipal, governmental, state, foreign, federal or other Governmental Entity, or in connection with any agreement with respect to Taxes, including all interest, penalties and additions imposed with respect to such amounts.

SECTION 3.07. <u>Employees and Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for the executives listed on <u>Section 3.07(a) of the ICUMO Disclosure Schedules</u>, ICUMO has no current employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ICUMO does not have or maintain any employee benefit plans (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended), or similar plans under any applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section 3.07(c) of the ICUMO Disclosure Schedules</u> contains a list of all independent contractors (including consultants) currently engaged by ICUMO, along with the position and date of retention, for each such Person. All of such independent contractors are a party to a written agreement or contract with ICUMO. For the purposes of applicable Law, including the Code, all independent contractors who are currently, or within the last three (3) years have been, engaged by ICUMO are bona fide independent contractors and not employees of ICUMO.

EXECUTION VERSION

SECTION 3.08. <u>Litigation</u>. There is no action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or, or, to the knowledge of ICUMO, threatened in writing against ICUMO, or any of its properties before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility ("<u>Action</u>") which (i) adversely affects or challenges the legality, validity or enforceability of any of this Agreement or ICUMO Shares, or (ii) could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a ICUMO Material Adverse Effect. Neither ICUMO nor any director or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim or violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.

SECTION 3.09. <u>Compliance</u>. ICUMO is in compliance with all applicable Laws, except for instances of noncompliance that, individually and in the aggregate, have not had and would not reasonably be expected to have a ICUMO Material Adverse Effect. This <u>Section 3.09</u> does not relate to matters with respect to Taxes, which are the subject of <u>Section 3.06</u>. ICUMO is not (i) in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by ICUMO under), nor has ICUMO received written notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other material agreement to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), or (ii) in violation of any judgment, decree or order of any Governmental Entity.

SECTION 3.10. <u>Brokers; Schedule of Fees and Expenses</u>. Except for Newbridge Securities Corporation, no broker, investment banker, financial advisor or other person is entitled to any broker's, finder's, financial advisor's or other similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of ICUMO.

SECTION 3.11. <u>Title to Properties</u>. ICUMO has all of the rights, titles, and interests in and to the CuMo Project, which project consists of the land and the patented and unpatented mining claims set forth on <u>Section 3.11 of ICUMO Disclosure Schedule</u>. ICUMO has sufficient title to, or valid leasehold interests in, all of its properties and assets used in the conduct of its businesses as currently conducted. All such assets and properties, other than assets and properties in which ICUMO has leasehold interests, are free and clear of all Encumbrances other than as disclosed on <u>Section 3.11 of ICUMO Disclosure Schedule</u>, that, in the aggregate, do not and will not materially interfere with the ability of ICUMO to conduct business as currently conducted.

SECTION 3.12. <u>Insurance</u>. Other than as set forth on <u>Section 3.12 of ICUMO Disclosure Schedule</u>, ICUMO does not hold any insurance policies.

SECTION 3.13. <u>Transactions With Affiliates and Employees</u>. Except as set forth on <u>Section 3.13 of ICUMO Disclosure Schedule</u>, none of the officers or directors of ICUMO is presently a party to any transaction with ICUMO (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of ICUMO, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

EXECUTION VERSION

SECTION 3.14. <u>Investment Company</u>. ICUMO is not, and is not an affiliate of, and immediately following the Closing will not have become, an "investment company" within the meaning of the Investment Seller Act of 1940, as amended.

SECTION 3.15. <u>Disclosure</u>. ICUMO confirms that neither it nor any person acting on its behalf has provided the Shareholders or their agents or counsel with any information that ICUMO believes constitutes material, non-public information, except insofar as the existence and terms of the proposed transactions hereunder may constitute such information and except for information that will be disclosed by the Company under a current report on Form 8-K filed no later than four (4) business days after the Closing. ICUMO understands and confirms that the Company will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All disclosure provided to the Company regarding ICUMO, its business and the transactions contemplated hereby, furnished by or on behalf of ICUMO (including ICUMO's representations and warranties set forth in this Agreement) are, to the knowledge of ICUMO, true and correct in all material respects.

SECTION 3.16. <u>Regulatory Permits</u>. ICUMO possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct its business, except where the failure to possess such permits could not reasonably be expected to result in a ICUMO Material Adverse Effect, and ICUMO has not received any written notice of proceedings relating to the revocation or modification of any such permit.

SECTION 3.17. <u>Intellectual Property</u>. ICUMO has, or has rights to use, all service marks, trade names, copyrights, licenses and other material intellectual property rights and similar rights necessary or required for use in connection with its business and has no other patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses or other intellectual property and similar rights (<u>"Intellectual Property</u>"). ICUMO has not received any written notice alleging that it has infringed, diluted or misappropriated, or, by conducting its business as currently conducted, has infringed, diluted or misappropriated, the Intellectual Property rights of any Person.

EXECUTION VERSION

ARTICLE IV

<u>Representations and Warranties of the Company</u>

The Company represents and warrants to the Shareholders and ICUMO, that, except as set forth in the reports, schedules, forms, statements and other documents filed by the Company with the SEC and publicly available prior to the date of the Agreement (the "<u>Company SEC Documents</u>") or set forth in the disclosure schedule provided in connection herewith (the "<u>Company Disclosure Schedules</u>"), as follows:

SECTION 4.01. <u>Organization, Standing and Power</u>. The Company is duly organized, validly existing and in good standing under the laws of the State of Nevada and has full corporate power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its businesses as presently conducted. The Company is duly qualified to do business in each jurisdiction where the nature of its business or their ownership or leasing of its properties make such qualification necessary and where the failure to so qualify would reasonably be expected to have a Company Material Adverse Effect (as defined in <u>Section 4.03(a)</u>). The Company has delivered to ICUMO true and complete copies of the articles of incorporation of the Company, as amended to the date of this Agreement (as so amended, the "<u>Company Charter</u>"), and the Bylaws of the Company, as amended to the date of this Agreement (as so amended, the "<u>Company Bylaws</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Capital Structure</u>. The authorized capital stock of the Company consists of 500,000,000 shares of common stock, par value $0.001 per share (the "<u>Common Stock</u>"), and 10,000,000 shares of preferred stock, par value $0.001 per share. The shares of Common Stock are on the Pink Current Information Tier operated by the OTC Markets Group. As of the date of this Agreement, there are 20,054,000 shares of Common Stock issued and outstanding. All outstanding shares of Common Stock are, and all Exchange Shares that may be issued as contemplated or permitted by this Agreement will be, when issued, duly authorized, validly issued, fully paid and nonassessable and not subject to any pre-emptive rights, or any similar right under any provision of the relevant laws of the Nevada Revised Statutes, the Company Charter or Company Bylaws, or any contract to which the Company is a party or by which the Company is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as set forth in the Company SEC Documents, there are no (i) outstanding options, warrants, puts, calls, convertible securities, preemptive or similar rights, (ii) bonds, debentures, notes or other indebtedness having general voting rights or that are convertible or exchangeable into securities having such rights, or (iii) except as expressly contemplated by this Agreement, subscriptions or other rights, agreements, arrangements, contracts or commitments of any character, relating to the issued or unissued capital equity of Company or obligating the Company to issue, transfer, deliver or sell or cause to be issued, transferred, delivered, sold or repurchased any options, their respective capital stock or securities convertible into or exchangeable for such shares or interests, or obligating the Company to grant, extend or enter into any such option, warrant, call, subscription or other right, agreement, arrangement or commitment for such capital equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth in in the Company SEC Documents, there are no registration rights, and there is no voting trust, proxy, rights plan, anti-takeover plan or other contracts or understandings to which the Company is a party or by which the Company is bound with respect to any of its capital stock. As a result of the consummation of the Exchange, no shares of capital stock, warrants, options or other securities of the Company are issuable and no rights in connection with any shares, warrants, rights, options or other securities of the Company accelerate or otherwise become triggered (whether as to vesting, exercisability, convertibility or otherwise).

EXECUTION VERSION

SECTION 4.02. <u>Authority; Execution and Delivery; Enforceability</u>. The execution and delivery by the Company of this Agreement and the transaction documents to which it is a party and the consummation by the Company of the transactions contemplated hereunder and thereunder have been duly authorized and approved by the Company Board and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement, such transaction documents, and the transactions contemplated hereby and thereby. This Agreement and each transaction document to which the Company is a party constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors' rights and to general equity principles (assuming due authorization, execution and delivery by the other Parties).

SECTION 4.03. <u>No Conflicts; Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The execution and delivery by the Company of this Agreement and each transaction document to which it is a party does not, and the consummation of the transactions contemplated hereby and thereby, and compliance with the terms hereof and thereof, will not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any person under, or result in the creation of any Encumbrance upon any of the properties or assets of the Company under, any provision of (i) the Company Charter or Company Bylaws, (ii) any contract, lease, license, indenture, note, bond, agreement, permit, concession, franchise or other instrument to which the Company is a party or by which any of its properties or assets is bound or (iii) subject to the filings and other matters referred to in <u>Section 4.03(b)</u>, any Judgment or Law applicable to the Company or its properties or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, have not had and would not reasonably be expected to have a material adverse effect on the Company, a material adverse effect on the ability of the Company to perform its obligations under this Agreement or on the ability of the Company to consummate the transactions contemplated hereby or thereby (a "<u>Company Material Adverse Effect</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No consent of, or registration, declaration or filing with, or permit from, any Governmental Entity is required to be obtained or made by or with respect to the Company in connection with the execution, delivery and performance of this Agreement and the other transaction documents to which it is a party, or the consummation of the transactions contemplated hereby or thereby, other than the (A) filing with the SEC of a Current Report on Form 8-K disclosing the transactions contemplated hereby and thereby, including all required exhibits thereto; and (B) filings under state "blue sky" laws, as each may be required in connection with this Agreement, the other transaction documents to which it is a party, or the consummation of the transactions contemplated hereby or thereby.

EXECUTION VERSION

SECTION 4.04. <u>SEC Documents; Undisclosed and Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of its respective filing date, each Company SEC Document complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder applicable to such Company SEC Document, and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Except to the extent that information contained in any Company SEC Document has been revised or superseded by a later filed Company SEC Document, none of the Company SEC Documents contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the Company SEC Documents comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with the U.S. generally accepted accounting principles ("<u>GAAP</u>") (except, in the case of unaudited statements, as permitted by the rules and regulations of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the financial position of Company as of the dates thereof and the results of its operations and cash flows for the periods shown (subject, in the case of unaudited statements, to normal year-end audit adjustments). The disclosure set forth in the SEC Reports, regarding the Company's business is current and complete and accurately reflects the Company's operations as it exists as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as set forth in the Company SEC Documents, or as disclosed in the Company Disclosure Schedule, the Company has no liabilities or obligations of any nature (whether accrued, absolute, contingent, or otherwise) required by GAAP to be set forth on a balance sheet of the Company or in the notes thereto. The Company SEC Documents, and the Company Disclosure Schedule, if applicable, sets forth all financial and contractual obligations and liabilities (including any obligations to issue capital stock or other securities of the Company) due after the date hereof.

SECTION 4.05. <u>Information Supplied</u>. None of the information supplied or to be supplied by the Company for inclusion or incorporation by reference in any Company SEC Document or report contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading.

SECTION 4.06. <u>Absence of Certain Changes or Events</u>. From the date of the most recent financial statements included in the filed Company SEC Documents to the date of this Agreement, the Company has conducted its business only in the ordinary course, and during such period there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the Company SEC Documents, except changes in the ordinary course of business that have not caused, in the aggregate, a Company Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any damage, destruction or loss, whether or not covered by insurance, that would have a Company Material Adverse Effect;

EXECUTION VERSION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any waiver or compromise by the Company of a valuable right or of a material debt owed to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by the Company, except in the ordinary course of business and the satisfaction or discharge of which would not have a Company Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any material change to a material contract by which the Company or any of its assets is bound or subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any material change in any compensation arrangement or agreement with any employee, officer, director or stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any resignation or termination of employment of any officer of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any loans or guarantees made by the Company to or for the benefit of its employees, officers or directors, or any members of their immediate families, other than travel advances and other advances made in the ordinary course of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any declaration, setting aside or payment or other distribution in respect of any of the Company's capital stock, or any direct or indirect redemption, purchase, or other acquisition of any of such stock by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any alteration of the Company's method of accounting or the identity of its auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any issuance of equity securities to any officer, director or affiliate, except pursuant to existing Company stock option plans; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any arrangement or commitment by the Company to do any of the things described in this <u>Section 4.06</u>.

SECTION 4.07. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has timely filed, or has caused to be timely filed, on its behalf, all Tax Returns required to be filed by it, and all such Tax Returns are true, complete and accurate, except to the extent any failure to file, any delinquency in filing or any inaccuracies in any filed Tax Returns. All Taxes shown to be due on such Tax Returns, or otherwise owed, has been timely paid, except to the extent that any failure to pay, individually or in the aggregate, has not had and would not reasonably be expected to have a Company Material adverse Effect.

EXECUTION VERSION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The most recent financial statements contained in the Company SEC Documents reflect an adequate reserve for all Taxes payable by the Company (in addition to any reserve for deferred Taxes to reflect timing differences between book and Tax items) for all Taxable periods and portions thereof through the date of such financial statements. No deficiency with respect to any Taxes has been proposed, asserted or assessed against the Company, and no requests for waivers of the time to assess any such Taxes are pending.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Encumbrances for Taxes (other than for current Taxes not yet due and payable) on the assets of the Company. The Company is not bound by any agreement with respect to Taxes.

SECTION 4.08. <u>Litigation</u>. Since the date of the Company's quarterly report filed with the SEC on Form 10-Q for the periods ending September 30, 2022, no Action has been filed or threatened in writing which adversely affects or challenges the legality, validity, or enforceability of any of this Agreement, other transaction documents to which the Company is a party, the Common Stock, or the Exchange Shares. Neither the Company nor any director or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim or violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.

SECTION 4.09. <u>Compliance with Applicable Laws</u>. The Company is in compliance with all applicable Laws. The Company has not received any written communication during the past two years from a Governmental Entity that alleges that the Company is not in compliance in any material respect with any applicable Law. The Company is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations thereunder, that are applicable to it, except where such noncompliance could not have or reasonably be expected to result in a Company Material Adverse Effect.

SECTION 4.10. <u>Transactions With Affiliates and Employees</u>. None of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

SECTION 4.11. <u>No Additional Agreements</u>. The Company does not have any agreement or understanding with the Shareholders with respect to the transactions other than as specified in this Agreement.

SECTION 4.12. <u>Investment Company</u>. The Company is not, and is not an affiliate of, and immediately following the Closing will not have become, an "investment company" within the meaning of the Investment Seller Act of 1940, as amended.

SECTION 4.13. <u>Disclosure</u>. The Company confirms that neither it nor any person acting on its behalf has provided ICUMO, the Shareholders or their respective agents or counsel with any information that the Company believes constitutes material, non-public information except insofar as the existence and terms of the proposed transactions hereunder may constitute such information and except for information that will be disclosed by the Company under a current report on Form 8-K filed after the Closing. All disclosure provided to ICUMO and the Shareholders regarding the Company, its business and the transactions contemplated hereby, furnished by or on behalf of the Company (including the Company's representations and warranties set forth in this Agreement) are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

EXECUTION VERSION

SECTION 4.14. <u>Exchange Shares.</u> Upon issue to the Shareholders, the Exchange Shares will be duly and validly issued, fully paid and non-assessable shares of Common Stock.

ARTICLE V

<u>Covenants</u>

SECTION 5.01. <u>Public Announcements</u>. The Company and ICUMO will consult with each other before issuing any press release, and provide each other the opportunity to review and comment upon, any press releases or other public statements with respect to the Agreement and the transactions contemplated hereto and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any national securities exchanges.

SECTION 5.02. <u>Fees and Expenses</u>. All fees and expenses incurred in connection with this Agreement shall be paid by the Party incurring such fees or expenses.

SECTION 5.03. <u>Replacement of Securities</u>. After the Exchange, if any certificate or instrument evidencing any Common Stock held by the Shareholders is mutilated, lost, stolen, or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefore, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Common Stock. If a replacement certificate or instrument evidencing any Common Stock is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

SECTION 5.04. <u>ICUMO Options and Warrants.</u> The Board of Directors of ICUMO and the Company Board have adopted resolutions, and ICUMO and the Company shall take, as applicable, all actions necessary to effect the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Effective as of the Closing, and without any action on the part of the holders of options issued pursuant to those certain 2022 Incentive Stock Option Agreements set forth on <u>Schedule 5.04</u> (the <u>"ICUMO Options</u>"), each ICUMO Option that is outstanding immediately prior to the Closing, whether or not then vested or exercisable, shall be assumed by the Company and converted automatically into an option to purchase shares of Common Stock, with all other terms and conditions of the ICUMO Options remaining substantially identical. As soon as reasonably practicable after the Closing, the Company shall deliver to any holders of ICUMO Options who are not party to this Agreement, an appropriate notice setting forth such holder's rights pursuant to such ICUMO Options.

EXECUTION VERSION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Shareholder, who is also a holder of any warrants issued pursuant to the 2021 Subscription Agreements set forth on <u>Schedule 5.04</u> (the "<u>ICUMO Warrants</u>"), hereby assigns to the Company, and the Company hereby assumes effective as of the Closing, each ICUMO Warrant that has not been exercised prior to the Closing. Each such ICUMO Warrant shall be converted automatically into a warrant to purchase shares of Common Stock, with all other terms conditions of the ICUMO Warrants remaining substantially identical.

SECTION 5.05. <u>Further Action</u>. Each Party shall use commercially reasonable efforts to take or cause to be taken all actions, and do or cause to be done all things, necessary, proper, or advisable on their part under this Agreement and any transaction documents executed in connection hereto, to consummate the transactions contemplated by this Agreement.

SECTION 5.06. <u>Filing of 8-K and Press Release</u>. The Company shall file, no later than four (4) business days after the Closing, a Current Report on Form 8-K with the SEC disclosing the terms of this Agreement and other requisite disclosure regarding the transactions contemplated hereby.

ARTICLE VI

<u>No Survival</u>

SECTION 6.01. <u>No Survival of Representations and Warranties</u>. The Parties agree that the representations and warranties contained in this Agreement shall not survive the Closing, and none of the Parties shall have any liability to each other after the Closing for any breach thereof. The Parties agree that the covenants and agreements contained in this Agreement to be performed at or after the Closing shall survive the Closing, and each Party hereto shall be liable to the other after the Closing for any breach thereof.

EXECUTION VERSION

ARTICLE VII

<u>Miscellaneous</u>

SECTION 7.01. <u>Notices</u>. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by facsimile or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this <u>Section 7.01</u>):

if to the Company, to:

Joway Health Industries Group Inc.

600 South 3rd Street

Las Vegas, Nevada 89101

Attention: Andrew Brodkey<br> Email: [Redacted]

if to ICUMO, to:

International CuMo Mining Corporation

[Redacted]

Attention: Robert Scannell<br> Email:

with a copy to:

The Crone Law Group P.C.

420 Lexington Avenue, Suite 2446

New York, NY 10170

Attention: Tammara Fort, Esq,<br> Email: tfort@cronelawgroup.com

If to the Shareholders to:

[Redacted]

Attention: Robert Scannell<br> Email: [Redacted]

SECTION 7.02. <u>Severability</u>. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

SECTION 7.03. <u>Entire Agreement</u>. This Agreement, the transaction documents delivered in connection with this Agreement, the ICUMO Disclosure Letter, and the Company Disclosure Letter constitute the entire agreement of the Parties hereto and thereto with respect to the subject matter hereof and thereof and supersede all prior agreements and undertakings, both written and oral, among the Parties with respect to the subject matter hereof and thereof.

SECTION 7.04. <u>Assignment</u>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the Parties without the prior written consent of the other Parties, provided, however, that the Company shall have the right to assign this Agreement and its rights hereunder to an affiliate of the Company. Any purported assignment without such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

EXECUTION VERSION

SECTION 7.05. <u>Amendments; Waiver</u>. No provision of this Agreement may be waived or amended except in a written instrument signed by the Parties. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any Party to exercise any right hereunder in any manner impair the exercise of any such right.

SECTION 7.06. <u>Third Parties</u>. Nothing contained in this Agreement or in any instrument or document executed by any Party in connection with the transactions contemplated hereby shall create any rights in, or be deemed to have been executed for, or the benefit of, any Person that is not a Party hereto or thereto or a successor or permitted assign of such a party, unless otherwise specified herein. This Agreement shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person, any legal or equitable right, benefit or remedy of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.

SECTION 7.07. <u>Remedies</u>. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Shareholders, the Company and ICUMO will be entitled to specific performance under this Agreement. The Parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

SECTION 7.08. <u>Governing Law; Venue</u>. This Agreement, the legal relations between the parties and any Action, whether contractual or non-contractual, instituted by any party with respect to any matter arising between the Parties, including matters arising under or in connection with this Agreement, such as the negotiation, execution, interpretation, coverage, scope, performance, breach, termination, validity, or enforceability of this Agreement, shall be governed by and construed in accordance with the internal laws of the State of Nevada without reference to principles of conflicts of laws. The Parties hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of Nevada and the Federal Courts of the United States of America located within Clark County, Nevada with respect to any matter arising between the Parties, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or thereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts, and the Parties irrevocably agree that all claims with respect to such action or proceeding shall be heard and determined in such a Nevada State or Federal court. The Parties hereby consent to and grant any such court jurisdiction over the person of such Parties and over the subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by applicable Law, shall be valid and sufficient service thereof. With respect to any particular Action arising between the Parties, including matters arising under or in connection with this Agreement, venue shall lie solely in any Nevada State or any Federal Court of the United States of America sitting in Clark County, Nevada.

EXECUTION VERSION

SECTION 7.09. <u>Interpretation</u>. When a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference shall be to an Article or Section of, or a Schedule or Exhibit to, this Agreement unless otherwise indicated; whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation;" the headings for this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement; the words "hereof," "herein" and "hereunder" and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement; the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms; any Law defined or referred to herein or in any agreement or instrument that is referred to herein means such Law or statute as from time to time amended, modified or supplemented, including by succession of comparable successor Laws; references to a Person are also to its successors and permitted assigns; the use of "or" is not intended to be exclusive unless expressly indicated otherwise; and references to sums of money are expressed in lawful currency of the United States of America, and "$" refers to U.S. dollars.

SECTION 7.10. <u>Counterparts; Facsimile or Electronic Execution</u>. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties. Facsimile or electronic execution and delivery of this Agreement is legal, valid, and binding for all purposes.

SECTION 7.11. <u>No Strict Construction</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

SECTION 7.12. <u>Legal Advice</u>. Each Party has received independent legal advice from their attorneys with respect to the negotiation of this Agreement and the transactions contemplated hereby and the advisability of executing this Agreement and any related documents.

*[Signature Page Follows]*

EXECUTION VERSION

 

IN WITNESS WHEREOF, the Parties have executed and delivered this Share Exchange Agreement as of the date first above written.

The Company:

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| | |
|:---|:---|
| JOWAY HEALTH INDUSTRIES GROUP INC. | JOWAY HEALTH INDUSTRIES GROUP INC. |
| By: | /s/ Ramon Lata |
| Name: | Ramon Lata |
| Title: | President |

---

ICUMO: INTERNATIONAL CUMO MINING<br> CORPORATION

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| | |
|:---|:---|
| By: | /s/ Steven Rudofsky |
| Name: | Steven Rudofsky |
| Title: | Chief Executive Officer |

---

The Shareholders:

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| | |
|:---|:---|
| By: | /s/ Steven Rudofsky |
| Name: | Steven Rudofsky |
| By: | /s/ Eric Kolodner |
| Name: | Eric Kolodner |

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ELATAMFAMILY TRUST

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| | |
|:---|:---|
| By: | /s/ Mohammed Elatam |
| Name: | Mohammed Elatam |
| Title: | Director |
| By: | /s/ Robert Scannell |
| Name: | Robert Scannell |

---

*[Signature Page to Share Exchange Agreement]*

EXECUTION VERSION

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| | |
|:---|:---|
| Feehan Partners, LLP | Feehan Partners, LLP |
| By: | /s/ Robert Scannell |
| Name: | Robert Scannell |
| Title: | General Partner |
| By: | /s/ Tim Tycholis |
| Name: | Tim Tycholis |
| THE GAITONDE LIVING TRUST | THE GAITONDE LIVING TRUST |
| By: | /s/ Girish Gaitonde |
| Name: | Girish Gaitonde |
| Title: | Trustee |
| By: | /s/ Emile Freemont |
| Name: | Emile Freemont |
| By: | /s/ Andrew A. Brodkey |
| Name: | Andrew Brodkey |
| By: | /s/John Hiner |
| Name: | John Hiner |
| By: | /s/ John Hedges |
| Name: | John Hedges |
| CORE CONSULTANTS PTY (GUERNSEY) LTD. | CORE CONSULTANTS PTY (GUERNSEY) LTD. |
| By: | /s/ Lara Smith |
| Name: | Lara Smith |
| Title: |  |
| MULTI-METAL DEVELOPMENT LTD. | MULTI-METAL DEVELOPMENT LTD. |
| By: | /s/ Shaun Dykes |
| Name: | Shaun Dykes |
| Title: | Chief Executive Officer |

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*[Signature Page to Share Exchange Agreement]*

EXECUTION VERSION

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| | |
|:---|:---|
| By: | /s/ Patricia Czerniej |
| Name: | Patricia Czerniej |
| By: | /s/ James Dykes |
| By: | /s/ Shaun Dykes |
| Name: | Shaun Dykes |
| By: | /s/ Louise Dykes |
| Name: | Louise Dyke |

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*[Signature Page to Share Exchange Agreement]*

EXECUTION VERSION

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| | |
|:---|:---|
| CATALEYA INVESTMENT FOND MANAGEMENT SAS | CATALEYA INVESTMENT FOND MANAGEMENT SAS |
| By: | /s/ Gladis Osorio |
| Name: | Gladis Osorio (for Cataleya Investment Fond Management |
| Title: | Legal Representative / Director |

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*[Signature Page to Share Exchange Agreement]*

## Exhibit 4.3

**Exhibit 4.3**

**THE WARRANTS REPRESENTED HEREBY WILL BE VOID AND OF NO FURTHER VALUE UNLESS EXERCISED WITHIN THE TIME LIMIT HEREIN PROVIDED.** 

**INTERNATIONAL CUMO MINING CORPORATION**

**TRANSFERABLE WARRANT CERTIFICATE** 

Number of Warrants: Date:

Certificate No:

**Warrants to Purchase Common Shares**. For value received by the undersigned, [_____] (the "**Holder**"), is entitled to subscribe for and purchase, subject to the terms hereof, up to : [____] fully-paid and non-assessable common shares (each a "**Common Share**") of **INTERNTATIONAL CUMO MINING CORPORATION** (the "**Corporation**") in lawful money of Canada at any time up to 5:00 p.m. Vancouver time (the "**Time of Expiry**") at a purchase price of **$0.15** per Common Share (the **"Exercise Price**") on or before May 11, 2027 ("**Expiry Date**"), by surrendering this Warrant certificate at the office of the Corporation, 635 Millbank, Vancouver, British Columbia V5Z 4B7, together with a subscription form in the form attached as Schedule "A" hereto duly completed and executed and a certified cheque, bank draft or money order in lawful money of united states payable to or to the order of the Corporation.

1. **Partial Exercise**. The Holder may subscribe for and purchase less than the full number of Common Shares entitled to be subscribed for and purchased hereunder. In the event that the Holder subscribes for and purchases less than the full number of Common Shares entitled to be subscribed for and purchased under this Warrant certificate prior to the Time of Expiry, the Corporation shall issue a new Warrant certificate to the Holder in the same form as this Warrant certificate with appropriate changes to reflect the unexercised balance of the Warrants.

2. **Delivery of Common Shares**. Within five business days of receipt of this Warrant certificate together with a subscription form duly completed and executed in the form attached as Schedule "A" hereto, and such additional documents as may be contemplated thereby, and a certified cheque, bank draft or money order in lawful money of Canada payable to or to the order of the Corporation, the Corporation shall deliver or cause to be delivered to the Holder certificates representing the Common Shares subscribed for and purchased by the Holder hereunder, and a replacement Warrant certificate, if any.

3. **No Rights of Shareholders**. Nothing contained in this Warrant certificate (or in the Warrants evidenced hereby) shall be construed as conferring upon the Holder any right or interest whatsoever as a holder of Common Shares of the Corporation or any other right or interest except as herein expressly provided.

4. **Adjustment of Subscription and Purchase Rights**. From and after the date hereof, the Exercise Price and the number of Common Shares deliverable upon the exercise of the Warrants will be subject to adjustment in the events and in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;(a) In case of any reclassification of the Common Shares or change
of the Common Shares into other shares, or in case of the consolidation, merger, reorganization or amalgamation of the Corporation with
or into any other corporation or entity which results in any reclassification of the Common Shares or a change of the Common Shares into
other shares, or in case of any transfer of the undertaking or assets of the Corporation as an entirety or substantially as an entirety
to another person (any such event being hereinafter referred to as a "**Reclassification of Common Shares** "), at any
time prior to the Time of Expiry, the Holder of Warrants which have not been exercised prior to the effective date of such Reclassification
of Common Shares shall, after the effective date of such Reclassification of Common Shares and upon exercise of the right to purchase
Common Shares hereunder, be entitled to receive, and shall accept, in lieu of the number of Common Shares to which the Holder was theretofore
entitled upon such exercise, the kind and amount of shares and other securities or property which the Holder would have been entitled
to receive as a result of such Reclassification of Common Shares if, on the effective date thereof, the Holder had been the registered
holder of the number of Common Shares to which the Holder was theretofore entitled upon such exercise. If necessary, appropriate adjustments
shall be made in the application of the provisions set forth in this Section 4 with respect to the rights and interests thereafter of
the Holder of this Warrant certificate to the end that the provisions set forth in this Section 4 shall thereafter correspondingly be
made applicable as nearly as may be reasonable in relation to any shares or other securities or property thereafter deliverable upon
the exercise of the Warrants evidenced hereby.

&nbsp;&nbsp;&nbsp;&nbsp;(b) For the purpose of this Section 4: (i) "**Participating Share**" means a share (other than a Common Share) that carries the right to participate in earnings to an unlimited degree;
and (ii) "**Convertible Security**" means a security convertible into or exchangeable for a Common Share or a Participating
Share or both.

&nbsp;&nbsp;&nbsp;&nbsp;(c) If and whenever at any time prior to the Time of Expiry the
Corporation shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subdivide the Common Shares into a greater number of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consolidate the Common Shares into a lesser number of shares;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) issue Common Shares, Participating Shares or Convertible Securities
to all or substantially all of the holders of Common Shares by way of a stock dividend or other distribution on the Common Shares payable
in Common Shares, Participating Shares or Convertible Securities,

(any such event being hereinafter referred to as "**Capital Reorganization**") and any such event results in an adjustment in the Exercise Price pursuant to paragraph (d), the number of Common Shares purchasable pursuant to the Warrants evidenced hereby shall be adjusted contemporaneously with the adjustment of the Exercise Price by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the Exercise Price resulting from such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;(d) If and whenever at any time prior to the Time of Expiry,
the Corporation shall engage in a Capital Reorganization, the Exercise Price shall, on the effective date, in the case of a subdivision
or consolidation, or on the record date, in the case of a stock dividend or other distribution, be adjusted by multiplying the Exercise
Price in effect on such effective date or record date by a fraction: (A) the numerator of which shall be the number of Common Shares
and Participating Shares, if applicable, outstanding before giving effect to such Capital Reorganization; and (B) the denominator of
which is the number of Common Shares and Participating Shares, if applicable, outstanding after giving effect to such Capital Reorganization.
The number of Common Shares and Participating Shares outstanding shall include the deemed conversion into or exchange for Common Shares
or Participating Shares of any Convertible Securities distributed by way of stock dividend or other such distribution. Such adjustment
shall be made successively whenever any event referred to in this paragraph shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent that any adjustment to the Exercise Price or
the number of Common Shares which the Holder is entitled to purchase occurs pursuant to paragraphs (c) and (d) as a result of the Corporation
fixing a record date for the distribution of Convertible Securities,the Exercise Price and the number of Common Shares which the Holder
is entitled to purchase shall be readjusted immediately after the expiration of any relevant exchange or conversion right to the Exercise
Price and the number of Common Shares which the Holder is entitled to purchase which would then be in effect based upon the number of
Common Shares actually issued and remaining issuable after such expiration.

&nbsp;&nbsp;&nbsp;&nbsp;(f) If and whenever at any time prior to the Time of Expiry,
the Corporation shall fix a record date for the issuance of rights, options or warrants (other than the Warrants evidenced hereby) to
all or substantially all the holders of Common Shares entitling them, for a period expiring not more than 45 days after such record date,
to subscribe for or purchase Common Shares, Participating Shares or Convertible Securities at a price per share (or having a conversion
or exchange price per share) which is less than 95% of the Current Market Price of the Common Shares on such record date (any such event
being hereinafter referred to as a "**Rights Offering** "), the Exercise Price shall be adjusted immediately after such
record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the numerator of which shall be the aggregate of: (A) the
number of Common Shares and Participating Shares outstanding on such record date; and (B) a number determined by dividing whichever of
the following is applicable by the Current Market Price of the Common Shares on the record date (subject to Section [  **<u>___</u>** ]
hereof): (1) the amount obtained by multiplying the number of Common Shares or Participating Shares which the Holders of Common Shares
are entitled to subscribe for or purchase by the subscription or purchase price; or (2) the amount obtained by multiplying the maximum
number of Common Shares or Participating Shares which the holders of Common Shares are entitled to receive on the conversion or exchange
of the Convertible Securities by the conversion or exchange price per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the denominator of which shall be the aggregate of: (A) the
number of Common Shares and Participating Shares outstanding on such record date; and (B) whichever of the following is applicable: (1)
the number of Common Shares or Participating Shares which the holders of Common Shares are entitled to subscribe for or purchase; or
(2) the maximum number of Common Shares or Participating Shares which the holders of Common Shares are entitled to receive on the conversion
or exchange of the Convertible Securities,

and if any such event results in an adjustment in the Exercise Price, the number of Common Shares purchasable pursuant to the Warrants evidenced hereby shall be adjusted contemporaneously with the adjustment of the Exercise Price by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the Exercise Price resulting from such adjustment.

Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed.

To the extent that such Rights Offering is not so made or any such rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price and the number of Common Shares purchasable pursuant to the Warrants evidenced hereby shall then be readjusted to the Exercise Price and number of Common Shares which would then be in effect if such record date had not been fixed or if such expired rights, options or warrants had not been issued.

&nbsp;&nbsp;&nbsp;&nbsp;(g) If and whenever at any time prior to the Time of Expiry,
the Corporation shall fix a record date for the distribution to all or substantially all the holders of Common Shares of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shares of any class, whether of the Corporation or any other
corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) rights, options or warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) evidences of indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) other assets or property;

and if such distribution does not constitute a Capital Reorganization, a Rights Offering or the payment of dividends declared by the Corporation in the ordinary course or does not consist of rights, options or warrants entitling the holders of Common Shares to subscribe for or purchase Common Shares, Participating Shares or Convertible Securities for a period expiring not more than 45 days after such record date and at a price per share (or having a conversion or exchange price per share) of at least 95% of the Current Market Price of the Common Shares on such record date (any such non-excluded event being hereinafter referred to as a "**Special Distribution**") the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction: (I) the numerator of which shall be the amount by which (A) the amount obtained by multiplying the number of Common Shares outstanding on such record date by the Current Market Price of the Common Shares on such record date, exceeds (B) the fair market value (as determined by the directors of the Corporation, acting reasonably, which determination shall be conclusive) to the holders of such Common Shares of such Special Distribution; and (II) the denominator of which shall be the total number of Common Shares outstanding on such record date multiplied by such Current Market Price, and if any such event results in an adjustment in the Exercise Price, the number of Common Shares purchasable pursuant to the Warrants evidenced hereby shall be adjusted contemporaneously with the adjustment of the Exercise Price by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the Exercise Price resulting from such adjustment.

Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed.

To the extent that such Special Distribution is not so made or any such rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price and the number of Common Shares purchasable pursuant to the Warrants evidenced hereby shall then be readjusted to the Exercise Price and number of Common Shares which would then be in effect if such record date had not been fixed or if such expired rights, options or warrants had not been issued.

&nbsp;&nbsp;&nbsp;&nbsp;(h) No adjustment pursuant to this Section 4 shall be made in
respect of dividends (payable in cash, Common Shares or Participating Shares) declared payable on the Common Shares in any fiscal year
of the Corporation to the extent that such dividends, when aggregated with any dividends previously declared payable on the Common Shares
in such fiscal year, do not exceed 50% of the aggregate consolidated net income of the Corporation, before extraordinary items, for its
immediately preceding fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;(i) In any case in which this Section 4 shall require that an
adjustment shall become effective immediately after a record date for an event referred to herein, the Corporation may defer, until the occurrence
of such event, issuing to the Holder, upon the exercise of the Warrants evidenced hereby after such record date and before the occurrence
of such event, the additional Common Shares issuable upon such exercise by reason of the adjustment required by such event; provided,
however, that the Corporation shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such
additional Common Shares upon the occurrence of the event requiring such adjustment and the right to receive any distributions made on
such additional Common Shares on and after such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;(j) The adjustments provided for in this Section 4 are cumulative,
shall, in the case of adjustments to the Exercise Price, be computed to the nearest one-tenth of one cent and shall apply (without duplication)
to successive Reclassifications of Common Shares, Capital Reorganizations, Rights Offerings and Special Distributions; provided that,
notwithstanding any other provision of this Section 4, no adjustment of the Exercise Price shall be required unless such adjustment would
require an increase or decrease of at least 1% of the Exercise Price then in effect (except upon a consolidation of the outstanding Common
Shares) (provided, however, that any adjustments which by reason of this paragraph are not required to be made shall be carried forward
and taken into account in any subsequent adjustment).

&nbsp;&nbsp;&nbsp;&nbsp;(k) No adjustment in the number of Common Shares which may be
purchased upon exercise of the Warrants evidenced hereby or in the Exercise Price shall be made pursuant to this Warrant certificate
if the Holder is entitled to participate in such event on the same terms *mutatis mutandis* as if the Holder had exercised the Warrants
evidenced hereby for Common Shares prior to the effective date or record date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;(l) In the event of any question arising with respect to the
adjustments provided in this Section 4, such question shall conclusively be determined by a firm of chartered accountants appointed by
the Corporation and acceptable to the Holder (which firm may be the Corporation's auditors). Such accountants shall have access
to all necessary records of the Corporation and such determination shall be binding upon the Corporation and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;(m) As a condition precedent to the taking of any action which
would require an adjustment in the subscription rights pursuant to the Warrants, including the Exercise Price and the number of such
classes of shares or other securities or property which are to be received upon the exercise thereof, the Corporation shall take all
corporate action which may, in the opinion of counsel, be necessary in order that the Corporation has reserved and there will remain
unissued out of its authorized capital a sufficient number of Common Shares for issuance upon the exercise of the Warrants evidenced
hereby, and that the Corporation may validly and legally issue as fully paid and non-assessable all the shares of such classes or other
securities or may validly and legally distribute the property which the Holder is entitled to receive on the full exercise thereof in
accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;(n) At least 15 days prior to the effective date or record date,
as the case may be, of any event which requires an adjustment in the subscription rights pursuant to this Warrant certificate, including
the Exercise Price and the number and classes of shares or other securities or property which are to be received upon the exercise thereof,
the Corporation shall give notice to the Holder of the particulars of such event and the required adjustment. If it is not reasonably
practicable for the Corporation to give 15 days' notice as aforesaid, the Corporation will give as much notice as is reasonably
practicable in the circumstances.

5. **No Fractional Common Shares**. The Corporation shall not be required to issue fractional Common Shares upon the exercise of the Warrants evidenced hereby and the Holder shall not be entitled to any cash payment or compensation in lieu of a fractional Common Share.

6. **Change; Waiver**. Subject to the approval of the TSXV, the provisions of these Warrants may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to in writing by the Corporation and the holders of at least in 66-2/3 % of the Warrants then outstanding.

7. **Transfer**. The Holder may transfer the Warrants represented hereby by:

&nbsp;&nbsp;&nbsp;&nbsp;(a) duly completing and executing the transfer form attached
as Schedule "B" ()"**Transfer Form** "); and

&nbsp;&nbsp;&nbsp;&nbsp;(b) surrendering this Warrant Certificate and the completed Transfer
Form, together with such other documents as the Corporation may reasonably request, to the Corporation at the address set forth on the
Transfer Form or such other office as may be specified by the Corporation, in a written notice to the Holder, from time to time,

provided that all such transfers shall be effected in accordance with all applicable securities laws, and provided that, after such transfer, the term "Holder" shall mean and include any transferee or assignee of the current or any future Holder. If only part of the Warrants evidenced hereby is transferred, the Corporation will deliver to the Holder and the transferee replacement Warrant Certificates substantially in the form of this Warrant Certificate.

8. **Reservation of Common Shares**. The Corporation will at all times before the Time of Expiry keep available, and reserve if necessary, out of its authorized shares, solely for the purpose of issue upon the exercise of the Warrants represented by this Warrant certificate, such number of Common Shares of the Corporation as shall then be issuable upon the exercise of the Warrants represented by this Warrant certificate. The Corporation covenants and agrees that all Common Shares which shall be so issuable will, upon issuance, be issued as fully paid and non-assessable and free from all liens, charges and encumbrances. The Corporation will use its best efforts to maintain the listing of its Common Shares on the TSXV until the Time of Expiry.

9. **General**.

&nbsp;&nbsp;&nbsp;&nbsp;(a) The headings in this certificate are for reference only and
do not constitute terms of the Warrant certificate.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the singular or masculine is used in this Warrant
certificate the same shall be deemed to include the plural or the feminine or the body corporate as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;(c) This Warrant certificate shall enure to the benefit of and
be binding upon the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Time shall be of the essence of this Warrant certificate.

&nbsp;&nbsp;&nbsp;&nbsp;(e) This Warrant shall be governed by and construed in accordance
with the internal laws of the State of Idaho and the federal laws of United States applicable therein, governing contracts made and to
be performed wholly therein, and without reference to its principles governing the choice or conflict of laws. The parties hereto irrevocably
attorn and submit to the exclusive jurisdiction of the courts of the State of Idaho, sitting in the City of Bosie, with respect to any
dispute related to or arising from this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;(f) All references herein to monetary amounts are references
to lawful money of United States.

&nbsp;&nbsp;&nbsp;&nbsp;(g) All notices or other communications to be given to the Holder
by the Corporation under this Warrant certificate shall be delivered by hand, courier, ordinary prepaid mail or by facsimile; and, if delivered
by hand or ordinary prepaid mail, shall be deemed to have been given on the delivery date and, if sent by facsimile, on the date of transmission
if sent before 5:00 p.m. (local time where the notice is received) on a business day or, if such day is not a business day, on the first
business day following the date of transmission.

Notices to the Holder shall be addressed to the address of the Holder set out on the face page of this Warrant certificate.

All notices or other communications to be given to the Corporation by the Holder under this Warrant certificate shall be delivered by hand, ordinary prepaid mail or courier to the address shown below; and shall be deemed to have been given on the delivery date.

Notices to the Corporation shall be addressed to:

International CuMo Mining Corporation

635 Millbank

Vancouver, BC V5Z 4B7

Attention: Shaun Dykes, President and Chief Executive Officer Email: <u>sdykes@Multmetdev.com</u>

The Corporation and the Holder may change its address for service by notice in writing to the other of them specifying its new address for service under this Warrant certificate.

**[SIGNATURE PAGE FOLLOWS]** 

**SCHEDULE "A"** 

**SHARE PURCHASE WARRANT** 

**<u>SUBSCRIPTION FORM</u>**

(To be signed only upon exercise of Warrants)

**International CuMo Mining Corporation** 

635 Millbank

Vancouver, BC V5Z 4B7

Dear Sirs:

The undersigned hereby exercises the right to purchase and hereby subscribes for ___________ common shares (the "**Common Shares**") of **International CuMo Mining Corporation** (the "**Corporation**") referred to in the Warrant certificate to which this subscription form is attached according to the conditions thereof, and herewith makes payment of the purchase price in full for the Common Shares.

In connection with the exercise of the Warrants, the undersigned hereby represents and certifies that it is not a U.S. person (as defined in Regulation S under the United States *Securities Act of 1933*, as amended (the "**1933 Act**")), (ii) at the time of exercise it is not within the United States (as defined in Regulation S under the 1933 Act), and (iii) it is not exercising any of the Warrants represented by this Warrant certificate by or on behalf of any U.S. person or person within the United States.

If any Warrants represented by this Warrant certificate are not being exercised, a new Warrant certificate will be issued and delivered with the Common Share certificates.

Please issue a certificate for the Common Shares being purchased as follows in the name of the undersigned:

---

| | |
|:---|:---|
| NAME: |  |
|  | (please print) |
| ADDRESS: | |

---

Dated at _________________________, this _______ day of _______________________, 20___.

___________________________________ _____________________________________________ Signature of witness Signature of holder (to be same as appears on face of Warrant certificate) or authorized signatory if a corporation

  <br> Name of holder

**<u>WARRANT TRANSFER FORM</u>**

FOR VALUE RECEIVED, subject to receipt of prior written approval of **International CuMo Mining Corporation** (the "**Corporation**"), the undersigned (the "**Transferor**") hereby sells, assigns and transfers unto (name) ________________________________________________________________________(the "**Transferee**") of **residential address)______________________________________________________________________________a total of ________________Warrants of the Corporation registered in the name of the undersigned represented by the within certificate, and irrevocably appoints the Corporation as the attorney of the undersigned to transfer the said securities on the register of transfers for the said Warrants, with full power of substitution.**

NOTICE: The signature of this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or enlargement or any change whatever, and must be guaranteed by a bank, trust company or a member of a recognized stock exchange. The guarantor must affix a stamp bearing the actual words "Signature Guaranteed".

Dated at _________________________, this _______ day of _______________________, 20___.

---

| | |
|:---|:---|
| Signature Guaranteed | (Signature of transferring Warrant holder) |
|  | Name (please print) |
|  | Address |

---

**<u>TRANSFEREE ACKNOWLEDGMENT</u>**

In connection with this transfer (check one):

☐ The undersigned transferee hereby certifies that (i) it was not offered the Warrants while in the United States and did not execute this certificate while within the United States; (ii) it is not acquiring any of the Warrants represented by this Warrant Certificate by or on behalf of any person within the United States; and (iii) it has in all other respects complied with the terms of Regulation S of United States Securities Act of 1933, as amended (the "**1933 Act**"), or any successor rule or regulation of the United States Securities and Exchange Commission as presently in effect.

☐ The undersigned transferee is delivering a written opinion of U.S. Counsel acceptable to the Corporation to the effect that this transfer of Warrants has been registered under the 1933 Act or is exempt from registration thereunder.

---

| | |
|:---|:---|
| (Signature of Transferee) |  |
| Date | Name of Transferee (please print) |

---

**The Warrants and the common shares issuable upon exercise of the Warrants shall only be transferable in accordance with applicable laws. The Warrants may only be exercised in the manner required by the certificate representing the Warrants and the Warrant Exercise Form attached thereto. Any common shares acquired pursuant to this Warrant shall be subject to applicable hold periods and any certificate representing such common shares will bear restrictive legends.**

## Exhibit 4.4

**Exhibit 4.4**

**FORM OF REPLACEMENT NOTE**

**NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES ACT</u>"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.**

**JOWAY HEALTH INDUSTRIES GROUP INC.**

**Convertible Secured Promissory Note**

---

| | |
|:---|:---|
| Issuance Date: _______**, 2023** | Original Principal Amount: **$_______** |

---

**FOR VALUE RECEIVED, JOWAY HEALTH INDUSTRIES GROUP INC.,** a Nevada corporation (the "<u>Company</u>"), hereby promises to pay to [____] or registered assign (the "<u>Holder</u>"), the amount set out above as the Original Principal Amount when due, whether upon the Maturity Date (as defined below), acceleration or conversion (in each case in accordance with the terms hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>GENERAL TERMS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment of Principal</u>. Unless earlier converted in accordance with the terms hereof, all principal shall be due and payable on the date that is thirty (30) months from the date set out above as the Issuance Date (the "<u>Maturity Date</u>"), unless an Event of Default (as defined below) shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Grant of Security Interest</u>. As collateral security for the satisfaction of all indebtedness evidenced by or arising under this Note, the Company hereby pledges, assigns and grants to the Holder a continuing security interest and lien in all of the Company's right, title and interest in and to the property, whether now owned or hereafter acquired by the Company and whether now existing or hereafter coming into existence or acquired, including the proceeds of any disposition thereof, described on <u>Exhibit B</u> attached hereto and incorporated herein by this reference, *excluding* the following patented lode mining claims that represent approximately 7.3% of the CuMo Project: that acreage located in Section 13, Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey 1706: Blackbird, Red Flag, Enterprise, Enterprise Fraction, Commonwealth, Baby Mine (collectively, the "<u>Collateral</u>"). As applicable, the terms of this Note with respect to the Company's granting of a security interest in the Collateral to the Holder shall be deemed to be a security agreement under applicable provisions of the Uniform Commercial Code ("<u>UCC</u>"), with the Company as the debtor and the Holder as the secured party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Perfection</u>. Upon the execution and delivery of this Note, the Company authorizes the Holder to file such financing statements and other documents in such offices as shall be necessary or as the Holder may reasonably deem necessary to perfect and establish the priority of the liens granted by this Note, including any amendments, modifications, extensions or renewals thereof. The Company hereby agrees, upon the Holder's request, to take all such actions as shall be necessary or as the Holder may reasonably request to perfect and establish the priority of the liens granted by this Note, including any amendments, modifications, extensions or renewals thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Representations and Warranties of the Company</u>. The Company hereby represents and warrants the following to the Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and those persons executing this Note on its behalf have the full right, power, and authority to execute, deliver and perform its obligations under this Note, which are not prohibited or restricted under the Articles of Incorporation or Bylaws of the Company. This Note has been duly executed and delivered by an authorized officer of the Company and constitutes a valid and legally binding obligation of the Company enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The execution of this Note and the Company's compliance with the terms, conditions and provisions hereof does not conflict with or violate any provision of any agreement, contract, lease, deed of trust, indenture, or instrument to which the Company is a party or by which the Company is bound, or constitute a default thereunder or result in the imposition of any lien, charge, encumbrance, claim or security interest of any nature whatsoever upon any of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The security interest granted hereby in and to the Collateral constitutes a present, valid, binding and enforceable security interest as collateral security for its obligations, and, except as to leased equipment or encumbrances previously existing as of the date of this Note, such interests, upon perfection, will be senior and prior to any liens, encumbrances, charges, title defects, interests and rights of any others with respect to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Covenants of the Company</u>. For so long as any obligations pursuant to the terms of this Note remain outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall not sell, assign or transfer any of the Collateral, or any part thereof or interest therein, except in the ordinary course of the business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall pay or cause to be paid promptly when due all taxes and assessments on the Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon written request by the Holder, the Company shall apprise the Holder, in writing, as to the current location of all of the Collateral, providing the Holder with current information with respect to the Collateral so the Holder may perfect and maintain the priority of its security interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Use of Collateral.</u> For so long as no Event of Default shall have occurred and be continuing under this Note, the Company shall be entitled to use and possess the Collateral and to exercise its rights, title and interest in all contracts, agreements, and licenses subject to the rights, remedies, powers and privileges of the Holder under this Note and to such use, possession or exercise not otherwise constituting an Event of Default. The Company shall remain liable to perform its duties and obligations under the contracts and agreements included in the Collateral in accordance with their respective terms to the same extent as if this Note had not been executed and delivered; the exercise by the Holder of any right, remedy, power or privilege in respect of this Note shall not release the Company from any of its duties and obligations under such contracts and agreements; and the Holder shall have no duty, obligation or liability under such contracts and agreements included in the Collateral by reason of this Note, nor shall the Holder be obligated to perform any of the duties or obligations of the Company under any such contract or agreement or to take any action to collect or enforce any claim (for payment) under any such contract or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Prepayment</u>. The Company shall have the right, but not the obligation, to prepay all or any portion of the outstanding Principal Amount and accrued interest thereon, without penalty or premium, upon no less than ten business days' prior notice to the Holder, *provided* that (i) such amount must be paid in cash on the next business day following such ten business day notice period, and (ii) the Holder may still convert this Note pursuant to the terms hereof at all times until such prepayment amount has been received in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>CONVERSION OF NOTE</u>. This Note shall be convertible into shares of common stock, no par value, of the Company (the "<u>Common Stock</u>"), on the terms and conditions set forth in this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Certain Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Conversion Amount</u>" means the portion of the Original Principal Amount and interest to be converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Conversion Price</u>" shall be $0.10 per share of Common Stock. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization or other similar transaction) its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time on or after the Issuance Date combines (by any reverse stock split, or stock combination, recapitalization or other similar transaction) its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased. Any such adjustment shall become effective immediately upon the effectiveness under Idaho law of such subdivision or combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Optional Conversion</u>. At or at any time prior to the Maturity Date, the Holder may, in its sole discretion, determine to convert all or part of the outstanding Principal Amount due hereunder into fully paid and nonassessable shares of Common Stock at the Conversion Price. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this <u>Section 2(b)</u> shall be equal to the quotient of dividing the Conversion Amount by the Conversion Price. The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer agent fees, legal fees, costs, and any other fees or costs that may be incurred or charged in connection with the issuance of shares of the Company's Common Stock to the Holder arising out of or relating to the conversion of this Note; *provided*, *however*, that the Holder shall pay any transfer taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conversion Notice</u>. To convert any portion of this Note into shares of Common Stock at the Maturity Date (a "<u>Conversion Date</u>") pursuant to <u>Section 2(b)</u>, the Holder shall transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 5:30 p.m., Pacific Time, on such date, a copy of an executed notice of conversion in the form attached hereto as <u>Exhibit A</u> (the "<u>Conversion Notice</u>") to the Company. On or before the tenth business day following the date of receipt of a Conversion Notice (the "<u>Share Delivery Date</u>"), the Company shall (i) if legends are not required to be placed on certificates of Common Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 ("<u>Rule 144</u>") and provided that the transfer agent for the Company is participating in the Depository Trust Company's ("<u>DTC</u>") Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system, or (ii) if a restrictive legend is required to be placed on the certificates of Common Stock, issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled, with a restrictive legend imposed thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Book-Entry</u>. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (i) the full Conversion Amount represented by this Note is being converted at the option of the Holder, or (ii) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal Amount converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitations on Conversions or Trading</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Beneficial Ownership</u>. The Company shall not effect any conversions of this Note and the Holder shall not have the right to convert any portion of this Note to the extent that after giving effect to such conversion, the Holder, together with any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder) in excess of 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to such conversion. Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this <u>Section 2(e)(i)</u> applies, the determination of which portion of the Principal Amount of this Note is convertible shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a Principal Amount of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum Principal Amount permitted to be converted on such Conversion Date in accordance with <u>Section 2(b)</u> and, any Principal Amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding under this Note. The provisions of this Section may be waived by the Holder upon written notification to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Other Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of Common Stock issuable upon conversion of all outstanding amounts under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All calculations under this <u>Section 2</u> shall be rounded off to the nearest $0.001.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>EVENTS OF DEFAULT.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An "<u>Event of Default</u>", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company's failure to pay to the Holder any amount of the then outstanding Principal Amount when and as due under this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall commence, or there shall be commenced against the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company, or there is commenced against the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of sixty- one (61) business days; or the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty- one (61) business days; or the Company makes a general assignment for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall default in any of its material obligations under this Note and fails to cure such breach within twenty (20) business days after written notice thereof, specifying the specific breach, from the Holder to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The commencement of any action or proceeding which materially affects the Collateral or title thereto or the interest of the Holder therein, including, but not limited to eminent domain, insolvency, code enforcement or arrangements or proceedings involving a bankrupt or decedent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Rights and Remedies of Holder Upon Default</u>. Upon the occurrence of an Event of Default by the Company under this Note, then, in addition to all other rights and remedies at law or in equity, the Holder may exercise any one or more of the following rights and remedies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accelerate the time for payment of all amounts payable under this Note by written notice thereof to the Company, whereupon all such amounts shall be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Pursue and enforce all of the rights and remedies provided to a secured party with respect to the Collateral under the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Make such appearance, disburse such sums, and take such action as the Holder deems necessary, in its sole discretion, to protect the Holder's interest, including but not limited to (A) disbursement of attorneys' fees, (B) entry upon the Company's property to make repairs to the Collateral, and (C) procurement of satisfactory insurance. Any amounts disbursed by Holder pursuant to this <u>Section 3(b)(iii)</u>, shall become additional indebtedness of the Company secured by the Collateral and shall be immediately due and payable from the date of disbursement. Nothing contained in this Section shall require Holder to incur any expense or take any action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Holder may sell all or any part of the Collateral as a whole or in part either by public auction, private sale, or other method of disposition. The Holder may bid at any public sale on all or any portion of the Collateral. Unless the Collateral threatens to decline speedily in value, the Holder shall give the Company reasonable notice of the time and place of any public sale or of the time after which any private sale or other disposition of the Collateral is to be made, and notice given at least ten days before the time of the sale or other disposition shall be conclusively presumed to be reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Pursue any other rights or remedies available to Holder at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Costs of Collection</u>. Should the indebtedness represented by this Note, or any part hereof, be collected at law, in equity, or in any bankruptcy, receivership or other court proceeding, or this Note be placed in the hands of any attorney for collection after default, the Company agrees to pay, in addition to the principal due hereon, all reasonable attorneys' fees, plus all other costs and expenses of collection and enforcement, including any fees incurred in connection with such proceedings or collection of the Note or enforcement of the Holder's rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>REISSUANCE OF THIS NOTE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assignability.</u> This Note will be binding upon the Company and its successors and will inure to the benefit of the Holder and its successors and assigns and may be assigned by the Holder with prior written consent of the Company, which consent shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Note</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note representing the outstanding Principal Amount hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>APPLICABLE LAW AND VENUE</u>. This Note shall be governed by and interpreted in accordance with the laws of the State of Nevada without regard to the principles of conflict of laws. The parties hereto further agree that any action between them shall be heard exclusively in federal or state court sitting in Washoe County, Nevada, and expressly consent to the jurisdiction and venue of the Supreme Court of Nevada, sitting in Washoe County for the adjudication of any civil action asserted pursuant to this paragraph. THE COMPANY AND THE HOLDER IRREVOCABLY WAIVE ANY AND ALL RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS THIS NOTE OR UNDER ANY OTHER DOCUMENT EXECUTED IN CONNECTION WITH THIS NOTE, OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. THE COMPANY AND THE HOLDER ACKNOWLEDGE THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, AND (III) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>WAIVER</u>. Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>AMENDMENT</u>. The terms of this Note may only be waived or amended by an instrument in writing signed by the Company and the Holders of not less than a majority in aggregate principal amount of the Notes then outstanding.

**[Remainder of Page Intentionally Omitted; Signature Page Follows]**

**IN WITNESS WHEREOF**, the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date set forth above.

---

| |
|:---|
| **JOWAY HEALTH INDUSTRIES GROUP INC.** |
| By: |
| Name: |
| Title: |

---

**EXHIBIT A**

**NOTICE OF CONVERSION**

Joway Health Industries Group Inc.

[______]

Attn: [_____]

The undersigned hereby elects to convert [all] [a portion] of the $[____] Convertible Note issued to [____] on [_____], 2022 into shares of Common Stock of Joway Health Industries Group Inc. according to the conditions set forth in such Note as of the date written below.

By accepting this notice of conversion, you are acknowledging that the number of shares to be delivered represents less than 10% (ten percent) of the common stock outstanding. If the number of shares to be delivered represents more than 9.99% of the common stock outstanding, this conversion notice shall immediately automatically extinguish, and the Holder must be immediately notified.

---

| |
|:---|
| **Date of Conversion:** |
| **Conversion Amount:** |
| **Conversion Price:** |
| **Shares to be Delivered:** |

---

**EIN:**

By:   <br> Name: <br> Title:

**Exhibit B**

**<u>Collateral</u>**

Each and all of the following in which Joway Health Industries Group Inc, a Nevada corporation (the "<u>Company</u>"), or any direct or indirect subsidiary of the Company, has any right, title, or interest, regardless of the manner in which such items are formally held or titled; all as defined in the Nevada Uniform Commercial Code - Secured Transactions (Nevada Revised Statutes ("<u>NRS</u>") §§ 104.9101 et. seq.) as of the date of the Note, and as the same may be amended hereafter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Accounts, as defined in NRS 104.9102(1)(b)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Cash proceeds, as defined in NRS 104.9102(1)(i)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Chattel paper, as defined in NRS 104.9102(1)(k)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Commercial tort claims, as defined in NRS 104.9102(1)(m)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Commodity accounts and commodity contracts, as defined in NRS 104.9102(1)(n) and NRS 104.9102(1)(o), respectively,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Deposit accounts, as defined in NRS 104.9102(1)(cc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Documents, as defined in NRS 104.9102(1)(dd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Electronic chattel paper, as defined in NRS 1049102(1)(ee)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Equipment, as defined in NRS 104.9102(1)(gg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) General intangibles, as defined in NRS 104.9102(1)(pp)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Goods, as defined in NRS 104.9102(1)(qq)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Instruments, as defined in NRS 104.9102(1)(tt)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Inventory, as defined in NRS 104.9102(1)(uu)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Investment property, as defined in NRS 104.9102(1)(vv)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Letter-of-credit right, as defined in NRS 104.9102(1)(xx)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Noncash proceeds, as defined in NRS 104.9102(1)(eee)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Payment intangible, as defined in NRS 104.9102(1)(hhh)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Proceeds, as defined in NRS 104.9102(1)(kkk)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) Promissory notes, as defined in NRS 104.9102(1)(lll)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) Record, as defined in NRS 104.9102(1)(qqq)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) Software, as defined in NRS 104.9102(1)(www)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) Supporting obligations, as defined in NRS 104.9102(1)(yyy)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) Tangible chattel paper, as defined in NRS 104.9102(1)(zzz)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) The following, as defined in NRS 104.9102(2): certificated securities, contracts for sale, leases, lease agreements, lease contracts, leasehold interests, letters of credit, negotiable instruments, notes, proceeds of letters of credit, securities, security certificates, security entitlements, and uncertificated securities.

The Collateral shall specifically *exclude* the following patented lode mining claims that represent approximately 7.3% of the CuMo Project: that acreage located in Section 13, Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey 1706: Blackbird, Red Flag, Enterprise, Enterprise Fraction, Commonwealth, Baby Mine

## Exhibit 4.5

**Exhibit 4.5**

**FORM OF REPLACEMENT WARRANT**

**THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS SUCH SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS IN ACCORDANCE WITH SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.**

**Warrant No. _________**

**No. of Shares of Common Stock: __________**

**WARRANT**

**to Purchase Common Stock of**

**JOWAY HEALTH INDUSTRIES GROUP INC.<br> a Nevada Corporation**

This Warrant certifies that __________________ ("<u>Buyer</u>"), is entitled to purchase Joway Health Industries Group Inc., a Nevada corporation (the "<u>Company</u>"), ________________shares of Common Stock (or any portion thereof) at an exercise price of $0.15 per share of Common Stock, for a period of five (5) years from the date hereof, all on the terms and conditions hereinafter provided.

Section 1. <u>Certain Definitions</u>. As used in this Warrant, unless the context otherwise requires:

"<u>Articles</u>" shall mean the Articles of Incorporation of the Company, as in effect from time to time.

"<u>Common Stock</u>" shall mean the Company's authorized common stock, $0.001 par value per share.

"<u>Exercise Price</u>" shall mean the exercise price per share of Common Stock set forth above, as adjusted from time to time pursuant to <u>Section 3</u> below.

"<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended.

"<u>Warrant</u>" shall mean this Warrant and all additional or new warrants issued upon division or combination of, or in substitution for, this Warrant. All such additional or new warrants shall at all times be identical as to terms and conditions and date, except as to the number of shares of Common Stock for which they may be exercised.

"<u>Warrant Stock</u>" shall mean the shares of Common Stock purchasable by the holder of this Warrant upon the exercise of such Warrant.

"<u>Warrantholder</u>" shall mean the Buyer, as the initial holder of this Warrant, and its nominees, successors or assigns, including any subsequent holder of this Warrant to whom it has been legally transferred.

Section 2. <u>Exercise of Warrant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At any time during the five (5) years following the date hereof, the Buyer may at any time and from time to time exercise this Warrant, in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) The Warrantholder shall exercise this Warrant by means of delivering to the Company at its office identified in <u>Section 14</u> below (A) a written notice of exercise, including the number of shares of Warrant Stock to be delivered pursuant to such exercise, (B) this Warrant, and (C) payment equal to the Exercise Price in accordance with <u>Section 2(b)(ii)</u>. In the event that any exercise shall not be for all shares of Warrant Stock purchasable hereunder, the Company shall deliver to the Warrantholder a new Warrant registered in the name of the Warrantholder, of like tenor to this Warrant and for the remaining shares of Warrant Stock purchasable hereunder, within ten (10) days of any such exercise. Such notice of exercise shall be in the subscription form set out at the end of this Warrant (the "<u>Subscription Form</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Warrantholder may elect to pay the Exercise Price to the Company either by cash, certified check or wire transfer. At all times prior to the effective date of such registration statement, the Warrantholder may elect to pay the Exercise Price either: (A) to the Company either by cash, certified check or wire transfer; or (B) in lieu of cash exercising this Warrant, the Holder of this Warrant may also elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the Holder hereof a number of Shares computed using the following formula:

X = Y(A-B)/A

---

| | | |
|:---|:---|:---|
| Where | X -- | The number of shares of Common Stock to be issued to the Warrant holder. |
|  | Y -- | The number of shares of Common Stock purchasable under this Warrant. |
|  | A -- | The fair market value of one share of Common Stock. |
|  | B -- | The Exercise Price (as adjusted to the date of such calculations). |

---

For purposes of this <u>Section 2(b)(ii)</u>, the fair market value of the Common Stock, if publicly traded, shall be the five-day average of the reported closing price each day of the Common Stock for the five days immediately preceding the exercise of this Warrant. If the Common Stock is not publicly traded, their fair market value shall be the price per share that the Company could obtain from a willing buyer for shares of Common Stock sold by the Company from authorized but unissued shares, as such prices shall be determined by reference to the most recent sale or issuance by the Company of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon exercise of this Warrant and delivery of the Subscription Form with proper payment relating thereto, the Company shall cause to be executed and delivered to the Warrantholder a certificate or certificates representing the aggregate number of fully paid and nonassessable shares of Common Stock issuable upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The stock certificate or certificates for Warrant Stock to be delivered in accordance with this <u>Section 2</u> shall be in such denominations as may be specified in said notice of exercise and shall be registered in the name of the Warrantholder or such other name or names as shall be designated in said notice. Such certificate or certificates shall be deemed to have been issued and the Warrantholder or any other person so designated to be named therein shall be deemed to have become the holder of record of such shares, including to the extent permitted by law the right to vote such shares or to consent or to receive notice as stockholders, as of the time said notice is delivered to the Company as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall pay all expenses payable in connection with the preparation, issue and delivery of stock certificates under this <u>Section 2</u>, including any transfer taxes resulting from the exercise of the Warrant and the issuance of Warrant Stock hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In no event shall any fractional share of Common Stock of the Company be issued upon any exercise of this Warrant. If, upon any exercise of this Warrant, the Warrantholder would, except as provided in this paragraph, be entitled to receive a fractional share of Common Stock, then the Company shall deliver in cash to such holder an amount equal to such fractional interest.

Section 3. <u>Adjustment of Exercise Price and Warrant Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time prior to the Expiration Date, the number of outstanding shares of Common Stock is (i) increased by a stock dividend payable in shares of Common Stock or by a subdivision or split-up of shares of Common Stock, or (ii) decreased by a combination of shares of Common Stock, then, following the record date fixed for the determination of holders of Common Stock entitled to receive the benefits of such stock dividend, subdivision, split-up, or combination, the Exercise Price shall be adjusted to a new amount equal to the product of (A) the Exercise Price in effect on such record date, and (B) the quotient obtained by dividing (x) the number of shares of Common Stock outstanding on such record date (without giving effect to the event referred to in the foregoing clause (i) or (ii)), by (y) the number of shares of Common Stock which would be outstanding immediately after the event referred to in the foregoing clause (i) or (ii), if such event had occurred immediately following such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon each adjustment of the Exercise Price as provided in <u>Section 3(a)</u>, the Warrantholder shall thereafter be entitled to subscribe for and purchase, at the Exercise Price resulting from such adjustment, the number of shares of Warrant Stock equal to the product of (i) the number of shares of Warrant Stock existing prior to such adjustment, and (ii) the quotient obtained by dividing (A) the Exercise Price existing prior to such adjustment by (B) the new Exercise Price resulting from such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, at any time prior to the Expiration Date, there occurs an event which would cause the automatic conversion ("<u>Automatic Conversion</u>") of the Warrant Stock into shares of the Company's common stock ("<u>Common Stock</u>") in accordance with the Articles, then any Warrant shall thereafter be exercisable, prior to the Expiration Date, into the number of shares of Common Stock into which the Warrant Stock would have been convertible pursuant to the Charter if the Automatic Conversion had not taken place.

Section 4. <u>Division and Combination</u>. This Warrant may be divided or combined with other Warrants upon presentation at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Warrantholder or its agent or attorney. The Company shall pay all expenses in connection with the preparation, issue and delivery of Warrants under this <u>Section 4</u>, including any transfer taxes resulting from the division or combination hereunder. The Company agrees to maintain at its aforesaid office books for the registration of the Warrants.

Section 5. <u>Reclassification or Change of Common Stock</u>. In case of any reclassification or change of the outstanding Common Stock of the Company (other than as a result of a subdivision, combination or stock dividend) at any time prior to the Expiration Date, then, as a condition of such reclassification or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company shall be delivered to the Warrantholder, so that the Warrantholder shall have the right prior to the Expiration Date to purchase, at a total price not to exceed that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable upon such reclassification or change by a holder of the number of shares of Common Stock of the Company which might have been purchased by the Warrantholder immediately prior to such reclassification or change, in any such case appropriate provisions shall be made with respect to the rights and interest of the Warrantholder to the end that the provisions hereof (including provisions for the adjustment of the Exercise Price and of the number of shares purchasable upon exercise of this Warrant) shall thereafter be applicable in relation to any shares of stock and other securities and property thereafter deliverable upon exercise hereof.

Section 6. <u>Reservation and Authorization of Capital Stock</u>. The Company shall at all times reserve and keep available for issuance such number of its authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all outstanding Warrants.

Section 7. <u>Stock and Warrant Books</u>. The Company will not at any time, except upon dissolution, liquidation or winding up, close its stock books or Warrant books so as to result in preventing or delaying the exercise of any Warrant.

Section 8. <u>Limitation of Liability</u>. No provisions hereof, in the absence of affirmative action by the Warrantholder to purchase Warrant Stock hereunder, shall give rise to any liability of the Warrantholder to pay the Exercise Price or as a stockholder of the Company (whether such liability is asserted by the Company or creditors of the Company).

Section 9. <u>Transfer</u>. Subject to compliance with the Securities Act and the applicable rules and regulations promulgated thereunder, this Warrant and all rights hereunder shall be transferable in whole or in part. Any such transfer shall be made at the office or agency of the Company at which this Warrant is exercisable, by the registered holder hereof in person or by its duly authorized attorney, upon surrender of this Warrant together with the assignment hereof properly endorsed, and promptly thereafter a new warrant shall be issued and delivered by the Company, registered in the name of the assignee. Until registration of transfer hereof on the books of the Company, the Company may treat the Buyer as the owner hereof for all purposes.

Section 10. <u>Investment Representations; Restrictions on Transfer of Warrant Stock</u>. Unless a current registration statement under the Securities Act shall be in effect with respect to the Warrant Stock to be issued upon exercise of this Warrant, the Warrantholder, by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, and at the time of any proposed transfer of Warrant Stock acquired upon exercise hereof, such Warrantholder will deliver to the Company a written statement that the securities acquired by the Warrantholder upon exercise hereof are for the account of the Warrantholder or are being held by the Warrantholder as trustee, investment manager, investment advisor or as any other fiduciary for the account of the beneficial owner or owners for investment and are not acquired with a view to, or for sale in connection with, any distribution thereof (or any portion thereof) and with no present intention (at any such time) of offering and distributing such securities (or any portion thereof).

Section 11. <u>Loss, Destruction of Warrant Certificates</u>. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity and/or security satisfactory to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of shares of Common Stock.

Section 12. <u>Amendments</u>. The terms of this Warrant may be amended, and the observance of any term herein may be waived, but only with the written consent of the Company and the Warrantholder.

Section 13. <u>Notices Generally</u>. Any notice, request, consent, other communication or delivery pursuant to the provisions hereof shall be in writing and shall be sent by one of the following means: (i) by registered or certified first class mail, postage prepaid, return receipt requested; (ii) by facsimile transmission with confirmation of receipt; (iii) by nationally recognized courier service guaranteeing overnight delivery; or (iv) by personal delivery, and shall be properly addressed to the Warrantholder at the last known address or facsimile number appearing on the books of the Company, or, except as herein otherwise expressly provided, to the Company at its principal executive office, or such other address or facsimile number as shall have been furnished to the party giving or making such notice, demand or delivery.

Section 14. <u>Successors and Assigns</u>. This Warrant shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective permitted successors and assigns.

Section 15. <u>Governing Law; Venue</u>. In all respects, including all matters of construction, validity and performance, this Warrant and the obligations arising hereunder shall be governed by, and construed and enforced in accordance with the laws of the State of Nevada. Any action arising under or related to this Warrant or the Warrant Stock shall be heard exclusively in federal or state court sitting in Washoe County, Nevada, and expressly consent to the jurisdiction and venue of the state or federal courts sitting in Washoe County, Nevada for the adjudication of any civil action asserted pursuant to this paragraph. THE COMPANY AND THE WARRANTHOLDER IRREVOCABLY WAIVE ANY AND ALL RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS THIS NOTE OR UNDER ANY OTHER DOCUMENT EXECUTED IN CONNECTION WITH THIS NOTE, OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. THE COMPANY AND THE HOLDER ACKNOWLEDGE THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, AND (III) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY. The Company and the Warrantholder hereby irrevocably waive personal service of process and consents to process being served in any suit, action or proceeding in connection with this Warrant by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in its name by its President.

Dated: January ___, 2023

---

| | |
|:---|:---|
| J**oway Health Group Industries Inc.**, | J**oway Health Group Industries Inc.**, |
| a Nevada corporation | a Nevada corporation |
| By: |  |
| Name: | Ramon Lata |
| Title: | President |

---

**<u>SUBSCRIPTION FORM</u>**

(to be executed only upon exercise of Warrant)

**To: JOWAY HEALTH GROUP INDUSTRIES INC.**

&nbsp;&nbsp;&nbsp;&nbsp;1. The undersigned, pursuant to the provisions set forth in the attached Warrant (No. __), hereby irrevocably elects to purchase __________ shares of the Common Stock covered by such Warrant pursuant to the terms of the attached Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;2. Method of Exercise (Please initial the applicable blank):

☐ The undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders herewith or by concurrent wire transfer payment in full for the purchase price of the shares of Common Stock being purchased.

☐ The undersigned elects to exercise the attached Warrant by means of the net exercise provisions of Section 2(b)(ii)(B) of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;3. Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

---

| | | |
|:---|:---|:---|
| Dated: | <u> </u> | Name: |
| | | Signature: |
| | | Address: |

---

## Exhibit 4.6

**Exhibit 4.6**

**FORM OF LOCK-UP AGREEMENT**

[Date]

Joway Health Industries Group Inc.

600 South 3rd Street

Las Vegas, Nevada 89101

Re: <u>Joway Health Industries Group Inc. - Lock-Up/Leak-Out Agreement</u>

Ladies and Gentlemen:

This Lock-Up/Leak-Out Agreement (this "<u>Agreement</u>") is being delivered to you in connection with that certain Share Exchange Agreement (the "<u>Share Exchange Agreement</u>") to be entered into, by and among Joway Health Group Industries Inc., a Nevada corporation (the "<u>Company</u>"), International CuMo Mining Corporation, an Idaho corporation ("<u>ICUMO</u>**"**), and the shareholders of ICUMO listed on <u>Schedule 1</u> attached thereto (collectively, the "<u>Shareholders</u>") pursuant to which the Company will acquire all of the issued and outstanding equity of ICUMO in exchange for shares of the Company's common stock, par value $0.001 per share (the "<u>Common Stock</u>").

[As consideration under the Share Exchange Agreement, the undersigned, as a Shareholder, will be issued shares of Common Stock.] [As the holder of [___] shares of Common Stock (the "<u>Undersigned's Shares</u>"), the undersigned agreed, as an inducement to the Company, ICUMO and the Shareholders to enter into the Share Exchange Agreement, to restrict the sale, assignment, transfer, encumbrance, or other disposition of the Undersigned's Shares as hereinafter provided.]

[As an inducement for the Company, ICUMO and the Shareholders to enter into the Share Exchange Agreement, the undersigned hereby agrees to restrict the sale, assignment, transfer, encumbrance, or other disposition of the Undersigned's Shares that will be acquired pursuant to the terms of the Share Exchange Agreement, as hereinafter provided.]

[As used herein, "<u>Undersigned's Shares</u>**"** means: (i) all shares of Common Stock issued pursuant to the Share Exchange Agreement, and (ii) any warrants exercisable for, or options to purchase, shares of the common stock of ICUMO that (a) are currently owned directly by the undersigned (including holding as a custodian), or with respect to which the undersigned has beneficial ownership within the rules and regulations of the Securities and Exchange Commission and (b) will be assumed by the Company at or after the closing of the transactions contemplated under the Share Exchange Agreement (the "<u>Closing</u>").]

In consideration of the premises and of the terms and conditions contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

<u>Lock-Up</u>. Commencing on the Closing until either (i) the eighteen (18) month anniversary of the Closing, or (ii) if a listing of the Common Stock on a National Exchange occurs during such eighteen month period, then ninety (90) days after such listing, so long as such ninety-day period does not extend more than ninety days past the end of the eighteen month period under clause (i) (the "<u>Lock-Up Period</u>"), the undersigned will not, and will cause all affiliates (as defined in Rule 144 promulgated under the 1933 Act) of the undersigned not to, (a) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase, make any short sale or otherwise dispose of or agree to dispose of, directly or indirectly, any of the Undersigned's Shares, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities and Exchange Act of 1934, as amended and the rules and regulations of the Securities and Exchange Commission promulgated thereunder with respect to any of the Undersigned's Shares, or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Undersigned's Shares, whether any such transaction is to be settled by delivery of such securities, in case or otherwise. The foregoing sentence shall not apply to the exercise of options or warrants or the conversion of a security outstanding as of the date hereof; *provided*, *however*, that the undersigned agrees that the foregoing sentence shall apply to any securities issued by the Company to the undersigned upon such an exercise or conversion.

The foregoing restriction is expressly agreed to preclude the undersigned, and any affiliate of the undersigned and any person in privity with the undersigned from engaging in any hedging or other transaction which is designed to, or which reasonably could be expected to, lead to, or result in a sale or disposition of the Undersigned's Shares even if the Undersigned's Shares would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include, without limitation, any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to any of the Undersigned's Shares or with respect to any security that includes, relates to, or derives any significant part of its value from the Undersigned's Shares.

Notwithstanding the foregoing, the undersigned may transfer the Undersigned's Shares (i) as a *bona fide* gift or gifts, provided that the donee or donees thereof agree to be bound in writing by the restrictions set forth herein, or (ii) to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value. For purposes of this Agreement, "immediate family" shall mean any relationship by blood, marriage, or adoption, not more remote than first cousin. The undersigned now has, and, except as contemplated by the immediately preceding sentence, for the duration of this Agreement will have, good and marketable title to the Undersigned's Shares, free and clear of all liens, encumbrances, and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent (the "<u>Transfer Agent</u>") and registrar against the transfer of the Undersigned's Shares except in compliance with the foregoing restrictions.

In order to enforce this covenant, the Company shall impose irrevocable stop-transfer instructions preventing the Transfer Agent from effecting any actions in violation of this Agreement.

<u>Leak-Out</u>. For a period of one year after the end of the Lock-Up Period, the undersigned agrees to limit the resales of the Undersigned's Shares in the public market to five percent of the trailing ten (10) day average trading volume of the Common Stock. If the undersigned violates this Leak-Out provisions, the Company shall be entitled to the profits made by the undersigned on any trades made in violation of this Leak-Out provision and the undersigned hereby agrees that such remedy is not a penalty and is equitable relief commensurate with the harm done to the Company.

<u>Termination</u>. This Agreement will terminate ninety (90) days after the occurrence of any of the following events: (i) if two of the three current Chief Executive Officer, Chief Operations Officer and Chief Financial Officer are terminated by the Company or resign; (ii) if the Company is late in two out of three consecutive 10K or 10Q filings with the Securities and Exchange Commission; (iii) if the Company's auditor resigns over concerns tied to any material misstatements or weaknesses in the financial reporting by the Company; (iv) if the Company concludes a financing after the Closing wherein there is any feature of the securities offered that has a "variable conversion", "variable discount to market", "anti-dilution", "make-whole provision" or mechanism (including in any warrants that may be part of a unit structure) or other terms that would make such financing "toxic"; or (v) a change of control of the Company by way of a merger or consolidation to which the Company is a party and is not the surviving entity, or by way of any sale, transfer, assignment, or other disposition, whether by operation of law or otherwise, of the outstanding voting stock or other securities of the Company, which results in any single third party (or group of third parties acting in concert) owning directly or indirectly a majority of voting stock or other securities then outstanding of the Company.

The undersigned acknowledges that the execution, delivery, and performance of this Agreement is a material inducement to the Company to complete the transactions contemplated by the Share Exchange Agreement and that the Company shall be entitled to specific performance of the undersigned's obligations hereunder. The undersigned hereby represents that the undersigned has the power and authority to execute, deliver and perform this Agreement, that the undersigned has received adequate consideration therefor and that the undersigned will directly benefit from the closing of the transactions contemplated by the Share Exchange Agreement.

The undersigned understands and agrees that this Agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors, and assigns. No provision of this Agreement may be waived or amended except in written instrument signed by a majority of the Board of Directors of the Company and the undersigned and consented to in writing by JHP Holdings, Inc., so long as it continues to hold more than 50% of the number of shares held by it at the Closing, after having given effect to the share exchange contemplated by the Share Exchange Agreement.

This Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered one and the same instrument.

This Agreement will be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to any choice of law or conflicting provision or rule (whether of the State of Nevada, or any other jurisdiction) that would cause the laws of any jurisdiction other than the State of Nevada to be applied. In furtherance of the foregoing, the internal laws of the State of Nevada will control the interpretation and construction of this Agreement, even if under such jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

 

*[Remainder of page intentionally left blank]*

---

| |
|:---|
| Very truly yours, |
| Exact Name of Shareholder |
| Authorized Signature |
| Title |

---

Agreed to and Acknowledged:

**JOWAY HEALTH INDUSTIES GROUP INC.**

By:  <br> Name: <br> Title:

[Signature Page to Lock-Up Agreement – Shareholderst]

## Exhibit 4.7

**Exhibit 4.7**

**8.5% SECURED NOTE**

**IDAHO CUMO MINING CORPORATION**

a corporation organized under the laws of the State of Idaho

---

| | | | |
|:---|:---|:---|:---|
| **Date of Issue:** | **[Date]** | **Principal Amount:** | **[Amount]** |
| **Interest Rate:** | **8.75% per annum** | **Certificate Number:** | **[Number]** |

---

**IDAHO CUMO MINING CORPORATION** (the "**Corporation**"), a corporation incorporated under the laws of the State of Idaho and a subsidiary of American CuMo Mining Corporation ("**American CuMo**"), a company incorporated under the laws of British Columbia, of 638 Millbank, Vancouver, British Columbia, V5Z 4B7, for value received, hereby acknowledges itself indebted to and promises to pay to __[Holder]__ (the "**Holder**") on December 21, 2024 (the "**Maturity Date**") or on such earlier date as the principal hereof becomes payable in accordance with the provisions of this Note (as defined herein), on presentation and surrender of this Note, the Principal Amount of $50,000 in lawful money of the United States of America, at the address of the Holder set forth on the Note Register to be maintained by the Corporation, and to pay interest on such Principal Amount, all as provided in the Terms and Conditions attached hereto as Schedule "A" and forming part hereof.

The Schedules attached hereto are incorporated in this Note by reference and are deemed to be an integral part hereof.

IN WITNESS WHEREOF the Corporation has caused this Note to be executed under the hand of its duly authorized officer as of the ___ day of ______________.

---

| |
|:---|
| **IDAHO CUMO MINING CORPORATION** |
| Per: |
| Authorized Signing Officer |

---

**SCHEDULE "A"**

Terms and Conditions applicable to 8.5% Secured <br> Notes dated as of December 21, 2017 <br> issued byIdaho CuMo Mining Corporation

**ARTICLE ONE** 

**INTERPRETATION**

**Section 1.01 <u>Definitions</u>**: In this Note, unless there is something in the subject matter or context inconsistent therewith, the defined terms set forth below have the following meanings, namely:

(a) "**Business Day**" means any day, other than Saturday, Sunday or any statutory holiday
in the City of Boise, Idaho or Vancouver, Canada;

(b) "**Corporation**" shall have the meaning specified on the face page hereto;

(c) "**Collateral**" means all undertaking, property and assets, real and personal, of the
Corporation except for the following patented lode mining claims located in Section 13, Township 8 North, Range 5 East, Boise Meridian,
Boise County, Idaho, as depicted on Mineral Survey 1706:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Blackbird;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Red Flag;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Enterprise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Enterprise Fraction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Commonwealth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Baby Mine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Date of Issue**" means the date of issue set forth on the face page of this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Date of Prepayment**" means the date the Corporation has paid to the Holder the Principal
Amount and all interest owing thereon in accordance with the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Event of Default**" means any condition or event specified in Section 3.03 which has
not been cured or remedied in accordance with Section 3.03;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Holder**" means each registered holder of a Note as set out in the Note Register;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Interest Rate**" means 8.5% per annum, calculated annually and payable semi-annually
as set forth in Section 2.05 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Maturity Date**" shall have the meaning specified on the face page hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Note Register**" shall have the meaning specified in Section 2.08;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Notes**" means, collectively, the non-transferrable 8.5% secured notes of the Corporation,
with interest payable at the Interest Rate and due on the Maturity Date, in the principal amounts not to exceed, in the aggregate, $500,000,
and "**Note**" means any one of them, including without limitation, the 8.5% secured note to which this Schedule "A"
is attached;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Obligations**" means the aggregate of all indebtedness, obligations and liabilities,
direct or indirect, absolute or contingent, matured or not, of the Corporation to the Holder arising pursuant to this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**person**" means any individual, partnership, limited partnership, joint venture, syndicate,
sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator
or other legal personal representative, government or governmental authority or entity, however designated or constituted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Principal Amount**" shall have the meaning specified on the face page hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Security Interest"** means, collectively, the mortgage, charge, pledge, assignment and
transfer of, and the security interest in, the Collateral granted to the Holder as defined in section 1.01 paragraph {c}.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Silver Purchase Agreement Right**" shall have the meaning ascribed to such term in the
Subscription Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Subscription Agreement**" means the subscription agreement entered into between the
Corporation and the original Holder of this Note setting forth the terms and conditions regarding the sale of the Notes, along with the
terms and conditions regarding the right to enter into the Silver Purchase Agreement Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Successor Corporation**" shall have the meaning specified in Section 5.01;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**this Note** ", "**hereto** ", "**herein** ", "**hereby** ",
" **hereunder** ", "**hereof**" and similar expressions refer to this Note and not to any particular Article,
Section, subsection, clause, subdivision or other portion hereof and include any and every instrument supplemental or ancillary hereto;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Time of Expiry**" means 5:00 p.m. (Idaho time) on the Maturity Date.

**Section 1.02 <u>Number and Gender:</u>** Words importing the singular number only shall include the plural and vice versa and words importing the masculine gender shall include the feminine gender and words importing persons shall include firms and corporations and vice versa.

**Section 1.03 <u>Monetary References:</u>** Any reference in this Note to "Dollars", "dollars" or the symbol "$" shall be deemed to be a reference to lawful money of the United States of America.

**Section 1.04 <u>Day Not a Business Day:</u>** In the event that any day on which any action is required to be taken hereunder is not a Business Day, then such action shall be required to be taken on the requisite time on the first Business Day thereafter.

**Section 1.05 <u>Invalidity of Provisions:</u>** Each of the provisions contained in this Note is distinct and severable and declaration of invalidity or unenforceability of any such provision by the court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof or thereof.

**Section 1.06 <u>Assignment:</u>** Subject to the restrictions on, and requirements for, transfer prescribed herein, the rights and obligations of the Corporation and the Holders shall be binding upon and shall enure to the benefit of their respective successors, heirs, executors, administrators and permitted transferees and assigns.

**Section 1.07 <u>Headings</u>**: The division of this Note into Articles and Sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Note.

**Section 1.08 <u>Applicable Law</u>**: This Note shall be governed by and interpreted in accordance with the laws of the State of Idaho and the federal laws of the United States of America applicable therein without reference to conflict of laws principles. The Corporation and the Holder irrevocably attorn to the exclusive jurisdiction of the courts of the State of Idaho with respect to any matters arising out of this Note.

**Section 1.09 <u>Time of Essence</u>**: Time is of the essence in the performance of this Note.

**ARTICLE TWO** 

**THE NOTE**

**Section 2.01 <u>Maximum Amount and Denominations:</u>** The maximum aggregate principal amount of the Notes to be issued by the Corporation is $25,000,000. The Notes shall be issued in denominations of $250,000 and integral multiples thereof.

**Section 2.02 <u>Notes to Rank Equally:</u>** The Notes shall rank equally with one another and be equally and rateably entitled to the benefits hereof.

**Section 2.03 <u>Promise to Pay</u>**: The Corporation hereby acknowledges itself indebted and promises to pay the outstanding Principal Amount to the Holder on the Maturity Date.

**Section 2.04 <u>Early Repayment:</u>** The Corporation may, with the prior written consent of the Holder, prepay all or any portion of the Principal Amount outstanding under this Note at any time. The Holder acknowledges and agrees that any prepayment in whole or in part of the Principal Amount outstanding under this Note will cause the Silver Purchase Agreement Right to immediately expire.

**Section 2.05 <u>Interest</u>**: From and including the date hereof, interest on the Principal Amount outstanding under this Note shall be charged at the rate of 8.5% per annum, calculated annually and payable semi-annually on June 30 and December 31 with the first interest payment to be made on June 30, 2017, and thereafter every six months until the earlier of the Maturity Date and the Date of Prepayment. Interest on this Note shall accrue on the Principal Amount outstanding, both before and after demand, default and maturity, and interest on overdue interest at the same rate.

**Section 2.06 <u>Person Entitled to Payment</u>**: The Holder shall be entitled to the Principal Amount and interest evidenced by this Note. Delivery to the Holder by the Corporation or the receipt by the Holder of the Principal Amount and interest evidenced by this Note shall be a good discharge to the Corporation of its obligations hereunder, and the Corporation shall not be bound to enquire into the title of the Holder, save as ordered by a court of competent jurisdiction or as required by statute. The Corporation shall not be bound to see to the execution of any trust affecting the ownership of this Note nor be affected by notice of any equity that may be subsisting in respect hereof or thereof.

**Section 2.07 <u>Mutilation, Loss, Theft or Destruction</u>**: In case this Note shall become mutilated or be lost, stolen or destroyed, the Corporation shall execute and deliver a new Note having the same Date of Issue upon surrender and cancellation of the mutilated Note, or in case this Note is lost, stolen or destroyed, in lieu of and in substitution for the same. In case of loss, theft or destruction the person applying for a substituted Note shall furnish to the Corporation such evidence of such loss, theft or destruction as shall be satisfactory to the Corporation, shall furnish indemnity satisfactory to the Corporation and shall pay all reasonable expenses incidental to the issuance of any substituted Note.

**Section 2.08 <u>Registration of Notes</u>**: The Corporation shall maintain a register (the "**Note Register**") on which the names and addresses of each Holder are recorded.

**Section 2.09 <u>Restrictions on Transfer</u>**: This Note is non-transferrable and notwithstanding any other provision of this Note, the Holder shall have no right to transfer or assign this Note, in whole or in part, or grant any interest or security interest in it.

**Section 2.10 <u>Security</u>**: Payment and performance of the Principal Amount owing hereunder from time to time, together with interest thereon and any other indebtedness, liabilities, covenants and obligations of the Corporation to the Holder arising in respect of this Note shall constitute Obligations for the Security Interest as defined in section 1.01 paragraph {c}.

**ARTICLE THREE** 

**COVENANTS OF THE CORPORATION AND DEFAULT**

**Section 3.01 <u>Covenants</u>**: Except as otherwise provided in this Note, the Corporation hereby covenants and agrees that so long as any amounts remain unpaid pursuant to this Note, it will strictly observe and perform the following covenants:

(a) it will duly and punctually pay or cause to be paid to the Holder the Principal Amount and interest accrued
thereon (and, in case of default, interest on the amount in default) on the dates, at the places, and in the manner mentioned herein;

(b) it will use the proceeds from the sale of the Notes for the development of the Corporation's CuMo
molybdenum, copper and silver property in Idaho and for working capital for Idaho CuMo;

(c) it will at all times maintain its corporate existence and will carry on and conduct its business in a
proper and efficient manner. However, nothing herein shall prevent the Corporation from ceasing to operate any business or property if,
in the opinion of its board of directors, it shall be advisable and in the best interests of the Corporation to do so;

(d) it will make all requisite filings, including filings with appropriate securities commissions and stock
exchanges, in connection with the creation and sale of the Notes;

(e) it will well perform and carry out all of the acts or things to be done by it as provided herein; and

(f) it will use its commercially reasonable best efforts to comply with, satisfy and fulfill promptly all
prerequisites, conditions and requirements imposed by or arising out of legal, regulatory and administrative requirements applicable to
the Corporation with respect to the consummation of the transactions contemplated hereby, including filing or causing to be filed all
documents, certificates, opinions, forms or undertakings required to be filed by the Corporation in connection with the purchase and sale
of the Notes.

**Section 3.02 <u>Acceleration on Event of Default</u>**: If an Event of Default shall occur and be continuing, the unpaid balance of the Principal Amount, and all accrued interest and all other amounts payable under this Note may be declared by the Agent (on behalf of the Holder) on written notice to the Corporation to be, and upon such notice shall become, immediately due and payable.

**Section 3.03 <u>Events of Default</u>**: Any of the following conditions or events which shall occur shall constitute events of default ("**Events of Default**") under this Note:

(a) if the Corporation shall default in the payment of any of the Principal Amount owing hereunder at the
Maturity Date;

(b) if the Corporation shall default in the payment of any interest on this Note, or other amounts payable
hereunder, when the same becomes due and payable, whether at the Maturity Date or otherwise and such default shall continue for a period
of ten Business Days after a notice in writing of such default has been given by the Holder to the Corporation;

(c) if the Corporation shall default in the performance of or compliance with any term or condition or covenant
contained in this Note, provided that such default is of a nature that may be cured, and such default shall not have been remedied within
a period of 14 Business Days after written notice of such default has been given by the Holder to the Corporation;

(d) if the Corporation shall (i) file, or consent by answer or otherwise to the filing against it of, a petition
for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or otherwise take advantage of any bankruptcy
or insolvency law of any jurisdiction, (ii) make an assignment, an arrangement or a compromise for the benefit of its creditors, (iii)
consent to the appointment of a custodian, receiver, trustee or other officer with similar powers of itself or of any substantial part
of its property, (iv) cease to carry on business, or (v) take corporate action for the purpose of any of the foregoing;

(e) if any representation, warranty or certification made in connection with the execution and delivery of
this Note shall prove to be, at any time, materially incorrect at the time it was made; and

(f) if a court or governmental authority of competent jurisdiction shall enter a final order appointing, with
or without the consent of the Corporation, a custodian, receiver, trustee or other officer with similar powers with respect to it or with
respect to any substantial part of its property, or if a final order for relief shall be entered in any case or proceeding for liquidation
or reorganization or otherwise to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of the Corporation, or if any petition for any such relief shall be filed against the Corporation and such petition
shall not be dismissed within 90 days.

**Section 3.04 <u>Indemnity</u>:** The Corporation covenants and agrees to indemnify and hold harmless the Holder from and against any and all damage or deficiencies resulting from any misrepresentation, breach of warranty or non-fulfillment of any covenant on the part of the Corporation under this Note or from any misrepresentation in or omission from any certificate or other instrument furnished or to be furnished by the Corporation to the Holder under this Note and any and all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incident to any of the foregoing.

**Section 3.05 <u>Discharge</u>**: The Holder shall, at the request of the Corporation, acknowledge payment and satisfaction in full of this Note and release and discharge this Note and execute and deliver such instruments as are requisite for the purpose and to release the Corporation from its covenants herein contained, upon the Principal Amount of and interest (including interest on amounts in default, if any) on this Note and all other moneys payable hereunder having been paid or satisfied.

**ARTICLE FOUR** 

**SECURITY INTEREST**

**Section 4.01 <u>Grant of Security Interest:</u>** As continuing collateral security for the due and timely payment and performance by the Corporation of the Obligations, the Corporation shall grant to the Holder a security interest in and to the Collateral as defined in section 1.01 paragraph {c}.

**ARTICLE FIVE** 

**SUCCESSOR CORPORATIONS**

**Section 5.01 <u>Certain Requirements</u>**: The Corporation shall not, directly or indirectly, sell, lease, transfer or otherwise dispose of all or substantially all of its property and assets as an entirety to any other entity, and shall not consolidate, amalgamate, or merge with or into any other corporation (any such other entity or corporation being herein referred to as a "**Successor Corporation**") unless the Successor Corporation shall execute, prior to or contemporaneously with the consummation of any such transaction, an instrument to evidence the assumption by the Successor Corporation of the due and punctual payment of all the Principal Amount of this Note and the interest thereon and all other moneys payable hereunder and the covenant of the Successor Corporation to pay the same and its agreement to observe and perform all the covenants and obligations of the Corporation under this Note.

**Section 5.02 <u>Vesting of Powers in Successor</u>**: Whenever the conditions of Section 5.01 have been fully observed and performed the Successor Corporation shall possess and from time to time may exercise each and every right and power of the Corporation under this Note in the name of the Corporation or otherwise and any act or proceeding by any provision of this Note required to be done or performed by the Corporation or its officers may be done and performed with like force and effect by the Successor Corporation or its officers.

**ARTICLE SIX** 

**GENERAL**

**Section 6.01 <u>Notice to Corporation</u>**: Any notice, direction or other instrument required or permitted to be given to any party hereto shall be in writing and shall be sufficiently given if delivered personally, or transmitted by facsimile tested prior to transmission to such party, as follows:

(a) in the case of the Corporation, to:

Idaho CuMo Mining Corporation

638 Millbank

Vancouver, British Columbia V5Z 4B7

Attention: Shaun Dykes

Fax: (604) 689-7816

(b) in the case of the Holder, to the Holder's address appearing in any of the registers hereinbefore
mentioned.

Any such notice, direction or other instrument, if delivered personally, shall be deemed to have been given and received on the day on which it was delivered, provided that if such day is not a Business Day then the notice, direction or other instrument shall be deemed to have been given and received on the first Business Day next following such day and if transmitted by fax, shall be deemed to have been given and received on the day of its transmission, provided that if such day is not a Business Day or if it is transmitted or received after the end of normal business hours then the notice, direction or other instrument shall be deemed to have been given and received on the first Business Day next following the day of such transmission. Any party hereto may change its address for service from time to time by notice given to each of the other parties hereto in accordance with the foregoing provisions.

**Section 6.02 <u>Severability</u>**: In the event that any provision or any part of any provision hereof is deemed to be invalid by reason of the operation of any law or by reason of the interpretation placed thereon by a court, this Note shall be construed as not containing such provision or such part and such provision or such part shall not affect the validity of any other provision or the remainder of such provision hereof, and all other provisions hereof which are otherwise lawful and valid shall remain in full force and effect.

**Section 6.03 <u>Binding Effect</u>**: This Note and all of its provisions shall enure to the benefit of the Holder, its successors and assigns and shall be binding upon the Corporation, its successors and assigns, as the case may be.

IN WITNESS WHEREOF the Corporation has executed this Note under the hand of its proper officer in that behalf as of the date first above written.

---

| | |
|:---|:---|
| **IDAHO CUMO MINING CORPORATION** | **IDAHO CUMO MINING CORPORATION** |
| Per: | /s/ |
| Name: |  |
| Title: | President and Secretary |
| I have the authority to bind the Corporation | I have the authority to bind the Corporation |

---

## Exhibit 4.8

**Exhibit 4.8**

**SECURED NOTE INDENTURE**

**DATED**

**AUGUST 24, 2021**

**BETWEEN**

**INTERNATIONAL CUMO MINING CORPORATION**

**AND**

**COMPUTERSHARE TRUST COMPANY OF CANADA**

**PROVIDING FOR THE ISSUE OF NOTES**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE 1 INTERPRETATION** | **ARTICLE 1 INTERPRETATION** | **1** |
| 1.1 | Definitions | 1 |
| 1.2 | Meaning of "Outstanding" | 11 |
| 1.3 | Interpretation | 12 |
| 1.4 | Headings, Etc | 13 |
| 1.5 | Time of Essence | 13 |
| 1.6 | Monetary References | 13 |
| 1.7 | Invalidity, Etc | 13 |
| 1.8 | Language | 13 |
| 1.9 | Successors and Assigns | 14 |
| 1.10 | Severability | 14 |
| 1.11 | Entire Agreement | 14 |
| 1.12 | Benefits of Indenture | 14 |
| 1.13 | Applicable Law and Attornment | 14 |
| 1.14 | Currency of Payment | 14 |
| 1.15 | Non-Business Days | 14 |
| 1.16 | Accounting Terms | 15 |
| 1.17 | Calculations | 15 |
| 1.18 | Schedules | 15 |
| **ARTICLE 2 THE NOTES** | **ARTICLE 2 THE NOTES** | **15** |
| 2.1 | Limit of Notes | 15 |
| 2.2 | Terms of Notes of any Series | 15 |
| 2.3 | Form of Notes | 17 |
| 2.4 | Form and Terms of Initial Notes | 17 |
| 2.5 | Certification and Delivery of Additional Notes | 20 |
| 2.6 | Issue of Global Notes | 21 |
| 2.7 | Execution of Notes | 23 |
| 2.8 | Certification | 24 |
| 2.9 | Interim Notes or Certificates | 24 |
| 2.10 | Mutilation, Loss, Theft or Destruction | 25 |
| 2.11 | Concerning Interest | 25 |
| 2.12 | Notes to Rank Pari Passu | 25 |
| 2.13 | Payment of Principal | 25 |
| 2.14 | Payment of Interest | 26 |
| 2.15 | Withholding Tax | 27 |
| 2.16 | Note Certificate and U.S. Legend | 28 |
| **ARTICLE 3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP** | **ARTICLE 3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP** | **30** |
| 3.1 | Notes | 30 |
| 3.2 | Global Notes or Book Based Only Notes | 30 |
| 3.3 | Transferee Entitled to Registration | 33 |
| 3.4 | No Notice of Trusts | 33 |
| 3.5 | Registers Open for Inspection | 34 |
| 3.6 | Exchanges of Notes | 34 |

---

i

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| 3.7 | Closing of Registers | 34 |
| 3.8 | Charges for Registration, Transfer and Exchange | 35 |
| 3.9 | Ownership of Notes | 35 |
| 3.10 | Non-Certificated Inventory System (NCI System) | 36 |
| 3.11 | Note Certificate and U.S. Restrictions on Transfer | 36 |
| **ARTICLE 4 PREPAYMENT** | **ARTICLE 4 PREPAYMENT** | **37** |
| 4.1 | Prepayment | 37 |
| 4.2 | Partial Prepayment | 37 |
| 4.3 | Notice of Prepayment | 37 |
| 4.4 | Notes Due on Prepayment Dates | 38 |
| 4.5 | Deposit of Prepayment Monies | 38 |
| 4.6 | Failure to Surrender Notes Called for Prepayment | 38 |
| **ARTICLE 5 PURCHASE BY THE CORPORATION** | **ARTICLE 5 PURCHASE BY THE CORPORATION** | **39** |
| 5.1 | Purchase of Notes by the Corporation | 39 |
| **ARTICLE 6 SECURITY FOR NOTES AND SUBORDINATION OF NOTES** | **ARTICLE 6 SECURITY FOR NOTES AND SUBORDINATION OF NOTES** | **39** |
| 6.1 | Grant of Security Interest | 39 |
| 6.2 | Exceptions re: Contractual Rights, Licences, etc | 40 |
| 6.3 | Mortgage Registration; | 40 |
| 6.4 | Permitted Dispositions of Secured Assets Before Default | 41 |
| 6.5 | Applicability of Article | 41 |
| 6.6 | Order of Payment | 41 |
| 6.7 | Subrogation to Rights of Holders of Senior Indebtedness | 43 |
| 6.8 | Obligation to Pay Not Impaired | 43 |
| 6.9 | No Payment if Senior Indebtedness in Default | 43 |
| 6.10 | Payment on Notes Permitted | 44 |
| 6.11 | Confirmation of Subordination | 44 |
| 6.12 | Knowledge of Trustee | 45 |
| 6.13 | Trustee May Hold Senior Indebtedness | 45 |
| 6.14 | Rights of Holders of Senior Indebtedness Not Impaired | 45 |
| 6.15 | Altering the Senior Indebtedness | 45 |
| 6.16 | Additional Indebtedness | 46 |
| 6.17 | Additional Encumbrances | 46 |
| 6.18 | Invalidated Payments | 46 |
| 6.19 | Contesting Security | 46 |

| **ARTICLE 7 COVENANTS OF THE CORPORATION** | **ARTICLE 7 COVENANTS OF THE CORPORATION** | **47** |
| 7.1 | To Pay Principal, Premium and Interest | 47 |
| 7.2 | To Give Notice of Default | 47 |
| 7.3 | Preservation of Existence, Etc | 47 |
| 7.4 | Performance of Covenants by Trustee | 47 |
| 7.5 | Certificate of Compliance | 47 |
| 7.6 | SEC Notice | 48 |
| 7.7 | Further Instruments and Acts | 48 |

---

ii

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| 7.8 | Covenants as to Security | 48 |
| 7.9 | Notice of Change of Chief Executive Officer and Notice of Changes Affecting the Business of the Corporation | 49 |
| 7.10 | Securities Laws | 49 |
| **ARTICLE 8 DEFAULT** | **ARTICLE 8 DEFAULT** | **50** |
| 8.1 | Events of Default | 50 |
| 8.2 | Notice of Events of Default | 51 |
| 8.3 | Waiver of Default | 52 |
| 8.4 | Enforcement by the Trustee | 52 |
| 8.5 | No Suits by Noteholders | 57 |
| 8.6 | Application of Monies by Trustee | 58 |
| 8.7 | Distribution of Proceeds | 59 |
| 8.8 | Trustee May Demand Production of Notes | 59 |
| 8.9 | Trustee Appointed Attorney | 60 |
| 8.10 | Remedies Cumulative | 60 |
| 8.11 | Judgment Against the Corporation | 60 |
| 8.12 | Immunity of Directors, Officers and Others | 60 |
| 8.13 | Subordination | 60 |
| 8.14 | Rights of Holders to Receive Payment | 60 |
| **ARTICLE 9 SATISFACTION AND DISCHARGE** | **ARTICLE 9 SATISFACTION AND DISCHARGE** | **61** |
| 9.1 | Cancellation | 61 |
| 9.2 | Non-Presentation of Notes | 61 |
| 9.3 | Repayment of Unclaimed Monies | 61 |
| 9.4 | Discharge | 62 |
| 9.5 | Satisfaction | 62 |
| 9.6 | Continuance of Rights, Duties and Obligations | 64 |
| **ARTICLE 10 SUCCESSORS** | **ARTICLE 10 SUCCESSORS** | **64** |
| 10.1 | Corporation may Consolidate, Etc., Only on Certain Terms | 64 |
| 10.2 | Successor Substituted | 65 |
| 10.3 | Amalgamation | 65 |
| **ARTICLE 11 MEETINGS OF NOTEHOLDERS** | **ARTICLE 11 MEETINGS OF NOTEHOLDERS** | **65** |
| 11.1 | Right to Convene Meeting | 65 |
| 11.2 | Notice of Meetings | 65 |
| 11.3 | Chairman | 67 |
| 11.4 | Quorum | 67 |
| 11.5 | Power to Adjourn | 67 |
| 11.6 | Show of Hands | 68 |
| 11.7 | Poll | 68 |
| 11.8 | Voting | 68 |
| 11.9 | Proxies | 69 |
| 11.10 | Persons Entitled to Attend Meetings | 69 |
| 11.11 | Powers Exercisable by Extraordinary Resolution | 69 |
| 11.12 | Meaning of "Extraordinary Resolution" | 71 |
| 11.13 | Powers Cumulative | 72 |
| 11.14 | Minutes | 72 |
| 11.15 | Instruments in Writing | 72 |

---

iii

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| 11.16 | Binding Effect of Resolutions | 73 |
| 11.17 | Evidence of Rights Of Noteholders | 73 |
| 11.18 | Concerning Serial Meetings | 73 |
| 11.19 | Record Dates | 73 |
| **ARTICLE 12 NOTICES** | **ARTICLE 12 NOTICES** | **74** |
| 12.1 | Notice to Corporation | 74 |
| 12.2 | Notice to Noteholders | 74 |
| 12.3 | Notice to Trustee | 74 |
| 12.4 | Mail Service Interruption | 75 |
| **ARTICLE 13 CONCERNING THE TRUSTEE** | **ARTICLE 13 CONCERNING THE TRUSTEE** | **75** |
| 13.1 | Replacement of Trustee | 75 |
| 13.2 | Duties of Trustee | 76 |
| 13.3 | Reliance Upon Declarations, Opinions, etc | 76 |
| 13.4 | Evidence and Authority to Trustee, Opinions, Etc | 76 |
| 13.5 | Officer's Certificates Evidence | 77 |
| 13.6 | Experts, Advisers and Agents | 77 |
| 13.7 | Trustee May Deal in Notes | 78 |
| 13.8 | Investment of Monies Held by Trustee | 78 |
| 13.9 | Trustee Not Ordinarily Bound | 79 |
| 13.10 | Trustee Not Required to Give Security | 79 |
| 13.11 | Trustee Not Bound to Act on Corporation's Request | 79 |
| 13.12 | Conditions Precedent to Trustee's Obligations to Act Hereunder | 79 |
| 13.13 | Authority to Carry on Business | 79 |
| 13.14 | Compensation and Indemnity | 80 |
| 13.15 | Acceptance of Trust | 82 |
| 13.16 | Third Party Interests | 83 |
| 13.17 | Anti-Money Laundering | 83 |
| 13.18 | Privacy Laws | 83 |
| 13.19 | Force Majeure | 84 |
| 13.20 | Concerning the Trustee | 84 |
| 13.21 | Trustee Not to be Appointed Receiver | 85 |
| 13.22 | Trustee Not Required to Give Notice of Default | 85 |
| **ARTICLE 14 SUPPLEMENTAL INDENTURES** | **ARTICLE 14 SUPPLEMENTAL INDENTURES** | **85** |
| 14.1 | Supplemental Indentures | 85 |
| **ARTICLE 15 LIABILITY OF TRUSTEE** | **ARTICLE 15 LIABILITY OF TRUSTEE** | **86** |
| 15.1 | Limitation of Liability | 86 |
| **ARTICLE 16 EXECUTION AND FORMAL DATE** | **ARTICLE 16 EXECUTION AND FORMAL DATE** | **86** |
| 16.1 | Execution | 86 |
| 16.2 | Counterparts | 87 |
| 16.3 | Contracts of the Corporation | 87 |
| 16.4 | Formal Date | 87 |

---

iv

**TABLE OF CONTENTS**

(continued)

---

| | |
|:---|:---|
|  | **Page** |
| **SCHEDULE A FORM OF NOTE** | **1** |
| **SCHEDULE B FORM OF PREPAYMENT NOTICE** | **1** |
| **SCHEDULE C TERM SHEET** | **1** |
| **SCHEDULE D FORM OF MORTGAGE** | **1** |
| **SCHEDULE E APPROVED BANKS** | **1** |

---

v

**THIS INDENTURE** made this 24th day of August, 2021.

**BETWEEN:**

**INTERNATIONAL CUMO MINING CORPORATION**, a corporation incorporated and existing under the laws of the State of Idaho (hereinafter called the "**Corporation**")

**AND**

**COMPUTERSHARE TRUST COMPANY OF CANADA**, a trust company organized under the federal laws of Canada having an office in the City of Vancouver, in the Province of British Columbia

(hereinafter called the "**Trustee**")

**WHEREAS** the Corporation wishes to create and issue the Notes (as defined herein) in the manner and subject to the terms and conditions of this Indenture;

**AND WHEREAS** the Corporation, under the laws relating thereto, is duly authorized to create and issue the Notes to be issued as herein provided;

**AND WHEREAS**, when certified by the Trustee and issued as provided in this Indenture, all necessary steps in relation to the Corporation have been duly enacted, passed and/or confirmed and other proceedings taken and conditions complied with to make the creation and issue of the Notes proposed to be issued hereunder legal, valid and binding on the Corporation in accordance with the laws relating to the Corporation;

**AND WHEREAS** the foregoing recitals are made as representations and statements of fact by the Corporation and not by the Trustee;

**NOW THEREFORE THIS INDENTURE WITNESSES** that in consideration of the respective covenants and agreements contained herein and for other good and valuable consideration (the receipt and sufficiency of which are mutually acknowledged), the Corporation and the Trustee covenant and agree, for the benefit of each other and for the equal and rateable benefit of the holders, as follows:

**ARTICLE 1 INTERPRETATION**

1.1 Definitions

In this Indenture and in the Notes, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings, namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**this Indenture** ", "**this Note Indenture** ", "**hereto** ",
" **herein** ", "**hereby** ", "**hereunder** ", "**hereof**" and similar expressions
refer to this Secured Note Indenture and not to any particular Article, Section, subsection, clause, subdivision or other portion hereof
and include any and every instrument supplemental or ancillary hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Additional Notes**" means Notes of any one or more series, other than the first series
of Notes, being the Initial Notes, issued under this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Affiliate** ", when used to indicate a relationship with a Person or company, has the
meaning ascribed thereto in the *Business Corporations Act* (British Columbia);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Applicable Laws**" means all laws, rules, regulations, codes, by-laws, statutes, ordinances,
directives and orders, in effect from time to time, of all jurisdictions and Governing Authorities having jurisdiction with respect to
the Corporation and its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Applicable Securities Legislation**" means applicable securities laws (including rules,
regulations, policies and instruments) in each of the provinces of Canada and in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Approved Bank**" has the meaning ascribed thereto in Section 13.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Auditors of the Corporation**" means an independent firm of chartered accountants duly
appointed as auditors of the Corporation and, as of the date hereof, is De Visser Gray LLP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Authorized Officer**" has the meaning ascribed to the term "officer" in
the *Securities Act* (British Columbia) and includes any authorized officer of the Corporation as listed on a certificate of incumbency
of the Corporation delivered to the Trustee from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Beneficial Holder**" means any Person who holds a beneficial interest in a Global Note
or a Book Based Only Note, as applicable, as shown on the books of the Depository or a Depository Participant, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Board of Directors**" means the board of directors of the Corporation or any committee
thereof, acting on behalf of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Book Based Only Notes**" means Notes issued under this Indenture in noncertificated
form which are held only by way of a book based (electronic) register maintained by the Depository;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Business**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition, exploration, development, operation and disposition of mining and precious or base metal
processing properties and assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other business that is the same as, or reasonably related, ancillary or complementary to, the business
described in clause (i) or to any of the businesses in which the Corporation and its

Affiliates are engaged on the date of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Business Day**" means any day other than a Saturday, Sunday or any other day that the
Trustee in the City of Vancouver is not generally open for business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Cash Equivalents**" means (i) marketable direct obligations issued by, or unconditionally
guaranteed by, the Government of Canada or any Province thereof or the Government of the United States or any State thereof or any agency
or instrumentality of any of them, and backed by the full faith and credit of Canada or such Province, the United States or such State,
as the case may be, in each case maturing within one year from the date of acquisition, (ii) term deposits, certificates of deposit or
overnight bank deposits having maturities of six months or less from the date of acquisition issued by any Lender or by any commercial
bank organized under the laws of Canada or the United States or any state thereof having combined capital and surplus of not less than
$300,000,000, (iii) commercial paper of an issuer rated at least A- 1 or the equivalent thereof by Standard & Poor's Ratings Services
or at least P- 1 or the equivalent thereof by Moody's Investors Service Inc. or at least R- 1 (High) or the equivalent thereof by DBRS
Limited, and in each case maturing within one year from the date of acquisition and (iv) investments classified in accordance with GAAP
as current assets of the Corporation or any Affiliate, in money market investment programs that are administered by financial institutions
having capital of at least $300,000,000 or its equivalent, and the portfolios of which are limited such that substantially all of such
investments are of the character, quality and maturity described in clauses (i),(ii) or (iii) of this definition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**CDS**" means CDS Clearing and Depository Services Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Closing Date**" means, with respect to the Initial Notes, August ____, 2021 24 and with respect to any other series of Notes, the closing date specified for such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Corporation**" means International CuMo Mining Corporation and includes any successor
to or of the Corporation which shall have complied with the provisions of Article 10;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Counsel**" means a barrister or solicitor or firm of barristers or solicitors

retained or employed by the Trustee or retained or employed by the Corporation and acceptable to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**CuMo Project**" means the Corporation's flagship molybdenum, copper, and silver
property located in Idaho, USA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Depository**" means, with respect to the Notes of any series issuable or issued in
 the form of one or more Global Notes or as Book Based Only Notes, in either case the Person designated as depository by the
 Corporation pursuant to Section 3.2(a) until a successor depository shall have become such pursuant to the applicable provisions of
 this Indenture, and thereafter "**Depository**" shall mean each Person who is then a depository hereunder, and if at
 any time there is more than one such Person, "**Depository**" as used with respect to the Notes of any series shall
 mean each depository with respect to the
Global Notes or Book Based Only Notes, as the case may be, of such series and, in the case of the Initial Notes, the Depository may initially
be CDS or such other Depository as designated by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Depository Participant**" means a broker, dealer, bank, other financial institution
or other Person for whom a Depository from time to time effects book-entries for a Global Note deposited with the Depository or for a
Book Based Only Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Deposit Set-off**" means a set-off against repayment of the principal amount of the
Initial Notes held by a holder and all accrued interest (and subsequent cancellation of such Initial Note) against an upfront cash payment
of US$1 for each Purchased Ounce (as defined in Appendix "A" of Schedule C) upon execution of a silver purchase and sale agreement
substantially on the terms as set forth in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Directors**" means the directors of the Corporation on the date hereof or such directors
as may, from time to time, be appointed or elected directors of the Corporation pursuant to the Corporation's articles and Applicable
Laws, and "**Director**" means any one of them, and reference to action by the Directors means action by the Directors
as a board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Encumbrance**" means, with respect to any Person, any mortgage, deed of trust, debenture,
pledge, hypothec, lien, charge, assignment by way of security, hypothecation or security interest granted or permitted by such Person
or arising by operation of law, in respect of any of such Person's Property, or any consignment by way of security or lease liabilities
of Property by such Person as consignee or lessee, as the case may be, or any other security agreement, trust or arrangement having the
effect of security for the payment of any debt, liability or other obligation, and "**Encumbrances** ", "**Encumbrancer** ",
" **Encumber**" and "**Encumbered**" have corresponding meanings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Environmental Law**" means any Applicable Law relating to the environment including
those pertaining to (i) reporting, licensing, permitting, investigating, remediating and cleaning up in connection with any presence or
Release, or the threat of the same, of Hazardous Substances, and (ii) the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, handling and the like of Hazardous Substances, including those pertaining to occupational health and safety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Equity Interest**" means common shares, preferred shares or other equivalent equity
interests (howsoever designated) in a body corporate, partnership, trust or other legal or commercial entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**especially affected series**" has the meaning ascribed thereto in Section 11.2(b)(i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Event of Default**" has the meaning ascribed thereto in Section 8.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Excluded Property**" means the following patented lode mining claims located in Section
13, Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey 1706: (i) Blackbird; (ii) Red Flag;
(iii) Enterprise; (iv) Enterprise Fraction; (v) Commonwealth; and (vi) Baby Mine

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Experts**" has the meaning ascribed thereto in Section 13.14(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Extraordinary Resolution**" has the meaning ascribed thereto in Section 11.12;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**generally accepted accounting principles**" or "**GAAP**" means generally
accepted accounting principles from time to time approved by the Chartered Professional Accountants of Canada for publicly accountable
enterprises (being IFRS as adopted by the Canadian Accounting Standards Board) (including as further described in Section 1.16);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Global Note**" means a Note that is issued to and registered in the name of the Depository,
or its nominee, pursuant to Section 2.6 for purposes of being held by or on behalf of the Depository as custodian for Depository Participants
in the Depository's book-entry only registration system or non-certificated inventory system, and may be certificated or uncertificated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Governing Authorities**" means any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of the governments of Canada, the United States of America, any other nation or any political subdivision
thereof, whether multinational, federal, provincial, territorial, municipal, state, local or other governmental or public department,
central bank, court, commission, board, bureau, agency or instrumentality, domestic or foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any subdivision, authority, instrumentality, regulatory body, court, central bank, fiscal or monetary
authority or other authority regulating financial institutions, and any other entity exercising, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any quasi-governmental or private body exercising a regulatory, expropriation or taxing authority under
or for the account of any of the above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**guarantee**" means any guarantee or undertaking to assume, endorse, contingently agree
to purchase, or to provide funds for the payment of, or otherwise become liable in respect of, any indebtedness, liability or obligation
of any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Hazardous Substance**" means any substance or material that is prohibited, controlled
or regulated by any Governing Authority pursuant to Environmental Laws, including pollutants, contaminants, dangerous goods or substances,
toxic or hazardous substances or materials, wastes (including solid non-hazardous wastes
and subject wastes), petroleum and its derivatives and byproducts and other hydrocarbons, all as defined in or pursuant to any Environmental
Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**IFRS**" means International Financial Reporting Standards as adopted by the International
Accounting Standards Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Initial Notes**" means the first series of Notes designated as "7.5% Secured Notes
Due May 31, 2028" and described in Section 2.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Interest Obligation**" means the obligation of the Corporation to pay interest on the
Notes, as and when the same becomes due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**Interest Payment Date**" means a date specified in a Note as the date on which interest
on such Note shall become due and payable computed on the basis of a 365 day year, unless otherwise specified herein, and which for the
Initial Notes shall be semi-annually on June 30 and December 31 of each year, the first such payment to fall due on December 31, 2021;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Internal Procedures**" means in respect of the making of any one or more entries to,
changes in or deletions of any one or more entries in the register at any time (including without limitation, original issuance or registration
of transfer of ownership) the minimum number of the Trustee's internal procedures customary at such time for the entry, change or
deletion made to be complete under the operating procedures followed at the time by the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Internal Revenue Code**" means the Internal Revenue Code of the United States and the
regulations thereunder as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**Material Adverse Change**" means any event, occurrence, state of facts, effect or change
that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on: (i) the Business,
assets, liabilities, operations, results of operations or condition (financial or other) of the Corporation (taken as a whole); (ii) the
ability of the Corporation to pay or perform its obligations under any Note Document; (iii) the validity or enforceability of this Indenture,
the Security or any other Note Document; or (iv) the priority ranking of any Encumbrance granted by this Indenture, the Security or any
other Note Document, or the rights or remedies intended or purposed to be granted to the Trustee and the Noteholders under or pursuant
to this Indenture, the Security or any other Note Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "**Material Licences**" means all licences, permits or approvals issued by any Governing
Authority, or any applicable stock exchange or securities commission, to the Corporation, and which are at any time on or after the date
of this Indenture, necessary or material to the business and operations of the Corporation, the breach or default of which would result
in a Material Adverse Change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "**Maturity Account**" means an account or accounts required to be established by the Corporation
(and which shall be maintained by and subject to the control of the
Trustee) for each series of Notes issued pursuant to and in accordance with this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "**Maturity Date**" means the date specified for maturity for any Notes as prescribed in
this Indenture or in any supplement hereto and means for the Initial Notes (including all tranches of the Initial Notes) the earlier of:
May 31, 2028; and the 31<sup>st</sup> day following delivery of a Triggering Event Notice by the Company pursuant to Section 2.4(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "**Mortgage**" means the mortgage, substantially in the form attached hereto as Schedule
D, constituting the Security Interest, as may be amended, restated, amended and restated, supplemented, modified or superseded from time
to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "**NCI System**" means a non-certificated inventory system for Notes maintained by
the Depository, as may be changed, supplemented, replaced or otherwise modified from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) **"Note Certificate"** means a certificate evidencing Notes substantially in the form attached
as Schedule A hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**Note Documents**" means this Indenture, the Notes, the other Security Documents, and
all other certificates, instruments, notices, agreements and documents delivered or to be delivered pursuant to any of this Indenture,
the Notes, the other Security Documents and the Subordination Agreement, each as amended, modified, supplemented, restated or replaced
from time to time; (yy) "**Note Liabilities**" has the meaning ascribed thereto in Section 6.5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) "**Noteholders**" or "**holders**" means the Persons for the time being
entered in the register for
Notes as registered holders of Notes or any transferees of such Persons by endorsement or delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "**Notes**" means the notes of the Corporation comprising the Units, each in the principal
amount of multiples of $1,000, issued and certified hereunder, or deemed to be issued and certified hereunder, including, without limitation,
the Initial Notes, and for the time being outstanding, whether in definitive, uncertificated or interim form or in the form of Global
Notes or Book Based Only Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) "**Offering**" means the private placement of up to $12,500,000 aggregate principal amount
of Initial Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) "**Officer's Certificate**" means a certificate of the Corporation signed by any
one authorized officer or director of the Corporation, in his or her capacity as an officer or director of the Corporation, and not in
his or her personal capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) "**Permitted Encumbrances**" means as of any particular time any of the following Encumbrances
on the Secured Assets or property intended to form part of the Secured Assets or any part thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) liens for Taxes, assessments or governmental charges or levies not at the time due and
delinquent or the validity of which are being contested in good faith by proper legal proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the lien of any judgment rendered or claim filed which is being contested in good
faith by proper legal proceedings (other than that which constitutes an Event of Default);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) undetermined or inchoate liens and charges incidental to current operations which have
not at such time been filed pursuant to law or which relate to obligations not yet due or delinquent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any and all Encumbrances which affect all or any portion of the Secured Assets relating to any Senior
Indebtedness and any Senior Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Encumbrance consented to in writing by an Extraordinary Resolution delivered to the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) "**Periodic Offering**" means an offering of Notes of a series from time to time, the specific
terms of which Notes, including, without limitation, the rate or rates of interest, if any, thereon, the stated maturity or maturities
thereof and the redemption provisions, if any, with respect thereto, are to be determined by the Corporation upon the issuance of such
Notes from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) "**Person**" includes an individual, corporation, company, trust, partnership, joint venture,
association, trust, trustee, unincorporated organization or other organization, whether or not a legal entity or government or any agency
or political subdivision thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) "**Prepayment Date**" has the meaning ascribed thereto in Section 4.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) "**Prepayment Notice**" has the meaning ascribed thereto in Section 4.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Property**" means, with respect to any Person, all or any portion of that Person's
undertaking and property, both real and personal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) "**Qualified Institutional Buyer**" means a "qualified institutional buyer"
as such term is defined in Rule 144A under the U.S. Securities Act that is also a U.S. Accredited Investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) "**Qualified Institutional Buyer Certificate**" means
a certificate executed by a Qualified Institutional Buyer in connection with its purchase of Notes pursuant to the Offering under which
the Initial Notes were issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) "**Receiver**" has the meaning ascribed thereto in Section 8.4(e)(i)(D);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm) "**Receiver Certificates**" has the meaning ascribed thereto in Section 8.4(e)(i)(D)(6);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnn) "**Release**" means any release or discharge of any Hazardous Substance including any discharge,
spray, injection, inoculation, abandonment, deposit, spillage, leakage, seepage, pouring, emission, emptying, throwing, dumping, placing,
exhausting, escape, leach, migration, dispersal, dispensing or disposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ooo) "**SEC**" means the United States Securities and Exchange Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppp) "**Secured Assets**" means collectively all right, title and interest in and to the Security
Property other than Excluded Property and other than as provided in Section 6.2, and subject to Permitted Encumbrances,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqq) "**Security Documents** "
means this Indenture and the Mortgage entered into by the Corporation in favour of the Trustee (for itself and the Noteholders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rrr) "**Security Interest**" means the Encumbrances in the Secured Assets created in favour of the
Trustee (for itself and the Noteholders) by the Corporation pursuant to the Security Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(sss) "**Security Property** ", at any time, means all of the mining claims of the Corporation
that represent the CuMo Project except for the Excluded Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ttt) "**Senior Creditor**" means a holder or holders of any Senior Indebtedness and includes any representative
or representatives, agent or agents or trustee or trustees of any such holder or holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uuu) "**Senior Indebtedness**" means all present and future indebtedness, liabilities and obligations,
direct or indirect, absolute or contingent of the Corporation and its Affiliates up to a maximum permitted aggregate principal amount
of $25,000,000, which would, in accordance with IFRS, be classified upon a consolidated balance sheet of the Corporation as liabilities
of the Corporation or its Affiliates and, whether or not so classified, shall include (without duplication): (A) indebtedness of the Corporation
or its Affiliates for borrowed money; (B) obligations of the Corporation or its Affiliates under guarantees, indemnities, assurances,
legally binding comfort letters or other contingent obligations relating to the Senior Indebtedness or other obligations of any other
Person which would otherwise constitute Senior Indebtedness within the meaning of this definition; (C) all renewals, extensions and refinancing
of any of the foregoing; and (D) all costs and expenses incurred by or on behalf of the holder of any Senior Indebtedness in enforcing
payment or collection of any such Senior Indebtedness, including enforcing any Encumbrance securing the same. "**Senior Indebtedness** "
shall not include any indebtedness that would otherwise be Senior Indebtedness if it is expressly stated to be subordinate to the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vvv) "**Senior Security**" means all Encumbrances of any kind, contingent or absolute, held
by or on behalf of any Senior Creditor and in any manner securing any Senior Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(www) "**Serial Meeting**" has the meaning ascribed thereto in Section 11.2(b)(i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) "**Shares**" means common shares in the capital of the Corporation, as such common shares
are constituted on the date of execution and delivery of this Indenture; provided that in the event of a change or exchange or a subdivision,
re-division, reduction, combination or consolidation thereof, any reclassification, capital reorganization, consolidation, amalgamation,
arrangement, merger, sale or conveyance or liquidation, dissolution or winding-up, or such successive changes, exchanges, subdivisions,
redivisions, reductions, combinations or consolidations, reclassifications, capital reorganizations, consolidations, amalgamations, arrangements,
mergers, sales or conveyances or liquidations, dissolutions or windings-up, then, subject to adjustments, if any, "**Shares** "
shall mean the shares or other securities or property resulting from such change, exchange, subdivision, redivision, reduction, combination
or consolidation, reclassification, capital reorganization, consolidation, amalgamation, arrangement, merger, sale or conveyance or liquidation,
dissolution or winding-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yyy) "**Silver Purchase Agreement Exercise Notice**" has the meaning ascribed thereto in Section
2.4(e);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zzz) "**Silver Purchase Agreement Exercise Period**" has the meaning ascribed thereto in Section
2.4(e);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaaa) "**Silver Purchase Agreement Right**" means the right of each holder of Initial Notes,
exercisable upon the occurrence of a Triggering Event while a holder's Initial Note is outstanding, by delivery of notice in writing
to the Corporation within 30 days of receipt of the Triggering Event Notice, to require the Corporation to enter into a silver purchase
and sale agreement with the holder of Initial Notes on the terms and conditions set out in Schedule C;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbbb) "**Subordination Agreement**" means any subordination agreement among the Corporation,
a Senior Creditor and the Trustee in respect of the subordination of the Security Interests and the postponement of the holders'
right to payment under the Notes to the Encumbrances held by a Senior Creditor, and Senior Indebtedness owing to a Senior Creditor as
further detailed herein in Article 6;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cccc) "**Successor**" has the meaning ascribed thereto in Section 10.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dddd) "**Tax Act**" means the *Income Tax Act* (Canada) and the regulations thereunder as
amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eeee) "**Taxes**" means all present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governing Authority, including any interest, additions to tax or penalties applicable
thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ffff) "**Trustee**" means Computershare Trust Company of Canada, or its successor or successors
for the time being as trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gggg) "**Triggering Event**" means, collectively, the completion of a pre-feasibility study or feasibility
study on the CuMo Project and the decision of the Corporation to proceed with commercial production at the CuMo Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhhh) "**Triggering Event Notice**" has the meaning ascribed thereto in Section 2.4(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iiii) "**United States**" means the United States of America, its territories and possessions, any
state of the United States of America, or any political subdivision thereof, and the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjjj) "**U.S. Person**" has the meaning set forth in Rule 902(k) of Regulation S under the U.S.
Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkkk) "**U.S. Purchaser**" means a Purchaser of Initial Notes who was, at the time of purchase,
either a Qualified Institutional Buyer or a U.S. Accredited Investor and (a) a person in the United States, (b) a U.S. Person, (c) any
person purchasing that purchased Initial Notes on behalf of, or for the account or benefit of, a U.S. Person or any person in the United
States, (d) any person who receives or received an offer to acquire such Initial Notes while in the United States, or (e) any person who
was in the United States at the time such person's buy order was made or the subscription agreement pursuant to which such Initial Notes
were acquired was executed or delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(llll) "**U.S. Accredited Investor**" means an "accredited investor" within the meaning
of Rule 501(a) of Regulation D under the U.S. Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmmm) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnnn) "**Written Direction of the Corporation**" means an instrument in writing signed by any
one officer or director of the Corporation on behalf of the Corporation.

1.2 Meaning of "Outstanding"

Every Note certified or authenticated by the Trustee completing their Internal Procedures hereunder and delivered by the Trustee hereunder shall be deemed to be outstanding until it is cancelled, prepaid or redeemed or delivered to the Trustee for cancellation, prepayment or redemption and monies for the payment thereof shall have been set aside under Article 9, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notes which have been partially redeemed, purchased or prepaid shall be deemed to be outstanding only
to the extent of the unredeemed, unpurchased or un-prepaid part of the principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) when a new Note has been issued in substitution for a Note which has been lost, stolen or destroyed, only
one of such Notes shall be counted for the purpose of determining the aggregate principal amount of Notes outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for the purposes of any provision of this Indenture entitling holders of outstanding Notes to vote, sign
consents, requisitions or other instruments or take any other action under this Indenture, or to constitute a quorum of any meeting of
Noteholders, Notes (other than the Initial Notes) owned directly or indirectly, legally or equitably, by the Corporation or any Affiliate
of the Corporation shall be disregarded except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the purpose of determining whether the Trustee shall be protected in relying on any such vote, consent,
requisition or other instrument or action, or on the Noteholders present or represented at any meeting of Noteholders, only the Notes
which are certified by the Corporation as being so owned shall be disregarded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notes so owned which have been pledged in good faith other than to the Corporation or a Affiliate of the
Corporation shall not be so disregarded if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right to
vote such Notes, sign consents, requisitions or other instruments or take such other actions in his discretion free from the control of
the Corporation or a Affiliate of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) for the purposes of disregarding any Notes (other than the Initial Notes) owned legally or beneficially
by the Corporation or any Affiliate, the Corporation shall provide to the Trustee, at the request of the Trustee, from time to time, an
Officer's Certificate of the Corporation setting forth as at the date of such certificate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the names of the Noteholders which, to the knowledge of the Corporation, are owned,
directly or indirectly, legally or beneficially by the Corporation or any Affiliate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal amount of Notes owned legally or beneficially by each of such holders;

and the Trustee in making such determination shall be entitled to rely upon such certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notes so owned shall not be disregarded if they are the only Notes outstanding.

1.3 Interpretation

In this Indenture:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number or masculine gender shall include the plural number or the feminine
or neuter genders, and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all references to Articles and Schedules refer, unless otherwise specified, to articles of and schedules
to this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all references to Sections refer, unless otherwise specified, to Sections, subsections or clauses of this
Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) words and terms denoting inclusiveness (such as "**include**" or "**includes** "
or "**including** "), whether or not so stated, are not limited by and do not imply limitation of their context or the words
or phrases which precede or succeed them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reference to any agreement or other instrument in writing means such agreement or other instrument in
writing as amended, modified, replaced or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) unless otherwise indicated, reference to a statute shall be deemed to be a reference to such statute as
amended, re-enacted or replaced from time to time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) unless otherwise indicated, time periods within which a payment is to be made or any other action is to
be taken hereunder shall be calculated by including the day on which the period commences and excluding the day on which the period ends.

1.4 Headings, Etc.

The division of this Indenture into Articles and Sections, the provision of a **Table of Contents** and the insertion of headings are for convenience of reference only and shall not affect the construction, interpretation, validity or enforceability of this Indenture or of the Notes.

1.5 Time of Essence

Time shall be of the essence of this Indenture.

1.6 Monetary References

Whenever any amounts of money are referred to herein, such amounts shall be deemed to be in lawful currency of the United States unless otherwise expressed.

1.7 Invalidity, Etc.

Any provision hereof which is prohibited or unenforceable shall be ineffective only to the extent of such prohibition or unenforceability, without invalidating the remaining provisions hereof.

1.8 Language

Each of the parties hereto hereby acknowledges that it has consented to and requested that this Indenture and all documents relating thereto, including, without limiting the generality of the foregoing, the form of Initial Note attached hereto as Schedule A, be drawn up in the English language only. *Les parties aux présentes reconnaissent avoir accepté et demandé que le présent acte de fiducie et tous les documents s'y rapportant, y compris, sans restreindre la portée générale de ce qui précède, le formulaire de débenture joint aux présentes à titre d'annexe A, soient rédigés en langue anglaise seulement.* 

1.9 Successors and Assigns

All covenants and agreements of the Corporation in this Indenture and the Notes shall bind its successors and assigns, whether so expressed or not. All covenants and agreements of the Trustee in this Indenture shall bind its successors.

1.10 Severability

In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, such provision shall be deemed to be severed herefrom or therefrom and the validity, legality and enforceability of the remaining provisions shall not in any way be affected, prejudiced or impaired thereby.

1.11 Entire Agreement

This Indenture and all supplemental indentures and Schedules hereto and thereto, the Notes issued hereunder and thereunder and each Subordination Agreement together constitute the entire agreement between the parties hereto with respect to the indebtedness created hereunder and thereunder and under the Notes and supersedes as of the date hereof all prior memoranda, agreements, negotiations, discussions and term sheets, whether oral or written, with respect to the indebtedness created hereunder or thereunder and under the Notes.

1.12 Benefits of Indenture

Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any paying agent, the Noteholders, any Senior Creditor (to the extent provided in Article 6 only), and (to the extent provided in Section 8.12) the holders of Shares, any benefit or any legal or equitable right, remedy or claim under this Indenture.

1.13 Applicable Law and Attornment

This Indenture, any supplemental indenture and the Notes shall be governed by and interpreted in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein and shall be treated in all respects as British Columbia contracts. With respect to any suit, action or proceedings relating to this Indenture, any supplemental indenture or any Note, the Corporation, the Trustee and each holder irrevocably submit and attorns to the non-exclusive jurisdiction of the courts of the Province of British Columbia located in Vancouver.

1.14 Currency of Payment

Unless otherwise indicated in a supplemental indenture with respect to any particular series of Notes, all payments to be made under this Indenture or a supplemental indenture shall be made in United States dollars.

1.15 Non-Business Days

Whenever any payment to be made hereunder shall be due, any period of time would begin or end, any calculation is to be made or any other action is to be taken on, or as of, or from a period ending on, a day other than a Business Day, such payment shall be made, such period of time shall begin or end, such calculation shall be made and such other action shall be taken, as the case may be, unless otherwise specifically provided herein, on or as of the next succeeding Business Day without any additional interest, cost or charge to the Corporation.

1.16 Accounting Terms

Except as hereinafter provided or as otherwise indicated in this Indenture, all calculations required or permitted to be made hereunder pursuant to the terms of this Indenture shall be made in accordance with GAAP. For greater certainty, GAAP shall include any accounting standards, including IFRS, that may from time to time be approved for general application by the Chartered Professional Accountants of Canada.

1.17 Calculations

The Corporation shall be responsible for making all calculations called for hereunder. The Corporation shall make such calculations in good faith and, absent manifest error, the Corporation's calculations shall be final and binding on holders and the Trustee. The Corporation will provide a schedule of its calculations to the Trustee and the Trustee shall be entitled to rely conclusively on the accuracy of such calculations without independent verification.

1.18 Schedules

The following Schedules are incorporated into and form part of this Indenture:

Schedule A – Form of Note

Schedule B – Form of Prepayment Notice

Schedule C – Silver Purchase Agreement Term Sheet

Schedule D – Form of Mortgage

Schedule E – Approved Banks- Approved Banks

In the event of any inconsistency between the provisions of any Section of this Indenture and the provisions of the Schedules which form a part hereof, the provisions of this Indenture shall prevail to the extent of the inconsistency.

**ARTICLE 2 THE NOTES**

2.1 Limit of Notes

Subject to the limitation in respect of the aggregate principal amount of Initial Notes set out in Section 2.4(a), the aggregate principal amount of Notes authorized to be issued under this Indenture is $15,000,000, but Notes may be issued only upon and subject to the conditions and limitations herein set forth. For greater certainty, except as otherwise provided herein, this Indenture does not limit the ability of the Corporation to incur additional indebtedness, including indebtedness for borrowed money or from mortgaging, pledging or charging its properties to secure any future indebtedness of the Corporation.

2.2 Terms of Notes of any Series

The Notes may be issued in the same series or of a different series. There shall be established herein or in or pursuant to one or more indentures supplemental hereto, prior to the initial issuance of Notes of any particular series (other than the Initial Notes as provided for in Section 2.4):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the designation of the Notes of the series (other than the Initial Notes as provided for in Section 2.4),
which shall distinguish the Notes of the series from the Notes of all other series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any limit upon the aggregate principal amount of the Notes of the series that may be certified or authenticated
and delivered under this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the date or dates on which the principal of the Notes of the series is payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the rate or rates at which the Notes of the series shall bear interest, if any, the date or dates from
which such interest shall accrue, on which such interest shall be payable and on which record date, if any, shall be taken for the determination
of holders to whom such interest shall be payable and/or the method or methods by which such rate or rates or date or dates shall be determined;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the place or places where the principal of and any interest on Notes of the series shall be payable or
where any Notes of the series may be surrendered for registration of transfer or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the right of the Corporation to redeem Notes of the series, in whole or in part, at its option and the
period or periods within which, the price or prices at which and any terms and conditions upon which, Notes of the series may be so redeemed,
pursuant to any sinking fund or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the obligation of the Corporation effect a Deposit Set-off and cancel the Notes of the series at the option
of the holder thereof and any terms and conditions upon which Notes of the series shall be include a Deposit Set-off right in whole or
in part, pursuant to such obligations, including pursuant to the occurrence of a Triggering Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if other than denominations of $1,000 and any integral multiple thereof, the denominations in which Notes
of the series shall be issuable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject to the provisions of this Indenture, any trustee, Depositories, authenticating or paying agents,
transfer agents or registrars or any other agents with respect to the Notes of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other events of default or covenants with respect to the Notes of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) whether the Notes of the series will be guaranteed by any Person and the terms of any such guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the form and terms of the Notes of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if applicable, that the Notes of the series shall be issuable in whole or in part as one or more Global
Notes or Book Based Only Notes and, in such case, the Depository or Depositories for such Global Notes or Book Based Only Notes in whose
name, or whose nominee's name, the Global Notes or Book Based Only Notes will be registered, and any circumstances other than or
in addition to those set out in Section 2.9 or 3.1 or those applicable with respect to any specific series of Notes, as the case may be,
in which any such Global Note or Book Based Only Note may be transferred
to and registered in the name of a Person other than the Depository for such Global Notes or Book Based Only Notes or a nominee thereof;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any other terms of the Notes of the series (which terms shall not be inconsistent with the provisions
of this Indenture).

All Notes of any one series shall be substantially identical. All Notes of any one series need not be issued at the same time and may be issued from time to time, including pursuant to a Periodic Offering, consistent with the terms of this Indenture, if so provided herein, by or pursuant to such resolution of the Board of Directors, Officer's Certificate of the Corporation or in an indenture supplemental hereto.

2.3 Form of Notes

Except in respect of the Initial Notes, the form of which is provided for herein, the Notes of each series shall be substantially in such form or forms (not inconsistent with this Indenture) as shall be established herein or by or pursuant to one or more resolutions of the Board of Directors (or to the extent established pursuant to, rather than set forth in, a resolution of the Board of Directors, in an Officer's Certificate of the Corporation detailing such establishment) or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have imprinted or otherwise reproduced thereon such legend or legends or endorsements, not inconsistent with the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto or with any rules or regulations of any securities exchange or securities regulatory authority or to conform to general usage, all as may be determined by the directors or officers of the Corporation executing such Notes on behalf of the Corporation, as conclusively evidenced by their execution of such Notes.

2.4 Form and Terms of Initial Notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Initial Notes authorized for issue immediately is limited to an aggregate principal amount of $12,500,000
and shall be designated as "7.5% Secured Notes Due May 31, 2028". The Initial Notes may be issued in one or more tranches
and shall include the grant of the Silver Purchase Agreement Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Initial Notes (including any Initial Note that may be issued after the date of this Indenture) shall
be dated as of the date of original issuance and shall mature on the Maturity Date for the Initial Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Initial Notes shall bear interest from and including Closing Date at the rate of 7.5% per annum (based
on a year of 365 days), payable in arrears semi-annually (with the exception of the first interest payment which will include interest
from and including the Closing Date) on June 30 and December 31 of each year, the first such payment to fall due on December 31, 2021
and the last such payment (representing interest payable from the last Interest Payment Date to, but excluding, the Maturity Date of the
Initial Notes) to fall due on May 31, 2028 or on any earlier date of permitted prepayment or repurchase, including following delivery
of a Triggering Event Notice, which interest shall be payable after as well as before maturity and after as well as before default, with
interest on amounts in default at the same rate, compounded semi-annually, computed on the basis of a 365 day year. Each
payment of interest on the Initial Notes will include interest accrued for the period commencing on and including the immediately preceding
Interest Payment Date on which Interest Obligations were paid to Noteholders (or, if none, the initial issuance date of the Initial Notes)
to but excluding the next following Interest Payment Date (or permitted prepayment or repurchase date, as the case may be). The record
dates for the accrued and unpaid amount of interest on the Initial Notes will be the close of business on the fifth Business Day prior
to the Interest Payment Date or the Maturity Date, as the case may be. For greater certainty, only holders of record on the fifth Business
Day prior to the Interest Payment Date will receive interest on the Notes held during that period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) After the Closing Date, the Corporation agrees that upon the occurrence of the Triggering Event, and provided
the Initial Notes are outstanding at such time, the Corporation shall forthwith provide written notice of such Triggering Event to the
holders of Initial Notes (the "**Triggering Event Notice**") pursuant to Section 12.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon receipt of the Triggering Event Notice, the holders of Initial Notes shall have a period of thirty
days (the "**Silver Purchase Agreement Exercise Period**") to provide written notice to the Corporation of the Subscriber's
exercise of the Silver Purchase Agreement Right (the "**Silver Purchase Agreement Exercise Notice** "). If applicable, and
required by the Depository, holders who wish to exercise the Silver Purchase Agreement Right, shall first withdraw its Initial Note position
from the Depository and transfer their position from the Global Note into a registered definitive Note Certificate in the name of the
beneficial owner of the Intial Note pursuant to Section 3.2(b)(viii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Silver Purchase Agreement Right shall immediately expire and the Maturity Date for the Initial Note
will be the 31st day following delivery of the Triggering Event Notice should one of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the principal amount of the Initial Notes be prepaid in whole or in part by the Corporation prior to maturity
pursuant to Article 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The principal amount of the Initial Notes and all accrued interest be paid in whole or in part by the
Corporation at maturity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the holder of Initial Notes not provide the Silver Purchase Agreement Exercise Notice to the Corporation
before the expiry of the Silver Purchase Agreement Exercise Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Following receipt of the Triggering Event Notice, should a holder of Initial Notes provide the Silver
Purchase Agreement Exercise Notice to the Corporation before the expiry of the Silver Purchase Agreement Exercise Period, the Subscriber
and the Corporation shall use commercially reasonable efforts to forthwith enter into a silver purchase and sale agreement with such holder
on substantially the terms set forth in Schedule C and effect the Deposit Set-Off. Upon written notice from the Corporation to the Trustee
that such holder of Initial Notes has exercised its Silver Purchase Agreement Right, entered into a definitive purchase and sale agreement
pursuant to this Section 2.4(g) and effected the Deposit Set-off, the Trustee shall cancel the Initial Notes of such holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Following delivery of a Silver Purchase Agreement Exercise Notice pursuant to Section 2.4(g), should a
silver purchase and sale agreement on substantially the terms set forth in Schedule C not be entered into and a Deposit Set-off not be
effected within 30 days of the delivery of the Triggering Event Notice, the Silver Purchase Agreement Right shall deemed to be unexercised
and immediately expire and the Maturity Date for the Initial Note will be the 31st day following delivery of the Triggering Event Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon and subject to the terms and conditions of this Indenture, the Corporation will on the Maturity Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) repay the outstanding principal of the Initial Notes by paying to the Trustee in lawful currency of the
United States an amount equal to the principal amount of the outstanding Initial Notes held by each holder of Initial Notes as of the
Maturity Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) satisfy the Interest Obligation in respect of the Initial Notes which have matured by paying such interest
in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Initial Notes may be subordinated in all material respects to the Senior Indebtedness of the Corporation
in accordance with the provisions of Article 6. In accordance with Section 2.12, the Initial Notes will rank *pari passu* with each
other and with each series of Notes issued under this Indenture or under indentures supplemental to this Indenture (regardless of their
actual date or terms of issue), unless such other Notes are subordinated to the Initial Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each Initial Note and the certificate of the Trustee endorsed thereon shall be issued in definitive certificated
form using substantially the form of the Note Certificate set out in Schedule A, dated as of the date of issue thereof and issued in denominations
of $1,000 and integral multiples thereof, with such insertions, omissions, substitutions or other variations as shall be required or permitted
by this Indenture, and may have imprinted or otherwise reproduced thereon such legend or legends or endorsements, not inconsistent with
the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto or with
any rules or regulations of any securities exchange or securities regulatory authority or to conform with general usage, all as may be
determined by the Board of Directors, on behalf of the Corporation executing such Initial Note in accordance with Section 2.7 hereof,
as conclusively evidenced by their execution of an Initial Note. Each Initial Note shall additionally bear such distinguishing letters
and numbers as the Trustee shall approve. Notwithstanding the foregoing, an Initial Note may be in such other form or forms as may, from
time to time, be approved by a resolution of the Board of Directors, or as specified in an Officer's Certificate of the Corporation.
The Initial Notes may be engraved, lithographed, printed, mimeographed or typewritten or partly in one form and partly in another. The
Initial Notes issued to U.S. Purchasers shall be issued only as Note Certificates.

2.5 Certification and Delivery of Additional Notes

The Corporation may from time to time request the Trustee to certify and deliver Additional Notes of any series, by delivering to the Trustee the documents referred to below in this Section 2.5 whereupon the Trustee shall certify such Notes and cause the same to be delivered in accordance with the Written Direction of the Corporation referred to below or pursuant to such procedures acceptable to the Trustee as may be specified from time to time by a Written Direction of the Corporation. The maturity date, issue date, interest rate (if any) and any other terms of the Notes of such series shall be set forth in or determined by or pursuant to such Written Direction of the Corporation and procedures. In certifying such Notes, the Trustee shall be entitled to receive and shall be fully protected in relying upon, unless and until such documents have been superseded or revoked:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an Officer's Certificate of the Corporation and/or executed supplemental indenture by or pursuant
to which the form and terms of such Additional Notes were established;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Written Direction of the Corporation requesting certification and delivery of such Additional Notes
or Initial Notes issued after the date hereof, as the case may be, and setting forth delivery instructions; provided that, with respect
to Notes of a series subject to a Periodic Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Written Direction of the Corporation addressed to the Trustee may be delivered by the Corporation
to the Trustee prior to the delivery to the Trustee of such Additional Notes of such series for certification and delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Trustee shall certify and deliver Additional Notes of such series for original issue from time to
time, in an aggregate principal amount not exceeding the aggregate principal amount, if any, established for such series, pursuant to
a Written Direction of the Corporation or pursuant to procedures acceptable to the Trustee as may be specified from time to time by a
Written Direction of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the maturity date or dates, issue date or dates, interest rate or rates (if any) and any other terms of
Additional Notes of such series shall be determined by an executed supplemental indenture or by Written Direction of the Corporation or
pursuant to such procedures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if provided for in such procedures, such Written Direction of the Corporation may authorize certification
and delivery pursuant to electronic instructions from the Corporation which electronic instructions shall be promptly confirmed in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if requested, an opinion of Counsel, in form and substances satisfactory to the Corporation to the effect
that all requirements imposed by this Indenture and by law in connection with the proposed issue of Additional Notes or Initial Notes
issued after the date hereof, as the case may be, have been complied with, subject to the delivery of certain documents or instruments
specified in such opinion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an Officer's Certificate of the Corporation certifying that the Corporation is not in default under
this Indenture, that the terms and conditions for the certification and delivery of Additional Notes or Initial Notes issued after the
date hereof, as the case may be, have been complied with subject to the delivery of any documents or instruments specified
in such Officer's Certificate and that no Event of Default exists or will exist upon such certification and delivery; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such other documentation as may be reasonably requested by the Trustee.

2.6 Issue of Global Notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation may specify that the Notes of a series are to
be issued in whole or in part as one or more Global Notes registered in the name of a Depository, or its nominee, designated by the Corporation
in the Written Direction of the Corporation delivered to the Trustee at the time of issue of such Notes, and in such event the Corporation
shall execute and the Trustee shall certify and deliver one or more Global Notes that shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) represent an aggregate amount equal to the principal amount of the outstanding Notes of such series to
be represented by one or more Global Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) be delivered by the Trustee to such Depository or pursuant to such Depository's instructions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) bear a legend substantially to the following effect:

"THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREIN REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE TRANSFERRED TO OR EXCHANGED FOR NOTES REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE DATED AS OF THE _____ DAY OF 24th AUGUST, 2021 BETWEEN INTERNATIONAL CUMO MINING CORPORATION AND COMPUTERSHARE TRUST COMPANY OF CANADA (THE "INDENTURE"). EVERY NOTE AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS NOTE SHALL BE A GLOBAL NOTE SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("CDS") TO INTERNATIONAL CUMO MINING CORPORATION (THE "ISSUER") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Depository designated for a Global Note must, at the time of its designation and at all times while
it serves as such Depository, be a clearing agency registered or designated under the securities legislation of the jurisdiction where
the Depository has its principal office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the provisions hereof, at the Corporation's option, Notes may be issued and registered
in the name of CDS or its nominee and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the deposit of which may be confirmed electronically by the Trustee to a particular Depository Participant
through CDS; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall be identified by a specific CUSIP/ISIN as requested by the Corporation from CDS to identify each
specific series of Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Corporation issues Notes in an uncertificated format, Beneficial Holders of such Notes registered
and deposited with CDS shall not receive Note certificates in definitive form and shall not be considered owners or holders thereof under
this Indenture or any supplemental indenture. Beneficial interests in Notes registered and deposited with CDS will be represented only
through the non-certificated inventory system administered by CDS. Transfers of Notes registered and deposited with CDS between Depository
Participants shall occur in accordance with the rules and procedures of CDS. Neither the Corporation nor the Trustee shall have any responsibility
or liability for any aspects of the records relating to or payments made by CDS or its nominee, on account of the beneficial interests
in Notes registered and deposited with CDS. Nothing herein shall prevent the Beneficial Holders of Notes registered and deposited with
CDS from voting such Notes using duly executed proxies or voting instruction forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All references herein to actions by, notices given or payments made to, Noteholders shall, where Notes
are held through CDS, refer to actions taken by, or notices given or payments made to, CDS upon instruction from the Depository Participants
in accordance with its rules and procedures. For the purposes of any provision hereof requiring or permitting actions with the consent
of or the direction of Noteholders evidencing a specified percentage of the aggregate Notes outstanding, such direction or consent may
be given by Beneficial Holders acting through CDS and the Depository Participants owning Notes evidencing the requisite percentage of
the Notes. The rights of a Beneficial Holder whose Notes are held established by law and agreements between such holders and CDS and the
Depository Participants upon instructions from the Depository Participants. Each of the Trustee and the Corporation may deal with CDS
for all purposes (including the making of payments) as the authorized representative of the respective Noteholders and such dealing with
CDS shall constitute satisfaction or performance, as applicable, of their respective obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) For so long as Notes are held through CDS, if any notice or other communication is required to be given
to Noteholders, the Trustee will give such notices and communications to CDS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If CDS resigns or is removed from its responsibility as Depository and the Trustee is unable or does not
wish to locate a qualified successor, CDS shall provide the Trustee with instructions for registration of Notes in the names and in the
amounts specified by CDS, and the Corporation shall issue and the Trustee shall certify and deliver the aggregate number of Notes then
outstanding in the form of definitive Note Certificates representing such Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The rights of Beneficial Holders who hold securities entitlements in respect of the Notes through the
non-certificated inventory system administered by CDS shall be limited to those established by Applicable Law and agreements between the
Depository and the Depository Participants and between such Depository Participants and the Beneficial Holders who hold securities entitlements
in respect of the Notes through the non-certificated inventory system administered by CDS, and such rights must be exercised through a
Depository Participant in accordance with the rules and procedures of the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything herein to the contrary, none of the Corporation nor the Trustee nor any agent
thereof shall have any responsibility or liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the electronic records maintained by the Depository relating to any ownership interests or other interests
in the Notes or the depository system maintained by the Depository, or payments made on account of any ownership interest or any other
interest of any Person in any Note represented by an electronic position in the non-certificated inventory system administered by CDS
(other than Depository or its nominee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for maintaining, supervising or reviewing any records of the Depository or any Depository Participant
relating to any such interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any advice or representation made or given by the Depository or those contained herein that relate to
the rules and regulations of the Depository or any action to be taken by the Depository on its own direction or at the direction of any
Depository Participant.

2.7 Execution of Notes

Unless issued as Book Based Only Notes, all Notes shall be signed (either manually or by facsimile or scanned signature) by any one Director or Authorized Officer, on behalf of the Corporation, holding office at the time of signing. A facsimile or scanned signature upon a Note shall for all purposes of this Indenture be deemed to be the signature of the Person whose signature it purports to be. Notwithstanding that any Person whose signature, either manual or in facsimile or scan, appears on a Note as Director or Authorized Officer on behalf of the Corporation, may no longer hold such office at the date of the Note or at the date of the certification and delivery thereof, such Note shall be valid and binding upon the Corporation and entitled to the benefits of this Indenture.

2.8 Certification

No Note shall be issued or, if issued, shall be obligatory on the Corporation or shall entitle the holder to the benefits of this Indenture, until it has been manually certified by or on behalf of the Trustee substantially in the form set out in this Indenture, in the relevant supplemental indenture, or in some other form approved by the Trustee, or in the case of Notes issued as Book Based Only Notes, until such Notes have been authenticated by the Trustee and confirmed by the Trustee by completing its Internal Procedures. Such certification on any Note or authentication of any Book Based Notes by the Trustee, and the Corporation shall, and hereby acknowledges that it shall, thereupon be conclusive evidence that such Note is duly issued, is a valid obligation of the Corporation and the holder is entitled to the benefits thereof.

The certificate of the Trustee signed on any Notes, or any interim Notes hereinafter mentioned, shall not be construed as a representation or warranty by the Trustee as to the validity of this Indenture or of the Notes or interim Notes or as to the issuance of the Notes or interim Notes and the Trustee shall in no respect be liable or answerable for the use made of the Notes or interim Notes or any of them or the proceeds thereof. The certificate of the Trustee signed on any Notes or any interim Notes shall, however, be a representation and warranty by the Trustee that such Notes or interim Notes have been duly certified by or on behalf of the Trustee pursuant to the provisions of this Indenture. The register shall be final and conclusive evidence as to all matters relating to uncertificated Notes with respect to which this Indenture requires the Trustee to maintain records or accounts. In case of differences between the register at any time and any other time the register at the later time shall be controlling, absent manifest error and such uncertificated Notes are binding on the Corporation.

2.9 Interim Notes or Certificates

Pending the delivery of definitive Notes of any series to the Trustee, the Corporation may issue and the Trustee certify in lieu thereof interim Notes in such forms and in such denominations and signed in such manner as provided herein, entitling the holders thereof to definitive Notes of the series when the same are ready for delivery; or the Corporation may execute and the Trustee certify a temporary Note for the whole principal amount of Notes of the series then authorized to be issued hereunder and deliver the same to the Trustee and thereupon the Trustee may issue its own interim certificates in such form and in such amounts, not exceeding in the aggregate the principal amount of the temporary Note so delivered to it, as the Corporation and the Trustee may approve entitling the holders thereof to definitive Notes of the series when the same are ready for delivery; and, when so issued and certified, such interim or temporary Notes or interim certificates shall, for all purposes but without duplication, rank in respect of this Indenture equally with Notes duly issued hereunder and, pending the exchange thereof for definitive Notes, the holders of the interim or temporary Notes or interim certificates shall be deemed without duplication to be Noteholders and entitled to the benefit of this Indenture to the same extent and in the same manner as though the said exchange had actually been made. Forthwith after the Corporation shall have delivered the definitive Notes to the Trustee, the Trustee shall cancel such temporary Notes, if any, and shall call in for exchange all interim Notes or certificates that shall have been issued and forthwith after such exchange shall cancel the same. No charge shall be made by the Corporation or the Trustee to the holders of such interim or temporary Notes or interim certificates for the exchange thereof. All interest paid upon interim or temporary Notes or interim certificates shall be noted thereon as a condition precedent to such payment unless paid by cheque to the registered holders thereof.

2.10 Mutilation, Loss, Theft or Destruction

In case any of the Notes issued hereunder shall become mutilated or be lost, stolen or destroyed, the Corporation, in its discretion, may issue, and thereupon the Trustee shall certify and deliver, a new Note upon surrender and cancellation of the mutilated Note, or in the case of a lost, stolen or destroyed Note, in lieu of and in substitution for the same, and the substituted Note shall be in a form approved by the Trustee and shall be entitled to the benefits of this Indenture and rank equally in accordance with its terms with all other Notes issued or to be issued hereunder. In case of loss, theft or destruction the applicant for a substituted Note shall furnish to the Corporation and to the Trustee such evidence of the loss, theft or destruction of the Note as shall be satisfactory to them in their discretion and shall also furnish an indemnity and surety bond satisfactory to them in their discretion. The applicant shall pay all reasonable expenses incidental to the issuance of any substituted Note.

2.11 Concerning Interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Notes issued hereunder, whether originally or upon exchange or in substitution for previously issued
Notes shall bear interest: (i) from and including their issue date, or (ii) from and including the last date to which interest shall have
been paid or made available for payment on the outstanding Notes of that series, whichever shall be the later, or, in respect of Notes
subject to a Periodic Offering, from and including their issue date or from and including the last date to which interest shall have been
paid or made available for payment on such Notes, in all cases, to and excluding the next date to which interest shall be paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise specifically provided in the terms of the Notes or any series of Notes interest shall
be computed on the basis of a 365 day year. Whenever interest is computed on the basis of a year (the "**deemed year** ")
which contains fewer days than the actual number of days in the calendar year of calculation, such rate of interest shall be expressed
as a yearly rate for purposes of the *Interest Act* (Canada) by multiplying such rate of interest by the actual number of days in
the calendar year of calculation and dividing it by the number of days in the deemed year.

2.12 Notes to Rank Pari Passu

The Notes will be direct secured obligations of the Corporation. Each Note will rank *pari passu* with each other Note of the same series (regardless of their actual date or terms of issue) and, unless otherwise specified herein or in any supplemental indenture, with each series of Notes issued under this Indenture or under any supplemental indenture to this Indenture, and may be subordinated to the Senior Indebtedness in accordance with the terms and conditions of each Subordination Agreement.

2.13 Payment of Principal

Except as may otherwise be provided herein or in any supplemental indenture in respect of any series of Notes or specified in a resolution of the Board of Directors, on behalf of the Corporation, payments of amounts due upon maturity of the Notes to be paid and satisfied in cash by the Corporation will be made in the following manner. The Corporation will establish and maintain with the Trustee a Maturity Account for each series of Notes. Each such Maturity Account shall be maintained by and be subject to the control of the Trustee for the purposes of this Indenture.

On or before 9:00 a.m. (Vancouver time) five Business Days immediately prior to each Maturity Date for Notes outstanding from time to time under this Indenture, the Corporation will deliver to the Trustee a certified cheque, wire transfer or by other means acceptable to the Trustee for deposit in the applicable Maturity Account in an amount sufficient to pay the cash amount payable in respect of such Notes (including the principal amount together with any accrued and unpaid interest thereon less any Tax required by law to be deducted or withheld). The Trustee, on behalf of the Corporation, will pay to each holder entitled to receive payment the principal amount of and premium (if any) and accrued and unpaid interest on the Note, upon surrender of the Note at the principal office of the Trustee in Vancouver, British Columbia or regarding Global Notes based on the usual process acceptable to the CDS and the Trustee, each acting reasonably. The delivery of such funds to the Trustee for deposit to the applicable Maturity Account will satisfy and discharge the liability of the Corporation for the Notes to which the delivery of funds relates to the extent of the amount delivered (plus the amount of any Tax deducted or withheld as aforesaid) and such Notes will thereafter to that extent not be considered as outstanding under this Indenture and such holder will have no other right in regard thereto other than to receive out of the money so delivered or made available the amount to which it is entitled. Interest shall cease to accrue on the Notes on the Maturity Date provided the Trustee has received, by the Maturity Date, from the Corporation all of the funds due and payable on the Notes.

2.14 Payment of Interest

Except as may otherwise be provided herein (including in respect of the Initial Notes) or in any supplemental indenture in respect of any series of Notes or specified in a resolution of the Board of Directors, on behalf of the Corporation, either directly or through the Trustee or any agent of the Trustee, on the date the Interest Obligation is payable under the Indenture the Corporation shall pay and satisfy the applicable Interest Obligation and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall send or forward by prepaid ordinary mail, electronic transfer of funds or such other means as may
be agreed to by the Trustee, payment of such interest (less any Taxes required to be deducted in accordance with Section 2.15) to the
order of the registered holder of such Note appearing on the registers maintained by the Trustee at the close of business on the fifth
Business Day prior to each Interest Payment Date, and if by cheque addressed to the holder at the holder's last address appearing
on the register, unless such holder otherwise directs. Provided the Trustee is in receipt of funds from the Corporation prior to making
any payment, if payment is made by cheque, such cheque shall be forwarded at least three days prior to each date on which interest becomes
due and if payment is made by other means (such as electronic transfer of funds, provided the Trustee must receive confirmation of receipt
of funds prior to being able to wire funds to holders), such payment shall be made in a manner whereby the holder receives credit for
such payment on the date such interest on such Note becomes due. The mailing of such cheque or the making of such payment by other means
shall, to the extent of the sum represented thereby, plus the amount of any Tax withheld as aforesaid, satisfy and discharge all liability
for interest on such Note, unless in the case of payment by cheque, such cheque is not paid at par on presentation. In the event of nonreceipt
of any cheque for or other payment of interest by the Person to whom it is so sent as aforesaid, the Corporation will issue to such Person
a replacement cheque or other payment for a like amount upon being furnished with such evidence of non-receipt as it shall reasonably
require and upon being indemnified to its satisfaction. Notwithstanding the foregoing, if the Corporation is prevented by circumstances
beyond its control (including any interruption in mail service) from making payment of
any interest due on each Note in the manner provided above, the Corporation may make payment of such interest or make such interest available
for payment in any other manner acceptable to the Trustee with the same effect as though payment had been made in the manner provided
above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a series of Notes is represented by one or more Global Notes or Book Based Only Notes, then all payments
of interest on the Global Notes or Book Based Only Notes shall be made by electronic funds transfer or cheque made payable to the Depository
or its nominee on the day interest is payable for subsequent payment to Beneficial Holders of interests in the applicable Global Note
or Book Based Only Note, unless the Corporation and the Depository otherwise agree. None of the Corporation, the Trustee or any agent
of the Trustee for any Note issued as a Global Note or Book Based Only Note will be liable or responsible to any Person for any aspect
of the records related to or payments made on account of beneficial interests in any Global Note or Book Based Only Note or for maintaining,
reviewing, or supervising any records relating to such beneficial interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If payment is made through the Trustee, by 9:00 a.m. (Vancouver time) at least five Business Days prior
to the related Interest Payment Date for a Note or to the date of mailing the cheques for the interest due on such Interest Payment Date,
whichever is earlier, the Corporation shall deliver sufficient funds to the Trustee by electronic transfer or certified cheque or make
such other arrangements for the provision of funds as may be agreeable between the Trustee and the Corporation in order to effect payment
of such applicable Interest Obligation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee is authorized by the Corporation to make payments of interest, premium (if any) and principal
to holders, by electronic funds transfer, upon the request of such holder and the Trustee's fees payable in respect thereof will be for
the account of the Corporation.

2.15 Withholding Tax

The Corporation or the Trustee on behalf of the Corporation will be entitled to deduct and withhold any applicable Taxes or similar charges (including interest, penalties or similar amounts in respect thereof) imposed or levied by or on behalf of any Governing Authority having power to Tax, including pursuant to the Tax Act and the Internal Revenue Code, as applicable, from any payment to be made on or in connection with the Notes and, provided that the Corporation forthwith remits such withheld amount to such Governing Authority and files all required forms in respect thereof and, at the same time, provides copies of such remittance and filing to the Trustee and/or the relevant Noteholder, as applicable, the amount of any such deduction or withholding will be considered an amount paid in satisfaction of the Corporation's obligations under the Notes and there is no obligation on the Corporation to gross-up amounts paid to a holder in respect of such deductions. The Corporation shall provide the Trustee and/or the relevant Noteholder, as applicable, with copies of receipts or other communications relating to the remittance of such withheld amount or the filing of such forms received from such government, authority or agency promptly after receipt thereof.

The Trustee shall have no obligation to verify any payments under Applicable Laws. The Trustee shall at all times be indemnified and held harmless by the Corporation from and against any personal liabilities of the Trustee incurred in connection with the failure of the Corporation or its agents, to report, remit or withhold Taxes as required by Applicable Laws or otherwise failing to comply with Applicable Laws respecting Taxes, unless the failure is caused by the gross negligence, bad faith or wilful misconduct of the Trustee. This indemnification shall survive the resignation or removal of the Trustee and the termination of this Indenture solely to the extent that such liabilities have been incurred in connection with taxation years occurring during the term of this Indenture.

2.16 Note Certificate and U.S. Legend

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For Notes issued in certificated form, the form of certificate representing Notes shall be substantially
as set out in Schedule A hereto or such other form as is authorized from time to time by the Trustee. Each Note Certificate shall be authenticated
manually on behalf of the Trustee. Each Note Certificate shall be signed by any authorized officer or director of the Corporation, whose
signature shall appear on the Note Certificate and may be printed, lithographed or otherwise mechanically reproduced thereon and, in such
event, certificates so signed are as valid and binding upon the Corporation as if it had been signed manually. Any Note Certificate which
has two signatures as hereinbefore provided shall be valid notwithstanding that one or more of the persons whose signature is printed,
lithographed or mechanically reproduced no longer holds office at the date of issuance of such certificate. The Note Certificates may
be engraved, printed or lithographed, or partly in one form and partly in another, as the Trustee may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Note shall be considered issued and shall be valid or obligatory or shall entitle the holder thereof
to the benefits of this Indenture, until it has been authenticated by the Trustee. Authentication by the Trustee shall not be construed
as a representation or warranty by the Trustee as to the validity of this Indenture or of such Note Certificates (except the due authentication
thereof) or as to the performance by the Corporation of its obligations under this Indenture and the Trustee shall in no respect be liable
or answerable for the use made of the Notes or any of them or of the consideration thereof. Authentication by the Trustee shall be conclusive
evidence as against the Corporation that the Notes so authenticated have been duly issued hereunder and that the holder thereof is entitled
to the benefits of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Note Certificate shall be considered issued and authenticated or, if authenticated, shall be obligatory
or shall entitle the holder thereof to the benefits of this Indenture, until it has been authenticated by signature by or on behalf of
the Trustee substantially in the form of the Note set out in Schedule A hereto. Such authentication on any such Note Certificate shall
be conclusive evidence that such Note is duly authenticated and is valid and a binding obligation of the Corporation and that the holder
is entitled to the benefits of this Indenture. The authentication by the Trustee on any such Note hereunder shall not be construed as
a representation or warranty by the Trustee as to the validity of this Indenture or of such Note or its issuance (except the due authentication
thereof and any other warranties by law) or as to the performance by the Corporation of its obligations under this Indenture and the Trustee
shall in no respect be liable or answerable for the use made of the Notes or any of them or the proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Notes have not been and will not be registered under the U.S. Securities Act or any state securities
laws. To the extent that Initial Notes are offered and sold to U.S. Purchasers, such
Initial Notes shall be "restricted securities" within the meaning assigned to that term in Rule 144(a)(3) under the U.S. Securities
Act. Subject to 2.16(e), such securities, as well as all securities issued in exchange for or in substitution of such securities, shall
be issued in a certificated form and, until such time as the same is no longer required under applicable requirements of the U.S. Securities
Act or state securities laws, shall bear the following legend (the **"U.S. Legend** "):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT") OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON EXCHANGES IN CANADA."

provided that, if any of the Notes are being sold in accordance with Rule 904 of Regulation S under the U.S. Securities Act, the legend may be removed by (i) providing to the Trustee or the Corporation's registrar and transfer agent, as applicable, a declaration in the form the Corporation may prescribe from time to time and (ii) if required by the Trustee or the Corporation's registrar and transfer agent, as applicable, an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, or other evidence reasonably satisfactory to the Corporation, that the proposed transfer may be effected without registration under the U.S. Securities Act; and provided, further, that, if any such securities are being sold under Rule 144 under the U.S. Securities Act, the legend may be removed by delivering to the Corporation and the Trustee or the Corporation's registrar and transfer agent, as applicable, an opinion of counsel of recognized standing reasonably satisfactory to the Corporation and the Trustee, that the legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Prior to the issuance of the Notes, the Corporation shall notify
the Trustee, in writing, concerning which Notes are to bear the U.S. Legend. The Trustee will thereafter maintain a list of all registered
holders from time to time of such legended Notes.

**ARTICLE 3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP**

3.1 Notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to each series of Notes, the Corporation shall cause to be kept by and at the principal office
of the Trustee in the City of Vancouver and by the Trustee or such other registrar as the Corporation, with the approval of the Trustee,
may appoint at such other place or places, if any, as may be specified in the Notes of such series or as the Corporation may designate
with the approval of the Trustee, a register in which shall be entered the names and addresses of the holders of Notes and particulars
of the Notes held by them respectively and of all transfers of Notes. Such registration shall be noted on the Notes by the Trustee or
other registrar unless a new Note shall be issued upon such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No transfer of a Note shall be valid unless made on such register referred to in Section 3.1(a) by the
registered holder or such holder's executors, administrators or other legal representatives or an attorney duly appointed by an instrument
in writing in form and executed in a manner satisfactory to the Trustee or other registrar upon surrender of the Notes together with a
duly executed form of transfer attached as Schedule A acceptable to the Trustee and upon compliance with such other reasonable requirements
as the Trustee or other registrar may prescribe, nor unless the name of the transferee shall have been noted on the Note by the Trustee
or other registrar.

3.2 Global Notes or Book Based Only Notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to each series of Notes issuable in whole or in part as one or more Global Notes or as Book
Based Only Notes, the Corporation shall cause to be kept by and at the principal offices of the Trustee in the City of Vancouver and by
the Trustee or such other registrar as the Corporation, with the approval of the Trustee, may appoint at such other place or places, if
any, as the Corporation may designate with the approval of the Trustee, a register in which shall be entered the name and address of the
holder of each such Global Note or Book Based Only Note (being the Depository, or its nominee, for such Global Note or Book Based Only
Note) as holder thereof and particulars of the Global Note or Book Based Only Note held by it, and of all transfers thereof. If any Notes
of such series are at any time not Global Notes or Book Based Only Notes, the provisions of Section 3.1 shall govern with respect to registrations
and transfers of such Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of this Indenture, a Global Note or Book Based Only Note may not be
transferred by the registered holder thereof and accordingly, no definitive certificates shall be issued to Beneficial Holders except
in the following circumstances or as otherwise specified in a resolution of the Directors, an Officer's Certificate or a supplemental
indenture relating to a particular series of Additional Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Global Notes or Book Based Only Notes may be transferred by a Depository to a nominee of such Depository
or by a nominee of a Depository to such Depository or to another nominee of such Depository or by a Depository or its nominee to a successor
Depository or its nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Global Notes or Book Based Only Notes may be transferred at any time after (i) the Depository for
 such Global Notes or Book Based Only Notes, as the case may be, or the Corporation has notified the Trustee that the Depository is
 unwilling or unable to continue as Depository for such Global Notes or Book Based Only Notes, or (ii) the Depository ceases to be a clearing agency
or otherwise ceases to be eligible to be a Depository under Section 2.6, provided in each case that at the time of such transfer the Trustee
and the Corporation are unable to locate a qualified successor Depository for such Global Notes or Book Based Only Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Global Notes or Book Based Only Notes may be transferred at any time after the Corporation has determined,
in its sole discretion, with the consent of the Trustee to terminate the book-entry only registration system or book based entry, as the
case may be, in respect of such Global Notes or Book Based Only Notes and has communicated such determination to the Trustee in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Global Notes or Book Based Only Notes may be transferred at any time after the Trustee has determined
that an Event of Default has occurred and is continuing with respect to the Notes of the series issued as a Global Note or Book Based
Only Notes, as the case may be, provided that Beneficial Holders of the Notes representing, in the aggregate, more than 25% of the aggregate
principal amount of the Notes of such series advise the Depository in writing, through the Depository Participants, that the continuation
of the book-entry only registration system or book based entry, as applicable, for such series of Notes is no longer in their best interest
and also provided that at the time of such transfer the Trustee has not waived the Event of Default pursuant to Section 8.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Global Notes or Book Based Only Notes may be transferred if required by Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Global Notes or Book Based Only Notes are to be Authenticated to or for the account or benefit of a person
in the United States or a U.S. Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Global Notes or Book Based Only Notes may be transferred if the bookentry only registration system or
book based entry, as applicable, ceases to exist;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Global Notes or Book Based Only Notes may be transferred to the beneficial owner if required to effect
an exercise of the Silver Purchase Agreement Right following delivery of Triggering Event Notice pursuant to Section 2.4(e); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Global Notes or Book Based Only Notes may be transferred at the direction of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to the Global Notes or Book Based Only Notes, unless and until definitive certificates have
been issued to Beneficial Holders of the Notes pursuant to subsection 3.2(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation and the Trustee may deal with the Depository for all purposes (including paying interest
on the Notes) as the sole holder of such series of Notes and the authorized representative of the Beneficial Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the rights of the Beneficial Holders shall be exercised only through the Depository and shall be limited
to those established by law and agreements between such Beneficial Holders and the Depository or the Depository Participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Depository will make book-entry or book based, as applicable, transfers among the Depository Participants;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) whenever this Indenture requires or permits actions to be taken based upon instruction or directions of
Noteholders evidencing a specified percentage of the outstanding Notes, the Depository shall be deemed to be counted in that percentage
only to the extent that it has received instructions to such effect from the Beneficial Holders or the Depository Participants, and has
delivered such instructions to the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever a notice or other communication is required to be provided to Noteholders, unless
and until definitive certificate(s) have been issued to Beneficial Holders pursuant to Section 3.2(b), the Trustee shall provide all such
notices and communications to the Depository for forwarding by the Depository to such Beneficial Holders in accordance with Applicable
Securities Legislation. Upon the termination of the book-entry only registration system or book based entry, as applicable, on the occurrence
of one of the conditions specified in Section 3.2(b) with respect to a series of Notes issued hereunder, the Trustee shall notify all
applicable Depository Participants and Beneficial Holders, through the Depository, of the availability of definitive Note certificates.
Upon surrender by the Depository of the certificate(s) representing the Global Notes, if applicable, and receipt of new registration instructions
from the Depository, the Trustee shall deliver the definitive Note certificates for such Notes to the holders thereof in accordance with
the new registration instructions and thereafter, the registration and transfer of such Notes will be governed by Section 3.1 and the
remaining Sections of this 2.16(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provisions of this Indenture or the Notes, transfers and exchanges of Notes
and beneficial interests in Global Notes registered and deposited with CDS between Participants and Beneficial Holders shall occur in
accordance with the rules and procedures of CDS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding any provisions made in this Indenture for the issuance, certification and authentication
of Notes in physical form as Additional Notes or Global Notes, the Notes issued under the terms of this Indenture may also be issued to
the Depository in book based only form, non-certificated and appearing on the register of the Trustee as a book based entry. It is the
responsibility of the Corporation to make the necessary arrangements with its broker or brokers to obtain, in a timely manner, the necessary
instant deposit request identification number to facilitate the issuance of non-certificated Book Based Only Notes.

In the establishment and maintenance of a non-certificated Book Based Only Note issue, the Trustee shall maintain such a record on its register for Notes in book based form only. Transfers of Notes appearing on the register of the Depository shall otherwise occur as provided for in this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding any provisions made in this Indenture with respect to redemptions, either full (at maturity
or otherwise) or partial, the expiry dates, payment dates and other acts that may be required to be done in connection with this Indenture,
may be altered due to the internal procedures and processes with respect to cut-off times of the Depository. It is understood and agreed
to by the parties hereto that the Trustee shall have no responsibility in connection with any cut-off time imposed by the Depository.

3.3 Transferee Entitled to Registration

The transferee of a Note shall be entitled, after the appropriate form of transfer is lodged with the Trustee or other registrar and upon compliance with all other conditions in that behalf required by this Indenture or by law, to be entered on the register as the owner of such Note free from all equities or rights of set-off or counterclaim between the Corporation and the transferor or any previous holder of such Note, save in respect of equities of which the Corporation is required to take notice by statute or by order of a court of competent jurisdiction.

The Corporation shall direct the Trustee in writing as to matters related to any applicable hold periods and Applicable Securities Legislation and legending restrictions and requirements. Notwithstanding any other provisions of this Indenture, on the issuance or transfer of any Notes, no duty or responsibility whatsoever shall rest upon the Trustee to determine or verify the compliance with any Applicable Laws or regulatory requirements, and the Trustee shall be entitled to assume that all transfers of Notes are permissible pursuant to all Applicable Laws and regulatory requirements and the terms of this Indenture.

The Trustee may assume that the address of a Noteholder on the register of the Notes is the actual address of such Noteholder and is also determinative of the residence of such Noteholder and the address of any transferee to whom securities are transferred as shown on the transfer form is also determinative of the residence of such transferee.

3.4 No Notice of Trusts

3.5 Registers Open for Inspection

The registers referred to in Sections 3.1 and 3.2 shall, during regular business hours of the Trustee, be open for inspection by the Corporation, the Trustee or any Noteholder. Every registrar, including the Trustee, shall from time to time when requested so to do by the Corporation or by the Trustee, in writing, furnish the Corporation or the Trustee, as the case may be, with a list of names and addresses of holders of registered Notes entered on the register kept by them and showing the principal amount and serial numbers of the Notes held by each such holder, provided the Trustee shall be entitled to charge a reasonable fee to provide such a list.

3.6 Exchanges of Notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 3.7, Notes in any authorized form or denomination, other than Global Notes, may be
exchanged for Notes in any other authorized form or denomination, of the same series and date of maturity, bearing the same interest rate
and of the same aggregate principal amount as the Notes so exchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In respect of exchanges of Notes permitted by Section 3.6(a), Notes of any series may be exchanged only
at the principal office of the Trustee in the City of Vancouver or at such other place or places, if any, as may be specified in the Notes
of such series and at such other place or places as may from time to time be designated by the Corporation with the approval of the Trustee.
Any Notes tendered for exchange shall be surrendered to the Trustee. The Corporation shall execute and the Trustee shall certify all Notes
necessary to carry out exchanges as aforesaid. All Notes surrendered for exchange shall be cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notes issued in exchange for Notes which at the time of such issue have been selected or called for redemption
or prepayment at a later date shall be deemed to have been selected or called for redemption or prepayment in the same manner and shall
have noted thereon a statement to that effect.

3.7 Closing of Registers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Corporation nor the Trustee nor any registrar shall be required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) make transfers or exchanges of Notes on any Interest Payment Date or during the five preceding Business
Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) make transfers or exchanges of any Notes on the day of any selection by the Trustee of Notes to be prepaid
or during the five preceding Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make transfers or exchanges of any Notes which will have been selected or called for redemption unless
upon due presentation thereof for redemption or prepayment such Notes shall not be redeemed or prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to any restriction herein provided, the Corporation with the approval of the Trustee may at any
time close any register for any series of Notes, other than those kept at the principal office of the Trustee in the City of Vancouver,
and transfer the registration of any Notes registered thereon to another register (which may be an existing register) and thereafter such
Notes shall be deemed to be registered on such other register. Notice of such transfer shall be given to the holders of such Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Indenture, in the event that a Noteholder takes any action
described in Section 3.7(a) less than five Business Days in advance of the applicable action described in Section 3.7(a), the Trustee
and the Corporation shall use their respective commercially reasonable efforts to deliver cash to such Noteholder as soon as reasonably
practicable following receipt of written notification of the Noteholder taking such action.

3.8 Charges for Registration, Transfer and Exchange

For each Note exchanged, registered, transferred or discharged from registration, the Trustee or other registrar, except as otherwise herein provided, may make a reasonable charge for its services and in addition may charge a reasonable sum for each new Note issued (such amounts to be agreed upon from time to time by the Trustee and the Corporation), and payment of such charges and reimbursement of the Trustee or other registrar for any stamp Taxes or governmental or other charges required to be paid shall be made by the party requesting such exchange, registration, transfer or discharge from registration as a condition precedent thereto. Notwithstanding the foregoing provisions, no charge shall be made to a Noteholder hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any exchange of any interim or temporary Note or interim certificate that has been issued under Section
2.9 for a definitive Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any exchange of a Global Note as contemplated in Section 3.1; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for any exchange of any Note resulting from a partial repayment under Section 4.2.

3.9 Ownership of Notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise required by law, the Person in whose name any registered Note is registered shall for all the purposes of this Indenture be and be deemed to be the owner thereof and payment of or on account of the principal of and premium, if any, on such Note and interest thereon shall be made to such registered holder. (b) Neither the Corporation nor the Trustee shall have any liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any aspect of the records relating to the beneficial ownership of the Notes held by a Depository or of
the payments relating thereto made by the Depository; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) maintaining, supervising or reviewing any such records relating to the Notes.

The rules governing Depositories provide that they act as the agent and depository for Depository Participants. As a result, such Depository Participants must look solely to the Depository and Beneficial Holders of Notes must look solely to the Depository Participants for the payment of principal and interest on the Notes paid by or on behalf of the Corporation to the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in this Article 3, Beneficial Holders of Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) may not have Note certificates registered in their name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) may not have physical certificates representing their interest in the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) may not be able to sell the Notes to institutions required by law to hold certificates for securities
they own; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) may be unable to pledge Notes as security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The registered holder for the time being of any registered Note shall be entitled to the principal, premium,
and/or interest evidenced by such instruments, respectively, free from all equities or rights of set-off or counterclaim between the Corporation
and the original or any intermediate holder thereof and all Persons may act accordingly and the receipt of any such registered holder
for any such principal, premium or interest shall be a good discharge to the Trustee, any registrar and to the Corporation for the same
and none shall be bound to inquire into the title of any such registered holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Where Notes are registered in more than one name, the principal, premium, if any, and interest from time
to time payable in respect thereof may be paid to the order of all such holders, failing written instructions from them to the contrary,
and the receipt of any one of such holders therefor shall be a valid discharge, to the Trustee, any registrar and to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the Trustee's receipt of appropriate documentation, in the case of the death of one or
more joint holders of any Note the principal, premium, if any, and interest from time to time payable thereon may be paid to the order
of the survivor or survivors of such registered holders and the receipt of any such survivor or survivors therefor shall be a valid discharge
to the Trustee and any registrar and to the Corporation.

3.10 Non-Certificated Inventory System (NCI System)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary set out herein, all
Global Notes issued or to be issued to the Depository may, in the case of previously issued Notes, be surrendered to the Trustee for,
or, in the case of newly issued Notes, may be directly registered as, an electronic position on the register of Noteholders to be maintained
by the Trustee in accordance with Section 3.1. In such case, the Notes will be represented electronically through the NCI System. All
Notes maintained in such electronic position will be legal, valid, binding and enforceable obligations of the Corporation, entitling
the registered holders thereof to the same benefits as those registered holders who hold Notes in physical form. This Indenture and the
provisions contained herein will apply, *mutatis mutandis*, to such Notes held in such electronic position.

3.11 Note Certificate and U.S. Restrictions on Transfer

The parties hereto hereby acknowledge and agree that the Note Certificates bearing the U.S. Legend may not be reoffered, or resold, pledged or otherwise transferred except: (i) to the Corporation; (ii) outside the United States in accordance with Regulation S under the U.S. Securities Act and in compliance with applicable local laws and regulations; (iii) in compliance with the exemption from registration under the U.S. Securities Act provided by (A) Rule 144 under the U.S. Securities Act, if applicable, or (B) Rule 144A under the U.S. Securities Act, if available, and, in each case, and in accordance with applicable state securities laws; or (iv) in another transaction that does not require registration under the U.S. Securities Act or any applicable state securities laws; provided that in the case of each of (iii)(A) and (iv) such Noteholder has prior to such sale furnished to the Corporation and the Trustee an opinion of counsel reasonably satisfactory to the Corporation and the Trustee stating that such transaction is exempt from registration under the U.S. Securities Act and applicable state securities laws.

**ARTICLE 4 PREPAYMENT**

4.1 Prepayment

Subject to the terms and conditions of the Notes with the consent of the Noteholder, and provided that no Event of Default has occurred and is continuing, the Corporation shall have the right, but not the obligation, at any time after the Closing Date to prepay such Notes in cash, in whole or in part. Any prepayment in whole or in part of the Note will cause the Silver Purchase Agreement Right to immediately expire.

4.2 Partial Prepayment

If less than all the Notes of any series for the time being outstanding are at any time to be prepaid, the Notes to be so prepaid shall be selected by the Trustee on a *pro rata* basis to the nearest multiple of $1,000 in accordance with the principal amount of the Notes registered in the name of each holder or in such other manner as the Trustee deems equitable, subject to compliance with Applicable Securities Legislation, as required. Unless otherwise specifically provided in the terms of any series of Notes, no Note shall be prepaid in part unless the principal amount redeemed is $1,000 or a multiple thereof. For this purpose, the Trustee may make, and from time to time vary, regulations with respect to the manner in which such Notes may be drawn for prepayment and regulations so made shall be valid and binding upon all holders of such Notes notwithstanding that as a result thereof one or more of such Notes may become subject to prepayment in part only or for cash only. In the event that one or more of such Notes becomes subject to prepayment in part only, upon surrender of any such Notes for payment of the Prepayment Price (as defined in the Prepayment Notice) the Corporation shall execute and the Trustee shall certify and deliver without charge to the holder thereof or upon the holder's order one or more new Notes for the non-prepaid part of the principal amount of the Note or Notes so surrendered or, with respect to a Global Note, the Trustee shall make notations on the Global Note of the principal amount thereof so prepaid. Unless the context otherwise requires, the terms "**Note**" or "**Notes**" as used in this Article 4 shall be deemed to mean or include any part of the principal amount of any Note which in accordance with the foregoing provisions has become subject to prepayment.

4.3 Notice of Prepayment

Notice of Prepayment (the "**Prepayment Notice**") of any series of Notes shall be given in writing to the Trustee substantially in the form attached as Schedule B hereto and the holders of the Notes so to be prepaid not less than 30 days prior to the date fixed for Prepayment (the "**Prepayment Date**") in the manner provided in Section 12.2. Every such notice shall specify the aggregate principal amount of Notes called for prepayment, accrued and unpaid interest thereon, the Prepayment Date, the Prepayment Price, and the places of payment and shall state that interest upon the principal amount of Notes called for prepayment shall cease to accrue and be payable from and after the Prepayment Date. In addition, unless all the outstanding Notes are to be prepaid, the Prepayment Notice shall specify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the distinguishing letters and numbers of the registered Notes which are to be redeemed (or of such thereof
as are registered in the name of such Noteholder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a published notice, the distinguishing letters and numbers of the Notes which are to be
redeemed or, if such Notes are selected *pro rata* or by terminal digit or other similar system, such particulars as may be sufficient
to identify the Notes so selected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of a Global Note, that the prepayment will take place in such manner as may be agreed upon
by the Depository, the Trustee and the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in all cases, the principal amounts of such Notes or, if any such Note is to be prepaid in part only,
the principal amount of such part.

In the event that all Notes to be prepaid are registered Notes, publication shall not be required.

4.4 Notes Due on Prepayment Dates

Notice having been given as aforesaid, all the Notes so called for prepayment shall thereupon be and become due and payable at the Prepayment Price on the Prepayment Date specified in such notice, in the same manner and with the same effect as if it were the date of maturity specified in such Notes, anything therein or herein to the contrary notwithstanding, and from and after such Prepayment Date, if the monies necessary to prepay such Notes shall have been deposited as provided in Section 4.5 and affidavits or other proof satisfactory to the Trustee as to the publication and/or mailing of such notices shall have been lodged with it, interest upon the Notes shall cease. If any question shall arise as to whether any notice has been given as above provided and such deposit made, such question shall be decided by the Trustee whose decision shall be final and binding upon all parties in interest.

4.5 Deposit of Prepayment Monies

Prepayment of Notes shall be provided for by the Corporation depositing with the Trustee or any paying agent to the order of the Trustee, by way of same day value wire transfer, on or before 9:00 a.m. (Vancouver time) five Business Days immediately prior to the Prepayment Date specified in such notice, such sums of money as may be sufficient to pay the Prepayment Price of the Notes so called for prepayment. The Corporation shall also deposit with the Trustee a sum of money sufficient to pay any charges or expenses which may be incurred by the Trustee in connection with such prepayment. Every such deposit shall be irrevocable. From the sums so deposited the Trustee shall pay or cause to be paid to the holders of such Notes so called for prepayment, upon surrender of such Notes, the principal, premium (if any) and interest (if any) to which they are respectively entitled on prepayment (less any Taxes required to be deducted in accordance with Section 2.15).

4.6 Failure to Surrender Notes Called for Prepayment

In case the holder of any Note so called for prepayment shall fail on or before the Prepayment Date so to surrender such holder's Note, or shall not within such time accept payment of the prepayment monies payable or give such receipt therefor, if any, as the Trustee may require, such prepayment monies may be set aside in trust, may be held in trust without interest, either in the deposit department of the Trustee or in a chartered bank, and such setting aside shall for all purposes be deemed a payment to the Noteholder of the sum so set aside and, to that extent, the Note shall thereafter not be considered as outstanding hereunder and the Noteholder shall have no other right except to receive payment out of the monies so paid and deposited, upon surrender and delivery up of such holder's Note of the Prepayment Price, as the case may be, of such Note. In the event that any money required to be deposited hereunder with the Trustee or any depository or paying agent on account of principal, premium, if any, or interest, if any, on Notes issued hereunder shall remain so deposited for a period of five years less a day from the Prepayment Date, then such monies, together with any distribution paid thereon, shall at the end of such period be paid over or delivered over by the Trustee or such depository or paying agent to the Corporation on its written demand, and thereupon the Trustee shall not be responsible to Noteholders for any amounts owing to them and subject to Applicable Law, thereafter the Noteholder in respect of which such money was so repaid to the Corporation shall have no rights in respect thereof, except to obtain payment of the money due from the Corporation, subject to any limitation period provided by any Applicable Laws relating to unclaimed property.

**ARTICLE 5 PURCHASE BY THE CORPORATION**

5.1 Purchase of Notes by the Corporation

Subject to Article 4, unless otherwise specifically provided with respect to a particular series of Notes, the Corporation may, at any time and from time to time but subject to each Subordination Agreement, purchase Notes in the market (which shall include purchases from or through an investment dealer or a firm holding membership on a recognized stock exchange or quotation system) or by tender or by private contract, at any price provided; however, that if an Event of Default has occurred and is continuing, the Corporation will not have the right to purchase Notes by private contract. All Notes so purchased may, at the option of the Corporation, be delivered to the Trustee and shall be cancelled and no Notes shall be issued in substitution therefor.

If, upon an invitation for tenders, more Notes are tendered at the same lowest price that the Corporation is prepared to accept, the Notes to be purchased by the Corporation shall be selected by the Trustee on a *pro rata* basis or in such other manner which the Trustee considers appropriate, from the Notes tendered by each tendering Noteholder who tendered at such lowest price. For this purpose the Trustee may make, and from time to time amend, regulations with respect to the manner in which Notes may be so selected, and regulations so made shall be valid and binding upon all Noteholders, notwithstanding the fact that as a result thereof one or more of such Notes become subject to purchase in part only. The holder of a Note of which a part only is purchased, upon surrender of such Note for payment, shall be entitled to receive, without expense to such holder, one or more new Notes for the unpurchased part so surrendered, and the Trustee shall certify and deliver such new Note or Notes upon receipt of the Note so surrendered or, with respect to a Global Note, the Depository shall make notations on the Global Note of the principal amount thereof so purchased.

**ARTICLE 6 SECURITY FOR NOTES AND SUBORDINATION OF NOTES**

6.1 Grant of Security Interest

As continuing collateral security for the due and timely payment and performance by the Corporation of its Note Liabilities, the Corporation hereby grants the continuing Security Interest and first-ranking Encumbrance in favour of the Trustee over the Secured Assets (subject only to Permitted Encumbrances) and shall deliver or cause to be delivered to the Trustee the Mortgage

6.2 Exceptions re: Contractual Rights, Licences, etc.

To the extent that the Encumbrances granted pursuant to any Security Document would constitute a breach or cause the acceleration of any agreement, lease, contractual right, licence, approval, privilege, franchise or permit to which the Corporation is a party, the Encumbrance granted thereby shall not attach thereto but the Corporation shall hold its interest therein in trust for the Trustee on behalf of the Trustee and Noteholders, and shall grant an Encumbrance in such agreement, contractual right, licence or permit to the Trustee on behalf of the Trustee and Noteholders forthwith upon obtaining the appropriate consents to the creation of such Encumbrance. The Corporation agrees to use commercially reasonable efforts to obtain any such consent from time to time requested by the Trustee on behalf of the Trustee and the Noteholders.

6.3 Mortgage Registration;

The Corporation shall cause the Mortgage to be registered and shall take or cause to be taken such action, and execute and deliver or cause to be executed and delivered to the Trustee such agreements, deeds, documents and instruments, as the Trustee shall reasonably request, and register, file or record the same (or a notice or financing statement in respect thereof) in all offices where such registration, filing or recording is, in the reasonable opinion of the Corporation or the Corporation's counsel, necessary or advisable to constitute, perfect and maintain the Security Documents referred to in 6.1 as legal, valid and binding Encumbrances granted by the Corporation in favour of the Trustee, subject only to the Permitted Encumbrances and the requirements under this Article 6, in all jurisdictions reasonably required by the Purchaser, in each case within a reasonable time after the request therefor by the Purchaser or the Purchaser's counsel, and in each case, in form and substance satisfactory to the Purchaser, acting reasonably. The Security Interest shall rank *pari passu* among all holders and the Trustee, but shall be senior to all other indebtedness or liabilities of the Corporation, except for any Senior Indebtedness. The Note Liabilities shall be subordinate and junior in right of payment to the prior payment in full of the principal, interest and all other items of indebtedness in respect of any Senior Indebtedness to the extent and in the manner set forth herein and pursuant to any Subordination Agreement. The Security Interest may be subordinated to any and all Encumbrances which affect all or any portion of the Secured Assets which secure Senior Indebtedness. The holder, by his acceptance hereof, shall be deemed to have agreed to the subordinations described herein, shall be bound by the provisions of this Section 6.3 and Article 6 and shall do, perform, execute and deliver all acts, deeds and documents as may be necessary from time to time to give full force and effect to the intent of this Section 6.3 and Article 6, including authorizing the Trustee to enter into each Subordination Agreement, pursuant to Section 6.11.

The Corporation shall, at the Corporation's expense, ensure that the Security Interest in the Secured Assets, and all documents, caveats, security notices, financing statements and financing change statements in respect thereof, are promptly filed and re filed and registered as often as may be required by Applicable Law or as may be necessary or desirable to perfect and preserve the Encumbrances created herein by the Indenture and by the Mortgage and to ensure that such Security Interest is subordinate only to any Senior Indebtedness, and will promptly provide the Trustee with evidence (satisfactory to the Trustee) of such filing, registration and deposit after the making thereof. The Corporation shall, if and when requested to do so by the Trustee, furnish to the Trustee an opinion of Counsel to establish compliance with the provisions of this Section 6.3.

6.4 Permitted Dispositions of Secured Assets Before Default

Until an Event of Default has occurred and is continuing, the Corporation, without the consent of the Trustee, shall be entitled to make the following disposals of Secured Assets free of the Security Interests:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) abandonments, surrenders or terminations of immaterial rights or interests which are effected in the ordinary
course of business or otherwise in accordance with prudent industry practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) the expiration of any option agreement in respect of real or personal property and (ii) any surrender
or waiver of contractual rights or the settlement, release or surrender of contractual rights or other litigation claims in accordance
with prudent industry practice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) disposals of Secured Assets as permitted pursuant to any agreements governing Senior Indebtedness;

and the Trustee will, at the expense of the Corporation, execute and deliver from time to time releases and discharges necessary or required as advised by Counsel with respect to the foregoing subsections. In connection with any such request by the Corporation to the Trustee, the Corporation shall confirm in an Officer's Certificate of the Corporation that the release and discharge of such Secured Assets is permitted by the Note Documents and that all conditions precedent under the Note Documents for the release and discharge have been satisfied. Except as specifically permitted above, the Corporation will not dispose of any Secured Assets to any Person without the prior approval of holders of at least 66 2/3% of the principal amount of outstanding Notes.

6.5 Applicability of Article

The indebtedness, liabilities and obligations of the Corporation evidenced by Notes issued hereunder of any series which by their terms are subordinate, including on account of principal, premium, interest or otherwise, together with the obligations (of any kind) of the Corporation under or in respect of the Mortgage (collectively, the "**Note Liabilities**"), may be subordinated and postponed both in right of payment and in right of security to the extent and in the manner hereinafter set forth in the following sections of this Article 6, to the full and final payment of all Senior Indebtedness, and each holder of any such Note by his acceptance thereof agrees to and shall be bound by the provisions of this Article 6.

6.6 Order of Payment

In the event of any insolvency or bankruptcy proceedings, or any receivership, liquidation, reorganization or other similar proceedings relative to the Corporation, or to its property or assets, or in the event of any proceedings for voluntary liquidation, dissolution or voluntary winding-up of the Corporation, whether or not involving insolvency or bankruptcy, or any marshaling of the assets and liabilities of the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Senior Indebtedness shall first be paid in full, before any payment is made on account of the Note
Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any payment or distribution of assets of the Corporation, whether in cash, property or securities, to
which the holders of the Notes or the Trustee on behalf of such holders would be entitled except for the provisions of this Article 6,
shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating agent making
such payment or distribution, directly to the holders of Senior Indebtedness or their representative or representatives, or to the trustee
or trustees under any indenture pursuant to which any instruments evidencing any of such Senior Indebtedness may have been issued, to
the extent necessary to pay all Senior Indebtedness in full after giving effect to any concurrent payment or distribution, or provision
therefor, to the holders of such Senior Indebtedness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in respect of and to the extent of any Senior Indebtedness, any Senior Creditor or a receiver or a receiver-manager
of the Corporation or of all or part of its assets or any other enforcement agent may sell, mortgage, or otherwise dispose of the Corporation's
assets in whole or in part, free and clear of all Note Liabilities and the Security Interest and without the approval of the Noteholders
or the Trustee or any requirement to account to the Trustee or the Noteholders.

The rights of any Senior Creditor and priority of any Senior Indebtedness and the subordination pursuant hereto shall not be affected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) whether or not the Senior Indebtedness is secured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the time, sequence or order of creating, granting, executing, delivering of, or registering, perfecting
or failing to register or perfect any security notice, caveat, financing statement or other notice in respect of the Senior Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the time or order of the attachment, perfection or crystallization of any security constituted by the
Senior Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the taking of any collection, enforcement or realization proceedings pursuant to the Senior Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the date of obtaining of any judgment or order of any bankruptcy court or any court administering bankruptcy,
insolvency or similar proceedings as to the entitlement of the Senior Creditor, or any of them or the Noteholders, or any of them, to
any money or property of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the failure to exercise any power or remedy reserved to a Senior Creditor under the Senior Security or
to insist upon a strict compliance with any terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) whether any Senior Security is now perfected, hereafter ceases to be perfected, is avoidable by any trustee
in bankruptcy or like official or is otherwise set aside, invalidated or lapses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the date of giving or failing to give notice to or making demand upon the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any other matter whatsoever.

6.7 Subrogation to Rights of Holders of Senior Indebtedness

Subject to the prior and indefeasible payment in full of all Senior Indebtedness, and subject to the provisions of Section 6.9, the holders of the Notes shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of assets of the Corporation applicable to the Senior Indebtedness, to the extent of the application thereto of such payments or other assets which would have been received by the holders of the Notes but for the provisions hereof until the principal of, premium, if any, and interest on the Notes shall be paid in full, and no such payments or distributions to the holders of the Notes of cash, property or securities, which otherwise would be payable or distributable to the holders of the Senior Indebtedness, shall, as between the Corporation, its creditors other than the holders of Senior Indebtedness, and the Noteholders, be deemed to be a payment by the Corporation to the holders of the Senior Indebtedness or on account of the Senior Indebtedness, it being understood that the provisions of this Article 6 are and are intended solely for the purpose of defining the relative rights of the holders of the Notes, on the one hand, and the holders of any Senior Indebtedness, on the other hand.

The Trustee, for itself and on behalf of each of the Noteholders, hereby waives any and all rights to require a Senior Creditor to pursue or exhaust any rights or remedies with respect to the Corporation or any property and assets subject to any Senior Security or in any other manner to require the marshalling of property, assets or security in connection with the exercise by the Senior Creditors of any rights, remedies or recourses available to them.

6.8 Obligation to Pay Not Impaired

Nothing contained in this Article 6 or elsewhere in this Indenture or in the Notes is intended to or shall impair, as between the Corporation, its creditors other than the holders of any Senior Indebtedness, and the holders of the Notes, the obligation of the Corporation, which is absolute and unconditional, to pay to the holders of the Notes the principal of, premium, if any, and interest on the Notes, as and when the same shall become due and payable in accordance with their terms, or affect the relative rights of the holders of the Notes and creditors of the Corporation other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the Noteholder from exercising all remedies otherwise permitted by Applicable Law upon default under this Indenture, subject to the rights, under this Article 6 of the holders of Senior Indebtedness in respect of cash, property or securities of the Corporation received upon the exercise of any such remedy.

6.9 No Payment if Senior Indebtedness in Default

Upon the maturity of any Senior Indebtedness by lapse of time, acceleration or otherwise, or any other enforcement of any Senior Indebtedness, then, except as provided in Section 6.10, all principal of and interest on all such matured Senior Indebtedness shall first be paid in full before any payment is made on account of the Note Liabilities.

In case of a circumstance constituting a default or event of default with respect to any Senior Indebtedness, and during the continuance thereof, or upon the acceleration of the maturity of any Senior Indebtedness unless and until such default or event of default shall have been cured or waived or shall have ceased to exist or such acceleration has been rescinded or when a payment would cause a default or event of default under any Senior Indebtedness, no cash payment shall be made by the Corporation except as provided in Section 6.10) with respect to the Note Liabilities and neither the Trustee nor the Noteholders shall be entitled to demand, accelerate, institute proceedings for the collection of (which shall, for certainty include proceedings related to an adjudication or declaration as to the insolvency or bankruptcy of the Corporation and other similar creditor proceedings), or receive any payment or benefit (including without limitation by set-off, combination of accounts or otherwise in any manner whatsoever) on account of the Note Liabilities after the happening of such a default or event of default or acceleration (except as provided in Section 6.10), and unless and until such default or event of default shall have been cured or waived or shall have ceased to exist or such acceleration has been rescinded, such payments shall be held in trust for the benefit of, and, if and when such Senior Indebtedness shall have become due and payable, shall be paid over to, the holders of the Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing an amount of the Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness; provided, however, subject to each Subordination Agreement, that the foregoing shall in no way prohibit, restrict or prevent the Trustee, pursuant to the terms and conditions of this Indenture, from taking such actions as may be necessary to preserve claims of the Trustee and/or the holders of the Notes under any Note Document in any bankruptcy, reorganization or insolvency proceeding (including, without limitation, the filing of proofs of claim in any such bankruptcy, reorganization or insolvency proceedings by or against the Corporation and exercising its rights to vote as an unsecured creditor under any such bankruptcy, reorganization or insolvency proceedings commenced by or against the Corporation).

The fact that any payment hereunder is prohibited by this Section 6.9 shall not prevent the failure to make such payment from being an Event of Default hereunder.

6.10 Payment on Notes Permitted

Subject to the terms and conditions of each Subordination Agreement, nothing contained in this Article 6 or elsewhere in this Indenture, or in any of the other Note Documents, shall affect the obligation of the Corporation to make, or prevent the Corporation from making, where it is otherwise permitted to do so, at any time except as prohibited by Sections 6.6 or 6.9 any payment of principal of or, premium, if any, or interest. The fact that any such payment is prohibited by a Subordination Agreement, Sections 6.6 or 6.9 shall not prevent the failure to make such payment from being an Event of Default hereunder. Subject to the terms of a Subordination Agreement, nothing contained in this Article 6, elsewhere in this Indenture or in any of the Note Documents, other than in the case of a continuing default or event of default under Senior Indebtedness or acceleration of Senior Indebtedness that has not been rescinded, in which case Section 6.9 shall govern, or except as prohibited by Sections 6.6 or 6.9, shall prevent the application by the Trustee of any monies deposited with the Trustee hereunder for the purpose, to the payment of or on account of the Note Liabilities.

6.11 Confirmation of Subordination

Each Noteholder by his acceptance thereof authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effect the subordination as provided in this Article 6 and appoints the Trustee his attorney-in-fact for any and all such purposes. This power of attorney, being coupled with an interest and rights, shall be irrevocable. Each Noteholder by his acceptance thereof authorizes and directs the Trustee to execute the Subordination Agreement among the Corporation, the agent for lenders thereunder, as Senior Creditor, and the Trustee upon request of the Corporation, and upon being furnished an Officer's Certificate of the Corporation stating that one or more named Persons are Senior Creditors and specifying the amount and nature of the Senior Indebtedness of such Senior Creditor, and the Corporation shall confirm in the Officer's Certificate that such subordination agreement is permitted by the Note Documents and that all conditions precedent under the Note Documents for the subordination agreement have been satisfied in compliance with this Section 6.11 and no Event of Default has occurred or event has occur that with the lapse of time will become an Event of Default, the Trustee shall enter into a written subordination agreement or agreements, with the Corporation and the Person or Persons named in such Officer's Certificate providing that such Person or Persons are entitled to all the rights and benefits of this Article 6 as a Senior Creditor and for such other matters, such as an agreement not to amend the provisions of this Article 6 and the definitions herein, which prejudice the rights of the holders of Senior Indebtedness under this Article 6 without the prior written consent of such Senior Creditor, or their representative or the trustee under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued as the Senior Creditor may reasonably request. Such agreement shall be conclusive evidence that the indebtedness specified therein is Senior Indebtedness, however, nothing herein shall impair the rights of any Senior Creditor who has not entered into such a subordination agreement. Notwithstanding any terms set out in this Indenture or the other Note Documents, the holders of the Notes acknowledge that their rights pursuant to this Indenture and the other Note Documents, and the obligations and undertakings of the Corporation, shall in all respects be subject to the terms and conditions of the Subordination Agreement. The holders of the Notes acknowledge that the Trustee will not be involved in the negotiation or preparation of any Subordination Agreement. The holders of the Notes further acknowledge that the Trustee has not and will not provide any advice to the holders of the Notes in respect of the Note Documents, the adequacy of the Note Documents or as to the priority, registration or perfection of their interest in the Secured Assets.

6.12 Knowledge of Trustee

Notwithstanding the provisions of this Article 6 or any provision in this Indenture or in any other Note Documents contained, the Trustee will not be charged with knowledge of any Senior Indebtedness or of any default in the payment thereof, or of the existence of any Event of Default or any other fact that would prohibit the making of any payment of monies to or by the Trustee, or the taking of any other action by the Trustee, unless and until the Trustee has received written notice thereof from the Corporation, any Noteholder or any Senior Creditor or a trustee or agent on behalf of any one or more Senior Creditors, and such notice to the Trustee shall be deemed to be notice to holders of the Notes. The Trustee will notify Noteholders as soon as reasonably practicable of such notice.

6.13 Trustee May Hold Senior Indebtedness

The Trustee is entitled to all the rights set forth in this Article 6 with respect to any Senior Indebtedness at the time independently held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in this Indenture deprives the Trustee of any of its rights as such holder.

6.14 Rights of Holders of Senior Indebtedness Not Impaired

No right of any present or future holder of any Senior Indebtedness to enforce the subordination herein will at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the Corporationor by any non-compliance by the Corporation with the terms, provisions and covenants of any Note Document, regardless of any knowledge thereof which any such holder may have or be otherwise charged with.

6.15 Altering the Senior Indebtedness

Subject to Section 6.16, the holders of any Senior Indebtedness have the right to extend, renew, modify or amend the terms of the Senior Indebtedness (other than in respect of its principal amount) or any security therefor and to release, sell or exchange such security and otherwise to deal freely with the Corporation, all without notice to or consent of the Noteholders or the Trustee and without affecting the liabilities and obligations of the parties to this Indenture or the Noteholders.

6.16 Additional Indebtedness

Other than as may be expressly provided for herein or in any amendment or supplement to this Indenture, this Indenture does not restrict the Corporation or any of its Affiliates from incurring additional indebtedness for borrowed money or other obligations or liabilities, provided that Senior Indebtedness shall be restricted to a maximum permitted aggregate principal amount of $25,000,000.

6.17 Additional Encumbrances

The Corporation may not incur additional Encumbrances, except for (i) Permitted Encumbrances (including any Senior Security); or (ii) Encumbrances approved by holders of at least 66 2/3% of the principal amount of outstanding Notes.

6.18 Invalidated Payments

In the event that any Senior Indebtedness shall be paid in full and subsequently, for whatever reason, such formerly paid or satisfied Senior Indebtedness becomes unpaid or unsatisfied, the terms and conditions of this Article 6 shall be reinstated and the provisions of this Article shall again be operative until all such Senior Indebtedness is repaid in full, provided that such reinstatement shall not give such Senior Creditors any rights or recourses against the Trustee or the Noteholders for amounts paid to the Noteholders subsequent to such payment or satisfaction in full and prior to such reinstatement.

6.19 Contesting Security

The Trustee, for itself and on behalf of the Noteholders, agrees that it shall not contest or bring into question the validity, perfection or enforceability of any Senior Indebtedness, the Senior Security, or the relative priority of the Senior Security.

The Corporation and each holder by its acceptance of a Note likewise agrees, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the provisions of this Article 6 are an inducement and consideration to each holder of Senior Indebtedness
to give or continue credit to the Corporation, the Corporation's
Affiliates or others or to acquire such Senior Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each holder of Senior Indebtedness may accept the benefit of this Article 6 on the terms and conditions
set forth in this Article 6 by giving or continuing credit to the Corporation, the Corporation's Affiliates or others or by acquiring
or having outstanding as of the date hereof such Senior Indebtedness, in each case without notice to the Trustee and without establishing
actual reliance on this Article 6; and

and shall be binding on the Corporation, the Trustee and each holder of a Note whether or not any confirmation described in Section 6.11
is requested, executed or delivered.

**ARTICLE 7 COVENANTS OF THE CORPORATION**

The Corporation hereby covenants and agrees with the Trustee for the benefit of the Trustee and the Noteholders, that so long as any Notes remain outstanding:

7.1 To Pay Principal, Premium and Interest

The Corporation will duly and punctually pay or cause to be paid to every Noteholder the principal of, premium (if any) and interest accrued on the Notes of which it is the holder on the dates, at the places and in the manner mentioned herein and in the Notes.

7.2 To Give Notice of Default

The Corporation shall notify the Trustee in writing immediately upon obtaining knowledge of any Event of Default hereunder.

7.3 Preservation of Existence, Etc.

Subject to the express provisions hereof, the Corporation will carry on and conduct its activities, and cause its Affiliates to carry on and conduct their Businesses and activities in a manner consistent with past business practices; and, subject to the express provisions hereof, it will do or cause to be done all things necessary to preserve and keep in full force and effect its and its Affiliates' respective existences and rights.

7.4 Performance of Covenants by Trustee

If the Corporation shall fail to perform any of its covenants contained in any Note Document, the Trustee may notify the Noteholders of such failure on the part of the Corporation or may itself perform any of the covenants capable of being performed by it, but the Trustee shall be under no obligation to do so or to notify the Noteholders. All sums so expended or advanced by the Trustee shall be promptly repayable by the Noteholders. No such performance, expenditure or advance by the Trustee shall be deemed to relieve the Corporation of any default under any Note Document.

7.5 Certificate of Compliance

The Corporation shall deliver to the Trustee, within 60 days after the end of each fiscal year, an Officer's Certificate of the Corporation as to the knowledge of such officer of the Corporation who executes the Officer's Certificate of the Corporation's compliance with all conditions and covenants in this Indenture certifying that after reasonable investigation and inquiry, the Corporation has complied with all covenants, conditions or other requirements contained in this Indenture, the non-compliance with which could, with the giving of notice, lapse of time or otherwise, constitute an Event of Default hereunder, or if such is not the case, setting forth with reasonable particulars the circumstances of any failure to comply and steps taken or proposed to be taken to eliminate such circumstances and remedy such Event of Default, as the case may be.

7.6 SEC Notice

The Corporation confirms that as at the date of execution of this Indenture it does not have a class of securities registered pursuant to Section 12 of the United States Securities Exchange Act or have a reporting obligation pursuant to Section 15(d) of the United States Securities Exchange Act. The Corporation further represents and warrants that it is not filing with the SEC as a Foreign Private Issuer (as such term is defined in the Securities Exchange 1934 Act) and covenants that, in the event that it shall begin to file as a Foreign Private Issuer, the Corporation shall promptly deliver to the Trustee an Officers' Certificate (in a form provided by the Trustee) certifying such "reporting issuer" status and such other information as the Trustee may require at such given time including, but not limited to, the Central Index Key that has been assigned for filing purposes. The Corporation covenants that in the event that (i) any class of its securities shall become registered pursuant to Section 12 of the United States Securities Exchange Act or the Corporation shall incur a reporting obligation pursuant to Section 15(d) of the United States Securities Exchange Act, or (ii) any such registration or reporting obligation shall be terminated by the Corporation in accordance with the United States Securities Exchange Act, the Corporation shall promptly deliver to the Trustee an Officers' Certificate of the Corporation notifying the Trustee of such registration or termination and such other information as the Trustee may require at the time. The Corporation acknowledges that the Trustee is relying upon the foregoing representation and covenants in order to meet certain SEC obligations with respect to those clients who are filing with the SEC.

7.7 Further Instruments and Acts

The Corporation will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture.

7.8 Covenants as to Security

The Corporation will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ensure that the Security Interest will at all times constitute a valid and perfected security on the Secured
Assets, subordinate only to the Senior Security pursuant to the Subordination Agreement, and at all times take all actions necessary or
desirable to create, perfect and maintain the Security Interest as perfected security over the Secured Assets, subordinate only to the
Senior Security pursuant to the Subordination Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at all times do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered,
all such acts, deeds, mortgages, hypothecs, transfers, assignments and assurances in law (including consents, approvals or waivers from
third parties under applicable documents or applicable legislation) as may be necessary or
desirable to ensure that the Trustee (for itself and the Noteholders) has a perfected Security Interest upon the Secured Assets, subordinate
only to the Senior Security pursuant to the Subordination Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) cause all necessary and proper steps to be taken diligently to protect and defend the Secured Assets and
the proceeds thereof against any adverse claims or demands, including without limitation, the employment or use of counsel for the prosecution
or defence of litigation and the contest, settlement, release or discharge of any such claim or demand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Security Interest shall have become enforceable and the Trustee shall have become bound to enforce
or has commenced enforcing the same, it shall from time to time execute and do all such assurances and things as the Trustee may reasonably
require for facilitating the realization of the Security Interest and for exercising all the powers, authorities and discretions conferred
upon the Trustee under this Indenture and for confirming to any purchaser of the Secured Assets, whether sold by the Trustee hereunder
or by judicial proceedings, the title to the Secured Assets so sold, and will give all notices and directions as the Trustee may consider
expedient.

7.9 Notice of Change of Chief Executive Officer and Notice of Changes Affecting the Business of the Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall promptly notify the Trustee upon a change in the individual or individuals holding
the office of chief executive officer of the Corporation, and as soon as practicable provide an updated certificate of incumbency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation will give written notice to the Trustee forthwith upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) request by the Trustee, confirmation of the place of business of the Corporation, including its chief
executive office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the change of location of the chief executive office of the Corporation if the change is to a location
outside of the province in which the office was previously located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any change in the name of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any continuance of the Corporation into another jurisdiction.

7.10 Securities Laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation will, at the relevant times and upon exercise of the relevant rights or elections, comply
and take all measures necessary to comply at all times with Applicable Securities Legislation including make application for any order,
ruling, registration or filing or give any notice required under Applicable Securities Legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee shall have no obligation to verify information relating to the Corporation's compliance
with this Section 7.10 and may act and rely upon all information provided by the Corporation with respect to such compliance, without
independent inquiry.

**ARTICLE 8 DEFAULT**

8.1 Events of Default

Each of the following events constitutes, and is herein sometimes referred to as, an "**Event of Default**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the failure to pay an Interest Obligation within fifteen (15) days of when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure to pay the principal amount, or premium (if any), of a Note when due whether at maturity,
upon redemption or prepayment, by acceleration or otherwise, within 15 days of when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) default in the performance of any material covenant in this Note that is not cured (or waiver obtained
for) within thirty (30) days of the Corporation receiving notice in writing given by the Trustee or from holders of not less than 25%
in aggregate principal amount of the Notes to the Corporation notifying of such default and requiring the Corporation to rectify such
default or obtain a waiver for same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Corporation institutes any proceeding or takes any corporate action or executes any agreement in connection
with the commencement of any proceeding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) seeking to be adjudicated a bankrupt or insolvent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) seeking liquidation, dissolution, winding-up, reorganization, arrangement, protection, relief or composition
or all or substantially all of its property or debt, or making a proposal with under any law relating to bankruptcy, insolvency, reorganization
or compromise of debts or other similar laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) seeking appointment of a receiver, trustee, agent, custodian or other similar official for all or substantially
all of its properties and assets or the Secured Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any creditor of the Corporation or any other Person institutes any proceeding or takes any corporate action
or executes any agreement in connection with the commencement of any proceeding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) seeking to adjudicate the Corporation a bankrupt or insolvent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) seeking liquidation, dissolution, winding-up, reorganization, arrangement, protection, relief or composition
of the Corporation or all or substantially all of its property or debt, or making a proposal with respect to the Corporation under any
law relating to bankruptcy, insolvency, reorganization or compromise of debts or other similar laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) seeking appointment of a receiver, trustee, agent, custodian or other similar official for the Corporation
or for all or substantially all of its properties and assets or the Secured Assets;

and such proceeding is not contested by the Corporation in good faith within fifteen (15) days of initiation of the proceedings or if any order sought in such proceeding (other than a procedural order) is granted and such order is not either dismissed or contested by the Corporation and the effect thereof stayed within sixty (60) days thereafter; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any creditor of the Corporation or any other Person privately appoints a receiver, trustee or similar
official for any material part of the properties or assets of the Corporation and such appointment is not contested by the Corporation
in good faith within fifteen (15) days of such appointment and the appointment stayed within sixty (60) days thereafter,

then in each and every such event listed above, the Trustee may, in its discretion, but subject to the provisions of this Section 8.1, and shall, upon receipt of a request in writing signed by the holders of not less than 25% in principal amount of the Notes then outstanding (or if the Event of Default shall exist only in respect of one or more series of the Notes then outstanding, then upon receipt of a request in writing signed by the holders of not less than 25% in principal amount of the Notes of such series then outstanding), subject to the provisions of Section 8.3, by notice in writing to the Corporation declare the principal of and interest and premium, if any, on all Notes then outstanding (or, as the case may be, on all Notes of such series outstanding) and all other monies outstanding hereunder to be due and payable and the same shall thereupon forthwith become immediately due and payable to the Trustee, and the Corporation shall forthwith pay to the Trustee for the benefit of the Noteholders such principal, accrued and unpaid interest and premium, if any, and interest on amounts in default on such Note (and, where such a declaration is based upon a voluntary winding-up or liquidation of the Corporation, the premium, if any, on the Notes then outstanding which would have been payable upon the redemption thereof by the Corporation on the date of such declaration) and all other monies outstanding hereunder, together with subsequent interest at the rate borne by the Notes on such principal, interest, premium, if any, and such other monies from the date of such declaration or event until payment is received by the Trustee, such subsequent interest to be payable at the times and places and in the manner mentioned in and according to the tenor of the Notes. Such payment when made by the Corporation shall be deemed to have been made in discharge of the Corporation's obligations hereunder and any monies so received by the Trustee shall be applied in the manner provided in Section 8.6.

For greater certainty, for the purposes of this Section 8.1, a series of Notes shall be in default in respect of an Event of Default if such Event of Default relates to a default in the payment of principal, premium, if any, or interest on the Notes of such series in which case references to Notes in this Section 8.1 refer to Notes of that particular series.

For purposes of this Article 8, where the Event of Default refers to an Event of Default with respect to a particular series of Notes as described in this Section 8.1, then this Article 8 shall apply *mutatis mutandis* to the Notes of such series and references in this Article 8 to the Notes shall mean Notes of the particular series and references to the Noteholders shall refer to the Noteholders of the particular series, as applicable.

8.2 Notice of Events of Default

If an Event of Default shall occur and be continuing the Trustee shall, within 30 days after it receives written notice of the occurrence of such Event of Default from any Person, give notice of such Event of Default to the Noteholders in the manner provided in Section 11.2, provided that, notwithstanding the foregoing, unless the Trustee shall have been requested to do so by the holders of at least 25% of the principal amount of the Notes then outstanding, the Trustee shall not be required to give such notice if the Trustee in good faith shall have determined that the withholding of such notice is in the best interests of the Noteholders.

When notice of the occurrence of an Event of Default has been given to the Noteholders and the Event of Default is thereafter cured, notice that the Event of Default is no longer continuing shall be given by the Trustee to the Noteholders within 15 days after the Trustee becomes aware the Event of Default has been cured.

8.3 Waiver of Default

Upon the happening of any Event of Default hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the holders of the Notes shall have the power (in addition to the powers exercisable by Extraordinary
Resolution as hereinafter provided) by requisition in writing by the holders of more than 66 2/3% of the principal amount of Notes then
outstanding, to instruct the Trustee to waive any Event of Default and to cancel any declaration made by the Trustee pursuant to Section
8.1 and the Trustee shall thereupon waive the Event of Default and cancel such declaration, or either, upon such terms and conditions
as shall be prescribed in such requisition; provided that notwithstanding the foregoing if the Event of Default has occurred by reason
of the non-observance or non-performance by the Corporation of any covenant applicable only to one or more series of Notes, then the holders
of more than 66 2/3% of the principal amount of the outstanding Notes of that series shall be entitled to exercise the foregoing power
and the Trustee shall so act and it shall not be necessary to obtain a waiver from the holders of any other series of Notes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Trustee, so long as it has not become bound to declare the principal and interest on the Notes then
outstanding to be due and payable, or to obtain or enforce payment of the same, shall have power to waive any Event of Default if, in
the Trustee's opinion, the same shall have been cured or adequate satisfaction made therefor, and in such event to cancel any such
declaration theretofore made by the Trustee in the exercise of its discretion, upon such terms and conditions as the Trustee may deem
advisable.

No such act or omission either of the Trustee or of the Noteholders shall extend to or be taken in any manner whatsoever to affect any subsequent Event of Default or the rights of the Trustee and the Noteholders resulting therefrom.

8.4 Enforcement by the Trustee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Section 8.3 and to the provisions of any Extraordinary Resolution that may
be passed by the Noteholders, if the Corporation shall fail to pay to the Trustee, forthwith after the same shall have been declared to
be due and payable under Section 8.1, the principal of and premium (if any) and interest on all Notes then outstanding, together with
any other amounts due hereunder, the Trustee may in its discretion and shall upon receipt of a request in writing signed by the holders
of not less than 25% in principal amount of the Notes then outstanding and upon being funded and indemnified to its reasonable satisfaction
against all costs, expenses and liabilities to be incurred, proceed in its name as trustee hereunder to obtain or enforce payment of such
principal of and premium (if any) and interest on all the Notes then outstanding together with any other amounts due under each Note Document
by such proceedings authorized by any Note Document or by law or equity as the Trustee in such request shall have been directed to take,
or if such request contains no such direction, or if the Trustee shall act without such request, then by such proceedings authorized by
this Indenture or by suit at law or in equity as the Trustee shall deem expedient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee shall be entitled and empowered, either in its own name or as trustee of an express trust,
or as attorney-in-fact for the holders of the Notes, or in any one or more of such capacities, to file such proof of debt, amendment of
proof of debt, claim, petition or other document as may be necessary or advisable in order to have the claims of the Trustee and of the
holders of the Notes allowed in any insolvency, bankruptcy, liquidation or other judicial proceedings relative to the Corporation or its
creditors or relative to or affecting its property. The Trustee is hereby irrevocably appointed (and the successive respective holders
of the Notes by taking and holding the same shall be conclusively deemed to have so appointed the Trustee) the true and lawful attorney-in-fact
of the respective holders of the Notes with authority to make and file in the respective names of the holders of the Notes or on behalf
of the holders of the Notes as a class, subject to deduction from any such claims of the amounts of any claims filed by any of the holders
of the Notes themselves, any proof of debt, amendment of proof of debt, claim, petition or other document in any such proceedings and
to receive payment of any sums becoming distributable on account thereof, and to execute any such other papers and documents and to do
and perform any and all such acts and things for and on behalf of such holders of the Notes, as may be necessary or advisable in the opinion
of the Trustee, in order to have the respective claims of the Trustee and of the holders of the Notes against the Corporation or its property
allowed in any such proceeding, and to receive payment of or on account of such claims; provided, however, that subject to Section 8.3,
nothing contained in this Indenture shall be deemed to give to the Trustee, unless so authorized by Extraordinary Resolution, any right
to accept or consent to any plan of reorganization or otherwise by action of any character in such proceeding to waive or change in any
way any right of any Noteholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee shall also have the power at any time and from time to time to institute and to maintain such
suits and proceedings as it may be advised shall be necessary or advisable to preserve and protect its interests and the interests of
the Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All rights of action hereunder may be enforced by the Trustee without the possession of any of the Notes
or the production thereof on the trial or other proceedings relating thereto. Any such suit or proceeding instituted by the Trustee shall
be brought in the name of the Trustee as trustee of an express trust, and any recovery of judgment shall be for the rateable benefit of
the holders of the Notes subject to the provisions of this Indenture. In any proceeding brought by the Trustee (and also any proceeding
in which a declaratory judgment of a court may be sought as to the interpretation or construction of any provision of any Note Document,
to which the Trustee shall be a party) the Trustee shall be held to represent all the holders of the Notes, and it shall not be necessary
to make any holders of the Notes parties to any such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Trustee has become entitled to enforce the Security Interest, in addition to any right or remedy
arising under the Security Documents or pursuant to Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Trustee, by itself, its officers, its agents or its attorneys,
may, in its discretion, as advised by Counsel, and either with or without notice, enter into and upon and take possession of the Secured
Assets with full power to exclude the Corporation and additionally shall have full power and authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to carry on, manage and conduct the business operations of or relating to the Secured Assets and to borrow
money in its own name or advance its own monies for the purpose of the conduct of such business operations, the maintenance and preservation
of the Secured Assets or any part thereof, the making of such replacements of and additions to the Secured Assets as the Trustee shall
deem desirable, as advised by Counsel, and the payment of Taxes, wages and other charges ranking in priority to the Security Interest
and of current operating expenses incurred not more than 45 Business Days prior to such taking of possession, and monies so borrowed or
advanced shall be repaid by the Corporation on demand and until repaid shall (with interest thereon at the rate of 10% per annum) be secured
by the Security Interest in priority to sums otherwise secured thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to receive and give notifications of and receipts for the revenues, incomes, issues and profits in respect
of the Secured Assets and to pay therefrom the reasonable costs, charges and expenses of the Trustee incurred in connection with carrying
on the said business operations, and all Taxes, assessments and other charges against such property ranking in priority to the Security
Interest or the payment of which may be necessary as advised by Counsel to preserve such property, and to apply the remainder of the monies
so received in the same manner as if the same arose from a sale or realization of such property. If so requested by the holders of no
less than 50% in principal amount of the Notes then outstanding,

the Trustee and such agents and attorneys as advised by Counsel shall return such business and property to the Corporation without prejudice to the rights of the Trustee and the Noteholders under any Note Document with respect to the same Event of Default (if not then waived or remedied) or any other subsequent Event of Default, and in such event, the balance of income received by the Trustee pursuant any Note Document, after payment in full of all amounts due to or property payable to the Trustee hereunder as advised by Counsel, shall be returned to the Corporation entitled thereto and the Security Interest shall no longer be deemed to have become enforceable by reason of the Event of Default which theretofore existed, but the rights arising out of the same Event of Default (if not then waived or remedied) or any other subsequent Event of Default shall not be affected thereby;

The Trustee, either after entry as aforesaid or after other entries by itself or its agents, or without any entry, may sell or dispose of the Secured Assets either as a whole or in separate parcels (to the extent permitted by applicable legislation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) by private contract upon notice to the Corporation given prior thereto of such length; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) at public auction or by public tender, having first given such notice of the time and place of such sale
to the Corporation and otherwise.

The Trustee may make any such sale either for cash or upon credit and upon such reasonable conditions as to upset or reserve bid or price and terms of payment, rescind or vary any contract or sale that may have been entered into and re-sell with or under any of the powers conferred herein, adjourn such sale from time to time, and execute and deliver to the purchaser or purchasers of the said property or any part thereof good and sufficient deed or deeds for the same, the Trustee being irrevocably constituted the attorney of the Corporation under the Note Documents for the purpose of making such sale and executing such deeds, and any such sale made as aforesaid shall be a perpetual bar at law and in equity against the Corporation and their respective successors and assigns and all other Persons claiming the said property or any part or parcel thereof by, from, through or under the Corporation and its respective successors or assigns, and the proceeds of any such sale shall be distributed in the manner hereinafter provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Trustee may, with or without entry or sale as aforesaid, proceed to protect and enforce its rights
under this Indenture and the other Note Documents by sale under judgment or order in any judicial proceeding or by foreclosure or a suit
or suits in equity or at law or otherwise whether for the specific performance of any covenant or agreement contained in this Indenture
or any other Note Document or in aid of the execution of this Indenture or any other Note Document or for the enforcement of any other
legal or equitable remedy as the Trustee shall deem most effective to protect and enforce any of the rights or duties of the Trustee and
Noteholders, on the advice of Counsel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Trustee may appoint a receiver (the "**Receiver**") of the Corporation, its Secured
Assets or any part thereof and of the rents, issues, profits, revenues and income thereof and in respect thereto the following provisions
shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such appointment shall be made in writing signed by the Trustee and such writing shall be conclusive evidence
for all purposes of such appointment. The Trustee may from time to time in the same manner remove any Receiver so appointed and appoint
another in its stead; in making any such appointment the Trustee shall be deemed to be acting as the attorney for the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any such appointment may be limited to any part or parts of the Secured Assets or may extend to the whole
thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) every such Receiver may be vested with all or any of the powers and discretions of the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Trustee may from time to time fix the reasonable remuneration of every such Receiver and direct the
payment thereof out of the Secured Assets, the income therefrom or the proceeds thereof (in priority to the Trustee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Trustee may from time to time require any such Receiver to give security for the performance of its
duties and may fix the nature and amount thereof, but shall not be bound to require such security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) every such Receiver may, with the consent in writing of the Trustee as advised by Counsel, borrow money
for the purposes of carrying on the business of the Corporation in respect of any part of the Secured Assets or for the maintenance, protection
or preservation of the Secured Assets or any part thereof, and any receiver may issue certificates (in this Section called "**Receiver Certificates**") for such sums as will be sufficient for obtaining upon the security of the Secured Assets or any part thereof
the amounts from time to time required, and such Receiver's Certificates may be payable either to order or bearer and may be payable
at such time or times as the Trustee may consider expedient as advised by Counsel, and shall bear interest at the rate of 10% per annum
and the Receiver may sell, pledge or otherwise dispose of the same in such manner as the Trustee may consider advisable as advised by
Counsel and may pay such commission on the sale

thereof and the amount from time to time payable by virtue of such Receiver's Certificates shall at the option of the Trustee as advised by Counsel be entitled to the Security Interest in priority to the principal, interest and other amounts secured thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) every such Receiver shall, so far as concerns responsibility for his acts or omissions, be deemed the
agent of the Corporation, and in no event the agent of the Trustee or any Noteholder, and the Trustee shall not, in making or consenting
to such appointment, incur any liability to any Receiver for his remuneration or otherwise; provided, however, that the Trustee shall
not in any way be responsible for any misconduct, negligence or nonfeasance of such Receiver, his employees or agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) except as may be otherwise directed by the Trustee, on the advice of Counsel, all monies from time to
time received by any Receiver shall be received in trust for and paid over to the Trustee at the principal office of the Trustee in the
City of Vancouver as hereinbefore provided, to be held by it as part of the Secured Assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) the Trustee may, on the advice of Counsel, pay over to any Receiver any monies constituting part of the
Secured Assets to the extent that the same may be applied for the purposes hereof by such receiver, and the Trustee may, on the advice
of Counsel, from time to time determine what funds any Receiver shall be at liberty to keep on hand with a view to the performance of
his duties as such Receiver;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Trustee may, on the advice of Counsel, in lieu of appointing a Receiver as provided in Section 8.4(e)(i)(D),
and without regard to the adequacy of the Security Interest or the solvency of the Corporation, apply to any court or courts of competent
jurisdiction for the appointment of a receiver or receiver and manager of the Corporation or any of the Secured Assets, and of the rents,
issues, profits, revenues and income thereof, with such powers as the court making such appointment or appointments shall confer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the Corporation shall on demand by the Trustee, yield up possession of the Secured Assets whenever the
Trustee shall have a right or entry under the foregoing provisions and agrees to put no obstacle in the way of, but to facilitate by all
legal means, the actions of the Trustee or any Receiver or court appointed receiver or receiver and manager and not to interfere with
the carrying out of the powers granted by the Note Documents or conferred by any court or courts hereunder to or upon the Trustee, any
Receiver or any court appointed receiver or receiver and manager.

8.5 No Suits by Noteholders

No holder of any Note shall have any right to institute any action, suit or proceeding at law or in equity for the purpose of enforcing payment of the principal of or interest on the Notes or for the execution of any trust or power hereunder or for the appointment of a liquidator or receiver or for a receiving order under the *Bankruptcy and Insolvency Act* (Canada) or to have the Corporation wound up or subject to any proceeding under the *Companies' Creditors Arrangement Act* (Canada) or to file or prove a claim in any liquidation, insolvency or bankruptcy proceeding or for any other remedy hereunder, unless: (a) such holder shall previously have given to the Trustee written notice of the happening of an Event of Default hereunder; and (b) the Noteholders by Extraordinary Resolution or by written instrument signed by the holders of at least 25% in principal amount of the Notes then outstanding shall have made a request to the Trustee and the Trustee shall have been afforded reasonable opportunity either itself to proceed to exercise the powers hereinbefore granted or to institute an action, suit or proceeding in its name for such purpose; and (c) the Noteholders or any of them shall have furnished to the Trustee, when so requested by the Trustee, sufficient funds and security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby; and (d) the Trustee shall have failed to act within a reasonable time after such notification, request and offer of indemnity; and (e) no direction inconsistent with such request has been received by the Trustee from holders of a majority in principal amount of the Notes and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to any such proceeding or for any other remedy hereunder by or on behalf of the holder of any Notes. Notwithstanding the foregoing, a Noteholder may not use this Indenture to prejudice the rights of any other Noteholder or to obtain a preference or priority over any other Noteholder.

8.6 Application of Monies by Trustee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as herein otherwise expressly provided, any monies received by the Trustee from the Corporation
pursuant to the foregoing provisions of this Article 8, or as a result of legal or other proceedings or from any trustee in bankruptcy
or liquidator of the Corporation, shall be applied, together with any other monies in the hands of the Trustee available for such purpose,
as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>first</u>* , if and to the extent that the Trustee deems it in the interest of the Noteholders
generally, based on the advice of Counsel, in payment of all Encumbrances (if any) on the Secured Assets ranking in priority to the Security
Interest or to keep in good standing any such prior Encumbrances, including any Senior Security (if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>second</u>* , in payment or in reimbursement to the Trustee or Receiver of its compensation, costs,
charges, expenses, borrowings, advances or other monies furnished or provided by or at the instance of the Trustee or Receiver in or about
the execution of its trusts under, or otherwise in relation to, the Note Documents, with interest thereon as herein provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>third</u>* , but subject as hereinafter provided in this Section 8.6 provided, in payment, rateably
and proportionately to (and in the case of applicable withholding Taxes, if any, on behalf of) the holders of Notes, of the principal
of and premium (if any) and accrued and unpaid interest and interest on amounts in default on the Notes which shall then be outstanding
in the priority of principal first and then premium and then accrued and unpaid interest and interest on amounts in default unless otherwise
directed by Extraordinary Resolution and in that case in such order or priority as between principal, premium (if any) and interest as
may be directed by such resolution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>fourth</u>* , in payment of the surplus, if any, of such monies to the Corporation entitled thereto
or its assigns;

provided, however, that no payment shall be made pursuant to clause (iii) above in respect of the principal, premium or interest on any Note held, directly or indirectly, by or for the benefit of the Corporation or any Affiliate (other than (y) to any original holder of an Initial Note and (z) in respect of any Note pledged for value and in good faith to a Person other than the Corporation or any Affiliate but only to the extent of such Person's interest therein), until and subject to the prior payment in full of the principal, premium (if any) and interest (if any) on all Notes which are not so held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee shall not be bound to apply or make any partial or interim payment of any monies coming into
its hands if the amount so received by it, after reserving thereout such amount as the Trustee may think necessary to provide for the
payments mentioned in Section 8.6(a), is insufficient to make a distribution of at least 2% of the aggregate principal amount of the outstanding
Notes, but it may retain the money so received by it and invest or deposit the same as provided in Section 13.8 until the money or the
investments representing the same, with the income derived therefrom, together with any other monies for the time being under its control
shall be sufficient for the said purpose or until it shall consider it advisable to apply the same in the manner hereinbefore set forth.
The foregoing shall, however, not apply to a final payment in distribution hereunder.

8.7 Distribution of Proceeds

Payment to Noteholders pursuant to Section 8.6(a)(iii) shall be made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not less than 15 days' notice shall be given in the manner provided in Section 12.2 by the Trustee
to the Noteholders of any payment to be made under this Article 8. Such notice shall state the time when and place where such payment
is to be made and also the liability under this Indenture to which it is to be applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) from and after the date of payment specified in the notice, interest shall accrue only on the amount owing
on each Note after giving credit for the amount of the payment specified in such notice unless the Note with respect to which such amount
is owing be duly presented on or after the date so specified and payment of such amount be not made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Trustee shall not be bound to apply or make any partial or interim payment of any moneys coming into
its hands if the amount so received by it, after reserving therefrom such amount as the Trustee may think necessary to provide for the
payments mention in Subsection 8.6(a)(i), is insufficient to make a distribution of at least 2% of the aggregate principal amount of the
outstanding Notes.

8.8 Trustee May Demand Production of Notes

The Trustee shall have the right to demand production of the Notes in respect of which any payment of principal, interest or premium required by this Article 8 is made and may cause to be endorsed on the same a memorandum of the amount so paid and the date of payment, but the Trustee may, in its discretion, dispense with such production and endorsement, upon such indemnity being given to it and to the Corporation as the Trustee shall deem sufficient.

8.9 Trustee Appointed Attorney

The Corporation hereby irrevocably appoints the Trustee to be the attorney of the Corporation in the name and on behalf for the Corporation to execute any instruments and do any acts and things which the Corporation ought to execute and do and has not executed or done, under the covenants and provisions contained in this Indenture and generally to use the name of the Corporation in the exercise of all or any of the powers hereby conferred on the Trustee with full powers of substitution and revocation.

8.10 Remedies Cumulative

No remedy herein conferred upon or reserved to the Trustee, or upon or to the Noteholders is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now existing or hereafter to exist by law or by statute.

8.11 Judgment Against the Corporation

The Corporation covenants and agrees with the Trustee that, in case of any judicial or other proceedings to enforce the rights of Noteholders, judgment may be rendered against it in favour of the Noteholders or the Trustee, as trustee for the Noteholders, for any amount which may remain due in respect of the Notes and premium (if any) and the interest thereon and any other monies owing thereunder.

8.12 Immunity of Directors, Officers and Others

The Noteholders and the Trustee hereby waive and release any right, cause of action or remedy now or hereafter existing in any jurisdiction against any past, present or future officer, director or employee of the Corporation or of any Affiliate of the Corporation, as the case may be, or holder of Shares or of any successor thereto, for the payment of the principal of or premium (if any) or interest on any of the Notes or on any covenant, agreement, representation or warranty by the Corporation contained herein or in the Notes.

8.13 Subordination

For greater certainty, this Indenture and the rights and obligations hereunder may become subject in all material respects to the terms and provisions of a Subordination Agreement and each Noteholder and the Trustee acknowledges and agrees to be bound by the subordination, postponement and priority of the Senior Creditor's right to payment and security interests set forth therein.

8.14 Rights of Holders to Receive Payment

Notwithstanding any other provisions of this Indenture, the right of any Noteholder to receive any payment under the Notes or this Indenture pursuant to the terms thereof or hereof, and for the obligations owed to it to be satisfied by payment in cash, whether on or after the due date expressed in or determined in accordance with the Notes or this Indenture (whether upon redemption, repurchase or otherwise), and to bring suit for the enforcement of any such payment on or after such respective due dates, is absolute and unconditional and shall not be impaired or affected without the consent of each Noteholder.

**ARTICLE 9 SATISFACTION AND DISCHARGE**

9.1 Cancellation

All Notes shall forthwith after payment thereof be delivered to the Trustee and cancelled by it. All Notes cancelled or required to be cancelled under this or any other provision of this Indenture shall be cancelled by the Trustee and, if required by the Corporation, the Trustee shall furnish to it a cancellation certificate setting out the designating numbers of the Notes so cancelled.

9.2 Non-Presentation of Notes

In case the holder of any Note shall fail to present the same for payment on the date on which the principal of, premium (if any) or the interest thereon or represented thereby becomes payable either at maturity or otherwise or shall not accept payment on account thereof and give such receipt therefor, if any, as the Trustee may require:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Corporation shall be entitled to pay or deliver to the Trustee and direct it to set aside; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of monies in the hands of the Trustee which may or should be applied to the payment of the
Notes, the Corporation shall be entitled to direct the Trustee to set aside; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the redemption was pursuant to notice given by the Trustee, the Trustee may itself set aside;

the monies in trust to be paid to the holder of such Note upon due presentation or surrender thereof in accordance with the provisions of this Indenture; and thereupon the principal of, premium (if any) or the interest payable on or represented by each Note in respect whereof such monies have been set aside shall be deemed to have been paid and the holder thereof shall thereafter have no right in respect thereof except that of receiving delivery and payment of the monies (less any Taxes required to be deducted in accordance with Section 2.15) so set aside by the Trustee upon due presentation and surrender thereof, subject always to the provisions of Section 9.3.

9.3 Repayment of Unclaimed Monies

Subject to Applicable Law, any monies set aside under Section 9.2 and not claimed by and paid to Noteholders as provided in Section 9.2 within five years less a day after the date of such setting aside shall be repaid and delivered upon the Corporation's written request, to the Corporation by the Trustee and thereupon the Trustee shall be released from all further liability with respect to such monies and thereafter the holders of the Notes in respect of which such monies were so repaid to the Corporation shall have no rights in respect thereof, except to obtain payment and delivery of the monies from the Corporation subject to any limitation provided by Applicable Laws. Notwithstanding the foregoing, the Trustee will pay any remaining funds prior to the expiry of five years less a day after the setting aside described in Section 9.2 to the Corporation upon receipt from the Corporation, of an unconditional letter of credit from a Canadian chartered bank in an amount equal to or in excess of the amount of the remaining funds. If the remaining funds are paid to the Corporation prior to the expiry of five years less a day after such setting aside, the Corporation shall reimburse the Trustee for any amounts so set aside which are required to be paid by the Trustee to a holder of a Note after the date of such payment of the remaining funds to the Corporation but prior to five years less a day after such setting aside.

9.4 Discharge

The Trustee shall at the written request and expense of the Corporation release and discharge this Indenture and the Security Interest and execute and deliver such instruments as it shall be advised by Counsel are requisite for that purpose and release the Corporation from its covenants contained in each Note Document (other than the provisions relating to the indemnification of the Trustee), upon proof being given to the reasonable satisfaction of the Trustee that the principal of, premium (if any) and interest (including interest on amounts in default, if any), on all the Notes and all other monies payable under each Note Document have been paid or satisfied or that all the Notes having matured or having been duly called for redemption, payment of the principal of and interest (including interest on amounts in default, if any) on such Notes and of all other monies payable hereunder has been duly and effectually provided for in accordance with the provisions hereof.

9.5 Satisfaction

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall be deemed to have fully paid, satisfied
and discharged all of the outstanding Notes of any series and the Trustee, at the expense of the Corporation, shall execute and deliver
proper instruments acknowledging the full payment, satisfaction and discharge of such Notes, when, with respect to all of the outstanding
Notes or all of the outstanding Notes of any series, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation has deposited or caused to be deposited with the Trustee as trust funds or property in
trust for the purpose of making payment on such Notes, an amount in cash sufficient to pay, satisfy and discharge the entire amount of
principal of, premium (if any), and interest, if any, to maturity, or any repayment date or otherwise as the case may be, of such Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Corporation has deposited or caused to be deposited with the Trustee as trust property in trust for
the purpose of making payment on such Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the Notes are issued in United States dollars, such amount in United States dollars of direct obligations
of, or obligations the principal and interest of which are guaranteed by, the Government of the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if the Notes are issued in a currency or currency unit other than United States dollars, cash in the currency
or currency unit in which the Notes are payable and/or such amount in such currency or currency unit of direct obligations of, or obligations
the principal and interest of which are guaranteed by, the Government of Canada or the government that issued the currency or currency
unit in which the Notes are payable;

as will, together with the income to accrue thereon and reinvestment thereof, be sufficient to pay and discharge the entire amount of principal of, premium, if any on, and accrued and unpaid interest to maturity or any repayment date, as the case may be, of all such Notes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all Notes certified and delivered (other than (A) Notes which have been destroyed, lost or stolen and
which have been replaced or paid as provided in Section 2.9 and (B) Notes for whose payment has been deposited in trust and thereafter
repaid to the Corporation) as provided hereunder have been delivered to the Trustee for cancellation; so long as in any such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Corporation has paid, caused to be paid or made provisions to the satisfaction of the Trustee for
the payment of all other sums payable or which may be payable with respect to all of such Notes (together with all applicable expenses
of the Trustee in connection with the payment of such Notes); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Corporation has delivered to the Trustee an Officer's Certificate of the Corporation stating
that all conditions precedent herein provided relating to the payment, satisfaction and discharge of all such Notes have been complied
with.

Any deposits with the Trustee referred to in this Section 9.5 shall be irrevocable, subject to Section 9.6, and shall be made under the terms of an escrow and/or trust agreement in form and substance satisfactory to the Trustee and which provides for the due and punctual payment of the principal of, premium, if any, and interest on the Notes being satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the satisfaction of the conditions set forth in this Section 9.5 with respect to all the outstanding
Notes, or all the outstanding Notes of any series, as applicable, the terms and conditions of the Notes, including the terms and conditions
with respect thereto set forth in this Indenture (other than those contained in Article 2, Article 4, Article 5, Article 7 and Article
8 and the provisions of Article 1 pertaining to Article 2, Article 4, Article 5, Article 7 and Article 8) shall no longer be binding upon
or applicable to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any funds or obligations deposited with the Trustee pursuant to this Section 9.5 shall be denominated
in the currency or denomination of the Notes in respect of which such deposit is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Trustee is unable to apply any money or securities in accordance with this Section 9.5 by reason
of any legal proceeding or any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Corporation's obligations under this Indenture and the affected Notes shall be revived and reinstated as though
no money or securities had been deposited pursuant to this Section 9.5 until such time as the Trustee is permitted to apply all such money
or securities in accordance with this Section 9.5, provided that if the Corporation has made any payment in respect of principal of, premium
(if any), or interest on Notes or, as applicable, other amounts because of the reinstatement of its obligations, the Corporation shall
be subrogated to the rights of the holders of such Notes to receive such payment from the money or securities held by the Trustee.

9.6 Continuance of Rights, Duties and Obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Where trust funds or trust property have been deposited pursuant
to Section 9.5, the Noteholders and the Corporation shall continue to have and be subject to their respective rights, duties and obligations
under Article 2, Article 4, Article 5, Article 7 and Article 8.

**ARTICLE 10 SUCCESSORS**

10.1 Corporation may Consolidate, Etc., Only on Certain Terms

The Corporation shall not enter into any transaction or series of transactions whereby all or substantially all of its undertaking, property or assets would become the direct or indirect property of any other Person (herein called a "**Successor**") whether by way of reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prior to or contemporaneously with the consummation of such transaction the Corporation and the Successor
shall have executed such instruments and done such things as, in the opinion of Counsel, are necessary or advisable to establish that
upon the consummation of such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Successor will have assumed or otherwise become bound by all the covenants and obligations of the
Corporation under the Note Documents to which it is party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Note Documents to which the Corporation is party will be valid and binding obligations of the Successor
entitling the holders thereof, as against the Successor, to all the rights of the Trustee and the Noteholders under such Note Documents;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Successor shall attorn to the jurisdiction of the courts of the Province of British Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such transaction, in the opinion of Counsel, shall be on such terms as to preserve and not impair any
of the rights and powers of the Trustee or of the Noteholders under the Note Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no condition or event shall exist as to the Corporation (at the time of such transaction) or the Successor
(immediately after such transaction) and after giving full effect to the transaction or immediately after the Successor shall become liable
to pay the principal monies, premium, if any, interest and other monies due or which may become due under any Note Documents to which
the Corporation is party, which constitutes or would constitute an Event of Default hereunder; and

for greater certainty, for the purposes of the foregoing, the sale, conveyance, transfer or lease (in a single transaction or a series of related transactions) of the properties or assets of the Corporation, which, if such properties or assets were directly owned by the Corporation, would constitute all or substantially all of the properties and assets of the Corporation and its Affiliates, taken as a whole, shall be deemed to be the sale, conveyance, transfer or lease of all or substantially all of the properties and assets of the Corporation.

10.2 Successor Substituted

Upon any consolidation of the Corporation with, or amalgamation or merger of the Corporation into, any other Person or any sale, conveyance, transfer or lease of all or substantially all of the properties and assets of the Corporation and its Affiliates, taken as a whole, in accordance with Section 10.1, the successor Person formed by such consolidation or into which the Corporation is amalgamated or merged or to which such sale, conveyance, transfer or lease is made shall succeed to and assume in writing the obligations of, and be substituted for, and may exercise every right and power of, the Corporation under the Note Documents to which it is party with the same effect as if such successor Person had been named as the Corporation therein, and thereafter, except in the case of a lease, and except for obligations the predecessor Person may have under a supplemental indenture entered into pursuant to Section 10.1(a), the predecessor Person shall be relieved of all obligations and covenants under the Note Documents to which it is party.

10.3 Amalgamation

The Corporation acknowledges that if it amalgamates with any other Person or Persons, then (i) its Security Assets and the Security Interest granted by it under each Note Document to which it is party shall extend to and include all assets of the same nature or character as the Security Assets of each other amalgamating Person at the time of amalgamation as well as of the amalgamated Person thereafter owned or acquired, (ii) the term "Corporation" where used in the Note Documents, shall extend to and include the amalgamated Person, and (iii) the term "Note Liabilities", where used in this Indenture or any other Note Document, shall extend to and include the Note Liabilities of the amalgamated Person.

**ARTICLE 11 MEETINGS OF NOTEHOLDERS**

11.1 Right to Convene Meeting

The Trustee or the Corporation may at any time and from time to time, and the Trustee shall, on receipt of a Written Direction of the Corporation or a written request signed by the holders of not less than 25% of the principal amount of the Notes then outstanding or in the case of a meeting of a series of Notes, not less than 25% of the principal amount of such series outstanding and upon receiving funding and being indemnified to its reasonable satisfaction by the Corporation or by the Noteholders signing such request against the costs which may be incurred in connection with the calling and holding of such meeting, convene a meeting of the Noteholders. In the event of the Trustee failing, within 30 days after receipt of any such request and such funding of indemnity, to give notice convening a meeting, the Corporation or such Noteholders, as the case may be, may convene such meeting. Every such meeting shall be held in in the City of Vancouver or at such other place as may be approved or determined by the Corporation and the Trustee. Any meeting held pursuant to this Article 14 may be done through a virtual or electronic meeting platform, subject to the Trustee's capabilities at the time.

11.2 Notice of Meetings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At least 21 days' notice of any meeting shall be given to the Noteholders in the manner provided
in Section 12.2 and a copy of such notice shall be sent by mail to the Trustee, unless the meeting has been called by it. Such notice
shall state the time when and the place where the meeting is to be held and shall state briefly the general nature of the business to
be transacted thereat and it shall not be necessary for any such notice to set out the terms of any resolution to be proposed or any of
the provisions of this Article. The accidental omission to give notice of a meeting to any holder of Notes shall not invalidate any resolution
passed at any such meeting. A holder may waive notice of a meeting either before or after the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the business to be transacted at any meeting by Extraordinary Resolution or otherwise, or any action
to be taken or power exercised by instrument in writing under Section 11.15, especially affects the rights of Noteholders of one or more
series in a manner or to an extent differing in any material way from that in or to which the rights of Noteholders of any other series
are affected (determined as provided in Sections 11.2(c) and (d)), then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reference to such fact, indicating each series of Notes in the opinion of Counsel so especially affected
(hereinafter referred to as the "**especially affected series**") shall be made in the notice of such meeting, and in any
such case the meeting shall be and be deemed to be and is herein referred to as a "**Serial Meeting** "; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Noteholders of an especially affected series shall not be bound by any action taken at a Serial Meeting
or by instrument in writing under Section 11.15 unless in addition to compliance with the other provisions of this Article 11:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) at such Serial Meeting: (I) there are Noteholders present in person or by proxy and representing at least
25% in principal amount of the Notes then outstanding of such series, subject to the provisions of this Article 11 as to quorum at adjourned
meetings; and (II) the resolution is passed by the affirmative vote of the holders of more than 50% (or in the case of an Extraordinary
Resolution not less than 66 2/3%) of the principal amount of the Notes of such series then outstanding voted on the resolution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in the case of action taken or power exercised by instrument in writing under Section 11.15, such instrument
is signed in one or more counterparts
by the holders of not less than 66 2/3% in principal amount of the Notes of such series then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 11.2(d), the determination as to whether any business to be transacted at a meeting
of Noteholders, or any action to be taken or power to be exercised by instrument in writing under Section 11.15, especially affects the
rights of the Noteholders of one or more series in a manner or to an extent differing in any material way from that in or to which it
affects the rights of Noteholders of any other series (and is therefore an especially affected series) shall be determined by an opinion
of Counsel, which shall be binding on all Noteholders, the Trustee and the Corporation for all purposes hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A proposal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to extend the maturity of Notes or to change the interest payment dates thereof, of any particular series
or to reduce the principal amount thereof, or to change the rate of interest or the redemption or prepayment premium thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to modify or terminate any covenant or agreement which by its terms is effective only so long as Notes
of a particular series are outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to reduce with respect to Noteholders of any particular series any percentage stated in this Section 11.2
or Sections 11.4, 11.12 and 11.15;

shall be deemed to especially affect the rights of the Noteholders of such series in a manner differing in a material way from that in which it affects the rights of Noteholders of any other series, whether or not a similar extension, reduction, impairment, change, modification or termination is proposed with respect to Notes of any or all other series.

11.3 Chairman

Some person, who need not be a Noteholder, nominated in writing by the Corporation (in case it convenes the meeting) or by the Trustee (in any other case) shall be chairman of the meeting and if no person is so nominated, or if the person so nominated is not present within 15 minutes from the time fixed for the holding of the meeting, a majority of the Noteholders present in person or by proxy shall choose some person present to be chairman.

11.4 Quorum

Subject to the provisions of Section 11.12, at any meeting of the Noteholders a quorum shall consist of Noteholders present in person or by proxy and representing at least 25% in principal amount of the outstanding Notes and, if the meeting is a Serial Meeting, at least 25% of the Notes then outstanding of each especially affected series. If a quorum of the Noteholders shall not be present within 30 minutes from the time fixed for holding any meeting, the meeting, if summoned by the Noteholders or pursuant to a request of the Noteholders, shall be dissolved, but in any other case the meeting shall be adjourned to the same day in the next week (unless such day is not a Business Day in which case it shall be adjourned to the next following Business Day thereafter) at the same time and place and no notice shall be required to be given in respect of such adjourned meeting. At the reconvening of the adjourned meeting, the Noteholders present in person or by proxy shall, subject to the provisions of Section 11.12, constitute a quorum and may transact the business for which the meeting was originally convened notwithstanding that they may not represent 25% of the principal amount of the outstanding Notes or of the Notes then outstanding of each especially affected series. Any business may be brought before or dealt with at an adjourned meeting which might have been brought before or dealt with at the original meeting in accordance with the notice calling the same. No business shall be transacted at any meeting unless the required quorum, as applicable, is present at the commencement of business.

11.5 Power to Adjourn

The chairman of any meeting at which a quorum of the Noteholders is present may, with the consent of the holders of a majority in principal amount of the Notes represented thereat, adjourn any such meeting and no notice of such adjournment need be given except such notice, if any, as the meeting may prescribe.

11.6 Show of Hands

Every question submitted to a meeting shall, subject to Section 11.7, be decided in the first place by a majority of the votes given on a show of hands except that votes on Extraordinary Resolutions shall be given in the manner hereinafter provided. At any such meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that a resolution has been carried or carried unanimously or by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact. The chairman of any meeting shall be entitled, both on a show of hands and on a poll, to vote in respect of the Notes, if any, held by him.

11.7 Poll

On every Extraordinary Resolution, and on any other question submitted to a meeting when demanded by the chairman or by one or more Noteholders or proxies for Noteholders, a poll shall be taken in such manner and either at once or after an adjournment as the chairman shall direct. Questions other than Extraordinary Resolutions shall, if a poll be taken, be decided by the votes of the holders of a majority in principal amount of the Notes and of each especially affected series, if applicable, represented at the meeting in person or represented by proxy and voted upon on a poll on such resolution, and voted on the poll.

11.8 Voting

On a show of hands every Person who is present and entitled to vote, whether as a Noteholder or as proxy for one or more Noteholders or both, shall have one vote. On a poll each Noteholder present in person or represented by a proxy duly appointed by an instrument in writing shall be entitled to one vote in respect of each $1,000 principal amount of Notes of which they shall then be the holder. In the case of any Note denominated in a currency or currency unit other than United States dollars, the principal amount thereof for these purposes shall be computed in United States dollars on the basis of the conversion of the principal amount thereof at the applicable spot buying rate of exchange for such other currency or currency unit as reported by the Bank of Canada on the Bank of Canada website at the close of business on the Business Day next preceding the meeting. Any fractional amounts resulting from such conversion shall be rounded to the nearest $1,000. A proxy need not be a Noteholder. In the case of joint holders of a Note, any one of them present in person or by proxy at the meeting may vote in the absence of the other or others but in case more than one of them be present in person or by proxy, they shall vote together in respect of the Notes of which they are joint holders.

In the case of a Global Note, the Depository may appoint or cause to be appointed a person or persons as proxies and shall designate the number of votes entitled to each such person, and each such person shall be entitled to be present at any meeting of Noteholders and shall be the persons entitled to vote at such meeting in accordance with the number of votes set out in the Depository's designation.

11.9 Proxies

The Corporation (in case it convenes the meeting) or the Trustee (in any other case) for the purpose of enabling the Noteholders to be present and vote at any meeting without producing their Notes, and of enabling them to be present and vote at any such meeting by proxy and of lodging instruments appointing such proxies at some place other than the place where the meeting is to be held, may from time to time make and vary such regulations as it shall think fit providing for and governing any or all of the following matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the form of the instrument appointing a proxy, which shall be in writing, and the manner in which the
same shall be executed and the production of the authority of any person signing on behalf of a Noteholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the deposit of instruments appointing proxies at such place as the Trustee, the Corporation or the Noteholder
convening the meeting, as the case may be, may, in the notice convening the meeting, direct and the time, if any, before the holding of
the meeting or any adjournment thereof by which the same must be deposited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the deposit of instruments appointing proxies at some approved place or places other than the place at
which the meeting is to be held and enabling particulars of such instruments appointing proxies to be mailed, faxed, cabled, telegraphed
or sent by other electronic means before the meeting to the Corporation or to the Trustee at the place where the same is to be held and
for the voting of proxies so deposited as though the instruments themselves were produced at the meeting.

Any regulations so made shall be binding and effective and the votes given in accordance therewith shall be valid and shall be counted. Save as such regulations may provide, the only persons who shall be recognized at any meeting as the holders of any Notes, or as entitled to vote or be present at the meeting in respect thereof, shall be Noteholders and persons whom Noteholders have by instrument in writing duly appointed as their proxies.

11.10 Persons Entitled to Attend Meetings

The Corporation and the Trustee, by their respective officers and directors, the Auditors of the Corporation and the legal advisors of the Corporation, the Trustee or any Noteholder may attend any meeting of the Noteholders, but shall have no vote as such.

11.11 Powers Exercisable by Extraordinary Resolution

In addition to the powers conferred upon them by any other provisions of this Indenture or by law, a meeting of the Noteholders shall have the following powers exercisable from time to time by Extraordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) power to authorize the Trustee to grant extensions of time for payment of any principal, premium or interest
on the Notes, whether or not the principal, premium, or interest, the payment of which is extended, is at the time due or overdue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) power to sanction any modification, abrogation, alteration, compromise or arrangement of the rights of
the Noteholders or the Trustee (with its consent) against the Corporation, or against its property, whether such rights arise under this
Indenture or any other Note Document or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) power to assent to any modification of or change in or addition to or omission from the provisions contained
in this Indenture or any other Note Document which shall be agreed to by the Corporation and to authorize the Trustee to concur in and
execute any indenture supplemental hereto embodying any modification, change, addition or omission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) power to sanction any scheme for the reconstruction, reorganization or recapitalization of the Corporation
or for the consolidation, amalgamation, arrangement, reorganization, combination or merger of the Corporation with any other Person or
for the sale, leasing, transfer or other disposition of all or substantially all of the undertaking, property and assets of the Corporation
or any part thereof; provided that no such sanction shall be necessary in respect of any such transaction if the provisions of Section
10.1 shall have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) power to direct or authorize the Trustee to exercise any power, right, remedy or authority given to it
by this Indenture in any manner specified in any such Extraordinary Resolution or to refrain from exercising any such power, right, remedy
or authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) power to waive, and direct the Trustee to waive, any default under any Note Document and/or cancel any
declaration made by the Trustee pursuant to Section 8.1 either unconditionally or upon any condition specified in such Extraordinary Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) power to restrain any Noteholder from taking or instituting any suit, action or proceeding for the purpose
of enforcing payment of the principal, premium or interest on the Notes, or for the execution of any trust or power hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) power to direct any Noteholder who, as such, has brought any action, suit or proceeding to stay or discontinue
or otherwise deal with the same upon payment, if the taking of such suit, action or proceeding shall have been permitted by Section 8.5,
of the costs, charges and expenses reasonably and properly incurred by such Noteholder in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) power to assent to any compromise or arrangement with any creditor or creditors or any class or classes
of creditors, whether secured or otherwise, and with holders of any Shares or other securities of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) power to appoint a committee with power and authority (subject to such limitations, if any, as may be
prescribed in the resolution) to exercise, and to direct the Trustee to exercise, on behalf of the Noteholders, such of the powers of
the Noteholders as are exercisable by Extraordinary Resolution or other resolution as shall be included in the resolution appointing the
committee. The resolution making such appointment may provide for payment of the expenses and disbursements of and compensation to such
committee. Such committee shall consist of such number of persons as shall be prescribed in the resolution appointing it and the members
need not be themselves Noteholders. Every such committee may elect its chairman and may make regulations respecting its quorum, the calling
of its meetings, the filling of vacancies occurring in its number and its procedure generally. Such regulations may provide that the committee
may act at a meeting at which a quorum is present or may act by minutes signed by the number of members thereof necessary to constitute
a quorum. All acts of any such committee within the authority delegated to it shall be binding upon all Noteholders. Neither the committee
nor any member thereof shall be liable for any loss arising from or in connection with any action taken or omitted to be taken by them
in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) power to remove the Trustee from office and to appoint a new Trustee or Trustees; provided that no such
removal shall be effective unless and until a new Trustee or Trustees shall have become bound by this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) power to sanction the exchange of the Notes for or the conversion thereof into Shares, bonds, debentures
or other securities or obligations of the Corporation or of any other Person formed or to be formed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) power to authorize the distribution in specie of any shares or securities received pursuant to a transaction
authorized under the provisions of Section 11.11(l); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) power to amend, alter or repeal any Extraordinary Resolution previously passed or sanctioned by the Noteholders
or by any committee appointed pursuant to Section 11.11(j).

Notwithstanding the foregoing provisions of this Section 11.11, none of such provisions shall in any manner allow or permit any amendment, modification, abrogation or addition to the provisions of Article 4 which could reasonably be expected to materially and detrimentally affect the rights, remedies or recourse of the priority of the Senior Creditors, based on the opinion of Counsel.

Except as otherwise provided in this Indenture, all other powers of and matters to be determined by the Noteholders may be exercised or determined from time to time by Ordinary Resolution.

The expression "**Ordinary Resolution**" when used in this Indenture means, except as otherwise provided in this Indenture, a resolution proposed to be passed as an ordinary resolution at a meeting of Noteholders duly convened for the purpose and held in accordance with the provisions of this Article 11 at which a quorum of the Noteholders is present and passed by the affirmative votes of Noteholders present in person or represented by proxy at the meeting who hold more than 50% of the aggregate principal amount of the Notes voted in respect of such resolution.

11.12 Meaning of "Extraordinary Resolution"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The expression "**Extraordinary Resolution**" when used in this Indenture means, subject
as hereinafter in this Article provided, a resolution proposed to be passed as an Extraordinary Resolution at a meeting of Noteholders
(including an adjourned meeting) duly convened for the purpose and held in accordance with the provisions of this Article at which the
holders of not less than 25% of the principal amount of the Notes then outstanding, and if the meeting is a Serial Meeting, at which holders
of not less than 25% of the principal amount of the Notes then outstanding of each especially affected series, are present in person or
by proxy and passed by the favourable votes of the holders of not less than 66 2/3% of the principal amount of the Notes represented at
the meeting in person or represented by proxy and voted upon on a poll on such resolution, and if the meeting is a Serial Meeting by the
affirmative vote of the holders of not less than 66 2/3% of the principal amount of Notes of each especially affected series, represented
at the meeting in person or represented by proxy and voted upon on a poll on such resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any such meeting where an Extraordinary Resolution is to be considered, the holders of not less
than 25% of the principal amount of the Notes then outstanding and, if the meeting is a Serial Meeting, 25% of the principal amount of
the Notes then outstanding of each especially affected series, in each case are not present in person or by proxy within 30 minutes after
the time appointed for the meeting, then the meeting, if convened by or on the requisition of Noteholders, shall be dissolved but in any
other case it shall stand adjourned to such date, being not less than 21 nor more than 60 days later, and to such place and time as may
be appointed by the chairman. Not less than 7 days' notice shall be given of the time and place of such adjourned meeting in the
manner provided in Section 12.2. Such notice shall state that at the adjourned meeting the Noteholders present in person or by proxy shall
form a quorum. At the adjourned meeting the Noteholders present in person or by proxy shall form a quorum and may transact the business
for which the meeting was originally convened and a resolution proposed at such adjourned meeting and passed thereat by the affirmative
vote of holders of not less than 66 2/3% of the principal amount of the Notes represented at the meeting in person or represented by proxy
and voted upon on a poll on such resolution, and, if the meeting is a Serial Meeting, by the affirmative vote of the holders of not less
than 66 2/3% of the principal amount of the Notes of each especially affected series represented at the meeting in person or represented
by proxy and voted upon on a poll shall be an Extraordinary Resolution within the meaning of this Indenture, notwithstanding that the
holders of not less than 25% in principal amount of the Notes then outstanding, and if the meeting is a Serial Meeting, holders of not
less than 25% of the principal amount of the Notes then outstanding of each especially affected series, are not present in person or by
proxy at such adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Votes on an Extraordinary Resolution shall always be given on a poll and no demand for a poll on an Extraordinary
Resolution shall be necessary.

11.13 Powers Cumulative

Any one or more of the powers in this Indenture stated to be exercisable by the Noteholders by Extraordinary Resolution or otherwise may be exercised from time to time and the exercise of any one or more of such powers from time to time shall not be deemed to exhaust the rights of the Noteholders to exercise the same or any other such power or powers thereafter from time to time.

11.14 Minutes

Minutes of all resolutions and proceedings at every meeting as aforesaid shall be made and duly entered in books to be from time to time provided for that purpose by the Trustee at the expense of the Corporation, and any such minutes as aforesaid, if signed by the chairman of the meeting at which such resolutions were passed or proceedings had, or by the chairman of the next succeeding meeting of the Noteholders, shall be *prima facie* evidence of the matters therein stated and, until the contrary is proved, every such meeting, in respect of the proceedings of which minutes shall have been made, shall be deemed to have been duly held and convened, and all resolutions passed thereat or proceedings taken thereat to have been duly passed and taken.

11.15 Instruments in Writing

All actions which may be taken and all powers that may be exercised by the Noteholders at a meeting held as hereinbefore in this Article provided may also be taken and exercised by the holders of more than 50% of the principal amount of outstanding Notes in the case of an Ordinary Resolution and not less than 66 2/3% of the principal amount of all the outstanding Notes in the case of an Extraordinary Resolution and, if the meeting at which such actions might be taken would be a Serial Meeting, by the holders of more than 50% of the principal amount of outstanding Notes of such series in the case of an Ordinary Resolution and not less than 66 2/3% of the principal amount of the Notes of such series then outstanding in the case of an Extraordinary Resolution of each especially affected series, by an instrument in writing signed in one or more counterparts and the expression "**Extraordinary Resolution**" when used in this Indenture shall include an instrument so signed.

11.16 Binding Effect of Resolutions

Every resolution and every Extraordinary Resolution passed in accordance with the provisions of this Article at a meeting of Noteholders shall be binding upon all the Noteholders, whether present at or absent from such meeting, and every instrument in writing signed by Noteholders in accordance with Section 11.15 shall be binding upon all the Noteholders, whether signatories thereto or not, and each and every Noteholder and the Trustee (subject to the provisions for its indemnity herein contained) shall be bound to give effect accordingly to every such resolution, Extraordinary Resolution and instrument in writing.

11.17 Evidence of Rights Of Noteholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any request, direction, notice, consent or other instrument which this Indenture may require or permit
to be signed or executed by the Noteholders may be in any number of concurrent instruments of similar tenor signed or executed by such
Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee may, in its discretion, require proof of execution in cases where it deems proof desirable
and may accept such proof as it shall consider proper.

11.18 Concerning Serial Meetings

If in the opinion of Counsel any business to be transacted at any meeting, or any action to be taken or power to be exercised by instrument in writing under Section 11.15, does not adversely affect the rights of the Noteholders of one or more series, the provisions of this Article 11 shall apply as if the Notes of such series were not outstanding and no notice of any such meeting need be given to the Noteholders of such series. Without limiting the generality of the foregoing, a proposal to modify or terminate any covenant or agreement which is effective only so long as Notes of a particular series are outstanding shall be deemed not to adversely affect the rights of the Noteholders of any other series.

11.19 Record Dates

If the Corporation shall solicit from the Noteholders any request, demand, authorization, direction, notice, consent, waiver or other action, the Corporation may, at its option, by or pursuant to a Written Direction of the Corporation, fix in advance a record date for the determination of such holders entitled to provide such request, demand, authorization, direction, notice, consent, waiver or other action, but the Corporation shall have no obligation to do so. Any such record date shall be the record date specified in or pursuant to such Written Direction of the Corporation.

If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after such record date, but only the holders of record at the close of business on such record date shall be deemed to be holders for the purposes of determining whether holders of the requisite proportion of Notes then outstanding have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other act, and for this purpose the Notes then outstanding shall be computed as of such record date.

**ARTICLE 12 NOTICES**

12.1 Notice to Corporation

Any notice to the Corporation under the provisions of this Indenture shall be valid and effective if delivered to the Corporation at: International CuMo Mining Corporation, Attention: Shaun Dykes c/o E-mail: sdykes@cumoco.com, and a copy delivered to Gowling WLG (Canada) LLP, Attention: Brett A. Kagetsu, E-mail: brett.kagetsu@gowlingwlg.com, and shall be deemed to have been effectively delivered on the date of transmission, or if such day is not a Business Day, on the first Business Day following the day of transmission, provided that such notice delivered by email is delivered before 4:00 p.m. (Vancouver time) on such Business Day and the sender does not receive a delivery failure notice or if given by registered letter, postage prepaid, to such offices and so addressed and if mailed, shall be deemed to have been effectively given five Business Days following the mailing thereof. The Corporation may from time to time notify the Trustee in writing of a change of address which thereafter, until changed by like notice, shall be the address of the Corporation for all purposes of this Indenture.

12.2 Notice to Noteholders

All notices to be given hereunder with respect to the Notes shall be deemed to be validly given to the holders thereof if sent by first class mail, postage prepaid, by letter or circular addressed to such holders at their post office addresses appearing in any of the registers hereinbefore mentioned and shall be deemed to have been effectively given three Business Days following the day of mailing. Accidental error or omission in giving notice or accidental failure to mail notice to any Noteholder or the inability of the Corporation to give or mail any notice due to anything beyond the reasonable control of the Corporation shall not invalidate any action or proceeding founded thereon.

If any notice given in accordance with the foregoing paragraph would be unlikely to reach the Noteholders to whom it is addressed in the ordinary course of post by reason of an interruption in mail service, whether at the place of dispatch or receipt or both, the Corporation shall give such notice by publication at least once in the City of Vancouver (or in such of those cities as, in the opinion of the Trustee, is sufficient in the particular circumstances), each such publication to be made in a daily newspaper of general circulation in the designated city.

Any notice given to Noteholders by publication shall be deemed to have been given on the day on which publication shall have been effected at least once in each of the newspapers in which publication was required. All notices with respect to any Note may be given to whichever one of the holders thereof (if more than one) is named first in the registers hereinbefore mentioned, and any notice so given shall be sufficient notice to all holders of any Persons interested in such Note.

12.3 Notice to Trustee

Any notice to the Trustee under the provisions of this Indenture shall be valid and effective if delivered to the Trustee at its principal office in the City of Vancouver at 510 Burrard Street, 3<sup>rd</sup> Floor, Vancouver, British Columbia V6C 3B9, Attention: General Manager, Corporate Trust, Email: corporatetrust.vancouver@computershare.com and shall be deemed to have been effectively on the date of transmission, or if such day is not a Business Day, on the first Business Day following the day of transmission; provided that such notice delivered by e-mail is delivered before 4:00 p.m. (Vancouver time) on such Business Day and the sender does not receive a delivery failure notice or if given by registered letter, postage prepaid, to such offices and so addressed and if mailed, shall be deemed to have been effectively given three Business Days following the mailing thereof. The Trustee may from time to time notify the Corporation in writing of a change of address which thereafter, until changed by like notice, shall be the address of the Trustee for all purposes of this Indenture.

12.4 Mail Service Interruption

If by reason of any interruption of mail service, actual or threatened, any notice to be given to the Trustee or the Corporation, as applicable, would reasonably be unlikely to reach its destination by the time notice by mail is deemed to have been given pursuant to Sections 12.1 or 12.3, as applicable, such notice shall be valid and effective only if delivered at the appropriate address in accordance with this Sections 12.1 or 12.3, as applicable.

**ARTICLE 13 CONCERNING THE TRUSTEE**

13.1 Replacement of Trustee

The Trustee may resign its trust and be discharged from all further duties and liabilities under the Note Documents by giving to the Corporation 90 days' notice in writing or such shorter notice as the Corporation may accept as sufficient. If at any time a material conflict of interest exists in the Trustee's role as a fiduciary hereunder the Trustee shall, within 30 days after ascertaining that such a material conflict of interest exists, either eliminate such material conflict of interest or resign in the manner and with the effect specified in this Section 13.1. The validity and enforceability of this Indenture, the Notes issued hereunder and the other Note Documents shall not be affected in any manner whatsoever by reason only that such a material conflict of interest exists. In the event of the Trustee resigning or being removed or being dissolved, becoming bankrupt, going into liquidation or otherwise becoming incapable of acting hereunder, the Corporation shall forthwith appoint a new Trustee unless a new Trustee has already been appointed by the Noteholders. Failing such appointment by the Corporation, the retiring Trustee or any Noteholder may apply to a Judge of the Supreme Court of British Columbia, on such notice as such Judge may direct at the Corporation's expense, for the appointment of a new Trustee but any new Trustee so appointed by the Corporation or by the Court shall be subject to removal as aforesaid by the Noteholders and the appointment of such new Trustee shall be effective only upon such new Trustee becoming bound by this Indenture. Any new Trustee appointed under any provision of this Section 13.1 shall be a corporation authorized to carry on the business of a trust company in all of the provinces and territories of Canada. On any new appointment the new Trustee shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named in each Note Document as Trustee.

Any trust company into which the Trustee may be merged or, with or to which it may be consolidated, amalgamated or sold, or any trust company resulting from any merger, consolidation, sale or amalgamation to which the Trustee shall be a party, shall be the successor trustee under each Note Document without the execution of any instrument or any further act. Nevertheless, upon the written request of the successor Trustee or of the Corporation, the Trustee ceasing to act shall execute and deliver an instrument assigning and transferring to such successor Trustee, upon the trusts expressed in each Note Document, all the rights, powers and trusts of the Trustee so ceasing to act, and shall duly assign, transfer and deliver all property and money held by such Trustee to the successor Trustee so appointed in its place. Should any deed, conveyance or instrument in writing from the Corporation be required by any new Trustee for more fully and certainly vesting in and confirming to it such estates, properties, rights, powers and trusts, then any and all such deeds, conveyances and instruments in writing shall on request of said new Trustee, be made, executed, acknowledged and delivered by the Corporation.

13.2 Duties of Trustee

In the exercise of the rights, duties and obligations prescribed or conferred by the terms of this Indenture, the Trustee shall act honestly and in good faith and exercise that degree of care, diligence and skill that a reasonably prudent trustee would exercise in comparable circumstances.

13.3 Reliance Upon Declarations, Opinions, etc.

In the exercise of its rights, duties and obligations hereunder the Trustee may, if acting in good faith, rely, as to the truth of the statements and accuracy of the opinions expressed therein, upon statutory declarations, opinions, reports or certificates furnished pursuant to any covenant, condition or requirement of this Indenture or required by the Trustee to be furnished to it in the exercise of its rights and duties hereunder, if the Trustee examines such statutory declarations, opinions, reports or certificates and determines that they comply with Section 13.4, if applicable, and with any other applicable requirements of this Indenture. The Trustee may nevertheless, in its discretion, require further proof in cases where it deems further proof desirable. Without restricting the foregoing, the Trustee may rely on an opinion of Counsel satisfactory to the Trustee notwithstanding that it is delivered by a solicitor or firm which acts as solicitors for the Corporation.

13.4 Evidence and Authority to Trustee, Opinions, Etc.

The Corporation shall furnish to the Trustee evidence of compliance with the conditions precedent provided for in this Indenture relating to any action or step required or permitted to be taken by the Corporation or the Trustee under this Indenture or as a result of any obligation imposed under this Indenture, including the certification and delivery of Notes hereunder, the satisfaction and discharge of this Indenture and the taking of any other action to be taken by the Trustee at the request of or on the application of the Corporation, forthwith if and when (a) such evidence is required by any other Section of this Indenture to be furnished to the Trustee in accordance with the terms of this Section 13.4, or (b) the Trustee, in the exercise of its rights and duties under this Indenture, gives the Corporation written notice requiring it to furnish such evidence in relation to any particular action or obligation specified in such notice.

Such evidence shall consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a certificate made by any one officer or director of the Corporation, stating that any such condition
precedent has been complied with in accordance with the terms of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an opinion or advice of Counsel that such condition precedent has been complied with in accordance with
the terms of this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of any such condition precedent compliance with which is subject to review or examination
by auditors or accountants, an opinion or report of the Auditors of the Corporation whom the Trustee for such purposes hereby approves,
that such condition precedent has been complied with in accordance with the terms of this Indenture.

Whenever such evidence relates to a matter other than the certificates and delivery of Notes and the satisfaction and discharge of this Indenture, and except as otherwise specifically provided herein, such evidence may consist of a report or opinion of any solicitor, auditor, accountant, engineer or appraiser or any other person whose qualifications give authority to a statement made by him; provided that if such report or opinion is furnished by a trustee, officer or employee of the Corporation or the Corporation, as the case may be, it shall be in the form of a statutory declaration. Such evidence shall be, so far as appropriate, in accordance with the immediately preceding paragraph of this Section 13.4.

Each statutory declaration, certificate, opinion or report with respect to compliance with a condition precedent provided for in the Indenture shall include (a) a statement by the person giving the evidence that he has read and is familiar with those provisions of this Indenture relating to the condition precedent in question, (b) a brief statement of the nature and scope of the examination or investigation upon which the statements or opinions contained in such evidence are based, (c) a statement that, in the belief of the person giving such evidence, he has made such examination or investigation as is necessary to enable him to make the statements or give the opinions contained or expressed therein, and (d) a statement whether in the opinion of such person the conditions precedent in question have been complied with or satisfied.

The Corporation shall furnish or cause to be furnished to the Trustee at any time if the Trustee reasonably so requires, an Officer's Certificate of the Corporation certifying that the Corporation has complied with all covenants, conditions or other requirements contained in this Indenture, the non-compliance with which would, with the giving of notice or the lapse of time, or both, or otherwise, constitute an Event of Default, or if such is not the case, specifying the covenant, condition or other requirement which has not been complied with and giving particulars of such non-compliance. The Corporation shall, whenever the Trustee so requires, furnish the Trustee with evidence by way of statutory declaration, opinion, report or certificate as specified by the Trustee as to any action or step required or permitted to be taken by the Corporation or as a result of any obligation imposed by this Indenture.

13.5 Officer's Certificates Evidence

Except as otherwise specifically provided or prescribed by this Indenture, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, the Trustee, if acting in good faith, may rely upon an Officer's Certificate.

13.6 Experts, Advisers and Agents

The Trustee may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) employ or retain and act and rely on the opinion or advice of or information obtained from any solicitor,
auditor, valuator, engineer, surveyor, appraiser or other expert, whether obtained by the Trustee or by the Corporation, or otherwise,
in relation to any matter arising in the administration of hereof, and shall not be liable for acting, or refusing to act, in good faith
on any such opinion or advice and shall not be responsible for any misconduct on the part of any of them and may pay proper and reasonable
compensation for all such legal and other advice or assistance as aforesaid. The reasonable costs of such services shall be added to and
become part of the Trustee's remuneration hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) employ such agents and other assistants as it may reasonably require for the proper discharge of its duties
hereunder, and shall not be responsible for any misconduct on the part of any of them, provided they were selected with reasonable care,
and may pay reasonable remuneration for all services performed for it (and shall be entitled to receive reasonable remuneration for all
services performed by it) in the discharge of the trusts hereof and compensation for all disbursements, costs and expenses made or incurred
by it in the discharge of its duties hereunder and in the management of the trusts hereof and any solicitors employed or consulted by
the Trustee may, but need not be, solicitors for the Corporation.

13.7 Trustee May Deal in Notes

Subject to Sections 13.1 and 13.2, the Trustee may, in its personal or other capacity, buy, sell, lend upon and deal in the Notes and generally contract and enter into financial transactions with the Corporation or otherwise, without being liable to account for any profits made thereby.

13.8 Investment of Monies Held by Trustee

Unless otherwise provided in this Indenture, until released in accordance with this Indenture, monies held by Trustee shall be kept segregated in the records of the Trustee and shall be deposited in one or more interest-bearing trust accounts to be maintained by the Trustee in the name of the Trustee at one or more banks listed in Schedule E (an "**Approved Bank**"). All amounts held by the Trustee pursuant to this Indenture shall be held by the Trustee pursuant to the term of this Indenture and shall not give rise to a debtor-creditor or other similar relationship. Alternatively monies held by the Trustee, which, under the trusts of this Indenture may be invested and reinvested in the name or under the control of the Trustee in securities in which, under the laws of the Province of British Columbia, trustees are authorized to invest trust monies; provided that such securities are expressed to mature within two years or such shorter period selected to facilitate any payments expected to be made under this Indenture, after their purchase by the Trustee, and unless and until the Trustee shall have declared the principal of and premium (if any) and interest on the Notes to be due and payable, the Trustee shall so invest such monies at the Written Direction of the Corporation given in a reasonably timely manner. The amounts held by the Trustee pursuant to this Indenture or invested are at the sole risk of Corporation and, without limiting the generality of the foregoing, the Trustee shall have no responsibility or liability for any diminution of the monies which may result from any deposit made with an Approved Bank or invested pursuant to this Section 13.8, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default) and any credit or other losses on any deposit liquidated or sold prior to maturity. The parties hereto acknowledge and agree that the Trustee will have acted prudently in depositing the monies at any Approved Bank. Pending instructions to investment of any monies as hereinbefore provided, such monies may be deposited in the name of the Trustee at an Approved Bank and with interest payable at the usual rate of interest then provided by the Trustee, if any, on similar deposits.

13.9 Trustee Not Ordinarily Bound

Except as provided in Section 8.2 and as otherwise specifically provided herein, the Trustee shall not, subject to Section 13.2, be bound to give notice to any Person of the execution hereof, nor to do, observe or perform or see to the observance or performance by the Corporation of any of the obligations imposed under any Note Document upon the Corporation or of the covenants on the part of the Corporation therein contained, nor in any way to supervise or interfere with the conduct of the business of the Corporation, unless the Trustee shall have been required to do so in writing by the holders of not less than 25% of the aggregate principal amount of the Notes then outstanding or by any Extraordinary Resolution of the Noteholders passed in accordance with the provisions contained in Article 11, and then only after it shall have been funded and indemnified to its satisfaction against all actions, proceedings, claims and demands to which it may render itself liable and all costs, charges, damages and expenses which it may incur by so doing.

13.10 Trustee Not Required to Give Security

The Trustee shall not be required to give any bond or security in respect of the execution of the trusts and powers of this Indenture or otherwise in respect of the premises.

13.11 Trustee Not Bound to Act on Corporation's Request

Except as in this Indenture otherwise specifically provided, the Trustee shall not be bound to act in accordance with any direction or request of the Corporation until a duly certified copy of the instrument or resolution containing such direction or request shall have been delivered to the Trustee, and the Trustee shall be empowered to act upon any such copy purporting to be certified and believed by the Trustee to be genuine.

13.12 Conditions Precedent to Trustee's Obligations to Act Hereunder

The obligation of the Trustee to commence or continue any act, action or proceeding for the purpose of enforcing the rights of the Trustee and of the Noteholders hereunder shall be conditional upon the Noteholders furnishing when required by notice in writing by the Trustee, sufficient funds to commence or continue such act, action or proceeding and indemnity reasonably satisfactory to the Trustee to protect and hold harmless the Trustee against the costs, charges and expenses and liabilities to be incurred thereby and any loss and damage it may suffer by reason thereof.

None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers unless indemnified and funded as aforesaid.

The Trustee may, before commencing or at any time during the continuance of any such act, action or proceeding require the Noteholders at whose instance it is acting to deposit with the Trustee the Notes held by them for which Notes the Trustee shall issue receipts.

13.13 Authority to Carry on Business

The Trustee represents to the Corporation that at the date of execution and delivery by it of this Indenture it is authorized to carry on the business of a trust company in each of the provinces and territories of Canada but if, notwithstanding the provisions of this Section 13.13, it ceases to be so authorized to carry on business, the validity and enforceability of the Note Documents and the securities issued hereunder shall not be affected in any manner whatsoever by reason only of such event but the Trustee shall, within 90 days after ceasing to be authorized to carry on the business of a trust company in any of the provinces and territories of Canada, either become so authorized or resign in the manner and with the effect specified in Section 13.1.

13.14 Compensation and Indemnity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Compensation:* The Corporation shall pay to the Trustee from time to time compensation for its services
hereunder as agreed separately by the Corporation and the Trustee, and shall pay or reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in the administration or execution of its duties under the Note Documents
(including the reasonable and documented compensation and disbursements of its Counsel and all other advisers and assistants not regularly
in its employ), both before any default hereunder and thereafter until all duties of the Trustee under the Note Documents shall be finally
and fully performed. The Trustee's compensation shall not be limited by any law on compensation of a trustee of an express trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Indemnity*: The Corporation hereby indemnifies and saves harmless the Trustee and its Affiliates,
their successors and assigns, as well as its and their respective directors, officers, employees, and agents, harmless from and against
any and all loss, damages, charges, expenses, claims, demands, assessments, interest, penalties, actions or liability whatsoever which
may be brought against the Trustee or which it may suffer or incur including expert, consultant and counsel fees and disbursements on
a solicitor and client basis, as a result of or arising out of the performance of its duties and obligations or omissions hereunder, save
only in the event of the gross negligence, or the fraud, wilful misconduct or bad faith of the Trustee. This indemnity will survive the
termination or discharge of this Indenture and the resignation or removal of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Environmental Indemnity*: The Corporation hereby indemnifies and holds harmless the Trustee, its
affiliates, their directors, officers, employees, representatives and agents, and all of their respective representatives, heirs, successors
and assigns (collectively, the "Indemnified Parties") against any loss, suits, actions, damages, obligations, fines, penalties,
charges, expenses, claims, proceedings, judgements, liability or asserted liability including strict liability and including costs and
expenses of abatement and remediation
of spills or releases of contaminants and including liabilities of the Indemnified Parties to third parties, including any Governing Authority
arising as a result of any order, investigation or action by any Governing Authority relating to the Corporation, or its Business or real
property interests of the Corporation, or arising in respect of bodily injuries, property damage, damage to or impairment of the environment
or any other injury or damage and including liabilities of the Indemnified Parties to third parties for the third parties' foreseeable
and unforeseeable consequential damages incurred as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Release of any Hazardous Substance that may (i) injure or damage plant or animal life, (ii) adversely
affect the health of any individual, (iii) render any property or plant or animal life unfit for use by humans, or (iv) interfere with
the normal course of business, the threat of the Release of a Hazardous Substance, or the presence of any Hazardous Substance, by any
means or for any reason, any real property of the Corporation comprising security under this Indenture), whether or not the Release or
presence of the Hazardous Substance was under the control, care or management of the Corporation or of a previous owner, or of a tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Hazardous Substance present on or released from any contiguous property to the mortgaged property
of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any costs incurred by any Governing Authority or any other person or damages from injury to, destruction
of, or loss of natural resources in relation to any real property of the Corporation comprising security under this Indenture or personal
property located thereon, including reasonable costs of assessing such injury, destruction or loss incurred under Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) liability for personal injury or property damages arising by reason of any civil law offenses or quasi-offenses
or under any statutory or common law tort or similar theory, including, without limitation, damages assessed for the maintenance of a
public or private nuisance or for the carrying on of a dangerous activity at, near or with respect to any real property of the Corporation
comprising security under this Indenture or elsewhere; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the breach or alleged breach of any Environmental Laws by the Corporation, and any other environmental
matter affecting any real property of the Corporation comprising security under this Indenture or the operations and activities of the
Corporation within the jurisdiction of any Governing Authority.

For the purposes of this Section 13.14(c), "liability" shall include (i) liability of an Indemnified Party for costs and expenses of abatement and remediation of spills and releases of Hazardous Substances, (ii) liability of an Indemnified Party to a third party to reimburse the third party for bodily injuries, property damages and other injuries or damages which the third party suffers, including (to the extent, if any, that the Indemnified Party is liable therefore) foreseeable and unforeseeable consequential damages suffered by the third party and (iii) liability of the Indemnified Party for damage suffered by the third party, (iv) liability of an Indemnified Party for damage to or impairment of the environment and (v) liability of an Indemnified Party for court costs, expenses of alternative dispute resolution proceedings, and fees and disbursements of expert consultants and legal counsel on a solicitor and client basis.

The obligations of the Corporation to the Indemnified Parties under this Section 13.14(c) shall be joint and several and shall survive the satisfaction and discharge of this Indenture or the earlier resignation or removal of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Exceptions:* The Corporation need not reimburse any expense or indemnify against any loss or liability
incurred by the Trustee through gross negligence, fraud, willful misconduct or bad faith of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Limitations:* Notwithstanding any other provision of this Indenture, and whether such losses or
damages are foreseeable or unforeseeable, the Trustee shall not be liable under any circumstances whatsoever for any (i) breach by any
other party of the securities law or other rule of any securities regulatory authority, (ii) lost profits or (iii) special, indirect,
incidental, consequential, exemplary, aggravated or punitive losses or damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Reliance on Experts*: The Trustee shall be entitled to rely on, and shall not be liable for acting
or failing to act, in good faith, in relation to any matter relating to the Corporation where such action or failure to act is based upon,
statements from, the opinion or advice of, or information from the Auditors, Counsel or any valuator, engineer, surveyor, appraiser or
other expert (herein "**Experts**") where it is reasonable to conclude that the matter in respect of which such statements
are made, or opinion or advice given, ought to be within the expertise of such Expert; provided that, with respect to the retention of
Experts, the Trustee or Corporation have satisfied its standard of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Good Faith Reliance*: The Trustee shall not be liable to any Noteholder or other Persons in relying
in good faith upon statements or information from, the opinion or advice of, or instruments or directions given by an officer, director,
trustee, employee or agent of the Corporation or of an affiliate of the Corporation or by a broker, a custodian or any Noteholder, or
by such other parties as may be authorized to give instructions or directions to the Trustee. If required by the Trustee, the Corporation
shall file with the Trustee a certificate of incumbency setting forth the names and titles of parties authorized to give instructions
or directions to the Trustee together with specimen signatures of such persons and the Trustee shall be entitled to rely on the latest
such certificate of incumbency filed with it. The Trustee, the Corporation and each affiliate of the Corporation and their respective
directors, officers, trustees, shareholders, employees and agents shall not be liable to any Noteholder or other Persons for, and shall
each be fully protected from liability in respect to, acting upon any instrument, certificate or paper believed by it, in good faith,
to be genuine and signed or presented by the proper Person or Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Limit on Liability*: In addition to those limits on the liability of the Trustee set forth above,
the Trustee, as trustee of the Noteholders, shall to the greatest extent permitted by Applicable Laws, have no liability whatsoever (whether
direct or indirect, absolute or contingent) in tort, contract or otherwise to any Noteholder or any other Person and no resort shall be
had to its property or assets for satisfaction of any obligation, liability or claim against it as Trustee of the Noteholders, and the
Security Property shall only be subject to levy or execution in respect thereof, where such obligation, liability or claim arises out
of or in connection with, directly or indirectly, the Security Property or the conduct and undertaking of the activities and affairs of
the Corporation .

13.15 Acceptance of Trust

The Trustee hereby accepts the trusts in this Indenture declared and provided for and agrees to perform the same upon the terms and conditions herein set forth and to hold all rights, privileges and benefits conferred hereby and by law in trust for the various Persons who shall from time to time be Noteholders, subject to all the terms and conditions herein set forth.

13.16 Third Party Interests

Each party to this Indenture (in this paragraph referred to as a "**representing party**") hereby represents to the Trustee that any account to be opened by, or interest to be held by, the Trustee in connection with this Indenture, for or to the credit of such representing party, either (a) is not intended to be used by or on behalf of any third party; or (b) is intended to be used by or on behalf of a third party, in which case such representing party hereby agrees to complete, execute and deliver forthwith to the Trustee a declaration, in the Trustee's prescribed form or in such other form as may be satisfactory to it, as to the particulars of such third party.

13.17 Anti-Money Laundering

The Trustee shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Trustee, in its sole judgment, acting reasonably, determines that such act might cause it to be in noncompliance with any applicable anti-money laundering or anti-terrorist legislation, or economic sanctions legislation, regulation or guideline. Further, should the Trustee, in its sole judgment, acting reasonably, determine at any time that its acting under any Note Document has resulted in its being in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, economic sanctions legislation, regulation or guideline, then it shall have the right to resign on 10 days' prior written notice sent to the Corporation; provided that (a) the Trustee's written notice shall describe the circumstances of such non-compliance; and (b) if such circumstances are rectified to the Trustee's satisfaction within such 10-day period, then such resignation shall not be effective.

13.18 Privacy Laws

The parties acknowledge that the Trustee may, in the course of providing services hereunder, collect or receive financial and other personal information about such parties and/or their representatives, as individuals, or about other individuals related to the subject matter hereof, and use such information for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to provide the services required under any Note Document and other services that may be requested from
time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to help the Trustee manage its servicing relationships with such individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to meet the Trustee's legal and regulatory requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if social insurance numbers are collected by the Trustee, to perform Tax reporting and to assist in verification
of an individual's identity for security purposes.

Each party acknowledges and agrees that the Trustee may receive, collect, use and disclose personal information provided to it or acquired by it in the course of this Indenture for the purposes described above and, generally, in the manner and on the terms described in its privacy code, which the Trustee shall make available on its website or upon request, including revisions thereto. The Trustee may transfer some of that personal information to other companies in or outside of Canada that provide data processing and storage or other support in order to facilitate the services it provides. Further, each party agrees that it shall not provide or cause to be provided to the Trustee any personal information relating to an individual who is not a party to any Note Document unless that party has assured itself that such individual understands and has consented to the aforementioned uses and disclosures.

13.19 Force Majeure

Neither party shall be liable to the other, or held in breach of this Indenture, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, epidemics, pandemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, general mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Indenture shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this Section 13.19.

13.20 Concerning the Trustee

By way of supplement to the provisions of any law for the time being relating to the Trustee, it is expressly declared and agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Trustee shall not be liable for or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any defect in title to any Secured Assets or any failure of the Security Interest to constitute a valid
and perfected Encumbrance upon any Secured Assets with the priority contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any failure of or defect in the registration, filing or recording of any Note Document, or any other deed
or writing delivered hereunder by way of mortgage or charge upon the Secured Assets or any part thereof, or any notice, caveat or financing
statement with respect to the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any failure to do any act necessary to constitute, perfect and maintain the Security Interest or priority
of the Security Interest in the Secured Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Trustee shall not be liable for or by reason of any statement of fact or recitals in any Note Document
or be required to verify the same, but all such statements or recitals are and shall be deemed to be made by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Trustee shall not be bound to give notice to any Person of the execution hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Trustee shall not incur any liability or responsibility whatsoever or be in any way responsible for
the consequence of any breach on the part of the Corporation of any of the covenants contained in any Note Document or of any acts of
the agents or servants of the Corporation.

The Trustee will disburse monies according to this Indenture only to the extent that monies have been deposited with it.

The Trustee shall not be responsible for ensuring that the proceeds of any offering of Notes are used in the manner contemplated by the offering documents.

13.21 Trustee Not to be Appointed Receiver

The Trustee and any Person related to the Trustee shall not be appointed a receiver, a receiver and manager or liquidator of all or any part of the assets or undertaking of the Corporation.

13.22 Trustee Not Required to Give Notice of Default

The Trustee shall not be required to take notice of any Event of Default hereunder, unless and until notified in writing of such Event of Default, which notice shall distinctly specify the Event of Default desired to be brought to the attention of the Trustee and in the absence of any such notice the Trustee may for all purposes of this Indenture conclusively assume that no Event of Default has been made in the observance or performance of any of the representations, warranties, covenants, agreements or conditions contained herein.

**ARTICLE 14 SUPPLEMENTAL INDENTURES**

14.1 Supplemental Indentures

Subject to each Subordination Agreement, from time to time the Trustee and, when authorized by a resolution of the Board of Directors, the Corporation, may, and they shall when required by this Indenture, execute, acknowledge and deliver by their proper officers deeds or indentures supplemental hereto which thereafter shall form part hereof, for any one or more of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) providing for the creation and issuance of Additional Notes under this Indenture and establishing the
terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adding to the covenants of the Corporation or otherwise amending the terms hereof if in the opinion of
the Trustee, relying on the advice of Counsel, such addition or amendment will not be prejudicial to the rights of the Noteholders or
the Trustee, and provided further that the Trustee may in its sole discretion decline to enter into any such supplemental indenture which
in its opinion may not afford adequate protection to the Trustee when the same shall become operative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) making such provisions not inconsistent with this Indenture as may be necessary or desirable with respect
to matters or questions arising hereunder, including the making of any modifications in the form of the Notes which do not affect the
substance thereof and which in the opinion of the Trustee relying on an opinion of Counsel will not be
prejudicial to the rights of the Noteholders or the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) evidencing the succession, or successive successions, of others to the Corporation and the covenants of
and obligations assumed by any such successor in accordance with the provisions of a Note Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) giving effect to any Extraordinary Resolution passed as provided in Article 12; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) for any other purpose not inconsistent with the terms of this Indenture, including the correction or rectification
of any ambiguities, defective or inconsistent provisions, errors, mistakes or omissions herein, provided that in the opinion of the Trustee,
relying on the opinion of Counsel, the rights of the Trustee and of the Noteholders are in no way prejudiced thereby.

Unless the supplemental indenture requires the consent or concurrence of Noteholders or the holders of a particular series of Notes, as the case may be, by Extraordinary Resolution, the consent or concurrence of Noteholders or the holders of a particular series of Notes, as the case may be, shall not be required in connection with the execution, acknowledgement or delivery of a supplemental indenture. The Corporation and the Trustee may amend any of the provisions of this Indenture related to the listing of the Notes on an exchange or matters of United States law or the issuance of Notes into the United States in order to ensure that such issuances can be made in accordance with Applicable Law in the United States without the consent or approval of the Noteholders. The Corporation and the Trustee may without the consent or concurrence of the Noteholders or the holders of a particular series of Notes, as the case may be, by supplemental indenture or otherwise, make any changes or corrections in this Indenture which (a) in the opinion of the Trustee or its counsel or Counsel is of a format, minor or technical nature, or that (b) it shall have been advised by Counsel are required for the purpose of curing or correcting any ambiguity or defective or inconsistent provisions or clerical omissions or mistakes or manifest errors contained herein or in any indenture supplemental hereto or any Written Direction of the Corporation provided for the issue of Notes; provided that in the opinion of the Trustee (relying upon the advice of Counsel) the rights of the Noteholders and Trustee, and rights of Senior Creditors under the provisions of Article 6 are in no way prejudiced thereby.

**ARTICLE 15 LIABILITY OF TRUSTEE**

15.1 Limitation of Liability

Computershare Trust Company of Canada has entered into this agreement and any document delivered in connection herewith solely in its capacity as Trustee (and in such capacity is herein only referred to as the "**Trustee**") and not in its personal capacity. Whenever any reference is made in this agreement or in any document delivered in connection herewith, to an act to be performed by the Trustee, such reference shall be construed and applied for all purposes as if it referred to an act to be performed by the Trustee for and on behalf of the Noteholders. Any and all of the representations, undertakings, covenants, indemnities, agreements and other obligations (in this section, collectively "obligations") made on the part of the Trustee herein or therein are made and intended not as personal obligations of or by Computershare Trust Company of Canada or for the purpose or with the intention of binding Computershare Trust Company of Canada in its personal capacity, but are made and intended for the purpose of binding only the Trustee in its capacity as trustee for the Noteholders. No property or assets of Computershare Trust Company of Canada, whether owned beneficially by it in its personal capacity or otherwise, will be subject to levy, execution or other enforcement procedures with regard to any of the Trustee's obligations hereunder or thereunder. No recourse may be had or taken, directly or indirectly, against Computershare Trust Company of Canada in its personal capacity, or any incorporator, shareholder, officer, director, employee or agent of Computershare Trust Company of Canada or of any predecessor or successor of Computershare Trust Company of Canada, with regard to the Trustee's obligations hereunder.

**ARTICLE 16 EXECUTION AND FORMAL DATE**

16.1 Execution

The words "execution," "signed," "signature," and words of like import in any Note Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Laws, including Parts 2 and 3 of the *Personal Information Protection and Electronic Documents Act* (Canada), the *Electronic Transactions Act* (British Columbia) and other similar federal or provincial laws based on the Uniform Electronic Commerce Act of the Uniform Law Conference of Canada or its Uniform Electronic Evidence Act, as the case may be.

16.2 Counterparts

This Indenture may be simultaneously executed in counterparts, each of which when so executed and delivered shall be deemed to be an original and such counterparts together shall constitute one and the same instrument and notwithstanding their date of execution they shall be deemed to be dated as of the date hereof. Transmission of a facsimile of a counterpart of this Indenture signed by one party hereto to the other shall be as effective as delivery of an original manually signed counterpart hereof.

16.3 Contracts of the Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The directors of the Corporation, in incurring any debts, liabilities or obligations, or in taking or
omitting any other actions for or in connection with the affairs of the Corporation are, and will be conclusively deemed to be, acting
for and on behalf of the Corporation, and not in their own personal capacities. None of the directors of the Corporation will be subject
to any personal liability for any debts, liabilities, obligations, claims, demands, judgments, costs, charges or expenses (including legal
expenses) against or with respect to the Corporation or in respect to the affairs of the Corporation. No property or assets of the directors,
owned in their personal capacity or otherwise, will be subject to any levy, execution or other enforcement procedure with regard to any
obligations under this Indenture or the Notes. No recourse may be had or taken, directly or indirectly, against the directors in their
personal capacity. The Corporation will be solely liable therefor and resort will be had solely to the property and assets of the Corporation
for payment or performance thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No holder of Shares as such will be subject to any personal liability whatsoever, whether extra-contractually,
contractually or otherwise, to any party to this Indenture or pursuant to the Notes in connection with the obligations or the affairs
of the Corporation or the acts or omissions of the directors, whether under this Indenture, the Notes or otherwise, and the other parties
to this Indenture and the holders of the Notes will look solely to the property and assets of the Corporation for satisfaction of claims
of any nature arising out of or in connection therewith and the property and assets of the Corporation only will be subject to levy or
execution.

16.4 Formal Date

For the purpose of convenience this Indenture may be referred to as bearing the formal date of August 24, 2021 irrespective of the actual date of execution hereof. 24

***[Remainder of this page has been intentionally left blank.]***

**IN WITNESS WHEREOF** the parties have hereunto executed this Note Indenture as of the day and year first above written.

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| | | |
|:---|:---|:---|
| **INTERNATIONAL CUMO MINING CORPORATION** | **INTERNATIONAL CUMO MINING CORPORATION** | **INTERNATIONAL CUMO MINING CORPORATION** |
| By: | /s/ Shaun M. Dykes | /s/ Shaun M. Dykes |
|  | Name: | Shaun M. Dykes |
|  | Title: | President, CEO and Secretary |
| **COMPUTERSHARE TRUST COMPANY OF CANADA** | **COMPUTERSHARE TRUST COMPANY OF CANADA** | **COMPUTERSHARE TRUST COMPANY OF CANADA** |
| By: | /s/ Nicholas Richard | /s/ Nicholas Richard |
|  | Name: | Nicholas Richard |
|  | Title: | Corporate Trust Officer |
| By: | /s/ Alexa Kwan | /s/ Alexa Kwan |
|  | Name: | Alexa Kwan |
|  | Title: | Associate Trust Officer |

---

**SCHEDULE A**

**FORM OF NOTE**

**INTERNATIONAL CUMO MINING CORPORATION**

**AND**

**COMPUTERSHARE TRUST COMPANY OF CANADA**

**FORM OF NOTE**

[*If Global Note, include the following legends*]

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREIN REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE TRANSFERRED TO OR EXCHANGED FOR NOTES REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE DATED AS OF THE _____ DAY OF AUGUST, 2021 BETWEEN INTERNATIONAL CUMO MINING CORPORATION AND COMPUTERSHARE TRUST COMPANY OF CANADA (THE "**INDENTURE**"). EVERY NOTE AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS NOTE SHALL BE A GLOBAL NOTE SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("**CDS**") TO INTERNATIONAL CUMO MINING CORPORATION (THE "**ISSUER**") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE.

[*For Note Certificates issued to U.S. Purchasers include the following legends*]

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT") OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON EXCHANGES IN CANADA

CUSIP: ●

ISIN: CA ●

---

| | |
|:---|:---|
| No. ____ | US$_________________ |

---

**INTERNATIONAL CUMO MINING CORPORATION** 

**(A corporation incorporated and existing under the laws of the State of Idaho)** 

**7.5% SECURED NOTE DUE MAY 31, 2028** 

International CuMo Mining Corporation (the "**Corporation**" or the "**Issuer**") for value received hereby acknowledges itself indebted and, subject to the provisions of the indenture (the "**Indenture**") dated August _____, 2021 between the Corporation and Computershare Trust Company of Canada (the "**Trustee**"), promises to pay to ______________________ on the earlier of: (i) May 31, 2028; or (ii) the 31<sup>st</sup> day following the delivery of a Triggering Event Notice (the "**Maturity Date**") or on such earlier date as the principal amount hereof may become due in accordance with the provisions of the Indenture the principal sum of __________________ dollars (US$___________________) in lawful currency of the United States on presentation and surrender of this Initial Note at the main branch of the Trustee in the City of Vancouver in accordance with, and subject to the conditions of, the Indenture and, subject as hereinafter provided, to pay interest on the principal amount hereof from the date hereof, or from the last day to which interest shall have been paid or made available for payment hereon, whichever is later. The Initial Notes shall bear interest from and including the Closing Date at the rate of 7.5% per annum (based on a year of 365 days). Accrued and unpaid interest shall be paid in cash in accordance with the provisions of the Indenture.

This Initial Note is one of the 7.5% Secured Notes Due May 31, 2028 (referred to herein as the "**Initial Note**") of the Corporation issued or issuable in one or more series under the provisions of the Indenture. The Initial Notes authorized for issue immediately are limited to an aggregate principal amount of US$12,500,000 in lawful currency of the United States. Reference is hereby expressly made to the Indenture for a description of the terms and conditions upon which the Initial Notes are or are to be issued and held and the rights and remedies of the holders of the Initial Notes and of the Corporation and of the Trustee, all to the same effect as if the provisions of the Indenture were herein set forth to all of which provisions the holder of this Initial Note by acceptance hereof assents. In the event of any discrepancy between the terms in this Note and the Indenture, the Indenture shall prevail with respect to such discrepancy.

The Initial Notes are issuable only in denominations of US$1,000 and integral multiples thereof. Upon compliance with the provisions of the Indenture, Notes of any denomination may be exchanged for an equal aggregate principal amount of Notes in any other authorized denomination or denominations.

Upon and subject to the terms and conditions of this Indenture and any Subordination Agreement, the Corporation will on the Maturity Date: (i) repay the outstanding principal of the Initial Notes by paying to the Trustee in lawful currency of the United States an amount equal to the principal amount of the outstanding Initial Notes held by each holder of Initial Notes as of the Maturity Date; and (ii) satisfy the Interest Obligation in respect of the Initial Notes which have matured by paying to the Trustee in lawful currency of the United States an amount equal to the outstanding Interest Obligation as of the Maturity Date.

The indebtedness evidenced by this Initial Note, and by all other Initial Notes now or hereafter certified and delivered under the Indenture, is a direct secured obligation of the Corporation, and may be subordinated in right of payment and in right of security, to the extent and in the manner provided in the Indenture, to the prior payment in full of all Senior Indebtedness, whether outstanding at the date of the Indenture or thereafter created, incurred, assumed or guaranteed.

The principal hereof may become or be declared due and payable before the stated maturity in the events, in the manner, with the effect and at the times provided in the Indenture.

This Initial Note shall include the grant of the Silver Purchase Agreement Right as set forth in the Indenture.

This Initial Note have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), or the securities laws of any state of the United States. In addition, this Initial Note may only be offered and sold to a U.S. person or a person in the United States pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. "**U.S. person**" and "**United States**" are as defined in Regulation S under the U.S. Securities Act.

The Indenture contains provisions making binding upon all holders of Notes outstanding thereunder (or in certain circumstances specific series of Notes) resolutions passed at meetings of such holders held in accordance with such provisions and instruments signed by the holders of a specified majority of Notes outstanding (or specific series), which resolutions or instruments may have the effect of amending the terms of this Initial Note or the Indenture.

The Indenture contains provisions disclaiming any personal liability on the part of holders of Shares and officers, directors and employees of the Corporation in respect of any obligation or claim arising out of the Indenture, this Note or any other Note Document.

This Initial Note may only be transferred, upon compliance with the conditions prescribed in the Indenture, in one of the registers to be kept at the principal office of the Trustee in the City of Vancouver and in such other place or places and/or by such other registrars (if any) as the Corporation with the approval of the Trustee may designate. No transfer of this Initial Note shall be valid unless made on the register by the registered holder hereof or his executors or administrators or other legal representatives, or his or their attorney duly appointed by an instrument in form and substance satisfactory to the Trustee or other registrar, and upon compliance with such reasonable requirements as the Trustee and/or other registrar may prescribe and upon surrender of this Initial Note for cancellation. Thereupon a new Initial Note or Initial Notes in the same aggregate principal amount shall be issued to the transferee in exchange hereof.

This Initial Note shall not become obligatory for any purpose until it shall have been certified by the Trustee under the Indenture. The Initial Notes are governed by the Indenture. If any of the provisions of this Initial Note are inconsistent with the provisions of the Indenture, the provisions of the Indenture shall take precedence and shall govern. Capitalized words or expressions used in this Initial Note shall, unless otherwise defined herein, have the meaning ascribed thereto in the Indenture.

**IN WITNESS WHEREOF** International CuMo Mining Corporation has caused this Note to be signed by its authorized representative this ______ day of _______________, 20_____.

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|:---|:---|
| **INTERNATIONAL CUMO MINING CORPORATION** | **INTERNATIONAL CUMO MINING CORPORATION** |
| By: |  |
|  | Name: |
|  | Title: |

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**(FORM OF TRUSTEE'S CERTIFICATE)**

This Initial Note is one of the 7.5% Secured Notes Due May 31, 2028 referred to in the Indenture within mentioned.

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| | |
|:---|:---|
| **COMPUTERSHARE TRUST COMPANY OF CANADA** | **COMPUTERSHARE TRUST COMPANY OF CANADA** |
| By: |  |
|  | (Authorized Officer) |

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Date:

**FORM OF ASSIGNMENT** 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto __________________________, whose address and social insurance number, if applicable, are set forth below, this Initial Note (or US$________ principal amount hereof\*) of International CuMo Mining Corporation (the "**Corporation**") standing in the name(s) of the undersigned in the register maintained by the Corporation with respect to such Initial Note and does hereby irrevocably appoints__________________________ as it's attorney to transfer such Initial Note in such register, with full power of substitution in the premises.

Address of Transferee:

(Street Address, City, Province and Postal Code)

Social Insurance Number of Transferee, if applicable:

\* If less than the full principal amount of the within Initial Note is to be transferred, indicate in the space provided the principal amount (which must be US$1,000 or an integral multiple thereof, unless you hold an Initial Note in a non-integral multiple of US$1,000, in which case such Initial Note is transferable only in its entirety) to be transferred.

In the case of a Note Certificate bearing the U.S. Legend described in Section 2.16(e) of the Indenture, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

☐ (A) the transfer is being made to the Corporation;

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|:---|:---|:---|
| ☐ | (B) | the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and in compliance with any applicable local securities laws and regulations, and the holder has provided herewith a declaration in the form prescribed by the Corporation; |

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☐ (C) the transfer is being made pursuant to the exemption from the registration requirements of the U.S. Securities Act provided by Rule 144 under the U.S. Securities Act and in accordance with applicable state securities laws; OR

☐ (D) the transfer is being made in another transaction that does not require registration under the U.S. Securities Act or any applicable state securities laws.

In the case of a transfer in accordance with (C) or (D) above, the Trustee and the Corporation shall first have received an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation and the Trustee, to such effect.

"United States" and "U.S. Person" are as defined in Rule 902 of Regulation S under the U.S. Securities Act.

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| |
|:---|
| Signature of Transferor |
| Name of Transferor |

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**REASON FOR TRANSFER – For US Citizens or Residents only (where the individual(s) or corporation receiving the securities is a US citizen or resident). Please select only one (see instructions below).** 

☐ Gift ☐ Estate ☐ Private Sale ☐ Other (or no change in ownership)

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| | |
|:---|:---|
| **Date of Event** (Date of gift, death or sale): | **Face Value per Note** on the date of event: |

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|:---|:---|:---|
| <u> </u>/<u> </u>/<u> </u> | **$<u> </u>.<u> </u>** | ☐ CAD **<u>OR</u>** ☐ USD |

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**CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ CAREFULLY**

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. All securityholders or a legally authorized representative must sign this form. The signature(s) on this form must be guaranteed in accordance with the transfer agent's then-current guidelines and requirements at the time of transfer. Notarized or witnessed signatures are not acceptable as guaranteed signatures. As at the time of closing, you may choose one of the following methods (although subject to change in accordance with industry practice and standards):

**Canada and the USA:** A Medallion Signature Guarantee obtained from a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Many commercial banks, savings banks, credit unions, and all broker dealers participate in a Medallion Signature Guarantee Program. The Guarantor must affix a stamp bearing the actual words "Medallion Guaranteed", with the correct prefix covering the face value of the certificate.

**Canada:** A Signature Guarantee obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust. The Guarantor must affix a stamp bearing the actual words "Signature Guaranteed", sign and print their full name and alpha numeric signing number. Signature Guarantees are not accepted from Treasury Branches, Credit Unions or Caisse Populaires unless they are members of a Medallion Signature Guarantee Program. For corporate holders, corporate signing resolutions, including certificate of incumbency, are also required to accompany the transfer, unless there is a "Signature & Authority to Sign Guarantee" Stamp affixed to the transfer (as opposed to a "Signature Guaranteed" Stamp) obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a Medallion Signature Guarantee with the correct prefix covering the face value of the certificate.

**Outside North America:** For holders located outside North America, present the certificates(s) and/or document(s) that require a guarantee to a local financial institution that has a corresponding Canadian or American affiliate which is a member of an acceptable Medallion Signature Guarantee Program. The corresponding affiliate will arrange for the signature to be over-guaranteed.

**<u>REASON FOR TRANSFER – FOR US CITIZENS OR RESIDENTS ONLY</u>**

Consistent with U.S. IRS regulations, Computershare is required to request cost basis information from U.S. securityholders. Please indicate the reason for requesting the transfer as well as the date of event relating to the reason. The event date is not the day in which the transfer is finalized but, rather, the date of the event which led to the transfer request (i.e. date of gift, date of death of the securityholder, or the date the private sale took place).

**SCHEDULE B** 

**FORM OF PREPAYMENT NOTICE** 

**INTERNATIONAL CUMO MINING CORPORATION** 

**7.5% SECURED NOTES DUE MAY 31, 2028** 

**FORM OF PREPAYMENT NOTICE** 

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|:---|:---|
| To: | Holders of 7.5% Subordinated Secured Notes Due May 31, 2028 (the "**Notes**") of International CuMo Mining Corporation (the "**Corporation**") |

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Note: All capitalized terms used herein have the meaning ascribed thereto in the Indenture mentioned below, unless otherwise indicated.

Notice is hereby given pursuant to Section 4.3 of the Note Indenture (the "**Indenture**") dated August _____, 2021 among the Corporation and Computershare Trust Company of Canada (the "**Trustee**"), that the aggregate principal amount of US$__________________ of the US$__________________ of Notes outstanding will be prepaid as of ________________ (the "**Prepayment Date**"), upon payment of a Prepayment Price of US$_____________ for each US$1,000 principal amount of Notes, being equal to the aggregate of (i) US$______________, (ii) all accrued and unpaid interest hereon to but excluding the Prepayment Date, and (iii) all other amounts owed thereon under the Indenture (collectively, the "**Prepayment Price**").

The Prepayment Price will be payable upon presentation and surrender of the Notes called for Prepayment at the following office:

Computershare Trust Company of Canada

510 Burrard Street, 3<sup>rd</sup> Floor,

Vancouver, British Columbia V6C 3B9

Attention: General Manager, Corporate Trust

The interest upon the principal amount of Notes called for Prepayment shall cease to be payable from and after the Prepayment Date, unless payment of the Prepayment Price shall not be made on presentation for surrender of such Notes at the above-mentioned office on or after the Prepayment Date or prior to the setting aside of the Prepayment Price pursuant to the Indenture.

In this connection, upon presentation and surrender of the Notes for payment on the Prepayment Date, the Corporation shall, on the Business Day immediately prior to the Prepayment Date, make the delivery to the Trustee, at the above-mentioned corporate trust office, for delivery to and on account of the holders, of cash representing the balance of the Prepayment Price.

DATED: <u>,</u> 20<u>_____</u>

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| | |
|:---|:---|
| **INTERNATIONAL CUMO MINING CORPORATION** | **INTERNATIONAL CUMO MINING CORPORATION** |
| By: |  |
|  | Name: |
|  | Title: |

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**SCHEDULE C** 

**TERM SHEET** 

***Note: this is the term sheet for the future silver purchase and sale agreement; the agreement will be available for execution upon the occurrence of any Triggering Event. Unless otherwise defined within this Schedule C - Term Sheet and Appendix A hereto, defined terms used herein shall have the meanings ascribed thereto in the Indenture***

**<u>Silver Purchase and Sale Agreement Terms</u>**

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|:---|:---|
| **Seller:** | International CuMo Mining Corporation (the "**Seller**"), a corporation continued in Idaho, and a wholly-owned subsidiary of American CuMo Mining Corporation. |
| **Purchaser:** | The holder of the Notes of the Seller to which the Silver Purchase Agreement Right is attached. |
| **Property:** | The CuMo molybdenum project in Idaho, owned by the Seller (the "**Property**"). Specifically, the unpatented mineral claims both owned and under option that comprise the CuMo deposit's currently identified mineral resource**.** |
| **Nature of Transaction:** | On the occurrence of the Triggering Event, the Purchaser will enter into an agreement (an "**Agreement**") with the Seller for the purchase and sale of such number of ounces of Refined Silver (each, a "**Purchased Ounce**") as is equal to the dollar value of the principal amount of the Notes then held by the Purchaser and all accrued interest thereon up to and including the 31st day following delivery of a Triggering Event Notice by the Company pursuant to the terms of the Indenture., divided by US$1, at the Silver Purchase Price on the terms set out in this Term Sheet and such other terms as are customary in transactions of a similar nature. |
| **Stream Transaction Details:** | The requirement to complete the purchase and sale of the Purchased Ounces shall arise in respect of each Offtaker Parcel subject to an Offtaker Delivery, and the Purchaser and all other holders of rights to purchase Refined Silver from the Seller shall have the right to receive a pro rata share of the Reference Silver from such Offtaker Parcel, subject to the Maximum Annual Limit. |
| **Maximum Annual Limit:** | The maximum amount of the Reference Silver available for purchase and sale to all Purchasers and other holders of rights to purchase Refined Silver from the Seller is, on an annual basis, 1 million ounces plus a number of additional ounces equal to 50% of the number of ounces of Reference Silver from Offtaker Deliveries that year in excess of 1 million ounces. |
| **Deposit:** | The Purchaser will pay to the Seller an upfront cash payment of US$1 (the "**Deposit**") for each Purchased Ounce upon execution of the Agreement, which payment may be made by way of a set off against repayment of the principal amount of the Notes held by the Purchaser and all accrued interest thereon. <br> The Deposit will represent a prepayment of a portion of the Silver Purchase Price for the sale of Refined Silver by the Seller to the Purchaser pursuant to the Agreement. Interest at 7.5% per annum shall accrue on, or be payable in respect of, the Deposit until the Commencement of Commercial Production on the Property after which no interest will be levied. Any Uncredited Balance at the end of the Term will be repaid by the Seller to the Purchaser.<br>The proceeds of the Deposit may be used by the Seller in its sole discretion. |

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● until the Deposit Reduction Time, the Silver Market Price on the Business Day immediately preceding the Date of Delivery of such Purchased Silver, payable (i) in cash or by wire transfer equal to US$5 per Purchased Ounce (the "**Cash Purchase Price**") (subject to an annual inflationary adjustment at a rate of 1% per annum), and (ii) the balance payable by crediting an amount equal to the difference between the Silver Market Price on the day immediately preceding the Date of Delivery of such Purchased Silver and the Cash Purchase Price against the Deposit in order to reduce the Uncredited Balance until it has been credited and reduced to nil; and

● after the Uncredited Balance has been reduced to nil ()"**Deposit Reduction Time** "), the Cash Purchase Price, payable in cash or by wire transfer.

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|:---|:---|
| **Optional Cash Settlement:** | At the option of the Purchaser, instead of transferring title of Refined Silver to the Purchaser, the Purchaser may require that the Seller pay over to the Purchaser an amount in cash equal to the product arrived at when multiplying (i) the Purchased Silver by (ii) the difference between the Silver Market Price and the Cash Purchase Price. No further payment by the Purchaser shall be required if optional cash settlement is used. |
| **Taxes:** | The Purchaser will pay all taxes, including without limitation, sales tax, value added tax, goods and services tax, commodity tax, transfer tax, duties or other charges of whatever nature imposed by any taxing or governmental authority under applicable law in respect of the sale and deliveries of Refined Silver pursuant to the Agreement in addition to the agreed Silver Purchase Price. If any payment by the Purchaser under the Agreement is subject to any deduction or withholding under applicable law, the amount of the payment will be increased so that after such deduction or withholding the Seller receives the same net after-tax amount the Seller would have received had no such deduction or withholding been required. The amount of any such tax, deduction or withholding will be paid by the Purchaser to the relevant taxing or governmental authority out of the Purchaser's own funds and will not reduce the balance of the Deposit except with the prior written agreement of the Seller. |
| **Term:** | The term of the Agreement shall commence on the Effective Date and shall continue until the earlier of (i) the date on which all Purchased Ounces have been delivered to the Purchasers; and (ii) the date that is 40 years after the Effective Date (the "**Initial Term**") and thereafter shall automatically be extended for successive 10 year periods (each an "**Additional Term**" and, together with the Initial Term, the "**Term**") unless there has been no material active mining operations or any exploration or development activities in relation to the Property during the last 10 years of the Initial Term or throughout such Additional Term, as applicable, in which case the Agreement shall terminate at the end of the Initial Term or such Additional Term, as applicable. Notwithstanding the foregoing, the Purchaser may terminate the Agreement as of the expiry of the Initial Term or current Additional Term, as applicable, by notice to the Seller within 10 business days prior to the date on which the then applicable Initial Term or Additional Term is to expire. |
|  | Notwithstanding the provisions on the Term, the Agreement may be terminated by the parties on mutual written agreement, by the Purchaser for a default by the Seller in accordance with the Purchaser's remedies for Seller's defaults or by the Seller for a Purchaser's default that is not cured within 30 days in accordance with the Seller's remedies for the Purchaser's defaults. |
|  | If by the expiry of the Term or earlier termination of the Agreement, the Seller has not sold and delivered to the Purchaser an amount of Refined Silver sufficient to reduce the Uncredited Balance to nil, then the Seller shall pay such Uncredited Balance to the Purchaser within 30 days after the expiry of the Term or the termination date, as the case may be, and shall provide a detailed calculation of the Uncredited Balance. |

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|:---|:---|
| **Property Interest/Security:** | The Deposit shall be secured with respect to the mining claims of the Seller that represent the Property (except the Patented Claims) (the "**Security**"). The Purchaser acknowledges and agrees that it will consent to intercreditor agreements providing for (i) the subordination of the Security to the security granted to a project lender in respect of a project financing; and (ii) such other matters as reasonably or customarily provided for in an intercreditor agreement of this nature. |
| **Non-Recourse:** | There will be no recourse for the Seller's obligations under the Agreements against any entity other than the Seller. |
| **Information & Reporting:** | Rights to quarterly and annual production reports and the right to receive reports of recovered silver amounts upon written request. |
| **Representations and Warranties:** | Customary corporate representations and warranties. |
| **Operational and Other Covenants:** | All decisions regarding the Property, including all decisions concerning the methods, extent, timing, procedures and techniques of any: (a) exploitation, exploration, expansion, development and mining related to the Property, including spending on capital expenditures and the incurrence of any other costs or expenses; (b) milling, processing, refining or extraction; (c) materials to be introduced on or to the Property; (d) sales of Minerals and terms thereof; and (d) any decision for the Commencement of Commercial Production on the Property or to place the Property on care and maintenance or to close the Property, shall be made by the Seller in its sole discretion; provided the Seller shall carry out and performs all mining operations and activities pertaining to or in respect of the Property in a commercially reasonable manner, and in compliance in all material respects with all Applicable Laws. |
|  | All Minerals that contain Reference Silver shall be sold or delivered pursuant to an Offtake Agreement on a prompt and timely basis. |
|  | All Offtake Agreements shall be on commercially reasonable arm's length terms and conditions for minerals similar in make-up and quality to Minerals, and shall include industry standard reporting and payment settlement protocols and provisions that require the delivery of Offtaker Settlement Sheets and appropriate and separate sampling and assaying so that the Seller and the applicable Offtaker, as applicable, can determine the grade and content of Reference Silver and other metals in each delivery to an Offtaker. |
|  | The Seller shall maintain insurance (including business interruption insurance) with reputable insurance companies of such types and in such amounts as is customary in the case of similar operations. |

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|:---|:---|
| **Commingling:** | The Seller may process Other Minerals through the processing facilities on the Property in priority to, or commingle Other Minerals with, Minerals, including the commingling of ore and blending of concentrates from other sources for delivery under Offtake Agreements, provided that (i) the Seller has adopted and employs commercially reasonable practices and procedures for weighing, determining moisture content, sampling and assaying and determining recovery factors (a "**Commingling Plan**") to ensure the division of Other Minerals and Minerals for the purpose of determining the quantum of Refined Silver to be delivered to the Purchaser, and (ii) the Seller keeps all books, records, data, information, assays and samples required by the Commingling Plan. |
| **Transfers, Reorganizations, Assignments:** | Covenants regarding transfers, reorganizations and assignments shall be included in the Agreements including that: |
|  | The Seller shall not sell, transfer, assign, convey, grant a right, title or interest or otherwise dispose of ("**Transfer**") the Property or its rights and/or obligations under the Agreement unless the Transferee agrees to be bound by and perform all of its obligations under the Agreement by an instrument in writing, provided that this shall not restrict (i) any grant of an Encumbrance on all or any portion of the Property; or (ii) any relinquishment, surrender or termination of all or any part of any of the mining rights or concessions constituting the Property if the Seller determines that the cost of maintaining such relinquished, surrendered or terminated mining rights or concessions is not justified. |
|  | The Purchaser shall not Transfer its rights and/or obligations under the Agreement without the prior written consent of the Seller and unless the Transferee assumes, by agreement with the Seller (in a form satisfactory to the Seller, acting reasonably), the obligations of the Purchaser under the Agreement. |
| **Default and Remedies:** | Provisions governing default and remedies including the provisions described in Appendix "C". |
| **Other Terms:** | Customary confidentiality provisions shall be included in the Agreements. |
|  | A mutually agreeable dispute mechanism based on arbitration shall be included in the Agreements. |
| **Conditions Precedent for funding the Deposit:** | None. Funding of the Deposit shall be made on the Effective Date. |
| **Costs and Expenses:** | Each party shall bear its own costs and expenses of the transaction. |
| **Governing Law:** | The Agreement shall be governed by and construed under the laws of the State of Idaho. |
| **Other:** | The terms in this Term Sheet are not intended to create any legally binding obligations of the parties until the Agreement is executed by the parties. Notwithstanding the foregoing, the parties have reviewed this Term Sheet and are prepared to enter into the Agreement on substantially the terms and conditions contained herein and will work in good faith to prepare and negotiate the Agreement with the intention of the parties entering into same by (date to be determined). |

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**APPENDIX "A"** 

 **<u>DEFINITIONS</u>**

"**Affiliate**" means, in relation to any person, any other person Controlling, Controlled by or under common Control with such first mentioned person, and where two persons are Affiliates of the same person they are deemed to be Affiliates of each other.

"**Applicable Laws**" means any international, national, federal, state, provincial, regional, municipal, territorial or local law, common law, statute, regulation, ordinance, code, order, by-laws and all international treaties and agreements or other requirement or rule of law or the rules, policies, orders, decisions, rulings or regulations, including any grant of approval, authorization, permission, permit, consent, authority or licence, of any Governmental Authority or stock exchange, including any judicial or administrative interpretation thereof, applicable to a person or any of its properties, assets, business or operations.

"**Commencement of Commercial Production**" means the date of the first sale of Minerals by the Seller as evidenced by an Offtaker Settlement

"**Control**" means the possession, directly or indirectly, of the right or power, to direct or cause the direction of the management or policies of the business or affairs of a person, whether through the ability to exercise voting power, by contract, voting trust or otherwise; and "**Controls**", "**Controlling**", "**Controlled by**" and "**under common Control with**" have corresponding meanings.

"**Date of Delivery**" means the date that Refined Silver is credited to the designated metal account of the Purchaser.

"**Effective Date**" means the date of execution of the Agreement.

"**Encumbrances**" means any and all mortgages, charges, assignments, hypothecs, deeds of trust, pledges, security interests, royalty interests, liens, rights of reservation, right of reclamation and other encumbrances and adverse claims of every nature and kind, whether registered or unregistered and whether arising under law or otherwise and whether perfected or otherwise.

"**Governmental Authority**" means any national, federal, state, provincial, regional, municipal, territorial or local government, agency, department, ministry, authority, board, bureau, tribunal, commission, official, court or securities commission, and any person entitled under Applicable Laws to exercise executive, legislative, judicial, regulatory or administrative functions of or pertaining to any of the foregoing entities, including all tribunals, commissions, boards, bureaus, arbitrators and arbitration panels, and any authority or other person controlled by any of the foregoing.

"**Minerals**" means any and all marketable metal bearing material in whatever form or state that is mined, produced, extracted or otherwise recovered from the Property, including any such material derived from any processing or reprocessing of any tailings, stockpiles, waste rock or other waste products originally derived from the Property (whenever originally extracted), and including ore and any other products requiring further milling, processing, smelting, refining or other beneficiation, including concentrates or doré bars.

"**Offtake Agreement**" means any agreement entered into by the Seller with any person for (i) the sale of Minerals to such person, or (ii) the smelting, refining or other beneficiation of Minerals by such person for the benefit of the Seller, as the same may be supplemented, amended, restated or superseded from time to time.

"**Offtaker**" means any person other than the Seller or its Affiliates that enters into an Offtake Agreement with the Seller.

"**Offtaker Charges**" means any refining charges, processing charges, treatment charges, penalties, insurance charges, transportation charges, settlement charges, financing charges or price participation charges, or other similar charges, penalties or deductions, regardless of whether such charges, penalties or deductions are expressed as a specific metal deduction, separate and apart from the recovery rate pursuant to the terms of the applicable Offtake Agreement.

"**Offtaker Delivery**" means the delivery of an Offtaker Parcel to an Offtaker or the transfer of the entitlement or benefit of an Offtaker Parcel to an Offtaker.

"**Offtaker Parcel**" means the applicable quantity of Minerals delivered or shipped or to be delivered or shipped to an Offtaker under a single shipment or delivery pursuant to the relevant Offtake Agreement.

"**Offtaker Settlement**" means (i) with respect to Minerals purchased by an Offtaker from the Seller, the receipt by the Seller of payment or other consideration from the Offtaker, whether provisional or final, including warehouse holding certificates; and (ii) with respect to Minerals refined, smelted or otherwise beneficiated by an Offtaker on behalf of the Seller, the receipt by the Seller of marketable silver in accordance with the applicable Offtake Agreement.

"**Offtaker Settlement Sheets**" means the final documents from the Offtaker (or if such final documents are not available in the case of provisional payment, the relevant documents on which provisional payments have been determined) evidencing the quantity of Minerals contained in each Offtaker Parcel and the purchase price payable by the Offtaker therefor and copies of all documents and information received from the Offtaker related to the Offtaker Delivery including the date of the Offtaker Settlement, sampling/assay information, umpire reports (if any), invoices and other settlement documents, unless the sharing of such information or documentation is restricted by applicable confidentiality restrictions or Applicable Laws.

"**Other Minerals**" means ores or other minerals mined, produced, extracted or otherwise recovered from properties that are not one of or do not constitute part of the Property."**Reference Silver**" means the number of ounces of silver contained in an Offtaker Parcel which have been sold and delivered to an Offtaker without giving effect to any Offtaker fees, charges and deductions applied by the Officer to such silver pursuant to the relevant Offtake Agreement.

"**Refined Silver**" means marketable metal bearing material in the form of silver bars or coins that is refined to standards meeting or exceeding 999 parts per 1,000 fine silver, and otherwise conforming to the London Bullion Market Association specifications for good delivery.

"**Silver Market Price**" means, with respect to any day, the daily per ounce LBMA Silver Price in U.S. dollars quoted by the London Bullion Market Association (currently administered by the ICE Benchmark Administration) for Refined Silver on such day or, if such day is not a trading day, the immediately preceding trading day; provided that, if the LBMA Silver Price is no longer quoted by the London Bullion Market Association, the Silver Market Price shall be determined by reference to the price of Refined Silver in the manner endorsed by the London Bullion Market Association, failing which the Silver Market Price will be determined by reference to the price of Refined Silver on a commodity exchange mutually acceptable to the Seller and the Purchaser, acting reasonably.

"**Uncredited Balance**" at any time means the uncredited balance of the Deposit that has been paid to the Seller determined in accordance with the Agreement.

**APPENDIX "B"** 

**<u>THE PROPERTY</u>**

*Full description of the property to be included at the time of the contract, as between the date of signing of the Indenture and the Triggering Event, the property will have changed, as more claims and interest are added over the next few years*.

**APPENDIX "C"**

**<u>DEFAULTS AND REMEDIES</u>**

**Seller Party Defaults** 

The Agreement shall include the following defaults:

(a) the Seller fails to deliver Refined Silver to the Purchaser on the terms and conditions
to be set forth in the Agreement and fails to cure such default within 20 Business Days after the Purchaser gives written notice;

(b) the Seller fails to prepare and deliver documentation to evidence the amount of Refined
Silver to be delivered by the Seller and fails to cure such default within 20 Business Days after the Purchaser gives written notice;

(c) a breach or default of any of the terms, conditions, covenants or obligations set
out above in the category "Transfers, Reorganizations, Assignments";

(d) a breach or default of any material terms, conditions, covenants or obligations (other
than as covered by (a), (b) and (c) above) in the Agreement in any material respect which is incapable of being cured or, if capable of
being cured, failure to cure within 20 Business Days after the Purchaser gives written notice;

(e) bankruptcy/insolvency of the Seller occurs;

Items (a), (b), (c) and (e) are each referred to as a "**Termination Default**". Item (d) is referred to as a "**Damages Default**".

**Purchaser Remedies for Termination Defaults** 

If a Termination Default occurs and is continuing, the Purchaser shall have the right upon, written notice to the Seller, at its option and in addition to and not in substitution for any other remedies available at law or equity**,** to take any or all of the following actions:

(a) to terminate the Agreement by written notice to Seller and demand immediate repayment
of any Uncredited Balance, if any, and Seller shall be obligated to repay to Purchaser the Uncredited Balance, if any; and

(b) demand delivery by Seller to Purchaser of any Refined Silver deliverable but not yet
delivered in accordance with the Agreement and Seller shall be obligated to deliver to Purchaser such Refined Silver.

**Purchaser Remedies for Damages Defaults** 

If a Damages Default occurs and is continuing, the Purchaser shall have the right, upon notice to the Seller, at its option and in addition to and not in substitution for any other remedies available at law or equity, to pursue a decision ordering specific performance or an injunction to cure the breach (where monetary damages would not be a sufficient remedy), in each case in accordance with the arbitration provisions in the Agreement.

**Purchaser Defaults** 

The Agreement shall include the following defaults:

(a) the Purchaser fails to pay for Refined Silver and fails to cure such default within
10 Business Days after the Seller gives written notice; and

(b) the Purchaser is in breach or default of any terms, conditions, covenants or obligations
(other than as covered by (a) above) in the Agreement in any material respect which is incapable of being cured or, if capable of being
cured, failure to cure within 20 days after the Seller gives written notice;

The foregoing are each referred to as a "**Purchaser Default**".

**Seller Remedies for Purchaser Defaults** 

In addition to the Seller's rights and remedies available to it at law or in equity, if a Purchaser Default described in (a) above occurs and is continuing, the Seller shall have the right, upon notice to the Purchaser, at its option, to suspend its delivery obligations; provided, however, that those obligations that existed prior to the date of such notice, and such other provisions of the Agreement as are required to give effect thereto, shall not be suspended. If the Purchaser cures the Purchaser Default in full within 30 days, then the Seller's obligations under the Agreement shall recommence as of the date the Purchaser cures the Purchaser Default in full, and the Seller shall not be obligated to sell or deliver any Refined Silver to the Purchaser in respect of any Offtaker Parcel delivered during such suspension. If the Purchaser fails to cure the Purchaser Default in full within 30 days then the Seller shall have the right at any time thereafter so long as the Purchaser has not already cured the Purchaser Default, to refund to the Purchaser any Uncredited Balance and thereupon all of the Seller's obligations under the Agreement shall thereafter be terminated without prejudice to any other right or remedy it may have against the Purchaser. If a Purchaser Default under (b) above has occurred and is continuing, then the Seller shall have no right to terminate the Agreement, but it shall be entitled to all other remedies available to it at law or in equity.

**SCHEDULE D** 

**FORM OF MORTGAGE** 

**RECORDING REQUESTED BY AND WHEN<br> RECORDED RETURN TO:** 

Albert P. Barker

Barker Rosholt & Simpson LLP

1010 W. Jefferson, Ste. 102

Boise, Idaho 83702

(space above this line for Recorders Use Only

**REAL PROPERTY MORTGAGE**

 **between**

**INTERNATIONAL CUMO MINING CORPORATION**

**as Mortgagor**

 **and**

**COMPUTERSHARE TRUST COMPANY OF CANADA**

**as Mortgagee**

**Dated as of July ___, 2021**

**THIS REAL PROPERTY MORTGAGE AGREEMENT** (herein sometimes called the "Mortgage") is made as of July ___, 2021, by and between **INTERNATIONAL CUMO MINING CORPORATION**, a corporation incorporated and existing under the laws of the State of Idaho, whose mailing address is P.O. Box 1623, Boise, ID 83701 (herein, together with its successors and assigns, the "Mortgagor"), and **COMPUTERSHARE TRUST COMPANY OF CANADA**, a trust company organized under the federal laws of Canada having an office in the City of Vancouver, in the Province of British Columbia, whose mailing address 510 Burrard Street, 3rd Floor, Vancouver, BC V6C 3B9, as trustee and mortgagee hereunder (herein, together with its successors and assigns, the "Mortgagee");

**<u>RECITALS AND DEFINITIONS</u>**

Mortgagor hereby represents, covenants and warrants to the Mortgagee, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** The Mortgagor owns or holds, certain Unpatented Mining Claims in Boise County, Idaho, as further described herein at **<u>Exhibit A</u>** incorporated herein by reference, which are collectively referred to herein as the "Claims;" subject only to the paramount title of the United States as to the Unpatented Mining Claims and the rights, if any, of third parties to the Lands within such Unpatented Mining Claims pursuant to the Multiple Mineral Development Act of 1954, the Surface Resources and Multiple Use Act of 1955 and the Federal Land Policy and Management Act of 1976. With respect to the Unpatented Mining Claims listed on the attached **<u>Exhibit A</u>**, except as subject to the paramount title of the United States and the statutory rights of third parties as described above, the Mortgagor is in exclusive possession thereof. Nothing herein shall be deemed a representation that any Unpatented Mining Claim contains a discovery of valuable minerals, or that Mortgagor has established or is maintaining *pedis possessio* rights with respect to any such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Mortgagor, for and in consideration of the indebtedness herein recited, and in order to secure repayment of such indebtedness, according the *Secured Note Indenture* ("*Note Note Indenture*") executed on or around July ___, 2021, and also the repayment of any and all other indebtedness now or as may hereafter become owing by the Mortgagor to the Mortgagee, acting solely in its capacity as trustee under the Note Indenture, does hereby irrevocably grant, bargain, sell, assign, transfer, convey and deliver unto the Mortgagee, the Mortgagee's successors and assigns, all of the Claims described in **<u>Exhibit A</u>**; and, the Mortgagor hereby releases and waives all rights under and by virtue of any homestead, estate, appraisement or exemption laws which may now exist or hereinafter be enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** Pursuant to the Note Indenture, a total of up to US$12,500,000 initial notes may be issued, and a total of $15,000,000 notes (including the initial notes) may be issued over time which notes shall be secured in favor of the Mortgagee pursuant hereto.

 **<u>GRANT</u>**

**NOW THEREFORE**, for and in consideration of the various agreements contained herein and in the *Note Indenture*, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the Mortgagor, and in order to secure the full, timely and proper payment and performance of each and every one of the Liabilities:

THE MORTGAGOR HEREBY MORTGAGES, CONVEYS, GRANTS, BARGAINS, SELLS, TRANSFERS AND ASSIGNS TO THE MORTGAGEE AND ITS SUCCESSORS AND ASSIGNS FOREVER, AND GRANTS TO THE MORTGAGEE A CONTINUING SECURITY INTEREST IN AND TO, ALL OF THE CLAIMS.

**TO HAVE AND TO HOLD** the Claims unto the Mortgagee and its successors and assigns forever, hereby expressly waiving and releasing any and all right, benefit, privilege, advantage or exemption under and by virtue of any and all statutes and laws of the State of Idaho providing for the exemption of homesteads from sale on execution or otherwise.

**SUBJECT, HOWEVER**, to (i) the condition that the Mortgagee shall not be liable in any respect for the performance of any covenant or obligation (including measures required to comply with any Environmental Laws) of the Mortgagor in respect of the Claims, and (ii) the Permitted Encumbrances.

**TO HAVE AND TO HOLD** the Claims unto the Mortgagee forever to secure the payment and performance in full and to secure the performance of all of the obligations of the Mortgagor herein contained.

**<u>COVENANTS AND AGREEMENTS OF MORTGAGOR</u>**

The Mortgagor agrees with the Mortgagee that, until the Liabilities have been paid and performed in full, it shall perform its obligations set forth in this below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Payment and Performance of Liabilities**. The Mortgagor will duly pay and perform its obligations hereunder and under and in connection with the *Note Indenture* to which it is a party, as and when required by their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Warrant and Defend Title**. The Mortgagor will warrant and forever defend its right, title and interest in and to the Claims unto the Mortgagee against every person whomsoever lawfully claiming the same or any part thereof and the Mortgagor will maintain and preserve the Lien hereby created.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Payment of Taxes and Fees**. The Mortgagor will pay and discharge, as the same may become due and payable, all taxes, assessments, fees and other governmental charges or levies against it or on any of its property, as well as claims of any kind or character; provided, however, that the foregoing shall not require the Mortgagor to pay or discharge any such tax assessment, fee, charge, levy or claim so long as it shall be diligently contesting the validity or amount thereof in good faith by appropriate proceedings and shall have set aside on its books adequate reserves in accordance with generally accepted accounting principles with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Maintenance of Claims and Payment of Leases**. To the extent not otherwise addressed herein, the Mortgagor covenants and agrees to timely pay all claim maintenance fees, to timely make all filings and recordings, including affidavits of payment, and to otherwise timely take all other necessary actions and pay such amounts relating to the preservation, maintenance, continuance and validity of these Claims as may be required by any federal, state or local governmental authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Access**. The Mortgagor will at all reasonable times and only as it relates to the Claims: permit access by the Mortgagee to its books and records, progress reports, sales records, offices, insurance policies and other papers for examination and the making of copies and extracts, at Mortgagor's expense; prepare such schedules, summaries, reports and progress schedules as may be requested, reasonable and customary; and permit the Mortgagee, through its employees, representatives and agents, to enter upon the Claims at any time, subject to appropriate safety training and procedures, for the purpose of investigating and inspecting the condition and operation, and do all other things necessary or proper to enable the Mortgagee to exercise this right upon reasonable notice at such times as the Mortgagee may reasonably request. For clarity, if Mortgagee or anyone on the behalf of either visits the site as part of an inspection, audit or otherwise, those representatives will participate in required training and adhere to all site safety and environmental rules and regulations during the course of the visit or work on site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Change in General Mining Law**. In the event of the repeal or modification of the current General Mining Law of 1872 during the term of this Mortgage, such that the interest of the Mortgagor in those lands which are material to the exploration, development or operation of the Lands is adversely affected, modified or transformed, the Mortgagor will use its best efforts to retain its interest in those Lands and will consult with the Mortgagee to determine how best to preserve the interest of the Mortgagor, and the Mortgagor shall take no action in relation thereto, which in the reasonable opinion of the Mortgagee or their counsel, could adversely affect or impair their interest in the Claims or under this Mortgage. An increase in the annual claim maintenance fee applicable to the Unpatented Mining Claims from time to time in accordance with the General Mining Law of 1872 and applicable regulations shall not constitute a modification of the General Mining Law of 1872.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Filings**. All recordings, filings and other actions (other than the recording and filing of this Mortgage and any financing statements or similar instruments relating hereto with all appropriate offices as described below) necessary and desirable to perfect and protect the Lien over the Claims have been duly made and taken. No effective deed of trust, mortgage, financing statement or other instrument similar in effect covering all or any part of the Claims is recorded or on file in any recording or filing office, except such as may have been expressly disclosed in writing to the Mortgagee. Immediately following the execution hereof, the Mortgagor shall cause this Mortgage and any financing statements or similar instruments relating hereto to be recorded and filed with all appropriate offices necessary and desirable to perfect and protect the Lien over the Claims and shall continue to do so over time as necessary to maintain the validity and enforceability of the Lien over the Claims.

**<u>ENFORCEMENT OF THE SECURITY</u>**

**Notice and Demand Upon Acceleration**. Upon the occurrence of Default, the Mortgagee, at its option, acting as directed by the Noteholders, may declare all obligations to be forthwith due and payable, with notice or demand as outlined herein and in accordance with the applicable provisions of the Note Indenture. Mortgagor shall have the right to cure any notice of default or demand in the manner set forth and as provided for in the Note Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Power of Sale of Real Property Constituting the Claims**. Mortgagor hereby grants to Mortgagee a power of sale to foreclose this Mortgage pursuant to Idaho law. Upon the occurrence of a Default, the Mortgagee, acting as directed by the Noteholders, shall have the right and power to sell, to the extent permitted by Idaho law, at one or more sales, as an entirety or in parcels, as it may elect, the real property constituting the Claims, at such place or places and otherwise in such manner and upon such notice as may be required, or, in the absence of any such requirement, as the Mortgagee, acting as directed by the Noteholders, may deem appropriate, and to make conveyance to the purchaser or purchasers; and the Mortgagor shall warrant title (to the extent, but subject to the exceptions, warranted to the Mortgagee herein) to such real property to such purchaser or purchasers. The Mortgagee, acting as directed by the Noteholders, may postpone the sale of all or any portion of such real property by public announcement at the time and place of such sale, and from time to time thereafter may further postpone such sale by public announcement made at the time of sale fixed by the preceding postponement, as allowed by Idaho law. The right of sale hereunder shall not be exhausted by one or any sale, and the Mortgagee, acting as directed by the Noteholders, may make other and successive sales until all of the Claims shall have been legally sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Judicial Proceedings**. Upon the occurrence of a Default, the Mortgagee, in lieu of or in addition to exercising any power of sale hereinabove given, acting as directed by the Noteholders, may proceed by a suit or suits in equity or at law, whether for a foreclosure hereunder, or for the sale of the Claims, or for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for the appointment of a receiver pending any foreclosure hereunder or the sale of the Claims, or for the enforcement of any other appropriate legal or equitable remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Possession of the Claims**. It shall not be necessary for the Mortgagee to have physically present or constructively in its possession at any sale held by the Mortgagee or by any court, receiver or public officer any or all of the Claims; and the Mortgagor shall deliver to the purchasers at such sale on the date of sale the Claims purchased by such purchasers at such sale, and if it should be impossible or impracticable for any of such purchasers to take actual delivery of the Claims, then the title and right of possession to the Claims shall pass to such purchaser at such sale as completely as if the same had been actually present and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Certain Aspects of a Sale**. The Mortgagee shall have the right to become the purchaser at any sale held by the Mortgagee or by any court, receiver or public officer, and the Mortgagee shall have the right to credit upon the amount of the bid made therefor the amount payable out of the net proceeds of such sale to it. Recitals contained in any conveyance made to any purchaser at any sale made hereunder shall conclusively establish the truth and accuracy of the matters therein stated, including nonpayment of the unpaid portion of, and the interest accrued thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Receipt to Purchaser**. Upon any sale, whether made under the power of sale herein granted and conferred or by virtue of judicial proceedings, the receipt of the Mortgagee, or of the officer making sale under judicial proceedings, shall be sufficient discharge to the purchaser or purchasers at any sale for his or their purchase money, and such purchaser or purchasers, or his or their assigns or personal representatives, shall not, after paying such purchase money and receiving such receipt of the Mortgagee or of such officer therefor, be obliged to see to the application of such purchase money, or be in anywise answerable for any loss, misapplication or nonapplication thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Effect of Sale**. Any sale or sales of the Claims, whether under the power of sale herein granted and conferred or by virtue of judicial proceedings, shall operate to divest all right, title, interest, claim and demand whatsoever either at law or in equity, of the Mortgagor of, in and to the Claims sold, and shall be a perpetual bar, both at law and in equity, against the Mortgagor, and the Mortgagor's successors or assigns, and against any and all persons claiming or who shall thereafter claim all or any of the property sold from, through or under the Mortgagor or the Mortgagor's successors or assigns. Nevertheless, the Mortgagor, if requested by the Mortgagee so to do, shall join in the execution and delivery of all proper conveyances, assignments and transfers of the properties so sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Application of Proceeds**. All proceeds received by the Mortgagee in respect of any sale of the Claims, or any part thereof, (whether granted and conferred herein, or by virtue of judicial proceeding) of, collection from, or other realization upon, all or any part of the Claims (after payment and satisfaction of all costs and expenses incurred by the Mortgagee in the performance of its rights or duties, and of any amounts payable pursuant to the *Note Indenture*) shall be applied to Mortgagor's obligations to Mortgagee under the *Note* Indenture.

**<u>ADDITIONAL TERMS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Indemnification**. If Mortgagee, acting as directed by the Noteholders, shall become a defendant, in any action, suit, appeal or legal proceeding (including, without limitation, foreclosure, condemnation, bankruptcy, administrative proceedings or any proceeding wherein proof of claim is by law required to be filed), hearing, motion or application before any court or administrative body in relation to the Claims or the lien and security interest granted or created hereby or herein, or for the recovery or protection of said indebtedness or the Claims, or for the foreclosure of this Mortgage, Mortgagor shall save and hold Mortgagee harmless from and against any and all costs and expenses incurred by Mortgagee on account thereof, including, but not limited to reasonable attorney's fees, title searches and abstract and survey charges, at all trial and appellate levels, and Mortgagor shall repay, on demand, all such costs and expenses, together with interest thereon until paid at the applicable rate of interest of the Note; all of which sums, if unpaid, shall be added to and become part of the indebtedness secured hereby. For clarity, Mortgagee shall not have any obligation to commence or institute any actions or proceeding hereunder whatsoever until it has been reasonably funded to do so by Mortgagor or by the Noteholders, as applicable, in accordance with the Note Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Notice**. All notices or other written communications hereunder shall be deemed to have been properly given (a) upon delivery, if delivered in person or by facsimile transmission with receipt acknowledged by the recipient thereof, (b) one (1) business day after having been deposited for overnight delivery with any reputable overnight courier service, or (c) three (3) business days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

---

| | |
|:---|:---|
| If to Mortgagee: | General Manager, Corporate Trust |
|  | Computershare Trust Company of Canada |
|  | 510 Burrard Street, 3rd Floor |
|  | Vancouver BC V6C 3B9 |
|  | Canada |
| If to Mortgagor: | Shaun Dykes |
|  | International CuMo Mining Corporation |
|  | Suite 301 - 455 Granville St. |
|  | Vancouver, BC V6C 1T1. |
| With a copy to: | Albert Barker |
|  | Barker Rosholt & Simpson LLP |
|  | 1010 W. Jefferson, Suite 102 |
|  | Boise, ID 83702 |

---

or addressed as such party may from time to time designate by written notice to the other parties. Either party by written notice to the other may designate additional or different addresses for subsequent notices or communications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Governing Law**. This Mortgage and any instruments executed in connection herewith shall be construed and governed by and in accordance with the laws of the State of Idaho.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Provisions Subject to Applicable Law**. All rights, powers and remedies provided in this Mortgage may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of law and are intended to be limited to the extent necessary so that they will not render this Mortgage invalid, unenforceable or not entitled to be recorded, registered or filed under the provisions of any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Inapplicable Provision**. If any term of this Mortgage or any application thereof shall be invalid or unenforceable, the remainder of this Mortgage and any other application of the term shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Attorney's Fees for Enforcement**. The prevailing party shall have the right to collect from the other party its reasonable costs and necessary disbursements and attorneys' fees incurred in enforcing this Agreement, whether or not any legal proceeding is commenced hereunder or thereunder and whether or not any default shall have occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Modifications**. This Mortgage cannot be changed, altered, amended or modified except by an agreement in writing and in recordable form, executed by both Mortgagor and Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Captions**. The captions set forth at the beginning of the various sections of this Mortgage are for convenience only and shall not be used to interpret or construe the provisions of this Mortgage**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Liability**. If Mortgagor consists of more than one person, the obligations and liabilities of each such person hereunder shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Duplicate Originals; Counterparts**. This Mortgage may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original. This Mortgage may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Mortgage. The failure of any party hereto to execute this Mortgage, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Entire Agreement**. The Note, this Mortgage and the other *Secured Note* constitute the entire understanding and agreement between Mortgagor and Mortgagee with respect to the transactions arising in connection with the Secured Obligations and supersede all prior written or oral understandings and agreements between Mortgagor and Mortgagee with respect thereto. The Recitals above are further incorporated into this underlying agreement.

WITNESS the hand of the undersigned Mortgagor, International Cumo Mining Corporation, has executed this Mortgage as of the date first written above.

---

| |
|:---|
| Mortgagor: |
| **Name** |

---

PROVINCE OF BRITISH COLUMBIA, CANADA

On this ____ day of ____________________. 2021, before me, the undersigned, a Notary Public in and for said province, personally appeared _____________________________, known or identified to me to be the person whose name is subscribe to the within instrument and acknowledged to me he executed the same in his authorized capacity and that by his signature on the instrument the person or the entity upon which the person acted, executed the instrument.

WITNESS My hand and seal the day and year in this certificate first above written.

---

| |
|:---|
| Notary Public for British Columbia |
| Residing at |

---

Commission expires:  

**SCHEDULE E** 

**APPROVED BANKS** 

---

| | |
|:---|:---|
| **Bank** | **Relevant S&P Issuer Credit Rating<br> (as at May 3<sup>rd</sup>, 2021)** |
| Bank of America NA | A+ |
| Bank of Montreal | A+ |
| The Bank of Nova Scotia | A+ |
| Bank of Tokyo-Mitsubishi UFJ | A |
| BMO Harris Bank | A+ |
| BNP Paribas | A+ |
| Canadian Imperial Bank of Commerce | A+ |
| Citibank NA | A+ |
| National Australia Bank Limited | AA- |
| Santander UK Plc | A |
| Societe Generale | A |

---

## Exhibit 10.1

**Exhibit 10.1**

**INTERNATIONAL CUMO MINING CORPORATION<br> <u>INCENTIVE STOCK OPTION AGREEMENT DATED SEPTEMBER 30, 2022</u>**

This incentive stock option agreement (the "Agreement") is entered into this 30<sup>th</sup> day of September, 2022 by and between International Cumo Mining Corporation ("the Company"), an Idaho corporation, and[_____] (the "Optionee").

**WHEREAS**, the optionee is an employee of the Company.

**WHEREAS,** the Company wishes to grant Optionee stock options which vest upon the achievement by the Company of certain hereinafter set forth milestones as a means to both further compensate the Optionees for his services to the Company and to more closely align the Optionee's interests to those of the Company's non-affiliated shareholders.

**NOW THEREFORE,** in consideration of the mutual covenants and promises hereafter set forth and for other good and valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Incentive Stock Options.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The company grants to Optionee, as additional compensation for his services, an option (the "Option") to purchase up to an aggregate of [_____] shares of the company's common stock ("Common Stock"), which shall be subject to vesting based upon the achievement of milestones set forth in Section 2 below. The option is intended to be an Incentive Stock Option as defined by the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Optionee acknowledges his understanding that the continuation of his employment with the Company and the devotion of substantial time and effort to the business of the Company is a material consideration in the determination by the Board of Directors to grant the Optionee the Option. In consideration of the grant of the Option by the Company, the Optionee agrees to render faithful and efficient services to the Company. Nothing in this Agreement shall confer upon the Optionee any right to continue in the employ or service of the Company or shall interfere with or restrict in any way the rights of the Company, which rights are hereby expressly reserved, to discharge or terminate the services of the Optionee at any time for any reason whatsoever, except to the extent expressly provided otherwise in a written agreement between the Company and the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Vesting of the Option.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting Milestones</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u> The Option shall vest as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) 20%, or the right to purchase [_____] shares of Common Stock, shall vest immediately upon signature of this Incentive Stock Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) 20%, or the right to purchase [_____] shares of Common Stock, shall vest upon completion of a reverse merger with a US company trading on the US OTC stock market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) 20%, or the right to purchase[_____] shares of Common Stock, shall vest upon the issuance by the company of a revised Preliminary Economic Assessment ("PEA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) 20%, or the right to purchase [_____] shares of Common Stock, shall vest upon the Company's receipt of official notice of listing of its Common Stock to the NASDAQ or NYSE American stock exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) 20%, or the right to purchase [_____] shares of Common Stock, shall vest upon the company raising a minimum of $5,000,000 of investment capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercisability of the Option</u>. The Option may only be exercised to the extent that such Option shall have become vested and exercisable. The conditions to vesting set forth in Sections 2(a) and 2(b) hereof require continued employment of the Optionee by the Company through each applicable vesting date as a condition to the vesting of the applicable portion of the Option. Regardless of the reason(s) for termination of the Optionee's employment or services, employment or services for only a portion of the vesting period, even if a substantial portion, will not entitle the Optionee to any proportionate vesting or avoid or mitigate a termination of rights and benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Exercise Period; Exercise Price; Cashless Exercise.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Exercise Period.</u> Once vested, that portion of the Option will be exercisable by the Optionee at any time before December 31, 2027 (the "Exercise Period"). If not exercised by the Optionee during the Exercise Period, any vested portion of the Option will lapse and no longer be exercisable by the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price.</u> The initial exercise price of the Option shall be $.125 per share of Common Stock. Such price shall be subject to adjustment pursuant to the circumstances described in Section 4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Method of Exercise.</u> In order to exercise the vested portion of the Option, the Optionee must deliver the Notice of Exercise attached hereto as <u>Annex I,</u> duly completed and executed by the Optionee, to the Company at the principal executive offices of the Company, together with payment in the amount obtained by multiplying the Exercises Price then in effect by the number of shares of Common Stock thereby purchased, as designated in the Notice of Exercise. Payment may be in cash, wire transfer or by check payable to the order of the Company in immediately available funds. The Option is only exercisable for a whole number of shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise.</u> In lieu of exercising the vested portion of the Option for cash, the Optionee may elect to receive shares of Common Stock equal to the value (as determined below) of the exercised portion of the Option (the "Cashless Exercise") with the properly endorsed Notice of Exercise with the Cashless Exercise election, in which event the Company shall issue to the Optionee that number of shares of Common Stock determined according to the following formula:

---

| | |
|:---|:---|
|  | Y (A-B) |
| X = | ![](ex10-37_001.jpg)![](ex10-37_001.jpg) |
|  | A |

---

---

| | |
|:---|:---|
| Where | **X** = the number of shares of Common Stock to be issued to the Optionee **Y** = the number of shares of Common Stock for which the vested portion of the Option is being exercised |
|  | **A** = the average of the closing sale price as reported on the principal market for the Company's Common Stock for the five (5) trading days immediately prior to (but not including) the exercise date of the Option |
|  | **C** = Exercise Price |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Conditions to Issuance of Stock Certificates.</u> The shares of Common Stock deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares of Common Stock, treasury shares, or issued shares of Common Stock which have then been reacquired by the Company. Such shares of Common Stock shall be fully paid and nonassessable when issued in accordance with the terms of the Agreement. The Company shall not be required to issue or deliver any certificates or make any book entries evidencing shares of Common Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of the conditions set forth in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Restricted Securities.</u> The shares of Common Stock purchasable upon the exercise of the Option will constitute "restricted securities" under the federal securities laws inasmuch as they will be acquired from the Company in transactions not involving a public offering and, accordingly, may not, under such laws and applicable regulations, be resold or transferred without registration under the Securities Act of 1933, as amended (the "Securities Act"), or an applicable exemption from such registration. The certificates representing the shares of Common Stock issuable upon the exercise of the Option shall bear an appropriate securities legend to the foregoing effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Adjustment of the Exercise Price and Number of Shares.</u>** If the Company shall at any time while the option is outstanding subdivide its outstanding Common Stock, by split or otherwise, or combine its outstanding Common Stock, the number of shares of Common Stock as to which the Option is exercisable as of the date of such subdivision, split, reverse split, or combination shall forthwith be proportionately increased in the case of a split, or proportionately decreased in the case of a reverse split. Appropriate adjustments shall also be made to the Exercise Price, but the aggregate purchase payable for the total number of shares of Common Stock purchasable under the Option shall remain the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Rights as a Shareholder.</u>** The Optionee shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of any shares of Common Stock purchasable upon the exercise of any part of the Option unless and until such shares shall have been issued by the Company to the Optionee (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Certain Optionee Obligations.</u>** The Optionee is not relying on the Company or any of its employees or agents with respect to the legal, tax, economic and related considerations of this Agreement or the Option, and the Optionee has relied on the advice of, or has consulted with, only its own accountants, attorneys and advisors. The Optionee is ultimately liable and responsible for all taxes owed in connection with the Option, regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection with the Option. The Company does not make any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or exercise of the Option or the subsequent sale of Common Stock upon the exercise of the Option. The Company does not commit and is under no obligation to structure the Option to reduce or eliminate the Optionee's tax liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Restrictions on Transfer of Option.</u>** This Agreement and Option shall not be transferable by the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Incapacity.</u>** If the Optionee should die or become incapacitated prior to the expiration of the Option, the Optionee's legal representatives may, within one year from Optionee's death or incapacity, and prior to the expiration of the Option, exercise that portion of the Option which remain outstanding, after which time the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Reservation of Shares.</u>** With respect to the Option, the Company hereby agrees to at all times reserve for issuance and/or delivery upon payment by the Optionee of the Exercise Price, such number of shares of Common Stock as shall be required for issuance and/or delivery upon such payment pursuant to the Option.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Miscellaneous.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment.</u> The company may amend this Agreement at any time and from time to time; <u>provided, however,</u> that no amendment of this Agreement would materially or adversely impair the Optionee's rights or entitlements with respect to the Option shall be effective without prior written consent of the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Severability.</u> In the event any parts of the Agreement are found to be void, the remaining provisions of the Agreement shall nevertheless be binding with the same effect as though the void parts were deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Arbitration.</u> Any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in Ada County, Boise, Idaho (unless the parties agree in writing to a different location), before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect. The decision and award made by the arbitrator shall be final, binding, and conclusive on all parties hereto for all purposes, and judgement may be entered thereon in any court having appropriate jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Benefit.</u> This Agreement shall be binding upon and inure to the benefit or the parties hereto and their legal representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notices and Addresses.</u> All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile (if provided), during normal business hours of the recipient, and if not sent during normal business hours, then on the recipients next business day, (c) five (5) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next day delivery, with written verification of receipt. All communications sent to the Company shall be sent to: Robert Scannell, 155 Jamaica St, Tiburon, CA 94920 to the attention of the Board of Directors. Upon receipt of any communications delivered to the Board of Directors, the Optionee shall immediately deliver such communications to the independent members of the Board of Directors via email to the addresses regularly used for communications to such independent directors. All communications to the Optionee shall be sent to the Optionee's address as set forth in the books and records of the Company, or to such e-mail address, facsimile number (if any) or address as subsequently modified by written notice given in accordance with this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Attorney's Fees.</u> In the event that there is any controversy or claim arising out of or relating to the Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of the Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Governing Law.</u> The Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution, its validity, the obligations provided herein or performance shall be governed or interpreted according to the laws of the State of Idaho without regard to choice of law considerations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Entire Agreement.</u> This agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual or facsimile signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Section or Paragraph Headings.</u> Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any manner, or be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Stop Transfer Orders.</u> The Optionee agrees that, in order to ensure compliance with the restrictions set forth in this Agreement, the Company may issue appropriate "stop transfer" instructions to its duly authorized transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. The Company shall not be required (I) to transfer on its books any shares of the Company's Common Stock that have been sold or otherwise transferred in violation of this Agreement or (ii) to treat the owner of such shares of Common Stock or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such shares of Common Stock shall have been so transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Conformity to Securities Laws.</u> The Optionee acknowledges that this Agreement is intended to conform to the extent necessary with all provisions of the Securities Act and the Securities Exchange Act of 1934, as amended, and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Agreement shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations.

**IN WITNESS WHEREOF,** the parties have executed this Agreement as of the day and date first written above.

---

| | |
|:---|:---|
| Optionee: | International Cumo Mining Corporation |
|  | By: |
| Name | Robert Scannell, Chief Financial Officer |

---

**NOTICE OF EXERCISE**

To: International Cumo Mining Corporation

1. The undersigned Optionee hereby elects to purchase _________________ shares of Common Stock of International Cumo Mining Corporation, an Idaho corporation (the "Company"), pursuant to the terms of the Incentive Stock Option Agreement dated September 30, 2022 by and between the Company and Optionee (the "Agreement"). All terms not otherwise defined herein shall have the same meaning as in the Agreement.

2. The Optionee shall make payment of the Exercise Price as follows (check one):

_______"Cash Exercise"

_______"Cashless Exercise"

If the Optionee is making a Cash Excercise, the Optionee is hereby delivering the sum of $<u>_________________</u>, in lawful money of the United States, to the Company in accordance with the terms of the Agreement.

If the Optionee is making a Cashless Exercise, the Company shall deliver to the Optionee _________________shares of Common Stock in accordance with the terms of the Agreement, which such amount is subject to verification by the Company.

**IN WITNESS WHEREOF,** the Optionee has executed this Notice of Extension as of the <u>_______</u> day of _________________, _________________.

## Exhibit 10.2

**Exhibit 10.2**

EXECUTION VERSION

**<u>DEBT ASSIGNMENT AND RELEASE AGREEMENT</u>**

THIS DEBT ASSIGNMENT AND RELEASE AGREEMENT (the "<u>Agreement"</u>) is entered into and effective as of December 15, 2022 (the "<u>Effective Date</u>") by and between Joway Health Industries Group Inc., a Nevada corporation ("<u>Assignor</u>") and JHP Holdings, Inc., a Nevada corporation ("<u>Assignee</u>").

WHEREAS, Assignor was advanced monies in the amount set forth on <u>Schedule A</u> attached hereto (the "<u>Outstanding Debt</u>") by its legal services provider, Crone Law Group, PC ("<u>CLG</u>"); and

WHEREAS, Assignee is currently the majority stockholder of Assignor, and in connection with the transactions contemplated by that certain Share Exchange Agreement (the "<u>Share Exchange Agreement</u>") to be entered into by and among International CuMo Mining Corporation ("<u>ICUMO</u>"), the shareholders of ICUMO and Assignor, Assignor wishes to assign all of its rights and obligations with respect to the Outstanding Debt to Assignee (the "<u>Assignment</u>"), and Assignee wishes to accept such rights and obligations, as set forth below.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Assignment</u>. Assignor hereby irrevocably sells, transfers, and assigns to Assignee, and Assignee hereby accepts such transfer and assignment as of the Effective Date, all of Assignor's rights and obligations with respect to the Outstanding Debt. Hereafter, Assignor disclaims any further interest in, or obligations under, the Outstanding Debt. In connection with this assignment, Assignor represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Outstanding Debt constitutes all of the liabilities owed by Assignor to CLG; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) CLG is the sole party to whom Assignor owes the Outstanding Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Assignor has the right, power, and authority to execute this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) No promissory note was issued pursuant to the Outstanding Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Release</u>. The execution and delivery of this Agreement, by operation thereof and without any further action on the part of the parties hereto, shall effect a release and discharge by CLG and its affiliates and past, present and future officers, directors, shareholders, employees, agents, successors and assigns from all manner of action, cause and causes of action, suits, debts, sums of money, accounts, covenants, controversies, agreements, promises, damages, judgments, executions, costs, expenses, rights, claims or demands whatsoever, at law or in equity, existing at the date thereof, at any time before the date thereof, or thereafter arising, both anticipated and unanticipated, known and unknown, contingent and non-contingent, liquidated and non-liquidated, that CLG has had, now has, then has or may have against Assignor or its past, present or future officers, directors, shareholders, employees, agents, successors or assigns by reason of any cause or thing, arising or to arise, out of the Outstanding Debt and any and all agreements or other arrangements, written or oral, concerning the Outstanding Debt. Said release shall be effective as of the Effective Date; *provided, however* that this release and discharge does not apply to the Assignee in any manner, including in relation to its status as a past, present, or future shareholder of the Assignor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Conditions</u>. This Agreement is conditioned upon the issuance of the shares by Assignor to the shareholders of ICUMO as contemplated by the Share Exchange Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Entire Agreement</u>. This Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings between the parties relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Assignment shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts of law thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Further Assurances</u>. Each party will execute and deliver such further agreements, documents and instruments and take such further action as may be reasonably requested by the other party to carry out the provisions and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective successors and assigns. This Agreement may not be assigned without the consent of the other parties hereto.

*[Signature Page Follows]*

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **ASSIGNOR:** | **ASSIGNOR:** |
| **Joway Health Industries Group Inc.** | **Joway Health Industries Group Inc.** |
| /s/ Ramon Lata | /s/ Ramon Lata |
| Name: | Ramon Lata |
| Title: | President |
| **ASSIGNEE:** | **ASSIGNEE:** |
| **JHP Holdings, Inc.** | **JHP Holdings, Inc.** |
| By: | /s/ Ramon Lata |
| Name: | Ramon Lata |
| Title: | President |

---

By execution and delivery of this Agreement, Crone Law Group, PC agrees and acknowledges that as of the Effective Date, the release set forth in Section 2 shall be effective and the Outstanding Debt shall be due and payable from JHP Holdings, Inc.

---

| | |
|:---|:---|
| **Crone Law Group, PC** | **Crone Law Group, PC** |
| By: | /s/ Mark Crone |
| Name: | Mark E. Crone |
| Title: | Principal |

---

*[Signature Page to Debt Assignment and Release Agreement]*

## Exhibit 10.3

**Exhibit 10.3**

**OPTION TO PURCHASE AGREEMENT**

THIS OPTION TO PURCHASE AGREEMENT is made effective this 13<sup>th</sup> Day of October, *2004.* 

CUMO MOLYBDENUM MINING INC.

A Nevada Corporation with an office at 608 Front Street, P.O. Box 408, Mina, Nevada 89442 (hereinafter referred to as "Optionor") does hereby OPTION AND GRANT unto

MOSQUITO CONSOLIDATED GOLD MINES LIMITED

A British Columbia Corporation with an office at 301-455 Granville St., Vancouver, B.c. V6C 1 Tl (hereafter referred to as "Optionee")

1. An Option to explore, mine and process minerals from the New CUMO Mining Claims described in the attached Exhibit "A" (hereinafter referred to as the "Property").

WHEREAS:

A. CUMO Molybdenum Mining, Inc. owns certain un-patented mining claims situated in Boise County, Idaho, more particularly described in Exhibit A attached hereto and by this reference made a part hereof and hereafter referred to as the "Property".

B. Optionor and Optionee desire to enter into an Agreement pursuant to which the Optionor shall grant to the Optionee an Option to Purchase the Property, on the terms and conditions as herein set forth.

NOW, THEREFORE, in consideration of their mutual agreements and obligations hereinafter set forth, the parties agree as follows:

1. Definitions. The following defined words wherever used in this agreement, shall have the meaning described below:

1.1 "Commercial Production" shall mean the extraction, processing or handling of Products removed from the Property.

1.2 "Effective Date" shall mean the date first above set forth.

1.3 "Option Year" shall mean One (1) year period following the Effective Date and each anniversary of the Effective Date.

1.4 "Optionor" shall mean CUMO Molybdenum Mining Inc. and their successors and assigns.

1.5 "Optionee" shall mean Mosquito Consolidated Gold Mines Ltd. and their successors and assigns.

1.6 "Products" shall mean copper, molybdenum, silver, gold or other ores, minerals or metals mined and processed from the Property.

1.7 "Royalty" shall mean the amount owed and payable to the Optionor from Commercial Production from the Property.

2.0 GRANT OF MINING PRIVILEGE, OPTION AND USE.

2.1 GENERAL: Optionor and Optionee enter into this Option Agreement (hereinafter referred to as the Agreement) for the purposes hereinafter mentioned, and they agree that all their rights and all of the operations on or in connection with the Property shall be subject to and governed by this Agreement.

2.2 GRANT OF MINING PRIVILEGE: Subject to the terms and conditions of this Agreement and to the extent permitted by applicable federal, state and local laws, regulations and ordinances, Optionor grants exclusively to Optionee the right to enter upon the Property for the purpose of exploring for, developing and processing Products from the Property. Optionee may perform such drilling, blasting, bulldozing, stockpiling and testing and other work on said mining Property as may be necessary to explore and develop the Property. Optionee has the privilege, at their election to construct buildings and to install and operate crushing and processing equipment in support of any operation.

2.3 REPRESENTATIONS: The Optionor represents, warrants and covenants to and with the Optionee that:

a. it is a company duly incorporated, validly subsisting, and in good standing under the laws of the State of Nevada;

b. it has full power and authority to enter into and carry out this Agreement and the signing, delivery and performance of this Agreement will not conflict with any other Agreement.

c. it is the registered and beneficial owner of the Property and has good title to the Property, free and clear of any liens and encumbrances and is not subject to any right, claim or interest of any other persons.

d. the Property is accurately described in Exhibit A and the Property is in good standing under Idaho and Federal law.

e. It has made all taxes, assessments, rentals, levies or other payments relating to the Property required to be made to any federal, state, or local governmental agency.

f. It has not received from any government agency any notice relating to any actual or alleged environmental claims, and so far as the Optionor is aware, there are no outstanding work orders or actions required to be taken relating to environmental matters respecting the Property.

g. So far as the Optionor is aware, there is no adverse claims or challenges against as to the ownership of or title to the Property, nor is there any basis for any adverse claim or challenge, and there are no outstanding agreements, to acquire, purchase or explore the Property, and no other person has any royalty or interest in production or profit from the Property or any portion of the Property, other than to Optionor, and

h. It will make available to the Optionee all information in its possession or control relating to exploration work done on or regarding the property.

3.0 RELATIONSHIP OF THE PARTIES.

3.1 NO PARTNERSHIP: This lease agreement shall not be to constitute any party, in its capacity as such, the partner, agent or legal representative of any party, or to create any partnership, mining partnership or other partnership relationship, or fiduciary relationship between them, for any purpose whatsoever.

4.0 TERM: Unless terminated earlier, as herein provided, the term of this Option shall be for so long as the Option Agreement is in effect and good standing.

5.0 PAYMENTS: In consideration of the granting of the privileges aforesaid, Optionee has agreed and herein agrees, during the continuance in effect of this Option, to pay to the Optionor the following sums of money and shares on or before the dates specified:

5.1 MINIMUM ADVANCED ROYALTY AND STOCK PAYMENTS:

a. On signing. $10,000 USD

b. After 60 days, $10,000 USD

c. After 6 months, $5000 USD.

d. 1st Anniversary, $20,000 USD.

e. 2nd Anniversary, $20,000 USD.

f. 3rd Anniversary, $15,000 USD

g. $15,000 USD every 6 months thereafter for so long as Option is in effect.

All of the above payments, except for the shares, are to be considered as Minimum Advanced Royalty Payments to be credited against any Royalty payments owed to Optionor in the future.

5.2 SHARE PAYMENTS

The Optionee shall issue 300,000 common shares of Mosquito Consolidated Gold Mines Limited to the Optionor as follows:

a. After 60 days, 90,000 shares of Mosquito Consolidated Gold
Mines Limited.

b. After 9 months, 90,000 shares of Mosquito Consolidated Gold
Mines Limited.

c. After 18 months, 120,000 shares, of Mosquito Consolidated
Gold Mines Limited.

This agreement and the issuance of shares are subject to the approval of the TSX-Venture Exchange.

5.3 NET SMELTER RETURN ROYALTY (NSR): The Optionee shall pay a Net Smelter Return Royalty (NSR) of 1.5% (one & one-half percent) to a maximum of $3,000,000.00 and thereafter a 0.5% (one-half percent) NSR payable for so long as the Option is in effect.

For the purpose of this agreement, a net smelter return royalty (NSR) shall mean the total gross sale proceeds received by or credited to the Optionee for Products less only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All actual costs incurred by the Optionee for transportation of the Products to a point of
sale including insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All sampling, assaying, weighing, treatment or processing, milling, smelter or refining charges or penalties
which are charged by the purchaser to the Optionee except those deducted by the purchaser directly from the proceeds of sale; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All taxes levied upon production or severance of the products, or upon which the sale the net smelter
is computed.

Any payments received by the Optionor payable under paragraph 5.1 will be credited and deducted from any advance royalty payments due for so long as the Option is in effect.

5.4 METHOD OF PAYMENT OF ROYALTY: All Royalty payments made by Optionee to Optionor shall be due and payable every 60 days by wire transfer, cashiers check, money order or by cash to Optionor representative in person or by delivery to Optionor address for notice purposes. Optionee shall be obligated to deliver only a single check or payment, and Optionee shall have no responsibility for disbursement or distribution of any payment after receipt of payment by the payee. Optionee shall deliver to Optionor a statement showing the amount of production Royalty due and the manner in which it was determined and shall submit to Optionor data reasonably necessary to enable Optionor to verify the determination.

5.4 AUDIT: Optionor or its authorized agents shall have the right to audit and inspect Optionee accounting records used in calculating production royalty payments, which may be exercised as to each payment at any reasonable time during a period of one (1) year from the date on which payment was made by lessee. If no such audit is performed during such period, such accounts, records and payment shall be conclusively deemed to be true, accurate and correct.

6.0 COMPLIANCE WITH THE LAW: The exercise by Optionee of any of any rights, privileges, grants and uses under this Agreement shall conform at all times with the applicable laws and regulations of the state in which the Property is situated and those of the USA. Optionee shall be fully responsible for compliance with all applicable federal, state and local reclamation, statutes, regulations and ordinances relating to such work. Optionee shall indemnify and hold harmless Optionor from any claims, assessments, fines and actions arising from Optionee failure to perform the foregoing obligations. Optionor agrees to cooperate with Optionee in Optionee application for governmental licenses, permits and approvals, the cost of all of which shall be borne by Optionee.") ,

7.0 MINING AND PROCESSING PRACTICES: The Optionee shall carry out all mining and processing operations in a good, workman and miner like manner according to the rules and customs of good and economic mining and processing and in compliance with all state, federal and local safety rules and regulations. Optionee will comply with all Local, State and Federal environmental laws and regulations during mining and reclamation activities on the Property and obtain all necessary permits pertaining to these activities.

7.1 KEEPING PROPERTY IN GOOD STANDING AND FREE FROM LIENS, ETC: The Optionee shall file Notice of Intent to Hold Claims with the Boise County Recorder by August 1 of any year and pay Annual Rental Fees (now $125 per year per claim) to the BLM by August 15 of any year. The Optionee shall promptly pay and discharge all liens, claims and demands of laborers and material men, who may be employed by Optionee on or about the mining premises in transporting and handling rock products from the said mining premises and in connection with mining and processing operations by them conducted thereon, to the end and purpose that said premises shall be kept free and clear of claims and demands of laborer, material men and others who may be employed thereon, or furnish material or fuel thereon. Optionee further agree that the Optionor may, at their option, post or cause to be posted upon the premises one or more notice of non-responsibility in the manner and form prescribed by law, to the end that such notices of non-responsibility, with proof of posting, may be recorded by Optionor.

7.2 INSURANCE: Optionee shall keep in full force and effect, at his sole cost and expense, Workman's Compensation Insurance for protection of all employees, workmen, sub-contractors and other laborers engaged by him in, on or about the mining premises and/or in connection with work, mining and transportation and processing all rock and rock products thereon and there from, and that he will further comply with all laws, rules and regulations of governmental authority relating to or applicable to operations conducted on the demised property. Optionee shall carry a liability policy of at least one million ($1,000,000) US dollars to cover all phases of operations on the premises.

7.3 TAXES: Optionee shall, during the continuance in effect of this Option Agreement, pay all local, state and federal taxes and county assessments on improvements and equipment which may be levied, assessed or charged against or for the benefit of the mining operation and premises which are the subject hereof, and for material extracted or removed from the premises. Optionor shall pay their taxes on income from Property.

7.4 CROSS MINING: Optionee is granted the right to mine and remove Products from the Property through or by all means of shafts, openings or pits which may be in or upon adjoining lands owned or controlled by Optionee. Optionee may use the Property and any shafts, openings or pits on the Property for the mining, removal, treatment and transportation of ores or Products from adjoining lands, or for any purpose connected with such activities. Optionee shall have the right to treat or process, in any manner, any Products mined or produced from the Property and from such lands. Such treatment may be conducted wholly or in part at facilities established or maintained on the Property or on other lands. The tailings or residue from such treatment shall be deemed waste and may be deposited on the property on the Property or on other lands and Optionee shall*'* have no obligation to remove such waste from the Property nor return to the Property waste resulting from the processing of Products from the Property.

8.0 WORK REQUIREMENT: Optionee will perform at least $25,000 worth of work on the "Property" during the first year and at least $50,000 worth of work on the property each year thereafter for so long as the Option is in effect. The dollar value of production Royalty paid can be counted as "work". All monies expended may be credited towards future years.

9.0 DEFAULT BY OPTIONEE AND SUBSEQUENT /TERMINATION BY OPTIONOR: In the event of any default or failure by Optionee to comply with any of the covenants, terms or conditions of this Agreement, Optioric>r shall give written notice by certified mail of said default, specifying details of same. If such default by Optionee is not remedied within Thirty (30) days after receipt of the notice, then this Agreement shall be deemed cancelled and terminated effective on the Thirty First (31st) day after receipt of the notice. In the case of Optionee failure to pay the minimum advanced royalty or production royalty payments due hereunder, Optionor shall be entitled to give Optionee written notice by certified mail of default, and if such default is not remedied within Twenty (20) days after receipt of the notice, then the Agreement shall be deemed cancelled and terminated effective on the Twenty First (21 st) day after Optionee receipt of said notice. If Optionee refuses to accept certified mail then automatic termination takes effect based on date of refusal to accept notice rather then on date of actual receipt of notice.

9.1 TERMINATION BY OPTIONEE: Optionee may at any time terminate this Agreement by giving 30-day advance written notice of said termination to Optionor. On or promptly after delivery of the notice of termination, Optionee shall execute and deliver to Optionor a written release of the Agreement in proper form for recording. Optionee shall be required to pay all payments whatsoever owed to Optionor at the time of termination. On expiration or termination of this Agreement, Optionee shall surrender and return the Property in a state of compliance with applicable laws, regulations and ordinances of any government agency or authority having jurisdiction of the Property, and, if Optionee compliance is incomplete at such time, then Optionee shall diligently take the actions necessary to complete compliance. Optionee will leave claims in good standing in regards to paying annual BLM Rental Fees of $125 per claim. Optionee obligation to perform all reclamation and cleanup work as required by federal, state and local government regulation, law or statute as a result of its activities or operations on the Property shall survive termination of this Agreement.

10.0 REMOVAL OF EQUIPMENT: Optionee shall upon termination of this Agreement, at the request of the Optionor, but in any case not later than Six (6) months after termination of this Agreement remove from the Property all buildings, structures and equipment, and to restore or diligently act to restore the Property to an environmentally acceptable state as may be required by federal, state and local government authority. Any buildings, structures or equipment including personal property of the Optionee, remaining on the Property after the time described in this section shall deemed to be owned by Optionor with no further action on the part of the parties.

11.0 FORCE MAJEURE: The respective obligations of either party, except Optionee obligation to pay the minimum payments and maintain all insurance, shall be suspended during the time and to only the extent that such party is prevented from compliance, in whole or in part, by war, earthquake, fire, flood, strike and the act or restraint, present or future, of any lawful authority, statute, governmental regulation or ordinance, environmental restrictions or conditions, permit or license approval or act of God.

12.0 NOTICES: Any notices required or authorized to be given by this Agreement shall be in written form by registered or certified mail, addressed to the proper party at the following address or such address as shall have been designated to the other party in accordance with this section. Any notice required or authorized to be given by this Agreement shall be deemed to have been sufficiently given or served in written form if mailed as provided herein or personally delivered to the proper party. Such notice shall be effective on the date of receipt by the addressee party:

If to Optionor: CUMO Molybdenum Mining, Inc. <br> P.O. Box 408 Mina, Nevada 89422

If to Optionee: Mosquito Consolidated Gold Mines Limited <br> 301-455 Granville St. <br> Vancouver, B.C. Canada V6C ITI

13.0 BINDING EFFECT OF OBLIGATIONS: The terms of this Agreement will "Run With the Land" and shall be binding upon and inure to the benefit of the respective parties and their successors and assigns.

14.0 WHOLE AGREEMENT: The parties hereto agree that the whole Agreement between them is written in this Agreement and in any memorandum of agreement of even date, which is intended to be recorded. There are no terms or conditions, express or implied, than expressly stated in this Agreement. This Agreement may be amended or modified only by an instrument in writing, signed by the parties with the same formality as this Agreement.

15.0 GOVERNING LAW: This Agreement shall be construed and enforced in accordance with the laws of the State of Nevada and Province of British Columbia.

16.0 MULTIPLE COUNTERPARTS: This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute the same agreement.

17.0 SEVERABILITY: If any part, term or provision of this Agreement is held by a c6uriq)f competent jurisdiction to be illegal or in conflict with any law of the USA, or state, the validity of the remaining portions or provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular part, term or provision held to be invalid.

18.0 ASSIGNMENT: Upon providing written notice to the other party in accordance with the terms of this Agreement, either party may assign its respective rights and obligations under this Agreement, provided that the assignee executes an assumption of all of the assignor's obligations hereunder and agrees to be bound by all terms and conditions of this Agreement. No such assignment shall in any way enlarge or diminish the right of obligations of Lessee or Optionor hereunder. Upon the assumption by the assignee of the assignors obligations, the assigning party shall be fully released from and shall not be liable or responsible to the non-assigning party in any way for any duties, costs, payments or other liabilities or obligations that thereafter arise or accrue directly or indirectly under this Agreement. A fully executed memorandum of assignment in a form that can be recorded shall be provided to the non-assigning party by the assigning party.

---

| | |
|:---|:---|
| CUMO MOLYBDENUM MINING, INC. | MOSQUITO CONSOLIDATED MINES LIMITED |
| /s/ Thomas L. Evans | /s/ Brian A. McClay |
| Thomas L. Evans, President | Brian A. McClay, President |

---

County of Washo) <br> State of Nevada) ss <br> USA)

On this 13<sup>th</sup> day of October, 2004, <u>personally</u> appeared before me, a Notary Public, Brian A. McClay and acknowledged that he executed the above Option Agreement in his capacity as President of Mosquito Consolidated Gold Mines Limited, as indicated above, on behalf of said Corporation and that the Corporation executed same.

---

| | |
|:---|:---|
| [Notary Stamp] | /s/Christine Baistine |
|  | Notary Public |

---

County of Washo) <br> State of Nevada) ss <br> USA)

On this 13th day of October, 2004, Thomas L. Evans personally appeared before me, a Notary Public, and acknowledged that he executed the above Option Agreement in his capacity as President of CUMO Molybdenum Mining, Inc., as indicated above, on behalf of said Corporation and that the Corporation executed same.

---

| | |
|:---|:---|
| [Notary Stamp] | /s/ Christine Baistine |
|  | Notary Public |

---

EXIBIT "A"

The Property, which is the subject of the aforementioned Option Agreement, includes those certain Un-patented Mining Claims situate in Sections 17 & 18, T8N; R6E in Boise County, Idaho which are owned by the Optionor, more particularly described as follows:

---

| | | |
|:---|:---|:---|
| Name of Claim | BLM Serial # | County Instrument # |
| New CUMO # 1 | !MC 182493 | 171292 |
| NewCUMO#2 | IMC 182494 | 171293 |
| New CUMO # 3 | !MC 182495 | 171294 |
| NewCUMO#4 | !MC 182496 | 171295 |
| New CUMO # 5 | IMC 182497 | 171296 |
| New CUMO # 6 | IMC 182498 | 171297 |
| New CUMO#7 | IMC 182499 | 171298 |
| NewCUMO#8 | IMC 182500 | 171299 |

---

**<u>AMENDMENT TO OPTION TO PURCHASE AGREEMENT</u>**

*Between:* 

CUMO Molybdenum Mining Inc.

608 Front Street

P.O. 408

MINA, NEVADA

98422

("Cumo")

 ***and***

Mosquito Consolidated Gold Mines Ltd.

301-455 Granville Street Vancouver B.

C. V 6C 1 T 1

("Mosquito")

January 14, 2005

This letter will confirm our mutual agreement to amend our October 13, 2004 Option to Purchase Agreement (the "Agreement") with the following:

1. Cumo will grant Mosquito an exclusive option to purchase all (100%) of Cumo's rights, ownership and royalty interests in the Cumo mineral claims which are the subject of the Agreement (the "Property") for $1,500,000.00(USD).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Term of the option will be 4 years from date of this letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Payment of the $1,500,000.00 will be $1,000,000.00 in cash and $500,000.00 in common shares of Mosquito.

2. It is the intention of Mosquito to enter an agreement with Kobex Resources Ltd. ("Kobex") whereby Mosquito will grant Kobex an option to purchase all Mosquito's interests in the property<sup>.</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cumo
 has agreed to use its best efforts in assisting the parties in completing this agreement
 including entering into a Trust and Escrow agreements with Kobex which will facilitate the
 transfer of title in the Property to Kobex and re-transfer title to Cumo in the event that
 Kobex terminates it's option with Mosquito, in a manner satisfactory to the legal counsel
 of Cumo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *All* costs incurred in the transfer, escrow and return of title of the property will be the responsibility
of Kobex. Cumo shall choose an Escrow company satisfactory to all parties.

3. During the term of the agreement any mineral interest within an area of five miles from the exterior boundaries of the Cumo property acquired by any means by or on behalf of either of the parties hereto or their affiliates or associates or any party not at arm's length to either of the parties shall be deemed to be part of the Property and shall be subject to the terms of the Agreement.

Mosquito and Cumo will do all things necessary to complete any further documents necessary to insure the completion of the amendments documented in this agreement.

4. Notwithstanding paragraph 1 of this amendment, upon payment of the $3,000,000.00 in advance royalty payments described in paragraph 5.1 of the Agreement and the issuance of the 300,000 shares described in paragraph 5.2 of the Agreement Cumo will transfer all interest and title to the property to Mosquito. This transfer will not include the 1/2 % (one-half percent) net smelter royalty payable to Cumo.

5. ---

| | |
|:---|:---|
| Agreed: | /s/ Brian A. McClay |
|  | MOSQUITO CONSOLIDATED GOLD MINES LTD |

---

---

| | |
|:---|:---|
| Agreed: | /s/ Thomas L. Evans |
|  | CUMO MOLYBDENUM MININGN INC. |

---

County of Cochise) <br> State of Arizona) ss. <br> USA)

*On this 14<sup>th</sup> day of* January, *2005, personally appeared before me, a Notary Public, Brian A. McClay and acknowledged that he executed the above Amendment to Option to Purchase Agreement in his capacity as President of Mosquito Consolidoted Gold Mines Limited, as indicated above, on behalf of said Corporation and the Corporation executed the same.* 

---

| | |
|:---|:---|
|  | /s/ Notary Public |
|  | Notary Public |
| [Notary Seal] |  |

---

County of Cochise) <br> State of Arizona) ss. <br> USA)

## Exhibit 10.4

**Exhibit 10.4**

**MINING CLAIMS AGREEMENT**

This Mining Claims Agreement (this "**<u>Agreement</u>**") is effective as of July 25, 2017 (the "**<u>Effective Date</u>**"), among CuMo Molybdenum Mining Inc., a Nevada corporation, whose address is 608 Front Street, Mina, Nevada, 89442, Western Geoscience Inc., a Nevada corporation, whose address is 608 Front Street, Mina, Nevada, 89442, and Thomas Evans, an unmarried individual, residing at 608 Front Street, Mina, Nevada, 89442 ("**<u>SELLER</u>**"), and Idaho CuMo Mining Corporation, a Idaho corporation, [address] (sometimes referred to below as "**Idaho CuMo**") and American CuMo Mining Corporation, a British Columbia corporation, [address] ("**CuMo**") (Idaho CuMo and CuMO are collectively referred to below as "<u>BUYER</u>"). SELLER and BUYER are each referred to individually as a "**<u>Party</u>**" and collectively as the "**<u>Parties</u>**."

**<u>Recitals</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. SELLER
 owns certain unpatented mining claims in Boise County, Idaho, as more particularly described
 IS the "Property" in  **<u>Exhibit A</u>** ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. SELLER
 agrees to transfer the net smelter return royalty interest established by that certain OPTION
 TO PURCHASE AGREEMENT made and entered into effective October 13, 2004;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. SELLER
 agrees renounce any other claims or rights as conveyed on the underlying property option
 agreement dated October 13, 2004, and its amendment dated January 14, 2005; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. SELLER
 desires to grant to BUYER and BUYER, subject to satisfaction of certain contingencies as
 are set forth herein, and release of provided opt out provisions, desires to acquire (i)
 an exclusive right to evaluate the Property and (ii) a right to purchase from SELLER the
 Property.

In consideration of the covenants and agreements in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties agree as follows:

**<u>Agreement</u>**

**ARTICLE 1**

**<u>DEFINITIONS: INTERPRETATION</u>**

1.1.  **<u>Definitions</u>** .
As used in this Agreement, the following capitalized terms have the following meanings given:

"**<u>Acquired Assets</u>**" means tools, equipment, machinery, supplies, fixtures, buildings, structures and other assets (but excluding any Data), purchased, developed or otherwise acquired in connection with Exploration, Development and Related Work conducted by BUYER during the Final Due Diligence Period by incurring Exploration and Development Expenses.

"**<u>Adverse Consequences</u>**" mean with respect to a Person, claims, actions, causes of action, damages, losses, liabilities, obligations, penalties, judgments, amounts paid in settlement, assessments, costs, disbursements and expenses (including reasonable attorneys' fees and costs, experts' fees and costs, and consultants' fees and costs) of any kind or nature against, suffered or incurred by the Person.

"**<u>Affiliate</u>**" means with respect to a Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, the subject Person. As used in this definition, the term "control" means (a) with respect to an entity, the ability, directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of the entity through the legal or beneficial ownership of voting securities or the right to appoint managers, directors or corporate management, or by contract, operating agreement, voting trust or otherwise, and (b) with respect to a natural person, the actual or legal ability to control the actions of another, through family relationship, agency, contract or otherwise.

"**<u>Annual Period</u>**" means each calendar period of 365 days (or 366 days during a calendar period that includes February 29th) commencing on the Effective Date and each subsequent anniversary of the Effective Date and ending on May I of the next calendar year.

"**<u>Business Day</u>**" means any day on which federally chartered banks are generally open for business in Idaho.

"**<u>Confidential Information</u>**" means Data and Other information that is applicable to the Property and that is developed or made available to a Party by the other Party under this Agreement.

"**<u>Data</u>**" means (a) all records, information and data relating to title to the Property or environmental conditions at or pertaining to the Property, and (b) all maps, assays, surveys, technical reports, drill logs, samples, mine, mill, processing and smelter records, and metallurgical, geological, geophysical, geochemical, and engineering data, and interpretive reports derived therefrom, relating to the Property.

"**<u>Development</u>**" means all preparation (Other than Exploration) for the removal and recovery of Products, including pre-stripping, stripping and the construction Or installation of a mill, leach facilities, or any other improvements to be used for the mining, handling, milling, processing or other beneficiation of Products, and all related Environmental Compliance.

"**<u>Environmental Compliance</u>**" means actions taken in connection with activities or operations on the Property to comply with the requirements of all Environmental Laws or contractual commitments related to reclamation of the Property or other compliance with Environmental Laws.

"**<u>Environmental Laws</u>**" means Laws aimed at reclamation Or restoration of the Properly; abatement of pollution; protection of the environment; protection of wildlife, including endangered species; ensuring public safety from environmental hazards; protection of cultural or historic resources; management, storage or control of hazardous materials and substances; releases or threatened release of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances as wastes into the environment, including ambient air, surface water and groundwater; and all other Laws relating to the manufacturing, processing, distribution, use, treatment, storage, disposal, handling or transport of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

"**<u>Environmental Liabilities</u>**" means any and all Adverse Consequences (including liabilities for studies, testing Or investigatory costs, cleanup costs, response costs, removal costs, remediation costs, containment costs, restoration costs, corrective action costs, closure costs, reclamation costs, natural resource damages, property damages, business losses, personal injuries, penalties Or fines) arising out of, based on or resulting from (a) the presence, release, threatened release, discharge or emission into the environment of any Hazardous Materials existing or arising on, beneath or above the Property or emanating, migrating or threatening to emanate or migrate from the Property to off-site Property, (b) physical disturbance of the environment, or (c) the violation or alleged violation of any Environmental Laws.

"**<u>Existing Data</u>**" means all Data in SELLER's possession or reasonably available to SELLER as of the Effective Date.

"**<u>Exploration</u>**" means all activities directed toward ascertaining the existence, location, quantity, quality or commercial value of deposits of Products, including drilling required after discovery of potentially commercial mineralization, and all related Environmental Compliance.

"**<u>Force Majeure Event</u>**" means, with respect to BUYER, any cause, condition, event or circumstance, whether foreseeable or unforeseeable, beyond its reasonable control, including the following to the extent beyond its reasonable control: (a) labor disputes (however arising and whether or not employee demands are reasonable or within BUYER's power to grant), (b) the inability to obtain on reasonably acceptable terms any governmental permit Or authorization or private license, consent or other authorization, and any actions or inactions by any governmental authorities or private third parties that delay or prevent the issuance or granting of any permits or other authorization required to conduct Exploration, Development and Related Work beyond the reasonable expectations of BUYER, including (i) the failure to complete any review and analysis required by the National Environmental Policy Act or any similar state law within twelve (12) months of initiation of that process, and (ii) an appeal of the issuance of a permit or authorization that revokes, suspends or curtails the right under the permit or authorization to conduct Operations, (c) changes in Law, and instructions, requests, judgments and orders of governmental authorities, (d) curtailments or suspensions of activities to remedy or avoid an actual or alleged, present or prospective violation of Environmental Laws, (e) acts of terrorism, acts of war, and conditions arising out of or attributable to terrorism or war, whether declared or undeclared, (t) riots, civil strife, insurrections and rebellions, (g) fires, explosions and acts of God, including earthquakes, storms, floods, sink holes, droughts and other adverse weather conditions, (h) delays and failures of suppliers to supply, or of transporters to deliver, materials, parts, supplies, services or equipment, (i) contractors' or subcontractors' shortage of, or inability to obtain, labor, transportation, materials, machinery, equipment, supplies, utilities or services, G) accidents, (k) breakdowns of equipment, machinery or facilities, (l) actions by native rights groups, environmental groups, or other similar special interest groups, and (m) other causes, conditions, events and circumstances, whether similar or dissimilar to the foregoing, beyond its reasonable control.

"**<u>Hazardous Materials</u>**" means any substance: (a) the presence of which requires reporting, investigation, removal or remediation under any Environmental Law, (b) that is defined as a "hazardous waste," "hazardous substance," "extremely hazardous substance" or "pollutant" or "contaminant" under any Environmental Law; (c) that is toxic, explosive, corrosive, flammable, ignitable, infectious, radioactive, reactive, carcinogenic, mutagenic or otherwise hazardous and is regulated under any Environmental Law; (d) the presence of which on a property causes or threatens to cause a nuisance upon the property or to adjacent Property Or poses or threatens to pose a hazard to the health or safety of natural persons on or about the property; (e) that contains gasoline, diesel fuel or other petroleum hydrocarbons; or (f) that contains PCBs, asbestos or urea formaldehyde foam insulation; in each case subject to exceptions provided in applicable Environmental Laws.

"**<u>Law</u>**" means all applicable federal, state, local, municipal, tribal and foreign laws (statutory or common), rules, ordinances, regulations, grants, concessions, franchises, licenses, orders, directives, judgments, decrees, and other governmental restrictions, including permits and other similar requirements, whether legislative, municipal, administrative or judicial in nature.

"**<u>Person</u>**" means a natural person, corporation, joint venture, partnership, limited liability partnership, limited partnership, limited liability limited partnership, limited liability company, trust, estate, business trust, association, govemmental authority or other entity.

"**<u>Products</u>**" means all ores, minerals and mineral deposits or mineral substances ofevery kind or character located in, on or under the Property.

"**<u>Property</u>**" means the Property described in Exhibit A, together with all water and water rights, easements and rights-of-way, and other appurtenances attached to or associated with the Property.

"**<u>SELLER Indemnified Parties</u>**" means SELLER and its Affiliates, and their respective directors, officers, employees and agents.

"**<u>BUYER Indemnified Parties</u>**" means BUYER and its Affiliates, and their respective directors, officers, employees and agents.

1.2  **<u>Interpretation</u>** .
In interpreting this Agreement, except as otherwise indicated in this Agreement or as the context may otherwise require, (a) the words
"include," "includes," and "including" are deemed to be followed by "without limitation"
whether Or not they are in fact followed by those words or words of similar import, (b) the words "hereof," "herein,"
"hereunder," and comparable terms refer to the entirety of this Agreement, including the Appendix Or Exhibits, and not to
any particular Article, Section, or Other subdivision ofthis Agreement Or Appendix or Exhibit to this Agreement, (c) any pronoun shall
include the corresponding masculine, feminine, and neuter forms, (d) the singular includes the plural and vice versa, (e) references
to any agreement (including this Agreement) or other document are to the agreement or document as amended, modified, supplemented, and
restated now or from time to time in the future, (f) references to any Law are to it as amended, modified, supplemented, and restated
now or from time to time in the future, and to any corresponding provisions of successor Laws, (g) except as otherwise expressly provided
in this Agreement, references to an "Article," "Section," "preamble," "recital," or another
subdivision, or to the "Appendix" or an "Exhibit," are to an Article, Section, preamble, recital or subdivision
of this Agreement, or to the "Appendix" or an "Exhibit" to this Agreement, (h) references to any Person include
the Person's respective successors and permitted assigns, (i) references to "dollars" Or "S" shall mean
the lawful currency of the United States, (j) references to a "day" or number Of "days" (without the explicit
qualification Of "Business") refer to a calendar day or number of calendar days, (k) if interest is to be computed under
this Agreement, it shall be computed on the basis of a 360-day year of twelve 30-day months, (l) if any action or notice is to be taken
or given on or by a particular calendar day, and the calendar day is not a Business Day, then the action or notice may be taken or given
on the next succeeding Business Day, and (m) any financial Or accounting terms that are not otherwise defined herein shall have the meanings
given under GAAP.

**ARTICLE 2**

**<u>GRANT OF RIGHTS AND CLOSING</u>**

2.1.  **<u>Rights Granted</u>** . SELLER hereby grants to BUYER the exclusive right to enter upon the Property to conduct final technical and legal due
diligence for a period of 30 (thirty) days from the Effective Date regarding the Property, title, and other matters solely at the discretion
of BUYER (the "Final Due Diligence Period") and the right to purchase the

2.2.  **<u>Acquisition of the Property</u>** . Upon completion of the Final Due Diligence Period, determined at BUYER's sole and absolute discretion,
BUYER shall have the right, but not the obligation, to immediately purchase the Property and acquire and receive from SELLER the Property.
BUYER shall promptly give notice to SELLER of its decision to purchase the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. Within
10 days after the receipt of BUYER's notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1.1. The
Parties shall arrange a closing at a date and location mutually convenient to them, but no later than July 31 , 2017 (the "**Closing Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1.2. No
less than two Business Days prior to the Closing Date, SELLER shall execute and deliver to BUYER drafts of conveyances of the Property,
pursuant to a special warranty Deed in a form mutually agreed to by the Parties and suitable for recording under applicable Idaho law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. On
the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.1. SELLER
shall deliver to Idaho CuMo:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.1.1. Duly
executed transfers of all right, title and interest in and to the Property in the special warranty Deed form mutually agreed to by the
Parties and suitable for recording under applicable Idaho law in favor of BUYER or its nominee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.2. SELLER
shall deliver to CuMo:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.2.1. The
net smelter return royalty established by Section 5.3 of that certain OPTION TO PURCHASE AGREEMENT made and entered into effective October
13, 2004.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.3. BUYER
shall deliver to SELLER:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.3.1. Five
Hundred Thousand Dollars (USS500,000.00);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.3.2. 2,500,000
common shares of American CuMo Mining Corporation. Individual certificates to be distributed to SELLER pursuant to its direction with
said certificates to be delivered within one week of TSX-V exchange approval of the transaction and BUYER' s receipt of all right,
title and interest in and to the Property and net smelter return royalty as specified in Sections 2.2.2.1.1 and 2.2.2.2.1 above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.3.3. A
7-year term silver convertible debenture valued at US$1,000,000. The debenture pays 8.5% interest annually which is paid semi-annually
on July 31 and December 31 of each year. A subscription agreement and promissory note can be found in appendix B and C attached.

2.3.  **<u>Taxes. Fees and Expenses</u>** <u>.</u> Each Party shall be solely responsible for the payment of all taxes applicable to it in connection
with the purchase and sale of the Property and shall pay its respective legal, accounting and other professional fees and expenses incurred
by it in connection with the negotiation and settlement of this Agreement, the completion of the transactions contemplated hereby and
the other matters pertaining hereto. SELLER declares that this Agreement is intended to be interpreted by applicable United States taxing
authorities as the sale of a capital asset qualifying for long term capital gains tax treatment.

2.4.  **<u>Lesser Interest</u>** . If SELLER owns an interest in the Property which is less than the entire and undivided estate in the Property, the
amounts payable under this Agreement, including but not limited to the Production Royalty payments, shall be reduced proportionately
in accordance with the nature and extent of SELLER' s interest so that the amounts due shall be paid to SELLER only in the proportion
that SELLER's interest bears to the entire and undivided estate in the Property.

2.5.  **<u>Geological and Other Data</u>** . Upon execution of this Agreement, SELLER shall make available to BUYER all Existing Data, and BUYER, at its expense,
may copy any such Existing Data. SELLER makes no representation or warranty as to the accuracy, reliability or completeness of any such
Existing Data, and BUYER shall rely on the same at its sole risk.

**ARTICLE 3**

**<u>RIGHTS OF BUYER AND OTHER ARRANGEMENTS DURING THE FINAL DUE DILIGENCE PERIOD</u>**

3.1  **<u>BUYER's Rights</u>** . During the Final Due Diligence Period, BUYER's rights shall include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 BUYER
may carry out such operations at the Property as it may, in its sole discretion, and at its sole expense, determine to be warranted.
During the Final Due Diligence Period, BUYER shall have no right to remove Products from the Property, except for the purpose of bulk
sampling or testing, pilot plant or other test operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2 BUYER's
rights shall include all other rights necessary or incident to or for its performance of its operations hereunder, including, but not
limited to the authority to apply for all necessary permits, licenses and other approvals from the United States Of America, the State
of Idaho, or any Other governmental or other entity having regulatory authority over any part of the Property.

3.2  **<u>Changes to the Mining Law</u>** . The Parties are aware that the mining Laws of the United States or the State Of Idaho pertaining to unpatented
mining claims and mill sites or activities thereon may be amended or new laws may be enacted during the Final Due Diligence Period. In
that event, BUYER shall have the right (but not the obligation) of maintaining the rights and obligations of SELLER in and to the Claims
and the lands covered thereby pursuant to those new or amended Laws, subject to this Agreement and to the extent allowable, including
the right to convert the Claims, in the name of SELLER, to any new property rights that may be created, and all of the terms and conditions
of this Agreement shall apply to such new property rights. SELLER agrees to cooperate with BUYER in this regard.

**ARTICLE 4**

**<u>OBLIGATIONS OF BUYER DURING THE FINAL DUE DILIGENCE PERIOD</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.  **<u>Compliance with Laws</u>** . BUYER shall conduct and perform all of its operations at the Property during the Final Due Diligence Period in substantial
compliance with all valid and applicable Laws, including Environmental Laws and all Laws pertaining to social security, unemployment
compensation, wages and hours and conditions of labor, and BUYER shall defend, indemnify and hold the SELLER Indemnified Parties harmless
from and against any Adverse Consequences arising out of or resulting from BUYER's failure to comply with any such Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.  **<u>Conduct of Operations by BUYER at the Property</u>** . All work that may be performed by BUYER under this Agreement shall be performed in a
good, workmanlike and efficient manner, in accordance with sound mining and Other applicable industry standards and practices, and all
governmental permits and authorizations pertaining to the Property; provided however, that the timing, nature, manner and extent of any
Exploration, Development and Related Work shall be in the sole discretion of BUYER, and there shall be no implied covenant to begin or
continue any such operations or activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.  **<u>Inspection</u>** .
During the Final Due Diligence Period, SELLER and its authorized agents, at SELLER's sole risk and expense, shall have the right,
exercisable during regular business hours, at a mutually convenient time, in compliance with BUYER' s safety rules and regulations,
and in a reasonable manner so as not to interfere with BUYER' s operations, to enter upon the Property for the purpose of confirming
that BUYER is conducting its operations in the manner required by this Agreement. SELLER shall indemnify, defend and hold the BUYER Indemnified
Parties harmless from and against all Adverse Consequences arising out Of or resulting from any death, personal inj ury or property damage
sustained by SELLER, or its employees or agents while in or upon the Property (whether or not pursuant to this <u>Section 4.3</u>), except
to the extent the death, injury or damage is caused by BUYER's gross negligence or willful misconduct. If requested by BUYER, SELLER,
its agents and employees shall confirm in writing their waiver of claims against BUYER in connection with any such access to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.  **<u>Taxes</u>** .
During the Final Due Diligence Period, BUYER shall be responsible for payment of all taxes and assessments levied or assessed upon or
against the Property and any facilities or improvements located thereon; provided, however, that BUYER shall not be responsible for any
such payments for which SELLER receives notices of due dates and fails to timely forward copies of such notices to BUYER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.  **<u>Liens and Encumbrances</u>** . BUYER shall keep the title to the Property free and clear of all liens and encumbrances resulting from Exploration,
Development and Related Work under this Agreement; provided, however, that BUYER may refuse to pay any claims asserted against it that
it disputes in good faith. At its sole cost and expense, BUYER shall contest any suit, demand Or action commenced to enforce such a claim
and, if the suit, demand or action is decided by a court or other authority of ultimate and final jurisdiction against BUYER or the Property,
BUYER shall promptly pay the judgment and shall post any bond and take all other action necessary to prevent any sale Or loss Of the
Property or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.  **<u>Claim Maintenance Fees and Maintenance of Title to Unpatented Mining Claims</u>** . BUYER shall perform all required assessment work and pay
all claim maintenance fees required to be paid during the Final Due Diligence Period in order to maintain the unpatented mining claims
comprising the Property in good standing, and make all required filings and recordings associated therewith. BUYER shall not be liable
for the loss of any of the unpatented mining claims comprising the Property, whether through third party relocation, governmental action
or operation of law, resulting from any defect in title (including failure to adhere to the required location procedures or claim maintenance

**ARTICLE 5**

**<u>REPRESENTATIONS AND WARRANTIES OF SELLER</u>**

5.  **<u>Representations and Warranties of Seller</u>** . SELLER represents and warrants to BUYER as of the Effective
 Date as follows, and covenants that these representations and warranties will be true and
 correct throughout the Final Due Diligence Period and Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.  **<u>Power</u>** .
 SELLER has the requisite power and authority (i) to enter into this Agreement and all other
 agreements contemplated by this Agreement to be entered into by SELLER, and (ii) to carry
 out and perform its obligations under this Agreement and all other agreements contemplated
 by this Agreement to be entered into by SELLER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.  **<u>Organization</u>** .
 SELLER is made up of individuals duly qualified to conduct business in Idaho.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.  **<u>Authorization</u>** <u>.</u> Assuming valid execution and delivery by BUYER, this Agreement is, and when executed
 and delivered by SELLER all other agreements contemplated by this Agreement to be entered
 into by SELLER will be, legal, valid, and binding obligations of SELLER enforceable against
 SELLER in accordance with their respective terns. The execution, delivery and perfor <u>man</u> ce
 of this Agreement and all such other agreements by SELLER will not violate any provision
 of Law, any order of any court or other agency of government; or any provision of any indenture,
 agreement or other instrument to which SELLER is a party or by which its Property or assets
 are bound; or be in conflict with, result in a breach of or constitute (with due notice and
 lapse of time) a default under any such indenture, agreement or other instrument. To the
 best of SELLER's knowledge there is no Law, nor is there any judgment, decree or order
 of any court or governmental authority binding on SELLER that would be contravened by the
 execution, delivery, performance, or enforcement by it of this Agreement or any other agreement
 contemplated by this Agreement to be entered into by SELLER. Notwithstanding the foregoing,
 no representation is made as to (i) the remedy of specific performance or other equitable
 remedies for the enforcement of this Agreement or any other agreement contemplated hereby
 or (ii) rights to indemnity under this Agreement for securities law liability. Additionally,
 this representation is limited by applicable bankruptcy, insolvency, moratorium, and other
 similar laws affecting generally the rights and remedies of creditors and secured parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.  **<u>Royalties</u>** .
 There are no royalties Or Other burdens on production affecting the Property other than the
 net smelter return royalty established by Section 5.3 of that certain OPTION TO PURCHASE
 AGREEMENT made and entered into effective October 13, 2004, to be assigned to CuMo pursuant
 to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.  **<u>Permits and Licenses</u>** . SELLER has obtained all permits, licenses, approvals, authorizations
 and qualifications of all federal, state and local authorities required for it to carry on
 its operations at or on the Property. To the best of its knowledge, SELLER is not in violation
 Of and has no liability (other than liability for compliance with existing permits and laws,
 including but not limited to performance of reclamation) under any statute, rule or regulation
 of any governmental authority applicable to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.  **<u>Title to the Property</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1. SELLER
 represents that, to the best Of its knowledge, it is in exclusive possession ofand has good
 and marketable title to the Property and that it has not pledged, conveyed or otherwise assigned
 (or agreed to pledge, convey or otherwise assign) any interest in the Property to any third
 party. With respect to each of the unpatented mining claims comprising the Property, SELLER
 represents that, to the best of its knowledge, subject to the paramount title of the United
 States of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1.1. the
 Claims were properly located and monumented, to best of sellers knowledge, on ground open
 to appropriation by mineral location;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1.2. location
 notices and certificates were properly posted and recorded for each of the Claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1.3. all
 filings and recordings required to maintain the Claims in good standing through the Effective
 Date, including evidence of proper performance of annual assessment work or payment of required
 claim maintenance fees, have been timely and properly made in the appropriate governmental
 offices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56.1.4. assessment
 work, performed reasonably and in good faith in accordance with accepted industry practice,
 which SELLER believes was sufficient to satisfy the requirements for holding the Claims was
 performed through the assessment year ending September 1, 1992; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1.5. all
 required annual claim maintenance fees and other payments necessary to maintain the Claims
 through the assessment year ending September 1, 2017, have been timely and properly made.
 SELLER makes no representation or warranty as to the existence of a discovery of valuable
 minerals with respect to any of the Claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.2. SELLER
 represents and warrants that the Property are free and clear of all liens and encumbrances
 including any lease, right or license, except taxes not yet due and payable, arising by,
 through or under SELLER and, to the best of its knowledge, any other third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.3.  **<u>Environmental Compliance</u>** . To the best of SELLER's knowledge, there is no condition or activity
 at the Property that constitutes a nuisance or which would result in a violation of or liability
 under any applicable Environmental Law. SELLER has not received any notice of violation or
 any consent order issued under applicable federal, state or local laws, orders, regulations,
 directives or restrictions concerning protection of the environment and health and safety
 to which the Property or SELLER's operations thereon are now subject or may become
 subject. There are no pending or, to the best of SELLER'S knowledge, threatened proceedings
 by or before any court or other governmental authority, arbitrator or arbitration panel with
 respect to operations on or the ownership of the Property alleged to be, or to have been,
 in violation of, or to be the basis of liability under, any Environmental Law, and SELLER
 is not aware of any "release" (as defined in the U.S. Comprehensive Environmental
 Response, Compensation and Liability Act of 1980, as amended) Of any Hazardous Materials
 at, from or affecting the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.4.  **<u>Material Contracts and Commitments</u>** . SELLER has performed all material obligations required
 to be performed by it under any contracts and commitments affecting the Property to which
 it is a party, and is not in default, and will not be in default as a result of the consummation
 of the transactions contemplated by this Agreement, under any contract, agreement, commitment,
 mortgage, indenture, loan agreement, lease, license, or other instrument to which it is a
 party. True and correct copies of all such agreements and commitments, as amended, have been
 provided to BUYER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.5.  **<u>Legality</u>** .
 To the best of its knowledge, SELLER is not in material violation of any Law, including those
 relating to zoning, condemnation, mining, reclamation, environmental matters, equal employment,
 and federal, state, or local health and safety Laws, the lack of compliance with which could
 materially adversely affect the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.6.  **<u>Litigation and Claims</u>** . There are no actions, suits or proceedings pending or, to the best of
 SELLER's knowledge, threatened against or affecting the Property, including any actions,
 suits, or proceedings being prosecuted by any federal, state or local department, commission,
 board, bureau, agency, or instrumentality. To the best of its knowledge, SELLER is not subject
 to any order, writ, injunction, judgment or decree of any court or any federal, state or
 local department, commission, board, bureau, agency, or instrumentality that relates to the
 Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.7.  **<u>Consents</u>** .
 To the best of its knowledge, SELLER has obtained all consents, approvals, authorizations,
 declarations, or filings required by or under any federal, state, local, or other authority,
 stock exchange or any other third party whether by way of a contract with SELLER or otherwise
 in connection with the valid execution, delivery, and by SELLER of this Agreement and the
 consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.8.  **<u>Taxes</u>** .
 All federal, state and local excise, property and other taxes and assessments pertaining
 to or assessed against the Property have been timely and properly paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.9.  **<u>Brokerage Or Finder's Fee</u>** . All negotiations relative to this Agreement and the transactions
 contemplated by this Agreement have been carried on by SELLER in such manner as not to give
 rise to any valid claim against BUYER or any other third party for a brokerage commission,
 finder' s fee, or other fee or commission arising by reason of the transactions contemplated
 by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.10.  **<u>Representations</u>** .
 No statements, warranties, or representations made by SELLER herein contain any untrue statement
 of a material fact or omit to state a material fact necessary in order to make the statements
 made, in light of the circumstances under which such statements were or will be made, not
 misleading.

**ARTICLE 6**

**<u>REPRESENTATIONS AND WARRANTIES OF BUYER</u>**

6.  **<u>Representations and Warranties of BUYER</u>** . BUYER represents and warrants to SELLER as of the Effective
 Date as follows, and covenants that these representations and warranties will be true and
 correct throughout the Final Due Diligence Period and Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1  **<u>Organization and Standing</u>** . BUYER is a corporation duly incorporated, validly existing, and in
 good standing under the laws of the State of Idaho, and duly qualified to conduct business
 in Idaho.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.  **<u>Power</u>** .
 BUYER has the requisite corporate power and authority (i) to enter into this Agreement and
 all other agreements contemplated by this Agreement to be entered into by BUYER, and (ii)
 to carry out and perform its obligations under this Agreement and all other agreements contemplated
 by this Agreement to be entered into by BUYER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.  **<u>Authorization</u>** .
 All requisite corporate action on the part of BUYER, and its officers, directors, and shareholders,
 necessary for the execution, delivery, and performance of this Agreement and all other agreements
 contemplated by this Agreement to be entered into by BUYER, have been taken. Assuming valid
 execution and delivery by SELLER, this Agreement is, and when executed and delivered by BUYER
 all other agreements contemplated by this Agreement to be entered into by BUYER will be,
 legal, valid, and binding obligations of BUYER enforceable against BUYER in accordance with
 their respective terms. The execution, delivery and performance of this Agreement and all
 such other agreements by BUYER will not violate any provision of Law; any order of any court
 or other agency of government; or any provision of any indenture, agreement or other instrument
 to which BUYER is a party or by which its Property or assets are bound; or be in conflict
 with, result in a breach of or constitute (with due notice and lapse of time) a default under
 any such indenture, agreement or other instrument. To the best of BUYER's knowledge
 there is no Law, nor is there any judgment, decree or order of any court or governmental
 authority binding on BUYER that would be contravened by the execution, delivery, performance,
 or enforcement by it of this Agreement or any other agreement contemplated by this Agreement
 to be entered into by BUYER.

Notwithstanding the foregoing, no representation is made as to (i) the remedy of specific performance or other equitable remedies for the enforcement of this Agreement or any other agreement contemplated hereby or (ii) rights to indemnity under this Agreement for securities law liability. Additionally, this representation is limited by applicable bankruptcy, insolvency, moratorium, and other similar laws affecting generally the rights and remedies of creditors and secured parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.  **<u>Brokerage or Finder's Fee</u>** . All negotiations relative to this Agreement and the transactions
 contemplated by this Agreement have been carried on by BUYER in such manner as not to give
 rise to any valid claim against SELLER or any other third party for a brokerage commission,
 finder' s fee, Or Other fee Or commission arising by reason of the transactions contemplated
 by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.  **<u>Representations</u>** .
 No statements, warranties or representations made by BUYER herein contain any untrue statement
 of material fact or omit to state a material fact necessary in order to make the statement
 made in light of the circumstances under which such statements were made or will be made,
 not misleading.

**ARTICLE 7**

**<u>NOTICES</u>**

7.  **<u>Notices</u>** .
 All notices given in connection with this Agreement shall be in writing to the applicable
 address below, and shall be given (i) by personal delivery or recognized international overnight
 courier, (ii) by electronic communication, with a confirmation sent by registered or certified
 mail return receipt requested, or (iii) by registered or certified mail return receipt requested.
 All notices shall be effective and shall be deemed delivered (a) if by personal delivery
 or by overnight courier, on the date of delivery if delivered before 5:00 p.m. local destination
 time on a Business Day, otherwise on the next Business Day after delivery, (b) if by electronic
 communication on the Business Day after receipt of the electronic communication, and (c)
 if solely by mail, on the Business Day after actual receipt. A Party may change its address
 by notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. If
to BUYER:

---

| |
|:---|
| Idaho CuMo Mining  |
| Company American |
| CuMo Mining Corp. |
| 638 Milbank |
| Vancouver, BC V5Z 4B7 |

---

Attention: Shaun Dykes <br> Phone: 1-604-520-6511 <br> Email: sdykes@cumoco.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. If
to SELLER:

---

| |
|:---|
| CuMo Molybdenum Mining Inc. |
| Western Geoscience Inc. |
| Thomas Evans 608 Front Street, |
| p.o Box 408 |
| Nevada, 89442 |

---

Attention: Thomas Evans <br> Phone: 1-775-573-2525 <br> Email: geowest@hughes.net

**ARTICLE 8**

**<u>INDEMNIFICATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1  **<u>BY SELLER</u>** . SELLER shall defend, indemnify and hold harmless the BUYER Indemnified Parties from and against any and all Adverse Consequences
arising out of or related to (i) any breach by SELLER of any representation, covenant or warranty of SELLER in this Agreement,
and (ii) any activities conducted on or in connection with the Property before the Effective Date, and (iii) any activities conducted
by or on behalf of SELLER on or in connection with the Property during the Final Due Diligence Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2  **<u>By BUYER</u>** . BUYER shall defend, indemnify and hold harmless the SELLER Indemnified Parties from and against any and all Adverse Consequences
arising out of or related to (i) any breach by BUYER of any representation, covenant or warranty of BUYER in this Agreement, (ii) any
activities conducted by or on behalf of BUYER on or in connection with the Propel-ty during the Final Due Diligence Period, including,
without limitation, Adverse Consequences relating to claims and demands of third Persons for injury to or death of natural persons or
damage to property arising out of or resulting from any Exploration, Development and Related Work conducted by BUYER at the Property
during the Final Due Diligence Period, except as to damages sustained by SELLER while on the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3  **<u>Notification</u>** .
Any Party who has a claim giving rise to indemnification liability under this Agreement (an " <u>Indemnified Party</u> ") that
results from a claim by a third party or otherwise shall give prompt notice to the Other Party (the " <u>Indemnifying Party</u> ")
of the claim, together with a reasonable description of the claim. Failure to provide such notice shall not relieve a Party of any of
its indemnification obligations except to the extent the other Party is materially prejudiced by the failure. With respect to any claim
by a third party against any Party to this Agreement that is subject to indemnification under this Agreement, the Indemnifying Party
shall be afforded the opportunity, at its expense, to defend or settle the claim if it utilizes counsel reasonably satisfactory to the
Indemnified Party, and promptly commences the defense of the claim and pursues the defense with diligence; provided, however, that the
Indemnifying Party shall secure the consent of the Indemnified Party to any settlement, which consent shall not be unreasonably withheld.
The Indemnified Party may participate in the defense of any claim at its expense, and until the Indemnifying Party has agreed to defend
the claim, the Indemnified Party may file any motion, answer or other pleading or take such other action as it deems appropriate to protect
its interests or those of the Indemnifying Party. If an Indemnifying Party does not elect to contest any third-party claim, the Indemnifying
Party shall be bound by the results obtained by the Indemnified Party, including any settlement of the claim.

**ARTICLE 9**

**<u>TERM AND TERMINATION</u>**

9.  **<u>Term and Termination</u>** . This Agreement shall remain in effect during the Final Due Diligence Period, after which if BUYER does not acquire
the Property it will terminate automatically, unless it is sooner terminated as a result of the purchase of the Property by BUYER or
under the provisions of this <u>Article 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.  **<u>Termination by BUYER</u>** . BUYER shall have the right to terminate, surrender and relinquish this
 Agreement at any time during the Final Due Diligence Period by giving written notice to SELLER
 of such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.  **<u>Termination by SELLER</u>** . In the event of a material default under this Agreement by BUYER, SELLER
 shall give BUYER written notice specifying the particular default or defaults asserted, and,
 in the case of a default other than with respect to the payment of money, BUYER shall have
 30 days after the receipt of the notice (or if BUYER disputes the existence of the material
 default, 30 days after the entry by a court of competent jurisdiction of a judgment finding
 such a default) within which either to cure, or to undertake diligent efforts to cure, the
 specified defaults. In the event of such a cure (or the commencement of diligent efforts
 to cure) by BUYER, this Agreement shall continue in full force and effect as though no default
 had occurred. In the event such curative action is not so completed or diligent efforts to
 cure such defaults are not undertaken within the applicable 30-day period and thereafter
 diligently pursued to completion, SELLER may elect to terminate this Agreement by written
 notice to BUYER under <u>Section 7.1</u>. In the case of a default by BUYER relating to the
 payment of money to SELLER, Or to any third party as required under this Agreement, BUYER
 shall have 10 Business Days after receipt of notice Of such default to cure the same, failing
 which SELLER may elect to terminate this Agreement by written notice to BUYER under <u>Section 7.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.  **<u>Effect of Termination</u>** . Upon termination of this Agreement under <u>Section 9.1</u> or <u>9.2</u>, BUYER shall have no further liability
or obligations under this Agreement or with respect to the Property, except with respect to the obligations set forth in <u>Sections 2.3</u> (but only to the extent the same have accrued but not yet been performed), <u>4.1, 8.2, 9.4, 9.5,</u> and <u>9.6,</u> and SELLER
shall have no further liability or obligations under this Agreement, except with respect to the obligations set forth in <u>Sections 4.4, 8.1</u> and <u>9.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.  **<u>Data</u>** .
 As soon as practicable upon the termination of this Agreement, if BUYER has not purchased
 the Property, BUYER shall return to SELLER copies of all Existing Data or other Data furnished
 to BUYER by SELLER. At such time, BUYER shall make available to SELLER for examination and
 copying all Data developed by BUYER with respect to the Property during the Final Due Diligence
 Period and not previously made available to SELLER; provided, however, that BUYER shall have
 no obligation to make any interpretive data or reports developed by it or on its behalf available
 to SELLER if such interpretive data or reports are proprietary to or constitute trade secrets
 of BUYER. BUYER makes no representation or warranty as to the accuracy, reliability or completeness
 of any such Data made available to SELLER, and SELLER shall rely on the same at its sole
 risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.  **<u>Release</u>** .
 Upon termination of this Agreement during the Final Due Diligence Period, if BUYER has not
 purchased the Property, BUYER shall, at the written request of SELLER, provide SELLER with
 a written release, in the nature of a quitclaim deed or similar document in recordable form,
 of its rights hereunder with respect to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6.  **<u>Surrender of Possession and Removal of Equipment</u>** . Upon termination of this Agreement, if BUYER
 has not purchased the Property, BUYER shall surrender possession of the Property, subject
 to the condition that BUYER shall have the right at any time within one year after such surrender
 or termination of this Agreement to remove all BUYER owned tools, equipment, machinery, supplies,
 fixtures, buildings, structures and other assets erected or placed on such property by BUYER.
 Title to any such BUYER not removed within the time period set forth above shall, at the
 election of SELLER, pass to SELLER.

**ARTICLE 10**

**<u>MISCELLANEOUS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.  **<u>Confidentiality</u>** .
Subject to <u>Section 10.1. I</u> each Party shall keep confidential and not use, reveal, provide or transfer to any third party any
Confidential Information without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed,
except (i) to the extent that disclosure to a third party is required by Law, (ii) information that, at the time of disclosure, is generally
available to the public (other than as a result of a breach of this Agreement or any other confidentiality agreement to which such Person
is a party or of which it has knowledge), as evidenced by generally available documents or publications, and (iii) information that was
in the disclosing Party's possession before the Effective Date (as evidenced by appropriate written materials) and was not acquired
directly or indirectly from the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1. Notwithstanding <u>Section 10.1</u> Confidential Information may be disclosed without consent to (i) a consultant, contractor, subcontractor, officer,
director or employee of a Party or any of their respective Affiliates that has a bona fide need to be informed of the Confidential Information,
(ii) any third party to whom the disclosing Party contemplates a permitted transfer of its interest in the Property or this Agreement,
(iii) any actual or potential lender, underwriter or investor for the sole purpose of evaluating whether to make a loan to Or an investment
in the disclosing Party, or (iv) in connection with a press release or public announcement under <u>Section 10.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2. As
to any disclosure under <u>clause (i), (ii)</u> or <u>(iii)</u> of <u>Section 10.1.1</u> (i) the disclosing Party shall give notice to
the other Party concurrently with the making of the disclosure, (ii) only such Confidential Information as the recipient has a legitimate
business need to know shall be disclosed, (iii) the recipient shall first agree in writing to protect the Confidential Information from
further disclosure to the same extent as the Party is obligated under <u>Section 10.1,</u> and (iv) the disclosing Party shall be responsible
and liable for any use or disclosure by any such recipient that would constitute an impermissible use or disclosure by the disclosing
Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3. A
Party shall continue to be bound by <u>Section 10.1</u> until the earlier of (i) the date that is 2 years after the ter <u>min</u> ation
of this Agreement, and (ii) the purchase of the Property by BUYER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.  **<u>Public Announcements</u>** . Any Party may issue any press release or make any public disclosure
 concerning this Agreement or any Confidential Information that it believes in good faith
 is required by applicable Law or any listing or trading agreement concerning its publicly
 traded securities or the publicly traded securities of any of its Affiliates; *provided* that if a Party intends to issue such a press release or make such a disclosure, it shall
 use commercially reasonable efforts to advise the other Party before issuing the press release
 or making the disclosure. Except as provided in the previous sentence, no Party or any of
 its Affiliates shall issue any press release or make any public announcement relating to
 this Agreement or any Confidential Information without the prior written approval of the
 other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.  **<u>Headings</u>** .
 The subject headings of the Articles, Sections and subsections of this Agreement and the
 Exhibits to this Agreement are included for purposes of convenience only, and shall not affect
 the construction or interpretation of any of their provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.  **<u>Waiver</u>** .
 Except for waivers specifically provided for in this Agreement, rights under this Agreement
 may not be waived except by an instrument in writing signed by the Party to be charged with
 the waiver. The failure of a Party to insist on the strict performance Of any provision of
 this Agreement or to exercise any right, power or remedy upon a breach of this Agreement
 shall not constitute a waiver of any provision of this Agreement or limit the Party's
 rights thereafter to enforce any provision or exercise any right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.  **<u>Amendment</u>** .
 No amendment, restatement, modification, or supplement of or to this Agreement shall be valid
 unless it is made in a writing duly executed by each Party, which writing specifically indicates
 that it is amending, restating, modifying or supplementing this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.  **<u>Severability</u>** .
If at any time any covenant or provision contained in this Agreement is deemed in a final ruling of a court or other body of competent
jurisdiction to be invalid or unenforceable, such covenant or provision shall be considered divisible and shall be deemed immediately
amended and reformed to include only such portion of such covenant or provision as such court or other body has held to be valid and
enforceable. Such covenant or provision, as so amended and reformed, shall be valid and binding as though the invalid or unenforceable
portion had not been included in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.  **<u>Force Majeure</u>** . The obligations of BUYER shall be suspended to the extent and for the period that performance is prevented in whole
or in part by a Force Majeure Event. BUYER shall promptly give notice to SELLER of the Force Majeure Event and the suspension of performance,
stating in the notice the nature of and the reasons for the Force Majeure Event and its estimated duration. BUYER shall resume performance
as soon as reasonably possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8.  **<u>Rules of Construction</u>** . Each Party acknowledges that it has been represented by counsel during the negotiation, preparation and execution
of this Agreement. Each such Party therefore waives the application of any Law or rule of construction providing that ambiguities in
an agreement or other document shall be construed against the drafter of the agreement or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9.  **<u>Governing Law</u>** . This Agreement, and the rights and liabilities Of the Parties under this Agreement, shall be governed by and interpreted
in accordance with applicable federal Laws and the Laws of the State of Idaho.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10.  **<u>Waiver of Jury Trial: Consent to Jurisdiction</u>** . THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING, WHETHER
NOW EXISTING OR ARISING IN THE FUTURE, ARISING UNDER OR RELATING TO THIS AGREEMENT OR OPERATIONS ON THE PROPERTY, AND WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE. EACH PARTY AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS <u>SECTION 10.10</u> WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT IRREVOCABLY TO WAIVE A TRIAL BY JURY. Each party agrees and consents to
be subject to the exclusive jurisdiction of the Federal and State courts located in the State of Idaho and their appellate courts in
any action or proceeding seeking to enforce any provision of or based on any right arising under or relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11.  **<u>Further Assurances</u>.** Each Party agrees to take from time to time such actions and execute such additional instruments as may be reasonably
necessary or convenient to implement and carry out the intent and purpose of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12.  **<u>No Third Party Beneficiaries</u>** . Except to the extent specifically provided in this Agreement
 with respect to the SELLER Indemnified Parties and the BUYER Indemnified Parties (who are
 express third party beneficiaries of this Agreement solely to the extent provided in this
 Agreement), this Agreement is for the sole benefit of the Parties, and no other Person (including
 any creditor of any Party), is intended to be a beneficiary of this Agreement or shall have
 any rights under this Agreement. No Person (including any third party beneficiary) other
 than a Party shall have the right to approve any amendment or modification of, or waiver
 under, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13.  **<u>Entire Agreement</u>.** This Agreement contains the entire understanding Of the Parties with respect
 to the subject matter of this Agreement, and supersedes all prior agreements, negotiations
 and understandings relating to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14.  **<u>Parties in Interest; Assignment</u>** : This Agreement shall inure to the benefit of the permitted
 successors and permitted assigns of the Parties, and shall be binding upon the successors
 and assigns of the Parties (whether or not permitted). The rights, powers, privileges, and
 interests of a Party under this Agreement shall not be assigned, transferred, pledged or
 encumbered in whole or in part by either Party, without the prior written consent of the
 non-assigning Party, which consent shall not be unreasonably withheld or delayed; provided
 however, that any Person to whom any rights, powers, privileges or interests under this Agreement
 are assigned shall agree in writing to be bound by all the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15.  **<u>Other Business Opportunities</u>.** This Agreement is, and the rights and obligations of the Parties are, strictly limited to the matters
provided for in this Agreement. Each party shall have the free and unrestricted right to independently engage in and receive the full
benefits Of any and all business ventures Of any sort whatever, whether or not competitive with the matters contemplated hereby, without
consulting the other or inviting Or allowing the other to participate therein. The doctrines of "corporate opportunity" or
"business opportunity" shall not be applied to any Other activity, venture, or operation Of either party, whether adjacent
to, nearby, or removed from the Property, and neither Party shall have any obligation to the other with respect to any to acquire
any interest in any property outside the Property at any time, or within the Property after termination Of this Agreement, regardless
Of whether the incentive or opportunity of a Party to acquire any such property interest may be based, in whole or in part, upon information
learned during the course Of operations or activities under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16.  **<u>No Implied Covenants</u>** . No implied term, covenant, condition or provision of any kind
 whatsoever shall affect any Party's rights and obligations under this Agreement, including
 rights and obligations with respect to exploration, development, mining, processing and marketing
 of minerals, and the only terms, covenants, conditions Or provisions that shall in any way
 affect the Parties' respective rights and obligations shall be those expressly set
 forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.17.  **<u>No Partnership</u>** . Nothing contained in this Agreement shall be deemed to constitute either
 Party the partner of the other, nor, except as otherwise herein expressly provided, to constitute
 either Party the agent or legal representative of the other, nor to create any fiduciary
 relationship between them. The Parties do not intend to create, nor shall this Agreement
 be construed to create, any mining, commercial, tax or other partnership. Neither Party shall
 have any authority to act for or to assume any obligation or responsibility on behalf of
 the other Party, except as Otherwise expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.18.  **<u>Memorandum for Recording</u>** <u>.</u> Simultaneous with the execution of this Agreement, the Parties agree to execute for recording purposes
a written Short Form of Exploration and Development Agreement, suitable for recording in the State of Idaho, setting forth the basic
terms and conditions of this Agreement as necessitated by Idaho Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.19.  **<u>Counterparts</u>** .
 This Agreement may be executed in multiple counterparts, and all such counterparts taken
 together shall constitute the same document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.20.  **<u>Rule Against Perpetuities</u>** . Any right to acquire any interest in real or personal property
 under this Agreement must be exercised, if at all, so as to vest such interest in the acquirer
 within 21 years after the Effective Date of this Agreement.

**[Signatures On Next Page]**

The Parties have executed this Agreement to be effective for all purposes as of the Effective Date.

---

| | | |
|:---|:---|:---|
| **Sellers:** | **Sellers:** |  |
| CuMo Molybdenum Mining Inc. | CuMo Molybdenum Mining Inc. |  |
| By: | /s/ Thomas Evans | Date: 7/6/17 |
|  | Thomas Evans, President |  |
| Western Geosciences Inc. | Western Geosciences Inc. |  |
| By: | /s/ Thomas Evans | Date: 7/6/17 |
|  | Thomas Evans, President |  |
| Thomas Evans | Thomas Evans |  |
| By: | /s/ Thomas Evans | Date: 7/6/17 |
|  | Thomas Evans |  |

---

**NOTARIZED ACKNOWLEDGEMENTS SELLERS**

State of Nevada County of Mineral

On this 6 of July, 2017, before me, a Notary Public in and for said county and state, personally appeared Thomas Evans, known to me and who acknowledged that he executed the attached Mining Claims Agreement.

---

| | |
|:---|:---|
|  | /s/ Tammy Hamrey |
| [Notary Seal] | Notary Public |

---

My commission Expires <u>9/10/19</u>

**Buyers:**

Idaho CuMo Mining Corporation

---

| | | |
|:---|:---|:---|
| By: | /s/ Shaun Dykes | Date: July 18, 2017 |
|  | Shaun Dykes |  |
|  | President |  |

---

American CuMo Mining Corporation

---

| | | |
|:---|:---|:---|
| By: | /s/ Shaun Dykes | Date: July 18, 2017 |
|  | Shaun Dykes |  |
|  | President |  |

---

**NOTARIZED ACKNOWLEDGEMENTS BUYER**

Province of British Columbia City of Coquitlam

On this 18 of July, 2017, before me, a Notary Public in and for said county and state, personally appeared Shaun Dykes, known to me and who acknowledged that he executed the attached Mining Claims Agreement.

---

| | |
|:---|:---|
|  | /s/ James L. Robinson |
| [Notary Seal] | Notary Public |

---

My commission Expires <u>[British Columbia Notary Public]</u>

EXHIBIT A

<u>Properly Description</u>

1. <u>Property</u>

<u>Claims in name of CuMo Molybdenum Mining Inc.</u>

---

| | | |
|:---|:---|:---|
| **Claim** | **BLMID** | **County** |
| CUMO#I | 188031 | 201255 |
| CUMO#2 | 188032 | 201256 |
| CUMO#3 | 188033 | 201257 |
| CUMO#4 | 188034 | 201258 |
| *CUMO#S* | 188035 | 2012S9 |
| CUMO#6 | 188036 | 201260 |
| CUMO#7 | 188037 | 201261 |
| CUMO#8 | 188038 | 201262 |
| CUMO#62 | 188205 | 202147 |
| CUMO-/163 | 188206 | 202148 |
| CUMO#64 | 188207 | 202149 |
| CUMO *#65* FRACT. | 188208 | 202150 |
| CUMO#66 | 188209 | 202151 |
| CUMO #67 FRACTION | 188210 | 202152 |
| CUMO #68 F'RACT. | 188211 | 202153 |
| CUMO#69FR. | 188212 | 202154 |
| CUMO #70 F'RACT. | 188213 | 202155 |
| CUMO#71 | 188214 | 202156 |
| CUMO#7Z | 188215 | 202157 |
| CUMO#73 | 188216 | 202158 |
| CUMO#74 | 188217 | 202159 |
| CUMO#75 | 188218 | 202160 |
| CUMO#76 | 188219 | 202161 |
| CUMO#77 | 1882.20 | 202162 |
| CUMO#78 | 188221 | 202163 |
| CUMO#79 | 188222 | 202164 |
| CUMO#80 | 188223 | 20216S |
| CUMO#81 | 188224 | 202166 |
| ClJM0#82 | 188225 | 202167 |
| CUMO#83 | 188226 | 202168 |
| CUMO#84 | 188227 | 202169 |
| CUMO#85 | 188228 | 202271 |
| CUMO#86 | 188229 | 2022n |
| CUMO#87 | 188230 | 202273 |
| CUMO#88 | 188231 | 202274 |

---

---

| | | |
|:---|:---|:---|
| **Claim** | **BLMID** | **County** |
| CUMO#89 | 188232 | 202275 |
| CUMO#90 | 188233 | 202276 |
| CUMO#91 | 188234 | 202277 |
| CUMO#92 | 188235 | 202278 |
| CUMO#93 | 188236 | 202279 |
| CUMO#94 | 188237 | 202281 |
| CUMO#95 | 188238 | 202282 |
| CUMO#98 | 188239 | 202366 |
| CUMO#99 | 188240 | 202367 |
| CUMO#IOO | 188241 | 202368 |
| CUMO#I0I | 188242 | 202369 |
| CUMO#107 Fraction | 188244 | 202371 |
| CUMOlil09 | 188246 | 202373 |
| CUMO#l21 | 188258 | 202283 |
| CUMO #122 | 188259 | 202284 |
| CUMO#123 | 188260 | 202285 |
| CUMO#l24 | 188283 | 202286 |
| CUMO#l2S | 188261 | 202287 |
| CUMO#l26 | 188262 | 202288 |
| CUMO#l27 | 188263 | 202289 |
| CUMO#!28 | 188264 | 202290 |
| CUMO#132 | 188268 | 202294 |
| CUMO#133 | 188269 | 202295 |
| CUMO#l34 | 188270 | 202296 |
| CUMO#135 | 188271 | 202297 |
| CUMO#136 | 188272 | 202298 |
| CUMO#137 | 188273 | 202299 |
| CUMO #138 | 188274 | 202300 |
| CUMO #139 | 188275 | 202301 |
| CUMO#l40 | 188276 | 202302 |
| CUMO#l41 | 188277 | 202303 |
| CUMO#142 | **188278** | 202304 |
| CUMO#143 | 188279 | 202305 |
| CUMO #)44 | 188280 | 202306 |
| CUMO#145 | 188281 | 202307 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Claim** | **BLMIO** | **County** | **Claim** | **SLM ID** | **County** |
| CUMO#l46 | 188282 | 202308 | CUMO#l61 | 188491 | 202322 |
| CUMO#147 | 188284 | 202309 | CUMO #176 FRACT. | 188306 | 202324 |
| CUMO#l48 | 188285 | 202310 | CUMO #177 FRACT. | 188307 | 202325 |
| CUMO "149 FRACT. | 188286 | 202311 | CUMO#178 | 188308 | 202326 |
| CUMO#l50 | 188257 | 202312 | CUMO#l79 | 188309 | 202327 |
| CUMO # I*5*I FRACT. | 188287 | 202313 | CUMO#180 | 188310 | 202328 |
| CUMO#152 | 188288 | 202314 | CUMO i-181 | 188311 | 202329 |
| *CUMO#l53* | 188289 | 202315 | CUMO #182 FRACT. | 188312 | 202330 |
| CUMO#l54 | 188290 | 202316 | CUMO #183FRACT. | I 88313 | 202331 |
| CUMO#l55 | 188291 | 202317 | CUMO#l84 | 188314 | 202332 |
| CUMO#l56 | 188292 | 202318 | CUMO#l85 | 188315 | 202333 |
| CUMO#157 | 188293 | 202319 | CUMO#186 | 188316 | 202334 |
| CUMO#158 | 188294 | 202320 | CUMO #187 | 188317 | 202335 |
| CUMO#159 | 188295 | 202323 | CUMO #188FRACT. | 188318 | 202336 |
| CUMO#l60 | 188486 | 202321 |  |  |  |

---

**<u>Claims In name of Western Geoscience Inc.</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Claim** | **BLMIO** | **County** | **Claim** | **BLMID** | **County** |
| NEWCUMO#9 | 187938 | 199561 | NEWCUMO#36 | 187965 | 199586 |
| NEWCUMO#I0 | 187939 | 199562 | NEWCUMO#37 | 187966 | 199587 |
| NEWCUMO#II | 187940 | 199563 | NEWCUMO#38 | 187967 | 199588 |
| NEWCUMO#l2 | 187941 | 199564 | NEWCUMO#39 | 187968 | 199589 |
| NEWCUMO#l3 | 187942 | 199565 | NEWCUMO#40 | 187969 | 199590 |
| NEWCUMO#14 | 187943 | 199566 | NEWCUMO#41 | 187970 | *199591* |
| NEWCUMO#l5 | 187944 | 199567 | NEWCUMO#42 | 187971 | 199592 |
| NEWCUMO#16 | 187945 | 199568 | NEWCUMO#43 | 187972 | 199593 |
| NEWCUMO#l7 | 187946 | 199569 | NEWCUMO#44 | 187973 | 199594 |
| NEWCUMO#l8 | 187947 | 199570 | NEWCUMO#45 | 187974 | 199595 |
| NEWCUMO#l9 | 187948 | 199571 | NEWCUMO#46 | 187975 | 199596 |
| NEW Cl/MO #20 | 187949 | *1995n* | NEWCUMO1147 | 187976 | 199597 |
| NEWCUMO#21 | 187950 | 199573 | NEWCUMO#48 | 187977 | 199598 |
| NEWCUMO#22 | 187951 | 199574 | NEIVCUMO#49 | 187978 | 199599 |
| NEWCUMO#23 | 187952 | 199774 | NEWCUMO/150 | 187979 | 199600 |
| NE\VCUMO#24 | 187953 | 199775 | NEWCUMO#51 | 187980 | 199601 |
| NEWCUMO#25 | *181954* | 199575 | NEWCUMO#52 | 187981 | 199602 |
| NEWCUMO#26 | 187955 | 199576 | NEWCUMO#S3 | 187982 | 199603 |
| N'EW CUMO #27 | 187956 | 199577 | NEWCUMO#S4 | 187983 | 199604 |
| N'EWCUMO#28 | 187957 | 199578 | NEW CUMO #55 | 187984 | 199605 |
| NEWCUMO#29 | 187958 | 199579 | NEW CUMO*1156* | 187985 | 199606 |
| NEWCUMO#J0 | 187959 | 199580 | NEWCUMO#57 | 187986 | 199607 |
| NEWCUMO#JI | 187960 | 199581 | NEWCUMO#58 | 187987 | 199608 |
| NEWCUMO#32 | 187961 | 199582 | NEWCUMO#59 | 187988 | 199609 |
| NEW Cl/MO /f33 | 187962 | 199583 | NEWCUMO#60 | 187989 | 199776 |
| NEWCUMO#34 | 187963 | 199584 | NEWCUMO#61 | 187990 | 199777 |
| NEWCUMO#35 | 187964 | 199585 |  |  |  |

---

## Exhibit 10.5

**Exhibit 10.5**

**<u>SPECIAL WARRANTY DEED</u>**

**FOR VALUE RECEIVED**

**AMERICAN CUMO MINING CORPORATION, FKA MOSQUITO CONSOLIDATED GOLD MINES, LTD., a British Columbia corporation**

the Grantor, does hereby grant, bargain, sell and convey unto

**IDAHO CUMO MINING CORPORATION, an Idaho corporation**

whose address is **638 Millbank, Vancouver, B.C. V52 4B7,** the Grantee, the following described premises, in Boise County, Idaho, TO WIT:

The following patented lode mining claims located in Section 13 Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey No. 1706, dated November 11, 1902 (a copy of which is attached hereto as Exhibit A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Blackbird

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Red Flag

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Enterprise

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Enterprise Fraction

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Commonwealth

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Baby Mine

The above claims consist of approximately 99.419 acres.

TO HAVE AND TO HOLD the said premises, with their appurtenances unto the said Grantee, heirs and assigns forever. And the said Grantor does hereby covenant to and with the said Grantee, that it is the owner in fee simple of said premises; that no encumbrances were initiated during the ownership of the undersigned nor is the undersigned aware of any such.

And that Grantor will warrant and defend the same against every person lawfully claiming by, through, or under Grantor, but not otherwise.

Dated this 31 day of July, 2013.

AMERICAN CUMO MINING CORPORATION

---

| | |
|:---|:---|
| By: | /s/ Shaun Dykes |
|  | Shaun Dykes |
|  | Chief Executive Officer |

---

Province of British Columbia

County of Vancouver

On this 31 day of July, 2013, before me the undersigned, a Notary Public in and for said province, personally appeared SHAUN DYKES, known or identified to me to be the person whose name is subscribed to the within instrument as the Chief Executive Officer of American Cumo Mining Corporation, and acknowledged to me that he executed the same as such Officer.

/s/ Brett Kaztetsu

Notary Public Name: Brett Kaztetsu <br> Residing at: West Vancouver, BC <br> My commission BC is for life

[Notary Seal and Stamp]

## Exhibit 10.6

**Exhibit 10.6**

LOAN AGREEMENT

THIS LOAN AGREEMENT ("Agreement") is made and entered into as of October 31, 2014, by and between Idaho CuMo Mining Corp, an Idaho corporation ("Borrower") and La Familia Il LLC, a California limited liability company ("Lender").

1. THE LOAN. This Agreement is made with reference to the following terms and conditions:

1.1 Lender shall make a new loan of up to Two Hundred Fifty Thousand Dollars $250,000.00 (the "Loan") to Borrower, to be evidenced by a promissory note, including each amendment, extension and replacement (the "Note"). The Loan shall fund in two installments of $125,000.00 each upon fulfillment of the Conditions Precedent to Lender's funding set forth below.

1.2 The Note shall be secured by, among other things, a first position deed of trust (the "Deed of Trust") covering real property interests and patented mining claims located in Boise County Idaho as more fully described in a Deed of Trust of even date (the "Property"). This Agreement, the Note, the Deed of Trust, and all other documents and instruments evidencing, securing or pertaining to the Loan are hereinafter collectively referred to as the "Loan Documents". In addition, in the event Lender or any Lender affiliate becomes a subscriber to the Silver Stream Debentures as defined and described in the attached Exhibit "A" (the "Debentures"), such Debentures shall be included in the definition of Loan Documents from and after any such subscription.

1.3 The Deed of Trust is intended by the parties to secure all of Borrower's obligations to Lender under each and any of the Loan Documents, and shall remain as security upon the conversion of the Loan as described below, or repayment of the Loan in the event that Lender or any of Lender's affiliates become subscribers to the Debentures.

2. CONDITIONS PRECEDENT TO CLOSING OF THE LOAN.

2.1 <u>Initial $125.000 Funding</u>. Before Lender is obligated to disburse all or any portion of the Loan, Lender must have received this Agreement, the Note, the Deed of Trust and other documentation, certifications, opinions of counsel and information as may be required by Lender, and (ii) proof of recording of the Deed of Trust;

2.2 <u>Subsequent Advance of $125.000.0()</u>. Borrower has advised Lender that there are clouds on Borrower's title to the Property. Borrower has committed to proceeding with a quiet title action in Boise County Idaho, to clear all title matters (the "Quiet Title Action") such that Alliance Title will issue a One Million Dollar title insurance policy insuring the first position priory of the Deed of Trust (the "Title Policy"). Upon issuance of the Title Policy Lender shall advance the Subsequent Advance of $125,000.00.

3. REPRESENTATIONS AND WARRANTIES OF BORROWER. Borrower represents and warrants (and each request for a disbursement of the proceeds of the Loan shall be deemed a representation and warranty on the date of such request) that:

3.1 Borrower is an Idaho corporation and is the sole fee owner of the Property and is duly qualified and in good standing to conduct business in each jurisdiction in which Borrower's business is conducted.

3.2 Authority/No Conflict. The execution, delivery and performance of the Loan Documents are within Borrower's power, are legal, valid and binding obligations of Borrower, and are not in conflict with the terms of any law, indenture, agreement or undertaking to which Borrower is a party or by which Borrower or the Property is bound or affected. Borrower is authorized to own and operate the Property.

3.3 No Defaults. There is no event which is, or with notice or lapse of time or both would be, an Event of Default (as defined in the "DEFAULTS" Section below).

3.4 No Material Adverse Effect. Borrower is not aware of any fact, occurrence or circumstance which Borrower has not disclosed to Lender in writing which has, or could reasonably be expected to have, a material adverse effect on the Property, Borrower's ability to repay the Loan or perform its obligations under the Loan Documents, or the validity, priority, or enforceability of the Deed of Trust or other Loan Documents.

3.5 Financial Statements. All financial statements and financial information and other information, documentation and other materials provided to Lender are true, correct and complete in all respects and no materially adverse change has occurred in the financial condition reflected in any such financial statement since the date shown thereon.

3.6 Compliance with Law. Borrower has complied in all material respects with all laws, regulations, restrictions, requirements, permits, agreements, covenants or encumbrances affecting Borrower or the Property or the Debentures (collectively, the "Requirements"). Borrower has received no notices of violations of any Requirements.

3.8 Broker Negotiated Loan. Borrower represents and warrants to lender that the loan evidenced hereby was negotiated by William Van Roo, a California licensed real estate broker within the meaning of California Constitution, Article XV and Borrower agrees and intends that the loan evidenced hereby is to be secured, in whole or in part, by a lien on real property, and that said loan is, therefore, exempt from any interest rate limitations which may be imposed by California law.

4. COVENANTS OF BORROWER. Borrower agrees, so long as the Loan is outstanding and until full and final payment of all sums outstanding under any Loan Document, unless otherwise waived by Lender in writing, as follows:

4.1 Mining Claims.

(a) Borrower shall perform all obligations required to maintain its patented mining claims on the Property.

(b) Borrower shall commence the Quiet Title Action within 30 days of signing and diligently prosecute such action to its conclusion such that the Title Policy may issue from Alliance Title.

4.2 Notices. Borrower shall give written notice to Lender within 15 days any of the following:

(a) Any litigation or arbitration proceeding affecting Borrower or the Property or the Debentures;

(b) Any material dispute which may exist between Borrower and any government regulatory body or law enforcement body or which may affect the Property or the Debentures;

(c) Any Event of Default or any event which, upon notice, or lapse of time, or both, would become an Event of Default;

(d) Any other matter which has resulted or is likely to result in a material adverse change in (i) the physical condition or operation of the Property, (ii) the financial condition of Borrower, or (iii) Borrower's ability to perform in a timely manner any of Borrower's obligations under any of the Loan Documents;

e) Any change in Borrower's name, business structure; and

(f) The Property or Borrower's business fails to comply with any applicable Requirement.

4.3 Negative Covenants. Without Lender's prior written consent, not to be unreasonably withheld, Borrower shall not:

(a) engage in any business activities substantially different from Borrower's present business;

(b) lease or dispose of all or a substantial part of the Borrower's assets;

(c) (c) liquidate or dissolve Borrower's business; or

(d) enter into any consolidation, merger, joint venture, syndication or other combination affecting, involving or relating to the Property or the Debentures.

4.4 Performance of Acts. Upon request by Lender, Borrower shall perform all acts which may be necessary or advisable to perfect any lien or security interest provided for in the Loan Documents or to carry out the intent of the Loan Documents. Borrower shall obtain, preserve and maintain all rights, privileges and franchises necessary or desirable for the operation of the Property and the conduct of Borrower's business.

5. DEFAULTS. The occurrence of any of the following events ("Events of Default") shall terminate any obligation on the part of Lender to make or continue the Loan and automatically, unless otherwise provided under the Loan Documents, shall make all sums of interest and principal and any other amounts owing under the Loan Documents immediately due and payable, without notice of default, presentment or demand for payment, protest, notice of nonpayment or dishonor, or any other notices or demands:

5.1 Failure to Pay According to Note and Other Loan Documents. Borrower shall default on the due and punctual payment of the principal or the interest on the Note or any obligations of the Loan Documents;

5.2 Failure to Perform Under the Loan Documents. Borrower shall default in the due performance or observance of any condition, covenant or obligation of the Loan Documents; or

5.3 First Lien. Lender fails, for any reason, to have an enforceable first lien on or security interest in the Property given as security for the Loan.

5.4 Borrower is determined not to have title to the Property by any court of competent jurisdiction.

5.5 Borrower violates any due on sale or encumbrance provision of the Deed of Trust.

If an Event of Default occurs under this Agreement, Lender may exercise any right or remedy which it has under any of the Loan Documents, or which is otherwise available at law or in equity or by statute, and all of Lender's rights and remedies shall be cumulative.

6. MISCELLANEOUS.

6.1 Notices. Any notices or other communications provided for or allowed hereunder shall be effective only when given by one of the following methods and addressed to the respective party at the address given with the signatures at the end of this Agreement and shall be considered to have been validly given: (i) upon delivery, if delivered personally, (ii) upon receipt, if mailed first class postage prepaid, with the United States Postal Service, (iii) on the next business day if sent by overnight courier service of recognized standing, and (iv) upon telephone confirmation of receipt, if telecopied.

6.2 Waivers. Any forbearance or failure or delay by Lender in exercising any right, power or remedy hereunder shall not be deemed a waiver thereof and any single or partial exercise of any right, power or remedy shall not preclude the further exercise thereof. No waiver shall be effective unless it is in writing and signed by an officer of Lender.

6.3 Lender's Expenses; Rights of Lender. Borrower shall promptly pay to Lender, upon demand, with interest thereon from the date of demand at the rate applicable from time to time under the Note, reasonable attorneys' fees, and all costs and other expenses paid or incurred by Lender in exercising its rights or remedies provided for in this Agreement or any other Loan Document, and payment thereof shall be secured by the Deed of Trust. If at any time Borrower fails to do any of the things provided herein, Lender shall have the right, but not the obligation, to do the same but at the expense of Borrower.

6.4 Successors and Assigns. This Agreement may not be assigned by Borrower without the prior written consent of Lender. Subject to the foregoing restriction, this Agreement shall inure to the benefit of Lender and its successors and assigns, and shall bind Borrower and its successors and assigns. Lender shall have the right, in its sole discretion, to assign all or any part, either outright or through participating interests, of Lender's rights in the Loan and the Loan Documents. Lender is authorized to disclose to any prospective assignee or participant in the Loan any and all information in the possession of Lender in respect of Borrower, the Property and the Loan.

6.5 Governing Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to its choice of law provisions.

6.6 Entire Agreement. This Agreement and all of the other Loan Documents constitute the entire understanding between the parties hereto with respect to the subject matter hereof, superseding all prior written or oral understandings. This Agreement and the Loan Documents may be modified, amended or terminated only in a writing signed by all parties hereto.

6.7 Headings. The various headings of this Agreement are included for reference only and shall not limit or otherwise affect the meaning hereof.

6.8 Severability. Should any one or more provisions of this Agreement be determined to be illegal or unenforceable, all other provisions nevertheless shall be effective. In the event of any conflict between the provisions of this Agreement and the provisions of the Note, the provisions of the Note shall prevail.

6.9 Counterparts. This Agreement may be executed in 2 or more counterparts, each of which shall be deemed an original but taken together shall be one and the same document.

6.10 Disbursement Schedule. The proceeds of the Loan shall be disbursed in accordance with the terms set forth above upon satisfaction of the required conditions precedent to Lender's sole satisfaction.

6.11 Special Conditions. The Special Conditions set forth on Exhibit A attached hereto are hereby incorporated herein by this reference.

6.12 Contract to Make a Loan. The parties agree that the provisions of this Section 2.5 constitute a contract to make a loan (extend debt financing or financial accommodations) within the meaning of 11 U.S.C. Section 365(c)(2) and Section 365(e)(2)(B).

6.13 Broker Negotiated Loan. The Borrower acknowledges that the Loan was negotiated by a licensed California Real Estate Broker. It is the intention of the Borrower and the Lender to comply with any application usury law. In furtherance of this intention of Borrower and Lender, all agreements between Borrower and Lender are hereby expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid to Lender for the use, forbearance, or detention of money under this Note exceed the maximum permissible under applicable law. If, from any circumstance whatsoever, fulfillment of any provision hereof shall be prohibited by law, the obligation to be fulfilled shall be reduced to the maximum not so prohibited, and if from any circumstances Lender should ever receive as interest an amount which would exceed the highest lawful rate, such amount as would be excessive interest shall at Lender's option be applied to the reduction of the principal of this Note and not to the payment of interest or refunded to Borrower.

6.14 Interest from Closing. Interest shall commence to accrue under this Note upon the disbursement by Lender of Loan proceeds.

6.15 Dispute Resolution, Arbitration and Jury Waiver. All claims, disputes, and other matters in question between the Parties arising out of; or relating to this Agreement or any of the Loan Documents, or the breach thereof, will be decided by arbitration in accordance with the Rules of the American Arbitration Association then in effect, but subject to the limitations of this section. This Agreement so to arbitrate and any other agreement or consent to arbitrate entered into in accordance herewith as provided in this section will be specifically enforceable under the prevailing law of any court having jurisdiction.

Notice of the demand for arbitration will be filed in writing with the other party to the agreement and with the American Arbitration Association with hearings to be conducted in San Jose, CA unless otherwise agreed to by the parties. The demand for arbitration will be made within a reasonable time after the claim, dispute, or other matter in question has arisen, and in no event shall any such demand be made after the date when institution of legal or equitable proceedings based on such claim, dispute, or other matter in question would be barred by the applicable statute of limitations. The parties specifically agree that they desire the arbitrator selected pursuant to this contract to have the power to decide whether what is put before the arbitrator is actually arbitrable under this contract and therefore agree that the arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of the arbitration agreement.

The award rendered by the arbitrators will be final, judgment may be entered upon it in any court having jurisdiction thereof, and will not be subject to modification or appeal except to the extent permitted by law.

No provision of this Agreement shall limit the right of any Party to (a) exercise self-help remedies including, without limitation, set off, (b) foreclose against or sell any collateral, by power of sale or otherwise or (c) obtain or oppose provisional or ancillary remedies from a court of competent jurisdiction before, after or during the pendency of the Arbitration. The exercise of, or opposition to, any such remedy does not waive the right of any Party to Arbitration pursuant to this Agreement.

Further, the parties agree that in the event that the arbitration provision set forth above is deemed unenforceable, or determined not to apply to the matter in controversy despite the express intention of the parties, the parties elect to proceed as follows: All claims, disputes or controversies, that are not subject to arbitration, including any and all questions of law or fact relating thereto, shall, at the written request of any party, be determined by Reference (the "Reference") pursuant to Section 638 of the California Code of Civil Procedure, as the same may be amended from time to time, except as set forth herein.

EACH OF THE PARTIES, FOR ANY AND ALL ACTIONS BETWEEN THEM ARISING IN ANY MANNER FROM ANY OF THE TRANSACTIONS CONTEMPLATED, TO THE FULL EXTENT PERMITTED BY LAW, EACH HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PRO-CEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION, BROUGHT BY ANY OF THEM AGAINST THE OTHER BASED UPON, ARISING OUT OF, OR TN ANY WAY RELATING TO OR IN CONNECTION WITH THE TRANSACTIONS DESCRIBED OR ANY COURSE OF CONDUCT, ACT, OMISSION, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PERSON, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THIS WAIVER OF RIGHTS TO A JURY TRIAL IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT.

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| | |
|:---|:---|
| /s/ | /s/ |
| Lender | Borrower |

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**Each Party signing below acknowledges that they have carefully read this Agreement, that they fully understand the terms of the Agreement, agree to be bound to its terms and conditions, and has received an exact copy of this Agreement, as executed.**

IN WITNESS WHEREOF, the parties have executed this Loan Agreement as of the date first hereinabove written.

BORROWER:

Idaho CuMo Mining Corp,

An Idaho corporation

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| | |
|:---|:---|
| By: | /s/ Shaun Dykes |
| Its: | President |
| By: | /s/ Shaun Dykes |
| Its: | Secretary & Tresurer |

---

(Execution by two corporate officers required)

LENDER:

La Familia II, LLC

A California limited liability company

---

| |
|:---|
| /s/ Marin Menne |
| Martin Menne, its Managing Member |

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EXHIBIT A TO LOAN AGREEMENT <br> SPECIAL CONDITIONS

This Exhibit A is attached to and made a part of that certain Loan Agreement by and between Idaho CuMo Mining Corp, an Idaho corporation ("Borrower") and La Familia, LLC, a California limited liability company ("Lender"):

Borrower's intends to proceed with development of Borrower's CuMo Project, a large molybdenum, copper and silver property located in Idaho, U.S.A. (including the Property described in the Deed of Trust). In connection with such development the Borrower intends to offer Silver Stream Convertible Debentures Up to US$25,000,000 Convertible Debentures with a Total 100 Units at US$250,000 per Unit (the "Silver Stream Debentures"), as outlined in the Term Sheet and Subscription Agreement and documents attached hereto as Schedules 1 through 4.

At the Lender's option the Principal and all accrued interest thereon is convertible into a Unit of the Silver Stream Debenture offering, under the terms as laid out in the Silver Stream Debentures as approved by the regulatory authorities.

Lender shall have the continuing non revocable right until the maturity date of the Loan Agreement, at its sole option, to purchase one ounce of silver from production at

Borrowers CuMo Project (as defined and described in the attached Subscription Agreement) at a price ofUS$5 per ounce for every dollar owed by Borrower to Lender under the Loan Documents (the "Silver Right"). Lender will have the option, upon notice from any source of a decision by Borrower to place the CuMo Project into production, to convert any balance due under the Note into the Silver Right.

**FIRST AMENDMENT TO LOAN DOCUMENTS**

This first amendment (this "First Amendment") to loan documents, is entered into by and between IDAHO CUMO MINING CORP., an Idaho corporation ("Borrower") and LA FAMILIA Il LLC, a California limited liability company ("Lender") (each, a "Party"; collectively, the "Parties"), on March 26, 2015, with respect to the "Loan Documents" defined in Sections l , 1.1, 1.2, and 1.3 of that certain Loan Agreement entered into by and between the Parties on October 31, 2014.

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to modify the Loan documents as follows:

l . Lender shall advance to Borrower Fifty Thousand Dollars ($50,000.00) of the second One Hundred Twenty-Five Thousand Dollar ($125,000.00) "installment" of the Loan, as described more fully in Section 1.1 of that certain Loan Agreement between the parties dated October 3 1, 2014.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding any contrary language in the Loan Documents, Borrower grants to Lender a perpetual non-revocable right to purchase from Borrower one ounce (l oz) of silver for every dollar owed by Borrower to Lender under the Loan Documents (the "Silver Conversion"), up until the date at which this offering is no longer available to investors, in accordance with the TSX Venture's rules and regulation (the "Lapse Date"). The purchase price for every ounce of silver purchased by Lender under the Silver Conversion shall be Five Dollars ($5.00) per ounce regardless of the then current price of silver on the open market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding any contrary language in the Loan Documents, Borrower shall deliver to Lender (90) days written notice of either (a) Borrower's intent to repay (or prepay) any portion of sums owed by Borrower to Lender under the Loan Documents or (b) the Lapse Date. Borrower's right to repay the principal balance of obligation of the promissory note referenced in the Loan Documents is conditioned upon Borrower first giving Lender the above-referenced 90 day notice, however, after October 31, 2015, Lender's Silver Conversion rights are unconditioned, and Lender may make Silver Conversion demand(s) of Borrower at any time or times prior to the previously noticed Lapse Date, and Borrower must comply within ten (10) business days or prior to the Lapse Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A failure to proceed with production of silver in a manner which produces the Silver Right, whether before or after conversion of the principal balance of the Note into a Unit shall be a default under the terms of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Except as provided in this First Amendment, all of the terms and conditions of the Loan Documents (as previously amended, if at all), shall remain in full force and effect. In the event of a conflict between any provision of this Second First Amendment and any provision of the provisions of the Loan Documents, this First Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. This First Amendment may be executed in counterparts, with each counterpart having the same force and effect as if all Parties had signed one original document. This First Amendment (or any counterpart thereof) may also be executed by facsimile signature. Each individual executing this First Amendment on behalf of any entity represents and warrants that he or she is duly authorized to execute and deliver this First Amendment on behalf of the Party represented, and that this Party Amendment is binding upon each Party in accordance with its terms.

IN WITNESS WHEREOF, Lender and Borrower execute this First Amendment on the date first set forth above.

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| | |
|:---|:---|
| **LENDER:** | **BORROWER:** |
| La Familia Il, LLC | Idaho CuMo Mining Corp, Inc. |
| a California limited liability company | a Idaho corporation |
| /s/ Martin Menne | /s/ Shaun Dykes |
| Martin Menne, its Managing Member | Shaun Dykes, its President |

---

**SECOND AMENDMENT**

**<u>TO MORTGAGE AND OTHER LOAN DOCUMENTS</u>**

**THIS SECOND AMENDMENT TO MORTGAGE AND OTHER LOAN DOCUMENTS** (this "**Second Amendment**") is made and entered into as of January 29, 2016 (the "Amendment Effective Date"), by and between **IDAHO CUMO MINING CORPORATION, INC.**, an Idaho corporation ("Borrower"), and **LA FAMILIA Il, LLC**, a California limited liability company ("**Lender**"), with respect to the following Recitals:

**<u>R E C I T A L S</u>**

**A.** Pursuant to that certain Loan Agreement made and entered into by and between Borrower and Lender as of October 31, 2014, as amended by that certain First Amendment to Loan Agreement dated March 26, 2015 (together, the "**Loan Agreement**"), Lender has made a loan to Borrower in the original principal amount of Two Hundred Fifty Thousand Dollars ($250,000) (the "**Loan**"). The Loan is evidenced by that certain Promissory Note Secured by Mortgage, dated as of October 31, 2014, in the original principal amount of the Loan, executed by Borrower, as maker, in favor of Lender, as holder (the "**Note**") All initially-capitalized terms not otherwise defined herein shall have the meanings given such terms in the Loan Agreement

**B.** The repayment of the Note, and Borrower's performance of its obligations under the Note, are secured, inter alia, by: (i) that certain Deed of Trust dated as of October 31, 2014, executed by Borrower as Trustor and naming Lender as Beneficiary, recorded on November 14, 2014, as Instrument No. 245303 in the Official Records of Boise County, Idaho (the "**Official Records**") (the "Deed of Trust") and (ii) that certain Real Estate Mortgage dated as of March 26, 2015, executed by Borrower as Mortgagor and naming Lender as Mortgagee, recorded on March 30, 2015, as Instrument No. 246514 in the Official Records of Boise County, Idaho (the "**Official Records**") (the "**Mortgage**") and encumbering that certain real property described therein (the "**Property**").

**C.** As used herein, "**Loan Documents**" shall mean the Loan Agreement as Amended hereby, the Note as amended hereby, the Deed of Trust, the Mortgage, and all other documents securing, or executed in connection with, the Loan.

NOW THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.  **<u>Amendments to Loan Agreement</u>** . The Loan Agreement is hereby amended as
follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** The parties acknowledge that Lender has disbursed to Borrower the Two Hundred Fifty Thousand Dollars ($250,000.00) discussed in Sections 2.1 and 2.2 of the Loan Agreement. No interest has been paid by Borrower and the accrued interest is $20,672.37 as of December 31 2015.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** Within five (5) business days of full execution of this Second Amendment, and; Alliance Title issuing an endorsement to the Mortgage insuring that the Mortgage continues to secure all obligations of Borrower under the Loan Documents in First priority position, Lender will disburse to Borrower, over and above the sums Lender has already disbursed to Borrower pursuant to Section I(a) of this Second Amendment, an Additional Advance of Two Hundred Fifty Thousand Dollars ($250,000.00).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** The term "Loan" is amended to mean the total principle sum disbursed to Borrower under this Section 1 (i.e., Five Hundred Thousand Dollars ($500,000.00).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** Notwithstanding any contrary language in the Loan Documents, upon disbursement to Borrower of the Additional Advance of Two Hundred Fifty Thousand Dollars ($250,000.00) discussed in Section I(b) of this Second Amendment, the Lender shall have the option (but not the obligation) to convert and or purchase up to four (4) Units of Silver Stream Debentures (also referred to as "Stream Units" — each containing 375,000 ounces of Silver rights) for a price of $250,000 per unit upon the terms and conditions set forth in the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** In addition and as express consideration to Lender for entering into this Second Amendment and making the referenced Additional Advance Lender is granted an option until December 31, 2017 to make a "Subsequent Additional Advance" of up to an additional US$I Million Dollars to Borrower in $250,000.00 increments, each and all on the terms of the Loan Documents and in each case secured by the Mortgage. The Lender must advance US$500,000 of the $1 million on or before December 31, 2016 or the option is null and void. For each $250,000.00 increment advanced by Lender pursuant to this option Lender will then have the right to purchase an additional TWO (2) units of the silver stream at conversion for $250,000 per unit. Should Lender exercise its option to make a total Subsequent Additional Advance of US$I Million Dollars on or before December 31, 2017 Lender will then have the right to a total of Twelve (12) units of the silver stream at conversion. Specifically, should Lender make a total advances US$1.5 Million (a total of the original principal advanced, the Additional Advance made hereunder together with the optional Subsequent Additional Advances) Lender is hereby granted the irrevocable right to purchase a total of TWELVE (12) units of the silver stream at conversion for a price of $250,000 per unit The total US$1.5 Million principal together with accrued interest would be applied against the purchase of the units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.** In addition and as express consideration to Lender for entering into this Second Amendment and making the referenced Additional Advance, the Lender, in addition to all other remedies available to Lender as the Mortgagee under the Mortgage, and at law and equity, in the event that the Borrower default on its obligations, or should the 10 year term of the Note secured by the Mortgage reach maturity and the Borrower has not made a decision to place the subject property into commercial production, (thereby triggering the right to convert to silver units), the Lender, is herby expressly granted the right, but not the obligation, to elect to acquire the property described in the Mortgage (the Property) for the purchase price of the then outstanding principal balance due under the Note upon a default under the Loan Documents (an "Option"), by giving Borrower written notice of its election to so acquire the Property, following a notice of default. In the event that Lender elects to acquire the Property as outlined in this section and exercise the Option, Borrower shall execute all documents, and take all actions, which Lender deems, in its sole absolute discretion, are reasonably necessary in connection therewith. Borrower and Lender shall execute and record a memorandum in the form attached as Exhibit A upon execution of this Second Amendment. Should the Borrower make a decision to place the subject property into production and the Lender or his assignees decide not to convert to the silver units this clause granting an Option shall become null and void and the outstanding principal plus accrued interest will be paid to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.**  **<u>Amendment to Note</u>.** The Note is hereby amended
as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The term "Maturity Date" shall mean December 31 , 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The term "Advances" shall mean "Five Hundred Thousand Dollars ($500,000.00), together with the aggregate unpaid principle amount of all additional advances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Section 4(a) of the Note is hereby amended and restated as follows:

"4. PREPAYMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Debtor may prepay amounts outstanding under this Note in whole only, provided Debtor has given LaFamilia not less than five (5) Business Days' prior written notice of Debtor's intention to make such prepayment and Debtor pays to LaFamilia all of the then outstanding principal together with accrued interest thereon along with the prepayment fee due as a result. The prepayment fee shall also be due if LaFamilia, for any other reason, including acceleration or foreclosure, receives all or any portion of principal and accrued interest prior to its scheduled payment date. The prepayment fee shall be in an amount equal to the then present "Market Value" (defined as quotations for silver quoted in US Dollars as correctly published in Metal Bulletin) of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the principal sum of $500,000 through and including the Additional Advance, as described in the Loan Documents One Million Five Hundred Thousand (1 ounces of Silver less (i) the sum of Seven Million Five Hundred Thousand Dollars (equal to Five Dollars ($5.00) per ounce) ($7,500,00.00 US), and less (ii) the amount of the principal so prepaid; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for the principal sum in excess of $500,000 (if Lender makes a Subsequent Additional Advance, as described in the Loan Documents), for every $250,000 increment of such Subsequent Additional Advance, Seven Hundred Fifty Thousand (750,000) ounces of Silver less (i) the sum of Three Million Seven Hundred Fifty Thousand Dollars (equal to Five Dollars ($5.00) per ounce) ($3,750,00.00 US), and less (ii) the amount of the principal so prepaid."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The prepayment provision shall not be triggered upon a properly delivered notice to the silver debenture holders (including the Lender), that Borrower is proceeding with commercial production and the conversion to silver units has been initiated, (i.e., a conversion to the silver debenture by Lender, or the election by Lender not to proceed to convert the outstanding balance to silver debentures following the proper notice of the right to do so at a time that Borrower is proceeding with commercial production and the conversion to silver units has been initiated, shall not constitute a prepayment hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.**  **<u>Amendment to Mortgage</u>** . The Mortgage is hereby
amended as follows:

The fifth full paragraph of the Mortgage is amended and restated as follows:

"This conveyance is intended as a mortgage to secure Borrower's full performance of all of the terms and conditions of that certain <u>Loan Agreement</u> made and entered into by and between Borrower and Lender as of October 31, 2014, as amended by that certain <u>First Amendment to Loan Agreement</u> dated March 26, 2015, and that certain <u>Second Amendment to Mortgage and other Loan Documents</u> dated January 29, 2016 (together, the "**Loan Agreement**"), including, but not limited to, repayment of a Promissory Note in the principal sum of Five Hundred Thousand Dollars ($500,000.00) with interest (the "'Note"), together with any additional advances which may be made by Lender after the date hereof, in accordance with the terms of both the Note and the Loan Agreement, providing for acceleration of the due date of the principal for default (i) in the payment of interest or any installment of principal, (ii) any other default under the Loan Agreement, and providing for a reasonable attorney's fee in case of suit or action. All of the obligations of Mortgagor under the Loan Agreement (including but not limited to payment under the terms of the Note) are referred to herein as the "Indebtedness"

The following provisions are added to the Mortgage following the penultimate paragraph of the Mortgage.

Restricted Prepayment Privileges. Mortgagor may only Prepay the Note on the terms and conditions stated therein, including the payment of an agreed prepayment penalty.

No Sale Without Consent. The Mortgagor will not sell, transfer, lease, further encumber or otherwise dispose of all or any part of the real property described herein (the "Property") or any interest in the Property, or if Mortgagor is a corporation, permit a change in control, without the Mortgagee's prior written approval and if approved, without such approved purchaser, transferee or lessee entering an assumption agreement in form satisfactory to the Mortgagee. Acceptance of any payments from a purchaser, transferee or lessee or after a change in control not approved in writing will not constitute an approval or waiver by the Mortgagee.

Environmental Hazards. The Mortgagor will not use, store, release, deposit, recycle, or permit the presence of hazardous substances on the Property, which includes but not limited to asbestos, PCBs, radioactive materials, gasoline, kerosene, or other flammable petroleum products. "Hazardous Materials" means any substance or material whose nature and/or quantity or existence, use, manufacture, or effect render it subject to federal, state, or local regulation, investigation, remediation or removal as potentially injurious to public health or welfare, and including, without limitation, (a) any "hazardous material," "hazardous substance," and "hazardous waste," as said terms are defined in Idaho Statutes, (b) petroleum, (c) asbestos, (d) polychlorinated biphenyls, (e) radioactive material, (f) any substance or material designated as a "hazardous substance" pursuant to Section 31 1 of the Clean Water Act, 33 U.S.C. S 1251 et seq. (33 U.S.C. S 1317), (g) any substance or defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S 6901 et seq. (41 U.S.C. S 6903), or (h) any "hazardous substance" pursuant to Section 101 of the Comprehensive Environmental Response, Compensations, and Liability Act, 42 U.S.C. S 9601 et seq. (42 U.S.C. S 9601). (the "Hazardous Substances"). The Mortgagor is also prohibited from performing any acts on the Property involving any Hazardous Substances that would materially affect the value of the Property or would require clean-up or remedial action under federal, state, or local laws and codes.

Protection of Mortgagee's Security. If at any time the Mortgagor should fail to uphold the covenants in this Mortgage, or if a legal proceeding commences which materially affects the Mortgagee's interest in the Property, the Mortgagee may pay or perform any reasonable action as necessary to protect the Mortgagee's interest, which includes, but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. payment of insurance premiums and taxes, levies, accruing against the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. payment of sums due secured by a prior lien which has priority over this Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. payment of legal fees in relations to any legal proceedings or legal costs arising from the Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. payment of reasonable costs in repairing and maintaining the Property

Any action referred to in the immediately preceding section is optional for the Mortgagee and the Mortgagee has no duty or obligation to carry out any of the remedies listed in this section and will not incur any liability in the failure to perform such tasks. Any amount disbursed by the Mortgagee in relation to the protection of the Mortgagee's security will become Additional Fees payable by the Mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.  **<u>Amendment to Loan Documents</u>** . All of the Loan Documents (whether or not expressly set forth
herein) are hereby amended to: (a) reflect the terms and conditions discussed in this Second Amendment, including but not limited to the
terms and conditions discussed in Sections 1-3 of this Second Amendment, and; to (b) provide that, the Loan Documents, as modified by
this Second Amendment, the constitute "Loan Documents" the performance of which are secured by the Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.**  **<u>Memorandum</u>** . Notwithstanding anything to the contrary
in the Loan Agreement, the Note, the Mortgage, or any other Loan Documents, upon the recordation of a memorandum of this Second Amendment,
executed by the parties, in the Official Records, the parties hereto agree that the Loan Agreement, the Note, the Mortgage, and all of
the other Loan Documents, shall be amended in the manner and to the extent set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.**  **<u>Representations and Warranties</u>** . As a material
inducement for Lender to enter into this Second Amendment, Borrower hereby represents and warrants to Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Borrower has full power and authority to execute, deliver and perform its obligations under this Second Amendment and all other documents delivered to Lender in connection with this Second Amendment. This Second Amendment and the Loan Documents are binding upon and enforceable against Borrower in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Except as disclosed to Lender in writing prior to the date hereof, there is no potential Event of Default or Event of Default by Borrower under any of the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The representations and warranties made by Borrower in each of the Loan Documents are, as of the effective date of this Second Amendment, true, correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Borrower does not have any (a) offsets or defenses against the payment of the Note or any other amounts payable under the Loan Documents, or (b) claims against Lender or any employee, officer, director, or attorney of Lender in connection with the Note, any of the other Loan Documents, or this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.**  **<u>Reaffirmation of Obligations</u>** . Borrower hereby
acknowledges and reaffirms its obligations under the Note and the other Loan Documents, as such documents have been modified by this
Second Amendment, and agrees that any reference made in the Note or any of the other Loan Documents to such documents shall mean such
Loan Documents as modified by this Second Amendment. Borrower hereby also acknowledges and reaffirms that in the event of any Event of
Default under the terms of the Loan Documents, Lender shall, without limiting its other rights under the Loan Documents, have full rights
of recourse against Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.**  **<u>Waiver of Certain Protections</u>** . As a material inducement
for Lender to enter into this Second Amendment, Borrower agrees that, in the event that Borrower (a) files with any bankruptcy court
of competent jurisdiction or is the subject of any petition under Title 1 1 of the U.S. Code, as amended, (b) is the subject of any order
of relief under such Title 1 1 of the U.S. Code, as amended, (c) files or is the subject of any petition, order, judgment or decree petition
seeking, or relating to, any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under
any present or future Canadian, United States or United States state act or law relating to bankruptcy, insolvency, or other relief for
debtors, or (d) seeks, consents or agrees to, the appointment of any trustee, receiver, conservator, or liquidator, then in such event
Lender shall be entitled to relief from any automatic stay imposed (including any stay by Section 362 of Title 1 1 of the U.S. Code,
as amended), or otherwise, on or against the exercise of its rights and remedies under the Loan Documents or as otherwise provided by
law or in equity. Borrower hereby irrevocably waives any benefits or protections that may be afforded by any such automatic stay, and
further waives any benefits or protections that may be afforded by relief similar to such automatic stay (including but not limited to
under Section 105 of Title 1 1 of the U.S. Code, as amended), or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.**  **<u>Events of Pefault</u>** . In addition to all other matters
constituting a default or Event of Default under the Loan Documents, the breach or default by Borrower of any term or covenant contained
herein, and the expiration of any applicable cure period set forth in the Loan Documents, or the inaccuracy of any representation or
warranty contained herein, shall also be deemed a default or Event of Default under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.**  **<u>Governinq Law</u>** . This Second Amendment shall be
governed by, and construed and enforced in accordance with, the laws of the State of California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.**  **<u>Counterparts</u>** . This Second Amendment may be executed
in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts
taken together shall constitute but one and the same instrument. Signature and acknowledgement pages may be detached from the counterparts
and attached to a single copy of this Second Amendment to physically form one document, which may be recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.**  **<u>Time of Essence</u>** . Time is of the essence with respect
to each provision of this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.**  **<u>Successors and Assiqns</u>** . The provisions of this
Second Amendment shall be binding upon and shall inure to the benefit of Borrower, Lender and their respective successors and assigns,
if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.**  **<u>Entire Amendment</u>.** This Second Amendment and the
Loan Documents constitute the entire understanding between Borrower and Lender with respect to the subject matter hereof, and all prior
amendments, understandings, representations and statements with respect thereto, whether oral or written are merged into this Second
Amendment and the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** Except as provided in this Second Amendment, all of the terms
and conditions of the Loan Documents (as previously amended, if at all), shall remain in full force and effect. Capitalized terms not
herein defined shall have the meanings ascribed to them in the Loan Documents. In the event of a conflict between any provision of this
Second Amendment and any provision of the provisions of the Loan Documents, this Second Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** This Second Amendment may be executed in counterparts, with
each counterpart having the same force and effect as if all parties had signed one original document. This Second Amendment (or any counterpart
thereof) may also be executed by facsimile signature. Each individual executing this Second Amendment on behalf of any entity represents
and warrants that he or she is duly authorized to execute and deliver this Second Amendment on behalf of the party represented, and that
this Second Amendment is binding upon each party in accordance with its terms.

IN WITNESS WHEREOF, Borrower and Lender have caused this Second Amendment to be duly executed and delivered as of the Amendment Effective Date.

---

| | |
|:---|:---|
|  | "**Borrower**"<br>IDAHO CUMO MINING CORPORATION, INC., an Idaho corporation<br>/s/ Shaun Dykes |
| Declared before me at Coquitlam, | Shaun Dykes, President |
| British Columbia this 28<sup>th</sup> |  |
| Day of January 2016 | /s/ Shaun Dykes |
|  | Shaun Dykes, Secretary and Treasurer |
| /s/ JLR |  |
| James L. Robinson | **(execution by two (2) corporate officers required)** |
| Notary Public |  |
|  | "**Lender**" |
|  | LA FAMIIA II, LLC |
|  | A California limited liability company |
|  | /s/ Martin Menne |
|  | Martin Menne, its Managing Partner |

---

EXHIBIT A

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO.

La Familia Il, LLC

GREEN VALLEY CORPORATION

777 N. FIRST STREET, 5TH FL.

SAN JOSE, CA 95112

**MEMORANDUM OF SECOND AMENDMENT TO MORTGAGE AND OTHER LOAN DOCUMENTS**

**THIS MEMORANDUM OF SECOND AMENDMENT TO MORTGAGE AND OTHER LOAN DOCUMENTS** (this "**Memorandum**") is made as of January 29, 2016 (the "**Amendment Effective Date**"), by and between **IDAHO CUMO MINING CORPORATION, INC.**, an Idaho corporation ("**Borrower**"), and **LA FAMILIA Il, LLC,** a California limited liability company ("Lender"), with respect to the following Recitals:

**<u>R E C I TA LS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Pursuant to that certain Loan Agreement made and entered into by and between Borrower and Lender as of October 31, 2014, as amended by that certain First Amendment to Loan Agreement dated March 26, 2015 (together, the "Loan Agreement"), Lender has made a loan to Borrower in the original principal amount of Two Hundred Fifty Thousand Dollars ($250,000) (the "Loan"). The Loan is evidenced by that certain Promissory Note Secured by Mortgage, dated as of October 31 , 2014, in the original principal amount of the Loan, executed by Borrower, as maker, in favor of Lender, as holder (the "**Note**") All initially capitalized terms not otherwise defined herein shall have the meanings given such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** The repayment of the Note, and Borrower's performance of its obligations under the Note, are secured, inter alia, by: (i) that certain Deed of Trust dated as of October 31, 2014, executed by Borrower as Trustor and naming Lender as Beneficiary, recorded on November 14, 2014, as Instrument No. 245303 in the Official Records of Boise County, Idaho (the "**Official Records**") (the Deed of Trust") and (ii) that certain Real Estate Mortgage dated as of March 26, 2015, executed by Borrower as Mortgagor and naming Lender as Mortgagee, recorded on March 30, 2015, as Instrument No. 246514 in the Official Records of Boise County, Idaho (the "**Official Records**") (the "**Mortgage**") and encumbering that certain real property described therein (the "**Property**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** As used herein, "**Loan Documents**" shall mean the Loan Agreement as Amended hereby, the Note as amended hereby, the Mortgage, and all other documents securing, or executed in connection with, the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Borrower has requested that Lender extend the Maturity Date (as defined in the Note), and make additional advances to Borrower and Lender has agreed to do so on the terms and conditions set forth in that certain Second Amendment to Deed of Trust and Other Loan Documents of even date herewith among Borrower, and Lender (the "**Modification Agreement**").

 **MEMORANDUM**

**<u>Incorporation of the Modification Aqreement</u>**. The Modification Agreement is incorporated in this Memorandum by this reference as if fully set forth herein.

**<u>Amendment to Loan Documents a</u>.**

All of the Loan Documents (whether or not expressly set forth herein) are hereby amended to (a) reflect that the Maturity Date of the Note has been extended to December 31, 2025, (b) provide that the repayment terms of the Note have been modified as set forth in the Modification Agreement, (c) provide that Lender has made an additional advance of $250,000.00 and that the outstanding principal balance of the Note is now $500,000.00, accruing interest at the stated rates for the date of each advance; (d) to provide for potential additional advances to be made by Lender to be secured in each instance by the Mortgage; (e) provide that each of the Loan Documents have been modified by the applicable Modification Documents, and (f) provide that the Modification Documents constitute "Loan Documents" (as "Loan Documents" is used therein).

**<u>Reaffirmation of Obliqations</u>.**

Borrower hereby acknowledges and reaffirms its respective obligations under the Note, the other Loan Documents, as such documents have been amended by the Modification Agreement and the other Modification Documents, and agrees that any reference made in the Note, any of the other Loan Documents to such documents shall mean such Loan Documents as amended by the Modification Agreement and the Modification Documents. Borrower hereby also acknowledges and reaffirms that in the event of any default under the terms of the Loan Documents, Lender shall, without limiting its other rights under the Loan Documents, have full rights of recourse against Borrower.

**<u>Option.</u>**

Borrower hereby acknowledges and reaffirms that Lender is granted an option to purchase the real property described in the Mortgage upon a default by Borrower under the Loan Documents, as such documents have been amended by the Modification Agreement and the Modification Documents (the "Option"). This Memorandum is executed and recorded in part for the purpose of giving notice of the existence of the Option and its essential terms. In the event of any conflict between the terms of the Option and the terms of this Memorandum, the terms of the Option shall control.

**<u>Counterparts</u>.**

This Memorandum may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. Signature and acknowledgement pages may be detached from the counterparts and attached to a single copy of this Memorandum to physically form one document, which may be recorded.

{SIGNATURES FOLLOW}

IN WITNESS WHEREOF, Borrower, Lender and Indemnitor have caused this Memorandum to be duly executed and delivered as of the date first above written.

## Exhibit 10.7

**Exhibit 10.7**

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

![](ex10-7_001.jpg)

MINESENSE AMENABILITY

TEST PROPOSAL

for

CUMO MINE

![](ex10-7_002.jpg)

---

| | |
|:---|:---|
| 1. PURPOSE AND SCOPE OF ACTIVITIES | 2 |
| 2. PROGRAM OVERVIEW | 3 |
| &nbsp;&nbsp;&nbsp;2.1. Phase 1: Project Definition and Value Estimation | 3 |
| &nbsp;&nbsp;&nbsp;2.2. Phase 2: Amenability Testing | 3 |
| 3. PRICING AND VALIDITY OF THE OFFER | 5 |
| 4. OTHER TERMS AND CONDITIONS | 5 |
| &nbsp;&nbsp;&nbsp;4.1. Confidentiality | 5 |
| &nbsp;&nbsp;&nbsp;4.2. Governing Law (Jurisdiction) | 5 |
| &nbsp;&nbsp;&nbsp;4.3. Waiver of Liability | 6 |
| &nbsp;&nbsp;&nbsp;4.4. Term and Termination | 6 |
| &nbsp;&nbsp;&nbsp;4.5. General | 6 |
| Schedule 1 – MineSense Early Engagement Information Request | 8 |

---

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

This document forms the basis for our proposal and is made this 12<sup>th</sup> day of August 2022 (The "Effective Date") by and between:

International CuMo Mining Corp. ("ICMC"), an Idaho corporation, having business at PO Box 1623 Boise, ID USA 83701

And

MineSense™ Technologies Ltd., 100-8365 Ontario Street Vancouver, BC, Canada, V5X 3E8 (MineSense)

MineSense Technologies Ltd. is a Canadian, British Columbia-based technology company that has developed advanced and proprietary sensor technology, software and task specific algorithms that are able to enhance the waste handling, ore extraction and recovery processes of a mining operation.

Specifically, the MineSense System can help the ICMC Mine to:

☐ Improve the economics of mining low-grade ores.

☐ <u>Identify barren waste within valuable ore</u> and <u>confirm ore grade material from waste</u> at an early stage of the mining process.

☐ Employ a combination of sensor technology that measure and reports the grade of ore in real time.

☐ Integrate with material handling equipment such as shovels, scoops, belt conveyors, feeders and chutes.

☐ Integrate with any Fleet Management System for automated dispatch and truck-routing.

☐ Facilitate operational control and decision making aimed at maximizing resource conversion and metal recovery.

☐ Provide a real time means to blend and preconcentrate materials against the site's unique requirements.

(Hereinafter each being a "Party" and, collectively, being the "Parties")

&nbsp;&nbsp;&nbsp;&nbsp;1. PURPOSE AND SCOPE OF ACTIVITIES

The purpose of this Proposal is to set out in broad terms the process the Parties agree to follow as part of a multi-phased Program. Prior to receipt of this Proposal the Parties have executed a NonDisclosure Agreement (NDA). The desired outcome of this proposal is to complete a successful Amenability Test on core samples from ICMC Mine.

The Parties agree to work collaboratively to align and confirm the scope, roles, and responsibilities of each Party within the Program against each of the following 2 Phases:

☐ Phase 1: Value Estimation and Key Drivers

☐ Phase 2: Amenability Testing

The goal of the phases of this proposal is to begin to prove that the MineSense ShovelSense System will provide value to the ICMC Mine. As a general statement, individual costs for the assessment will be covered by each party.

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

At the completion of the amenability testing phase (with the deliverable being the Amenability Test Report), the Parties will acknowledge and report the acceptance of the deliverable associated with that Phase. After the delivery of the Amenability Test report, the parties will meet to determine if it is agreeable to move to the next step, which is typically a ShovelSense Trial.

The pricing attributed to the Amenability Testing is identified in section 3 of this document.

&nbsp;&nbsp;&nbsp;&nbsp;2. PROGRAM OVERVIEW

&nbsp;&nbsp;&nbsp;&nbsp;2.1. Phase 1: Project Definition and Value Estimation

During this phase, the Parties conducted initial discussions to identify the key value drivers and value generation potential. Technical personnel from both Parties discussed the geology, mining methods, ore / waste dilution, and processing constraints. A key outcome of these discussions was to define the target use case for a Sample Plan to be developed for the Amenability Test. The MineSense list of questions used to support the development of a Sample Plan is included in Schedule 1 and was worked on by the Parties during various meetings.

As part of that process, based upon a review of publicly available information, MineSense created a value model which determined that the installation of ShovelSense on all shovels used in production at ICMC Mine may produce an increase in revenue, which will be presented to ICMC. During the process of information sharing described in this proposal, MineSense reviewed the data used to create the value model and updated it with information provided by ICMC personnel. The latest version of the value model will be reviewed by the parties for accuracy.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. Phase 2: Amenability Testing

The amenability test and amenability test report provided during this phase are intended only to demonstrate the ability of the ShovelSense system to measure the key ore quality characteristics including grade(s) and impurities The MineSense Amenability test is used to begin the calibration process and is expected to take 8 weeks after receipt of the ICMC samples. Responsibilities for this phase will be as follows:

ICMC

1) Participate in a one-hour Amenability Test planning meeting date to be defined once this agreement is signed by both parties.

2) Collect the number of agreed upon core samples and place samples in 220-liter drums date to be defined prior to proceeding with sample collection.

3) Ship drums to MineSense laboratory in Vancouver, BC by November 28, 2022.

MineSense

1) Participate in the one-hour meeting mentioned in point 1 of the ICMC responsibility section above.

2) Wait for samples to arrive. 3) Test samples as follows:

The samples will be assessed by the MineSense Geoscience Team and include passing the material through an Amenability Test Machine, or ATM. The material is lifted and tipped, allowing it to flow by the sensors in a manner that simulates a shovel bucket being loaded. The process is repeated for each sample several times to demonstrate repeatability. When all the samples are processed through the ATM, they are sub-sampled and sent to an external lab for analysis. An initial calibration model is developed, noting that the sample size is relatively small and, by definition, the samples will have more variation than planning models.

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

During this Phase:

● Geologist/mining engineers meet to prepare and confirm the Sample Plan.

● The mine site will send approximately 12 ore samples (the final number of samples will be determined in the Amenability Test planning meeting) in 220-litre (55 gallon) drums, or equivalent, to MineSense Vancouver with material Safety Data Sheet (SDS) information on each drum included.

● Each of the samples will be run through the MineSense testing equipment.

● The samples will be sub-sampled and sent to an external lab for assay.

● Assays from these samples will be used to develop preliminary correlations and calibration.

● At the completion of this Phase, MineSense will deliver a report that conveys the results and suitability of the System against the ore samples provided by the mine site within 8 weeks of the samples arriving in the MineSense Lab in Vancouver.

![](ex10-7_003.jpg)

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

&nbsp;&nbsp;&nbsp;&nbsp;3. PRICING AND VALIDITY OF THE OFFER

This proposal is submitted on August 29<sup>th</sup>, 2022, and is valid for 30 days. After this deadline, this document must be reviewed and validated again.

---

| | |
|:---|:---|
| PHASE 1: VALUE ESTIMATION AND IDENTIFICATION OF KEY DRIVERS | No charge |
| PHASE 2: AMENABILITY TESTING (up to twelve samples) | USD$50,000 |

---

At the completion of this Phase, the Parties will acknowledge and report the acceptance of the deliverables associated with that Phase. It is expected that both Parties will collaborate in good faith towards the definitions of acceptable correlations and acceptable performance. It is acknowledged that for Amenability Testing the sample suite is limited and even deliberately diverse to demonstrate the capability of the sensors. It is further acknowledged that sampling quality is an important consideration during the Phase.

Upon signing this Proposal, the Parties agree to enter the Program described herein to undertake the Amenability Test at ICMC Mine. The pricing for the Amenability Test is above.

Every signature in counterpart by way of facsimile shall be deemed to be the signature of the person whose signature it reproduces and shall be binding upon the party on behalf of the person has affixed their signature.

&nbsp;&nbsp;&nbsp;&nbsp;4. OTHER TERMS AND CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;4.1. Confidentiality

The Parties have entered a standalone, mutually respectful, Non-Disclosure Agreement ("NDA").

&nbsp;&nbsp;&nbsp;&nbsp;4.2. Governing Law (Jurisdiction)

This Proposal shall be governed by and construed in accordance with laws of the Province of British Columbia and by the laws of Canada applicable therein, excluding any rules pertaining to the conflict of laws which would result in the application of any other law.

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

&nbsp;&nbsp;&nbsp;&nbsp;4.3. Waiver of Liability

Both Parties acknowledge that this Proposal represents an expression of intent in relation to a potential business arrangement and no warranty of service or future agreement is provided by this Proposal. This Proposal does not constitute an agreement to enter any business arrangement post Phase 3, Site Trial, and except for the rights and obligations contained in sections 2, 3, and 4 herein, each Party waives all claims against the other Party regarding their performance under this Proposal. This waiver does not apply to any other contracted work between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;4.4. Term and Termination

This AGREEMENT shall remain in effect until the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The agreed duration of the Phase unless both parties agree
in writing to extend the end date of this Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Either Party becomes bankrupt or insolvent or commits an act
of bankruptcy; or a Party makes an assignment for the general benefit of its creditors; or a Party is unable, or has admitted that it
is unable, to pay its debts generally as they become due; or if a Party has a trustee, liquidator, receiver or interim receiver appointed
in respect of its property or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Both Parties mutually agree to terminate this project.

Termination of this Proposal be it actual, implied, constructive, or otherwise will not affect the confidentiality, non-disclosure and non-use obligations contained in the NDA, and such obligations will survive termination of the Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;4.5. General

This AGREEMENT is not intended to constitute, create, give effect to, or otherwise recognize a joint venture, partnership, or formal business entity of any kind. ICMC Mine and MineSense shall always remain as independent entities. Neither Party has any authority to make contracts on behalf of or in any way bind the other Party toward third parties.

Disputes arising between the Parties shall be resolved through amicable negotiations in a spirit of mutual understanding and collaboration. The Parties agree that, before submitting a dispute to arbitration, they shall submit such dispute to the management board of each Party for resolution. If no solution can be reached, the matter shall be referred to binding arbitration as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) the British Columbia International Commercial Arbitration Centre, Domestic Commercial Arbitration Rules ("BCICA Rules") shall apply, and arbitration may be commenced by either Party providing notice of arbitration to the other Party in accordance with BCICA Rules. ii) the seat and place of arbitration shall be Vancouver, British Columbia and the proceedings shall be conducted in English.

iii) the arbitral tribunal shall be composed of a single arbitrator appointed in accordance with the BCICA Rules; and

iv) no arbitrator shall be an officer, servant, employee or agent, or former officer, servant, employee, or agent of or have any material interest in the business of or in any Party or any affiliate of any Party.

This Proposal may be signed and accepted in counterparts and transmitted by facsimile. Every signature in counterpart by way of facsimile shall be deemed to be the signature of the person whose signature it reproduces and shall be binding upon the party on behalf of the person has affixed their signature.

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

IN WITNESS WHEREOF the Parties have caused this AGREEMENT to be executed in their respective names by their duly authorized representatives.

---

| | |
|:---|:---|
| International CuMo Mining Corp. | MineSense Technologies Ltd. |
| Signature | Signature |
| Name | Name |
| Title | Title |
| Dated | Dated |

---

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

Schedule 1 – MineSense Early Engagement Information Request

The early engagement process included gathering of information from ICMC Specifically, it allows a better understanding of operational and geological conditions at the ICMC mine so that ongoing discussions about the deployment of MineSense technology can be most efficient.

Early amenability test work on run-of-mine material by MineSense in their Vancouver lab is intended to be a relatively simple process that informs the direction of future trial work. In this context, it is important to get the first steps correct and acquire the appropriate range of samples. Inappropriate selection of samples may generate data that is inconclusive or not fit for purpose.

In general, MineSense aims to acquire run-of-mine material samples capturing the range of grade and geological variability from waste through low- and high-grade quality ore. Analyzing only 'average' or 'representative' material downplays any heterogeneity and variability that might be present. Variability (e.g., ore in waste blocks, waste in ore blocks) is one aspect that MineSense aims to allow exploitation of for their clients.

Accordingly, MineSense respectfully requests the following information, and will review the data sent by ICMC that the mine sees as relevant. Iterative conversations and data sharing are expected, and preference is to exchange information in small batches as it becomes available instead of delaying delivery until all pieces have been found and assembled. The majority of these questions either have been asked and answered or will be discussed during the Amenability Report presentation which will be scheduled after the completion of the Amenability Test.

<u>Descriptions of key challenges the mine is facing:</u>

&nbsp;&nbsp;&nbsp;&nbsp;1. Operational Challenges

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Are there specific bottlenecks to be alleviated?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Are changes in support scale from modelling to mining introducing
significant uncertainty?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Is material classification and delineation after blasting
difficult to carry out accurately?

&nbsp;&nbsp;&nbsp;&nbsp;2. Metallurgical Challenges

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Is the ore quality highly variable?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Are there significant deleterious minerals and elements?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Are there significant secondary valuable minerals and metals?

&nbsp;&nbsp;&nbsp;&nbsp;3. Geological Challenges

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. What are the degrees of ore loss and dilution?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Is there increasing uncertainty in resource models?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Are structural settings and lithological characteristics highly
variable?

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

<u>Information on reserve and resource calculation(s):</u>

&nbsp;&nbsp;&nbsp;&nbsp;4. What methodologies were used for reserve and resource calculation, including changes in approaches through
time?

&nbsp;&nbsp;&nbsp;&nbsp;5. What are the calculation results, ideally in accordance with JORC or NI 43-101 reporting guidelines?

&nbsp;&nbsp;&nbsp;&nbsp;6. What are the block sizes, drill spacings, grade distributions, geological continuity, etc.?

<u>Descriptions of ore deposit</u>

&nbsp;&nbsp;&nbsp;&nbsp;7. Can the mine supply material classification tables be used in grade control?

&nbsp;&nbsp;&nbsp;&nbsp;8. Generally, how sharp are the transitions between ore and waste zones?

&nbsp;&nbsp;&nbsp;&nbsp;9. What are the lithological descriptions used at the mine, from resource geology and exploration geology
groups?

&nbsp;&nbsp;&nbsp;&nbsp;10. What are the geo-metallurgical characteristics of the ore bodies?

&nbsp;&nbsp;&nbsp;&nbsp;11. What are the structural settings and mineralization conditions, especially in the context of orientation
to mine plans?

&nbsp;&nbsp;&nbsp;&nbsp;12. Are there specific analogous deposits where complementary information may be sourced? <u>Mining fleet and operations:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;13. What are the annual production numbers for the mine, including any relevant and specific subdivisions,
such as individual pits or ore types?

&nbsp;&nbsp;&nbsp;&nbsp;14. What are the sizes, tonnage capacities and configurations of excavating and haulage equipment?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Are the excavating and haulage equipment working at full capacity?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Does the mine have a fleet management system? If so, which
system(s)?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For above ground equipment, how many loading machines have
High Precision GPS implemented?

&nbsp;&nbsp;&nbsp;&nbsp;15. How is grade control performed post-blasting?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. What are the primary characteristics/factors considered by
grade control personnel when deciding on the destination of blasted material?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Do grade control personnel use any form of demarcation, such
as flagging, to guide digging?

&nbsp;&nbsp;&nbsp;&nbsp;16. How are conveyors used for material management and handling prior to comminution?

International CuMo Mining Corp., August 29<sup>th</sup>, 2022

&nbsp;&nbsp;&nbsp;&nbsp;17. Are stockpiles used?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If so, what are the typical grade and metallurgical characteristics
of each stockpile?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. If so, are conveyors used for stockpile management?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. If so, how are conveyors used for stockpile management?

&nbsp;&nbsp;&nbsp;&nbsp;18. What crushing and grinding infrastructure is employed?

&nbsp;&nbsp;&nbsp;&nbsp;19. Is there other sensing and sorting equipment already deployed or being considered?

&nbsp;&nbsp;&nbsp;&nbsp;20. Is there a Wi-Fi network on site and what are the security policies we need to follow for our system
to connect to this network?

<u>Energy and greenhouse gas emission related aspects (if available):</u>

&nbsp;&nbsp;&nbsp;&nbsp;21. Are there specific 'hard' and 'soft' ores?

&nbsp;&nbsp;&nbsp;&nbsp;22. Are ranges of energy intensities per tonne of ore processed available in the context of comminution?

&nbsp;&nbsp;&nbsp;&nbsp;23. What are the energy sources used for mobile and fixed equipment?

<u>Assistance with gathering information for the development of application package needed to install the ShovelSense system on the ICMC shovel.</u>

&nbsp;&nbsp;&nbsp;&nbsp;24. Identification of specific shovel (manufacturer, model and serial number) to be used for trial.

&nbsp;&nbsp;&nbsp;&nbsp;25. Install a vibration measuring tool in the shovel to be used.

&nbsp;&nbsp;&nbsp;&nbsp;26. Record bucket dimensions as instructed by MineSense.

&nbsp;&nbsp;&nbsp;&nbsp;27. Take photos of the bucket as instructed by MineSense.

&nbsp;&nbsp;&nbsp;&nbsp;28. Record videos of the bucket in motion including full forward and backward tilt.

&nbsp;&nbsp;&nbsp;&nbsp;29. Record videos of the bucket while digging, with depth paint marks painted on the bucket.

&nbsp;&nbsp;&nbsp;&nbsp;30. Create a 3D model of the heaped profile of the material during the digging.

&nbsp;&nbsp;&nbsp;&nbsp;31. Confirm bucket capacity.

&nbsp;&nbsp;&nbsp;&nbsp;32. Confirm power source on the shovel.

## Exhibit 14.1

**Exhibit 14.1**

**Joway Health Industries Group Inc.**

**Code of Ethics and Business Conduct**

1. <u>Introduction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.1 The Board of Directors of Joway Health Industries Group Inc. (together with its subsidiaries, the "<u>Company</u>") has adopted this Code of Ethics and Business Conduct (the "<u>Code</u>") in order to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the "<u>SEC</u>") and in other public communications made by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) promote compliance with applicable governmental laws, rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promote the protection of Company assets, including corporate opportunities and confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) promote fair dealing practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) deter wrongdoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ensure accountability for adherence to the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.2 All directors, officers and employees are required to be familiar with the Code, comply with its provisions and report any suspected violations as described below in <u>Section 10</u>, Reporting and Enforcement.

2. <u>Honest and Ethical Conduct</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Company's policy is to promote high standards of integrity by conducting its affairs honestly and ethically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Each director, officer and employee must act with integrity and observe the highest ethical standards of business conduct in his or her dealings with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job.

3. <u>Conflicts of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 A conflict of interest occurs when an individual's private interest (or the interest of a member of his or her family) interferes, or even appears to interfere, with the interests of the Company as a whole. A conflict of interest can arise when an employee, officer or director (or a member of his or her family) takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Loans by the Company to, or guarantees by the Company of obligations of, employees or their family members are of special concern and could constitute improper personal benefits to the recipients of such loans or guarantees, depending on the facts and circumstances. Loans by the Company to, or guarantees by the Company of obligations of, any director or executive officer are expressly prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Whether or not a conflict of interest exists or will exist can be unclear. Conflicts of interest should be avoided unless specifically authorized as described in <u>Section 3.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Directors and executive officers should promote ethical behavior and take steps to ensure the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) encourages employees to talk to supervisors, managers and other appropriate personnel when in doubt about the best course of action in a particular situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) encourages employees to report violations of laws, rules or regulations to appropriate personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) informs employees that the Company will not permit retaliation for reports made in good faith.

4. <u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Employees, officers, and directors should comply, both in letter and spirit, with all applicable laws, rules and regulations in the cities, states and countries in which the Company operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Although not all employees, officers and directors are expected to know the details of all applicable laws, rules, and regulations, it is important to know enough to determine when to seek advice from appropriate personnel. Questions about compliance should be addressed to the Legal Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 No director, officer or employee may purchase or sell any Company securities while in possession of material nonpublic information regarding the Company, nor may any director, officer or employee purchase or sell another company's securities while in possession of material nonpublic information regarding that company. It is against Company policies and illegal for any director, officer or employee to use material nonpublic information regarding the Company or any other company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) obtain profit for himself or herself; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) directly or indirectly "tip" others who might make an investment decision on the basis of that information.

5. <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Company's periodic reports and other documents filed with the SEC, including all financial statements and other financial information, must comply with applicable federal securities laws and SEC rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Each director, officer and employee who contributes in any way to the preparation or verification of the Company's financial statements and other financial information must ensure that the Company's books, records and accounts are accurately maintained. Each director, officer and employee must cooperate fully with the Company's accounting and internal audit departments, as well as the Company's independent public accountants and counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Each director, officer and employee who is involved in the Company's disclosure process must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be familiar with and comply with the Company's disclosure controls and procedures and its internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take all necessary steps to ensure that all filings with the SEC and all other public communications about the financial and business condition of the Company provide full, fair, accurate, timely and understandable disclosure.

6. <u>Protection and Proper Use of Company Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 All directors, officers, and employees should protect the Company's assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Company's profitability and are prohibited.

7. <u>Corporate Opportunities</u>. All directors, officers, and employees owe a duty to the Company to advance its interests when the opportunity arises. Directors, officers and employees are prohibited from taking for themselves personally (or for the benefit of friends or family members) opportunities that are discovered through the use of Company assets, property, information or position. Directors, officers, and employees may not use Company assets, property, information or position for personal gain (including gain of friends or family members). In addition, no director, officer, or employee may compete with the Company.

8. <u>Confidentiality</u>. Directors, officers, and employees should maintain the confidentiality of information entrusted to them by the Company or by its customers, suppliers, or partners, except when disclosure is expressly authorized or is required or permitted by law. Confidential information includes all nonpublic information (regardless of its source) that might be of use to the Company's competitors or harmful to the Company or its customers, suppliers, or partners if disclosed.

9. <u>Fair Dealing</u>. Each director, officer, and employee must deal fairly with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job. No director, officer, or employee may take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of facts, or any other unfair dealing practice.

10. <u>Reporting and Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Reporting and Investigation of Violations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any executive officer or employee who in good faith reports a suspected violation under this Code by the Company, or its agents acting on behalf of the Company, or who in good faith raises issues or concerns regarding the Company's business or operations, may not be fired, demoted, reprimanded or otherwise harmed for, or because of, the reporting of the suspected violation, issues or concerns, regardless of whether the suspected violation involves the executive officer or employee, the executive officer's or employee's supervisor or senior management of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, any executive officer or employee who in good faith reports a suspected violation under this Code which the executive officer or employee reasonably believes constitutes a violation of a federal statute by the Company, or its agents acting on behalf of the Company, to a federal regulatory or law enforcement agency, may not be reprimanded, discharged, demoted, suspended, threatened, harassed, or in any manner discriminated against in the terms and conditions of the executive officer's or employee's employment for, or because of, the reporting of the suspected violation, regardless of whether the suspected violation involves the executive officer or employee, the executive officer's or employee's supervisor or senior management of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company must ensure prompt and consistent action against violations of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A failure by any director or executive officer to comply with the laws or regulations governing the Company's business, this Code or any other Company policy or requirement may result in disciplinary action, and, if warranted, legal proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Directors and executive officers should communicate any suspected violations of this Code promptly to the Chairman of the Audit Committee, or if no Audit Committee has been appointed, to the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Violations will be investigated by the Board of Directors or by a person or persons designated by the Board of Directors and appropriate action will be taken in the event of any violations of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Waivers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No waiver of any provisions of the Code for the benefit of a director or an executive officer (which includes without limitation, for purposes of this Code, the Company's principal executive, financial and accounting officers) shall be effective unless (i) approved by the Board of Directors, and (ii) if applicable, such a waiver is promptly disclosed to the Company's shareholders in accordance with applicable United States securities laws and, if applicable, the rules and regulations of the exchange or system on which the Company's shares are traded or quoted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any waivers of this Code for the other employees may be made by the Board of Directors, or, if permitted, a committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All amendments to this Code must be approved by the Board of Directors or a committee thereof and, if applicable, must be promptly disclosed to the Company's shareholders in accordance with applicable United States securities laws and, if applicable, the rules and regulations of the exchange or system on which the Company's shares are traded or quoted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Prohibition on Retaliation.

The Company does not tolerate acts of retaliation against any director, officer, or employee who makes a good faith report of known or suspected acts of misconduct or other violations of this Code.

Acknowledgment of Receipt and Review

I, _______________________, acknowledge that I have received and read a copy of the Joway Health Industries Group Inc. Code of Ethics and Business Conduct (the "<u>Code</u>"). I understand the contents of the Code and I agree to comply with the policies and procedures set out in the Code.

---

| |
|:---|
| Signature |
| Name (Printed or typed) |
| Position |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF QUALIFIED PERSON**

The undersigned consents to:

a) The filing of the Technical Report Summary (the "**TRS**"), effective January 27, 2023, with respect to the CuMo Project as an exhibit to this Current Report on Form 8-K (the "**Form 8-K**");

b) The use of and references to the undersigned's name, including the undersigned's status as an expert or "Qualified Person" (as defined in Subpart 1300 of Regulation S-K promulgated by the U.S. Securities and Exchange Commission) in connection with the TRS, and Form 8-K; and

d) Any extracts or summaries of the TRS included or incorporated by reference in the Form 8-K, the Form 10-K and the Registration Statements, and any information derived, summarized, quoted or referenced from the TRS, or portions thereof, that was prepared by the undersigned, that the undersigned supervised the preparation of and/or that was reviewed and approved by the undersigned, that is included or incorporated by reference in the Form 10-K and the Registration Statements.

Dated: January 27, 2023

---

| | |
|:---|:---|
| By: | /s/ Shaun M. Dykes |
| Name: | Shaun M. Dykes, M. Sc. (Eng.), P.Geo |
| Title: | President, Geologic Systems Ltd. |

---

## Exhibit 96.1

**Exhibit 96.1**

---

| |
|:---|
| ![](ex96-1_001.jpg)<br> **S-K 1300 Technical Report Summary**<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepared for<br>&nbsp;&nbsp;&nbsp;&nbsp;International CuMo Mining Corp. |
| ![](ex96-1_002.jpg) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepared by<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Geologic Systems Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January 2023 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

---

| | |
|:---|:---|
| S-K 1300 Technical Report Summary | S-K 1300 Technical Report Summary |
| January 2023 | January 2023 |
| **Prepared for** | **Prepared by** |
| International CuMo Mining Corp.<br> Suite #2300–550 Burrard Street<br> Vancouver, BC V6C 2B5<br> Canada<br>| Geoogic Systems Ltd.<br> 514 East Columbia St <br> New Westminster, BC V3L 3X7 <br> Canada |
| Tel: +1 604 689 7902<br> Web: www.cumoco.com | Tel: +1 604 681 4196<br> Web: www.srk.com |
| **Authored By:** |  |
| Shaun M Dykes, M. Sc. (Eng), P.Geo. | *Geologic Systems Ltd..* |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page i</u>

**Acronyms and Abbreviations**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Distance** |  | &nbsp;&nbsp;NaCN | &nbsp;&nbsp;sodium cyanide |
| &nbsp;&nbsp;µm | &nbsp;&nbsp;micron (micrometre) | &nbsp;&nbsp;**Other** |  |
| &nbsp;&nbsp;mm | &nbsp;&nbsp;millimetre | &nbsp;&nbsp;°F | &nbsp;&nbsp;degrees Fahrenheit |
| &nbsp;&nbsp;cm | &nbsp;&nbsp;centimetre | &nbsp;&nbsp;°C | &nbsp;&nbsp;degrees Celsius |
| &nbsp;&nbsp;m | &nbsp;&nbsp;metre | &nbsp;&nbsp;cfm | &nbsp;&nbsp;cubic feet per minute |
| &nbsp;&nbsp;km | &nbsp;&nbsp;km | &nbsp;&nbsp;elev | &nbsp;&nbsp;elevation |
| &nbsp;&nbsp;in | &nbsp;&nbsp;inch | &nbsp;&nbsp;m AMSL | &nbsp;&nbsp;metres elev. above mean sea level |
| &nbsp;&nbsp;ft | &nbsp;&nbsp;foot | &nbsp;&nbsp;hp | &nbsp;&nbsp;horsepower |
| &nbsp;&nbsp;**Area** |  | &nbsp;&nbsp;hr | &nbsp;&nbsp;hour |
| &nbsp;&nbsp;m<sup>2</sup> | &nbsp;&nbsp;square metre | &nbsp;&nbsp;s | &nbsp;&nbsp;second (unit of time) |
| &nbsp;&nbsp;km<sup>2</sup> | &nbsp;&nbsp;square km | &nbsp;&nbsp;kW | &nbsp;&nbsp;kilowatt |
| &nbsp;&nbsp;ac | &nbsp;&nbsp;acre | &nbsp;&nbsp;kWh | &nbsp;&nbsp;kilowatt hour |
| &nbsp;&nbsp;Ha | &nbsp;&nbsp;hectare | &nbsp;&nbsp;M | &nbsp;&nbsp;Million or mega |
| &nbsp;&nbsp;**Volume** |  | &nbsp;&nbsp;mph | &nbsp;&nbsp;miles per hour |
| &nbsp;&nbsp;L | &nbsp;&nbsp;litre | &nbsp;&nbsp;ppb | &nbsp;&nbsp;parts per billion |
| &nbsp;&nbsp;m<sup>3</sup> | &nbsp;&nbsp;cubic metre | &nbsp;&nbsp;ppm | &nbsp;&nbsp;parts per million |
| &nbsp;&nbsp;ft<sup>3</sup> | &nbsp;&nbsp;cubic foot | &nbsp;&nbsp;s.g. or SG | &nbsp;&nbsp;specific gravity |
| &nbsp;&nbsp;bcm | &nbsp;&nbsp;bank cubic metres | &nbsp;&nbsp;V | &nbsp;&nbsp;volt |
| &nbsp;&nbsp;Mbcm | &nbsp;&nbsp;million bcm | &nbsp;&nbsp;W | &nbsp;&nbsp;watt |
| &nbsp;&nbsp;bcy | &nbsp;&nbsp;bank cubic yards | &nbsp;&nbsp;$k | &nbsp;&nbsp;thousand US dollars |
| &nbsp;&nbsp;Mbcy | &nbsp;&nbsp;million bcy | &nbsp;&nbsp;$M | &nbsp;&nbsp;million US dollars |
| &nbsp;&nbsp;**Mass** |  | &nbsp;&nbsp;$Bn | &nbsp;&nbsp;billion US dollars |
| &nbsp;&nbsp;kg | &nbsp;&nbsp;kilogram | &nbsp;&nbsp;tph or stph | &nbsp;&nbsp;short tons per hour |
| &nbsp;&nbsp;g | &nbsp;&nbsp;gram | &nbsp;&nbsp;tpd or stpd | &nbsp;&nbsp;short tons per day |
| &nbsp;&nbsp;g/t | &nbsp;&nbsp;g/ metric tonne | &nbsp;&nbsp;mtpa or mstpa | &nbsp;&nbsp;million short tons per annum |
| &nbsp;&nbsp;t or st | &nbsp;&nbsp;short ton | &nbsp;&nbsp;Ø | &nbsp;&nbsp;diameter |
| &nbsp;&nbsp;kst | &nbsp;&nbsp;thousand short tons | &nbsp;&nbsp;Acronyms |  |
| &nbsp;&nbsp;Mst | &nbsp;&nbsp;million short tons | &nbsp;&nbsp;SRK | &nbsp;&nbsp;SRK Consulting (Canada) Inc. |
| &nbsp;&nbsp;Bst | &nbsp;&nbsp;billion short tons | &nbsp;&nbsp;CIM | &nbsp;&nbsp;Canadian Institute of Mining |
| &nbsp;&nbsp;lb | &nbsp;&nbsp;pounds | &nbsp;&nbsp;NI 43-101 | &nbsp;&nbsp;National Instrument 43-101 |
| &nbsp;&nbsp;mmlbs | &nbsp;&nbsp;millions of lbs | &nbsp;&nbsp;ABA | &nbsp;&nbsp;Acid- base accounting |
| &nbsp;&nbsp;oz | &nbsp;&nbsp;troy ounce | &nbsp;&nbsp;LOM | &nbsp;&nbsp;life of mine |
| &nbsp;&nbsp;wmt | &nbsp;&nbsp;wet metric tonne | &nbsp;&nbsp;AP | &nbsp;&nbsp;Acid potential |
| &nbsp;&nbsp;dmt | &nbsp;&nbsp;dry metric tonne | &nbsp;&nbsp;NP | &nbsp;&nbsp;Neutralization potential |
| &nbsp;&nbsp;**Pressure** |  | &nbsp;&nbsp;ML/ARD | &nbsp;&nbsp;Metal leaching/ acid rock drainage |
| &nbsp;&nbsp;psi | &nbsp;&nbsp;pounds per square inch | &nbsp;&nbsp;PAG | &nbsp;&nbsp;Potentially acid generating |
| &nbsp;&nbsp;Pa | &nbsp;&nbsp;pascal | &nbsp;&nbsp;non-PAG | &nbsp;&nbsp;Non-potentially acid generating |
| &nbsp;&nbsp;kPa | &nbsp;&nbsp;kilopascal | &nbsp;&nbsp;RC | &nbsp;&nbsp;reverse circulation |
| &nbsp;&nbsp;MPa | &nbsp;&nbsp;megapascal | &nbsp;&nbsp;IP | &nbsp;&nbsp;induced polarization |
| &nbsp;&nbsp;**Elements and Compounds** |  | &nbsp;&nbsp;COG | &nbsp;&nbsp;cut-off grade |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;molybdenum | &nbsp;&nbsp;NSR | &nbsp;&nbsp;net smelter return |
| &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;molybdenite | &nbsp;&nbsp;NPV | &nbsp;&nbsp;net present value |
| &nbsp;&nbsp;Cu | &nbsp;&nbsp;copper |  |  |
| &nbsp;&nbsp;Au | &nbsp;&nbsp;gold | &nbsp;&nbsp;**Conversion Factors** |  |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;silver | &nbsp;&nbsp;1 ton | &nbsp;&nbsp;2,000 lb |
| &nbsp;&nbsp;S | &nbsp;&nbsp;sulfur | &nbsp;&nbsp;1 tonne | &nbsp;&nbsp;2,204.62 lb |
| &nbsp;&nbsp;CN | &nbsp;&nbsp;cyanide | &nbsp;&nbsp;1 troy oz | &nbsp;&nbsp;31.10348 g |

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Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page ii</u>

**Table of Contents**

---

| | | | | |
|:---|:---|:---|:---|:---|
| 1 | **Executive Summary** | **Executive Summary** | **Executive Summary** | 1 |
|  | 1.1 | Introduction | Introduction | 1 |
|  | 1.2 | Property Description, History, and Ownership | Property Description, History, and Ownership | 2 |
|  | 1.3 | Exploration | Exploration | 2 |
|  | 1.4 | Geology and Mineralization | Geology and Mineralization | 2 |
|  | 1.5 | Mineral Resource Estimate | Mineral Resource Estimate | 3 |
|  | 1.6 | Project Development and Operations | Project Development and Operations | 6 |
|  | 1.7 | Social and Environmental | Social and Environmental | 7 |
|  | 1.8 | Project Costs | Project Costs | 8 |
|  | 1.9 | Project Economics | Project Economics | 8 |
|  |  | 1.9.1 | Cautionary Statements | 8 |
|  |  | 1.9.2 | Economic Summary | 8 |
|  | 1.10 | Project Risks | Project Risks | 11 |
|  |  | 1.10.1 | Mineral Resource | 11 |
|  |  | 1.10.2 | Mining | 11 |
|  |  | 1.10.3 | Mineral Sorting | 11 |
|  |  | 1.10.4 | Processing | 11 |
|  |  | 1.10.5 | Project Infrastructure | 11 |
|  |  | 1.10.6 | Permitting | 11 |
|  |  | 1.10.7 | Economic Risks | 12 |
|  | 1.11 | Project Opportunities | Project Opportunities | 13 |
|  |  | 1.11.1 | Mineral Resource | 13 |
|  |  | 1.11.2 | Mining | 13 |
|  |  | 1.11.3 | Mineral Sorting | 14 |
|  |  | 1.11.4 | Processing | 14 |
|  |  | 1.11.5 | Project Infrastructure | 14 |
|  |  | 1.11.6 | Economic Opportunities | 14 |
|  | 1.12 | Conclusions and Recommendations | Conclusions and Recommendations | 16 |
|  |  | 1.12.1 | Mineral Resources | 16 |
|  |  | 1.12.2 | Pit Geotechnical | 16 |
|  |  | 1.12.3 | Mining | 17 |
|  |  | 1.12.4 | Mineral Sorting | 17 |
|  |  | 1.12.5 | Processing | 17 |
|  |  | 1.12.6 | Tailings Management | 18 |
|  |  | 1.12.7 | Permitting | 18 |
|  |  | 1.12.8 | Plan and Budget for Additional Work | 18 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **2** | **Introduction and Terms of Reference** | **Introduction and Terms of Reference** | **Introduction and Terms of Reference** | 20.0 |
|  | 2.1 | Issuer | Issuer | 20.0 |
|  | 2.2 | Terms of Reference | Terms of Reference | 20.0 |
|  | 2.3 | Responsibility | Responsibility | 20.0 |
|  | 2.3 | Sources of Information | Sources of Information | 21.0 |
|  | 2.4 | Site Visit | Site Visit | 21.0 |
|  | 2.5 | Previous Reports | Previous Reports | 21.0 |
| **3** | **Property Description and Location** | **Property Description and Location** | **Property Description and Location** | 22.0 |
|  | 3.1 | General | General | 22.0 |
|  | 3.2 | Mineral Tenure | Mineral Tenure | 22.0 |
|  | 3.3 | Ownership Agreements | Ownership Agreements | 22.0 |
|  | 3.4 | Environmental | Environmental | 26.0 |
|  |  | 3.4.1 | Environmental Regulations | 26.0 |
|  |  | 3.4.2 | Environmental Liabilities | 26.0 |
|  |  | 3.4.3 | Other Significant Factors and Risks | 26.0 |
|  | 3.5 | Permits | Permits | 27.0 |
| **4** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | 28.0 |
| **5** | **History** | **History** | **History** | 29.0 |
|  | 5.1 | Exploration | Exploration | 29.0 |
|  | 5.2 | Historical Resource Estimate | Historical Resource Estimate | 32.0 |
| **6** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | 33.0 |
|  | 6.1 | Regional Geology | Regional Geology | 33.0 |
|  | 6.2 | Local Geology | Local Geology | 36.0 |
|  | 6.3 | Property Geology | Property Geology | 37.0 |
|  | 6.4 | Mineralization | Mineralization | 40.0 |
|  |  | 6.4.1 | Description of Mineralized Zones | 40.0 |
|  |  | 6.4.2 | Property Mineralization | 40.0 |
| **7** | **Exploration And Drilling** | **Exploration And Drilling** | **Exploration And Drilling** | 46.0 |
|  | 7.1 | Drilling and Trenching | Drilling and Trenching | 47.0 |
|  | 7.2 | Sampling and True Thickness Adjustments | Sampling and True Thickness Adjustments | 47.0 |
|  | 7.3 | 2006 Drill Program | 2006 Drill Program | 47.0 |
|  | 7.4 | 2007 to 2011 Drill Program | 2007 to 2011 Drill Program | 47.0 |
|  | 7.5 | 2012 Drill Program | 2012 Drill Program | 55.0 |
|  | 7.6 | Metal Equivalent Calculations | Metal Equivalent Calculations | 57.0 |
| **8** | **Sample Preparation, Analyses, and Security** | **Sample Preparation, Analyses, and Security** | **Sample Preparation, Analyses, and Security** | 59.0 |
|  | 8.1 | General sampling | General sampling | 59.0 |
|  | 8.2 | Density Determinations | Density Determinations | 60.0 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 8.3 | Assay Techniques | Assay Techniques | 61.0 |
|  | 8.4 | Security | Security | 61.0 |
|  | 8.5 | QA/QC Programs | QA/QC Programs | 62.0 |
|  |  | 8.5.1 | Historical Checks | 62.0 |
|  |  | 8.5.2 | Blanks | 63.0 |
|  |  | 8.5.3 | Internal Lab Standards | 64.0 |
|  |  | 8.5.4 | Internal Pulp Checks | 64.0 |
|  |  | 8.5.5 | CuMoCo Standards | 65.0 |
|  |  | 8.5.6 | Coarse Reject Duplicates | 68.0 |
|  | 8.6 | Survey Validation | Survey Validation | 68.0 |
|  | 8.7 | Verification of Drilling Data | Verification of Drilling Data | 68.0 |
| **9** | **Data Verification** | **Data Verification** | **Data Verification** | 68.0 |
| **10** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | 69.0 |
|  | 10.1 | Metallurgical Testing (2009, 2015) | Metallurgical Testing (2009, 2015) | 69.0 |
|  |  | 10.1.1 | Introduction | 69.0 |
|  |  | 10.1.2 | Sample Selection | 70.0 |
|  |  | 10.1.3 | Test-work Program | 70.0 |
|  |  | 10.1.4 | Conceptual Study Flotation Test-work | 71.0 |
|  |  | 10.1.5 | Grade and Recovery Predictions | 74.0 |
|  | 10.2 | Mineral Sorting | Mineral Sorting | 76.0 |
|  |  | 13.2.1 | Particle Sorting | 76.0 |
|  |  | 13.2.2 | Bulk Sorting | 77.0 |
| **11** | **Mineral Resource Estimates** | **Mineral Resource Estimates** | **Mineral Resource Estimates** | 81.0 |
|  | 11.1 | Introduction | Introduction | 81.0 |
|  | 11.2 | Data Analysis | Data Analysis | 81.0 |
|  | 11.3 | 50-Foot Composites | 50-Foot Composites | 86.0 |
|  | 11.4 | Variography | Variography | 88.0 |
|  | 11.5 | Block Model and Grade Estimation | Block Model and Grade Estimation | 89.0 |
|  | 11.6 | Bulk Density | Bulk Density | 92.0 |
|  | 11.7 | Reasonable Prospects of Eventual Economic Extraction | Reasonable Prospects of Eventual Economic Extraction | 92.0 |
|  | 11.8 | Resource Classification | Resource Classification | 93.0 |
|  | 11.9 | Recovered Value | Recovered Value | 95.0 |
|  | 11.10 | Mineral Resource Estimate | Mineral Resource Estimate | 97.0 |
| **12** | **Mineral Reserve Estimates** | **Mineral Reserve Estimates** | **Mineral Reserve Estimates** | 99.0 |
| **13** | **Mining Methods** | **Mining Methods** | **Mining Methods** | 99.0 |
|  | 13.1 | Mining Approach | Mining Approach | 99.0 |
|  | 13.2 | Pit Optimization | Pit Optimization | 99.0 |
|  |  | 13.2.1 | Pit Geotechnical Considerations | 99.0 |

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|:---|:---|:---|:---|:---|
|  |  | 13.2.2 | Bulk Sorting | 103.0 |
|  |  | 13.2.3 | Particle Sorting | 105.0 |
|  |  | 13.2.4 | Pit Optimization Input Parameters | 106.0 |
|  |  | 13.2.5 | Optimization Results | 107.0 |
|  |  | 13.2.6 | Pit Shell Selection | 109.0 |
|  | 13.3 | Waste Rock Facilities and Stockpile Design | Waste Rock Facilities and Stockpile Design | 111.0 |
|  |  | 13.3.1 | Charlotte's Gulch Waste Rock Facility | 113.0 |
|  | 13.4 | Production Schedule | Production Schedule | 113.0 |
|  | 13.5 | Equipment Selection and Fleet Requirements | Equipment Selection and Fleet Requirements | 114.0 |
| **14** | **Recovery Methods** | **Recovery Methods** | **Recovery Methods** | 116.0 |
|  | 14.1 | General | General | 116.0 |
|  | 14.2 | Bulk Sorting | Bulk Sorting | 116.0 |
|  | 14.3 | Particle Sorting | Particle Sorting | 119.0 |
|  | 14.4 | Mill Design Criteria Summary | Mill Design Criteria Summary | 119.0 |
|  | 14.5 | Plant Design Basis | Plant Design Basis | 121.0 |
|  | 14.6 | Throughput/Mill Feed and Availability | Throughput/Mill Feed and Availability | 121.0 |
|  | 14.7 | Processing Strategy | Processing Strategy | 121.0 |
|  | 14.8 | Flow Sheet Development and Equipment Sizing | Flow Sheet Development and Equipment Sizing | 121.0 |
|  | 14.9 | Unit Process Selection | Unit Process Selection | 121.0 |
|  |  |  |  | 123.0 |
| **15** | **Project Infrastructure** | **Project Infrastructure** | **Project Infrastructure** |  |
|  | 15.1 | General Layout | General Layout | 125.0 |
|  | 15.2 | Road Access | Road Access | 125.0 |
|  | 15.3 | Rail Access | Rail Access | 125.0 |
|  | 15.4 | Electrical Power | Electrical Power | 126.0 |
|  | 15.5 | Water Supply | Water Supply | 126.0 |
|  | 15.6 | Tailings Storage Facility | Tailings Storage Facility | 126.0 |
|  |  | 15.6.1 | Tailings Embankment | 127.0 |
|  |  | 15.6.2 | Tailings Impoundment | 128.0 |
| **16** | **Market Studies and Contracts** | **Market Studies and Contracts** | **Market Studies and Contracts** | 128.0 |
|  | 16.1 | Market Analysis | Market Analysis | 128.0 |
|  |  | 16.1.1 | Treatment and refining costs | 128.0 |
|  |  | 16.1.2 | Metal Prices | 128.0 |
| **17** | **Environmental Studies, Permitting, and Social or Community Impact** | **Environmental Studies, Permitting, and Social or Community Impact** | **Environmental Studies, Permitting, and Social or Community Impact** | 129.0 |
|  | 17.1 | Environmental and Permitting | Environmental and Permitting | 129.0 |
|  |  | 17.1.1 | Past and Present Permitting for Exploration Project | 129.0 |
|  | 17.2 | Permitting for Mining Operations | Permitting for Mining Operations | 131.0 |
|  |  | 17.2.1 | Federal Authorizations and Permits | 131.0 |
|  |  | 17.2.2 | Idaho State Authorizations and Permits | 134.0 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | 17.2.3 | Boise County Permits | 134.0 |
|  | 17.3 | Monitoring | Monitoring | 134.0 |
|  | 17.4 | Reclamation | Reclamation | 135.0 |
|  |  | 17.4.1 | Federal Reclamation Performance Bond | 135.0 |
|  |  | 17.4.2 | State Reclamation Performance Bond | 135.0 |
|  | 17.5 | Social and Community Impact | Social and Community Impact | 136.0 |
|  | 17.6 | Potential Issues | Potential Issues | 137.0 |
|  | 17.7 | Mine Closure – General Discussion | Mine Closure – General Discussion | 138.0 |
| **18** | **Capital and Operating Costs** | **Capital and Operating Costs** | **Capital and Operating Costs** | 140.0 |
|  | 18.1 | Capital Cost Estimate | Capital Cost Estimate | 140.0 |
|  |  | 18.1.1 | Mining Capital Costs | 141.0 |
|  |  | 18.1.2 | Processing Capital Costs | 141.0 |
|  |  | 18.1.3 | Tailings Storage Facilities Capital Costs | 144.0 |
|  |  | 18.1.4 | Capital Cost Estimate Exclusions | 145.0 |
|  | 18.2 | Operating Cost Estimate | Operating Cost Estimate | 146.0 |
|  |  | 18.2.1 | Mine Operating Costs | 146.0 |
|  |  | 18.2.2 | Sort Plant Operating Costs | 147.0 |
|  |  | 18.2.3 | Mill Operating Costs | 147.0 |
|  |  | 18.2.4 | General Site and Administrative Costs | 147.0 |
| **19** | **Economic Analysis** | **Economic Analysis** | **Economic Analysis** | 148.0 |
|  | 19.1 | Cautionary Statements | Cautionary Statements | 148.0 |
|  |  | 19.1.1 | Certainty of Preliminary Economic Assessment | 148.0 |
|  |  | 19.1.2 | Mineral Resources are Not Reserves | 148.0 |
|  | 19.2 | General | General | 148.0 |
|  | 19.3 | Summary | Summary | 148.0 |
|  | 19.4 | Project Cashflows | Project Cashflows | 151.0 |
|  | 19.5 | Production Schedule | Production Schedule | 151.0 |
|  | 19.6 | Pricing Assumptions | Pricing Assumptions | 156.0 |
|  | 19.7 | Processing Recovery Assumptions | Processing Recovery Assumptions | 156.0 |
|  | 19.8 | Capital Costs | Capital Costs | 156.0 |
|  | 19.9 | Operating Costs | Operating Costs | 158.0 |
|  | 19.10 | Royalties | Royalties | 158.0 |
|  | 19.11 | Taxation | Taxation | 158.0 |
|  | 19.12 | Off-Site Costs | Off-Site Costs | 158.0 |
|  | 19.13 | Sensitivity Analysis | Sensitivity Analysis | 158.0 |
| **20** | **Adjacent Properties** | **Adjacent Properties** | **Adjacent Properties** | 162.0 |
| **21** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | 162.0 |
| **22** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | 163.0 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 22.1 | Conclusions | Conclusions | 163.0 |
|  |  | 22.1.1 | Mineral Resource | 163.0 |
|  |  | 22.1.2 | Mining | 163.0 |
|  |  | 22.1.3 | Bulk Sorting | 163.0 |
|  |  | 22.1.4 | Particle Sorting | 163.0 |
|  |  | 22.1.5 | Project Economics | 164.0 |
|  | 22.2 | Project Risks | Project Risks | 164.0 |
|  |  | 22.2.1 | Mineral Resource | 164.0 |
|  |  | 22.2.2 | Mining | 164.0 |
|  |  | 22.2.3 | Mineral Sorting | 164.0 |
|  |  | 22.2.4 | Processing | 164.0 |
|  |  | 22.2.5 | Project Infrastructure | 165.0 |
|  |  | 22.2.6 | Permitting | 165.0 |
|  |  | 22.2.7 | Economic Risks | 165.0 |
|  | 22.3 | Project Opportunities | Project Opportunities | 166.0 |
|  |  | 22.3.1 | Mineral Resource | 166.0 |
|  |  | 22.3.2 | Mining | 166.0 |
|  |  | 22.3.3 | Mineral Sorting | 167.0 |
|  |  | 22.3.4 | Processing | 167.0 |
|  |  | 22.3.5 | Project Infrastructure | 167.0 |
|  |  | 22.3.6 | Economic Opportunities | 167.0 |
| **23** | **Recommendations** | **Recommendations** | **Recommendations** | 169.0 |
|  | 23.1 | Mineral Resources | Mineral Resources | 169.0 |
|  | 23.2 | Pit Geotechnical | Pit Geotechnical | 169.0 |
|  | 23.3 | Mining | Mining | 170.0 |
|  | 23.4 | Mineral Sorting | Mineral Sorting | 170.0 |
|  | 23.5 | Processing | Processing | 170.0 |
|  | 23.6 | Tailings Management | Tailings Management | 171.0 |
|  | 23.7 | Permitting | Permitting | 171.0 |
|  | 23.8 | Plan and Budget for Additional Work | Plan and Budget for Additional Work | 171.0 |
| **24** | **References** | **References** | **References** | 173.0 |
| **25** | **Reliance on Other Experts** | **Reliance on Other Experts** | **Reliance on Other Experts** | 175.0 |

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| | |
|:---|:---|
| **Appendix 1: Claims List** | 176 |
| **Appendix 2: Re-Splits of Rejects** | 182 |
| **Appendix 3: Drill Holes used in Resource Estimate** | 185 |
| **Appendix 4: Semi-variograms** | 187 |
| **Appendix 5: Scatter Plots showing Results from Historic Data Verification** | 212 |

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Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page viii</u>

**List of Figures**

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| | | |
|:---|:---|:---|
| Figure 3-1: | CuMo property location map | 24 |
| Figure 3-2: | Claim location map for the CuMo property | 25 |
| Figure 6-1: | Tectonic map of the western United States | 34 |
| Figure 6-2: | Distribution of Idaho-Montana porphyry deposits in relation to the great falls tectonic zone | 35 |
| Figure 6-3: | Geology of Boise County, Idaho, showing geological setting of CuMo deposit | 37 |
| Figure 6-4: | Core photographs of felsic porphyry types recognized in drill core | 39 |
| Figure 6-5: | Photographs of mineralized core from the CuMo 2006 program, hole C06-28 | 41 |
| Figure 6-6: | Photographs of molybdenite mineralization in 2008 drill core | 42 |
| Figure 6-7: | Surface distribution of quartz and epidote veinlets and metal zonation | 43 |
| Figure 6-8: | Geochemical distribution of Mo in surface rock chip samples | 44 |
| Figure 6-9: | Geochemical distribution of Cu in surface rock chip samples | 45 |
| Figure 7-1: | Map showing the location of completed and proposed drill holes | 50 |
| Figure 7-2: | CuMo deposit Q-Q cross section | 51 |
| Figure 7-3: | CuMo deposit H-H cross section | 52 |
| Figure 8-1: | MoS<sub>2</sub> in blank samples from CuMoCo drill programs at CuMo | 63 |
| Figure 8-2: | Cu in blank samples from 2008 drill program CuMo | 63 |
| Figure 8-3: | Scatter plot of Chemex internal duplicates for Mo ppm (Mo metal) | 64 |
| Figure 8-4: | Scatter plot of Chemex internal duplicates for Cu ppm | 64 |
| Figure 8-5: | Results for Standard S1 | 65 |
| Figure 8-6: | Results for Standard S2 | 66 |
| Figure 8-7: | Results for Standard S3 | 67 |
| Figure 10-1: | Particle sort XRF test results | 77 |
| Figure 10-2: | Impact of scale on distribution heterogeneity | 78 |
| Figure 10-3: | Impact of scale on "Waste in Ore" ratio | 79 |
| Figure 10-4: | CuMo composite-sample relationship | 80 |
| Figure 11-1: | Contact plots for oxide-Cu-Ag Zone contact | 83 |
| Figure 11-2: | Scatter plot showing Re vs MoS<sub>2</sub> in the Cu-Mo Zone | 91 |
| Figure 11-3: | Plan views of the measured, indicated and inferred blocks at CuMo | 95 |
| Figure 13-1: | Empirical pit wall chart with the Snowden (2012) walls added | 101 |
| Figure 13-2: | Particle sort analysis splitting between Mo-rich and Mo-poor samples | 106 |
| Figure 13-3: | Pit optimization results | 109 |
| Figure 13-4: | CuMo pit phase shell outlines | 110 |
| Figure 13-5: | CuMo pit phase shell east-west cross-section A-A' | 110 |
| Figure 13-6: | CuMo pit phase shell north-south cross-section B-B' | 111 |
| Figure 13-7: | CuMo mine layout | 112 |
| Figure 13-8: | CuMo LOM production schedule | 114 |
| Figure 14-1: | Schematic of three-stage bulk sorting plant with particle sorting | 117 |
| Figure 14-2: | Schematic of bulk sorting diversion system | 118 |
| Figure 14-3: | CuMo process schematic | 122 |
| Figure 15-1: | CuMo Clear Creek TSF and WRF buttress | 127 |
| Figure 15-2: | Cross-section A-A' through Clear Creek TSF and WRF buttress | 127 |
| Figure 19-1: | Project cashflow summary chart | 151 |
| Figure 19-2: | Metal production schedule graph | 155 |
| Figure 19-3: | Metals price sensitivity – net present value | 161 |
| Figure 19-4: | Single factor sensitivity – net present value | 162 |

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**List of Tables**

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| | | |
|:---|:---|:---|
| Table 1-1: | Metal prices for resource estimation | 4 |
| Table 1-2: | CuMo metal recoveries by zone | 4 |
| Table 1-3: | Measured resource within pit shell | 5 |
| Table 1-4: | Indicated resources | 5 |
| Table 1-5: | Measured and indicated resources | 6 |
| Table 1-6: | Inferred resources (molybdenum, copper, silver, rhenium and sulfur) | 6 |
| Table 1-7a: | Summary of Project Economics with Inferred Resources | 9 |
| Table 1-8b: | Summary of Project Economics without Inferred Resources | 10 |
| Table 1-9: | Budget for additional work | 19 |
| Table 2-1: | QP responsibilities | 21 |
| Table 5-1: | Summary of historic drilling | 30 |
| Table 5-2: | List of historic drill holes | 31 |
| Table 5-3: | CuMo historical results, 1982 Amax block model | 32 |
| Table 6-1: | Summary of rock units present at the CuMo property | 38 |
| Table 7-1: | Summary of holes drilled by CuMoCo | 47 |
| Table 7-2: | Summary of 2006 to 2011 diamond drilling at CuMo | 48 |
| Table 7-3: | Significant intersections from CuMo drilling | 53 |
| Table 7-4: | Summary of 2012 diamond drilling | 55 |
| Table 7-5: | Significant intersections from 2011-2012 CuMo drilling | 56 |
| Table 7-6: | Recoverable equivalent grades for significant intersections from 2011-2012 CuMo drilling | 56 |
| Table 7-7: | Metal prices used to calculate copper and molybdenum equivalent | 57 |
| Table 7-8: | Metallurgical recoveries used to calculate copper and MoS<sub>2</sub> equivalent | 57 |
| Table 7-9: | Terms used in formulae for equivalent grade calculations | 58 |
| Table 8-1: | Certified standards prepared for CuMo project | 60 |
| Table 8-2: | Density data example | 60 |
| Table 8-3: | Density measurement results summary | 61 |
| Table 10-1: | Summary of comminution test-work data | 71 |
| Table 10-2: | Baseline flotation results for CuMo composite samples | 72 |
| Table 10-3: | Cleaner flotation results for CuMo composite samples | 73 |
| Table 10-4: | Locked cycle test results | 74 |
| Table 10-5: | Tungsten recovery test results | 74 |
| Table 10-6: | Grade/recovery predictions for CuMo | 75 |
| Table 11-1: | Summary of MoS<sub>2</sub> and Cu contents | 82 |
| Table 11-2: | Summary of assay statistics for Cu and MoS<sub>2</sub> sorted by zone | 82 |
| Table 11-3: | Summary of assay statistics for Ag and W sorted by zone | 84 |
| Table 11-4: | Summary of capping levels by mineralized zone | 85 |
| Table 11-5: | Summary of capped assay statistics for Cu and MoS<sub>2</sub> sorted by zone | 86 |
| Table 11-6: | Summary of capped assay statistics for Ag and W sorted by zone | 86 |
| Table 11-7: | Summary of 50 ft composite statistics | 87 |
| Table 11-8: | Parameters for semi-variogram models at CuMo | 88 |

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| | | |
|:---|:---|:---|
| Table 11-9: | Estimation boundary summary | 89 |
| Table 11-10: | Summary of kriging search parameters for each mineralized zone | 90 |
| Table 11-11: | Summary of density parameters for each mineralized zone | 92 |
| Table 11-12: | Metal prices for resources | 95 |
| Table 11-13: | Metal recoveries sorted by mineralized zone | 96 |
| Table 11-14: | Measured resources | 97 |
| Table 11-15: | Indicated resources | 97 |
| Table 11-16: | Measured and indicated resources | 98 |
| Table 11-17: | Inferred resources (molybdenum, copper, silver, rhenium and sulfur) | 98 |
| Table 13-1: | Summary of the reviewed data types | 100 |
| Table 13-2: | Pit slope design details in Snowden (2012) | 100 |
| Table 13-3: | Pit optimization input parameters | 106 |
| Table 13-4: | CuMo mined quantities | 109 |
| Table 13-5: | CuMo primary mine equipment fleet | 115 |
| Table 14-1: | Summary of the process plant design criteria (150 ktpd). | 120 |
| Table 17-1: | Major permits and authorizations that may be required<sup>1</sup> | 132 |
| Table 18-1: | Summary of initial capital costs | 140 |
| Table 18-2: | Mine primary equipment capital costs | 141 |
| Table 18-3: | Summary of plant initial capital cost estimate | 142 |
| Table 18-4: | Summary of roaster initial capital cost estimate | 143 |
| Table 18-5: | Summary of LOM operating costs | 146 |
| Table 18-6: | Estimated plant average operating costs | 147 |
| Table 19-1a: | Summary of potential project economics with Inferred resources | 149 |
| Table 19-2b: | Summary of potential project economics without inferred resources | 150 |
| Table 19-3: | LOM annual project cash flow | 152 |
| Table 19-4: | LOM annual project cash flow – continued | 153 |
| Table 19-5: | Production schedule summary | 154 |
| Table 19-6: | Pricing assumptions for economic analysis | 156 |
| Table 19-7: | Processing recovery assumptions used for economic analysis | 156 |
| Table 19-8: | Capital cost summary | 157 |
| Table 19-9: | Operating costs summary | 158 |
| Table 19-10: | Two-factor sensitivity (NPV(8%) in $M) – Capex and Opex | 159 |
| Table 19-11: | Two-factor sensitivity (NPV(8%) in $M) – Capex and metal prices | 159 |
| Table 19-12: | Two-factor sensitivity (NPV(8%) in $M) – Opex and metal prices | 160 |
| Table 19-13: | Sensitivity (NPV(8%) in $M) – Individual metal prices | 160 |
| Table 23-1: | Budget for additional work | 172 |

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1 Executive Summary

The CuMo Project (Project) is designed to develop Cumo, Copper-Molybdenum-Silver- Rhenium deposit, and provide long-term employment and business opportunities for a rural area in Idaho, funded by an economically viable project. It would become one of the largest open pit Copper-Molybdenum mines in the United States and producer of Copper, Molybdenum, Silver and Rhenium , critical and strategic minerals.

This Technical Report Summary (TRS or Report) provides an overview of the Project and includes recommendations for future work. It discloses, at an Initial Assessment level, information about the geology, mineralization, exploration potential, Mineral Resources, mining methods, processing methods, infrastructure, social and economic benefits, environmental protection, cleanup, and repair of historical impacts, permitting, reclamation and closure concepts, capital and operating costs and an economic analysis for the Project.

**For readers to fully understand the information in this Report, they should read this Report in its entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this Report that qualifies the technical information contained in the Report. The Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in the Report is subject to the assumptions and qualifications contained in the Report. The economic and technical analyses included in this Report provide only a summary of the potential Project economics based on the assumptions set out herein. There is no guarantee that the Project economics described herein can be achieved.**

1.1 Introduction

This technical report summary (TRS or Report) was commissioned by the registrant, International CuMo Mining Corp. (CuMoCo), for its Copper-Molybdenum-Silver Project (CuMo or Project) In Boise County, Idaho for the purpose of reporting an initial assessment. CuMoCo is an Idaho company exploring options for the development and restoration of the project area.

This Report is the inaugural TRS developed for the CuMo Project in accordance with United States SEC S-K 1300 regulations. The TRS summarizes a 2020 Preliminary Economic Analysis (PEA) Technical Report (SRK, 2020) that was completed under Canadian Securities Administrators National Instrument (NI) 43-101 guidelines and published June , 2020 with the following notable differences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o An additional set of summary cash flows were produced that do not include inferred resources

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The TRS is classified as an Initial Assessment study whereas the 2020 PEA was classified as a Preliminary
Economic Analysis .

Site visits for the purposes of personal inspections of the CuMo property have been undertaken by Shaun Dykes, Geologic QP, 2005 to 2022; Mr. Gary Giroux, resource QP (June 2015); Mr. Bob McCarthy, SRK mining QP (October 2018); Mr. Andy Thomas, SRK pit geotechnical QP (October 2018), and Mr. Calvin Boese, SRK waste management QP (October 2018).

Note: Throughout this report, all currency is United States dollars and all units are imperial, unless otherwise specifically noted.

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1.2 Property Description, History, and Ownership

The CuMo deposit is a molybdenum-copper deposit situated 37 miles, equivalent to 60 kilometers (km), northeast of Boise, Idaho, USA. The project is situated in the southern section of the Boise Mountains which are characterized by north-northwest trending mountain ranges separated by alluvial filled valleys. Topographic elevations on the CuMo claims range from 5,400 feet (1,700 meters) to 7,100 ft (2,400 m) above sea level.

Situated in a historic lode gold camp with a recorded production of 2.8 million ounces, molybdenite (MoS<sub>2</sub>) mineralization was not discovered in this area until 1963 by Amax Exploration (Amax). After conducting surface sampling in 1964, Amax relinquished rights to the property. It was subsequently explored by Curwood Mining Company, Midwest Oil Corporation (later Amoco Minerals Company), Amax (a second time), and then Climax Molybdenum Company (a subsidiary of Amax Inc.). The Historic Drilling was done between 1969 and 1982 for a total of 10,981 m (36,026 ft) in 23 diamond drill holes and three reverse circulation holes. Note: Reverse circulation holes are not used in the resource calculation.

The property was re-staked in 1998 by CuMo Molybdenum Mining Inc. and optioned to Mosquito Consolidated Gold Mines Ltd., (now CuMoCo) in 2004.

Presently, the CuMo project is held by a wholly owned USA subsidiary of CuMoCo, Interntaional CuMo Mining Corporation (CuMoCo).

1.3 Exploration

After CuMoCo had optioned the property in 2004, Kobex Resources Ltd. (Kobex) optioned it from CuMoCo in 2005 and commenced drilling in 2006. Kobex drilled one complete hole and 50% of a second hole 1,087 m (3,565 ft). In late 2006, CuMoCo resumed control and completed the 2006 to 2011 exploration drilling programs, including the incomplete hole by Kobex. CuMoCo completed 20,187 m (66,230 ft) of drilling in 32 diamond drill holes in that program. During 2012, CuMoCo drilled nine additional holes totaling 4,713 m (15,464 ft), aimed at improving the resource categorization and gaining a better understanding of the extent of the deposit.

1.4 Geology and Mineralization

The CuMo deposit is located at the southwestern end of the Idaho-Montana Porphyry Belt. Igneous complexes in this belt are interpreted to be related to an Eocene, intra-arc rift, and are characterized by alkalic rocks in the northeast, mixed alkalic and calc-alkalic rocks in the middle, and calc-alkaline rocks in the southwest. The CuMo deposit is typical of large, dispersed, low grade molybdenum ± copper porphyry deposits that are associated with hybrid magmas typified by fluorine-poor, differentiated monzogranite igneous complexes. Due to their large size, the total contained economic molybdenum in these types of deposits can be equivalent to or exceed that of high-grade molybdenum deposits.

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CuMoCo's work has resulted in the interpretation and modelling of three distinct mineralized zones within the deposit. These zones were previously interpreted by Amax as distinct shells that were produced by separate intrusions. Re-interpretation of down-hole histograms for copper (Cu), silver (Ag) and molybdenite (MoS<sub>2</sub><sup>[1]</sup>) suggests the mineralized zones are part of a single, large, concentrically zoned system with an upper copper-silver zone (named Cu-Ag Zone), underlain by a transitional copper-molybdenum zone (named Cu-Mo Zone), in turn underlain by a lower molybdenum-rich zone (named Mo Zone). Three-dimensional modeling of the above zonation indicates the current area being drilled is located on the north side of a large system extending 4.5 km (15,000 ft) in diameter, of which 1.5 km (3,000 ft) has been drilled.

1.5 Mineral Resource Estimate

The Mineral Resource estimates for the Project were estimated in conformity with Committee for Mineral Reserves International Reporting Standards (CRIRSCO) "International Reporting Template for the public reporting of Exploration Targets, Exploration Results, Mineral Resources and Mineral Reserves" as adopted by the International Council on Mining & Metals November 2019. The mineral resources are reported in in accordance with §§229.1300 through 229.1305 (subpart 229.1300 of Regulation S-K).

The resource estimate was based on a total of 65 diamond drill holes totaling 36,166 m (118,654 ft). Note that the three reverse circulation holes were not used in the resource estimate. Nine of the 65 diamond drill holes were completed in 2012. As no additional drilling has been completed since the 2015 resource was estimated, it is considered current.

A geological model separating the CuMo Deposit into four mineralize zones with an oxidized layer on top was developed by CuMoCo geologists. In addition, major fault blocks were identified both by assay data and by marker beds. Assays were tagged as one of four mineralized zones: a near surface Cu-Ag Zone, a deeper Cu-Mo Zone and a still deeper Mo Zone and an underlying potassic-silica zone (MSI). Statistical analysis of each variable in each zone led to the capping of assays based on the grade distribution within each zone. Uniform down-hole 50 feet (ft) composites were produced for each zone. For variography, the major post mineral fault blocks were rotated back to their original position using marker beds. Semi-variograms were produced for each variable within each zone based on the samples' original pre-fault locations. A block model with block dimensions of 50 ft was superimposed on the mineralized zones. Grade was interpolated into blocks by ordinary kriging. A tonnage factor was determined for each zone based on multiple specific gravity determinations. Individual blocks were classified as measured, indicated or inferred resource based on their location relative to drill-hole composites.

To take into account the four primary potentially economic minerals estimated, a form of metal equivalent or recoverable value (RCV) was calculated for each block based on reasonable commodity prices and estimated recoveries in each of five zones; the oxide zone (a combination of altered Cu-Ag and Cu-Mo Zones), Cu-Ag Zone, Cu-Mo Zone, Mo Zone and MSI Zone. The 2015 resource estimate is summarized below for RCV cut-offs.

<sup>1</sup> The convention for the CuMo project has been to measure percent elemental molybdenum (%Mo) in assays and to calculate %MoS2 by multiplying %Mo by 1.6681. Both %Mo and %MoS2 are stored in the project's database, and the latter, %MoS2, is used in resource estimates and mine planning.

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The metal prices used for resource estimation are provided in Table 1-1.

**Table 1-1: Metal prices for resource estimation**

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| | |
|:---|:---|
| **Metal** | **Price** |
| Copper (Cu) (per lb) | $3.00 |
| Molybdenum oxide (MoO3) (per lb) | $10.00 |
| Molybdenum Metal (Mo) (per lb) | $15.00 |
| Silver (Ag) (per oz) | $12.50 |

---

The metal recoveries used were a function of mineralized zones as follows in Table 1-2.

**Table 1-2: CuMo metal recoveries by zone**

---

| | | | |
|:---|:---|:---|:---|
| **Zone** | **Cu Recovery (%)** | **Mo Recovery (%)** | **Ag Recovery (%)** |
| OX | 60 | 80 | 65 |
| Cu-Ag | 68 | 86 | 75 |
| Cu-Mo | 85 | 92 | 78 |
| Mo | 72 | 95 | 55 |
| MSI | 72 | 95 | 55 |

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In 2012, Snowden Mining Consultants (Snowden) used Geovia's Whittle<sup>TM</sup> pit optimizer to determine a constraining open pit shell for the CuMo deposit. Optimization parameters were from Thompson Creek mine (a comparable open pit molybdenum project located in Idaho). The optimization parameters included mill feed, mining and processing costs of $7.52 per processed ton, overall pit slope angles of 45°, metallurgical recoveries as shown above and appropriate dilution and offsite costs and royalties. The commodity prices used in 2012 by Snowden for restraining the resource were Mo at $25/lb, Cu at $3/lb, Ag at $20/oz and W at $10/lb. This pit constraint is still valid.

Since the infill drill holes completed in 2012 were all within the conceptual pit, this resource update uses the Snowden 2012 optimum pit shell to constrain the estimate.

In the mineral resource estimate tables below (Table 1-3, Table 1-4, Table 1-5, and Table 1-6), the base case $5.00/t RCV cut-off is highlighted and is selected based on operating costs and the results of grade improvement using a mineral sorting process. The $5.00 cut-off is suggested to separate waste from material that is fed into the sorters. From the sorters, only mill feed above an economic cut-off would be sent for immediate processing.

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It should be noted that since the convention for the CuMo project has been to work with %MoS<sub>2</sub>, as calculated from measured %Mo, the %MoS<sub>2</sub> values in the resource estimate tables are 1.6681 times greater than %Mo.

An estimate for rhenium (Re) and sulfur (S) associated with the MoS<sub>2</sub> was completed using linear regression of MoS<sub>2</sub> vs. Re and MoS<sub>2</sub> vs S to show the average grades of Re and S that would be contained with MoS<sub>2</sub> within each block. The Re and S were not used to determine the RCV value of resources shown in Table 1-3, Table 1-4, Table 1-5, and Table 1-6 below.

Note: Regression analysis is not industry standard practice in calculating overall resources. However, the fact that rhenium is entirely and almost all the sulfur are contained within the material containing MoS<sub>2</sub>, (note; a minor amount of sulfur is contained in pyrite) which has been estimated by kriging, means that regression is a valid method of obtaining a reasonable estimate of the rhenium and sulfur contents at the level of precision of this study. Due to the large number of samples involved in the regression analysis, the confidence of this particular regression estimate is comparable to that obtained by the method of ordinary kriging.

**Table 1-3: Measured resource within pit shell**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;308.4 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;0.074 | &nbsp;&nbsp;2.09 | &nbsp;&nbsp;17.32 | &nbsp;&nbsp;0.029 | &nbsp;&nbsp;0.233 | &nbsp;&nbsp;292.1 | &nbsp;&nbsp;456.5 | &nbsp;&nbsp;18.8 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;297.2 | &nbsp;&nbsp;0.081 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;**2.09** | &nbsp;&nbsp;**17.83** | &nbsp;&nbsp;**0.03** | &nbsp;&nbsp;**0.229** | &nbsp;&nbsp;**288.6** | &nbsp;&nbsp;**451.7** | &nbsp;&nbsp;**18.1** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;282 | &nbsp;&nbsp;0.085 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;2.06 | &nbsp;&nbsp;18.48 | &nbsp;&nbsp;0.031 | &nbsp;&nbsp;0.223 | &nbsp;&nbsp;287.4 | &nbsp;&nbsp;428.7 | &nbsp;&nbsp;16.9 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;227.9 | &nbsp;&nbsp;0.097 | &nbsp;&nbsp;0.075 | &nbsp;&nbsp;2 | &nbsp;&nbsp;20.50 | &nbsp;&nbsp;0.036 | &nbsp;&nbsp;0.217 | &nbsp;&nbsp;265 | &nbsp;&nbsp;341.8 | &nbsp;&nbsp;13.3 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;195.4 | &nbsp;&nbsp;0.105 | &nbsp;&nbsp;0.072 | &nbsp;&nbsp;1.9 | &nbsp;&nbsp;21.71 | &nbsp;&nbsp;0.039 | &nbsp;&nbsp;0.212 | &nbsp;&nbsp;246 | &nbsp;&nbsp;281.3 | &nbsp;&nbsp;10.8 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;159.7 | &nbsp;&nbsp;0.115 | &nbsp;&nbsp;0.067 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;23.04 | &nbsp;&nbsp;0.043 | &nbsp;&nbsp;0.207 | &nbsp;&nbsp;220.1 | &nbsp;&nbsp;213.9 | &nbsp;&nbsp;8.4 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;122.9 | &nbsp;&nbsp;0.125 | &nbsp;&nbsp;0.063 | &nbsp;&nbsp;1.7 | &nbsp;&nbsp;24.50 | &nbsp;&nbsp;0.047 | &nbsp;&nbsp;0.202 | &nbsp;&nbsp;184.1 | &nbsp;&nbsp;154.8 | &nbsp;&nbsp;6.1 |

---

Source: Giroux et al, 2015, modified 2019

**Table 1-4: Indicated resources**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;2216.1 | &nbsp;&nbsp;0.049 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;2.48 | &nbsp;&nbsp;12.32 | &nbsp;&nbsp;0.018 | &nbsp;&nbsp;0.277 | &nbsp;&nbsp;1301.9 | &nbsp;&nbsp;3501.4 | &nbsp;&nbsp;160.3 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;**1972.3** | &nbsp;&nbsp;**0.053** | &nbsp;&nbsp;**0.085** | &nbsp;&nbsp;**2.57** | &nbsp;&nbsp;**13.40** | &nbsp;&nbsp;**0.019** | &nbsp;&nbsp;**0.269** | &nbsp;&nbsp;**1253.3** | &nbsp;&nbsp;**3352.9** | &nbsp;&nbsp;**147.8** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;1708.3 | &nbsp;&nbsp;0.059 | &nbsp;&nbsp;0.088 | &nbsp;&nbsp;2.59 | &nbsp;&nbsp;14.55 | &nbsp;&nbsp;0.021 | &nbsp;&nbsp;0.258 | &nbsp;&nbsp;1208.4 | &nbsp;&nbsp;3006.5 | &nbsp;&nbsp;129 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;1050.6 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;2.55 | &nbsp;&nbsp;17.67 | &nbsp;&nbsp;0.027 | &nbsp;&nbsp;0.235 | &nbsp;&nbsp;957.4 | &nbsp;&nbsp;1891.1 | &nbsp;&nbsp;78.1 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;798.5 | &nbsp;&nbsp;0.083 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;2.56 | &nbsp;&nbsp;19.06 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.231 | &nbsp;&nbsp;794.6 | &nbsp;&nbsp;1437.2 | &nbsp;&nbsp;59.6 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;541.6 | &nbsp;&nbsp;0.093 | &nbsp;&nbsp;0.088 | &nbsp;&nbsp;2.49 | &nbsp;&nbsp;20.60 | &nbsp;&nbsp;0.034 | &nbsp;&nbsp;0.226 | &nbsp;&nbsp;603.9 | &nbsp;&nbsp;953.2 | &nbsp;&nbsp;39.3 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;301.3 | &nbsp;&nbsp;0.106 | &nbsp;&nbsp;0.082 | &nbsp;&nbsp;2.36 | &nbsp;&nbsp;22.49 | &nbsp;&nbsp;0.039 | &nbsp;&nbsp;0.219 | &nbsp;&nbsp;383 | &nbsp;&nbsp;494.2 | &nbsp;&nbsp;20.7 |

---

Source: Giroux et al, 2015, modified 2019

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Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 6</u>

**Table 1-5: Measured and indicated resources**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;2524.6 | &nbsp;&nbsp;0.053 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;2.43 | &nbsp;&nbsp;12.93 | &nbsp;&nbsp;0.019 | &nbsp;&nbsp;0.272 | &nbsp;&nbsp;1604.3 | &nbsp;&nbsp;3988.9 | &nbsp;&nbsp;178.9 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;**2269.6** | &nbsp;&nbsp;**0.057** | &nbsp;&nbsp;**0.084** | &nbsp;&nbsp;**2.5** | &nbsp;&nbsp;**13.98** | &nbsp;&nbsp;**0.021** | &nbsp;&nbsp;**0.264** | &nbsp;&nbsp;**1551.1** | &nbsp;&nbsp;**3812.9** | &nbsp;&nbsp;**165.5** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;1990.4 | &nbsp;&nbsp;0.063 | &nbsp;&nbsp;0.086 | &nbsp;&nbsp;2.51 | &nbsp;&nbsp;15.10 | &nbsp;&nbsp;0.022 | &nbsp;&nbsp;0.253 | &nbsp;&nbsp;1503.5 | &nbsp;&nbsp;3423.5 | &nbsp;&nbsp;145.7 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;1278.6 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;0.087 | &nbsp;&nbsp;2.46 | &nbsp;&nbsp;18.17 | &nbsp;&nbsp;0.029 | &nbsp;&nbsp;0.232 | &nbsp;&nbsp;1211.1 | &nbsp;&nbsp;2224.8 | &nbsp;&nbsp;91.7 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;993.9 | &nbsp;&nbsp;0.088 | &nbsp;&nbsp;0.087 | &nbsp;&nbsp;2.43 | &nbsp;&nbsp;19.58 | &nbsp;&nbsp;0.032 | &nbsp;&nbsp;0.227 | &nbsp;&nbsp;1048.7 | &nbsp;&nbsp;1729.5 | &nbsp;&nbsp;70.4 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;701.4 | &nbsp;&nbsp;0.098 | &nbsp;&nbsp;0.083 | &nbsp;&nbsp;2.33 | &nbsp;&nbsp;21.16 | &nbsp;&nbsp;0.036 | &nbsp;&nbsp;0.221 | &nbsp;&nbsp;824.1 | &nbsp;&nbsp;1164.2 | &nbsp;&nbsp;47.7 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;424.3 | &nbsp;&nbsp;0.112 | &nbsp;&nbsp;0.077 | &nbsp;&nbsp;2.17 | &nbsp;&nbsp;23.07 | &nbsp;&nbsp;0.041 | &nbsp;&nbsp;0.214 | &nbsp;&nbsp;569.8 | &nbsp;&nbsp;653.4 | &nbsp;&nbsp;26.9 |

---

Source: Giroux et al, 2015, modified 2019

**Table 1-6: Inferred resources (molybdenum, copper, silver, rhenium and sulfur)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;3373.6 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.057 | &nbsp;&nbsp;1.93 | &nbsp;&nbsp;9.55 | &nbsp;&nbsp;0.014 | &nbsp;&nbsp;0.304 | &nbsp;&nbsp;1617.9 | &nbsp;&nbsp;3845.9 | &nbsp;&nbsp;189.9 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;**2556.6** | &nbsp;&nbsp;**0.048** | &nbsp;&nbsp;**0.067** | &nbsp;&nbsp;**2.13** | &nbsp;&nbsp;**11.48** | &nbsp;&nbsp;**0.017** | &nbsp;&nbsp;**0.282** | &nbsp;&nbsp;**1471.4** | &nbsp;&nbsp;**3425.9** | &nbsp;&nbsp;**158.8** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;1996 | &nbsp;&nbsp;0.056 | &nbsp;&nbsp;0.07 | &nbsp;&nbsp;2.23 | &nbsp;&nbsp;13.07 | &nbsp;&nbsp;0.02 | &nbsp;&nbsp;0.261 | &nbsp;&nbsp;1340.1 | &nbsp;&nbsp;2794.4 | &nbsp;&nbsp;129.8 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;996.4 | &nbsp;&nbsp;0.078 | &nbsp;&nbsp;0.064 | &nbsp;&nbsp;1.98 | &nbsp;&nbsp;16.74 | &nbsp;&nbsp;0.028 | &nbsp;&nbsp;0.231 | &nbsp;&nbsp;931.8 | &nbsp;&nbsp;1275.4 | &nbsp;&nbsp;57.5 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;637 | &nbsp;&nbsp;0.086 | &nbsp;&nbsp;0.074 | &nbsp;&nbsp;2.16 | &nbsp;&nbsp;18.63 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.244 | &nbsp;&nbsp;656.8 | &nbsp;&nbsp;942.7 | &nbsp;&nbsp;40.1 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;384.8 | &nbsp;&nbsp;0.094 | &nbsp;&nbsp;0.084 | &nbsp;&nbsp;2.34 | &nbsp;&nbsp;20.49 | &nbsp;&nbsp;0.032 | &nbsp;&nbsp;0.259 | &nbsp;&nbsp;433.7 | &nbsp;&nbsp;646.4 | &nbsp;&nbsp;26.3 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;190.2 | &nbsp;&nbsp;0.109 | &nbsp;&nbsp;0.078 | &nbsp;&nbsp;2.37 | &nbsp;&nbsp;22.80 | &nbsp;&nbsp;0.037 | &nbsp;&nbsp;0.262 | &nbsp;&nbsp;248.6 | &nbsp;&nbsp;296.8 | &nbsp;&nbsp;13.1 |

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1.6 Project Development and Operations

CuMo is to be developed as an open pit mining operation, mining waste and providing feed to a primary crusher which then supplies crushed material to a mineral sorting plant. The sorting plant consists of both bulk and particle sorting and produces feed for a mill and flotation plant. The project plan includes an off-site roaster to convert molybdenum concentrate (as MoS<sub>2</sub>) to saleable MoO<sub>3</sub>. Major by-products are copper and silver, and minor by-products are rhenium and sulfuric acid. Potential for the production of tungsten as a minor by-product may also exist.

The proposed operation is for a 150,000 short tons per day (stpd) feed rate to the mill. This requires a sort feed rate averaging about 200,000 stpd, with a maximum of about 265,000 stpd. Mining rates to achieve this feed average about 400,00 stpd, reaching a maximum mining rate of 500,000 stpd.

The overall process is for material to be mined at the mining rate, and a grade control cut-off is applied to that material to determine what material is sent to the sort plant (sorter feed); the remaining material is sent to waste dumps. The sort plant consists of an initial three-stage bulk sort process, where for each stage, a pair of cut-offs is applied to produce mill feed, waste, and middlings streams. The middlings stream for each sort stage becomes the feed for the next sort stage. After the third sort, the middlings are sent to a stockpile which is the feed source for a particle sorting process. The product from the particle sort process is combined with the mill feed product of the bulk sort process in a coarse material stockpile for feed to the mill.

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The mill is a conventional semi-autogenous grinding circuit and flotation circuit creating an interim copper-molybdenum concentrate which is then further processed in a molybdenum flotation circuit to separate copper and molybdenum concentrates. Molybdenum concentrate is transported to the project roaster for production of MoO<sub>3</sub>. Copper concentrate is shipped to market.

The tailings storage facility (TSF) will be located at the headwaters of the Clear Creek watershed, in a natural basin formed by the surrounding ridgeline. The TSF will have capacity to store the 1,582M tons (~900M m<sup>3</sup>) of tailings produced over the 28 year mine life, with an ultimate crest elevation of 6,950 ft. Tailings containment will be provided by the natural topography on the valley sides and an engineered dam that will be buttressed by the Clear Creek waste rock facility (WRF) constructed immediately downstream of the TSF. A starter dam will be constructed to elevation 6300 ft to facilitate early mine production, followed by an additional five raises spread out over the life of the mine.

1.7 Social and Environmental

At this time, no issues were identified that would materially impact the ability to eventually extract mineral resources at the project.

The proposed mine will be located on public land administered by the United States Forest Service (USFS) and private land owned and controlled by ICMC. The permitting path will involve multiple state and federal agencies. Permits likely to be required for the project are presented in Table 20-1. An environmental impact statement will be required at the level of NEPA analysis for mine development, operations, and closure. Reclamation bonds will be required by both federal and state agencies. The reclamation liability for the proposed mine will have to be determined based on third-party costs, and the bond amount will have to be posted using an approved financial instrument

ICMC has initiated consultation with various stakeholders namely: government officials at all levels and local communities in regard to the potential social and community impacts or improvements that may occur as the project progresses. All groups are provided regular updates as the project is proceeding. Local communities and officials have come out in strong support of the project and are actively working with the project on both the Grimes Creek project and future planning (Hilscher et al, 2018).

The mine will be located in an area used for weekend summer dispersed recreation and fall big-game hunting and is well-known in the Boise area. Organized environmental groups such as the Idaho Conservation League and Sierra Club are keeping their constituents informed so as to coordinate opposition to the project. As such, well-funded, organized opposition to mining activities should be anticipated.

At the current time the United States Forest Service (USFS) is working on a Supplemental Red Line Environmental Assessment that will allow the Company to proceed to the next round of drilling and road access construction on the property. The authorization is expected in 2020, and no surface disturbing activities can proceed on the property until the authorization is received. This is the only ongoing permitting activity.

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1.8 Project Costs

Operating costs were derived from the mining operation based on comparison to similar size operations and the authors' experience. Modifications were made to account for varying haul profiles that are expected during the mine life. General and administrative costs were similarly based on similar size operations and the authors' experience.

Processing costs were based on prior work by Ausenco (Ausenco, 2009) and compare well with more recent studies and so continue to apply.

Capital costs for mining were based on evaluation of mining equipment fleet requirements and application of unit equipment prices used in recent studies. Pre-production mining (pre-stripping) was also capitalized for the purpose of economic analysis. Capital costs for the sorting plant were estimated based on its material handling focus (conveyors).

The capital costs for infrastructure and mineral processing from the earlier Ausenco work (Ausenco, 2009) were reviewed and were deemed reasonable in comparison to more recent studies of large porphyry projects though some cost escalation was applied.

1.9 Project Economics

1.9.1 Cautionary Statements

**Certainty of Initial Assessment**

The Initial Assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that initial assessment will be realized.

1.9.2 Economic Summary

The project as presented and under the current assumptions has the potential to be economic. The after-tax NPV is positive and is robust across a range of sensitivities with respect to capital costs, operating costs and revenue (price). A summary of the project economics is shown in Table 1-7a and b. Two tables are presented one with the inferred resource included one without. Due to the ore sorting and central location of the pit a large portion of the inferred component of the resource is located on the outer edges in the waste blocks. What inferred that is located within the mineable resource has been converted to waste.

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**Table 1-7a: Summary of Project Economics with Inferred Resources**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Project Metric** | &nbsp;&nbsp;**Value** |
| &nbsp;&nbsp;Pre-Tax NPV @ 5% | &nbsp;&nbsp;2470 |
| &nbsp;&nbsp;Pre-Tax NPV @ 8% | &nbsp;&nbsp;800 |
| &nbsp;&nbsp;Pre-Tax NPV @ 10% | &nbsp;&nbsp;113 |
| &nbsp;&nbsp;Pre-Tax IRR | &nbsp;&nbsp;10% |
| &nbsp;&nbsp;After-Tax NPV @ 5% | &nbsp;&nbsp;1709 |
| &nbsp;&nbsp;**After-Tax NPV @ 8%** | &nbsp;&nbsp;**356** |
| &nbsp;&nbsp;After-Tax NPV @ 10% | &nbsp;&nbsp;-205 |
| &nbsp;&nbsp;After-Tax IRR | &nbsp;&nbsp;9% |
| &nbsp;&nbsp;Undiscounted After-Tax Cash Flow (LOM) | &nbsp;&nbsp;7032 |
| &nbsp;&nbsp;Payback Period from Start of Processing | &nbsp;&nbsp;8.0 |
| &nbsp;&nbsp;Initial Capital Expenditure | &nbsp;&nbsp;3071 |
| &nbsp;&nbsp;LOM Sustaining Capital Expenditure | &nbsp;&nbsp;972 |
| &nbsp;&nbsp;Closure | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;LOM C-1 Cash Costs After By-product Credits | &nbsp;&nbsp;4.67 |
| &nbsp;&nbsp;Nominal Flotation Process Capacity | &nbsp;&nbsp;150000 |
| &nbsp;&nbsp;Mine Life (years @ > 90% of full production) | &nbsp;&nbsp;28 |
| &nbsp;&nbsp;LOM Flotation Mill Feed | &nbsp;&nbsp;1582526 |
| &nbsp;&nbsp;LOM Grades | &nbsp;&nbsp;LOM Grades |
| &nbsp;&nbsp; Molybdenite (MoS<sub>2</sub>) | &nbsp;&nbsp;0.074% |
| &nbsp;&nbsp; Molybdenum (elemental Mo) | &nbsp;&nbsp;0.044% |
| &nbsp;&nbsp; Copper | &nbsp;&nbsp;0.105% |
| &nbsp;&nbsp; Silver | &nbsp;&nbsp;3.00 |
| &nbsp;&nbsp;LOM Waste Volume | &nbsp;&nbsp;2425101 |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Sort Feed) | &nbsp;&nbsp;1.11 |
| &nbsp;&nbsp;Mass Pull to Mill from Sort Feed | &nbsp;&nbsp;72% |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Mill Feed) | &nbsp;&nbsp;1.53 |
| &nbsp;&nbsp;**First Five Years Average Annual Metal Production** | &nbsp;&nbsp;**First Five Years Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;34976 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;93394 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3940 |
| &nbsp;&nbsp;**LOM Average Annual Metal Production** | &nbsp;&nbsp;**LOM Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;43072 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;84229 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3575 |
| &nbsp;&nbsp;**LOM Average Mill Process Recovery** | &nbsp;&nbsp;**LOM Average Mill Process Recovery** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;91.87% |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;76.33% |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;70.42% |

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**Table 1-8b: Summary of Project Economics without Inferred Resources**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Project Metric** | &nbsp;&nbsp;**Value** |
| &nbsp;&nbsp;Pre-Tax NPV @ 5% | &nbsp;&nbsp;2328 |
| &nbsp;&nbsp;Pre-Tax NPV @ 8% | &nbsp;&nbsp;771 |
| &nbsp;&nbsp;Pre-Tax NPV @ 10% | &nbsp;&nbsp;102 |
| &nbsp;&nbsp;Pre-Tax IRR | &nbsp;&nbsp;10% |
| &nbsp;&nbsp;After-Tax NPV @ 5% | &nbsp;&nbsp;1674 |
| &nbsp;&nbsp;**After-Tax NPV @ 8%** | &nbsp;&nbsp;**356** |
| &nbsp;&nbsp;After-Tax NPV @ 10% | &nbsp;&nbsp;-225 |
| &nbsp;&nbsp;After-Tax IRR | &nbsp;&nbsp;9% |
| &nbsp;&nbsp;Undiscounted After-Tax Cash Flow (LOM) | &nbsp;&nbsp;6575 |
| &nbsp;&nbsp;Payback Period from Start of Processing | &nbsp;&nbsp;8.0 |
| &nbsp;&nbsp;Initial Capital Expenditure | &nbsp;&nbsp;3071 |
| &nbsp;&nbsp;LOM Sustaining Capital Expenditure | &nbsp;&nbsp;972 |
| &nbsp;&nbsp;Closure | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;LOM C-1 Cash Costs After By-product Credits | &nbsp;&nbsp;4.67 |
| &nbsp;&nbsp;Nominal Flotation Process Capacity | &nbsp;&nbsp;150000 |
| &nbsp;&nbsp;Mine Life (years @ > 90% of full production) | &nbsp;&nbsp;28 |
| &nbsp;&nbsp;LOM Flotation Mill Feed | &nbsp;&nbsp;1582526 |
| &nbsp;&nbsp;LOM Grades | &nbsp;&nbsp;LOM Grades |
| &nbsp;&nbsp; Molybdenite (MoS<sub>2</sub>) | &nbsp;&nbsp;0.076% |
| &nbsp;&nbsp; Molybdenum (elemental Mo) | &nbsp;&nbsp;0.045% |
| &nbsp;&nbsp; Copper | &nbsp;&nbsp;0.108% |
| &nbsp;&nbsp; Silver | &nbsp;&nbsp;3.10 |
| &nbsp;&nbsp;LOM Waste Volume | &nbsp;&nbsp;255706 |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Sort Feed) | &nbsp;&nbsp;1.11 |
| &nbsp;&nbsp;Mass Pull to Mill from Sort Feed | &nbsp;&nbsp;72% |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Mill Feed) | &nbsp;&nbsp;1.53 |
| &nbsp;&nbsp;**First Five Years Average Annual Metal Production** | &nbsp;&nbsp;**First Five Years Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;37640 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;90756 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3731 |
| &nbsp;&nbsp;**LOM Average Annual Metal Production** | &nbsp;&nbsp;**LOM Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;34980 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;84233 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3375 |
| &nbsp;&nbsp;**LOM Average Mill Process Recovery** | &nbsp;&nbsp;**LOM Average Mill Process Recovery** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;91.87% |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;76.33% |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;70.42% |

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1.10 Project Risks

1.10.1 Mineral Resource

The mineral resource is supported by exploration results, test-work and modelling. As with any mineral resource estimate there is uncertainty inherent in the estimation process. There is a risk that the grades and metallurgical recoveries may be lower than currently modelled. There is also a risk that the interpretation of the results is inaccurate and that less mineralized material is present than is currently modelled.

Additional exploration and test-work will potentially reduce this risk as the project is advanced.

1.10.2 Mining

The mining concepts for CuMo are largely proven. The adoption of autonomous equipment does possess some risk in that federal and local regulators may require extensive efforts by proponents to ensure the safety of their operations.

The CuMo open pit is envisioned to be a large, deep pit (up to 3500 ft deep). With this comes the potential geotechnical risk for wall failures. While the author has assumed a relatively flat overall wall angle for the study (37°), there may be risks associated with yet unknown rock mass or structural geology conditions that may require consideration of even flatter slopes in places.

1.10.3 Mineral Sorting

The technology envisioned in this study for bulk sorting, prompt gamma neutron activation analysis (PGNAA), has had limited application to molybdenum-copper deposits. While demonstrated for some low-grade copper deposits, testing is required to verify that molybdenum is measurable at the specific grades envisioned for CuMo.

As with bulk sorting technology, additional testing is required to better estimate the final results expected from particle sorting.

1.10.4 Processing

There is a risk that achieved recoveries could be lower than estimated, that throughputs will not be achieved and that costs may be higher than modelled. The process recovery, throughput and cost estimates will be refined as part of the pre-feasibility study.

1.10.5 Project Infrastructure

The planned mine will be a green-fields site and requires construction of mine and process-related infrastructure including the TSF. Access roads in and around the project site will be required. There is a risk that the designs, costs and implementation timelines for the provision of this infrastructure may not be as anticipated, increasing costs and schedule.

1.10.6 Permitting

At this time, no issues were identified that would materially impact the ability to eventually extract mineral resources at the project. Previous environmental analyses have identified the presence of a rare plant Sacajawea's bitterroot (*Lewisia sacajawa),* and potential habitat for Endangered Species Act wildlife, and USFS sensitive species. These potential issues will need to be analyzed and disclosed in NEPA documents and potentially mitigated.

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The mine will be located in an area used for weekend summer dispersed recreation and fall big-game hunting and is well-known in the Boise area. Organized environmental groups such as the Idaho Conservation League and Sierra Club are keeping their constituents informed citing issues of potential pollution of the Boise river which supplies drinking water to the city of Boise. As such, well-funded, organized opposition to mining activities should be anticipated.

Under the 1872 Mining Law as amended, ICMC has the legal right to develop the mineral resources on their mining claims. The USFS has a requirement to manage ICMC's activities in accordance with its mining regulations at 36 CFR 228A and must ensure compliance with the requirements of the National Environmental Policy Act. As defined in law and regulations, the USFS is limited in that it may not deny ICMC's mining plan of operations provided that the activities proposed are reasonably incident to mining, not needlessly destructive, and comply with applicable federal, state, and local laws and regulations. The USFS does not have the authority to impose unreasonable requirements that would have the effect of denying the statutory right to explore and develop the mineral resource, provided the mining plan of operations otherwise meets the intent of applicable laws and regulations (USFS 2018).

There is a risk that the mining plan of operations would identify and characterize issues that may lengthen the timeline and increase the costs of the permitting the project. Note that the STUDY described in this report does not quantify the timeline and costs for the pre-construction and permitting activities.

Table 20-1 in Section 20.2 summarizes the federal, state, and local authorizations and permits that will be required for mining. No applications for mining authorizations and permits have been filed with federal, state, and local agencies. Reclamation bonds will have to be posted with the state of Idaho and the USFS.

1.10.7 Economic Risks

**Project Strategy Risk**

Overall, the author considers that the likelihood of a major revision to project strategy emerging from the pre-feasibility study to be moderate. Mineral sorting as contemplated in this study is not a mature technology, and there is a risk that the assumptions used may not prove accurate. Elimination of the mineral sorting pre-process from the strategy has the potential to materially reduce the economic proposition of the project.

**Commodity Price Risk**

There is a risk that commodity prices may not be consistent with assumptions made in this study. In particular, molybdenum, which contributes to the majority of the project value is historically subject to significant price volatility.

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**Capital Cost Risk**

There is a risk that the capital required to build and operate the project may be higher than that forecast in this study. The author recommends that the precision of the estimates be refined at the pre-feasibility study and feasibility study before commitment to project construction is made.

**Operating Cost Risk**

There is a risk that the operating costs incurred to operate the project may be higher than that forecast in this study. The author notes that variability in the operating cost drivers (productivity, input costs and labor costs) over time is expected. The analysis assumes constant conditions but is best thought of as reflecting an expectation of average costs. The author recommends that the precision of the estimates be refined in the pre-feasibility and feasibility studies before commitment to project construction is made.

**Schedule Risk**

There is a risk that the schedule to build the project may vary from that assumed in the study. This is an asymmetrical risk, with significantly more downside scope than upside. This risk is exacerbated by the seasonality of the location, with somewhat difficult construction conditions occurring in some winter months. Small delays have the potential to be more significant than, might otherwise be the case, if they push critical path activities into winter months, thereby incurring a much longer delay.

**Process Recovery Risk**

There is a risk that achieved recoveries could be lower than estimated, reducing the revenue and economic returns of the project. The process recovery estimates will be refined as part of the feasibility study.

**Permitting and Pre-construction Schedule Risk**

This was not explicitly considered for the purposes of this study in the economic analysis as the analysis is conducted only from the commencement of construction. Nevertheless, the risk of longer-than-anticipated permitting timeline will reduce the project value is considered from "today" forward.

**1.11** **Project Opportunities** 

**1.11.1** **Mineral Resource** 

The exploration drilling and thus mineral resource model for CuMo is constrained on the western extents of the deposit. There is potentially an opportunity with increased exploration to expand the resource to the west, thus offering either more process feed within the current envisioned open pit or increasing the size of the open pit to the west.

**1.11.2** **Mining** 

With increased knowledge of the rock mass and structural geology, through additional geotechnical field programs and investigation, there is potential to steepen the wall angles for CuMo, potentially reducing and/or deferring some mining costs.

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Further consideration of high angle conveying solutions in combination with semi-mobile crushing and conveying (IPCC) concepts could highlight opportunities for cost savings at CuMo. Applying IPCC to sort feed, which needs to be crushed either way and is up to 50% of the mined material, poses the greatest opportunity.

**1.11.3** **Mineral Sorting** 

The bulk sorting analysis was conducted on drill core that was sampled on a standard 10 ft interval. Thus, heterogeneity could only be assessed down to this scale. With multiple stage sorting and splitting, smaller size packets of material could be measured. As heterogeneity increases with reduced scale, there is potential that better segregation of waste, mill feed and middlings is possible. The opportunity would be for increased waste rejection and ultimately reduced middlings fractions to improve the economics of the project.

Ultimately, the potential for exploitation of the heterogeneity of the deposit may not be firmly quantified by way of studies conducted on exploration-level data. Much higher-resolution sampling and sorting may be possible at an operational scale. This has the potential to enhance project economics, but the quantum of that improvement is difficult to quantify.

The field of mineral-sorting is the subject of significant research and development. There exists an opportunity for this project to exploit improvements in this technology.

**1.11.4** **Processing** 

Additional metallurgical work to determine optimum grind size (the current assessment is based on the finest grind tested to date), analyze recoveries of the various metals in the proposed unit operations, and analyze the effects of the higher grade coming from the mineral sorters on metal recoveries. This has the potential to improve project economics.

Optimization of reagents to reduce costs and improve metallurgical recoveries has the potential to improve recoveries.

There may be opportunity to economically recover tungsten from the mineralized material.

**1.11.5** **Project Infrastructure** 

Further studies may allow for optimization of infrastructure design, costing and schedule. Whilst optimization is worth pursuing, the author views modification to the infrastructure concepts to be unlikely to materially affect the economic proposition at a strategic level for the project.

**1.11.6** **Economic Opportunities** 

**Real Option Value**

In the case of a large, long-life open-pit mine such as is contemplated for the CuMo project, there exists significant optionality that can be leveraged to improve project cashflows and values. The simple sensitivity analysis conducted in Section 22.12 assumes a constant operating strategy, even as assumptions are varied. In practice, management has the option to alter strategy in response to those variations. Downsides can be mitigated, and upsides can be leveraged for greater returns.

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It is also expected that the mine would run using a dynamic cut-off policy where sorting strategies and cut-offs, mill-feed cut-offs, stockpiling strategies and mining rates will all be varied in real time to maximize returns as prices and costs vary. The benefits of this strategy are not reflected in the central estimate approach to valuation summarized in this report.

**Project Strategy Opportunity**

While the probability of a major revision to project strategy can be considered moderate, careful consideration and revision of the strategic decisions should be a feature of studies going forward. In particular, effort should be made to enhance the optionality of the project, particularly where this is a low-cost investment.

**Commodity Price Opportunity**

There is a risk that commodity prices may not be consistent with assumptions made in this study. Higher prices, both realized and forecast, would lead to re-optimization of the mine and processing plans with a potential to create additional value beyond that shown by the sensitivity analysis summarized in Section 22.11.

**Capital Cost Opportunity**

Opportunities to reduce or defer capital expenditure may be realized in future studies. Care should be taken when considering the relationship between lower capital opportunities and technical risk to the project.

**Operating Cost Opportunity**

Operating costs may be lower than forecast for the purposes of this study. Lower costs should feed into both strategic and short-term mine planning, to allow optimization of stockpiling, sorting and mill feed strategies.

**Schedule Opportunity**

This risk is highly asymmetric. The author considers that the opportunity to execute a significantly shorter construction program is low. The author cautions that optimized schedules with multiple critical or near-critical path activities will contain additional embedded risks.

**Process Recovery Opportunity**

Further metallurgical test-work will allow for optimization of the process flow sheet and plant design in the pre-feasibility and feasibility studies. Better than planned recoveries are possible.

**Pit Slope Angle Opportunity**

This is not considered to be a significant opportunity from an economic perspective. Strip ratios are relatively low, and incremental change in waste-movement volumes do not impact the overall project economics significantly.

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**1.12** **Conclusions and Recommendations** 

**1.12.1** **Mineral Resources** 

Exploration work consisting mainly of drilling is required to reach feasibility. It is estimated that a total of 33 additional holes for 71,000 ft plus an additional five geotechnical holes for 12,000 ft on the deposit plus additional 74,800 ft allocated to condemnation drilling of waste dump, mill site and tailings pond areas, making a total of 157, 8000 ft of drilling budgeted. This drilling is broken into the following categories:

● In-fill drilling,

● Delineation drilling,

● Orientated geotechnical drilling – requires orientated core recovery system,

● Drilling for metallurgical sample – large diameter hole (PQ size) recommended, and

● Condemnation drilling waste dump, mill and tailings site.

The shortest time to complete this work will be two seasons using four drill rigs each season.

**1.12.2** **Pit Geotechnical** 

The author provides these recommendations for the next steps of geotechnical assessment:

● Geotechnical database for quality assurance and quality check assessment (to address the inconsistencies and potentially poor data observed in the existing data set)

Select a sub-set (~10%) of resource drill holes that give good spatial coverage of the proposed pit walls, and from multiple drilling campaigns

Undertake quantitative basic geotechnical logging using the full core photographs of these drill holes (total core recovery (TCR), solid core recovery (SCR), rock quality designation (RQD) and fracture frequency - FF/m)

– FF/m vs RQD plots for both data-sets

– Comparison of the values in the database with the photo-logged values

– Assessment of differences in order to determine whether variance is systematic or random, and consequently decide on the respective approach to address (e.g. apply correction factor, re-logging more of the drill holes)

– Qualitative assessment of the rock susceptibility to deterioration by comparing core in the photos (fresh), to the current condition of the stored core (aged)

● Major structures assessment

– Log the photos of the core for major structures

– Develop conceptual integrated litho-structural 3-D model

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● Geotechnical-specific diamond-cored drill holes targeted to provide coverage of the proposed interim and ultimate pit walls, and compatible with the pit depth

– Geotechnical logging to RMRB89 system (historical logging to RMRL90 which is typically for underground mine applications)

– Field (empirical and point load) and laboratory (uniaxial and triaxial compressive strength and direct shear) testing of fresh core to determine intact rock strength

– Calculate RMR values and conduct comparison with lithology, alteration and mineralogy zones of the 3-D geology model to establish broad geotechnical domains

– Establish pit sectors and domain-representative sections to conduct pit slope stability analyses and select pit design angles

**1.12.3** **Mining** 

The author recommends further study of the application of high angle conveying of sort feed at CuMo.

The author further recommends the continued consideration of autonomous haulage for CuMo, with commensurate refinement of performance parameters and costs.

**1.12.4** **Mineral Sorting** 

The author recommends that CuMoCo engage with bulk sorting technology providers to advance testing of penetrative technologies (e.g. PGNAA) for the measurement of molybdenum in lower grade applications.

Additional scanning of the existing core to examine heterogeneity at a finer level than the 10 ft intervals used in the current study is recommended. Further testing of existing particle sorting technologies/machines to look for improvements in throughput is recommended.

**1.12.5** **Processing** 

Metallurgical aspects to be studied were highlighted in the preliminary metallurgical analysis, some of which require larger samples to finalize the detailed flow sheet and determine how many cleaning stages will be required.

A critical part of the analysis is a grinding-versus-recoverability study, since in the previous study, only two grinding sizes were studied: coarse and fine. The fine grind promised to be more economically favorable despite the increase in costs. Further study with multiple grinding size options is required to determine an optimum grinding system. An intermediate grind for example in the range between 71 to 106 microns P<sub>80</sub>, would allow single stage SAG milling to be evaluated for reduced comminution energy cost, lower operating and maintenance labor in comminution and dewatering, and easier discard of a coarser tailing product when compared to the present grind P<sub>80</sub> of 63 microns. The single stage SAG milling concept also allows for low cost future expansion of the initial lines provided by simply adding a ball mill to each SAG mill line to create about double the tonnage capability, without adding feed bins or conveyors. SAG mills with diameter/length aspect ratios over two are needed to make this work.

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Work will consist of collecting and analyzing sufficient large bulk samples to determine the optimum flow sheet for the deposit. This work is expected to be further supported by a variability study to analyze variations within the deposit. Typically, a total of 100 to 150 twenty-kilogram samples will be used for the variability study.

**1.12.6** **Tailings Management** 

Engineering studies, including TSF design and potential water management and treatment design, including:

● Updating the TSF and Clear Creek Waste Facility designs based on field investigation results

● Developing tailings deposition plan and waste placement sequence to match pit development and mill output

● Detailed analysis of the water and load balance to predict the accumulation of mill reagents in the process water circuit from the tailings

**1.12.7** **Permitting** 

At this time, no issues were identified that would materially impact the ability to eventually extract mineral resources at the project. A mining plan of operations and reclamation cost estimate must be prepared to identify locations of the mine, waste rock dumps, roads (haul and access), power and water line corridors from the source to the point of use, mill, tailings storage facility, and other support facilities. Operating plans must be developed in conjunction with the mining plan of operations. ICMC should develop robust reclamation and closure plans for the facilities. ICMC should also begin acquiring any necessary water rights. Stakeholder outreach should continue.

Once the facility locations have been determined, ICMC should coordinate with state and federal agencies to identify the baseline studies that will need to be completed to support the development of an environmental impact statement and initiate those studies.

Previous environmental analyses have identified the presence of a rare plant Sacajawea's bitterroot (*Lewisia sacajawa),* and potential habitat for Endangered Species Act wildlife, and USFS sensitive species. These potential issues will need to be analyzed and disclosed in NEPA documents and potentially mitigated.

Organized environmental groups such as the Idaho Conservation League and Sierra Club are keeping their constituents informed so as to coordinate opposition to the project. As such, well-funded, organized opposition to mining activities should be anticipated.

**1.12.8** **Plan and Budget for Additional Work** 

Table 1-8 sets out a summary of work expected to be completed prior to a commitment to construction. The estimated time frame for this work program is three years.

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**Table 1-9: Budget for additional work**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Additional Information** | &nbsp;&nbsp;**Budget**<br> **(000s $)** |
| &nbsp;&nbsp;Diamond Drilling |  |  |
| &nbsp;&nbsp;Delineation, infill, metallurgy | &nbsp;&nbsp;48,097 m (157,800 ft) @ $100/ft | &nbsp;&nbsp;15780 |
| &nbsp;&nbsp;Road Construction | &nbsp;&nbsp;2 km @ $50,000/km | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Sample Preparation and Analysis | &nbsp;&nbsp;8,800 @ $60 each | &nbsp;&nbsp;528 |
| &nbsp;&nbsp;Metallurgical Testing | &nbsp;&nbsp;Sample Collection, etc. | &nbsp;&nbsp;125 |
|  | &nbsp;&nbsp;Batch Round of Testing | &nbsp;&nbsp;1000 |
|  | &nbsp;&nbsp;Variability Test-work | &nbsp;&nbsp;1200 |
| &nbsp;&nbsp;Land Acquisition and Staking Costs |  | &nbsp;&nbsp;8000 |
| &nbsp;&nbsp;Environmental Studies | &nbsp;&nbsp;Environmental Assessment | &nbsp;&nbsp;713 |
|  | &nbsp;&nbsp;Baseline Studies Startup | &nbsp;&nbsp;12500 |
|  | &nbsp;&nbsp;Environmental Plan of Operations | &nbsp;&nbsp;800 |
|  | &nbsp;&nbsp;Environmental Impact Statement | &nbsp;&nbsp;23500 |
|  | &nbsp;&nbsp;Permitting | &nbsp;&nbsp;3000 |
| &nbsp;&nbsp;Engineering Studies Scoping | &nbsp;&nbsp;Mill Site, Tailings Site Analysis | &nbsp;&nbsp;550 |
|  | &nbsp;&nbsp;Intergoverment Task Force Creation | &nbsp;&nbsp;500 |
|  | &nbsp;&nbsp;Mining Plan of Operations | &nbsp;&nbsp;1200 |
|  | &nbsp;&nbsp;Pre-feasibility Study | &nbsp;&nbsp;5500 |
| &nbsp;&nbsp;Mobilization-Demobilization |  | &nbsp;&nbsp;427 |
| &nbsp;&nbsp;Road Maintenance |  | &nbsp;&nbsp;325 |
| &nbsp;&nbsp;Supervision and Project Management | &nbsp;&nbsp;Supervision | &nbsp;&nbsp;225 |
|  | &nbsp;&nbsp;Corporate Manager | &nbsp;&nbsp;360 |
|  | &nbsp;&nbsp;Project Manager | &nbsp;&nbsp;240 |
|  | &nbsp;&nbsp;Assistant Geologist(2) | &nbsp;&nbsp;364 |
|  | &nbsp;&nbsp;Technicians (12) | &nbsp;&nbsp;1174 |
| &nbsp;&nbsp;Vehicles | &nbsp;&nbsp;5 Vehicles | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;Accommodation and Food | &nbsp;&nbsp;30 Personnel | &nbsp;&nbsp;760 |
| &nbsp;&nbsp;Travel |  | &nbsp;&nbsp;42 |
| &nbsp;&nbsp;Project Office and Warehouse |  | &nbsp;&nbsp;1225 |
| &nbsp;&nbsp;Land Filing Fees | &nbsp;&nbsp;Current BLM: $155/claim/year | &nbsp;&nbsp;87 |
| &nbsp;&nbsp;Land Filing Fees | &nbsp;&nbsp;Projected Additional Filing Fees | &nbsp;&nbsp;256 |
| &nbsp;&nbsp;Consultants | &nbsp;&nbsp;(Mining, Metallurgical and Marketing) | &nbsp;&nbsp;575 |
| &nbsp;&nbsp;Resource Modeling |  | &nbsp;&nbsp;1650 |
| &nbsp;&nbsp;Public Relations and Project | &nbsp;&nbsp;Public Relations and Legal, etc. | &nbsp;&nbsp;2550 |
| &nbsp;&nbsp;Presentation | &nbsp;&nbsp;Liaison County and State Officials | &nbsp;&nbsp;1250 |
| &nbsp;&nbsp;**Subtotal** |  | &nbsp;&nbsp;**86655** |
| &nbsp;&nbsp;Contingency |  | &nbsp;&nbsp;13345 |
| &nbsp;&nbsp;**Total** |  | &nbsp;&nbsp;**100000** |

---

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| | |
|:---|:---|
| **2** | **Introduction and Terms of Reference** |

---

**2.1** **Issuer** 

The CuMo project is an early-stage molybdenum-copper exploration project, located approximately 37 miles northeast of Boise, Idaho, USA. CuMoCo holds its interest in the CuMo project through its direct ownership of patented and unpatented mining claims.

**2.2** **Terms of Reference** 

This technical report summary (TRS or Report) was commissioned by the registrant, International CuMo Mining Corp. (CuMoCo), for its Copper-Molybdenum-Silver Project (CuMo or Project) In Boise County, Idaho for the purpose of reporting an initial assessment. ICMC is an Idaho company exploring options for the development and restoration of the project area.

This Report is the inaugural TRS developed for the CuMo Project in accordance with United States SEC S-K 1300 regulations. The TRS summarizes a 2020 Preliminary Economic Analysis (PEA) Technical Report (SRK, 2020) that was completed under Canadian Securities Administrators National Instrument (NI) 43-101 guidelines and published June , 2020 with the following notable differences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o An
additional set of summary cash flows were produced that do not include inferred resources

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The
TRS is classified as a Initial Assessment study whereas the 2020 PEA was classified as a Preliminary Economic Analysis .

The Mineral Resource estimates for the Project were examined by the author and determined to be in conformity with Committee for Mineral Reserves International Reporting Standards (CRIRSCO) "International Reporting Template for the public reporting of Exploration Targets, Exploration Results, Mineral Resources and Mineral Reserves" as adopted by the International Council on Mining & Metals November 2019. The mineral resources are reported in in accordance with §§229.1300 through 229.1305 (subpart 229.1300 of Regulation S-K).

**2.3** **Responsibility** 

The Author, Shaun Dykes is responsible for the preparation of this Technical summary, which is based on the work produced by the following Qualified Persons that produced the original PEA report which is being summarized in this reprot Table 2-1.

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**Table 2-1: QP responsibilities**

---

| | | |
|:---|:---|:---|
| **Name** | **Company** | **QP Responsibility** |
| **Shaun Dykes** | **Geologic <br> Systems** | **Sections 1.1** |
| &nbsp;&nbsp;Bob McCarthy | &nbsp;&nbsp;SRK | &nbsp;&nbsp;Sections 1.1, 1.2, 1.6, 1.8, 1.10.2, 1.10.3, 1.11.2, <br> 1.11.3, 1.12.3, 1.12.4, 1.12.8, 2 to 5 (except 4.2, <br> 4.3, 4.4, 4.5), 13.2.2, 15, 16 (except 16.2.1), 17.2, <br> 18.1, 21.1.1, 21.2.1, 21.2.2, 21.2.4, 23, 24, 25.1.2, <br> 25.1.3, 25.2.2, 25.2.3, 25.3.2, 25.3.3, 26.3, 26.4, <br> 26.8, 27 & 28 |
| &nbsp;&nbsp;Gilles Arseneau | &nbsp;&nbsp;SRK | &nbsp;&nbsp;Sections 1.3, 1.4, 6 to 10 |
| &nbsp;&nbsp;Gary Giroux | &nbsp;&nbsp;Giroux Consultants | &nbsp;&nbsp;Sections 1.5, 1.10.1, 1.11.1, 1.12.1, 11, 12, 14, <br> 25.1.1, 25.2.1, 25.3.1, 26.1 & Appendices 2-4 |
| &nbsp;&nbsp;John Starkey | &nbsp;&nbsp;Sacré-Davey | &nbsp;&nbsp;Sections 1.10.4, 1.11.4, 1.12.5, 13 (except Section <br> 13.2.2), 17 (except 17.2), 21.1.2 (Processing), <br> 21.1.4, 21.2.3, 25.1.4, 25.2.4, 25.3.4 & 26.5 |
| &nbsp;&nbsp;Andy Thomas | &nbsp;&nbsp;SRK | &nbsp;&nbsp;Sections 1.12.2, 16.2.1 & 26.2 |
| &nbsp;&nbsp;Neil Winkelmann | &nbsp;&nbsp;SRK | &nbsp;&nbsp; Sections 1.9, 1.10.5, 1.10.7, 1.11.5, 1.11.6, 4.2, 4.3, <br> 18.2 to 18.5, 19, 21.1.2 (Infrastructure), 22, 25.1.5,<br> 25.2.5, 25.2.7, 25.3.5, 25.3.6 & Appendix 1 |
| &nbsp;&nbsp;Calvin Boese | &nbsp;&nbsp;SRK | &nbsp;&nbsp; Section 1.12.6, 18.6,& 21.1.3 & 26.6 |
| &nbsp;&nbsp;Valerie Sawyer | &nbsp;&nbsp;SRK | Sections 1.7, 1.10.6, 1.12.7, 4.4, 4.5, 20, 25.2.6 & 26.7 |

---

**2.3** **Sources of Information** 

This report is based on information collected by the author during his work on the project from 2005 to present, numerous site visits and on additional information provided by CuMoCo throughout the course of the study.

The authors have no reason to doubt the reliability of the information provided by CuMoCo. The authors have not performed verification studies with respect to information provided by CuMoCo other than as described explicitly in this report.

Note: Throughout this report, United States Dollars unless otherwise specifically noted.

**2.4** **Site Visit** 

Shaun Dykes has been a regular on the project since inception in 2005 and has visited the site on a regular basis. QP's form the original PEA report who have visited the site include: Mr. McCarthy and Mr. Thomas visited the property from 30 to 31 October 2018, while Mr. Boese visited on only 30 October. All were accompanied by Joey Puccinelli of ICMC. The purpose of the site visit was to observe the mining area as well as project infrastructure, including access, rail, and water supply. Drill core was also inspected to provide context and observations for mining and geotechnical purposes.

Mr. Giroux last visited the site in June 2015, when all appropriate requirements of a current inspection were met for data verification and resource estimation. No drilling related work has been performed on site since that time.

Mr. Starkey, Mr. Winkelmann, and Ms. Sawyer have not visited the site.

The QPs were given full access to relevant data.

**2.5** **Previous Reports** 

This Report is the initial TRS completed for ICMC to maintain compliance with SEC regulations. The resources reported herein are current as of the end of November 2022. The information in the TRS is based upon the "Preliminary Economic Assessment & NI 43 101 Technical Report for the CuMo Project, USA" effective June 4, 2020, and Independent report prepared in compliance with the Canadian National Instrument (NI) 43-101 – Standards for Disclosure of Mineral Projects within Canada. Multi Metals Development Ltd, formerly American Cumo Mining Copr., is listed on the Toronto Venture Stock Exchange (TSXV:MLY)..

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| | |
|:---|:---|
| **3** | **Property Description and Location** |

---

**3.1** **General** 

The CuMo property is located approximately 37 air miles northeast of the city of Boise, Idaho, USA (Figure 4-1). It is situated in the northern portion of the Grimes Pass area on the USGS 1:62,500 Placerville Quadrangle (15' Series) within T7N and T8N, R5E and R6E, in Boise County, Idaho (Figure 4-2). The Latitude at the approximate center of CuMo property is 44 degrees, 2'N and the Longitude is 115 degrees 47' 30" W or UTM coordinates of 597,500E, 4,876,000N (NAD 27 CONUS).

**3.2** **Mineral Tenure** 

The property consists of 126 unpatented and un-surveyed contiguous mining lode claims covering an area of approximately 3,260 acres and 41 fully patented claims covering an area of 739 acres. Most of the claims consist of full-sized, 600 ft by 1500 ft claims (20.66 acres each). However, the total includes 27 fractional claims where the new claims were staked over existing claims. The claims are shown in Figure 4-2 and the claim information is listed in Appendix 1. Unpatented claims have the mineral rights with the surface owned by the federal government. Patented claims are private property and cover both the surface and mineral rights.

In Idaho, staked claims expire annually on September 1. An annual fee of $155/claim must be paid to the BLM prior to Aug 31, 2019 or all claims will expire on Sept 1, 2019. At $155/claim, CuMoCo must make annual payments to the BLM of $28,675 to keep all claims in good standing.

For patented claims, since they are owned outright, taxes are assessed by the county on a yearly basis. Currently the yearly tax bill for the patented claims is approximately $450. It varies as it is dependent upon assessed value and the county tax rate which changes from year to year.

**3.3** **Ownership Agreements** 

On October 13, 2004, CuMoCo completed an "Option to Purchase Agreement" with CuMo Molybdenum Mining Inc. to purchase eight unpatented mineral claims located in Boise County, Idaho, USA known as "CuMo Molybdenum Property". As part of the original CuMo and CuMoCo agreement, all claims acquired within five miles of the CuMo 1-8 claims became part of the option deal. Therefore, all the new claims referred to in this report as part of the CuMo Molybdenum Property are automatically subject to the terms outlined in that agreement.

Terms of the agreement are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Advance royalty payments:

● $10,000 upon signing (completed)

● $10,000 after 60 days (completed)

● $5,000 after 6 months (completed)

● $20,000 1st year anniversary (completed)

● $20,000 2nd year anniversary (completed)

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● $15,000 3rd year anniversary (completed)

● $15,000 every 6 months thereafter (up-to-date)

These payments are to be credited against a 1.5% net smelter return (NSR) which reduces to 0.5% NSR after cumulative payments of $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Work requirements:

● $25,000 during the first year (completed)

● At least $50,000 each year thereafter (up-to-date)

● On January 21, 2005, CuMoCo entered into an option agreement with Kobex Resources Ltd. (Kobex), whereby Kobex could acquire a 100% interest in the CuMo Molybdenum Property and another property in Australia. Under the terms of the Agreement, Kobex would earn a 100% undivided interest in these properties in consideration of cash payment of $5,000,000, 12,500,000 treasury shares and $10,000,000 of work expenditure commitment.

On October 6, 2006, Kobex surrendered all rights and interests in the CuMo property to CuMoCo.

CuMoCo has completed all payments since 2006 and the property is in good standing.

February 14, 2017 CuMoCo announced it has purchased 20 claims in the area around the CuMo project from a group of local prospectors. The 20 unpatented mining claims cover an area of approximately 400 acres. The purchase price of 100% ownership the claims was one $250,000 silver unit plus one million shares of CuMoCo.

Note: A silver unit is a seven-year exchange approved debenture that can be converted into the right to buy silver for $5 per ounce from any future production at CuMo. The debenture pays 8.75% interest per annum.

In April 25, 2017, CuMoCo announced that its wholly-owned subsidiary, ICMC, has completed an option to purchase agreement for 36 patented mining claims, covering an area of approximately 640 acres adjacent to the CuMo project. Patented claims contain the surface rights as well as the mineral rights. The consideration payable for the claims is as follows:

● Upon closing date of the agreement, the sum of $320,000 in cash, two (2) Silver Units in the aggregate principal amount of $500,000 and such number of CuMoCo shares having a value of $322,500 (with the CuMoCo shares being issued at a price equal to the 10-day weighted average trading price of the CuMoCo shares on the TSXV as of the last business day prior to the Closing Date)

● Upon the first anniversary of the Closing Date, $320,000 in cash, one (1) Silver Unit in the aggregate principal amount of $250,000 and such number of CuMoCo shares having a value of $322,500 (with the CuMoCo shares being issued at a price equal to the 10-day weighted average trading price of the CuMoCo shares on the TSXV as of the last business day prior to the first anniversary of the Closing Date)

● Upon the second anniversary of the Closing Date, $320,000 in cash, one (1) Silver Unit in the aggregate principal amount of $250,000 and such number of CuMoCo shares having a value of $322,500 (with the CuMoCo shares being issued at a price equal to the 10-day weighted average trading price of the CuMoCo shares on the TSXV as of the last business day prior to the second anniversary of the Closing Date)

● Upon the third anniversary of the Closing Date, $320,000 in cash, one (1) Silver Unit in the aggregate principal amount of $250,000 and such number of CuMoCo shares having a value of $322,500 (with the CuMoCo shares being issued at a price equal to the 10-day weighted average trading price of the CuMoCo shares on the TSXV as of the last business day prior to the third anniversary of the Closing Date)

Payment of the Option Payments (except for the issuance of the American CuMo shares) may be accelerated at CuMo's option.

In July 17, 2017, CuMoCo announced that it had signed a mining claims purchase agreement effective as of July 6, 2017 (the "Purchase Agreement") between CuMoCo and its wholly-owned subsidiary, ICMC, and CuMo Molybdenum Mining Inc., Western Geoscience Inc. and Thomas Evans (collectively, the "Parties"). CuMoCo is to acquire from the Parties a 100% interest, including any Net Smelter Royalties owned by the parties, in the CuMo project which is currently under option, pursuant to an option agreement between CuMoCo and CuMo Molybdenum Mining Inc. dated October 13, 2004 and amended on January 14, 2005 (the "Option Agreement").

As of the effective date of this report all agreements remain in place as described above.

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![](ex96-1_003.jpg)

Source: Giroux et al, 2015

**Figure 3-1: CuMo property location map**

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Source: Giroux et al, 2015 modified 2019

---

| | |
|:---|:---|
| *Note:* | The mineralized outline of the deposit in this figure is the outline of the geologically-defined potentially mineralized zone<sup>1</sup>. For clarity, it is **not** the outline of the current resource, **nor** of the resource constraining pit (resource outline) which are inside the mineralized outline of the deposit. It is also **not** the outline of the pit design (2019 pit outline) used in the preliminary economic analysis. |

---

**Figure 3-2: Claim location map for the CuMo property**

The change since the 2015 report in the outline of the deposit is a result of reconnaissance work performed in 2017 by CuMo field geologists on the recently acquired claims.

<sup>1</sup> Defined according to geology, lithology and/or mineralogy without explicit consideration of grades or economic potential

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**3.4** **Environmental** 

**3.4.1** **Environmental Regulations** 

The CuMo project will be subject to federal, state of Idaho, and local regulations. Key regulations to which the project will be subject governing exploration and mining design, operations, and reclamation include:

● General Mining Act of 1872, 30 U.S.C. §§ 22-42

● Mining and Minerals Policy Act of 1979

● 36 Code of Federal Regulations Part 228 administered by the USFS

● Idaho Administrative Procedures Act (IDAPA) 20.03.02 Rules Governing Exploration, Surface Mining, and Closure of Cyanidation Facilities administered by the Idaho Department of Environmental Quality

● IDPA 16.01.02, Water Quality Standards and Wastewater Treatment Requirements

● IDPA 20.03.02, Rules Governing Exploration and Surface Mining Operations in Idaho

● IDAPA 58.01.01 Rules for the Control of Air Pollution, administered by the Idaho Department of Environmental Quality

● IDAPA 58.01.02 Water Quality Standards, Anti-Degradation, administered by the Idaho Department of Environmental Quality

● IDAPA 58.01.11 Ground Water Quality Rule, administered by the Idaho Department of Environmental Quality

**3.4.2** **Environmental Liabilities** 

There are currently no known environmental liabilities on the property. The company has a $300,000 reclamation bond on deposit once the permits are re-issued.

It is possible, that with the development of a detailed mining plan of operations and the more detailed investigation of aspects of the property that are associated with that plan, that as-yet unknown environmental liabilities and/or issues may be identified.

**3.4.3** **Other Significant Factors and Risks** 

At this time, no specific issues have yet been identified that would materially impact the ability to eventually extract mineral resources at the project. That is, any other significant factors and risks that may affect access, title, or the right or ability to perform work on the property are not yet known.

However, ICMC should be prepared to address potential issues associated with but not limited to the following aspects:

● Water including supply, water rights, and delivery system and potential impacts

● Water management (stormwater, contact/non-contact water, water quality)

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● Geochemistry of ore, waste rock, tailings solids and solution, and post-mining pit lake

● Threatened, endangered, and special status plant and animal species

● Jurisdictional waters

● Transportation and access

● Reclamation and closure

**3.5** **Permits** 

Exploration on federal lands requires an authorization to conduct exploration except for sampling of rocks and soils by hand and other activities that create no land disturbance. There are three levels of permits reflecting increasing disturbance:

● The lowest level of authorization is a Categorical Exclusion. This is the least intense disturbance and requires some public notification. The authors understand that track mounted auger/rotary drilling with no new road clearing would fit in this category according to USFS personnel.

● Environmental Assessment requires an in-depth study with 30 days for public comment, plus additional time for appeal. The authors understand that drilling with a reverse circulation (RC) rig using water, new road construction, etc., would require this level of permit. USFS personnel suggest that one year may be required to receive an authorization. Spot studies on archaeology and sensitive plant species would be required prior to disturbance.

● Environmental Impact Statement (EIS) is the highest permit level and would be required for mine development.

Approval for a diamond drilling program has been obtained from the USFS, to be carried out from the existing network of drill access roads and was permitted under a Categorical Exclusion, issued in 2008. An application for a Water Use Permit for diamond drilling purposes was originally filed with the Idaho Department of Water Resources in 2008, that permit is renewed annually.

In January 2007, an exploration plan of operations was submitted for an expanded exploration program involving construction of new roads for drill access, and the USFS gave notice that an Environmental Assessment is required for that program. Note: This exploration plan of operations was filed while the Categorical Exclusion was active and that no mining plan of operations has been prepared.

On June 14, 2010, the Environmental Assessment was completed and submitted for public review and hearing during a mandated 90-day period. On February 14, 2011, A Finding of No Significant Impact was delivered by the USFS. During the mandated 45-day appeal period, one environmental group (Idaho Conservation League) submitted an appeal of the USFS decision.

On May 17, 2011, the USFS denied the appeal allowing CuMoCo to begin work under the new exploration permit following a mandatory 15-day stay period which ended on June 7, 2011. The permit covers all exploration work required to produce the information necessary to produce a feasibility study and lasts for up to five years.

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The Idaho Conservation League et al, filed a challenge in the "United States District Court for the District of Idaho" on December 15, 2011: "Plaintiffs Idaho Conservation League, Idaho Rivers United, and Golden Eagle Audubon Society seek summary judgment reversing and remanding the USFS's February 2011 approval of the CuMo Mine Exploration Project, in the upper Grimes Creek watershed of the Boise National Forest." The USFS was named as defendant while CuMoCo was named as Intervener Defendant. CuMoCo has worked through the litigation process and filed a response brief and reply brief. The USFS has also filed response and reply briefs. The Idaho Conservation League also filed a reply brief.

On August 29, 2012, the judge in the case dismissed four of the five claims by the opponents but remanded the section on groundwater over for further study. As a result, on February 7, 2013 the USFS initiated a Supplemental Environmental Assessment in order to address the judge's concerns. This worked culminated on April 13, 2015 with the re-issuance of a draft Finding of No Significant Impact.

In January 2016, the Idaho Conservation League and others filed a challenge in the United States District Court for the District of Idaho of the new April 15 decision.

On July 13, 2016, the judge in the case accepted the work on the groundwater but remanded the decision to give USFS time to study the effects of the 2014 Grimes Creek fire on a sensitive plant species. As a result, on August 7, 2016, the USFS initiated a Supplemental Environmental Assessment in order to address the judge's concerns. Note: In 2018 this was renamed by the USFS to the Supplemental Redline Environmental Assessment. In 2016, another fire effected the property area and additional studies were required. The USFS is currently in process of preparing the updated report, which is expected to lead to a final decision in early 2020.

As of the effective date of this report all agreements remain in place as described in this Section 4.

At the current time there are no active permits as ICMC is waiting on the Supplemental Redline Environmental Assessment report and the final decision notice and finding of no significant impact.

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| | |
|:---|:---|
| **4** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** |

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International air travel is available from Boise, Idaho. The property is accessed by road from Boise by taking US State Highway 55 northerly for approximately 40 miles (65 km) to the town of Banks, Idaho, and then east on the Banks Lowman Road towards the town of Garden Valley for approximately 10 miles (16 km). One mile east of Garden Valley is a secondary road heading south across the Payette River. Following this secondary road, the western most edge of the CuMo claim block is approximately 10 miles (16 km) from Garden Valley.

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Alternatively, access can be gained by traveling northeast from Boise along Highway 21 past the towns of Idaho City and Centerville, along Grimes Creek, and then over the Grimes Pass.

The project is situated in the southern section of the Salmon River Mountains which lie immediately west of the Rocky Mountains and are characterized by north-northwest trending mountain ranges separated by alluvial filled valleys. Topographic elevations on the CuMo claims range from 5,100 ft (1700 m) to 7,200 ft (2,400 m) above sea level.

The climate is defined by summer temperatures to a maximum of 100° F (38°C) and cold, windy winters with lows to -10° F (-23°C). Precipitation is moderately light with an average rainfall of 30 inches (<1 meter) and an average snowfall of approximately 140 inches (3.6 m). Vegetation in the project area consists of cedar, lodgepole pine, mountain mahogany, and juniper.

The area is serviced by the Idaho Power Company which supplies electricity to residents of Garden Valley, Lowman and Pioneerville. The nearest rail line is the Idaho Northern & Pacific line formerly operated by Union Pacific that runs through the town of Banks, approximately 20 road miles (32 km) to the west of the property.

Equipment, supplies, and services for exploration and mining development projects are available at Boise. There is also a trained mining-industrial workforce available in Boise.

Exploration and mining at the property can be conducted year-round, due to the established road system and its proximity to other infrastructure. The property is large enough to accommodate the current CuMo deposit exploration or mining operations including facilities. Potential waste disposal and tailings storage areas, currently outside the property, will require permits from federal and state agencies as discussed in Section 20 of this report.

The project will be located on patented claims owned or optioned by ICMC and public land administered by the USFS. The extent of public land used for mining purposes will be identified in the mining plan of operations. In the USA, with the exception of the patented claims owned or optioned by ICMC, all surface rights in the area of the current design are administered by the USFS and are not available for purchase but for lease. The NEPA process will disclose the potential impacts from construction, mining, closure, and reclamation activities and identify mitigation to avoid or ameliorate impacts prior to authorization of the mining plan of operations. These surface rights are granted at the time of a record of decision to place the mine into commercial production and they form part of the permitting process.

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| | |
|:---|:---|
| **5** | **History** |

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**5.1** **Exploration** 

The Boise Basin was first explored following the discovery of placer gold deposits in 1862. Several lode gold deposits were discovered and developed immediately following the initial alluvial gold rush, with significant production occurring in the late 1800's and early 1900's. There are a number of lode prospects within approximately two miles of the CuMo property, some of which have recorded minor past production of base and precious metals. No production has occurred on CuMo itself.

The first interest in the CuMo property was shown during aerial reconnaissance by Amax Exploration in 1963. Follow-up geochemical rock and soil sampling indicated anomalous molybdenum and copper values. Forty claims were then staked, and three previously existing claims were optioned. A 2.5 mile (4 km) rough access road was constructed in 1964 to facilitate collection of rock samples and geological mapping. The property was subsequently relinquished due to the combination of contemporary economic conditions and initial sample grades.

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In 1968, Curwood Mining Company staked 12 claims and undertook detailed mapping and geochemical rock sampling. This work indicated roughly coincident anomalies in copper, molybdenum and silver. Several trenches were excavated, and one line of dipole-dipole array IP geophysical survey was conducted.

In 1969, Midwest Oil Corp. optioned the property and conducted exploration drilling through 1972 (four short rotary holes (less than 100 ft) initially, which were later depended using diamond drilling, followed by six cored holes). Midwest also performed an IP survey in 1971 and an airborne magnetic survey in 1973. The IP survey indicated a pyrite halo on the north side of the deposit, although an alternative interpretation concluded "the combined IP data may indicate a halo effect but more probably shows an east-west trend to the rock types and mineralization" (Baker, 1983). The CuMo deposit did not have a strong magnetic signature, being somewhat of a plateau with surrounding highs.

In 1973, Midwest formed a joint venture with Amax and then subsequently Midwest was merged with AMOCO resulting in an Amax-AMOCO joint venture (JV) with AMOCO as operator. During the period 1973 to 1981, the Amax-AMOCO JV completed 30,822 ft of drilling (summarized in Table 6-1), surface geological mapping, re-logging of the core, road construction, an aerial topographic survey, and age dating. In 1980, Amax Exploration Inc. transferred its interest to Climax Molybdenum Company (Climax), also a subsidiary of Amax Inc. In 1982, Climax collected more than 300 soil geochemical samples from three different grids.

**Table 5-1: Summary of historic drilling**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Holes** | &nbsp;&nbsp;**Footage** | &nbsp;&nbsp;**Meters** | &nbsp;&nbsp;**Comments** |
| &nbsp;&nbsp;1969 | &nbsp;&nbsp;Midwest | &nbsp;&nbsp;4 | &nbsp;&nbsp;378 | &nbsp;&nbsp;115 | &nbsp;&nbsp;Rotary holes shallow due to water included in core |
| &nbsp;&nbsp;1970 | &nbsp;&nbsp;Midwest | &nbsp;&nbsp;0 | &nbsp;&nbsp;653 | &nbsp;&nbsp;199 | &nbsp;&nbsp;2 rotary holes deepened with core to 400' depth |
| &nbsp;&nbsp;1971 | &nbsp;&nbsp;Midwest | &nbsp;&nbsp;1 | &nbsp;&nbsp;2251 | &nbsp;&nbsp;686 | &nbsp;&nbsp;One core hole deepened further to 1,884 ft |
| &nbsp;&nbsp;1972 | &nbsp;&nbsp;Midwest | &nbsp;&nbsp;3 | &nbsp;&nbsp;1892 | &nbsp;&nbsp;577 | &nbsp;&nbsp;One core hole deepened from 810-1,416 ft |
| &nbsp;&nbsp;1974 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;1 | &nbsp;&nbsp;805 | &nbsp;&nbsp;245 | &nbsp;&nbsp;Hole 9-9A |
| &nbsp;&nbsp;1975 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;1 | &nbsp;&nbsp;2382 | &nbsp;&nbsp;726 | &nbsp;&nbsp;Hole 10 |
| &nbsp;&nbsp;1976 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;2 | &nbsp;&nbsp;4343 | &nbsp;&nbsp;1324 | &nbsp;&nbsp;One vertical, other 1,340 ft @ -45 |
| &nbsp;&nbsp;1977 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;3 | &nbsp;&nbsp;5861 | &nbsp;&nbsp;1786 | &nbsp;&nbsp;3 vertical DDH 1,804-2,124 ft deep |
| &nbsp;&nbsp;1978 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;3 | &nbsp;&nbsp;6774 | &nbsp;&nbsp;2065 | &nbsp;&nbsp;3 vertical DDH 2,132-2,361 ft deep |
| &nbsp;&nbsp;1979 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;2 | &nbsp;&nbsp;4823 | &nbsp;&nbsp;1470 | &nbsp;&nbsp;Vertical DDH to 2,543 ft depth |
| &nbsp;&nbsp;1980 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;3 | &nbsp;&nbsp;2630 | &nbsp;&nbsp;802 | &nbsp;&nbsp;RC holes |
| &nbsp;&nbsp;1981 | &nbsp;&nbsp;Amax | &nbsp;&nbsp;3 | &nbsp;&nbsp;3204 | &nbsp;&nbsp;977 | &nbsp;&nbsp;Vertical DDH 1,000 to 1,193 ft depths |
| &nbsp;&nbsp;**Total** |  | &nbsp;&nbsp;**26** | &nbsp;&nbsp;**35996** | &nbsp;&nbsp;**10971** |  |

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A total 23 diamond holes and three RC holes were drilled on the property (Table 6-2). Most RC holes were pre-collars to diamond drill holes with only the diamond drill component of the holes being used for resource modelling and sampling. The historic holes were sampled mostly at a 20 ft sample interval.

A Skelton core representation of the historic drill holes (one four-inch piece of core for each 10-foot interval), and all the sample rejects were delivered directly from Climax's secure facility in Colorado and are stored in the project secure warehouse facility for use by the project.

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**Table 5-2: List of historic drill holes**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Hole** | &nbsp;&nbsp;**Northing** | &nbsp;&nbsp;**Easting** | &nbsp;&nbsp;**Elevation** | &nbsp;&nbsp;**Dip** | &nbsp;&nbsp;**Azimuth** | &nbsp;&nbsp;**Length (ft)** |
| &nbsp;&nbsp;71-01 | &nbsp;&nbsp;120990 | &nbsp;&nbsp;219904 | &nbsp;&nbsp;6026 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,884 completed |
| &nbsp;&nbsp;71-02 | &nbsp;&nbsp;120575 | &nbsp;&nbsp;219820 | &nbsp;&nbsp;6060 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;405 completed |
| &nbsp;&nbsp;71-03 | &nbsp;&nbsp;120250 | &nbsp;&nbsp;219905 | &nbsp;&nbsp;6165 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 completed |
| &nbsp;&nbsp;C71-04 | &nbsp;&nbsp;120785 | &nbsp;&nbsp;219940 | &nbsp;&nbsp;6045 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113 completed |
| &nbsp;&nbsp;C72-05 | &nbsp;&nbsp;120525 | &nbsp;&nbsp;220570 | &nbsp;&nbsp;6202 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,416 completed |
| &nbsp;&nbsp;C72-06 | &nbsp;&nbsp;121749 | &nbsp;&nbsp;219919 | &nbsp;&nbsp;5902 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;663 completed |
| &nbsp;&nbsp;C72-07 | &nbsp;&nbsp;121491 | &nbsp;&nbsp;219823 | &nbsp;&nbsp;5962 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;275 completed |
| &nbsp;&nbsp;C72-08 | &nbsp;&nbsp;118890 | &nbsp;&nbsp;220025 | &nbsp;&nbsp;6467 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;379 completed |
| &nbsp;&nbsp;C74-09 | &nbsp;&nbsp;121438 | &nbsp;&nbsp;220687 | &nbsp;&nbsp;5890 | &nbsp;&nbsp;-60 | &nbsp;&nbsp;168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;804.6 completed |
| &nbsp;&nbsp;C75-10 | &nbsp;&nbsp;119756 | &nbsp;&nbsp;221220 | &nbsp;&nbsp;6341 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,381 completed |
| &nbsp;&nbsp;C76-11 | &nbsp;&nbsp;120456 | &nbsp;&nbsp;221250 | &nbsp;&nbsp;5996 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,003 completed |
| &nbsp;&nbsp;C76-12 | &nbsp;&nbsp;120955 | &nbsp;&nbsp;221432 | &nbsp;&nbsp;5742 | &nbsp;&nbsp;-43 | &nbsp;&nbsp;190 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,340 completed |
| &nbsp;&nbsp;C77-13 | &nbsp;&nbsp;119472 | &nbsp;&nbsp;219903 | &nbsp;&nbsp;6426 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,804 completed |
| &nbsp;&nbsp;C77-14 | &nbsp;&nbsp;119085 | &nbsp;&nbsp;221271 | &nbsp;&nbsp;6613 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,123.8 completed |
| &nbsp;&nbsp;C77-15 | &nbsp;&nbsp;119772 | &nbsp;&nbsp;221951 | &nbsp;&nbsp;6339 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,933.2 completed |
| &nbsp;&nbsp;C78-16 | &nbsp;&nbsp;119210 | &nbsp;&nbsp;219148 | &nbsp;&nbsp;6248 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,131.7 completed |
| &nbsp;&nbsp;C78-17 | &nbsp;&nbsp;118712 | &nbsp;&nbsp;219887 | &nbsp;&nbsp;6544 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,281.5 completed |
| &nbsp;&nbsp;C78-18 | &nbsp;&nbsp;119823 | &nbsp;&nbsp;222649 | &nbsp;&nbsp;6168 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,361 completed |
| &nbsp;&nbsp;C79-19 | &nbsp;&nbsp;120178 | &nbsp;&nbsp;219887 | &nbsp;&nbsp;6170 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,280 completed |
| &nbsp;&nbsp;C79-20 | &nbsp;&nbsp;120878 | &nbsp;&nbsp;220787 | &nbsp;&nbsp;6105 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,543 completed |
| &nbsp;&nbsp;RC80-21 | &nbsp;&nbsp;120511 | &nbsp;&nbsp;220541 | &nbsp;&nbsp;6202 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000 completed |
| &nbsp;&nbsp;RC80-22 | &nbsp;&nbsp;119913 | &nbsp;&nbsp;220412 | &nbsp;&nbsp;6239 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;670 completed |
| &nbsp;&nbsp;RC80-23 | &nbsp;&nbsp;120695 | &nbsp;&nbsp;219420 | &nbsp;&nbsp;5827 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;960 completed |
| &nbsp;&nbsp;C81-24 | &nbsp;&nbsp;120671 | &nbsp;&nbsp;222009 | &nbsp;&nbsp;6070 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000 completed |
| &nbsp;&nbsp;C81-25 | &nbsp;&nbsp;119890 | &nbsp;&nbsp;219290 | &nbsp;&nbsp;6019 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,011 completed |
| &nbsp;&nbsp;C81-26 | &nbsp;&nbsp;121338 | &nbsp;&nbsp;221433 | &nbsp;&nbsp;5768 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,193 completed |

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| | |
|:---|:---|
| *Notes*: | C holes are diamond and RC are reverse circulation. |
|  | <br>Holes contained in the above list represent individual holes that may have been drilled across more than one year, while table 6-1 shows the actual footage drilled in each year according the records.  |

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**5.2** **Historical Resource Estimate** 

The estimate summarized here was undertaken by Climax prior to the inception of NI 43-101 and does not follow the Standard nor adhere to the categories outlined in NI 43-101. The "Amax Resource" is considered an historical estimate, and not a "Resource" in accordance with NI 43-101. A technical report on the property was never filed. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. CuMoCo is not treating the historic estimate as current mineral resources. it is included here for historic completeness only. The resource for the property is only as defined in Section 14 of this report.

Based on the 26 drill holes a resource block model was constructed in 1983, extending between local grid coordinates 17,000 to 25,000 east and 16,000 to 23,000 north. The individual blocks were 100 ft in both the north-south and east-west directions and were 50 ft in height. Blocks were located from 7,000 ft down to 3,050 ft above sea level. Grades were estimated using 50 ft drill hole assay composites and mineralized zone boundaries. Kriging was performed within a 1,500 ft horizontal search limited to 300 ft vertically.

**Table 5-3: CuMo historical results, 1982 Amax block model**

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| | | |
|:---|:---|:---|
| **Cut-off Grade (MoS<sub>2</sub>%)** | **Million Tons** | **Average Grade (MoS<sub>2</sub>%)** |
| 0.02 | 2100 | 0.072 |
| 0.03 | 1900 | 0.078 |
| 0.04 | 1600 | 0.084 |
| 0.05 | 1500 | 0.092 |
| 0.06 | 1100 | 0.097 |
| 0.08 | 730 | 0.116 |
| 0.10 | 470 | 0.131 |
| 0.12 | 280 | 0.145 |
| 0.14 | 140 | 0.170 |

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Source: Baker, 1983

In 1983, Climax transferred its interest in the property to Amax Exploration Inc. and no further work appears to have been done on the property.

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| | |
|:---|:---|
| **6** | **Geological Setting and Mineralization** |

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**6.1** **Regional Geo** l **ogy** 

The regional tectonic setting consists of a basement of amalgamated Archean and Paleoproterozoic crystalline terrains that were joined during the Paleoproterozoic Trans-Montana orogeny, and are overlain discontinuously by sedimentary rocks of Mesoproterozoic, Neoproterozoic, and Paleozoic ages; and volcanic and sedimentary rocks of Eocene and Miocene ages. Voluminous tonalite to granite bodies of the Idaho batholith and later granitic plutons of Eocene age intrude the older rocks. Major deformational episodes superimposed on the Precambrian basement include the Cretaceous Sevier orogeny, which mainly involved east-vergent "thin-skinned" thrusting; Eocene extensional deformation, which resulted in development of metamorphic core complexes; and basin and range-type faulting (Sims et al, 2005), as opposed to the Laramide orogeny's "basement cored" uplifts which partially overlapped the Sevier orogeny in time and space.

The regional geology has been compiled at 1:1,000,000 to form the digital map of Idaho (Johnson and Raines, 1996). The CuMo deposit is situated within the Idaho batholith and is part of a regional scale belt of porphyry and related deposits identified as the Idaho-Montana Porphyry Belt (Rostad, 1978). This belt is part of a magmatic arc that formed on the northeast margin of the North American Craton (Figure 7-1) during Laramide time (Late Cretaceous-Early Tertiary). The Idaho-Montana Porphyry Belt lies within the much longer, 1,500 km, Great Falls tectonic zone (Figure 7-2), which was distinguished by brittle structures and intrusions of Phanerozoic age that are interpreted to have been controlled by the reactivation of basement structures. (O'Neill and Lopez, 1985). Two sets of basement structures, in particular, provided zones of weakness that were repeatedly rejuvenated (Sims et al, 2005):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Northeast-trending
ductile shear zones developed on the northwest margin of the Archean Wyoming province during the Paleoproterozoic Trans-Montana orogeny;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Northwest-trending
intra-continental faults of the Mesoproterozoic Trans-Rocky Mountain strike slip fault system.

The Trans-Montana orogeny comprises a deformed, north-facing, passive continental margin and subsequent fore-deep assemblages overlying an Archean basement that is juxtaposed with accreted conjoined terrains. The juncture is the linear deformed belt between the Great Falls and Dillon shear zones. The fold-and-thrust belt of the Trans-Montana orogeny coincides in part with the Great Falls tectonic zone.

The Trans-Rocky Mountain fault system is a major, deep-seated, northwest trending, intracontinental strike-slip fault system of Mesoproterozoic age. It consists principally of west northwest-striking strike-slip faults (principal displacement zones), branching and en-echelon northwest-trending faults, and widely spaced, more local north-trending faults.

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![](ex96-1_005.jpg)

Source: Hildenbrand et al, 2000

**Figure 6-1: Tectonic map of the western United States**

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![](ex96-1_006.jpg)

Source: Lund et al, 2005

**Figure 6-2: Distribution of Idaho-Montana porphyry deposits in relation to the great falls tectonic zone**

Mineral deposits in the Idaho-Montana Porphyry Belt (also called the Transverse Porphyry Belt of Idaho-Montana by Carten et al, 1993) are related to Eocene granitic intrusions. The distribution of deposits along this belt from northeast to southwest follows a progression from alkalic rocks (intra-arc rift-related), to mixed alkalic and calc-alkalic, and finally calc-alkalic intrusive rocks, a pattern that is similar to the distribution of igneous rocks from south to north along the proto Rio Grande rift (Carten et al, 1993). The CuMo deposit is located at the southwestern end of this belt and is associated with a calc-alkalic monzogranite, reported as 45-52Ma age (Carten et al, 1993) that intrudes Cretaceous equigranular intrusive rocks of the Atlanta Lobe of the Idaho Batholith.

The Idaho batholith is a composite mass of granitic plutons covering approximately 15,400 square miles. The northern part is called the "Bitterroot" lobe and the southern part the "Atlanta" lobe. Most of the southern lobe was emplaced 75 to 100 million years ago (Late Cretaceous); whereas the northern lobe was emplaced 70 to 80 million years ago. Older plutons of Jurassic age occur on the northwest side of the Bitterroot lobe and many Eocene plutons have intruded the eastern side of the Atlanta lobe of the batholith. Although radiometric dates and field relationships restrict the age of the Idaho Batholith to between 180 and 45 million years, the dominant interval of emplacement was early to Middle Cretaceous. There is a general west-to-east decrease in age for plutons of the batholith.

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On the west side of the batholith the rocks are tonalites or quartz diorites, whereas on the east side they range from granodiorites to granites. The boundary between the two composition types also coincides with the 0.704 Sr87/Sr 86 boundary and also the boundary between the Mesozoic and Paleozoic eugeoclinal accreted rocks on the west with the continental Precambrian rocks on the east side (Digital Atlas of Idaho: http://imnh.isu.edu/digitalatlas/geo/bathlith/bathdex.htm).

The CuMo deposit is situated within the Atlanta Lobe of the Idaho batholith. The western margin of the Atlanta lobe is strongly folded and metamorphosed into gneissic rocks, which are well exposed near McCall. The western side is composed of tonalite, 95 to 85 million years old. The batholith core is biotite granodiorite; and the eastern side lobe is muscovite-biotite granite approximately 76 to 72 million years old1<sup>3</sup>.

6.2 Local Geology

The geology of the area around the CuMo deposit was mapped and originally compiled at 1:24,000 scale by Anderson (1947). This mapping has been incorporated into the 1:100,000 scale Deadwood River 30 x 60 quadrangle map (Kilsgaard et al, 2006), and adjoining Idaho City 30 x 60 quadrangle map (Kilsgaard et al, 2001), and compiled into the Boise County map of the digital Atlas of Idaho (Figure 7-3).

The CuMo area is underlain by biotite granodiorite, the most common rock type of the Atlanta lobe of the Idaho batholith (Unit Kgd) (Killsgaard et al, 1985). This unit was mapped by Anderson (1947) as quartz monzonite: (Unit Kqm) – in part porphyritic and including granodiorite. The rock is light grey, medium to coarse-grained and equigranular to porphyritic. Biotite averages about 5% and sericite alteration of feldspar is common. Killsgaard et al (1985) report the age of this unit at 82-69Ma based on potassium-argon dating.

Tertiary plutonic rocks intruded into the batholith in the area of CuMo include Eocene diorite and hornblende biotite granite forming the Boise Basin and Long Gulch Stocks and associated dikes (Unit Tgdd) (Killsgaard et al, 2005). These units were identified as diorite and quartz monzonite porphyry, respectively, by Anderson (1947). The Eocene granites are generally characterized by pink color due to potassium feldspar as a major component, miarolitic cavities that may be lined with smoky quartz, high radioactivity relative to the Idaho batholith, the presence of perthitic feldspar, myrmekite and granophyric texture indicating high temperature crystallization complicated by quenching, and a high content of large cation elements including molybdenum, high fluorine content, and high-iron biotite (Killsgaard et al, 1985).

<sup>3</sup> Digital Atlas of Idaho: http://imnh.isu.edu/digitalatlas/geo/bathlith/bathdex.htm.

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![](ex96-1_007.jpg)

Source: Modified from: http://imnh.isu.edu/digitalatlas/counties/boise/geomap.htm

**Figure 6-3: Geology of Boise County, Idaho, showing geological setting of CuMo deposit**

Hypabyssal equivalents of the granites include numerous rhyolite dikes that are concentrated along the trans-Challis fault system (Killsgaard et al, 1985). Rhyolite dikes are generally less than 25 ft thick and may exhibit flow banding, whereas rhyolite porphyry dikes can reach 200 ft in thickness and have prominent quartz phenocrysts (Anderson, 1947).

Extensive placer gold workings and lode deposits in the area are situated along the northeast trending trans-Challis fault system (Killsgaard et al, 1989; Bennett, 1986). As shown in Figure 7-3, a north-trending Basin and Range fault, down on the east, bounds the system of northeast-striking trans-Challis faults to the west of CuMo (Link, 2002).

6.3 Property Geology

Amax completed detailed bedrock mapping on the CuMo property between 1964 and 1981. Earlier periods of mapping outlined five general rock types, including quartz monzonite of the Idaho Batholith, rhyolite porphyry, lamprophyre, dacite and diabase dykes. Subsequent mapping through to1982 resulted in subdivision of those five units into 17 (Table 7-1).

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**Table 6-1: Summary of rock units present at the CuMo property**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Unit** | **Age** | **Rock Type** | **Texture** | **Grain Size** |
| Tl | Tertiary | Lamprophyre | Porphyritic | Fine |
| Td | Tertiary | Diabase | Massive, amygdaloidal | Aphanitic |
| Tr | Tertiary | Rhyolite | Massive to flow-banded | Aphanitic to fine |
| TpE | Tertiary | Biotite quartz monzonite porphyry | Porphyritic | Fine |
| Tbx | Tertiary | Intrusion to intrusive breccia | Breccia | Aphanitic to fine |
| Trp | Tertiary | Biotite quartz monzonite porphyry | Porphyritic | Aphanitic to fine |
| TpF | Tertiary | Biotite quartz latite to rhyolite porphyry | Porphyritic | Aphanitic |
| TpB | Tertiary | Biotite quartz latite to rhyolite porphyry | Porphyritic | Aphanitic |
| TpA | Tertiary | Biotite quartz latite to quartz monzonite porphyry | Porphyritic | Aphanitic to fine |
| TpD | Tertiary | Biotite quartz monzonite to quartz latite porphyry | Porphyritic | Aphanitic to fine |
| TpC | Tertiary | Biotite quartz latite to quartz monzonite porphyry | Porphyritic | Aphanitic to fine |
| Tbhqmp | Tertiary | Biotite hornblende quartz monzonite porphyry | Porphyritic | Fine |
| Tbdp | Tertiary | Biotite dacite porphyry | Porphyritic | Aphanitic |
| Tgd | Tertiary | Granodiorite | Equigranular | Fine-medium |
| Ta | Tertiary | Andesite | Porphyritic | Aphanitic |
| Kg | Cretaceous | Gabbro | Equigranular – diabasic | Fine |
| Kqm | Cretaceous | Biotite-quartz monzonite | Equigranular to porphyritic | Coarse-medium |

---

Baker (1983) noted that the "ranges of textures in the various dike types (TpA-TpF) overlap, but show a general trend from early, phenocryst-rich porphyries with large phenocrysts, to young, phenocryst-poor porphyries with small phenocrysts".

Three main intrusive types were observed in the holes drilled to date, including equigranular quartz monzonite, quartz monzonite porphyry, and intrusive breccia. Mafic dikes were also intersected locally. The equigranular quartz monzonite is considered to be the Idaho batholith (Unit Kqm) and locally contains K-feldspar megacrysts. The intrusive breccia is comprised of fragments of porphyry and equigranular quartz monzonite. All of the felsic intrusive phases contain molybdenite (MoS<sub>2</sub>) mineralization. Examples of the main rock types are shown in Figure 7-4. The quartz monzonite porphyry (Unit Tbqmp) varies considerably in proportion and size of phenocrysts, with at least four varieties recognized (Figure 7-4). The first and possibly earliest phase (Unit Tbqmp Type I) is dark to medium grey, with 10-15%, <7 mm feldspar phenocrysts, 1-2% fine-grained biotite, and <5% quartz set in a fine-grained groundmass. The second phase (Unit Tbqmp Type II) is medium to light grey, with 30% feldspar phenocrysts and minor biotite set in a medium-grained groundmass. The third phase (Unit Tbqmp Type III) is similar to Type II but contains K-feldspar megacrysts. The fourth phase and possibly most recent is a crowded porphyry variant of Type III containing >30% feldspar phenocrysts set in a medium-grained groundmass. Type I through IV phases may correlate with Amax units TpD, TpB, TpA and TpC, respectively, and appear to follow a general pattern of early, phenocryst poor phases intruded by later phenocryst-rich phases, which is opposite to the general progression observed by previous workers.

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Structure may be an important factor on the distribution of mineralization at the CuMo property. A strong northeast to east-northeast structural trend, characteristic of the trans-Challis fault system, is evident in the area of the property. The Tertiary dyke system trends in this same orientation with steep to moderate dips to the south. Faults and mineralized structures identified to date dominantly trend to the northeast as well. These include numerous small base and precious metal occurrences that occur in the area and surrounding the CuMo deposit with most of the major lodes striking east-northeast (N70E) whereas subordinate lodes are oriented northeasterly (N35E, N10-20E and N30-60E). Several fault zones, marked by sections of broken core, were logged in the drilling, which appear to offset the interpreted mineral zones. The full significance of these fault structures to the deposit geometry remains to be determined.

![](ex96-1_008.jpg)

Source: Giroux et al, 2015

 

*Note:* All core pieces are 2.4 inches in width

**Figure 6-4: Core photographs of felsic porphyry types recognized in drill core**

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6.4 Mineralization

6.4.1 Description of Mineralized Zones

The CuMo deposit is located in an historic gold mining camp. Gold was discovered in the Boise Basin in 1862 and lode mining began within a year. As of 1940, total gold production amounted 2.8 million ounces of which 74% was from placer operations (Anderson, 1947). More gold has been produced from the Boise Basin than any other mining locality in Idaho (Killsgaard et al, 1989). Although they are primarily gold deposits, considerable silver and minor copper, lead and zinc were produced as by-products from the lodes.

Anderson (1947) recognized two separate mineralizing events that he referred to as early Tertiary and early Miocene. The first event consists of gold-quartz veins containing minor sulfide minerals that occur within the Idaho batholith and are associated with weak wall rock alteration. Associated sulfide minerals include pyrite, arsenopyrite, sphalerite, tetrahedrite, chalcopyrite, galena and stibnite. The second mineralizing event occurs within porphyry dikes and stocks as well as in the batholith, and is characterized by relatively abundant sulfide mineralization, subordinate quartz and widespread wall rock alteration. Base metal mineralization consists of pyrite, sphalerite, galena, tetrahedrite, chalcopyrite, minor quartz and siderite with local occurrences of pyrrhotite and enargite. The gold-quartz veins generally occur relatively distal to the CuMo deposit (within 4 to 6 miles/6 to 10 km), whereas the base-metal-gold lodes occur in a belt that follows the "porphyry belt" from Quartzburg through Grimes Creek, proximal to and coincident with the CuMo deposit. This "porphyry belt" is what the CuMoCo refers to as the older copper-gold porphyry system which is characterized by the chalcopyrite-silver-gold bearing veins.

6.4.2 Property Mineralization

Molybdenum mineralization was discovered at CuMo in 1963. The only other molybdenum showing in Boise County is the Little Falls molybdenum prospect, which is situated just to the northeast of CuMo.

Mineralization on the property occurs in veins and veinlets developed within various intrusive bodies. Molybdenite (MoS<sub>2</sub>) occurs within quartz veins, veinlets and vein stockworks. Individual veinlets vary in size from tiny fractures to veinlets five centimeters in width, with an overall thickness averaging 0.3-0.4 cm. Pyrite and/or chalcopyrite are commonly associated with molybdenite although molybdenite can occur alone without other metallic mineralization.

Chalcopyrite occurs in quartz-pyrite + molybdenite veinlets, in magnetite + pyrite as well as in pyrite-biotite + quartz + magnetite veins with secondary biotite halos. Scheelite is common on the property and closely parallels the distribution of molybdenite (Baker, 1983).

Figure 7-5 and Figure 7-6 show examples of mineralization at CuMo from the previous drill holes.

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![](ex96-1_009.jpg)

Source: Giroux et al, 2015

*Note*: in this older figure, "Molybdenum" is referring to molybdenite mineralization.

**Figure 6-5: Photographs of mineralized core from the CuMo 2006 program, hole C06-28**

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![](ex96-1_010.jpg)

Source: Giroux et al, 2015

*Note:* All core pieces are 2.4 inches in width

**Figure 6-6: Photographs of molybdenite mineralization in 2008 drill core**

Compilation of Amax data on the frequency of veins mapped on surface as well as their mineral constituents was presented by Giroux et al (2005) and is shown graphically in Figure 7-7.

A concentric pattern is clearly evident, which is also shown by the distribution of anomalous Mo and Cu rock geochemical results – Figure 7-8 and Figure 7-9. The area drilled to date occupies only a portion of the central area; Amax had identified prospective target areas to the southeast and east of the area drilled.

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![](ex96-1_011.jpg)

Source: Giroux et al, 2015 modified 2019

---

| | |
|:---|:---|
| *Note:* | The "Amax Resource" indicated on the figure is considered an historical estimate, and not a "Resource" in accordance with NI 43-101. A technical report on the property was never filed. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. The Company does not consider the Amax resource as current. |

---

**Figure 6-7: Surface distribution of quartz and epidote veinlets and metal zonation**

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Source: Giroux et al, 2015 modified 2019

**Figure 6-8: Geochemical distribution of Mo in surface rock chip samples**

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Source Giroux et al, 2015 modified 2019

**Figure 6-9: Geochemical distribution of Cu in surface rock chip samples**

Amax interpreted two shells of molybdenite mineralization, with the upper shell being richer in copper and silver, but of lower molybdenite (MoS<sub>2</sub>) grade, and the lower shell being molybdenite (MoS<sub>2</sub>)-rich and depleted in copper and silver (Baker, 1983). Amax interpreted this pattern of metal zoning to have formed above and peripheral to two or more source intrusions (of which only one was recognized physically).

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7 Exploration And Drilling

Since obtaining the property in 2005, work has been solely focused on drilling on the CuMo property.

Only reportable exploration conducted by CuMoCo outside of drilling on the CuMo property was a dump sample taken during reconnaissance work undertaken by the project geologists in 2017. The dump is located approximately 1,731 m west of the western most drill hole to date, hole 10-47, The sample although taken to represent the material occurring on the dump (Coon Dog, located in Figure 10-1) which was estimated to contain 15 tons of material, the sample is considered a grab and not representative of any sort of size, width or extent of material. The sample which was assayed by ALS Chemex using ICP-M61 technique assayed 3.12% Cu, 783 ppm Ag, and 0.986 ppm Au.

Note: *The reader is cautioned that grab sample assays represent prospecting samples and may not be representative of the grade or width of the mineralization. There is presently insufficient data with respect to the size and extend of the mineralization represented by the sample to determine its significance. Future drilling is designed to determine that significance, if any.*

*Note: Sample was taken by collecting approximately 10 kg of random broken rocks pieces from the area of the dump*

The reconnaissance worked involved two geologists examining surface exposures looking for additional indications of mineralization. Several indications were identified including the Coon Dog Dump. The work resulted in an increase to the extent of mineralization (deposit outline) as can be seen in Figure 4-2. A drill program for the area has been proposed for the 2020 field season.

The reader will encounter several outlines of various aspects of the CuMo project that are explained in the pertinent section, but for clarity are summarized here.

The first outline is the deposit or mineralized outline, this is shown in Figure 4-2 (Mineralized outline) and represents the extent of the CuMo deposit based on the geology, alteration and mineralization. It is the largest and most extensive boundary.

The next outline encountered is the conceptual pit or 2015 block model boundary, this is the outline of the location of all blocks that are placed around the drill holes that are within a conceptual pit design. As drilling proceeds, more and more of these blocks are converted into resources.

The next outline is the 2015 resource boundary (resource outline in figure 4-2) , this outlines the area of blocks that were actually calculated in the current 2015 resource; it amounts to 60% of the previous block model boundary. Reader should note that not all blocks within the block boundary have been actually calculated.

The final boundary is the actual 30-year pit boundary (2019 pit outline in figure 4-2) that contains the blocks within the 2015 resource that are proposed to be mined during the 30 years.

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7.1 Drilling and Trenching

**Summary of Programs by Year**

Between 2006 and 2012, CuMoCo has drilled a total of 25,486.82 m in 42 holes (Table 10-1).

**Table 7-1: Summary of holes drilled by CuMoCo**

---

| | | |
|:---|:---|:---|
| **Year** | **No Holes** | **Length (m)** |
| 2006 | 1 | 1085.1 |
| 2007 | 7 | 3872.5 |
| 2008 | 11 | 8159.7 |
| 2009 | 9 | 5687.8 |
| 2010 | 3 | 1312.8 |
| 2011 | 2 | 1156.7 |
| 2012 | 9 | 4213.3 |
| **Total** | **42** | **25487.9** |

---

7.2 Sampling and True Thickness Adjustments

All drill holes completed by CuMoCo were sampled at 10 ft intervals for the entire hole. The deposit is a stockwork type. No preferred orientation of veins has been identified. No systemic adjustment of sampling intervals or intercept lengths to reflect "true thickness" has been applied, nor is it considered warranted.

7.3 2006 Drill Program

In 2006, diamond drilling was done by Kettle Drilling Inc. of Coeur d'Alene on behalf of Kobex Resources Ltd. and CuMoCo Resources Corp. Kobex commenced drilling in August 2006 and completed one hole. On October 6, 2006, Kobex delivered a notice of termination in respect of the CuMo property. The option on the project was terminated when the second hole was at a depth of 600 ft, and the action was taken before any assays were received. ICMC (wholly owned US subsidiary of CuMoCo.) assumed control of the project on October 10, 2006 and completed this hole to a depth of 1,710 ft before the program was halted due to the onset of winter conditions.

7.4 2007 to 2011 Drill Program

Between 2007 and 2011, diamond drilling was done by Kirkness Drilling (Kirkness) of Carson City, Nevada. Kirkness drilled 33 diamond drill holes. Table 10-2 provides details of the drilling undertaken from 2006 to 2011.

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**Table 7-2: Summary of 2006 to 2011 diamond drilling at CuMo**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Hole** | **Northing** | **Easting** | **Elevation** | **Dip** | **Azimuth** | **Length (ft)** |
| 27-06 | 120032 | 220208 | 6351 | -90 | 0 | &nbsp;&nbsp;1,849 completed |
| 28-06 | 119540 | 220817 | 6321 | -90 | 0 | &nbsp;&nbsp;1,716 completed |
| 29-07 | 119779 | 221247 | 6344 | -70 | 140 | &nbsp;&nbsp;2,281.7 completed |
| 30-07 | 119732 | 219617 | 6213 | -90 | 0 | &nbsp;&nbsp;2,411.5 completed |
| 31-07 | 119792 | 221243 | 6342 | -70 | 45 | &nbsp;&nbsp;2,104 completed |
| 32-07 | 119558 | 220823 | 6324 | -70 | 190 | &nbsp;&nbsp;2,044 completed |
| 33-07 | 118477 | 221227 | 6797 | -90 | 0 | &nbsp;&nbsp;2,095 stopped |
| 34-07 | 118658 | 220487 | 6534 | -70 | 95 | &nbsp;&nbsp;1,769 stopped |
| 35-08 | 118655 | 220480 | 6533 | -90 | 0 | &nbsp;&nbsp;2,817 completed |
| 36-08 | 119335 | 219449 | 6275 | -90 | 0 | &nbsp;&nbsp;2,488 completed |
| 37-08 | 119780 | 221247 | 6341 | -70 | 335 | &nbsp;&nbsp;2,195 completed |
| 38-08 | 118655 | 220480 | 6533 | -70 | 180 | &nbsp;&nbsp;2,441 completed |
| 39-08 | 118918 | 220813 | 6575 | -90 | 0 | &nbsp;&nbsp;2,688 completed |
| 40-08 | 119530 | 220791 | 6321 | -70 | 225 | &nbsp;&nbsp;2,252 completed |
| 41-08 | 119630 | 218962 | 6220 | -90 | 0 | &nbsp;&nbsp;3,018 completed |
| 42-08 | 118749 | 219911 | 6549 | -70 | 270 | &nbsp;&nbsp;2,707 stopped (winter) |
| 43-08 | 120613 | 220053 | 6174 | -80 | 40 | &nbsp;&nbsp;1,308 stopped by fault |
| 44-08 | 118085 | 221516 | 6739 | -65 | 75 | &nbsp;&nbsp;3,047 completed |
| 45-08 | 119802 | 218821 | 6184 | -80 | 330 | &nbsp;&nbsp;1,796 stopped (winter) |
| 46-09 | 118914 | 220811 | 6575 | -75 | 110 | &nbsp;&nbsp;959 stopped |
| 47-09 | 120687 | 219422 | 5833 | -90 | 0 | &nbsp;&nbsp;2,530 completed |
| 48-09 | 120690 | 219425 | 5826 | -70 | 305 | &nbsp;&nbsp;2,576 completed |
| 49-09 | 119095 | 221746 | 6645 | -90 | 0 | &nbsp;&nbsp;2,847 completed |
| 50-09 | 121548 | 219844 | 5833 | -75 | 270 | &nbsp;&nbsp;1,826 completed |
| 51-09 | 121535 | 219860 | 5829 | -90 | 0 | &nbsp;&nbsp;1,593.5 completed |
| 52-09 | 118500 | 221251 | 6791 | -75 | 20 | &nbsp;&nbsp;2,772 completed |
| 53-09 | 119804 | 218831 | 6183 | -75 | 15 | &nbsp;&nbsp;2,461 completed |
| 54-09 | 119535 | 219005 | 6196 | -75 | 15 | &nbsp;&nbsp;1,096 completed |
| 55-10 | 117560 | 218422 | 6724 | -65 | 0 | &nbsp;&nbsp;2,479 completed |
| 56-10 | 117560 | 218422 | 6724 | -65 | 305 | &nbsp;&nbsp;1,294 completed |
| 57-10 | 117559 | 218422 | 6724 | -90 | 0 | &nbsp;&nbsp;534 stopped (winter) |
| 58-11 | 119143 | 219970 | 6451 | -90 | 0 | &nbsp;&nbsp;1,885 completed |
| 59-11 | 119096 | 221746 | 6645 | -75 | 0 | &nbsp;&nbsp;1,910 completed |

---

*Note:* Hole 27-06 was started in 2006 and completed in 2007. With footage recorded in Table 10-1 in both 2006 and 2007.

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All CuMoCo drilling programs were directly supervised by onsite geology staff located in Garden Valley, Idaho. Drilling consisted of both HQ and NQ diameter core with holes being started with HQ diameter and then reducing at a major fault intersection or at 1000 feet which ever was less. Core recoveries were monitored and were excellent (90%+)

All CuMoCo holes were surveyed down-the-hole at regular intervals (100 feet) using a Reflex survey instrument.

All core was collected at the drill site by the diamond drillers under supervision of onsite geology staff and delivered to the secure warehouse facility in Garden Valley where they were logged, analyzed and samples collected. All drill sites were surveyed using a total field station in order to accurately locate the holes. Section 8.1 gives more details on the sampling procedures and core box handling methods employed.

Figure 10-1 shows the locations of all holes drilled to date in the deposit, as well as the future locations of the 33 drill-holes proposed in the recommendations in Section 23 of this report. Figure 10-2 and Figure 10-3 show typical sections through the deposit.

A summary of significant intersections for all the CuMo drilling undertaken by CuMoCo is given in Table 10-3.

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![](ex96-1_014.jpg)

Source: Giroux et al, 2015 modified 2019

**Figure 7-1: Map showing the location of completed and proposed drill holes**

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Source: Giroux et al, 2015 modified 2019

**Figure 7-2: CuMo deposit Q-Q cross section**

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![](ex96-1_016.jpg)

Source: Giroux et al, 2015 modified 2019

**Figure 7-3: CuMo deposit H-H cross section**

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**Table 7-3: Significant intersections from CuMo drilling**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole**<br> **(Name)** | **From**<br> **(meters)** | **To**<br> **(meters)** | **Length**<br> **(meters)** | **Zone** | **Cu**<br> **equiv. %** | **MoS<sub>2</sub>**<br> **equiv. %** | **MoS<sub>2</sub>**<br> **(%)** | **Cu**<br> **(%)** | **Ag**<br> **(ppm)** | **Re**<br> **(ppm)** | **W**<br> **(ppm)** |
| C71-01 | 70.4 | 574.2 | 503.8 | main | 0.38 | 0.088 | 0.059 | 0.12 | 2.59 | 0.00 | 46 |
| C71-01 | 118.9 | 143.3 | 24.4 | Incl. | 0.53 | 0.122 | 0.099 | 0.14 | 2.56 | 0.00 | 44 |
| C71-01 | 518.2 | 574.2 | 56.1 | Incl. | 0.49 | 0.114 | 0.100 | 0.08 | 1.21 | 0.00 | 54 |
| C72-05 | 137.2 | 431.6 | 294.4 | main | 0.43 | 0.099 | 0.060 | 0.13 | 4.46 | 0.00 | 75 |
| C74-09 | 140.2 | 245.2 | 105.0 | main | 0.54 | 0.126 | 0.077 | 0.12 | 7.16 | 0.00 | 71 |
| C75-10 | 67.1 | 658.4 | 591.3 | main | 0.47 | 0.109 | 0.099 | 0.05 | 1.43 | 0.00 | 48 |
| C76-11 | 42.7 | 740.1 | 697.5 | main | 0.36 | 0.084 | 0.074 | 0.05 | 1.55 | 0.00 | 36 |
| C76-11 | 396.2 | 597.4 | 201.2 | Incl. | 0.55 | 0.128 | 0.127 | 0.03 | 0.77 | 0.00 | 58 |
| C76-12 | 29.9 | 435.9 | 405.9 | main | 0.25 | 0.058 | 0.041 | 0.06 | 1.66 | 0.00 | 45 |
| C77-13 | 207.3 | 549.9 | 342.6 | main | 0.51 | 0.119 | 0.111 | 0.05 | 1.98 | 0.00 | 49 |
| C77-14 | 237.7 | 647.3 | 409.6 | main | 0.53 | 0.124 | 0.114 | 0.06 | 1.84 | 0.00 | 65 |
| C77-14 | 365.8 | 597.4 | 231.6 | Incl. | 0.68 | 0.158 | 0.151 | 0.06 | 1.91 | 0.00 | 74 |
| C77-15 | 182.9 | 589.2 | 406.4 | main | 0.53 | 0.123 | 0.113 | 0.06 | 1.73 | 0.00 | 57 |
| C77-15 | 384.0 | 573.0 | 189.0 | Incl. | 0.64 | 0.150 | 0.153 | 0.02 | 0.75 | 0.00 | 69 |
| C78-16 | 304.8 | 649.7 | 344.9 | main | 0.44 | 0.102 | 0.093 | 0.04 | 1.86 | 0.00 | 32 |
| C78-17 | 353.6 | 695.4 | 341.8 | main | 0.37 | 0.086 | 0.064 | 0.08 | 2.55 | 0.00 | 40 |
| C78-18 | 426.7 | 719.6 | 292.9 | main | 0.62 | 0.144 | 0.129 | 0.08 | 2.71 | 0.00 | 41 |
| C79-19 | 36.6 | 694.9 | 658.4 | main | 0.51 | 0.118 | 0.101 | 0.08 | 2.27 | 0.00 | 49 |
| C79-20 | 50.3 | 548.6 | 498.3 | main | 0.43 | 0.099 | 0.069 | 0.11 | 3.83 | 0.00 | 52 |
| C81-25 | 57.9 | 308.2 | 250.2 | main | 0.43 | 0.101 | 0.070 | 0.13 | 2.42 | 0.00 | 58 |
| C81-25 | 225.6 | 308.2 | 82.6 | Incl. | 0.53 | 0.124 | 0.090 | 0.14 | 2.98 | 0.00 | 84 |
| C81-26 | 9.1 | 228.6 | 219.5 | main | 0.41 | 0.094 | 0.034 | 0.18 | 7.58 | 0.00 | 28 |
| C06-27 | 36.6 | 563.6 | 527.0 | main | 0.42 | 0.097 | 0.084 | 0.06 | 1.60 | 0.02 | 49 |
| C06-27 | 329.2 | 563.6 | 234.4 | Incl. | 0.58 | 0.136 | 0.133 | 0.04 | 0.99 | 0.04 | 59 |
| C06-28 | 15.2 | 515.1 | 499.9 | main | 0.47 | 0.110 | 0.097 | 0.07 | 1.92 | 0.05 | 54 |
| C06-28 | 256.0 | 378.0 | 121.9 | Incl. | 0.70 | 0.162 | 0.162 | 0.03 | 0.98 | 0.09 | 68 |
| C07-29 | 57.9 | 679.7 | 621.8 | main | 0.52 | 0.121 | 0.103 | 0.08 | 2.13 | 0.05 | 53 |
| C07-29 | 359.7 | 545.6 | 185.9 | Incl. | 0.74 | 0.171 | 0.169 | 0.04 | 1.2 | 0.08 | 37 |
| C07-30 | 12.2 | 727.3 | 715.1 | main | 0.52 | 0.122 | 0.108 | 0.06 | 2.05 | 0.04 | 41 |
| C07-30 | 359.7 | 605.9 | 246.3 | Incl. | 0.80 | 0.187 | 0.185 | 0.04 | 1.46 | 0.07 | 37 |
| C07-31 | 6.7 | 641.3 | 634.6 | main | 0.34 | 0.079 | 0.064 | 0.07 | 1.76 | 0.02 | 43 |
| C07-31 | 237.7 | 469.4 | 231.6 | Incl. | 0.40 | 0.092 | 0.081 | 0.05 | 1.45 | 0.03 | 45 |
| C07-32 | 6.7 | 641.3 | 634.6 | main | 0.55 | 0.129 | 0.109 | 0.09 | 2.26 | 0.04 | 61 |
| C07-32 | 237.7 | 469.4 | 231.6 | Incl. | 0.65 | 0.151 | 0.129 | 0.10 | 2.62 | 0.05 | 77 |
| C07-33 | 220.0 | 638.3 | 418.2 | main | 0.20 | 0.048 | 0.026 | 0.07 | 2.01 | 0.01 | 48 |
| C07-33 | 603.5 | 638.3 | 34.7 | Incl. | 0.48 | 0.111 | 0.084 | 0.10 | 2.68 | 0.03 | 67 |
| C07-34 | 42.7 | 539.2 | 496.5 | main | 0.25 | 0.058 | 0.034 | 0.08 | 2.30 | 0.01 | 53 |
| C07-34 | 472.4 | 539.2 | 66.8 | Incl. | 0.41 | 0.096 | 0.074 | 0.09 | 2.36 | 0.02 | 67 |
| C08-35 | 36.6 | 804.7 | 768.1 | main | 0.31 | 0.072 | 0.057 | 0.06 | 1.73 | 0.02 | 37 |
| C08-35 | 128.0 | 804.7 | 676.7 | Incl. | 0.33 | 0.077 | 0.062 | 0.07 | 1.69 | 0.02 | 39 |

---

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole**<br> **(Name)** | **From**<br> **(meters)** | **To**<br> **(meters)** | **Length**<br> **(meters)** | **Zone** | **Cu**<br> **equiv. %** | **MoS<sub>2</sub>**<br> **equiv. %** | **MoS<sub>2</sub>**<br> **(%)** | **Cu**<br> **(%)** | **Ag**<br> **(ppm)** | **Re**<br> **(ppm)** | **W**<br> **(ppm)** |
| C08-35 | 527.3 | 804.7 | 277.4 | Incl. | 0.43 | 0.100 | 0.089 | 0.05 | 1.37 | 0.03 | 35 |
| C08-36 | 170.7 | 758.3 | 587.7 | main | 0.43 | 0.100 | 0.088 | 0.05 | 1.42 | 0.03 | 34 |
| C08-36 | 280.4 | 758.3 | 477.9 | Incl. | 0.39 | 0.090 | 0.103 | 0.04 | 1.04 | 0.03 | 33 |
| C08-37 | 18.3 | 669 | 650.7 | main | 0.43 | 0.100 | 0.084 | 0.05 | 1.67 | 0.03 | 42 |
| C08-37 | 237.7 | 649.2 | 411.5 | Incl. | 0.40 | 0.094 | 0.104 | 0.02 | 1.17 | 0.04 | 41 |
| C08-38 | 51.8 | 744 | 692.2 | main | 0.46 | 0.106 | 0.029 | 0.06 | 4.40 | 0.00 | 32 |
| C08-39 | 94.5 | 819.3 | 724.8 | main | 0.24 | 0.056 | 0.099 | 0.06 | 1.38 | 0.03 | 52 |
| C08-39 | 274.3 | 728.5 | 454.2 | Incl. | 0.47 | 0.109 | 0.122 | 0.04 | 1.09 | 0.04 | 57 |
| C08-40 | 18.3 | 686.4 | 668.1 | main | 0.54 | 0.127 | 0.115 | 0.06 | 3.79 | 0.04 | 46 |
| C08-40 | 118.9 | 634 | 515.1 | Incl. | 0.57 | 0.133 | 0.129 | 0.06 | 4.27 | 0.05 | 45 |
| C08-40 | 338.3 | 554.7 | 216.4 | Incl. | 0.64 | 0.150 | 0.142 | 0.04 | 7.78 | 0.06 | 45 |
| C08-41 | 259.1 | 862.6 | 603.5 | main | 0.75 | 0.173 | 0.067 | 0.08 | 2.23 | 0.02 | 43 |
| C08-41 | 454.2 | 618.7 | 164.6 | Incl. | 0.38 | 0.088 | 0.107 | 0.08 | 2.99 | 0.03 | 38 |
| C08-41 | 759 | 862.6 | 103.6 | Incl. | 0.56 | 0.129 | 0.077 | 0.06 | 1.53 | 0.03 | 34 |
| C08-42 | 167.6 | 825.1 | 657.5 | main | 0.38 | 0.089 | 0.044 | 0.06 | 5.81 | 0.01 | 25 |
| C08-42 | 289.6 | 825.1 | 535.5 | Incl. | 0.33 | 0.077 | 0.047 | 0.07 | 6.78 | 0.01 | 27 |
| C08-42 | 600.5 | 825.1 | 224.6 | Incl. | 0.36 | 0.084 | 0.063 | 0.05 | 1.61 | 0.01 | 21 |
| C08-43 | 50.3 | 397.2 | 346.9 | main | 0.32 | 0.075 | 0.044 | 0.09 | 4.23 | 0.02 | 52 |
| C08-43 | 201.2 | 249.9 | 48.8 | Incl. | 0.48 | 0.053 | 0.07 | 0.11 | 3.14 | 0.03 | 45 |
| C08-44 | 342.9 | 865.6 | 522.7 | main | 0.71 | 0.078 | 0.03 | 0.02 | 0.89 | 0.01 | 29 |
| C08-44 | 780.3 | 819.9 | 39.6 | Incl. | 0.15 | 0.035 | 0.06 | 0.02 | 1.47 | 0.01 | 20 |
| C08-45 | 51.8 | 547.4 | 495.6 | main | 0.27 | 0.062 | 0.02 | 0.15 | 3.08 | 0.00 | 42 |
| C08-45 | 307.8 | 547.4 | 239.6 | Incl. | 0.27 | 0.062 | 0.03 | 0.18 | 3.05 | 0.00 | 40 |
| C09-46 | 91.4 | 292.3 | 200.9 | main | 0.33 | 0.077 | 0.03 | 0.09 | 2.61 | 0.01 | 55 |
| C09-47 | 88.4 | 529.3 | 440.9 | main | 0.27 | 0.062 | 0.07 | 0.18 | 4.29 | 0.02 | 20 |
| C09-47 | 292.6 | 865.6 | 573 | main | 0.42 | 0.097 | 0.05 | 0.18 | 5.03 | 0.02 | 20 |
| C09-48 | 463.3 | 737.6 | 274.3 | Incl. | 0.40 | 0.094 | 0.08 | 0.05 | 1.70 | 0.03 | 17 |
| C09-49 | 246.9 | 464.7 | 217.8 | main | 0.38 | 0.087 | 0.11 | 0.06 | 1.91 | 0.04 | 17 |
| C09-49 | 158.5 | 478.5 | 320 | main | 0.48 | 0.112 | 0.03 | 0.15 | 5.29 | 0.01 | 20 |
| C09-50 | 271.3 | 823 | 551.7 | main | 0.31 | 0.072 | 0.04 | 0.15 | 4.86 | 0.02 | 19 |
| C09-51 | 545.6 | 804.7 | 259.1 | Incl. | 0.34 | 0.080 | 0.09 | 0.07 | 1.69 | 0.03 | 18 |
| C09-52 | 243.8 | 753.2 | 509.3 | main | 0.43 | 0.100 | 0.14 | 0.05 | 1.29 | 0.06 | 17 |
| C09-52 | 460.2 | 753.2 | 292.9 | Incl. | 0.63 | 0.147 | 0.09 | 0.19 | 4.07 | 0.02 | 18 |
| C09-53 | 179.5 | 334.1 | 154.5 | main | 0.42 | 0.098 | 0.12 | 0.15 | 3.68 | 0.03 | 19 |
| C09-53 | 70.1 | 128 | 57.9 | main | 0.49 | 0.113 | 0.11 | 0.05 | 1.69 | 0.03 | 17 |
| C09-54 | 362.7 | 365.8 | 3 | Incl. | 0.20 | 0.045 | 0.03 | 0.07 | 35.44 | 0.00 | 21 |
| C10-55 | 67.1 | 152.4 | 85.3 | main | 0.25 | 0.057 | 0.04 | 0.01 | 0.42 | 0.01 | 21 |
| C10-55 | 91.4 | 149.4 | 57.9 | main | 0.49 | 0.071 | 0.07 | 0.02 | 3.80 | 0.02 | 21 |
| C10-56 | 67.1 | 152.4 | 85.3 | main | 0.15 | 0.035 | 0.03 | 0.01 | 0.01 | 0.01 | 25 |
| C10-57 | 91.4 | 149.4 | 57.9 | main | 0.35 | 0.082 | 0.07 | 0.02 | 0.02 | 0.02 | 18 |

---

*Note:* description of how the equivalent values are calculated is provided in Section 10.6 below

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The 2006-2011 results confirmed the extent and grade of mineralization on the property as indicated by previous drilling and demonstrated continuity of mineralization between the original wide-spaced holes.

The 2006-2011 drilling data supports the presence of three distinct mineralized zones within the deposit. Amax previously interpreted these zones as distinct shells that were produced by separate intrusions. Re-interpretation of the geology, alteration and down-hole histograms for Cu, Ag and Mo have confirmed the mineralized zones are a part of a single, large, concentrically zoned system with an upper Cu-Ag Zone, underlain by a transitional Cu-Mo Zone, in turn underlain by a lower molybdenum-rich Mo Zone (Figure 10-2).

7.5 2012 Drill Program

In 2012, a total of 4,213.3 m (15,463 ft) in nine holes were completed (Table 10-4). The holes were located to infill gaps in the existing drilling coverage and were drilled along existing tracks and roads. All holes were surveyed down-the-hole at regular intervals using a Reflex survey instrument. Co-ordinates, elevations and lengths are in feet.

**Table 7-4: Summary of 2012 diamond drilling**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole** | **Year** | **Easting** | **Northing** | **Elevation** | **Dip** | **Azimuth** | **Length** | **Comment** |
| 12-60 | 2012 | 218422 | 117560 | 6724 | -50 | 180 | 1455 | Completed |
| 12-61 | 2012 | 219911 | 118749 | 6549 | -75 | 335 | 1318 | Stopped |
| 12-62 | 2012 | 218041 | 116866 | 6629 | -50 | 135 | 1484 | Completed |
| 12-63 | 2012 | 218042 | 116867 | 6629 | -60 | 330 | 807 | Completed |
| 12-64 | 2012 | 220811 | 118914 | 6575 | -75 | 25 | 2139 | Completed |
| 12-65 | 2012 | 221118 | 118149 | 6786 | -80 | 315 | 1908 | Completed |
| 12-66 | 2012 | 221688 | 118674 | 6690 | -90 | 0 | 2241 | Completed |
| 12-67 | 2012 | 220811 | 118914 | 6575 | -70 | 340 | 1978 | Completed |
| 12-68 | 2012 | 221746 | 119096 | 6645 | -70 | 310 | 2134 | Completed |

---

A summary of significant intersections for all the CuMo drilling undertaken by CuMoCo is given in Table 10-5 and Table 7-7.

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**Table 7-5: Significant intersections from 2011-2012 CuMo drilling**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole Name** | **From<br> (metres)** | **To<br> (metres)** | **Length<br> (metres)** | **Zone** | **MoS<sub>2<br> </sub> (%)** | **Cu (%)** | **Ag<br> (ppm)** | **Re<br> (ppm)** | **W (ppm)** |
| C11-58 | 213.4 | 574.5 | 361.2 | main | 0.08 | 0.07 | 0.07 | 0.03 | 41 |
| C11-59 | 152.4 | 582.2 | 429.8 | main | 0.07 | 0.13 | 0.13 | 0.02 | 109 |
| C12-60 | 70.1 | 118.9 | 48.8 | main | 0.05 | 0.02 | 0.02 | 0 | 7 |
| C12-61 | 121.9 | 401.4 | 279.5 | main | 0.03 | 0.11 | 0.11 | 0.01 | 28 |
| C12-62 | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit |
| C12-63 | 184.4 | 189 | 4.6 | main | 0 | 0.21 | 130.6 | 0 | 7 |
| C12-64 | 91.4 | 667.5 | 576.1 | main | 0.08 | 0.07 | 1.77 | 0.03 | 47 |
| C12-64 | 301.8 | 573 | 271.3 | Incl. | 0.12 | 0.07 | 1.6 | 0.04 | 59 |
| C12-65 | 167.6 | 478.5 | 310.9 | main | 0.02 | 0.05 | 1.23 | 0.01 | 44 |
| C12-66 | 121.9 | 401.4 | 279.5 | main | 0.02 | 0.06 | 1.58 | 0 | 40 |
| C12-66 | 163.1 | 401.4 | 238.4 | Incl. | 0.02 | 0.07 | 1.69 | 0 | 45 |
| C12-67 | 173.7 | 600.5 | 426.7 | main | 0.1 | 0.09 | 2.11 | 0.04 | 56 |
| C12-67 | 277.4 | 600.5 | 323.1 | Incl. | 0.12 | 0.08 | 1.66 | 0.05 | 61 |
| C12-68 | 277.4 | 548.6 | 271.3 | main | 0.1 | 0.08 | 1.85 | 0.04 | 73 |
| C12-68 | 402.3 | 548.6 | 146.3 | Incl. | 0.13 | 0.07 | 1.77 | 0.06 | 65 |

---

---

| | |
|:---|:---|
| *Note*: | The convention for the CuMo project has been to measure percent elemental molybdenum (%Mo) in assays and to calculate %MoS<sub>2</sub> by multiplying %Mo by 1.6681. |

---

**Table 7-6: Recoverable equivalent grades for significant intersections from 2011-2012 CuMo drilling**

---

| | | | |
|:---|:---|:---|:---|
| **Hole Name** | **Length (metres)** | **RecG\* MoS<sub>2</sub> equiv. (%)** | **RecG\* Cu equiv. (%)** |
| C11-58 | 361.2 | 0.100 | 0.43 |
| C11-59 | 429.8 | 0.125 | 0.54 |
| C12-60 | 48.8 | 0.068 | 0.29 |
| C12-61 | 279.5 | 0.061 | 0.27 |
| C12-62 | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit | No significant intersections: hole drilled away from deposit |
| C12-63 | 4.6 | 0.556 | 2.39 |
| C12-64 | 576.1 | 0.097 | 0.41 |
| C12-64 | 271.3 | 0.130 | 0.56 |
| C12-65 | 310.9 | 0.031 | 0.14 |
| C12-66 | 279.5 | 0.031 | 0.14 |
| C12-66 | 238.4 | 0.034 | 0.15 |
| C12-67 | 426.7 | 0.119 | 0.51 |
| C12-67 | 323.1 | 0.130 | 0.56 |
| C12-68 | 271.3 | 0.112 | 0.48 |
| C12-68 | 146.3 | 0.143 | 0.61 |

---

\* - RecG = Recoverable grades expressed as recoverable equivalent-metal grades (Section 7.6).

*Notes:* These values are NOT additive and are simply different ways of expressing the poly-metallic material in terms of recoverable equivalent grade. Each value reflects all relevant metal grades in the intersections.

The convention for the CuMo project has been to measure percent elemental molybdenum (%Mo) in assays and to calculate %MoS<sub>2</sub> by multiplying %Mo by 1.6681.

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7.6 Metal Equivalent Calculations

Because of the multi-element nature of the mineralization and mineral zoning, it was decided to calculate both a copper and molybdenum equivalent for the intercepts. The following outlines the calculations involved:

Metal equivalents for mineral equivalent calculations were based on metal prices outlined in Table 7-7.

**Table 7-7: Metal prices used to calculate copper and molybdenum equivalent**

---

| | | |
|:---|:---|:---|
| **Metal** | **Price ($US)** | **Unit** |
| Copper | 2.50 | lb |
| Molybdenum trioxide | 10.00 | lb |
| Silver | 0.35 | ppm |

---

Estimated metallurgical recoveries used in the calculations are outlined in Table 7-8.

**Table 7-8: Metallurgical recoveries used to calculate copper and MoS<sub>2</sub> equivalent**

---

| | | | |
|:---|:---|:---|:---|
| **Mineral Zone** | **Mo%** | **Cu%** | **Ag %** |
| OX | 80 | 60 | 70 |
| Cu-Ag | 85 | 68 | 73 |
| Cu-Mo | 92 | 87 | 78 |
| Mo | 95 | 80 | 55 |
| MSI | 95 | 80 | 55 |

---

Recovery (Rec) is taken from the above table for each assay in a particular mineral zone and applied in the following formula to derive the equivalents:

%Cu Equiv. = (%Cu x 20 x $(Cu) x Rec(Cu) + %MoS<sub>2</sub> x 20 x $(MoO<sub>3</sub>) x (1.5/1.6681) x Rec(Mo) +

Ag x $(Ag) x Rec(Ag)) **/** ($(Cu) x Rec(Cu) x 20)

%MoS<sub>2</sub> Equiv. = (%Cu x 20 x $(Cu) x Rec(Cu) + %MoS<sub>2</sub> x 20 x $(MoO<sub>3</sub>) x (1.5/1.6681) x Rec(Mo) +

Ag x $(Ag) x Rec(Ag)) **/** ($(MoO<sub>3</sub>) x Rec(Mo) x 20 x 1.5/1.6681)

Note that since the convention on the CuMo project has been to work with %MoS<sub>2</sub> for resource estimation, in the foregoing equivalency formulae, %MoS2 is converted back to %Mo by dividing by 1.6681. %Mo is then converted to %MoO<sub>3</sub> by multiplying by 1.5. Also, the %MoS<sub>2</sub> Equiv values would be 1.6681 times greater than %Mo Equiv.

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**Table 7-9: Terms used in formulae for equivalent grade calculations**

---

| | |
|:---|:---|
| **Term** | **Definition** |
| %Cu | Copper grade in % |
| $(Cu) | Copper price per pound |
| Rec(Cu) | Copper recovery |
| %MoS<sub>2</sub> | Molybdenum disulfide (molybdenite) grade in % |
| $(MoO<sub>3</sub>) | Molybdenum oxide price per pound |
| Rec(Mo) | Molybdenum recovery |
| Ag | Silver grade in ppm |
| $(Ag) | Silver price per gram |
| Rec(Ag) | Silver Recovery |
| %Cu. Equiv. | Copper equivalent in-situ grade |
| %MoS<sub>2</sub> Equiv. | Molybdenite equivalent in-situ grade |

---

*Note:* Only molybdenum (as grade of MoS<sub>2</sub> and conventional pricing of MoO<sub>3</sub>), copper and silver are used in the equivalent calculations.

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8 Sample Preparation, Analyses, and Security

The QP has reviewed the procedures followed by CuMoCo and by third parties on behalf of CuMoCo, and believes these procedures are consistent with industry best practices and acceptable for use in geological and resource modelling.

8.1 General sampling

Sampling was restricted during 2006 to 2012 to diamond drill hole (DDH) core and metallurgical sampling of previously drilled DDH core. Standard core sampling methods were employed for both drill core and metallurgical samples.

At the time of drilling, each core box was clearly labeled by the driller's helper with the DDH hole number, core box number, and "to" and "from" drill core footages. Wooden core boxes were used at all times, and full core boxes were sealed with a lid. The driller(s) and/or geologist(s) then delivered the core boxes to the secure core storage warehouse located in Garden Valley, Idaho. The core boxes were laid out in sequence upon long tables specifically made for core logging purposes. A geologist then logged the core for lithology, structure, alteration and mineralization. Geotechnical measurements for RQD were recorded. Each core box was additionally labelled using a metal Dymo® labelling tool for long-term preservation of identification. The core was photographed, two boxes at a time, using a mounted Nikon digital camera. It was then delivered to the core-cutting technician. The photographs were downloaded onto computer files specific to each drill hole.

A core technician using a standard rock saw sampled the core using typical procedures. Half-core was collected at regular 10 ft intervals for analysis. Sample lengths were adjusted to lithological contacts in cases where barren dikes were intersected.

Half core sample intervals were placed in ether cloth or heavy plastic sample bags with the sample number placed on the outside of the bag in black permanent marker. Individual sample interval tags were included in each sample bag. The bag was then secured with a wire tie and placed within a plastic transport crate for shipping.

MoS<sub>2</sub> loss from soft fracture fillings being washed away when the core was sawed in half have been noted at CuMo. Although there is no physical way to eliminate this problem at present, other than schooling the technicians on the extra care needed when sawing a soft fracture zone, geologists at CuMo have addressed possible inadvertent contamination of other core from MoS<sub>2</sub> enriched water from the rock saw's water recirculation tank. The cut core was given a second clear water bath prior to being bagged or stored and the recirculation tank was voided and refilled based upon clarity.

The half core was sent for analysis, and the other half was retained and stored at the core storage warehouse in Garden Valley, Idaho. The retained core was replaced in their original core boxes which were sealed with a plywood cover and stacked upon a standard pallet. Each plywood cover was clearly labelled with the core's information. The pallet was then strapped with a metal banding tool and stored within the archive section of the core storage warehouse in Garden Valley, Idaho.

Blanks and standards were inserted into the sample stream at a frequency of one every 20 samples. The core-cutting technician selected the exact intervals and noted them on the sample logs. The core technician inserted the blanks whereas the standards were selected and inserted by the geologist-in-charge.

Standards were selected from three bulk standards (low, medium and high grade) that were prepared from historic CuMo drill core samples. Standards were selected on the basis of appropriate grade to match the estimated grade of the core adjacent to each standard sample interval.

The standards were prepared and packaged by CDN Resource Laboratories Ltd. (CDN Labs) of Surrey, British Columbia. Each bulk sample was pulverized in a large rod mill, screened through 200 mesh using an electric sieve, and homogenized in a large rotating mixer. Each standard was sealed in plastic to prevent gravity separation and oxidation. The standards were certified by Smee & Associates Consulting Ltd. of North Vancouver, British Columbia, based on round-robin analysis at five laboratories using a four-acid digestion and ICP-ES finish (Table 11-1). Note that the Mo ppm values reflect measured Mo metal (not MoS<sub>2</sub>).

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**Table 8-1: Certified standards prepared for CuMo project**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Standard** | **Element** | **Certified Mean** | **Standard Deviation (between lab)** |
| &nbsp;&nbsp;Standard 1 | Total Cu | &nbsp;&nbsp;1138 ppm | &nbsp;&nbsp;65 ppm |
| &nbsp;&nbsp;Standard 1 | Total Mo | &nbsp;&nbsp;367 ppm | &nbsp;&nbsp;19 ppm |
| &nbsp;&nbsp;Standard 2 | Total Cu | &nbsp;&nbsp;151 ppm | &nbsp;&nbsp;8 ppm |
| &nbsp;&nbsp;Standard 2 | Total Mo | &nbsp;&nbsp;995 ppm | &nbsp;&nbsp;41 ppm |
| &nbsp;&nbsp;Standard 3 | Total Cu | &nbsp;&nbsp;840 ppm | &nbsp;&nbsp;35 ppm |
| &nbsp;&nbsp;Standard 3 | Total Mo | &nbsp;&nbsp;54.0 ppm | &nbsp;&nbsp;3.7 ppm |

---

The bagged core samples were string or wire tied and then stored temporarily in holding pallets at the core storage warehouse in Garden Valley. When enough samples were accumulated, the samples were delivered by CuMoCo personnel to ALS-Chemistry (ALS Chemex) in Elko, Nevada for preparation and analysis.

8.2 Density Determinations

Historical specific gravity determinations were made by Amax for CuMo for each mineralized zone. The measurements were made using the weight in air/weight in water procedure by Skyline Laboratories of Colorado. CuMoCo, prior to 2012, had occasional density measurements at ALS-Chemex's lab.

In 2012, CuMoCo initiated a regular density measurement program where 4 to 6-inch skeletons of half-cores from each sample interval that are representative of the 10 ft interval are analyzed. The following equipment was used in the analysis which has been added to the regular core processing routine: 4000 grams (g) Sartorius Extend Series Digital Scale, with hook attachment, stand for scale, bucket distilled water, bricks, computer with MS EXCEL®, 2000 g calibration weight.

The density calculations are as follows:

Weight in air / (Weight in air – Weight in water)

The following data were recorded on the EXCEL® spreadsheet in accordance with the example structure shown in Table 11-2.

**Table 8-2: Density data example**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Hole** | &nbsp;&nbsp;**Sample** | &nbsp;&nbsp;**Dl** | &nbsp;&nbsp;**Mg** | &nbsp;&nbsp;**Ml** | &nbsp;&nbsp;**Ds** | &nbsp;&nbsp;**Diameter** | &nbsp;&nbsp;**Scanner Max** | &nbsp;&nbsp;**Scanner Avg** | &nbsp;&nbsp;**Code** |
| &nbsp;&nbsp;C08-41 | &nbsp;&nbsp;95.5 | &nbsp;&nbsp;1 | &nbsp;&nbsp;396.53 | &nbsp;&nbsp;240.82 | &nbsp;&nbsp;2.55 | &nbsp;&nbsp;16 | &nbsp;&nbsp;0.101 | &nbsp;&nbsp;0.048 | &nbsp;&nbsp;Cu-Ag |

---

The hole number is listed along with the depth of the sample. Dl is the density of the distilled water, Mg is the mass of the sample in air, Ml is the mass of the sample in water, and Ds is the density of the solid. A zone code is also added to identify the mineralized zone of the sample.

A total of 4,339 density measurements were completed on holes C08-41 to C12-68.

An additional density measurement of the bulk sample delivered to SGS was done as part of the metallurgical study, the density obtained by SGS confirmed the earlier density measurements done by Amax.

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Table 11-3 outlines the density values for each of the different mineralized zones plus dykes.

**Table 8-3: Density measurement results summary**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; <br> **Grade Domain Code** | &nbsp;&nbsp;**Density (tonnes per m<sup>3</sup>)** | &nbsp;&nbsp;**Sample Count** |
| OX | &nbsp;&nbsp;2.50 | &nbsp;&nbsp;578 |
| Cu-Ag | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;1496 |
| Cu-Mo | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;1458 |
| Mo | &nbsp;&nbsp;2.57 | &nbsp;&nbsp;638 |
| MSI | &nbsp;&nbsp;2.57 | &nbsp;&nbsp;91 |
| DYKE | &nbsp;&nbsp;2.52 | &nbsp;&nbsp;78 |

---

8.3 Assay Techniques

Samples submitted by Kobex were routinely analyzed by the ALS-Chemex ME-ICP61 procedure code for 39 elements using a four-acid digestion with analysis by Plasma Emission Spectroscopy (ICP-AES).

Samples submitted by CuMoCo were routinely analyzed by ALS-Chemex , an independent ISO 9002 certified laboratory, ME-MS ICP61 procedure code for 47 elements using a four-acid digestion with analysis by Inductively Coupled Plasma Mass Spectrometry (ICP-MS).

Samples submitted by CuMoCo for inter-laboratory check analysis were analyzed by SGS, an independent ISO 9002 and ISO 17025 accredited laboratory, by the SGS ICM40B for 50 elements using a four-acid digestion/ICP-AES and ICP-MS.

The assay methods report the main element results as follows:

● Molybdenum as ppm Mo, which is stored as both ppm Mo metal and molybdenum disulphide (MoS<sub>2</sub>%) in the database to reflect the actual natural material.

● Copper in ppm Cu, which is stored in the database as both ppm and percent copper (Cu%).

● Silver in ppm Ag and stored as ppm, grams/tonne and ounces/ton in the database.

● W in ppm and stored in the database as ppm.

● Rhenium is reported in ppm and stored in the database as ppm.

8.4 Security

A contemporary, well-kept, large steel building was used to warehouse CuMoCo's core, samples, sampling equipment and field office at the CuMo project headquarters in Garden Valley, Idaho. The building is well-lit and insulated with heavy metal doors that have security locks.

The building is located on the property of a nearby landowner and is on a state highway, which local law enforcement regularly patrols. Additionally, a geologist lives on the property for most of the year in an apartment that adjoins the metal building. Core is stored on pallets that are stacked two high and bound by metal strapping. Bagged samples waiting to be shipped are kept in high-walled pallets in a central location within the building.

The area where the samples are kept is well-lit, well ventilated and easy to observe by staff. The floor is reinforced concrete and the walls are steel. There are few windows. CuMoCo personnel are present on a nearly 24-hour basis in season. Off-season, a local watchman lives adjacent to the property and provides security for the building and its contents.

In 2017, all core, rejects and information was moved from Garden Valley to a larger secure warehouse in nearby Horseshoe Bend, which has the same level of security as the one in Garden Valley with the exception that the geologist, as of the date of the current report, no longer lives at the property.

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8.5 QA/QC Programs

8.5.1 Historical Checks

In a June 2005 report (Giroux et. al, 2005), there were six data sets available to verify the original Skyline MoS<sub>2</sub> assay data base (pre-CuMoCo involvement in project). The original Skyline assays were re-assayed by Skyline at three stages of the sampling procedure; from core duplicate samples, from splits of rejects and from splits from pulps. Three inter lab sets of duplicates are also available to compare with the Skyline original assays; a pulp sent to Amax Lab in Climax from diamond drill hole assays, a second split at the drill of reverse circulation drill cuttings and a selected set of samples sent to Hazen Laboratory. The results from all comparisons are presented as scatter plots in Appendix 5 and discussed below.

It should be noted that the convention for the CuMo project has been to measure percent elemental molybdenum (%Mo) in assays and to calculate %MoS<sub>2</sub> by multiplying %Mo by 1.6681. Both %Mo and %MoS<sub>2</sub> are stored in the project's database, and the latter, %MoS<sub>2</sub>, is used in resource estimates and mine planning. Consequently, in the following descriptions, where %MoS<sub>2</sub> grades are compared, these are the calculated MoS<sub>2</sub> grades based on the underlying %Mo assays.

The first set compares 64 original MoS<sub>2</sub> values with duplicate core samples both run at Skyline Laboratory. Figure A5.1 shows a very slight proportional bias indicated with the best fit regression line pulled below the equal value line, but more than likely this is simply a function of the wide random scatter in the data. The correlation coefficient is only 0.7061 indicating the amount of scatter about the best fit regression line seen in Figure A5.1. The average precision of ±78% again points to a high sampling variability between core samples.

A second subset of checks consisted of 25 original Skyline assays compared to re-splits of rejects also run by Skyline. This data set shows a very slight fixed bias with the best fit regression line, seen in Figure A5.2, a constant 0.0011 % MoS<sub>2</sub> below the equal value line. The coefficient of correlation is a very good 0.9666. The average precision of this test is ±20%. This indicates good reproducibility between samples after initial crushing.

A third test was on a total of 408 samples that were reanalyzed by Skyline by taking a second assay from the pulp. This comparison is shown in Figure A5.3. The best fit regression line through the data mirrors the equal value line, indicating no bias. The correlation coefficient is 0.9891. The precision on the estimate is very good at ±23%.

The fourth check on the historic data consisted of a total of 303 sample pulps from diamond drill holes that were analyzed for MoS<sub>2</sub> by both Skyline and Amax. The results are shown in Figure A5.4. There is no bias indicated with the best fit regression line pulled slightly below the equal value line by a single high valued outlier. There appears to be an equal number of samples falling on either side of the equal value line. The correlation coefficient was excellent at 0.9671. The precision which is a measure of the reproducibility of a result by repeated attempts was ±56.5%.

A fifth set of duplicates compared original MoS<sub>2</sub> results to an Amax second split of cuttings in a total of 57 samples from reverse circulation drill holes (see Figure A5.5). This subset shows no apparent bias, with the best fit regression line and equal value line being very close. The correlation coefficient of 0.5989 is lower than previous comparisons and the data shows much more scatter. The average precision is a much higher ±101%. This is a very poor comparison between two laboratories with a large degree of random scatter that is probably more the result of the two splits from the RC cuttings than a comparison of the laboratories.

A final test on Skyline original samples was a set of 10 samples sent to Hazen Research. While this is hardly a representative sample, the results shown in Figure A5.6 show a pronounced proportional bias with the best fit regression line pulled below the equal value line. On average, the original Skyline assays for MoS<sub>2</sub> were 0.70 of the value indicated by Hazen. A total of 8 out of 10 samples returned higher values at Hazen. The correlation coefficient was poor at 0.7281 and the average precision was ±55%.

In general, the results from the first three tests at Skyline showed increasing precision and lower sampling variability from splits of core to splits from rejects to splits from pulps as would be expected. The inter-lab test from diamond drill pulps between Skyline and Amax showed good agreement and no bias. A similar check between Skyline and Amax on two splits from RC cuttings again showed no bias but higher sampling variability. The final limited test of 10 samples comparing original Skyline results with Hazen checks showed a strong bias with Hazen overestimating MoS<sub>2</sub> relative to Skyline.

The sample preparations and analyses done historically were made by a large, professional international mining company, Amax, who ostensibly used professional sampling and assaying laboratories for their samples taken in the project area. There is no reason to suspect any irregularities or question the results of the historic sampling.

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8.5.2 Blanks

During CuMoCo's diamond drill programs blank samples were inserted in the sample stream at or about a 1 in 20 frequency. A total of 431 were analyzed for Mo, Cu, Ag, Re, Ga, W, Fe and S. The results were very good with no anomalies produced. The graphs for MoS<sub>2</sub> (calculated) and Cu are shown in Figure 11-1.

![](ex96-1_017.jpg)

Source: Giroux et al, 2015

 

*Note:* MoS<sub>2</sub> grade is on the y-axis and sample number on x axis

**Figure 8-1: MoS<sub>2</sub> in blank samples from CuMoCo drill programs at CuMo**

![](ex96-1_018.jpg)

Source: Giroux et al, 2015

 

*Note:* Cu grade is on the y-axis and sample number on x axis

**Figure 8-2: Cu in blank samples from 2008 drill program CuMo**

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8.5.3 Internal Lab Standards

The primary laboratory, ALS Chemex, inserted a blank and standard with every batch run during 2008. The policy was that unless the correlation results were excellent the batch was redone. A total of 180 blanks and 346 standard results were provided with the analysis.

8.5.4 Internal Pulp Checks

ALS Chemex also routinely ran duplicate checks on sample pulps. Over the 2007-2012 drill program a total of 143 check samples were run for Mo. Figure 11-3 and Figure 11-4 shows the results are excellent with all but a few samples falling on an equal value line. The best fit regression line mirrors the equal value line.

![](ex96-1_019.jpg)

Source: Giroux et al, 2015

**Figure 8-3: Scatter plot of Chemex internal duplicates for Mo ppm (Mo metal)**

![](ex96-1_020.jpg)

Source: Giroux et al, 2015

**Figure 8-4: Scatter plot of Chemex internal duplicates for Cu ppm**

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8.5.5 CuMoCo Standards

As explained in Section 11.1, CDN Labs prepared a set of standards using drill core from the CuMo property. Results for Standard 1 (see Figure 11-5), the medium grade standard for MoS<sub>2</sub> (calculated) and highest grade for Cu, show results are reasonable with most falling between the mean ± 2.5 standard deviations.

![](ex96-1_021.jpg)

![](ex96-1_022.jpg)

Source: Giroux et al, 2015

**Figure 8-5: Results for Standard S1**

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Results for Standard S2, a higher grade MoS<sub>2</sub> and low grade Cu standard, show reasonable results for Cu and MoS<sub>2</sub> assays (see Figure 11-6) with all falling between the mean ± 2.5 standard deviations.

![](ex96-1_023.jpg)

![](ex96-1_024.jpg)

Source: Giroux et al, 2015

**Figure 8-6: Results for Standard S2**

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The results for Standard S3 are also reasonable with more noise in the analysis, due to the low grade values encountered, but no large variations are observed. See Figure 11-7.

![](ex96-1_025.jpg)

![](ex96-1_026.jpg)

Source: Giroux et al, 2015

**Figure 8-7: Results for Standard S3** 

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8.5.6 Coarse Reject Duplicates

Coarse reject duplicate samples are duplicate samples that are taken after first crushing. At the ALS Chemex Laboratory in Elko, where the diamond drill hole core samples were crushed in the first step in the preparation stage, two duplicate samples were taken for roughly every 20<sup>th</sup> sample being analyzed by splitting the crushed half core. CuMoCo have been taking coarse reject duplicates since 2006. Coarse reject duplicates were submitted to measure the precision of the sample preparation and analysis process. The first duplicate underwent the same analytical procedure as the original sample (ICP-MS61), while the second duplicate was analyzed for molybdenum and copper using x-ray fluorescence (XRF) technique. Doing this confirmed not only the sample variability but variability in analytical techniques.

708 duplicate samples were submitted in between 2008 and 2012, for a submission frequency rate of 1 in 20 samples. The results are presented as a series of scatter plots with all variables reported in ppm and are shown in Appendix 2.

Overall, the results of the CuMoCo coarse crushed duplicates from drill core samples show good precision and no evidence of sampling bias. Silver duplicate analyses tend to show some scatter but are within acceptable tolerance limits. Precision plots yield good results, with an average of 80% of the data plotting within 20% of their respective duplicate samples, whilst an average of 55% of the data plot is within 10%. The results of the field duplicate samples are shown in Appendix 2.

8.6 Survey Validation

In 2007, CuMoCo established a survey control network completed by Geoterra Integrated Resource System Ltd. which included 24 control points surveyed by a licensed legal land surveyor, Shelby H. Griggs of Boise, Idaho. The survey was established using NAD83(1999)(HARN) UTM Zone 11 coordinates and NAVD88 elevations. Points included several drill holes completed before Hole 30. Monument control points were permanently marked with aluminum land survey pins. Future drill holes sites were surveyed using a total GPS station tying into the original survey points. In 2012, Sacré-Davey conducted a re-survey of previous holes and also surveyed 2012 holes and found no discernible difference in older hole locations.

All CuMoCo drill holes (i.e. 2008 and later) were surveyed down-the-hole using a Reflex survey instrument. Holes prior to 2008 were surveyed by either Troparia and/or single shot Sperry Sun survey tools.

The QP examined the survey database, survey reports and data base to confirm data was valid and visited and checked some of the drill sites during a site visit.

8.7 Verification of Drilling Data

Data prior to 2008 was verified and validated by Ausenco who compared and checked the data for errors in the compiled data from the header, survey, assay, geology and geotechnical tables are validated for missing, overlapping or duplicated intervals or sample numbers, and for matching drill hole lengths in each table. Drill hole collars and traces were viewed on plan view and in section as a visual check on the validity of the collar and survey information.

In 2012, Snowden repeated the same process on all data prior to 2012.

9 Data Verification

The section discusses the procedures completed by the author to verify the data. The qualified person has reviewed the procedures used by CuMoCo and produced a description and an analysis of the results as contained in Section 8. These are standard data verifications with no limitations.

All assay results used in the verification process by the qualified person were obtained from fully certified analytical laboratories with signed assay certificates.

The QP has reviewed the data collection and verification procedures followed by CuMoCo and by third parties on behalf of CuMoCo, and believes these procedures are consistent with industry best practices and acceptable for use in geological and resource modelling.

Sections 8.5 through 8.7 describe data verification done by previous qualified persons as well as the current author. These have been subsequently reviewed by the author and determined to be valid in order to demonstrate the validity of the data.

In 2015, the author completed the survey validation steps described in Section 8.7 on the 2012 drilling data and assays and also analyzed the original data set supplied directly from Snowden. The author found no errors in the pre-2012 data and a few minor discrepancies which were corrected in the 2012 data.

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10 Mineral Processing and Metallurgical Testing

Unless otherwise stated, the sub-sections in this section were previously provided in the report, "Summary Report on the CUMO Molybdenum Property, Boise County, Idaho" (Giroux, Dykes, Place, 2015). The primary QP for this section, John Starkey has reviewed the underlying data, analytical work, and technical reports and takes responsibility for this summary. Also, Mr. Starkey re-interpreted comminution test results in terms of kW/t to assess grinding requirements.

Mr. Starkey has added content and has rewritten those parts that require confirmation after the addition of ore sorting to the process.

10.1 Metallurgical Testing (2009, 2015)

10.1.1 Introduction

This sub-section includes some new content for this current PEA.

The test-work undertaken to date is limited, with three composite samples tested for comminution characteristics and preliminary flotation testing to produce bulk copper/molybdenum concentrates. Despite limitations, the existing test-work data are considered suitable for a conceptual study and the comminution data are considered adequate for a preliminary engineering assessment of the grinding circuit design. No copper/molybdenum separation or ferric chloride leaching of molybdenum concentrates has been undertaken to allow determination of final concentrate grades and recoveries achievable into saleable concentrates. Where no test-work data are available, reasonable assumptions, based on typical industry values or data from other similar projects (e.g. Sierrita, and Thompson Creek) have been used to develop the process design criteria used in plant design.

Thompson Creek is a primary molybdenum mine of similar mill feed grade to CuMo, and thus has similar recovery processes. Sierrita is a copper-molybdenum processing operation that produces separate copper and molybdenum concentrates from a bulk concentrate. Both are directly applicable to CuMo. As mentioned, these cover the basis for assumptions for copper/molybdenum separation by flotation, and production of saleable concentrates using more flotation cleaning stages beyond those tested here, that the other operations have in place, and ferric chloride leaching of molybdenite (MoS<sub>2</sub>) flotation concentrate, which follows flotation. This use of typical industry values for copper/molybdenum separation is recommended by John Starkey as a reasonable approach for this PEA.

The CuMo mineralized material is of moderate hardness and is amenable to grinding in a conventional SAG/ball milling circuit with or without pebble crushing. The mineralogy is fine grained and test-work done indicates the requirement for a fine target grind size to achieve adequate liberation for flotation.

Acid Based Accounting testing indicates that the tailings are potentially acid neutralizing (PAN) due to the presence of carbonate and low pyrite content. SGS concludes that "the tailings tested were not acid generating". Further studies are required, but if confirmed, this will lead to significant cost savings in the tailings handling circuit and a major reduction in the environmental impact of the project.

The three composite samples which were tested are labelled for the mineralized zones: Cu-Ag, Cu-Mo and Mo. The Cu-Ag and Cu-Mo labelled composites comprise both the oxide and sulfide parts of the system; oxide is not separated. The Mo composite consists of both Mo and MSI Zones. To arrive at the recoveries for the oxide and MSI Zone from the mixed samples, polished sections were examined, and factors were calculated to reduce the recoveries obtained for the Cu-Ag sample. This is a conservative approach as the inclusion of the lower recovery oxide within the Cu-Ag and Cu-Mo Zones effectively reduces the overall recovery below what could otherwise be expected.

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10.1.2 Sample Selection

CuMoCo began collecting metallurgical samples for grinding and flotation testing in December 2007. One fourth of the core (quarter core) was used from continuous samples of the mineralized zones (an upper copper-silver zone, underlain by a transitional copper-molybdenum zone, in turn underlain by a lower molybdenum-rich zone) from drill holes CO6-27, CO6-28 and CO6-29 and collected as individual 10 ft samples of quarter core selected as representative of the three mineralized zones. Technicians supervised by geological staff collected the samples and prepared them for shipment. A bonded carrier took the samples from Garden Valley, Idaho to Vancouver, British Columbia. The samples were taken to SGS Canada, Kent Corporate Center, Kent Avenue N., Vancouver, British Columbia, for the metallurgical study. The test-work results are detailed in an independent private report entitled "An Investigation into the recovery of molybdenum, copper and silver from CuMo samples prepared for Mosquito Consolidated Gold Mines Ltd. Project 50004-001".

10.1.3 Test-work Program

The flotation and grinding metallurgical test-work program used as the basis for this report consisted of comminution and flotation test-work on three separate metallurgical composites; copper/silver, copper/molybdenum and molybdenum, that were assembled to represent the three known mineralized types in the CuMo deposit at the time of testing. The test-work results are reported in "An Investigation into the recovery of molybdenum, copper and silver from CuMo samples prepared for Mosquito Consolidated Gold Mines Ltd Project 50004-001" (SGS, 2009).

Two main phases of flotation and grinding metallurgical testing were undertaken on the CuMo samples:

● Bench scale comminution testing, consisting of SAG Performance Index (SPI®) and Bond ball mill work index testing

● Bench scale flotation testing consisting of rougher kinetic flotation, cleaner flotation and locked-cycle tests, supplemented with mineralogical examination

**Comminution Test-work Suite**

The current comminution dataset consists of three SPI® and Bond ball mill work index tests, one on each of the composites. Table 13-1 summarizes the outcomes of the comminution laboratory test-work undertaken for this study, the table also shows the selected design case, which typically corresponds to copper/silver. To date, no samples have had SAGDesign Testing, Drop Weight Index Testing (either by the JK Drop Weight Test or SAG Media Competency Test), Bond Crushing Index, Bond Rod Mill Index or Abrasion Index testing. Values for these metrics have been estimated from the available data or from typical values for similar mineralization.

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**Table 10-1: Summary of comminution test-work data**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Comminution Characteristics** |  | &nbsp;&nbsp;**Cu-Ag** | &nbsp;&nbsp;**Cu-Mo** | &nbsp;&nbsp;**Mo** | &nbsp;&nbsp;**Design** |
| &nbsp;&nbsp;Specific Gravity | &nbsp;&nbsp;g/cm³ | &nbsp;&nbsp;2.64 | &nbsp;&nbsp;2.60 | &nbsp;&nbsp;2.60 | &nbsp;&nbsp;2.64 |
| &nbsp;&nbsp;SPI® | &nbsp;&nbsp;min | &nbsp;&nbsp;84.5 | &nbsp;&nbsp;73.0 | &nbsp;&nbsp;70.8 | &nbsp;&nbsp;84.5 |
| &nbsp;&nbsp;SMC DWI | &nbsp;&nbsp;kW/m³ | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;7.4 |
| &nbsp;&nbsp;Crushing work Index | &nbsp;&nbsp;kWh/mt | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;15.8 |
| &nbsp;&nbsp;Bond rod mill work index | &nbsp;&nbsp;kWh/mt | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;15.8 |
| &nbsp;&nbsp;Bond ball mill work index (closing screen 106 pm) | &nbsp;&nbsp;kWh/mt | &nbsp;&nbsp;15.8 | &nbsp;&nbsp;15.7 | &nbsp;&nbsp;12.6 | &nbsp;&nbsp;15.8 |
| &nbsp;&nbsp;Bond Abrasion index |  | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;0.25 |

---

Due to the preliminary status of the test-work and the composite nature of the samples tested, the most competent sample results have been used as the basis for design. It has been assumed that this will provide a similar design point as the 80<sup>th</sup> percentile competency and ensure a robust design. This premise will need to be confirmed through additional testing using SPI tests on geometallurgical samples, and confirmed by SAG Design testing of composite samples, in the next phase of study as more detailed mine schedule information and material comminution characteristics become available.

**Flotation Test-work Results**

Flotation test-work was completed prior to the commencement of the present study, commencing with rougher kinetic flotation testing and culminating with locked cycle testing of the major material types. Only bulk sulfide flotation with multistage cleaning has been undertaken to produce a copper/molybdenum concentrate. No copper/molybdenum separation has been undertaken to date. Analysis of the test-work has been used to develop the plant process design criteria and estimates of concentrate grade, copper, molybdenum and silver recovery.

10.1.4 Conceptual Study Flotation Test-work

The flotation test-work program was divided into three phases: rougher flotation; open circuit cleaner flotation; and locked cycle flotation.

**Rougher Flotation**

Initially, a series of rougher flotation tests were conducted to determine the sensitivity of the material types to grind size and reagent scheme. These tests were supplemented with mineralogical examination by QEM\*SCAN (Quantitative Mineralogy by Scanning Electron Microscopy) to determine fundamental mineral liberation and mineral speciation. These tests indicated the following:

● Copper mineralogy in the Cu-Ag Zone is fine grained and exhibited sensitivity to primary grind size, with highest recovery at a grind size of 80% passing 63 μm. Molybdenum and silver content exhibit little sensitivity to grind size.

● Target elements showed little sensitivity to grind size for the Cu-Mo Zone, with only a slight change in recovery between a grind size of 80% passing 106 and 63 μm for copper, molybdenum and silver.

● The copper and silver minerals in the Mo Zone exhibited significant sensitivity to grind size. Although the sensitivity of molybdenum was lower, the finer grind resulted in an increase in molybdenum recovery.

● Sulfur assays on the concentrates from the Cu-Ag Zone and Cu-Mo Zone indicate the presence of a floatable sulfide gangue mineral; most likely pyrite (no sulfur assays were available for the Mo Zone).

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The results of these tests are summarized in Table 13-2.

**Table 10-2: Baseline flotation results for CuMo composite samples**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Mineral Zone** | &nbsp;&nbsp;**Test No.** | &nbsp;&nbsp;**Feed** | &nbsp;&nbsp;**Feed** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** |
| &nbsp;&nbsp; <br> **Mineral Zone** | &nbsp;&nbsp;**Test No.** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**ppm Mo** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**ppm Ag** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**% Ag** |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;VF1-1 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;213 | &nbsp;&nbsp;1.22 | &nbsp;&nbsp;0.18 | &nbsp;&nbsp;39 | &nbsp;&nbsp;76.5 | &nbsp;&nbsp;87.7 | &nbsp;&nbsp;78 |
|  | &nbsp;&nbsp;VF1-2 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;179 | &nbsp;&nbsp;1.71 | &nbsp;&nbsp;0.27 | &nbsp;&nbsp;53 | &nbsp;&nbsp;58.7 | &nbsp;&nbsp;81.6 | &nbsp;&nbsp;70.3 |
| &nbsp;&nbsp;Cu-Mo | &nbsp;&nbsp;VF2-1 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;435 | &nbsp;&nbsp;2.11 | &nbsp;&nbsp;0.79 | &nbsp;&nbsp;42 | &nbsp;&nbsp;89.7 | &nbsp;&nbsp;92.4 | &nbsp;&nbsp;74 |
|  | &nbsp;&nbsp;VF2-2 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;398 | &nbsp;&nbsp;1.54 | &nbsp;&nbsp;0.61 | &nbsp;&nbsp;36 | &nbsp;&nbsp;89.3 | &nbsp;&nbsp;92.9 | &nbsp;&nbsp;74.5 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;VF3-1 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;1135 | &nbsp;&nbsp;0.47 | &nbsp;&nbsp;1.99 | &nbsp;&nbsp;13 | &nbsp;&nbsp;77 | &nbsp;&nbsp;94.4 | &nbsp;&nbsp;64.4 |
|  | &nbsp;&nbsp;VF3-2 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;1135 | &nbsp;&nbsp;0.44 | &nbsp;&nbsp;1.75 | &nbsp;&nbsp;12 | &nbsp;&nbsp;83.1 | &nbsp;&nbsp;96.9 | &nbsp;&nbsp;71.8 |

---

 

*Note*: to be clear, the grades in this table referring to Mo are all elemental Mo (not MoS<sub>2</sub>).

The tests indicate that the mineralization is amenable to flotation, resulting in good recovery of target mineral species into a low mass concentrate stream. The sensitivity of the mineralization to primary grind size indicates that a fine grind for all the types will be required to ensure good recovery. Additional grind sensitivity test-work should be included in subsequent testing to optimize the mineral recovery with grind size.

**Open Circuit Flotation**

Cleaner flotation was conducted at the finer target primary grind size of 80% passing 63 μm and incorporated a rougher concentrate regrind stage to increase mineral liberation. Varying regrind times and reagent dosages were trialed to determine optimum flotation conditions.

The cleaner flotation reagent scheme was changed from that trialed in the rougher tests; a molybdenum specific activator (Moly Oil) and a copper molybdenum specific collector (Aero 3302). Despite the presence of pyrite, reporting to final concentrate, a non-specific sulfide collector (SIBX) was used for the cleaner flotation testing.

The fine grain structure of the mineralization identified by the QEM\*SCAN testing and the increase in rougher grade and recovery indicated that regrinding of rougher concentrates would be required to achieve adequate concentrate grades. Concentrate regrinding was therefore incorporated in all subsequent cleaner and locked cycle testing. The target regrind size was arbitrarily selected at 90-95% passing 20 μm and achieved by grinding for a set time per test. Multiple stages of cleaning were incorporated to target high concentrate grades, typically with an elevated pH level in the final stage of cleaning. The results from selected optimization tests are summarized in Table 13-3.

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**Table 10-3: Cleaner flotation results for CuMo composite samples**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Mineral Zone** | &nbsp;&nbsp;**Test No.** | &nbsp;&nbsp;**Feed** | &nbsp;&nbsp;**Feed** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** |
| &nbsp;&nbsp; <br> **Mineral Zone** | &nbsp;&nbsp;**Test No.** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**ppm Mo** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**ppm Ag** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**% Ag** |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;VF1-3 | &nbsp;&nbsp;0.14 | &nbsp;&nbsp;176 | &nbsp;&nbsp;19.8 | &nbsp;&nbsp;3.32 | &nbsp;&nbsp;596 | &nbsp;&nbsp;49.6 | &nbsp;&nbsp;68.2 | &nbsp;&nbsp;49 |
|  | &nbsp;&nbsp;VF1-4 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;185 | &nbsp;&nbsp;15.3 | &nbsp;&nbsp;2.3 | &nbsp;&nbsp;462 | &nbsp;&nbsp;64 | &nbsp;&nbsp;81.3 | &nbsp;&nbsp;64.9 |
|  | &nbsp;&nbsp;VF1-5 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;175 | &nbsp;&nbsp;16.4 | &nbsp;&nbsp;2.68 | &nbsp;&nbsp;539 | &nbsp;&nbsp;55.6 | &nbsp;&nbsp;79 | &nbsp;&nbsp;41.2 |
| &nbsp;&nbsp;Cu-Mo | &nbsp;&nbsp;VF2-3 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;392 | &nbsp;&nbsp;18 | &nbsp;&nbsp;6.31 | &nbsp;&nbsp;344 | &nbsp;&nbsp;85.5 | &nbsp;&nbsp;93.7 | &nbsp;&nbsp;76.8 |
|  | &nbsp;&nbsp;VF2-4 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;416 | &nbsp;&nbsp;17.3 | &nbsp;&nbsp;6.53 | &nbsp;&nbsp;354 | &nbsp;&nbsp;81.8 | &nbsp;&nbsp;92.6 | &nbsp;&nbsp;74.8 |
|  | &nbsp;&nbsp;VF2-5 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;315 | &nbsp;&nbsp;16.6 | &nbsp;&nbsp;4.88 | &nbsp;&nbsp;365 | &nbsp;&nbsp;85.4 | &nbsp;&nbsp;90.4 | &nbsp;&nbsp;70.3 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;VF3-3 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;1048 | &nbsp;&nbsp;5.9 | &nbsp;&nbsp;24.4 | &nbsp;&nbsp;151 | &nbsp;&nbsp;79.6 | &nbsp;&nbsp;95.9 | &nbsp;&nbsp;52.2 |
|  | &nbsp;&nbsp;VF3-4 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;1025 | &nbsp;&nbsp;6.1 | &nbsp;&nbsp;24.8 | &nbsp;&nbsp;150 | &nbsp;&nbsp;79.8 | &nbsp;&nbsp;95.8 | &nbsp;&nbsp;50.7 |
|  | &nbsp;&nbsp;VF3-5 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;958 | &nbsp;&nbsp;5.7 | &nbsp;&nbsp;21.3 | &nbsp;&nbsp;168 | &nbsp;&nbsp;79.8 | &nbsp;&nbsp;95.3 | &nbsp;&nbsp;56.2 |

---

 

*Note*: to be clear, the grades in this table referring to Mo are all elemental Mo (not MoS<sub>2</sub>).

The concentrate grades achieved in the majority of these tests indicate the presence of significant levels of diluents in the final concentrate. The absence of mineralogy or sulfur assays on the final concentrates makes determination of the nature of these diluents difficult to determine. However, the most likely explanation for this is the presence of floatable pyrite in the mineralization that has not been depressed in the flotation circuit and is reporting to final concentrate. This issue will require further evaluation and testing during subsequent studies.

Following the completion of the open circuit cleaner flotation test-work phase, a locked cycle test was conducted on each of the major types. This phase was aimed at testing the best flow sheet conditions in a locked cycle test to determine the closed-circuit grade recovery performance of each of the types for project evaluation.

**Locked Cycle Test-work at Design Conditions**

Flotation results from the optimization test-work highlighted the benefit of fine regrinding and multiple stages of concentrate cleaning on improving concentrate grade. A flow sheet incorporating rougher concentrate regrinding and multiple stages of cleaning, similar to that from the open circuit cleaner testing was selected for the conceptual study. To test the flow sheet performance on all types, a series of locked cycle tests was conducted.

Locked cycle tests are used to determine the effects of recycling intermediate streams, like scavenger concentrates, on the overall grade recovery performance of the type. By retaining these streams and combining them with concentrates from a subsequent flotation test, an assessment can be made of the overall performance from a full-scale plant operation.

Locked cycle tests were undertaken for the main mineralized zones and the results are summarized in Table 13-4.

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**Table 10-4: Locked cycle test results**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Mineralized Zone** | &nbsp;&nbsp;**Test No.** | &nbsp;&nbsp;**Feed** | &nbsp;&nbsp;**Feed** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate grade** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** |
| &nbsp;&nbsp; <br> **Mineralized Zone** | &nbsp;&nbsp;**Test No.** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**ppm Mo** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**ppm Ag** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**% Ag** |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;VF1-LCT1 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;190 | &nbsp;&nbsp;13 | &nbsp;&nbsp;2 | &nbsp;&nbsp;357 | &nbsp;&nbsp;62.5 | &nbsp;&nbsp;82 | &nbsp;&nbsp;71.7 |
| &nbsp;&nbsp;Cu-Mo | &nbsp;&nbsp;VF2-LCT1 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;401 | &nbsp;&nbsp;16.4 | &nbsp;&nbsp;5.66 | &nbsp;&nbsp;324 | &nbsp;&nbsp;90.7 | &nbsp;&nbsp;93.8 | &nbsp;&nbsp;80 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;VF3-LCT1 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;1065 | &nbsp;&nbsp;5.1 | &nbsp;&nbsp;21.6 | &nbsp;&nbsp;122 | &nbsp;&nbsp;71.6 | &nbsp;&nbsp;99.6 | &nbsp;&nbsp;59.3 |

---

 

*Note*: to be clear, the grades in this table referring to Mo are all elemental Mo (not MoS<sub>2</sub>).

Analysis of these results indicate that recoveries of target minerals are acceptable and are generally in line with those achieved in the open circuit cleaner testing. However, the final concentrate grades are again lower than required to produce saleable concentrates after copper/molybdenum separation. Additional test-work will be required to determine the nature of the concentrate diluents and ways to maximize their rejection whilst maintaining target recoveries.

**Tungsten Recovery**

This sub-section was added for this current PEA.

SGS 2009 conducted a preliminary tungsten separation test on rougher tailing of the lock cycle test of Composite 3. The test consisted of feeding the rougher tailings to a Falcon Concentrator whose concentrate was upgraded on a Mozley table. The results of the test are as shown in Table 13-5.

**Table 10-5: Tungsten recovery test results**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Stream** | &nbsp;&nbsp;**Wt%** | &nbsp;&nbsp;**WO<sub>3</sub> - %** | &nbsp;&nbsp;**WO<sub>3</sub> - %** |
| &nbsp;&nbsp; <br> **Stream** | &nbsp;&nbsp;**Wt%** | &nbsp;&nbsp;**Assay** | &nbsp;&nbsp;**Distribution** |
| &nbsp;&nbsp;Mozley Concentrate | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;4.61 | &nbsp;&nbsp;26.34 |
| &nbsp;&nbsp;Falcon Concentrate | &nbsp;&nbsp;2.85 | &nbsp;&nbsp;0.093 | &nbsp;&nbsp;40.55 |
| &nbsp;&nbsp;Calculated Feed | &nbsp;&nbsp;100 | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;100.00 |

---

Source: SGS 2009

The sample used in the test, Composite 3, is from the Mo Zone which has the lowest grade of tungsten compared to the other zones. The average grade of tungsten for the Mo Zone is 21 ppm, while the Cu-Ag Zone has an average of 34 ppm, and the Cu-Mo Zone has an average of 41 ppm.

However, the SGS report states that as before (for the other two composites), the tungsten grades were too low for reliable assaying (of the tungsten values).

Based on the SGS report, the possibility to recover tungsten in an economic process has not yet been established.

10.1.5 Grade and Recovery Predictions

This sub-section includes some new content for this current PEA.

Analysis of the locked cycle tests has been undertaken to determine flotation performance predictions. The design recoveries of the target metals are generally in line with or slightly lower than those achieved in the locked cycle tests suggesting a degree of conservatism in the selected recoveries. The numbers were selected as generally being lower than the actual test-work values with the exception of the Cu-Ag Zone, as this sample consisted of both oxidized and non-oxidized material.

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Analysis of the locked cycle tests has been undertaken to determine flotation performance predictions. The design recoveries of the target metals are generally in line with or slightly lower than those achieved in the locked cycle tests suggesting a degree of conservatism in the selected recoveries. The numbers were selected as generally being lower than the actual test-work values with the exception of the Cu-Ag Zone, as this sample consisted of both oxidized and non-oxidized material.

A review of the specified recoveries indicates that they are reasonable for a bulk concentrate from the CuMo mineralized zones. However, the concentrate grades achieved directly from the current tests do not reflect those required to achieve saleable concentrates and have been adjusted for the plant design and preliminary economic evaluation on the assumption that additional test-work will confirm and further optimize flotation metallurgy, allowing higher concentrate grades to be achieved with minimal impact on recovery.

It should be noted that the SGS (2009) report concludes the following in regard to saleable concentrates from the tests:

**In the case of the Cu-Ag Zone sample:** *"However, the upgrading ratios indicate that a saleable grade of Cu concentrate can be made from this composite." (page 6)*

 

**In the case of the Cu-Mo Zone sample:** *"The upgrading ratios assured that saleable Cu and Mo concentrates can be made by added cleaning stages." (page 7)* 

**And finally in the case of the Mo Zone sample:** *"The upgrading ratios indicate that Cu and Mo concentrates of saleable grades can be made by added cleaning stages." (page 8)* 

 

These assertions support the general assumptions with respect to concentrate grades and process design details and will be required when advanced level studies are done on the project in the future.

In order to derive a process design and capital and operating cost estimate, it has been assumed that a selective molybdenum flotation phase with copper depression, followed by a ferric chloride leach on the molybdenum concentrate to remove residual copper, is required. The design and grade recovery performance of these process units have been estimated from operating and test-work data from other similar studies and operating plants. These include Las Pelambres, Andina, Collahuasi, Gibraltar and Sierrita to developing projects (2009) such as Pebble, Prosperity and Mirador. All these have or have examined copper-molybdenum separation circuits.

The recoveries of target metals into their respective concentrates have been reduced to reflect metal misreporting during the separation stages. The final concentrator recoveries that have been assumed for the PEA of CuMo are shown in Table 13-5. These figures include bulk concentrate recovery, copper/molybdenum flotation separation and ferric chloride leach recovery.

**Table 10-6: Grade/recovery predictions for CuMo**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> **Material Type**  | &nbsp;&nbsp;**Concentrate** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** | &nbsp;&nbsp;**Concentrate Recovery** |
| &nbsp;&nbsp; <br> **Material Type**  | &nbsp;&nbsp;**Concentrate** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**% Cu** | &nbsp;&nbsp;**% Mo** | &nbsp;&nbsp;**% Ag** |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;Molybdenum | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;52 | &nbsp;&nbsp;0.02 | &nbsp;&nbsp;83 |  |
|  | &nbsp;&nbsp;Copper | &nbsp;&nbsp;19 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;64 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;70 |
| &nbsp;&nbsp;Cu-Mo | &nbsp;&nbsp;Molybdenum | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;51 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;92 |  |
|  | &nbsp;&nbsp;Copper | &nbsp;&nbsp;22 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;85 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;78 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Molybdenum | &nbsp;&nbsp;0.02 | &nbsp;&nbsp;49 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;95 |  |
|  | &nbsp;&nbsp;Copper | &nbsp;&nbsp;20 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;72 | &nbsp;&nbsp;1 | &nbsp;&nbsp;55 |

---

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Note that the recovery predictions shown in Table 13-6 for Cu-Ag Zone material were based on samples that also contained oxide material. Segregation of this oxide material results in the adjusted and slightly higher recovery predictions for non-oxide material referenced elsewhere in this report (Table 14-13).

In addition to the primary elements listed, the study also analyzed the final concentrate from the lock cycle tests for gallium, osmium and rhenium, while the rougher tails were analyzed for Gallium. Rhenium was the only metal present in quantities above detection limit returning values of 0.9 ppm, 2.9 ppm and 15 ppm respectively in the molybdenum concentrates from the three material types.

No test work was completed to determine the actual recovery of rhenium and Sulphuric acid during the roasting process, though there are no indications that it cannot be achieved based on current technology and existing roasters. This test work is recommended for the next stage of development for this project.

10.2 Mineral Sorting

The following sections provide original text for the current PEA

13.2.1 Particle Sorting

The opportunity for preconcentration using sensor-based sorting was evaluated in 2015 where Sacré-Davey conducted a preliminary investigation with 100 rock samples from the deposit. The purpose of this test was to get an indication of the sample response to various sensors. Since this test showed a potential for preconcentration, a second set of testing was done with an XRF device using 400 samples. The initial study was completed in November 2016.

Samples from quarter core were used from continuous samples of the four mineralized zones; The samples assembled were selected to represent the four known non oxide mineralized zones in the CuMo deposit, namely: Cu-Ag, Cu-Mo, Mo and MSI. A total of 400 random samples of 1-5" size were sent and tested at the Coal and Mineral Processing Laboratory at the University of British Columbia. The samples were cleaned with high-pressure air and then scanned on the XRF device, followed by the EM device. Testing was initially conducted under the supervision of Brent Hilscher from Sacré-Davey. Following that, the samples were sent to MetSolve Laboratories Inc. for Cu and Mo assays.

Heterogeneity assessments of the Cu and Mo grade analysis were conducted based on the assay results to confirm initial confidence in the potential application of mineral sorting. Next, correlation studies between the assay result and sensor-based result were carried out upon observation of the provided rock samples. The outcome of the studies was then used in building several economic models to demonstrate the benefit for mineral sorting. Finally, John Starkey examined the assays, scanning records and previous reports to confirm that there was a basis for what is stated herein.

The purpose of the particle sorting study was to understand the deposit's amenability to mineral sorting. The study conducted was a scoping level preliminary evaluation to understand the possible opportunity. Detailed bulk sample test-work would be necessary to accurately measure the impact on the potential project economics.

The study demonstrated that there is significant variability in the deposit providing an opportunity to reject the low-grade rocks and upgrade the accepted mass. The sensors also showed positive response for upgrading the mill feed; however, due to the low concentration of Cu and Mo, further testing and validation is necessary.

The interpreted results are presented in Figure 13-1. This shows the recovery of Mo and Cu as a function of sorting mass pull. The sorting mass pull is the cumulative RCV percent of test samples from highest RCV to lowest, based on the XRF measurements of Cu and Mo.

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![](ex96-1_027.jpg)

Source: SRK, 2019

**Figure 10-1: Particle sort XRF test results**

Further testing and studies will be required at the pre-feasibility and feasibility stages to capture representative samples and the impact of the sorter on individual mineralized zones. The particle sort study was conducted to understand the deposit's heterogeneity on a rock-by-rock basis. Due to the large production rates of the project, a combination of bulk and particle sorting may be more suitable.

Mineral sorting products have not yet been tested for changes in the work index or flotation recovery. After sorting, most base metals operations experience an improvement in both the grinding specific energy and flotation recovery. These changes will be quantified as part of future studies.

13.2.2 Bulk Sorting

The success of the particle sorting test program, combined with recognition that currently available particle sorting technology on its own would not be able to handle the processing rates envisioned for CuMo, prompted further investigation into the viability of bulk sorting.

SRK undertook a heterogeneity study of the CuMo deposit by analyzing exploration drill hole data. Two approaches were undertaken:

● Observing the effect of measurement scale on different heterogeneity parameters

● Assessing the relationship between bench composite grades and sample grades that make up those composites

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**The following sections discuss the results of these assessments.**

**Heterogeneity and Scale**

SRK developed an approach to assess how mineral deposit heterogeneity is influenced by observation or sampling scale. It involves the analysis of exploration drill core data, to see the impact of varying aggregation lengths on key parameters, including most notably assay grades. In polymetallic deposits, NSR or equivalent is used (RCV in the case of CuMo).

For CuMo, SRK assessed the main mineralized zones – oxide, Cu-Ag, Cu-Mo, and Mo. The drill holes were de-surveyed and sample intervals were assessed in the vertical direction – a proxy for mining bench height. Intervals were combined over increasing aggregation lengths, up to a maximum of 100 ft. Statistics and comparative analyses were run on the resulting aggregations. Select results are presented in Figure 13-2 and Figure 13-3.

One way to look at the impact of scale on heterogeneity is to calculate the distribution heterogeneity for different aggregation lengths. Distribution heterogeneity for a dimensionless lot (Pitard, 1993) was used here. It is a unitless parameter relating mass and grade (or NSR) of a group (aggregation) to the overall population or lot. It is apparent in Figure 13-2 that for all mineralized zones at CuMo, there is a decrease in heterogeneity with increasing scale. The OX zone was the most affected, and the Mo Zone was the least impacted by increases in scale.

![](ex96-1_028.jpg)

Source: SRK, 2019

**Figure 10-2: Impact of scale on distribution heterogeneity**

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Source: SRK, 2019

**Figure 10-3: Impact of scale on "Waste in Ore" ratio**

Figure 13-3 provides another measure of heterogeneity that the author finds very informative. It is "Waste in Ore2F<sup>[4]</sup>", which compares sample intervals that are below a cut-off but are still within aggregations whose average grades are above the cut-off. Figure 13-3 shows that increasing aggregation length results in increasing % waste in above cut-off material and that such increases happen quickly. They happen within the mining scale (e.g. 50 ft benches), but then largely flatten off for longer aggregation lengths. This suggests there may be benefits to selectively mining or processing material at smaller scales in order to reject waste that is inherent in a mineral deposit.

The main findings of this analysis for CuMo are that heterogeneity diminishes with increasing scale (or conversely, it increases with decreasing scale) and that the different mineralized zones at CuMo exhibit differing heterogeneity characteristics. Whilst this is generally accepted for all such analysis, notably in this case, significant change in heterogeneity for several zones occurred at around the scale of the mining bench dimensions and potentially smaller selective mining unit dimensions, raising the possibility of benefits from more selective in-pit pre-selection or bulk mineral sorting.

**Composite-Sample Relationship**

The other technique for assessing heterogeneity from drill holes interrogates the composite-sample relationship inherent in drill hole data. For this, the author developed bench composites of all the drill holes, based on an expected 50 ft bench height. Then, the RCV of the composites were calculated from the samples falling within the composites. For CuMo, RCV is determined as the product of the price and the mill recovery for the metal of interest. It is calculated for each of the mineralized zones in the deposit (see Section 11.9).

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The resulting relationship can be plotted as the number of samples versus the sample interval grade (RCV) for each of multiple bench composite RCV ranges. This relationship is referred to as the "composite-sample relationship".

![](ex96-1_030.jpg)

Source: SRK, 2019

**Figure 10-4: CuMo composite-sample relationship**

Figure 13-4 shows the composite-sample relationship for select composite RCV ranges. These ranges are set with $2.50/t increments and within each range the sample interval RCVs are counted in $1.00/t bins.

A red vertical line has been drawn at the $10/t RCV point, approximating the cut-off NSR for CuMo. Only six of the composite RCV ranges are shown – three on either side of $10/t RCV.

There are two important observations of the composite-sample relationship for CuMo:

● Composite RCV ranges below the $10 cut-off ($2.50-5.00; $5.00-7.00; $7.50-10.00), which should all be waste, have sample intervals within them that are above the $10 cut-off. This is more pronounced for composite ranges nearer the cut-off.

● Composite RCV ranges above the $10 cut-off ($10.00-12.50; $12.50-$15.00; $15.00-17.50), which should all be selected as above cut-off mill feed, have sample intervals within them that are below the $10 cut-off. Again, this is more pronounced for composite ranges nearer the cut-off. There tends to be more "waste in above-cut-off material" than "above cut-off material in waste" in general and as one moves away from the cut-off.

These observations effectively point to the opportunity for mineral sorting, if one can segregate material at the sample interval scale (or smaller, per the conclusion of the heterogeneity and scale analysis), one can remove waste from the mill feed and recover valued mineralized material from what would be otherwise waste.

SRK used these composite-sample relationships to test the impact of using different cut-offs to segregate different fractions of potential mill feed in a bulk sorting context. This is discussed further in Section 16.2.2.

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11 Mineral Resource Estimates

11.1 Introduction

In 2015 at the request of CuMoCo, Giroux Consultants Ltd. was retained to produce a resource estimate on the CuMo project in Southern Idaho. A total of 68 drill holes covering the various mineralized zones were provided. While the Cu-Mo-Ag-W resource was estimated in April 2015, the effective date for this estimate is August 30, 2018, when estimates for Re and S were completed.

G.H. Giroux was the qualified person responsible for the resource estimate. Mr. Giroux is a qualified person by virtue of education, experience and membership in a professional association. He is independent of CuMoCo applying all of the tests in section 1.5 of National Instrument 43-101. Mr. Giroux visited the property, reviewing drill core and drill sites, on June 2, 2015.

This 2015 CuMo resource estimate represents an update of the 2012 estimate by Snowden Mining Industry Consultants (Jones, et al) and the 2009 resource estimate (Holmgren and Giroux), based on an additional 11 new diamond drill holes completed in 2011-2012.

The mineral resources estimated may ultimately be affected by a broad range of environmental, permitting, socio-economic (as discussed in Section 17), legal, title (as discussed in Section 3), marketing and political factors (as discussed in Section 22). At this time the authors are unaware of any of these factors that could materially affect the mineral resource estimate. Of course, going forward, relevant factors that could influence the resource estimate include changes to the geological, geotechnical or geometallurgical models, infill drilling to convert mineral resources to a higher classification, drilling to test for extensions to known resources, collection of additional bulk density data and significant changes to commodity prices. It should be noted that all these factors pose potential risk and opportunities to the current mineral resource.

11.2 Data Analysis

A total of 65 DDHs and three RC drill holes, over a combined total of 121,280 ft, were provided with 1,001 downhole surveys and 10,456 assays for Mo and Cu. For this resource estimation, the three RC holes were not used (see Appendix 3 for a list of drill holes used in the estimate), leaving only the 65 diamond drill holes as being used. For the 65 diamond drill holes used, the total length was 36,165.7 m (118,654 ft)

The provided data was checked for sample overlaps, gaps in sample intervals and assays within allowable intervals. No errors were found.

The basic assay statistics for DDHs are presented below in Table 14-1

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**Table 11-1: Summary of MoS<sub>2</sub> and Cu contents**

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**MoS<sub>2</sub> (%)** | &nbsp;&nbsp;**Cu (%)** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;10456 | &nbsp;&nbsp;10456 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.053 | &nbsp;&nbsp;0.077 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.058 | &nbsp;&nbsp;0.069 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;1.09 | &nbsp;&nbsp;0.920 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;1.09 | &nbsp;&nbsp;0.89 |

---

 

*Note*: MoS<sub>2</sub> here is calculated from the assays for Mo by multiplying by 1.6681.

The molybdenum and copper mineralization at CuMo lies in four distinct mineral zones with an oxidized layer on top. More or less from top to bottom there occurs in most drill holes an oxide zone, a Cu-Ag Zone, a Cu-Mo Zone and a Mo Zone. Within one fault block, the Cu-Ag Zone is missing, and the oxide sits on top of the Cu-Mo Zone. These zones are underlain by a potassic-silica zone with lower grade copper and molybdenum material called the MSI Zone. While the oxide zone has been modeled for metallurgical reasons, it has been combined with the Cu-Ag Zone or in a few cases the Cu-Mo Zone for estimation purposes. While no test-work has been completed on the oxide zone at this time, experience with other such deposits indicates that metal recoveries tend to be lower in oxidized zones as compared to primary zones and as a result it was modelled separately, and a lower recovery was applied. This is a conservative approach and will be useful for future work.

Contact plots for each variable in Figure 14-1 show there is no difference in average grade across the oxide – Cu-Ag Zone contact. There are also several post mineral dykes that are large enough and continuous enough to be modeled. The Cu and MoS<sub>2</sub> grade statistics are shown in Table 14-2, sorted by zone. Silver and tungsten assays are shown in Table 14-3 for the same mineral zones. Values for MoS<sub>2</sub> and Cu reported as 0.000 were assigned values of 0.0005% and 0.001%, respectively. Silver values reported as 0.000 were set to 0.01 ppm while tungsten values reported as 0.000 were set to 0.1 ppm.

**Table 11-2: Summary of assay statistics for Cu and MoS<sub>2</sub> sorted by zone**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** |
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;3813 | &nbsp;&nbsp;3813 | &nbsp;&nbsp;3509 | &nbsp;&nbsp;3509 | &nbsp;&nbsp;2677 | &nbsp;&nbsp;2677 | &nbsp;&nbsp;330 | &nbsp;&nbsp;330 | &nbsp;&nbsp;128 | &nbsp;&nbsp;128 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.017 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;0.049 | &nbsp;&nbsp;0.103 | &nbsp;&nbsp;0.113 | &nbsp;&nbsp;0.053 | &nbsp;&nbsp;0.057 | &nbsp;&nbsp;0.028 | &nbsp;&nbsp;0.005 | &nbsp;&nbsp;0.016 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.019 | &nbsp;&nbsp;0.074 | &nbsp;&nbsp;0.045 | &nbsp;&nbsp;0.072 | &nbsp;&nbsp;0.066 | &nbsp;&nbsp;0.042 | &nbsp;&nbsp;0.029 | &nbsp;&nbsp;0.038 | &nbsp;&nbsp;0.014 | &nbsp;&nbsp;0.038 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0010 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.315 | &nbsp;&nbsp;0.77 | &nbsp;&nbsp;1.09 | &nbsp;&nbsp;0.92 | &nbsp;&nbsp;0.99 | &nbsp;&nbsp;0.59 | &nbsp;&nbsp;0.17 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.13 | &nbsp;&nbsp;0.18 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;1.15 | &nbsp;&nbsp;0.97 | &nbsp;&nbsp;0.92 | &nbsp;&nbsp;0.70 | &nbsp;&nbsp;0.58 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.51 | &nbsp;&nbsp;1.34 | &nbsp;&nbsp;2.62 | &nbsp;&nbsp;2.36 |

---

*Note*: MoS<sub>2</sub> here is calculated from the assays for Mo by multiplying by 1.6681.

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![](ex96-1_031.jpg)

Source: CuMoCo 2015

**Figure 11-1: Contact plots for oxide-Cu-Ag Zone contact**

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**Table 11-3: Summary of assay statistics for Ag and W sorted by zone**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** |
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;3806 | &nbsp;&nbsp;3791 | &nbsp;&nbsp;3492 | &nbsp;&nbsp;3497 | &nbsp;&nbsp;2653 | &nbsp;&nbsp;2654 | &nbsp;&nbsp;327 | &nbsp;&nbsp;330 | &nbsp;&nbsp;128 | &nbsp;&nbsp;121 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;2.88 | &nbsp;&nbsp;32.3 | &nbsp;&nbsp;3.07 | &nbsp;&nbsp;46.7 | &nbsp;&nbsp;1.78 | &nbsp;&nbsp;45.9 | &nbsp;&nbsp;1.65 | &nbsp;&nbsp;37.1 | &nbsp;&nbsp;0.62 | &nbsp;&nbsp;9.8 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;16.28 | &nbsp;&nbsp;108.9 | &nbsp;&nbsp;13.35 | &nbsp;&nbsp;33.8 | &nbsp;&nbsp;9.81 | &nbsp;&nbsp;38.3 | &nbsp;&nbsp;10.39 | &nbsp;&nbsp;109.3 | &nbsp;&nbsp;1.23 | &nbsp;&nbsp;11.9 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;3.3 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;838.0 | &nbsp;&nbsp;5400 | &nbsp;&nbsp;744.0 | &nbsp;&nbsp;470.0 | &nbsp;&nbsp;494.0 | &nbsp;&nbsp;890.0 | &nbsp;&nbsp;182.0 | &nbsp;&nbsp;1980 | &nbsp;&nbsp;8.6 | &nbsp;&nbsp;65.0 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;5.65 | &nbsp;&nbsp;3.37 | &nbsp;&nbsp;4.35 | &nbsp;&nbsp;0.72 | &nbsp;&nbsp;5.51 | &nbsp;&nbsp;0.83 | &nbsp;&nbsp;6.28 | &nbsp;&nbsp;2.95 | &nbsp;&nbsp;1.99 | &nbsp;&nbsp;1.21 |

---

To determine if capping was required and if so, at what level, the distribution of grades for each variable within each mineralized zone was examined using lognormal cumulative frequency plots. In all cases, multiple overlapping lognormal populations were present. Cap levels were set to minimize the effects of a small number of erratic outliers.

A similar strategy was applied to Cu, Ag and W. The capping levels for each variable are shown in Table 11-4, Table 11-5, and Table 11-6.

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**Table 11-4: Summary of capping levels by mineralized zone**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Domain** | &nbsp;&nbsp;**Variable** | &nbsp;&nbsp;**Cap Level** | &nbsp;&nbsp;**Number Capped** |
| &nbsp;&nbsp;Cu-Ag Zone | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;0.16% | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Cu-Mo Zone | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;0.40% | &nbsp;&nbsp;2 |
| &nbsp;&nbsp;Mo Zone | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;0.48% | &nbsp;&nbsp;7 |
| &nbsp;&nbsp;MSI Zone | &nbsp;&nbsp;MoS<sub>2</sub> |  | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Dykes | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;0.05% | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Cu-Ag Zone | &nbsp;&nbsp;Cu | &nbsp;&nbsp;0.83% | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Cu-Mo Zone | &nbsp;&nbsp;Cu | &nbsp;&nbsp;0.62% | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Mo Zones | &nbsp;&nbsp;Cu | &nbsp;&nbsp;0.27% | &nbsp;&nbsp;6 |
| &nbsp;&nbsp;MSI Zones | &nbsp;&nbsp;Cu |  | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Dykes | &nbsp;&nbsp;Cu | &nbsp;&nbsp;0.15% | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Cu-Ag Zone | &nbsp;&nbsp;Ag | &nbsp;&nbsp;115 ppm | &nbsp;&nbsp;6 |
| &nbsp;&nbsp;Cu-Mo Zone | &nbsp;&nbsp;Ag | &nbsp;&nbsp;102 ppm | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Mo Zone | &nbsp;&nbsp;Ag | &nbsp;&nbsp;24 ppm | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;MSI Zone | &nbsp;&nbsp;Ag | &nbsp;&nbsp;8 ppm | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Dykes | &nbsp;&nbsp;Ag | &nbsp;&nbsp;4.0 ppm | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Cu-Ag Zone | &nbsp;&nbsp;W | &nbsp;&nbsp;452 ppm | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;Cu-Mo Zone | &nbsp;&nbsp;W | &nbsp;&nbsp;277 ppm | &nbsp;&nbsp;6 |
| &nbsp;&nbsp;Mo Zone | &nbsp;&nbsp;W | &nbsp;&nbsp;275 ppm | &nbsp;&nbsp;6 |
| &nbsp;&nbsp;MSI Zone | &nbsp;&nbsp;W | &nbsp;&nbsp;118 ppm | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Dykes | &nbsp;&nbsp;W |  | &nbsp;&nbsp;0 |

---

The results from capping are tabulated below with some significant reductions in the coefficient of variation for some variables.

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**Table 11-5: Summary of capped assay statistics for Cu and MoS<sub>2</sub> sorted by zone**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** |
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;3813 | &nbsp;&nbsp;3813 | &nbsp;&nbsp;3509 | &nbsp;&nbsp;3509 | &nbsp;&nbsp;2677 | &nbsp;&nbsp;2677 | &nbsp;&nbsp;330 | &nbsp;&nbsp;330 | &nbsp;&nbsp;128 | &nbsp;&nbsp;128 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.017 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;0.049 | &nbsp;&nbsp;0.103 | &nbsp;&nbsp;0.112 | &nbsp;&nbsp;0.053 | &nbsp;&nbsp;0.057 | &nbsp;&nbsp;0.028 | &nbsp;&nbsp;0.005 | &nbsp;&nbsp;0.016 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.018 | &nbsp;&nbsp;0.074 | &nbsp;&nbsp;0.040 | &nbsp;&nbsp;0.070 | &nbsp;&nbsp;0.063 | &nbsp;&nbsp;0.041 | &nbsp;&nbsp;0.029 | &nbsp;&nbsp;0.038 | &nbsp;&nbsp;0.009 | &nbsp;&nbsp;0.036 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0010 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.0005 | &nbsp;&nbsp;0.001 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;0.77 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.62 | &nbsp;&nbsp;0.48 | &nbsp;&nbsp;0.27 | &nbsp;&nbsp;0.17 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;1.10 | &nbsp;&nbsp;0.97 | &nbsp;&nbsp;0.83 | &nbsp;&nbsp;0.68 | &nbsp;&nbsp;0.56 | &nbsp;&nbsp;0.78 | &nbsp;&nbsp;0.51 | &nbsp;&nbsp;1.34 | &nbsp;&nbsp;2.04 | &nbsp;&nbsp;2.31 |

---

*Note*: MoS<sub>2</sub> here is calculated from the assays for Mo by multiplying by 1.6681.

**Table 11-6: Summary of capped assay statistics for Ag and W sorted by zone**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu–Ag Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** |
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **W**<br> **(ppm)** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;3806 | &nbsp;&nbsp;3791 | &nbsp;&nbsp;3492 | &nbsp;&nbsp;3497 | &nbsp;&nbsp;2653 | &nbsp;&nbsp;2654 | &nbsp;&nbsp;327 | &nbsp;&nbsp;330 | &nbsp;&nbsp;128 | &nbsp;&nbsp;121 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;2.56 | &nbsp;&nbsp;29.8 | &nbsp;&nbsp;2.88 | &nbsp;&nbsp;46.4 | &nbsp;&nbsp;1.58 | &nbsp;&nbsp;45.5 | &nbsp;&nbsp;0.99 | &nbsp;&nbsp;31.3 | &nbsp;&nbsp;0.57 | &nbsp;&nbsp;9.8 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;5.82 | &nbsp;&nbsp;32.4 | &nbsp;&nbsp;4.63 | &nbsp;&nbsp;31.7 | &nbsp;&nbsp;1.78 | &nbsp;&nbsp;32.8 | &nbsp;&nbsp;1.28 | &nbsp;&nbsp;20.7 | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;11.9 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;3.3 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;115.0 | &nbsp;&nbsp;452.0 | &nbsp;&nbsp;102.0 | &nbsp;&nbsp;277.0 | &nbsp;&nbsp;24.0 | &nbsp;&nbsp;275.0 | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;118.0 | &nbsp;&nbsp;4.00 | &nbsp;&nbsp;65.0 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;2.27 | &nbsp;&nbsp;1.09 | &nbsp;&nbsp;1.61 | &nbsp;&nbsp;0.68 | &nbsp;&nbsp;1.13 | &nbsp;&nbsp;0.72 | &nbsp;&nbsp;1.29 | &nbsp;&nbsp;0.66 | &nbsp;&nbsp;1.75 | &nbsp;&nbsp;1.21 |

---

11.3 50-Foot Composites

The bulk of the historic drill holes (1969 to 1982) were assayed on 10 or 20 ft intervals while those assayed by CuMoCo (2006-2012) were assayed on 10 ft intervals. A 50 ft composite length was chosen to match a reasonable mining bench for this scale of deposit. This differs from the 2012 resource estimate where a 20 ft composite was used. The statistics for 50 ft composites are shown in Table 14-7 Samples coded as oxide were combined with Cu-Ag composites for estimation purposes.

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**Table 11-7: Summary of 50 ft composite statistics**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**MoS<sub>2</sub> (%)** | &nbsp;&nbsp;**Cu (%)** | &nbsp;&nbsp;**Ag (ppm)** | &nbsp;&nbsp;**W (ppm)** |
| &nbsp;&nbsp;**Cu-Ag Zone** | &nbsp;&nbsp;**Cu-Ag Zone** | &nbsp;&nbsp;**Cu-Ag Zone** | &nbsp;&nbsp;**Cu-Ag Zone** | &nbsp;&nbsp;**Cu-Ag Zone** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;810 | &nbsp;&nbsp;810 | &nbsp;&nbsp;810 | &nbsp;&nbsp;807 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.016 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;2.68 | &nbsp;&nbsp;29.8 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.013 | &nbsp;&nbsp;0.062 | &nbsp;&nbsp;4.77 | &nbsp;&nbsp;28.1 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.1 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.101 | &nbsp;&nbsp;0.432 | &nbsp;&nbsp;92.39 | &nbsp;&nbsp;365.1 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.82 | &nbsp;&nbsp;1.78 | &nbsp;&nbsp;0.94 |
| &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** | &nbsp;&nbsp;**Cu-Mo Zone** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;813 | &nbsp;&nbsp;813 | &nbsp;&nbsp;808 | &nbsp;&nbsp;810 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.048 | &nbsp;&nbsp;0.103 | &nbsp;&nbsp;2.88 | &nbsp;&nbsp;45.8 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.027 | &nbsp;&nbsp;0.057 | &nbsp;&nbsp;2.81 | &nbsp;&nbsp;23.4 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;0.22 | &nbsp;&nbsp;5.4 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.226 | &nbsp;&nbsp;0.366 | &nbsp;&nbsp;42.50 | &nbsp;&nbsp;190.6 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;0.56 | &nbsp;&nbsp;0.55 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;0.51 |
| &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** | &nbsp;&nbsp;**Mo Zone** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;639 | &nbsp;&nbsp;639 | &nbsp;&nbsp;631 | &nbsp;&nbsp;631 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.112 | &nbsp;&nbsp;0.053 | &nbsp;&nbsp;1.64 | &nbsp;&nbsp;46.7 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.046 | &nbsp;&nbsp;0.037 | &nbsp;&nbsp;1.27 | &nbsp;&nbsp;24.1 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.016 | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;10.0 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.302 | &nbsp;&nbsp;0.218 | &nbsp;&nbsp;10.68 | &nbsp;&nbsp;160.0 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;0.41 | &nbsp;&nbsp;0.69 | &nbsp;&nbsp;0.77 | &nbsp;&nbsp;0.52 |
| &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** | &nbsp;&nbsp;**MSI Zone** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;81 | &nbsp;&nbsp;81 | &nbsp;&nbsp;80 | &nbsp;&nbsp;81 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.056 | &nbsp;&nbsp;0.027 | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;31.8 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.023 | &nbsp;&nbsp;0.037 | &nbsp;&nbsp;1.08 | &nbsp;&nbsp;16.7 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;0.002 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;6.4 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.104 | &nbsp;&nbsp;0.150 | &nbsp;&nbsp;5.00 | &nbsp;&nbsp;101.7 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;0.42 | &nbsp;&nbsp;1.35 | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;0.53 |
| &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** | &nbsp;&nbsp;**Dykes** |
| &nbsp;&nbsp;Number | &nbsp;&nbsp;37 | &nbsp;&nbsp;37 | &nbsp;&nbsp;37 | &nbsp;&nbsp;35 |
| &nbsp;&nbsp;Mean | &nbsp;&nbsp;0.004 | &nbsp;&nbsp;0.014 | &nbsp;&nbsp;0.55 | &nbsp;&nbsp;10.5 |
| &nbsp;&nbsp;Standard Deviation | &nbsp;&nbsp;0.005 | &nbsp;&nbsp;0.026 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;12.1 |
| &nbsp;&nbsp;Minimum | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;1.5 |
| &nbsp;&nbsp;Maximum | &nbsp;&nbsp;0.019 | &nbsp;&nbsp;0.082 | &nbsp;&nbsp;3.00 | &nbsp;&nbsp;60.0 |
| &nbsp;&nbsp;Coefficient of Variation | &nbsp;&nbsp;1.40 | &nbsp;&nbsp;1.90 | &nbsp;&nbsp;1.46 | &nbsp;&nbsp;1.16 |

---

 

*Note*: %MoS<sub>2</sub> statistics here are derived from assay grades calculated by multiplying %Mo by 1.6681.

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11.4 Variography

For variogram analysis, the composite data was adjusted to accommodate post mineral faulting. Fault blocks were moved back to pre-fault locations based on marker beds displaced across fault boundaries. Semi-variograms were produced using these pre-fault locations. For estimation, the original locations of composites were used.

Pairwise, relative semi-variograms were used to determine grade continuity for MoS<sub>2</sub>, Cu, Ag and W in 50 ft composites. Nested spherical models were fit to all directions with the model parameters tabulated below and the models shown in Appendix 4.

**Table 11-8: Parameters for semi-variogram models at CuMo**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Variable** | **Domains** | **Direction** | **C0** | **C1** | **C2** | **Short Range**<br> **(ft)** | **Long Range**<br> **(ft)** |
| MoS<sub>2</sub> | Cu-Mo and Mo Zone | Az 60 Dip 0 | 0.06 | 0.12 | 0.12 | 200 | 1800 |
| MoS<sub>2</sub> | Cu-Mo and Mo Zone | Az 330 Dip -35 | 0.06 | 0.12 | 0.12 | 400 | 500 |
| MoS<sub>2</sub> | Cu-Mo and Mo Zone | Az 150 Dip -55 | 0.06 | 0.12 | 0.12 | 300 | 1300 |
| MoS<sub>2</sub> | Cu-Ag Zone | Az 0 Dip 0 | 0.16 | 0.16 | 0.20 | 200 | 1200 |
| MoS<sub>2</sub> | Cu-Ag Zone | Az 270 Dip 0 | 0.16 | 0.16 | 0.20 | 200 | 400 |
| MoS<sub>2</sub> | Cu-Ag Zone | Az 0 Dip -90 | 0.16 | 0.16 | 0.20 | 400 | 800 |
| Cu | Cu-Ag and<br> Cu-Mo Zone | Az 60 Dip 0 | 0.08 | 0.08 | 0.10 | 250 | 1600 |
| Cu | Cu-Ag and<br> Cu-Mo Zone | Az 330 Dip -35 | 0.08 | 0.08 | 0.10 | 500 | 700 |
| Cu | Cu-Ag and<br> Cu-Mo Zone | Az 150 Dip -55 | 0.08 | 0.08 | 0.10 | 300 | 1600 |
| Cu | Mo Zone | Az 60 Dip 0 | 0.05 | 0.15 | 0.15 | 400 | 1200 |
| Cu | Mo Zone | Az 330 Dip 0 | 0.05 | 0.15 | 0.15 | 300 | 400 |
| Cu | Mo Zone | Az 0 Dip -90 | 0.05 | 0.15 | 0.15 | 300 | 500 |
| Ag | Cu-Ag and Cu-Mo Zone | Az 70 Dip 0 | 0.12 | 0.05 | 0.09 | 200 | 1000 |
| Ag | Cu-Ag and Cu-Mo Zone | Az 340 Dip 0 | 0.12 | 0.05 | 0.09 | 50 | 200 |
| Ag | Cu-Ag and Cu-Mo Zone | Az 0 Dip -90 | 0.12 | 0.05 | 0.09 | 120 | 500 |
| Ag | Mo Zone | Az 60 Dip 0 | 0.06 | 0.15 | 0.14 | 300 | 1200 |
| Ag | Mo Zone | Az 330 Dip 0 | 0.06 | 0.15 | 0.14 | 300 | 500 |
| Ag | Mo Zone | Az 0 Dip -90 | 0.06 | 0.15 | 0.14 | 450 | 700 |
| W | Cu-Mo and Mo Zone | Az 0 Dip 0 | .06 | .02 | 0.15 | 150 | 1000 |
| W | Cu-Mo and Mo Zone | Az 270 Dip 0 | .06 | .02 | 0.15 | 50 | 500 |
| W | Cu-Mo and Mo Zone | Az 0 Dip -90 | .06 | .02 | 0.15 | 100 | 800 |
| W | Cu-Ag Zone | Az 30 Dip 0 | 0.08 | 0.11 | 0.17 | 160 | 1100 |
| W | Cu-Ag Zone | Az 300 Dip 0 | 0.08 | 0.11 | 0.17 | 200 | 1200 |
| W | Cu-Ag Zone | Az 0 Dip -90 | 0.08 | 0.11 | 0.17 | 300 | 400 |

---

There were insufficient composites within the MSI Zone to model so the models for the Mo Zone were applied to estimate this zone.

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11.5 Block Model and Grade Estimation

A block model with blocks 50 x 50 x 50 ft in dimension was superimposed over the mineralized zones with the proportion of each block below surface topography and within the various mineralized solids recorded. The block model origin was as follows:

Lower Left Corner

● 214,600 E Column Size – 50 ft 207 Columns

● 114,250 N Row Size – 50 ft 179 Rows

Top of Model

● 7075 Elevation Level Size – 50 ft 76 Levels

The grades for the four variables namely: MoS<sub>2</sub>, Cu, Ag and W were interpolated into each block containing some proportion of mineralized solid by ordinary kriging. Kriging was completed for each variable separately within two mineralized zones. A combination of soft and hard boundaries was used to estimate MoS<sub>2</sub>, Cu, Ag and W to reflect the metal zonation present at the CuMo deposit.

**Table 11-9: Estimation boundary summary**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Mineral/Metal** | &nbsp;&nbsp;**Estimation Boundary Information** |
| &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;Estimated for Cu-Ag Zone using only composites from Cu-Ag and oxide zones |
| &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;Estimated for Cu-Mo and Mo Zones using only composites from Cu-Mo and Mo Zones |
| &nbsp;&nbsp;Cu | &nbsp;&nbsp;Estimated for Mo Zone using only composites from Mo Zone |
| &nbsp;&nbsp;Cu | &nbsp;&nbsp;Estimated for Cu-Ag and Cu-Mo Zones using only composites from Cu-Ag, Cu-Mo and oxide Zones |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;Estimated for Mo Zone using only composites from Mo Zone |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;Estimated for Cu-Ag and Cu-Mo Zone using only composites from Cu-Ag, Cu-Mo and Oxide Zone |
| &nbsp;&nbsp;W | &nbsp;&nbsp;Estimated for Cu-Ag Zone using only composites from Cu-Ag and Oxide Zones |
| &nbsp;&nbsp;W | &nbsp;&nbsp;Estimated for Cu-Mo and Mo Zones using only composites from Cu-Mo and Mo Zones |

---

Each kriging run was composed of four passes. The dimensions for the search ellipse, within each pass, were a function of the semi-variogram ranges. Pass 1 required a minimum of four composites within a search ellipsoid with dimensions equal to one quarter of the semi-variogram range for each direction. For blocks not estimated, the search ellipse was expanded to half the semi-variogram range in Pass 2 and again a minimum of four composites were required to estimate the block. Pass 3 expanded the search ellipse to the entire range, and a final fourth pass used double the range. In all cases, the maximum number of composites from a single hole was set to three to ensure that a minimum of two drill holes were used in each estimate. The maximum number of composites used was set to 16, and if more than 16 composites were found, the closest 16 were used. The search parameters for each run are listed below in Table 14-10. Pass 4 for Ag and W used larger search ellipses to produce a value for all blocks estimated for MoS<sub>2</sub> and Cu. This was due to the under-sampling of Ag and W relative to Mo and Cu.

A grade for each of the four variables was estimated in a total of 734,490 blocks.

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**Table 11-10: Summary of kriging search parameters for each mineralized zone**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Domain** | &nbsp;&nbsp;**Variable** | &nbsp;&nbsp;**Pass** | &nbsp;&nbsp; **Number**<br> **Of Blocks**<br> **Estimated** | &nbsp;&nbsp;**Az/Dip** | &nbsp;&nbsp; **Dist. (ft)**<br>| &nbsp;&nbsp;**Az/Dip** | &nbsp;&nbsp; **Dist. (ft)**<br>| &nbsp;&nbsp;**Az/Dip** | &nbsp;&nbsp;**Dist. (ft)** |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;1 | &nbsp;&nbsp;4614 | &nbsp;&nbsp;0 /0 | &nbsp;&nbsp;300 | &nbsp;&nbsp;270 / 0 | &nbsp;&nbsp;100 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;2 | &nbsp;&nbsp;26207 | &nbsp;&nbsp;0 /0 | &nbsp;&nbsp;600 | &nbsp;&nbsp;270 / 0 | &nbsp;&nbsp;200 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;400 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;3 | &nbsp;&nbsp;83342 | &nbsp;&nbsp;0 /0 | &nbsp;&nbsp;1200 | &nbsp;&nbsp;270 / 0 | &nbsp;&nbsp;400 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;800 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;4 | &nbsp;&nbsp;252646 | &nbsp;&nbsp;0 /0 | &nbsp;&nbsp;2400 | &nbsp;&nbsp;270 / 0 | &nbsp;&nbsp;800 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;1600 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;1 | &nbsp;&nbsp;35447 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;450 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;325 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;125 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;2 | &nbsp;&nbsp;110887 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;900 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;650 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;250 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;3 | &nbsp;&nbsp;121147 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;1800 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;1300 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;500 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;MoS<sub>2</sub> | &nbsp;&nbsp;4 | &nbsp;&nbsp;59784 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;3600 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;2600 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;1000 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;1 | &nbsp;&nbsp;50852 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;400 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;175 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;400 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;2 | &nbsp;&nbsp;128958 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;800 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;350 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;800 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;3 | &nbsp;&nbsp;235739 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;1600 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;700 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;1600 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;4 | &nbsp;&nbsp;139891 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;3200 | &nbsp;&nbsp;150 / -55 | &nbsp;&nbsp;1400 | &nbsp;&nbsp;330 / -35 | &nbsp;&nbsp;3200 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;1 | &nbsp;&nbsp;1789 |  | &nbsp;&nbsp; 300 |  | &nbsp;&nbsp;100 |  | &nbsp;&nbsp;125 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;2 | &nbsp;&nbsp;22307 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;600 | &nbsp;&nbsp;330 / 0 | &nbsp;&nbsp;200 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;250 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;3 | &nbsp;&nbsp;58857 |  | &nbsp;&nbsp;1200 |  | &nbsp;&nbsp;400 |  | &nbsp;&nbsp;500 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Cu | &nbsp;&nbsp;4 | &nbsp;&nbsp;80068 |  | &nbsp;&nbsp;2400 |  | &nbsp;&nbsp;800 |  | &nbsp;&nbsp;1000 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;1 | &nbsp;&nbsp;1859 |  | &nbsp;&nbsp;250 |  | &nbsp;&nbsp;50 |  | &nbsp;&nbsp;125 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;2 | &nbsp;&nbsp;18305 | &nbsp;&nbsp;70 / 0 | &nbsp;&nbsp;500 | &nbsp;&nbsp;340 / 0 | &nbsp;&nbsp;100 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;250 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;3 | &nbsp;&nbsp;94108 |  | &nbsp;&nbsp;1000 |  | &nbsp;&nbsp;200 |  | &nbsp;&nbsp;500 |
| &nbsp;&nbsp;Cu-Ag & Cu-Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;4 | &nbsp;&nbsp;441174 |  | &nbsp;&nbsp;2000 |  | &nbsp;&nbsp;400 |  | &nbsp;&nbsp;1000 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;1 | &nbsp;&nbsp;3067 |  | &nbsp;&nbsp;300 |  | &nbsp;&nbsp;125 |  | &nbsp;&nbsp;175 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;2 | &nbsp;&nbsp;31146 |  | &nbsp;&nbsp;600 |  | &nbsp;&nbsp;250 |  | &nbsp;&nbsp;350 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;3 | &nbsp;&nbsp;63317 | &nbsp;&nbsp;60 / 0 | &nbsp;&nbsp;1200 | &nbsp;&nbsp;330 / 0 | &nbsp;&nbsp;500 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;700 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;Ag | &nbsp;&nbsp;4 | &nbsp;&nbsp;65491 |  | &nbsp;&nbsp;2400 |  | &nbsp;&nbsp;1000 |  | &nbsp;&nbsp;1400 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;W | &nbsp;&nbsp;1 | &nbsp;&nbsp;14288 |  | &nbsp;&nbsp;275 |  | &nbsp;&nbsp;300 |  | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;W | &nbsp;&nbsp;2 | &nbsp;&nbsp;51953 | &nbsp;&nbsp;30 / 0 | &nbsp;&nbsp;550 | &nbsp;&nbsp;300 / 0 | &nbsp;&nbsp;600 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;W | &nbsp;&nbsp;3 | &nbsp;&nbsp;122565 |  | &nbsp;&nbsp;1100 |  | &nbsp;&nbsp;1200 |  | &nbsp;&nbsp;400 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;W | &nbsp;&nbsp;4 | &nbsp;&nbsp;179224 |  | &nbsp;&nbsp;2200 |  | &nbsp;&nbsp;2400 |  | &nbsp;&nbsp;800 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;W | &nbsp;&nbsp;1 | &nbsp;&nbsp;4799 |  | &nbsp;&nbsp;250 |  | &nbsp;&nbsp;125 |  | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;W | &nbsp;&nbsp;2 | &nbsp;&nbsp;59057 | &nbsp;&nbsp;0 / 0 | &nbsp;&nbsp;500 | &nbsp;&nbsp;270 / 0 | &nbsp;&nbsp;250 | &nbsp;&nbsp;0 / -90 | &nbsp;&nbsp;400 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;W | &nbsp;&nbsp;3 | &nbsp;&nbsp;130570 |  | &nbsp;&nbsp;1000 |  | &nbsp;&nbsp;500 |  | &nbsp;&nbsp;800 |
| &nbsp;&nbsp;Cu-Mo & Mo | &nbsp;&nbsp;W | &nbsp;&nbsp;4 | &nbsp;&nbsp;144312 |  | &nbsp;&nbsp;2000 |  | &nbsp;&nbsp;1000 |  | &nbsp;&nbsp;1600 |

---

*Note:* Distances shown in the table represent one quarter (Pass 1), one half (Pass 2), full (Pass 3) and twice (Pass 4) the semi-variogram range in the three principal directions.

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Rhenium and sulfuric acid are credits received by the project during the roasting process at a roaster controlled by the project. A roaster and sulfur recovery plant have been built into the capital cost section of this report. Rhenium and sulfuric acid are contained solely within the molybdenite (MoS<sub>2</sub>) – rhenium as an impurity within the molybdenite (MoS<sub>2</sub>) structure, and sulfuric acid is produced from sulfur when the MoS<sub>2</sub> is converted to MoO<sub>3</sub>. Due to the irregular nature of impurities and the sulfur content within the molybdenum, these cannot be estimated in blocks by kriging. Instead statistical linear regressions were applied to 7,485 analyses related to rhenium content in the molybdenite (MoS<sub>2</sub>) within the various geological domains (mineralized zones) to determine the actual amount of these products produced. The results of the statistical linear regression are lower and more conservative than the rhenium recovery reported by SGS (2009).

Scatter plots were produced for each mineralized zone, plotting Re and S against MoS<sub>2,</sub> and from these, a linear regression equation was used to estimate the amount of Re (ppm) and S (%) present on a block by block basis (see Figure 14-2 for an example plot showing Re vs MoS<sub>2</sub> in Cu-Mo Zone).

Source: Giroux et al , 2015

**Figure 11-2: Scatter plot showing Re vs MoS<sub>2</sub> in the Cu-Mo Zone**

For blocks containing more than one mineralized zone, a weighted average was produced. The two commodities are considered not as by-products of a producing mine but as smelter/processing credits from the concentrates. Smelter credits and penalties are common within the mining industry and in many cases, the credit or penalty element is not contained in the current resources or reserves of a project. The author has included the commodities to provide full disclosure as circuits to recover and produce these products are built into capital and operating costs. Re and S values have not been used to determine the RCV of blocks. The contribution of these commodities to the overall economic analyses is small and well within the accuracy of the PEA level of study, with rhenium contributing 0.37% of the overall revenue and sulfuric acid 0.49%. Rhenium is of special interest to the development of the property as it is now on a list of minerals that are critical to the USA.

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**Note:** Regression analysis is not industry standard practice in calculating overall resources. However, the fact that rhenium and sulfur are contained almost entirely within the material containing MoS<sub>2</sub>, which has been estimated by kriging, means that regression is a valid method of obtaining a reasonable estimate of the rhenium and sulfur contents at the level of precision of this study. Due to the large number of samples involved in the regression analysis, the confidence of this particular regression estimate is comparable to that obtained by the method of ordinary kriging.

11.6 Bulk Density

A total of 4,539 specific gravity determinations were made for CuMo in all mineralized zones. This total includes 4,339 determinations made during the 2011 drill program. The measurements were made using the weight in air/weight in water procedure. The results are summarized in Table 14-11.

**Table 11-11: Summary of density parameters for each mineralized zone**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Zone** | &nbsp;&nbsp; **Number of**<br> **SG Determinations** | &nbsp;&nbsp; **SG**<br> **Minimum** | &nbsp;&nbsp; **SG**<br> **Maximum** | &nbsp;&nbsp; **Average**<br> **SG (gm/cc)** | &nbsp;&nbsp; **Average**<br> **TF (cu.ft/ton)** |
| &nbsp;&nbsp;Ox | &nbsp;&nbsp;578 | &nbsp;&nbsp;2.08 | &nbsp;&nbsp;2.74 | &nbsp;&nbsp;2.50 | &nbsp;&nbsp;12.80 |
| &nbsp;&nbsp;Cu-Ag | &nbsp;&nbsp;1505 | &nbsp;&nbsp;2.28 | &nbsp;&nbsp;3.70 | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;12.42 |
| &nbsp;&nbsp;Cu-Mo | &nbsp;&nbsp;1524 | &nbsp;&nbsp;2.25 | &nbsp;&nbsp;2.85 | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;12.40 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;763 | &nbsp;&nbsp;2.30 | &nbsp;&nbsp;2.75 | &nbsp;&nbsp;2.57 | &nbsp;&nbsp;12.45 |
| &nbsp;&nbsp;Msi | &nbsp;&nbsp;91 | &nbsp;&nbsp;2.40 | &nbsp;&nbsp;2.73 | &nbsp;&nbsp;2.57 | &nbsp;&nbsp;12.48 |
| &nbsp;&nbsp;Dyke | &nbsp;&nbsp;78 | &nbsp;&nbsp;2.19 | &nbsp;&nbsp;2.75 | &nbsp;&nbsp;2.52 | &nbsp;&nbsp;12.71 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**4539** | &nbsp;&nbsp;**2.08** | &nbsp;&nbsp;**3.70** | &nbsp;&nbsp;**2.57** |  |

---

The tonnage factor for each block was a weighted average based on the mineralized zone's tonnage factor and the amount of that zone within the block.

11.7 Reasonable Prospects of Eventual Economic Extraction

Reasonable prospects of eventual economic extraction have been established by constraining the resource estimate to within a conceptual open pit design using reasonable parameters from an analogous nearby molybdenum deposit. An RCV in non-oxide material of $5.00/t has been highlighted as a possible open pit cut-off based on similar size mines at a feasibility or production stage. In the mineral resource tables at the end of this section, the $5.00 cut-off for the assumed price is highlighted and is selected based on operating costs. The $5.00 cut-off is suggested to separate waste from material that is fed to the sorters. From the sorters, only mill feed above an economic cut-off would be sent for immediate processing.

In 2012, Snowden used Geovia's Whittle<sup>TM</sup> pit optimizer to determine a constraining open pit for the CuMo deposit. Optimization parameters were from the Thompson Creek mine (a comparable open pit molybdenum project located in Idaho). The optimization parameters included mill feed mining and processing costs of $7.52 per processed ton, overall pit slope angles of 45°, metallurgical recoveries as shown in Table 14-12 and appropriate dilution and offsite costs and royalties. The metal prices used in 2012 by Snowden for pit optimization were Mo at $25/lb, Cu at $3/lb, Ag at $20/oz and W at $10/lb.

Since the infill drill holes completed in 2011-12 were all within this conceptual pit this resource update uses the Snowden 2012 optimum pit shell to both constrain the estimate and demonstrate reasonable prospects of eventual economic extraction.

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11.8 Resource Classification

At CuMo, geological continuity has been established through diamond drilling. The concentric zonation and faults have been used to constrain the mineralization in a series of mineralized zones. Grade continuity within the mineralized zones has been determined by semi-variograms for each variable.

Semi-variograms are an aspect of data analysis that assist in defining the correlation and range of influence of a grade variable in various directions in three dimensions. Semi-variograms are a graphical geostatistical tool used to determine the direction and range over which samples show continuity. The semi-variogram plots the mean squared difference between samples as an increasing function of distance between samples, and as the distance between samples increases, it reaches a point (the range) where samples are no longer correlated.

In this case, the semi-variogram analysis was completed after moving major fault blocks back to pre-fault positions. The kriging procedure was completed on fault blocks in their current positions; thus by using the range in each of the major directions, the grade continuity can be quantified. This in turn can be used to establish classification levels.

The resource is classified in accordance with the 2014 CIM Definition Standards.

**Measured**

*"Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation."* 

Contiguous blocks within the Cu-Ag and Cu-Mo Zones estimated in Pass 1 (using one quarter of the semi-variogram range) for both MoS<sub>2</sub> and Cu were classified as measured. For the Mo and MSI Zones where Cu, Ag and W provide little of the economic benefit contiguous blocks estimated in Pass 1 for MoS<sub>2 </sub>were classified as measured.

**Indicated**

*"Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation."* 

Indicated blocks were established from unclassified blocks estimated for Cu or MoS<sub>2</sub> in Pass 1 or 2 using search ellipses up to a maximum of one half the semi-variogram range.

**Inferred**

All other blocks were classified as inferred.

An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.

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The author in classifying the mineral resource into the three different categories has examined the characteristics of the mineralization and associated reports and preliminary data and information concerning mining, metallurgy, economics and social and environmental sensitivity and has determined that the classification meets the requirement of reasonable prospects of eventual economic extraction in regard to this PEA study.

Specifically, it must be noted that metallurgical tests to separate a combined Cu-Mo concentrate into separate saleable concentrates have yet to be completed. However, SGS 2009, as outlined in section 13.1.5, indicates that there is no reason that separate saleable copper and molybdenum concentrates cannot be produced. In addition, based on similar operations at Las Pelambres, Andina, Collahuasi, Gibraltar and Sierrita, there is no reason to indicate that this concentrate separation cannot be produced with additional metallurgical testing prior to a pre-feasibility study. Given this information, the author is confident that the metallurgical work would allow the application of modifying factors to support future detailed mine planning and the final evaluation of the economic viability of the deposit.

Figure 14-3 shows indicative plan views of the measured, indicated and inferred blocks at CuMo.

Note: As with the 2015 resource estimate, the current resource is constrained within the 2012 Snowden pit. Figure 10-1, Figure 10-2 and Figure 10-3 show the outline of the 2012 Snowden constraining pit, and a projection of categorized blocks.

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Source: Giroux et al , 2015, modified 2019

*Note:* The above shows all blocks estimated. The outline of the 2012 Snowden constraining pit has been added. The blocks within this constraining pit are summarized in the various tables.

**Figure 11-3: Plan views of the measured, indicated and inferred blocks at CuMo**

11.9 Recovered Value

To properly evaluate the CuMo deposit with four metals occurring in different zones, A factor named recovered value, or RCV, was used. This calculation used metal prices in US dollars and metal recoveries.

The RCV calculations were based on the set of prices defined in Table 14-13.

**Table 11-12: Metal prices for resources**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Metal** | &nbsp;&nbsp;**Price** |
| &nbsp;&nbsp;Copper (Cu), $/lb | &nbsp;&nbsp;3.00 |
| &nbsp;&nbsp;Molybdenum trioxide (MoO<sub>3</sub>), $/lb | &nbsp;&nbsp;10.00 |
| &nbsp;&nbsp;Molybdenum Metal (Mo), $/lb | &nbsp;&nbsp;15.00 |
| &nbsp;&nbsp;Silver (Ag), $/ounce | &nbsp;&nbsp;12.50 |

---

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Molybdenum is sold as molybdenum trioxide (MoO3) which has higher Mo content. The price used in this study for MoO<sub>3</sub> is $10/lb. MoO<sub>3 </sub>is calculated from MoS<sub>2</sub> by the following:

● Pounds Mo = MoS<sub>2 </sub>\* 20 / 1.6681

● Pounds MoO<sub>3 </sub>= Pounds Mo \* 1.5

The metal recoveries used to calculate RCV were a function of mineralized zones as follows:

**Table 11-13: Metal recoveries sorted by mineralized zone**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Metal** | &nbsp;&nbsp; **%Recoveries**<br> **in Oxides** | &nbsp;&nbsp;**%Recoveries in Cu-Ag Zone** | &nbsp;&nbsp;**%Recoveries in Cu-Mo Zone** | &nbsp;&nbsp;**%Recoveries in Mo & MSI Zones** |
| &nbsp;&nbsp;Cu | &nbsp;&nbsp;60.0 | &nbsp;&nbsp;68.0 | &nbsp;&nbsp;85.0 | &nbsp;&nbsp;72.0 |
| &nbsp;&nbsp;Mo | &nbsp;&nbsp;80.0 | &nbsp;&nbsp;86.0 | &nbsp;&nbsp;92.0 | &nbsp;&nbsp;95.0 |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;78.0 | &nbsp;&nbsp;55.0 |

---

 

*Note:* The recoveries for all metals in the MSI Zone were similar to the Mo Zone

Factors to use in RCV equation were as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;MoS<sub>2 </sub>Factor ($/ton) = | &nbsp;&nbsp;MoS<sub>2 </sub>% \* Mo Recovery % \* 2000 lbs/ton \* $/lb MoO<sub>3</sub> \* 1.5/1.6881 |
| &nbsp;&nbsp;Cu Factor ($/ton) = | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu % \* Cu Recovery % \* 2000 lbs/ton \* $/lb Cu |
| &nbsp;&nbsp;Ag Factor ($/ton) = | &nbsp;&nbsp;<u>Ag ppm \* Ag Recovery % \* $/oz Ag</u> |
|  | &nbsp;&nbsp;31.1035 g/oz \* 1.1023 tons/tonne |

---

The equations to calculated RCV for each mineralized zone were as follows:

RCV (oxides) = (Cu% \* 36.0) + (Ag(ppm) \* 0.24) + (MoS<sub>2</sub>% \* 143.88)

RCV (Cu-Ag) = (Cu% \* 40.8) + (Ag(ppm) \* 0.27) + (MoS<sub>2</sub>% \* 154.67)

RCV (Cu-Mo) = (Cu% \* 51.0) + (Ag(ppm) \* 0.28) + (MoS<sub>2</sub>% \* 165.46)

RCV (Mo) = (Cu% \* 43.2) + (Ag(ppm) \* 0.20) + + (MoS<sub>2</sub>% \* 170.85)

RCV (MSI) = (Cu% \* 43.2) + (Ag(ppm) \* 0.20) + + (MoS<sub>2</sub>% \* 170.85)

For blocks overlapping the mineralized zone boundaries, a weighted average RCV was produced.

A complete series of tables for each zone (5), each classification (4) and for each price regime (3) plus an overall set were produced (a total of 72 tables). For the purposes of this summary report, the mineral resource estimate described next was for all zones.

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11.10 Mineral Resource Estimate

Table 11-14. Table 11-15, Table 11-16, and Table 11-17 report the overall mineral resource estimated within the Snowden 2012 open pit shell at a variety of RCV cut-offs. The $5.00/t cut-off is highlighted as an appropriate RCV cut-off based on grade improvements using mineral sorting processes. The base case $5.00 cut-off is suggested to separate waste from material that is fed to the sorters. The actual cut-off used in economic analysis and mine design will vary depending on numerous conditions at the time of the calculation: including metal prices, recoveries and operating costs.

It should be noted that since the convention for the CuMo project has been to work with %MoS<sub>2</sub>, as calculated from measured %Mo, the %MoS<sub>2</sub> values in the resource estimate tables are 1.6681 times greater than %Mo.

**Table 11-14: Measured resources**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;308.4 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;0.074 | &nbsp;&nbsp;2.09 | &nbsp;&nbsp;17.32 | &nbsp;&nbsp;0.029 | &nbsp;&nbsp;0.233 | &nbsp;&nbsp;292.1 | &nbsp;&nbsp;456.5 | &nbsp;&nbsp;18.8 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;297.2 | &nbsp;&nbsp;0.081 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;**2.09** | &nbsp;&nbsp;**17.83** | &nbsp;&nbsp;**0.03** | &nbsp;&nbsp;**0.229** | &nbsp;&nbsp;**288.6** | &nbsp;&nbsp;**451.7** | &nbsp;&nbsp;**18.1** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;282 | &nbsp;&nbsp;0.085 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;2.06 | &nbsp;&nbsp;18.48 | &nbsp;&nbsp;0.031 | &nbsp;&nbsp;0.223 | &nbsp;&nbsp;287.4 | &nbsp;&nbsp;428.7 | &nbsp;&nbsp;16.9 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;227.9 | &nbsp;&nbsp;0.097 | &nbsp;&nbsp;0.075 | &nbsp;&nbsp;2 | &nbsp;&nbsp;20.50 | &nbsp;&nbsp;0.036 | &nbsp;&nbsp;0.217 | &nbsp;&nbsp;265 | &nbsp;&nbsp;341.8 | &nbsp;&nbsp;13.3 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;195.4 | &nbsp;&nbsp;0.105 | &nbsp;&nbsp;0.072 | &nbsp;&nbsp;1.9 | &nbsp;&nbsp;21.71 | &nbsp;&nbsp;0.039 | &nbsp;&nbsp;0.212 | &nbsp;&nbsp;246 | &nbsp;&nbsp;281.3 | &nbsp;&nbsp;10.8 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;159.7 | &nbsp;&nbsp;0.115 | &nbsp;&nbsp;0.067 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;23.04 | &nbsp;&nbsp;0.043 | &nbsp;&nbsp;0.207 | &nbsp;&nbsp;220.1 | &nbsp;&nbsp;213.9 | &nbsp;&nbsp;8.4 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;122.9 | &nbsp;&nbsp;0.125 | &nbsp;&nbsp;0.063 | &nbsp;&nbsp;1.7 | &nbsp;&nbsp;24.50 | &nbsp;&nbsp;0.047 | &nbsp;&nbsp;0.202 | &nbsp;&nbsp;184.1 | &nbsp;&nbsp;154.8 | &nbsp;&nbsp;6.1 |

---

Source: Giroux et al, 2015, modified 2019

**Table 11-15: Indicated resources**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;2216.1 | &nbsp;&nbsp;0.049 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;2.48 | &nbsp;&nbsp;12.32 | &nbsp;&nbsp;0.018 | &nbsp;&nbsp;0.277 | &nbsp;&nbsp;1301.9 | &nbsp;&nbsp;3501.4 | &nbsp;&nbsp;160.3 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;**1972.3** | &nbsp;&nbsp;**0.053** | &nbsp;&nbsp;**0.085** | &nbsp;&nbsp;**2.57** | &nbsp;&nbsp;**13.40** | &nbsp;&nbsp;**0.019** | &nbsp;&nbsp;**0.269** | &nbsp;&nbsp;**1253.3** | &nbsp;&nbsp;**3352.9** | &nbsp;&nbsp;**147.8** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;1708.3 | &nbsp;&nbsp;0.059 | &nbsp;&nbsp;0.088 | &nbsp;&nbsp;2.59 | &nbsp;&nbsp;14.55 | &nbsp;&nbsp;0.021 | &nbsp;&nbsp;0.258 | &nbsp;&nbsp;1208.4 | &nbsp;&nbsp;3006.5 | &nbsp;&nbsp;129 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;1050.6 | &nbsp;&nbsp;0.076 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;2.55 | &nbsp;&nbsp;17.67 | &nbsp;&nbsp;0.027 | &nbsp;&nbsp;0.235 | &nbsp;&nbsp;957.4 | &nbsp;&nbsp;1891.1 | &nbsp;&nbsp;78.1 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;798.5 | &nbsp;&nbsp;0.083 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;2.56 | &nbsp;&nbsp;19.06 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.231 | &nbsp;&nbsp;794.6 | &nbsp;&nbsp;1437.2 | &nbsp;&nbsp;59.6 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;541.6 | &nbsp;&nbsp;0.093 | &nbsp;&nbsp;0.088 | &nbsp;&nbsp;2.49 | &nbsp;&nbsp;20.60 | &nbsp;&nbsp;0.034 | &nbsp;&nbsp;0.226 | &nbsp;&nbsp;603.9 | &nbsp;&nbsp;953.2 | &nbsp;&nbsp;39.3 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;301.3 | &nbsp;&nbsp;0.106 | &nbsp;&nbsp;0.082 | &nbsp;&nbsp;2.36 | &nbsp;&nbsp;22.49 | &nbsp;&nbsp;0.039 | &nbsp;&nbsp;0.219 | &nbsp;&nbsp;383 | &nbsp;&nbsp;494.2 | &nbsp;&nbsp;20.7 |

---

Source: Giroux et al, 2015, modified 2019

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**Table 11-16: Measured and indicated resources**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;2524.6 | &nbsp;&nbsp;0.053 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;2.43 | &nbsp;&nbsp;12.93 | &nbsp;&nbsp;0.019 | &nbsp;&nbsp;0.272 | &nbsp;&nbsp;1604.3 | &nbsp;&nbsp;3988.9 | &nbsp;&nbsp;178.9 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;**2269.6** | &nbsp;&nbsp;**0.057** | &nbsp;&nbsp;**0.084** | &nbsp;&nbsp;**2.5** | &nbsp;&nbsp;**13.98** | &nbsp;&nbsp;**0.021** | &nbsp;&nbsp;**0.264** | &nbsp;&nbsp;**1551.1** | &nbsp;&nbsp;**3812.9** | &nbsp;&nbsp;**165.5** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;1990.4 | &nbsp;&nbsp;0.063 | &nbsp;&nbsp;0.086 | &nbsp;&nbsp;2.51 | &nbsp;&nbsp;15.10 | &nbsp;&nbsp;0.022 | &nbsp;&nbsp;0.253 | &nbsp;&nbsp;1503.5 | &nbsp;&nbsp;3423.5 | &nbsp;&nbsp;145.7 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;1278.6 | &nbsp;&nbsp;0.079 | &nbsp;&nbsp;0.087 | &nbsp;&nbsp;2.46 | &nbsp;&nbsp;18.17 | &nbsp;&nbsp;0.029 | &nbsp;&nbsp;0.232 | &nbsp;&nbsp;1211.1 | &nbsp;&nbsp;2224.8 | &nbsp;&nbsp;91.7 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;993.9 | &nbsp;&nbsp;0.088 | &nbsp;&nbsp;0.087 | &nbsp;&nbsp;2.43 | &nbsp;&nbsp;19.58 | &nbsp;&nbsp;0.032 | &nbsp;&nbsp;0.227 | &nbsp;&nbsp;1048.7 | &nbsp;&nbsp;1729.5 | &nbsp;&nbsp;70.4 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;701.4 | &nbsp;&nbsp;0.098 | &nbsp;&nbsp;0.083 | &nbsp;&nbsp;2.33 | &nbsp;&nbsp;21.16 | &nbsp;&nbsp;0.036 | &nbsp;&nbsp;0.221 | &nbsp;&nbsp;824.1 | &nbsp;&nbsp;1164.2 | &nbsp;&nbsp;47.7 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;424.3 | &nbsp;&nbsp;0.112 | &nbsp;&nbsp;0.077 | &nbsp;&nbsp;2.17 | &nbsp;&nbsp;23.07 | &nbsp;&nbsp;0.041 | &nbsp;&nbsp;0.214 | &nbsp;&nbsp;569.8 | &nbsp;&nbsp;653.4 | &nbsp;&nbsp;26.9 |

---

Source: Giroux et al, 2015, modified 2019

**Table 11-17: Inferred resources (molybdenum, copper, silver, rhenium and sulfur)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp; **Grade > RCV Cut-off** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** | &nbsp;&nbsp;**Contained Metal** |
| &nbsp;&nbsp; **Cut-off**<br> **RCV**<br> **($)** | &nbsp;&nbsp; **Quantity**<br> **(Mt)** | &nbsp;&nbsp; **MoS<sub>2</sub>**<br> **(%)** | &nbsp;&nbsp; **Cu**<br> **(%)** | &nbsp;&nbsp; **Ag**<br> **(ppm)** | &nbsp;&nbsp; **RCV**<br> **($)** | &nbsp;&nbsp; **Re**<br> **(ppm)** | &nbsp;&nbsp; **S**<br> **(%)** | &nbsp;&nbsp; **Mo**<br> **(mmlbs)**  | &nbsp;&nbsp; **Cu**<br> **(mmlbs)** | &nbsp;&nbsp; **Ag**<br> **(Moz)** |
| &nbsp;&nbsp;2.5 | &nbsp;&nbsp;3373.6 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.057 | &nbsp;&nbsp;1.93 | &nbsp;&nbsp;9.55 | &nbsp;&nbsp;0.014 | &nbsp;&nbsp;0.304 | &nbsp;&nbsp;1617.9 | &nbsp;&nbsp;3845.9 | &nbsp;&nbsp;189.9 |
| &nbsp;&nbsp;**5.0** | &nbsp;&nbsp;**2556.6** | &nbsp;&nbsp;**0.048** | &nbsp;&nbsp;**0.067** | &nbsp;&nbsp;**2.13** | &nbsp;&nbsp;**11.48** | &nbsp;&nbsp;**0.017** | &nbsp;&nbsp;**0.282** | &nbsp;&nbsp;**1471.4** | &nbsp;&nbsp;**3425.9** | &nbsp;&nbsp;**158.8** |
| &nbsp;&nbsp;7.5 | &nbsp;&nbsp;1996 | &nbsp;&nbsp;0.056 | &nbsp;&nbsp;0.07 | &nbsp;&nbsp;2.23 | &nbsp;&nbsp;13.07 | &nbsp;&nbsp;0.02 | &nbsp;&nbsp;0.261 | &nbsp;&nbsp;1340.1 | &nbsp;&nbsp;2794.4 | &nbsp;&nbsp;129.8 |
| &nbsp;&nbsp;12.5 | &nbsp;&nbsp;996.4 | &nbsp;&nbsp;0.078 | &nbsp;&nbsp;0.064 | &nbsp;&nbsp;1.98 | &nbsp;&nbsp;16.74 | &nbsp;&nbsp;0.028 | &nbsp;&nbsp;0.231 | &nbsp;&nbsp;931.8 | &nbsp;&nbsp;1275.4 | &nbsp;&nbsp;57.5 |
| &nbsp;&nbsp;15.0 | &nbsp;&nbsp;637 | &nbsp;&nbsp;0.086 | &nbsp;&nbsp;0.074 | &nbsp;&nbsp;2.16 | &nbsp;&nbsp;18.63 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.244 | &nbsp;&nbsp;656.8 | &nbsp;&nbsp;942.7 | &nbsp;&nbsp;40.1 |
| &nbsp;&nbsp;17.5 | &nbsp;&nbsp;384.8 | &nbsp;&nbsp;0.094 | &nbsp;&nbsp;0.084 | &nbsp;&nbsp;2.34 | &nbsp;&nbsp;20.49 | &nbsp;&nbsp;0.032 | &nbsp;&nbsp;0.259 | &nbsp;&nbsp;433.7 | &nbsp;&nbsp;646.4 | &nbsp;&nbsp;26.3 |
| &nbsp;&nbsp;20.0 | &nbsp;&nbsp;190.2 | &nbsp;&nbsp;0.109 | &nbsp;&nbsp;0.078 | &nbsp;&nbsp;2.37 | &nbsp;&nbsp;22.80 | &nbsp;&nbsp;0.037 | &nbsp;&nbsp;0.262 | &nbsp;&nbsp;248.6 | &nbsp;&nbsp;296.8 | &nbsp;&nbsp;13.1 |

---

Source: Giroux et al, 2015, modified 2019

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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12 Mineral Reserve Estimates

No mineral reserve estimates, as defined by CIM Definition Standards, currently exist for the CuMo project.

13 Mining Methods

13.1 Mining Approach

The CuMo project is envisaged to be developed using open pit mining techniques. The scale of the deposit is such that ultra-class mining equipment (e.g. 400-ton trucks) has been considered for the purposes of this PEA. As well, to improve the head grade of the flotation mill feed, the author has considered the implementation of mineral sorting for the project. Specifically, the author envisions a multi-stage bulk sorting process accompanied by a final particle-sorting stage to upgrade the mil feed. These are described further in Section 17.2 and 17.3. The result of the mineral sorting strategies is a reduction of waste fed to the mill, thereby improving feed head grade. There is however added cost, but this is all taken into consideration in determining the potential mineable resource for the project.

13.2 Pit Optimization

Under supervision of the author, SRK applied Lerchs Grossman pit optimization techniques using Geovia's Whittle<sup>TM</sup> software to generate potential pit shells for mining. The inputs and outcomes of this process are described herein.

13.2.1 Pit Geotechnical Considerations

The author conducted a basic, PEA level, geotechnical assessment to define pit wall slope inputs for the pit design. The assessment comprised:

● A review of the existing geotechnical data sources

● A site visit to view the proposed pit footprint and evaluate the historical core

● An assessment of the extents and confidence level of with the data

● Processing of the data for rock mass characterization and classification

● Formulation of pit wall recommendations

**Data Sources**

A summary of the reviewed data types provided by CuMoCo pertinent to this geotechnical assessment is presented in Table 16-1.

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**Table 13-1: Summary of the reviewed data types**

---

| | |
|:---|:---|
| **Data Type** | **Details** |
| Technical Report | NI 43-101 Resource Estimate Update (Snowden), dated 12 June 2012 |
| Geology Model | 2-D schematic map and sections illustrating the deposit major geology, alteration, mineralization structural regime |
| Drill hole Database | Drill hole database comprising;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● exploration drill holes from the 2006 to 2012 drilling campaigns, including; lithology, alteration, mineralized zone and RQD. Included three<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● three geotechnical drill holes from the 2010 drilling campaign with detailed properties logged to RMR<sub>L</sub>(90). |
| Core Photographs | Core photographs from geotechnical drill hole C10-55 |
| Topography | Site topographic surface |
| Pit Shell | Snowden resource pit shell |

---

On 30 October 2018, a senior geotechnical engineer from SRK (the "author" of this sub-section) visited the CuMo project site, the area of the proposed pit footprint and the project core facility. Observations were made of the site setting, rock exposures and the core from geotechnical drill hole C10-55 was viewed. These observations were considered for the analysis and design herein.

**Snowden Report**

Snowden conducted a resource estimate update and technical report in 2012 (Snowden, 2012). There was no geotechnical assessment undertaken as part of the study. Pit wall slopes used in the PEA were given for ground elevation intervals and became shallower with pit depth i.e. the upper interval was 45°, the next 40°, and the north south and west walls had a lower interval of 35°. The resultant overall slope angles (OSA) calculated using this configuration are shown in Table 16-2.

The pit-shell used to constrain the resource estimation is not the same pit-shell as used to derive the mine plan used for this PEA. The design parameters for the PEA mine plan and resulting pits are discussed in Sections 16.2.3 16.2.4 and 16.2.5.

**Table 13-2: Pit slope design details in Snowden (2012)**

---

| | | | |
|:---|:---|:---|:---|
| **Pit Sector** | **Snowden Resource Pit Shell Depth (m)** | **Bench Height**<br> **(m)** | **Calculated OSA**<br> **(°)** |
| North wall | 670 | 15 | 42 |
| East wall | 590 | 15 | 43 |
| South wall | 850 | 15 | 42 |
| West wall | 670 | 15 | 42 |

---

These wall heights and design slope angles were plotted on an industry-recognized empirical chart showing various operations around the world Figure 16-1. Also plotted on the chart are separately-derived 'trend lines of nominal factor of safety' (after Hoek and Bray, 1981). Note that pit slope stability depends on a variety of site-specific factors which makes it difficult to directly compare with other sites, but the chart is still useful for benchmarking at early project design stage.

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At an ultimate depth of over 600 m, the conceptual design walls are significantly higher than most operating mines in North America. The precedent for cases is very limited but the pits that are of those heights have all encountered slope stability problems in some areas of the mine. The plot suggests that these proposed OSAs fall around FoS of equity and may not be achievable.

As a result, the author proceeded to investigate and study further the wall heights and slope angles.

![](ex96-1_034.jpg)

Source: SRK, 2019

**Figure 13-1: Empirical pit wall chart with the Snowden (2012) walls added**

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**Data Processing**

The author undertook these tasks with the project data:

● Viewed the project drill hole traces relative to the Snowden (2012) ultimate pit shell

● Modelled the project RQD data to produce wireframes of binned values broadly equating to; very poor (<20), poor (21-40), fair (41-60), good (61-80), very good (81-100)

● Processed the detailed geotechnical data for RMR<sub>L</sub>90 rock mass rating and viewed the colour-coded values over the full depth of the hole

● QA/AC check of the core photos against the calculated RMR<sub>L</sub>90 values

● Basic statistical analysis of the RQD and RMR<sub>L</sub>90 data

**Key Observations and Findings**

The author makes these observations and findings from the data review and processing:

● The three geotechnical drill holes are clustered together in the south western area of the deposit, hence spatial (and depth) coverage is very limited.

● The primary geotechnical drill hole (C10-55) is aligned roughly parallel with the pit wall, hence geotechnically-important structures aligned this way will be invisible or under-represented.

● The core from drill hole C10-55 showed a deep weathering profile, was generally highly fractured largely due to medium to high micro-defect intensity, and included damage zones, gauge, breccia and rubble probably associated with large-scale brittle structures e.g. faults, shear zones.

● The model of the project RQD data shows that most of the core was logged as 'poor' to 'very poor' RQD, with small core zones which are 'fair'. The mean RQD value for the data set was 18.

● The RMR<sub>L</sub>90 values in drill hole C10-55 showed a large spread over the range of 25 to 70, with a mean value of 46. The colour-coded plot showed no obvious zonation or increase in values with depth.

● The QA/QC check found that there were sections of core that had similar RMR<sub>L</sub>90 values and yet had distinctly different rock quality in the core photos. This points to possible errors, or inconsistencies, in the logging practices and the project geotechnical data set.

Based on these observations and findings, the author concludes that pit slope stability of the deposit will likely be controlled by rock mass strength and major structures.

**Pit Slope Evaluation**

These tasks were conducted to reach an evaluation of the possible achievable pit slopes:

● Using professional judgement and experience, the author selected and applied mining adjustment factors for; structures orientation, induced stresses, blasting and weathering, to get Mining RMR (MRMR) ratings for drill hole C10-55.

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● Selected a pit design acceptance criterion of FoS=1.3 which is common for inter-ramp slopes (although in more advance design stages a higher factor of safety may be used locally around critical pit infrastructure such as ramps).

● Using the well-known and industry-recognized Haynes and Terbrugge (1990) chart and considering an inter-ramp stack height of around 350 ft, the MRMR values were plotted to find pit slope angles. Reflective of the small data set and low confidence in the values, the lower half of the calculated MRMR range was plotted and used for the assessment.

**Pit Slope Recommendations**

For the PEA pit design, the author recommends the following pit wall design criteria:

● maximum bench height of 50 ft

● bench width of 26 ft

● inter-ramp wall angles of 42°

● geotechnical berm of 65 ft every seven benches

To allow for geotechnical berms and a spiral ramp to reach the pit bottom, derived an overall slope angle to be used in pit shell definition of 37°.

Note these major limitations of the geotechnical assessment:

● It was largely based on data from one geotechnical drill hole in one area of the deposit only. It does not provide coverage of the geology, alteration, mineralization units and regimes present over the site, nor of the open pit depth extent.

● The site groundwater regime, or phreatic surface/s, were not considered. Porewater pressures can have a significant strength reduction and destabilizing effect on slopes.

● The potential presence of lower-angle major fault structures could impact the overall slopes and may require specific design recommendations and/or mitigation strategies including flattening of the slopes.

13.2.2 Bulk Sorting

**Sort Analysis of Drill Hole Data**

As mentioned, mineral sorting is being considered for the CuMo project to improve the grade of the mill feed. The description here is for the adoption of bulk sorting at CuMo.

In preparing the drill hole data for a sort analysis, the author applied factors to account for expected sorting conditions or inefficiencies. In particular, two factors were considered – dilution zone thickness at sample interval contacts and minimum thickness of sample interval. The first represents possible mixing that can occur during blasting or in material handling. The grades in this zone are the average of adjacent sample intervals. The second factor typically considers thin intersections of sample intervals after bench compositing. Considered values for dilution and minimum thicknesses at CuMo ranged from zero to two feet. In the end, a 2-ft dilution zone per interval was used, with no consideration of minimum sample interval thickness.

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The bulk sort analysis starts with considering grade control in the mine, whereby the author selected a sort feed cut-off to determine what goes to the sort plant versus what goes to waste. Then, using the composite-sample relationships discussed in Section 13.2.2, the author ran several scenarios examining the impact of multiple cut-off RCVs. In addition to the grade control cut-off, the author considered two RCV cut-offs for a given stage of sorting. Material below the lower RCV cut-off would be rejected as waste in the sort process, and material above the upper RCV cut-off would represent feed to the mill. Material between the cut-offs is referred to as "middlings".

It was possible with these simulations of sorting, conducted directly on the drill hole data, to assess which combinations of cut-off grades produced the best results in terms of improved metal grades of the mill feed fraction and increased waste rejection. A final sort analysis however needed to be applied to the resource blocks to be able to assess preliminary economics that balance metal recoveries and waste rejection. The drill hole analysis results however provided a good starting point.

**Sort Analysis of Resource Block Model**

The composite-sample analysis discussed in Section 13.2.2 provides relationships between bench composite RCV and sample interval RCV. However, for sort analysis of blocks, selecting drill hole composite-sample relationships based on matching RCV grades is not possible due to the volume-variance effect. Block models generally have lower grades than the underlying drill hole data. To overcome this, the drill hole composite-sample relationships were re-expressed on a percentile RCV basis. Ranges or "bins" of percentile RCV (in 10% intervals) were thus set up for the drill hole composites and the corresponding composite-sample relationships were re-estimated for the drill hole data.

Then, using the 3-D mineral resource block model described in Section 14, the author performed a sort analysis for blocks contained within the pit shell used by Snowden (Snowden, 2012) to constrain the mineral resource. The percentile RCV of a block is compared to the percentile RCV ranges for the drill hole composites to select the applicable composite-sample relationship for sorting. Again, by applying a cut-off RCV for waste and another for mill feed, the block could be segregated into three products, waste, mill feed, and middlings, according to the composite-sample relationship.

To maximize the benefit of bulk sorting, and to take advantage of increased heterogeneity at smaller scales, multiple stages of bulk sorting were considered. The middlings portion became the feed for the subsequent sorting stages. As well, the middlings product streams were split in two to further reduce the volume of batches for sorting and thus increase the heterogeneity (per conclusions of Section 13.2.2).

To determine the composite-sample relationships that would apply to subsequent stages of sorting, the RCV of the middlings was re-calculated from the reported Cu, Mo, and Ag grades. This RCV value was compared to the drill hole composite analysis to derive the corresponding composite percentile RCV range. The composite-sample relationship for this range was then used to predict the results of bulk sort.

Using the original composite-sample relationship at each sort stage is seen to be conservative. As was observed for CuMo (Section 13.2.2), the smaller the scale observed, such as at a later stage bulk sort, the greater is the heterogeneity, thus improving discrimination around cut-off grades. The limitation for the CuMo project is the drill hole sample length (10-ft) which precludes shorter interval heterogeneity analysis.

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**Final Bulk Sort Parameters**

For this PEA, three stages of bulk sorting were run on the block model. The grouping of cut-offs which appear to produce the best economic results are as follows:

● Grade control cut-off RCV = $7.50/t

● Stage 1 Bulk Sort – Lower cut-off = $7.50/t; upper cut-off = $20.00/t

● Stage 2 Bulk Sort – Lower cut-off = $7.50/t; upper cut-off = $17.50/t

● Stage 3 Bulk Sort – Lower cut-off = $7.50/t; upper cut-off = $15.00/t

Re-use of the same cut-offs (e.g. the lower cut-off segregating waste from middlings) is allowed as it is recognized that any bulk sort is not precise and that sort products will continue to contain a mix of material across the full range of sample grades.

The outcome of the block sorting analysis are blocks coded with tonnages of waste, mill feed, and middlings. Grades were calculated for each of these fractions in each block. As well, sorting costs were determined by applying $0.10/t for each bulk sort stage as well as an initial primary crushing cost of $0.20/t, which applies to all material fed to the sorting plant. This version of the block model was then used for mine planning.

13.2.3 Particle Sorting

A review of the particle sorting test work (Section 13.2.1) highlighted that the recovery of copper is not as good as molybdenum when RCV alone is the primary measure for sorting. Consequently, the author undertook a limited bivariate analysis of the test results, whereby the test samples were segregated into Mo-rich and Mo-poor samples. This would allow sorting based on Mo XRF grade for the Mo-rich samples and on Cu XRF grade for the Mo-poor samples.

In addition, as it was recognized that particle sorting was to come after bulk sorting, it was appropriate to cap the value of samples to be used in the analysis. A review of the samples showed that an RCV cap of $60/t was appropriate for the feed to particle sorting. Lastly, the particle sort analysis was weighted by the portions of the mineralized zones contained within the eventual PEA pit (Note that to reduce complexity, the benefit of particle sorting was not applied in pit optimization, but rather prior to economics. This is a more conservative but acceptable approach.)

Multiple Mo grades were tested as cut points to segregate the samples into Mo-rich and Mo-poor populations. It was found that a 100 ppm Mo cut point had the best outcomes, which are provided in Figure 16-2. For this figure, the Mo-rich samples are ranked (sorted) based on Mo grade, while the Mo-poor samples are ranked by Cu grade. As can be seen, the Cu response is considerably improved (vs Figure 13-1), while the Mo response is somewhat muted. This is fine as it was found that through the bulk sorting analysis, most of the higher Mo grade material was pulled to mill feed, leaving Cu with greater potential for particle sorting.

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![](ex96-1_035.jpg)

Source: SRK, 2019

**Figure 13-2: Particle sort analysis splitting between Mo-rich and Mo-poor samples**

A variety of different cut points and mass pulls were subsequently tested in the project economics, with the most promising being the 100 ppm Mo cut point and a mass pull of around 40%. The specific sort parameters are provided below:

● Mass pull - 40.8%

● Mo recovery – 56.9%

● Cu recovery – 52.6%

Again, these parameters were only used in project economics, not pit optimization, which is discussed further below.

13.2.4 Pit Optimization Input Parameters

The 3-D resource block model was imported to MineSight<sup>TM</sup> mine design software in order to populate the blocks with the results of the sorting analysis. The new updated model was transferred to Whittle<sup>TM</sup> optimization software to carry out the pit optimization work in order to generate conceptual mining and processing schedules for the Preliminary Economic Analysis contained in this report. The pit shells that resulted are new, and are contained within, but are not be confused with, the 2012 Snowdon resource-constraining shell used for resource estimation.

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In consultation with CuMoCo, assumptions were made for metal pricing (Mo, Cu, Ag) and offsite costs. Open pit mining costs were estimated to reflect expected haul destinations for waste and mill feed, taking advantage reduced haulage expected in early years. As well, to model the impact of a potential pre-strip period, which would be capitalized in the economic analysis, material above a selected elevation (6,100 ft) was assigned zero cost. Processing costs were based on a prior Ausenco trade-off study for plant throughput (Ausenco, 2009). A mill feed of 150,000 stpd was considered. Another assumption is that the project will build a roaster to treat the molybdenite (MoS<sub>2</sub>) concentrate.

A summary of the input parameters used is presented in Table 16-3.

Whittle™ open pit optimization software was then used to generate new pit shells for mine planning, using the resource block model updated with sorting results. The economically defined pit shell limits included measured, indicated and inferred mineral resources.

An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.

Inferred mineral resources must be excluded from estimates forming the basis of feasibility or other economic studies.

13.2.5 Optimization Results

A series of optimized pit shells were generated for the CuMo deposit based on varying revenue factors (base metal price multiples). The results of the pit optimization evaluation on the deposit for varying revenue factors values are presented in Figure 16-4. Note the NPV in this optimization summary does not take into account capital costs and is used only as a guide in shell selection and determination of the mining shapes. The actual NPV of the project is summarized in the economics section of this report (Section 22).

Whittle™ produces both "best case" (i.e., mine out shell 1, the smallest shell, and then mine out each subsequent shell from the top down, before starting the next shell) and "worst case" (mine each bench completely to final limits before starting next bench) scenarios. These two scenarios provide a bracket for the range of possible outcomes. The shells were produced based on varying revenue factors (0.3 through to 1.3 of base case) to produce the series of nested shells with the NPV results shown.

Note that in the pit optimization analysis undertaken, no value was assigned to the middlings from the third and final stage of bulk sorting. However, the decision was taken later in the project to feed the middlings to particle sorters. This has been reflected in the overall preliminary economic evaluation of the deposit, but not in the selection of pit shells for mineable resources.

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**Table 13-3: Pit optimization input parameters**

---

| | | |
|:---|:---|:---|
| **Item** | **Unit** | **Value** |
| &nbsp;&nbsp;&nbsp;**Revenue** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mo Price | $/lb | 14.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu Price | $/lb | 3.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ag Price | $/oz | 17.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Metal Recoveries | % | Varies; see Table 13-5 |
| &nbsp;&nbsp;&nbsp;**Technical Constraints** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pit slope angles | Overall degrees | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mining dilution | % | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mining recovery | % | 98% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Processing rate | tpd | 150000 |
| &nbsp;&nbsp;&nbsp;**Offsite Costs / Inputs** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Molybdenum |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrate grade | %Mo in MoS<sub>2</sub> conc | 52% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrate moisture | % | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transport to roaster | $/t | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roasting Cost | $/lb concentrate | 0.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roaster recovery | % | 99% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transport to market | $/t MoO<sub>3</sub> | 0 |
| &nbsp;&nbsp;&nbsp;Copper |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrate grade | % Cu | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrate moisture | % | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable Cu | % | 96.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transport to smelter | $/t concentrate | 39.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smelter cost | $/t concentrate (dry) | 75.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refining cost | $/lb | 0.08 |
| &nbsp;&nbsp;&nbsp;Silver |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable Ag | % | 90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ag refining cost | $/oz | 0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other offsite costs3F<sup>[5]</sup> | % | 1 |
| &nbsp;&nbsp;&nbsp;**Costs** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mining cost | $/t mined | Modeled by bench |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Processing cost | $/t milled | 4.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G&A Cost | $/t milled | 0.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sustaining capital costs | $/t | $1.14 |

---

<sup>5</sup> loss, insurance, commission

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![](ex96-1_036.jpg)

Source: SRK, 2019

**Figure 13-3: Pit optimization results**

13.2.6 Pit Shell Selection

The author reviewed the pit optimization results and with consideration of the pit shell NPVs as well as their shapes and quantities, selected the appropriate pit shells for the development of conceptual production schedules. No specific mine designs were created, nor were fully detailed schedules developed. The author considers this appropriate for schedules in a PEA. The estimates of mined quantities for the phases representing the increment between pit shells are provided in Table 16-4. Mill feed after mineral sorting is also shown. This includes not only the mill feed product from bulk sorting, but also the same from particle sorting, using a mass pull on the bulk sort middlings of 40.8%.

**Table 13-4: CuMo mined quantities**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Phase** | <br> **Shell** | | | | **Strip Ratio** | **Mill Feed** | **Mill Feed** | **Mill Feed** | **Mill Feed** |
| **Phase** | <br> **Shell** | **Total**<br>**Mt** | **Waste**<br>**Mt** | **Sort Feed**<br>**Mt** | **Strip Ratio** | **Mt** | **%MoS<sub>2</sub>** | **%Cu** | **ppm Ag** |
| 1 | 8 | 575 | 307 | 268 | 1.14 | 194 | 0.07 | 0.11 | 3.07 |
| 2 | 9 | 673 | 306 | 367 | 0.83 | 272 | 0.08 | 0.11 | 3.09 |
| 3 | 13 | 1144 | 603 | 541 | 1.11 | 391 | 0.08 | 0.10 | 2.80 |
| 4 | 18 | 1339 | 673 | 666 | 1.01 | 475 | 0.07 | 0.11 | 3.29 |
| 5 (final) | 23 | 883 | 536 | 347 | 2.07 | 250 | 0.08 | 0.09 | 2.61 |
| **Total** |  | **4615** | **2425** | **2190** | **1.12** | **1582** | **0.07** | **0.10** | **3.00** |

---

The pit shells representing the five phases are illustrated in Figure 16-3 to Figure 16-6.

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![](ex96-1_037.jpg)

Source: SRK, 2019

**Figure 13-4: CuMo pit phase shell outlines**

Source: SRK, 2019

**Figure 13-5: CuMo pit phase shell east-west cross-section A-A'**

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Source: SRK, 2019

**Figure 13-6: CuMo pit phase shell north-south cross-section B-B'**

The pit shells are mathematical derivations. During the pit design at later stages in the project, it is envisioned that some pit shells will be combined in certain sectors of the pit to ensure adequate mining widths. For CuMo, the northeast sector, constrained by Grimes Creek, would be such an instance.

13.3 Waste Rock Facilities and Stockpile Design

Waste rock is produced from two sources, run of mine waste and sort waste. Sort waste is generated during the mineral sorting process, both bulk and particle sorting, and will be used in construction of the TSF embankment, discussed in Section 18.6. Run of mine waste is transported from the pit to WRF in Charlotte Gulch and Clear Creek and is also used as construction material in the TSF embankment (refer to Figure 16-7).

WRFs are designed to ensure physical stability throughout the mine life and into perpetuity. Benching, drainage, geotechnical stability, operational efficiency, and closure are all factors considered during design of waste rock facilities. At the time of the PEA, there was limited information available for geotechnical or geochemical assessments, but these are recommended for future study work.

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![](ex96-1_040.jpg)

Source: SRK, 2019

**Figure 13-7: CuMo mine layout**

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13.3.1 Charlotte's Gulch Waste Rock Facility

The WRF in Charlotte Gulch, immediately to the south of the CuMo pit, is constructed by two methods. Upper bench waste from the initial phases of mining are placed in platforms following the east and south walls of Charlotte Gulch. The initial platform is at an elevation of 6,800 ft, followed by two wraparound platforms at elevations of 6,600 ft and 6,300 ft respectively.

The bulk of the waste rock in Charlotte Gulch is to be placed as a single platform at 6,100 ft elevation which is the approximate elevation of pit access. Toward the central and south portions of the WRF, the platform will increase to 6,200 ft in elevation to clear a height of land.

Clear Creek Waste Rock Facility

Run of mine waste rock will be hauled from the pit to the Clear Creek WRF which is buttressed against the tailings embankment also in Clear Creek. The buttress is designed to 6,200 ft elevation with a 3V:1H downstream slope. The WRF is intended to both provide additional waste storage capacity and to facilitate tailings embankment geotechnical stability and drainage.

13.4 Production Schedule

The author developed a life-of-mine (LOM) production schedule based on satisfying a mill feed, after sorting of 150,000 stpd. After an initial build-up of 2.7 million tons, the mine plan maintained a stockpile inventory ahead of the sort plant of 0.2-0.8 Mt. Note that wherever possible, mill feed inventory should be maximized at the face in the pit to ensure heterogeneity is maintained. Another scheduling criterion was balancing haul truck hours, ensuring no spikes in required trucks.

The resulting mine production schedule is provided in Figure 16-8.

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![](ex96-1_041.jpg)

Source: SRK, 2019

**Figure 13-8: CuMo LOM production schedule**

The production schedule shows two years of pre-stripping, followed by a ramp-up year in mill feed (27.4 Mt). Steady stated production of 54.7 Mt or 150,000 stpd is achieved in year 2. Full production lasts 28 years, with a tail-off in year 30 of production.

13.5 Equipment Selection and Fleet Requirements

Owing to the magnitude of mine production, ultra-class mine equipment is to be considered at CuMo. As part of this, and in keeping with current trends in mine haulage, the author has considered the deployment of an autonomous haulage fleet. While extra costs are incurred for hardware on the trucks, a central control system, and associated licensing and technical support, the benefits of labor savings, increased utilization, and improved tire life and maintenance costs were applied. Additionally, the author considered the use of semi-autonomous drills, wherein one operator can operate three drills drilling autonomously.

The envisioned fleet of primary mining equipment at steady state production is provided in Table 16-5.

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**Table 13-5: CuMo primary mine equipment fleet**

---

| | | | |
|:---|:---|:---|:---|
| **Equipment Type** | **Size** | **Basis** | **Fleet Size** |
| Rotary Blast Hole Drill | 15 in | Hole Diameter | 5 |
| Electric Cable Shovel | 100 t | Bucket Size | 4 |
| Autonomous Trucks | 400 t | Payload | 25-27 |
| Track Dozer | 21 ft | Blade Width | 6 |
| Rubber Tire Dozer | 21 ft | Blade Width | 3 |
| Grader | 24 ft | Blade Width | 4 |
| Water Truck | 45,000 gal | Water Tank | 3 |
| Backhoe | 5.0 yd<sup>3</sup> | Bucket Size | 2 |

---

In addition to this primary mine equipment, ancillary equipment consisting of utility (small) earthmoving equipment, mobile equipment maintenance vehicles, light vehicles, dewatering pumps, and portable lighting are to be included for the project. But at this level of study, their costs will be factored from the primary equipment.

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14 Recovery Methods

Unless otherwise stated, the sub-sections in this section were previously provided in the report, "Summary Report on the CUMO Molybdenum Property, Boise County, Idaho" (Giroux, Dykes, Place, 2015). The authors have reviewed the underlying data, analytical work, and technical reports and have taken responsibility for this summary making edits as necessary. As well, John Starkey has re-interpreted comminution test results in terms of kW/t to simulate grinding mill sizes.

Mr. Starkey has accordingly confirmed or rewritten Section 17, with the exception of Section 17.2.

14.1 General

The CuMo processing facilities and associated service facilities will process ROM (run-of-mine) feed delivered to the primary crusher, to produce separate copper and molybdenum concentrates, waste rocks, and tailings. The proposed process encompasses crushing the ROM feed, bulk sorting, particle sorting, grinding, bulk rougher and cleaner flotation, regrinding, molybdenum separation and dewatering of copper and molybdenum sulfide concentrates. Molybdenum concentrates will be further processed downstream in a roaster to produce a saleable molybdenum trioxide product. The roaster would comprise of a standard multiple hearth gas fired roasting furnace heating the concentrate to approximately 600 degrees centigrade. In order to protect air quality, the flue gases and dust from the roasting are processed to produce sulfuric acid, and rhenium if it is economic to do so. In the case of sulfuric acid, it is recovered through water with the use of absorption towers. In the case of rhenium it would be recovered through solvent extraction to produce ammonium perrhenate. The copper concentrate will be trucked from site for downstream processing at another facility outside the scope of this report. The flotation tailings will be thickened before placement in the TSF.

The present design incorporates three 50,000 stpd grinding lines with the ability to expand flotation and further downstream processes as needed. The process after mining comprises two stages: stage 1 includes a gyratory crusher, bulk sort conveyor diversion system, stockpile feed conveyor, and bulk sorted stockpiles, particle sort system, and another stockpile conveyor; stage 2 includes the sorted product stockpile, SAG and ball mill grinding circuit, bulk flotation circuit including regrind and cleaner flotation, copper and molybdenum separation flotation circuit, copper concentrate dewatering and load-out; molybdenum concentrate thickening, ferric chloride leach circuit, (molybdenum) filtration, drying, bagging and load-out, and tailings thickening and pumping facilities. Bagged molybdenum concentrate is roasted in a separate off-site roasting plant for conversion to molybdenum trioxide.

The concentrator will use a conventional grinding and flotation flow sheet and industry standard equipment. Plant operation will be monitored using a control system from a centrally located control room. Sampling and stream assay monitoring will be via an automated system linked to the control system.

14.2 Bulk Sorting

The following is original text for the current PEA.

The bulk sorting plant, located downstream of the primary crushers, would consist of a series of stages of splitting of streams, measuring their metal content, and then sorting. The schematic in Figure 17-1 shows the elements of a three-stage bulk sort plant.

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However, prior to the sorting plant, there would be a diversion mechanism that would allow the crushed material to bypass the sorting plant. This would be for emergencies, to not disrupt the flow of material to the mill. A future improvement may be to place an analyzer on the conveyor belt after the primary crusher to determine whether crushed material needs to go to the sorting plant or not.

![](ex96-1_042.jpg)

Source: Modified from CWA Engineers Inc., 2019

**Figure 14-1: Schematic of three-stage bulk sorting plant with particle sorting**

Material feeding the plant (nominally 10,000 tph) is immediately split in two, and two penetrative elemental analyzers, such as a prompt gamma neutron activation analysis analyzer, measure the stream. To make a measurement, such analyzers require a batch of material on the belt to average readings over. For instance, in the case of Scantech's Geoscan analyzers, this is 30 seconds of belt travel time. The length of conveyor from this first analyzer position to the sorting point is dictated by this 30 second interval and the travel speed of the belt. So, a belt traveling at 12 ft per second would require a conveyor length of at least 360 ft between analyzer and sort point. Alternate technologies are being developed to shorten the required measurement interval.

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At the sorting point, a signal is received from the analyzer to indicate what the approaching material consists of (mill feed, waste, or middlings). The rapid diversion mechanism then diverts the stream to receiving chutes and conveyors accordingly. Figure 17-2 illustrates a viable diversion system to facilitate the re-direction of a stream. As the intellectual property is not presently protected, details of the rapid diversion mechanism are omitted.

![](ex96-1_043.jpg)

Source: Modified from CWA Engineers Inc., 2019

**Figure 14-2: Schematic of bulk sorting diversion system**

The CuMo sorting plant would consist of three stages of sorting. Each stage will produce mill feed, waste, and middlings products. The mill feed from each stage will be sent directly to the coarse mill feed stockpile in front of the mill, while the waste will be conveyed to a truck load out bin for delivery by haul truck to the TSF or WRF in Clear Creek.

The middlings portions become feed for subsequent sorting. To take advantage of the increased heterogeneity that comes with smaller scale (Section 13.2.2), the middling streams of the first and second sort are split in two to reduce the 30 second batch size (Figure 17-2). The third stage however will not have the middlings stream as this will next become feed for particle sorting.

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14.3 Particle Sorting

The following is original text for the current PEA..

In order to ensure maximum mill feed recovery, particle sorting using XRF based sorting machines would be done taking feed from stockpiles or bins containing the middlings from the third stage of the bulk sort (Figure 17-1). Values so recovered would be added to the mill feed conveyors shown.

Up to eight lines would feed 350 to 400 short tons per hour into particle sorting modules. Based on current XRF particle sorting technology, each module would consist of multiple sorters to handle different size fractions. These sorters are available from a number of vendors, and capacity per unit, per size fraction, ranges from about 50 to 200 short tons per hour depending on the particle size fed.

This study assumes four 100 short ton per hour units are required per line based on the current technological limitations on throughput. The sizing and selection of these units need to be confirmed later as part of a more advanced level of study.

14.4 Mill Design Criteria Summary

The remaining sub-sections were modified from the report, "Summary Report on the CUMO Molybdenum Property, Boise County, Idaho" (Giroux, Dykes, Place, 2015).

The overall approach was to design a robust process plant that could be scaled up and deliver good value for capital. The key project and specific criteria for the plant design and operating costs are provided in Table 17-1.

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**Table 14-1: Summary of the process plant design criteria (150 ktpd).**

---

| | | | |
|:---|:---|:---|:---|
| **Criteria** | **Criteria** | **Units** | **Value** |
| Sort Feed Capacity |  | ktpd (short tons) | 250 |
|  |  | Mt/y (short tons) | 90 |
| Primary Crusher Availability |  | % | 65% |
| Primary Crusher Throughput/ Feed |  | t/h (short tons) | 16000 |
| Primary Crusher Selection | Size |  | 60 x 110 |
|  | No. |  | 3 |
| Mill Throughput/feed |  | Mt/y (short tons) | 54.75 |
| Mill/Grinding and Flotation Availability |  | % | 92% |
| Mill Throughput/feed |  | t/h (short tons) | 6793 |
| Total Power requirement |  | MW | 186 |
| Physical Characteristics | BWI | kWh/t (tonne) | 15.8 |
|  | SPI® | Mins | 84.5 |
| Grind Size | P80 | microns | 63 |
| Head Grade (Design) |  | %Cu | 0.1 |
|  |  | %MoS<sub>2</sub> | 0.11 |
|  |  | ppm Ag | 2.87 |
| Flotation Recovery (Cu-Ag Zone) | Copper | % | 64% |
|  | Silver | % | 70% |
|  | Molybdenum | % | 83% |
| Flotation Recovery (Cu-Mo Zone) | Copper | % | 85% |
|  | Silver | % | 78% |
|  | Molybdenum | % | 92% |
| Flotation Recovery (Mo Zone) | Copper | % | 72% |
|  | Silver | % | 55% |
|  | Molybdenum | % | 95% |
| Cu Circuit Residence Time | Roughers | Mins | 27.5 |
|  | Cleaner 1 | Mins | 10 |
|  | Cleaner Scav. | Mins | 2.5 |
|  | Cleaner 2 | Mins | 10 |
|  | Cleaner 3 | Mins | 5 |
| Mo Circuit Residence Time | Roughers | Mins | 35 |
|  | Cleaner 1 | Mins | 25 |
|  | Cleaner Scav. | Mins | 25 |
|  | Cleaner 2 | Mins | 25 |
|  | Cleaner 3 | Mins | 25 |
| Cu Concentrate Filtration Rate |  | kg/m2/h | 262 |
| Concentrates Thickening Flux |  | t/m2/h | 0.1 |
| Mo Concentrate Filtration Rate |  | kg/m2/h | 356 |
| Tailings Thickening Flux |  | kg/m2/h | 800 |
| Tailings Thickener Underflow Density |  | % w/w | 65 |
| Collector Consumption (SIBX) |  | g/t (short ton) | 66 |
| Collector Consumption (Aero 3302) |  | g/t (short ton) | 59 |
| Activator Consumption (Moly Oil) |  | g/t (short ton) | 51 |
| Frother Consumption (X-133) |  | g/t (short ton) | 67 |
| Lime Consumption |  | kg/t (short ton) | 0.18 |
| Flocculant Consumption |  | g/t (short ton) | 15 |
| SAG Mill Media Consumption |  | kg/t (short ton) | 0.25 |
| Ball Mill Media Consumption |  | kg/t (short ton) | 0.55 |
| Regrind Mill Media Consumption |  | kg/t (short ton) | 0.04 |

---

Detailed process design criteria incorporating the process mass balance, engineering design criteria and key sizing criteria, derived from the results of the metallurgical test-work program were determined and are summarized below.

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14.5 Plant Design Basis

The key criteria selected for the plant design are:

● Treatment of 150,000 stpd or 136,000 metric tonnes/day

● Design availability of 92% (at full capacity), being 8,059 operating hours per year, with standby equipment in critical areas, such as cyclone feed pumps and tailing pumps.

● Sufficient plant design flexibility for treatment of all mineralized zones at design tonnage

● The selection of these parameters is discussed in detail below

14.6 Throughput/Mill Feed and Availability

One main throughput/mill feed scenario was nominated by CuMoCo to evaluate different corporate investment hurdles. The authors have nominated overall plant availability at 92% or 8,059 hours per year. This is an industry standard for a large, multi-train, SAG mill grinding and flotation plant with moderately abrasive mineralized material operating in a well serviced geographic region. Benchmarking indicates that similar plants have consistently achieved this level.

14.7 Processing Strategy

The overall processing strategy is to mine at high tonnage and send all mined material through a multi-stage sensor-based mineral sorting plant (including crushing, screening equipment, bulk and particle sorting). The sorting plant recovers the high-grade high profit rock and rejects marginal and waste rock. This allows the mill and tailings facilities to be significantly smaller while still producing high quantities of concentrate or similarly, can allow a mill of equal size to produce more total concentrate.

The mill process design is based on treating the different mineral types tested individually at the nominated design throughput/mill feed rates. Typically, the range in variability of material parameters such as SAG mill grinding hardness and head grade during process design are considered. However, due to the preliminary nature of the mining schedule, and the grinding and metallurgical test-work, the most competent and hardest of the three mineral types, identified by CuMoCo to date, have been used as the process design criteria.

14.8 Flow Sheet Development and Equipment Sizing

The process plant flow sheet design for the CuMo circuit was conceptually based on those of comparable large flotation plants. Figure 17-3 shows a process schematic for the CuMo plant. Details of the flow sheet design and selection of major equipment for the process are discussed in the sections below.

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![](ex96-1_044.jpg)

Source: Ausenco 2009 and modified by Sacré Davey 2018

**Figure 14-3: CuMo process schematic**

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The flowsheet shown in Figure 17-3 was originally authored by Ausenco 2009 and modified by Sacré Davey to add a sorting system (upper left). The section to the left of the coarse material stockpile (4) is compressed, showing a single stage sorting plant instead of two stages, with storage between the bulk and particle sorting stages.

The schematic shows the process starting at the upper left corner with mining trucks (1) delivering the 250,000 stpd (thousand tons per day) sorting feed to a primary gyratory crusher (2) at the edge of pit, the output is then delivered to the bulk sorting plant which generates both a mill feed product that is conveyed to a coarse material stockpile and a middling product for particle sorting. The product from particle sorting combines with the bulk sort mill feed product in the coarse material stockpile. . The SAG mill feed from the coarse material stockpile (4) is conveyed into the SAG mills (5).

14.9 Unit Process Selection

The process plant design is based on a flow sheet with unit operations that are well proven in the sulfide flotation industry, incorporating the following unit process operations. Where considered practical, unit operations are sized to maximize the economies of scale possible with large equipment. The sorting system consists of the following unit processes. Mine sort feed (250,000 stpd) from the open pit is crushed using a primary gyratory crusher to a crushed product size of nominally 80% passing (P80) 120 mm and fed onto the bulk sort feed conveyor. A bulk sorting plant with PGNAA sensors divides the material into mill feed, middlings and waste piles. The middlings are further particle sorted, producing a waste stream and a mill feed stream which combines with the bulk sort mill feed in a course material stockpile. Waste from both sorting processes is loaded into trucks for disposal in the mine. The mill feed (150,000 stpd) is conveyed from the coarse material stockpile to the mill.

The general mill design consists of three 50,000 stpd modules. Each module typically consists of the following unit processes:

● Conical stockpile of crushed mill feed with a live capacity of 18 hours, with two apron feeders per grinding train, each capable of feeding 120% of the full mill throughput/mill feed

● A 22 MW SAG mill, 11.58 m (38 ft.) diameter with 7.60 m (25 ft.) EGL, in closed circuit with pebble crushing

● Pebble crushing will be comprised of two MP800s per grinding train, crushing to a product size of nominally 80% passing (P80) 12 mm

● Three 13 MW ball mills per grinding train, 7.32 m (24 ft.) diameter with 12.19 m (40 ft.) EGL, in closed circuit with hydrocyclones, grinding to a product size of about 80% passing (P80) 63 μm

● Bulk rougher flotation consisting of 200 m<sup>3</sup> forced air tank flotation cells to provide a total of 28 minutes of retention time

● Rougher concentrate regrinding in three 1.0 MW vertical stirred mills per grinding train to a P80 of 10 μm

● Bulk cleaner 1 and cleaner scavenger flotation consisting of 20 m<sup>3</sup> forced air tank flotation cells to provide a total of 13 minutes of retention time

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● Bulk cleaner 2 flotation cells consisting of 8 m<sup>3</sup> trough shaped flotation cells to provide a total of 10 minutes of retention time

● Bulk cleaner 3 flotation cells consisting of 8 m<sup>3</sup> trough shaped flotation cells to provide a total of five minutes retention time

● Bulk concentrate thickening in 11 m diameter high rate thickeners

● Molybdenum rougher flotation consisting of 8 m<sup>3</sup> trough shaped flotation cells to provide a total of 35 minutes of retention time

● Molybdenum cleaner 1 consisting of 1.5 m<sup>3</sup> trough shaped flotation cells to provide a total of 25 minutes of retention time

● Molybdenum cleaner 2 flotation cells consisting of 1.5 m<sup>3</sup> trough shaped flotation cells to provide a total of 25 minutes of retention time

● Molybdenum cleaner 3 flotation cells consisting of 1.5 m<sup>3</sup> trough shaped flotation cells to provide a total of 25 minutes retention time

● Copper concentrate thickening in a high rate thickener and filtration in a horizontal plate and frame pressure filter

● Molybdenum concentrate thickening in a high rate thickener

● Molybdenum ferric chloride leach in 4,000 U.S. gallon, glass lined steel leach reactors followed by drying and storage in bulk one-ton bags

● Tailings thickening in a high rate thickener to an underflow density of 65% solids

● TSF for process tailings in a conventional dam

● Raw process plant water supply from site water storage facility reticulated throughout the plant as required. (Harvesting and storage of raw water sufficient to allow continued water supply throughout the year is excluded from the study scope)

● Total water requirement estimated at an initial 190 acre-feet then 10% replacement rate per year due to losses in evaporation and concentrate etc.

● Process water dam and distribution system for reticulation of process water throughout the plant as required. Process water is supplied from water reclaimed from the TSF, from process operations and site run-off with raw water used as make-up water as required

● Potable water is generated by treatment of raw water in a reverse osmosis (RO) unit at the process plant. Potable water is distributed to the plant, and for miscellaneous purposes around the site

● Plant, instrument and flotation air services and associated infrastructure.

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15 Project Infrastructure

15.1 General Layout

Refer to the conceptual mine layout presented in Figure 16-8.

15.2 Road Access

Two options for road access routing exist.

● Option 1 is to upgrade the existing gravel roads that come from Highway 55 near Horseshoe Bend via Placerville and Centreville. These roads are currently serviceable paved and gravel roads suitable for light-duty travel. An upgrade is required if concentrate haulage is to be undertaken. An extension to this route would have to be constructed to access the proposed plant site (Figure 16-8). The extension to the road would have to rise in elevation from RL 4,900 ft to RL 6,100 ft. At a maximum grade of 10%, this road is estimated to be approximately four miles long. No specific route has been identified, although the terrain through which the road would travel is rugged, and switchbacks are likely to be required in areas.

– A subset of this option is to use the existing road from Idaho city to Centreville, but this does not appear to offer any significant benefits over the base assumption.

● Option 2 is to travel via Highway 55 and the Bank-Lowman road that is to the north of the project site. An existing bridge approximately 1.4 miles southeast of Garden Valley would be used to cross the Payette River and gain access to the South Fork Road. This road then follows the river to the east for approximately 6 miles. It is relatively level, generally sloping up to the east at 2% to 3%, following the river valley. Upgrades to this road are likely to be straightforward and relatively low cost. From there, the existing Grimes Pass Road leads south from the South Fork road (~ four miles) to a location near the plant site. This road has consistent, but reasonably steep gradients of approximately 10%. Whilst not ideal, the gradients are potentially manageable for mine traffic including concentrate trucking with upgrades such as safety berms and run-away ramps. A similar extension of new road of four miles would have to be constructed as per Option 1. This route has the advantage over Option 1 of requiring much shorter haulage on non-sealed roads. A significant disadvantage of this route is that the haulage on sealed roads would both be visible to, and potentially affect recreational traffic on these roads.

Regarding Option 2, socio-political opposition to industrial use of these roads is likely. Until this can be further studied, this option is not preferred, leaving Option 1 as the access for the purpose of this PEA.

15.3 Rail Access

A rail line connecting to ports in Oregon runs north-south in the valley along-side Highway 55. Sidings are available at various locations.

The most suitable location for a concentrate loading facility for Option 1 is likely to be in or around the town of Horseshoe Bend. However, Horseshoe Bend is a residential town and community opposition may limit options with respect to the existing small rail yard in the town center, necessitating construction of a new siding and facility.

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In the case of road access Option 2, building a loading concentrate loading facility near the junction of Highway 55 and Bank-Lowman road may be possible. An existing siding may be available for use. It is understood from discussions with CuMoCo that this area is heavily used for tourist activities including rafting.

For a single project using a concentrate loading facility, bulk concentrate handling may not be optimal. The use of "Rotainers" (sealed containers specifically designed for transport of concentrate) for truck, storage and rail transport may be an effective solution, particularly in terms of managing environmental effects. The author recommends that this option be included as an option in a PFS-level logistics study.

15.4 Electrical Power

The overall availability of sufficient generating capacity is unlikely to be an issue as the project is proximate to significant power reticulation capacity. The project area is serviced by Idaho Power. No suitable power lines currently run near to the project, but Idaho Power have indicated an intention to install transmission lines to the vicinity of Placerville to the Southwest (ten miles), and to the vicinity of Garden Valley to the Northeast (nine miles). Consideration should be given to the provision of back-up power for critical systems. For example, back-up generation to allow the clearing of pipelines, flotation cells, thickeners and tailings management systems to prevent costly blockages and delays is generally able to be justified.

15.5 Water Supply

Water is likely to be available (subject to licenses) from the Payette River two miles north of the project. The intervening terrain is rugged, and the pipeline route is likely to be significantly longer than the direct distance. An assumption of five miles of supply pipeline was made for the purposes of costing. The river can potentially supply water year-round, and accordingly a surge tank, rather than extensive water storage has been assumed at the project site. A water supply trade-off study is assumed to be undertaken as part of the PFS.

15.6 Tailings Storage Facility

The tailings storage facility will be located at the headwaters of the Clear Creek watershed, in a natural basin formed by the surrounding ridgeline. The TSF will have capacity to store the 1,582 Mt (~900M m<sup>3</sup>) of tailings produced, over the 30-year mine life, with an ultimate crest height of 6,950 ft. A starter dam will be constructed to elevation 6,300 ft to facilitate early mine production, followed by an additional five raises spread out over the life of the mine.

Tailings will be piped to the TSF and deposited as conventional slurry from the dam crest. The settled tailings density is assumed to be 1.6 tonnes/m3 and beach slope angles are assumed to be 1-2% for sub-aerially deposited tailings. The water reclaim pond will form against the natural terrain upstream of the dam. The tailings have not tested positive for potential acid generation; however, there is potential for metal leaching.

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15.6.1 Tailings Embankment

The embankment is designed as downstream construction for geotechnical stability, with the starter dam placed on bedrock. Slopes will be 2.5H:1V on the upstream and 3H:1V on the downstream. The crest of the embankment will be 170 ft wide to accommodate vehicles and equipment. Sort waste and run of mine waste constitute the construction material, transported by haul truck, and then compacted in three-foot lifts

A starter dam is designed to a crest height of 6,300 ft to facilitate the first two years of tailings. The foundation for the started dam will be cleared and overburden stripped to bedrock. The overburden will be stockpiled for use in future reclamation of the waste facilities. Five additional lifts will be constructed to an ultimate crest height of 6,950 ft. A freeboard of 25 ft will be maintained throughout the mine life.

A waste storage facility will buttress the downstream of the embankment up to 6,200 ft elevation providing additional geotechnical stability.

Figure 18-1 and Figure 18-2 show the TSF and WRF concepts.

![](ex96-1_045.jpg)

Source: SRK, 2019

*Note:* Tailings site, which is located on federal land, is shown in Figure 16-7 relative to property boundary

**Figure 15-1: CuMo Clear Creek TSF and WRF buttress**

![](ex96-1_046.jpg)

Source: SRK, 2019

**Figure 15-2: Cross-section A-A' through Clear Creek TSF and WRF buttress**

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15.6.2 Tailings Impoundment

The tailings impoundment will facilitate an ultimate capacity of 950M m<sup>3</sup> (900M m<sup>3</sup> required for LoM) of tailings assuming a density of 1.6 tonnes/m<sup>3</sup>. Construction of the impoundment area will include the removing of topsoil and vegetation and compacting the exposed fine-grained soils. Tailings will be discharged from the crest of the dam, limiting seepage through the dam. Due to the tailings deposition plan and overall configuration of the TSF it is not expected that a synthetic geomembrane will be required for containment of tailings.

16 Market Studies and Contracts

16.1 Market Analysis

For the purpose of this study, it has been assumed that two concentrates (copper and molybdenum) will be produced with the copper concentrate grading >23% copper sold and shipped to a smelter within the Pacific region, Japan, China, Korea or India for example. The molybdenum concentrate (grading >50% Mo) will be shipped to a roaster controlled by the project where additional credits may be achieved through the production of rhenium and sulfuric acid. Readers should note that no penalty elements have been identified to date. At the current time, no contracts exist for delivery of final product so the report assumes that products will be sold on the open market.

16.1.1 Treatment and refining costs

Treatment and refining charges, metal payability and settlement terms are assumed based on recent published values from current contracts with Asian smelters for the copper concentrate (Freeport-McMoran, First Quantum), while the costs associated with molybdenum are based on published toll milling charges which are higher than for the project's own roaster and therefore considered conservative. Details of these charges were previously reported in Table 16-3.

16.1.2 Metal Prices

Prices used are based on historical averages and reasonable future price projections published. Copper and silver are openly traded on a daily basis on terminal markets. Molybdenum pricing requires additional research and analysis, as the often-quoted London Metal exchange pricing does not reflect current pricing accurately. Roskill's and Platts show the trading price of molybdenum. The authors have identified that London Metals Exchange pricing can be many months out of date as metal buyers and sellers of molybdenum tend to avoid this relatively new market and associated fees.

CPM Group Molybdenum Market Outlook 2017 and 2018 shows the price of molybdenum is controlled by the largest producer which is China and their average cost to produce is between $12 and $13 per pound molybdenum. Their professional estimate of the price of molybdenum moving forward in the next five years is in the range of $12 to $20 per pound. The authors, for the purposes of this updated PEA, have assumed pricing of $15 per pound of molybdenum metal for project economics.

A significant proportion of world-wide molybdenum is produced as a byproduct of base-metals production. This can lead to a "disconnect" of supply and demand in the market, thus causing significant price volatility.

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17 Environmental Studies, Permitting, and Social or Community Impact

17.1 Environmental and Permitting

17.1.1 Past and Present Permitting for Exploration Project

ICMC's predecessors submitted an exploration plan of operations in 2007 to the USFS for exploration activities resulting in about 20 miles of drill road of which 4.7 miles were existing unauthorized drill roads from previous operators and 13.3 miles of new temporary roads. An environmental assessment was prepared by the USFS. ICMC was initially issued the Decision Notice /Finding of No Significant Impact (2011 DN/FONSI) by the USFS in February 2011. A lawsuit was filed against the project by the Idaho Conservation League in July 2011. On August 29, 2012, the United States District Court of the District of Idaho (Court) ordered, "that the Defendant Forest Service's decisions regarding groundwater made in the 2011 Environmental Assessment [be] vacated and the matter …remanded to the Forest Service for further proceedings consistent with this opinion…" (USFS 2018). The USFS moved forward with the preparation of a Supplemental Environmental Assessment to undertake further analysis of groundwater and, as needed, address new information/changed circumstances since the 2011 DN/FONSI was issued (e.g., change in status of the wolverine from a regional sensitive species to an Endangered Species Act proposed listed species) (USFS 2018).

The supplemental DN/FONSI (SDN/FONSI) addressing the 2011 Court order and other changes summarized above was signed on September 30, 2015. Plaintiffs from the 2011 lawsuit again filed a lawsuit challenging the 2015 supplemental decision in January 2016. The lawsuit challenged the analysis of potential effects of exploration activities to groundwater and Sacajawea's bitterroot, a sensitive plant species. The Court issued the memorandum decision and order in this lawsuit on July 11, 2016. The Court upheld the SDN/FONSI as to the NEPA challenges related to groundwater, so no further analysis was required. The Court found that the Forest Service's analysis and conclusions concerning Sacajawea's bitterroot to be arbitrary and capricious because it failed to re-examine the baseline Sacajawea's bitterroot population<sup>6</sup> in the project area following the 2014 Grimes Fire and subsequent 2016 Pioneer Fire (USFS 2018).

As occurred in response to the 2014 Grimes Fire, each resource area addressed in the 2015 *CuMo Exploratory Project Supplemental Environmental Assessment* were affected differently. Similar to the updates made in response to the 2014 Grimes Fire, updates were made in the 2018 *Supplemental Redline Environmental Assessment CuMo Exploration Project* (Supplemental Redline Environmental Assessment) to address the change in baseline conditions caused by the 2016 Pioneer Fire. The Supplemental Redline Environmental Assessment focused on the re-evaluation of the Sacajawea's bitterroot baseline, as well as other resources addressed in the 2015 Supplemental Environmental Assessment that were affected by the 2016 Pioneer Fire, to determine whether effects conclusions reached in the 2015 SEA that supported the 2015 SDN/FONSI were different or changed. The Supplemental Redline Environmental Assessment focused only on these topics because the Court determined that other concerns raised during the 2012 and 2015 lawsuits were properly addressed and the evidence and analysis in the 2015 Supplemental Environmental Assessment and supporting project record supported the determination that no significant impacts would occur to other resources from proposed management activities (USFS 2018).

<sup>6</sup> The 2017 Sacajawea's bitterroot survey was occurred within a ten-mile radius and located previously unknown populations totaling about 17,000 plants in six locations (USFS 2018).

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A number of environmental studies were undertaken for the 2011 *Environmental Assessment CuMo Exploration Project* and subsequently revised in 2015 and 2018. The Supplemental Redline Environmental Assessment incorporated habitat changes and resulting impacts related to the 2014 Grimes Fire and the 2016 Pioneer Fire. The following reports supported the preparation of the 2018 EA. Some of these updated reports and some earlier reports can be accessed on https://www.fs.usda.gov/project/?project=52875:

Stantec. Pollinator Habitat Assessment Report CuMo Exploration Project. February 2018

______, Pollinator Habitat Assessment Report CuMo Exploration Project. October 2018

______. Tetra Tech. *Sacajawea's Bitterroot and Other Sensitive Plant Survey Report*. Prepared for Forsgren Associates Inc on Behalf of American CuMo Mining Corporation in support of the CuMo Exploration Project. July 2015

______. *Sacajawea's Bitterroot Baseline Survey Report*. Prepared for Idaho CuMo Mining Corporation in support of the CuMo Exploration Project. July 2016

______. *Sacajawea's Bitterroot Baseline Survey Report*. Prepared for Idaho CuMo Mining Corporation in support of the CuMo Exploration Project. September 2017

______. *Sacajawea's Bitterroot Known Occurrence Survey Report*. Prepared for Boise National Forest in support of the CuMo Exploration Project. September 2017

USFS. Grimes Creek and Mohawk Gulch surface water sampling results, October 2017

______. *CuMo Exploration Project 2015 Supplemental EA and Decision Notice/FONSI Supplemental Information Report*. Prepared by the USDA FS, November 15, 2017

______. *Geologic Hazards, Soils, and Water Resources Technical Report for the CuMo Project*. February 2011, revised November 2018

______. *Fisheries Survey Specialist Report for the CuMo Exploration Project*. April 2011, revised November 2014 and September 2018

______. *Wildlife Specialist Report and Biological Evaluation for Threatened, Endangered, and Sensitive Terrestrial and Avian Species for the CuMo Exploration Project*. February 2011, revised February 2015 and September 2018

______. *Wolverine Addendum to the Wildlife Specialist Report and Biological Evaluation for Threatened, Endangered, and Sensitive Terrestrial and Avian Species for the CuMo Exploration Project*. August 2013, revised February 2015 and September 2018

U.S. Fish and Wildlife Service. CuMo Exploration Project, Updated list of threatened and endangered species, Consultation Code: 01EIFW00-2015-SLI-0236. January 28, 2015, updated March 21, 2018, and updated November 9, 2018.

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Vizgirdas, E.R. 016. CuMo Site Visit – 10/27/16: Pioneer Fire Effects in *Lewisia acajaweana* (LESA) Plant Conservation Area (PCA). Field notes prepared for and available through the Boise National Forest Supervisor's Office.

The USFS is currently in process of preparing the final decision which is expected in early 2020.

In June of 2017, the Boise National Forest issued ICMC a Road Use Permit to perform road maintenance on National Forest Service roads 382C, 397, and 397B using best management practices. The road maintenance work was completed in June and July of 2017 (USFS 2018).

17.2 Permitting for Mining Operations

Environmental permitting for mines in Idaho is predicated on land status. Because the mine will be located on public land administered by the U.S. Department of Agriculture – Forest Service, Boise National Forest, Idaho City Ranger District and patented claims (private land owned and controlled by ICMC), the permitting path will involve multiple state and federal agencies as shown in Table 20-1. A more complete list can only be prepared after the mining plan of operations is complete.

17.2.1 Federal Authorizations and Permits

Exploration and mining on lands administered by a federal agency, in this case the USFS, requires authorization to conduct surface-disturbing activities. Mining for locatable minerals on lands administered by the USFS are guided by 36 Code of Federal Regulations Part 228. These regulations require that a mining plan of operations (Plan) be prepared for any operation likely to cause significant disturbance of surface resources. The Plan must provide a detailed description of construction, operations, closure, and reclamation of the proposed mining operation as well as a reclamation cost estimate. Detailed technical documents to support the Plan can include but not be limited to engineering designs for the open pits, processing plants, waste rock dumps, tailings storage facilities, access roads, power supplies, and water supplies.

The "complete" Plan has to provide sufficient detail in order to identify and disclose potential environmental impacts during the mandatory NEPA review process, under which the potential impacts associated with project development are analyzed. The most likely level of NEPA analysis for this project will be an EIS which is a public disclosure document, not a permit or approval document. An EIS is intended to disclose any environmental impacts that may occur from the project and guide the decisions of the public land managers. The USFS will most likely require that an EIS be prepared for the project due to:

● Size of the operation

● If the proposed project is expected to have significant impacts to a critical elements or resources

● If a large potential for use of or impacts to surface water and/or groundwater exists

● If non-governmental organizations or public opposition is expected to be significant

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**Table 17-1: Major permits and authorizations that may be required<sup>1</sup>**

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| | |
|:---|:---|
| **Name** | &nbsp;&nbsp;**Authorizing Agency** |
| **Federal Permits and Authorizations** | **Federal Permits and Authorizations** |
| Mining Plan of Operations | &nbsp;&nbsp;USFS |
| EIS Review and Approval | &nbsp;&nbsp;USFS, U.S. Environmental Protection Agency, and U.S. Army Corps of Engineers |
| Approved Mining Plan of Operations/Record of Decision | &nbsp;&nbsp;USFS |
| Rights-of-Way for water/power/access corridors outside of Mining Plan of Operations boundary | &nbsp;&nbsp;USFS and/or other federal and state agencies |
| Clean Water Act Section 404 Wetland Permit | &nbsp;&nbsp;U.S. Army Corps of Engineers |
| Threatened and Endangered Species Consultation and Compliance with the Endangered Species Act | &nbsp;&nbsp;U. S. Fish and Wildlife Service |
| Compliance with the Bald Eagle Protection Act | &nbsp;&nbsp;U. S. Fish and Wildlife Service |
| Permit for Purchasing Explosives | &nbsp;&nbsp;Department of Homeland Security |
| Mine Safety | &nbsp;&nbsp;Mine Safety and Health Administration |
| **Idaho State Permits and Authorizations** | **Idaho State Permits and Authorizations** |
| Stream Channel Alteration Permit | &nbsp;&nbsp;Idaho Department of Water Resources |
| Water Right Appropriation | &nbsp;&nbsp;Idaho Department of Water Resources |
| Dam Safety Permit | &nbsp;&nbsp;Idaho Department of Water Resources |
| Reclamation Plan Approval | &nbsp;&nbsp;Idaho Department of Lands |
| Title V Operating Permit | &nbsp;&nbsp;Idaho Department of Environmental Quality – Air Quality Division |
| Approval of Plans for a New Sewage Treatment Facility | &nbsp;&nbsp; Idaho Department of Environmental Quality – Water Quality Division |
| Compliance with the Safe Drinking Water Act | &nbsp;&nbsp; Idaho Department of Environmental Quality – Water Quality Division |
| Clean Water Act 401 Certification | &nbsp;&nbsp; Idaho Department of Environmental Quality – Water Quality Division |
| Idaho Point Discharge Elimination Permit | &nbsp;&nbsp; Idaho Department of Environmental Quality – Water Quality Division |
| Solid Waste Management | &nbsp;&nbsp;Idaho Department of Environmental Quality – Waste Management & Remediation Division |
| Transportation and Storage of Hazardous Materials, Chemicals and Fuel Permits | &nbsp;&nbsp;Idaho Department of Transportation |
| Consultation with State Historic Preservation Officer | &nbsp;&nbsp;Idaho State Historic Preservation Office |
| **Local** | **Local** |
| Building Permits | &nbsp;&nbsp;Boise County |
| Road Maintenance Agreement | &nbsp;&nbsp;Boise County |
| Conditional Use Permit | &nbsp;&nbsp;Boise County |

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<sup>1</sup> No permit applications in relation to mining have been filed to date.

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An EIS must consider possible impacts to the following critical elements and resources:

● **Critical elements** – Air quality, aquatics, floodplains, cultural resources, environmental justice, migratory birds, Native American religious concerns, non-native invasive species, threatened and endangered species, solid and hazardous wastes, hydrology including geochemistry, wetlands, and wilderness.

● **Resources** – Soils, geohazards, roadless areas, vegetation, forestry, geology/mineralogy, paleontology, hazardous materials, lands and access, livestock/grazing, recreation, scenic values and noise, socioeconomics, and transportation.

The USFS will require that baseline environmental surveys be conducted which will likely be above and beyond those conducted for the exploration activities. On-the-ground surveys will typically include: cultural resources; vegetation and animal biological resources including threatened, endangered, and sensitive species and migratory birds; soils resources; noxious and invasive species; jurisdictional waters; and hydrology, including geochemistry. These surveys, prepared in accordance with federal and state protocols, will identify the presence or absence of a particular resource and be used as the baseline to assess potential impacts. The same level of study will be required for any rights-of-way for new/improved access roads and water/power line corridors outside of the Plan boundary.

Other resources that will likely have to be addressed via desktop studies and stakeholder consultation include but are not limited to: Native American religious concerns, environmental justice, paleontology, livestock grazing, recreation, wilderness, and lands with wilderness characteristics.

The requirements of the Plan document are fairly well-defined. However, virtually all of the baseline data collection necessary for the impact assessment phase of the project will need to be collected, analyzed and interpreted in conjunction with the USFS in order to ensure that the information collected meet the data quality objectives of the program. A listing of the types of studies that should be undertaken during the mine planning phase and in advance of the NEPA process and in support of the acquisition of various other permits, could include:

● Biological resources

● Cultural resources of all areas proposed for disturbance unless the area has been surveyed within the past ten years

● Hydrogeological assessment (may include impact modeling including potential for pit lakes)

● Jurisdictional waters and wetlands

● Geochemical characterization of mill feed, waste rock, spent mill feed)

● Air quality/meteorological parameters

● Traffic study

● Environmental justice/socioeconomics

The length of time to prepare an EIS varies with the complexity of the project. The USFS is in the process of revising its NEPA procedures to reduce the time and cost of project analysis and decision making, increasing the scale of analysis, accomplishing more work on the ground, and creatively designing new ways to care for the land. The project proponent is also expected to enter into a cost recovery agreement with the USFS for the development of the EIS for specialist time as well as pay a third-party contractor to prepare the EIS.

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ICMC will have to provide adequate operational and baseline environmental information for the USFS to analyze potential environmental impacts as required by the NEPA and to determine if the mining plan of operations will prevent significant impacts to the environment. Insufficient baseline data will slow down the EIS process. The same types of baseline information and level of detail collected for the proposed mine will also have to be collected for the alternatives analyzed in the EIS. Baseline information will also have to be developed for rights-of-way for power and water line corridors, and access roads where applicable.

During the EIS process, applicant-committed environmental protection measures and mitigation measures will be identified for the various resources and become part of the mining plan of operations and record of decision. These measures will be used to monitor and mitigate potential impacts.

Other federal agencies, namely the U.S. Army Corps of Engineers, Environmental Protection Agency, and the U. S. Fish and Wildlife Service, may be involved in the EIS process as cooperating agencies; state agencies can also be cooperating agencies. The U.S. Army Corps of Engineers may require permitting under Section 404 of the Clean Water Act if jurisdictional waterways are affected by the mine development. The U.S. Fish and Wildlife Service will become involved if the mine has the potential to affect threatened and endangered species.

17.2.2 Idaho State Authorizations and Permits

As shown in Table 20-1, a number of Idaho state authorizations and permits will also be required from at least five different Idaho state departments and divisions. Much of the information developed for the federal permitting process can be used to obtain the state permits. Idaho agencies typically process complete applications within the EIS process time frame.

17.2.3 Boise County Permits

The Boise County Zone and Development Ordinance is applicable, and a Conditional Use Permit is required for mining activities on federal land located in Boise County.

17.3 Monitoring

Environmental resources within the project area will be monitored prior to mine construction to develop baseline conditions, and during mining operations, reclamation, closure, and post-closure. Resources typically monitored include: climate and air quality; surface and ground water quality and quantity; geochemistry and management of ore, waste rock, and tailings; fisheries, wildlife, noxious weeds and invasive species; effectiveness of stormwater controls, and reclamation success.

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During the federal and state permitting processes, ICMC will develop specific monitoring plans that incorporate state and federal monitoring requirements. The monitoring plans must meet the following objectives:

● Demonstrate compliance with the approved plan of operations and other federal or state environmental laws and regulations.

● Provide early detection of potential problems, and to supply information that will assist in directing corrective actions should they become necessary.

● Provide details on type and location of monitoring devices, sampling parameters and frequency, analytical methods, reporting procedures, and procedures to respond to adverse monitoring results.

The TSF will typically be monitored during construction, operation, closure, and post-closure to verify compliance with design specifications, operating conditions, water management, water quality, and reclamation success as required by Idaho regulations and USFS authorizations. Geochemical characterization of waste rock, ore, and tailings will also be undertaken prior to and during mining to guide dump and stockpile designs, stormwater controls, and monitoring. Post-closure monitoring of the waste rock dumps and TSF will be performed in compliance with federal and state permits.

Mine tailings impoundment structure designs in Idaho are regulated under IDAPA 37.03.05 by the Idaho Department of Water Resources. ICMC will have to post a bond to provide a means by which the TSF can be placed in a safe maintenance-free condition if abandoned by the owner without conforming to the approved abandonment.

17.4 Reclamation

17.4.1 Federal Reclamation Performance Bond

The USFS will require a reclamation performance bond under 36 Code of Federal Regulations 228A that calculates costs based on the assumption that the operator defaults, and the USFS must complete reclamation activities. Idaho has a memorandum of understanding which allows the state to recognize valid bonds held by the USFS as long as such bonds are in an amount as great as or greater than the required state bond. The USFS will accept the following bond instruments: negotiable Treasury bills and notes which are unconditionally guaranteed as to both principle and interest in an amount equal at their par value to the penal sum of the bond; or certified or cashier's check, bank draft, post office money order, cash, assigned certificate of deposit, assigned savings account, blanket bond, or an irrevocable letter of credit equal to the penal sum of the bond. The bond will have to be posted prior to surface disturbance occurring.

17.4.2 State Reclamation Performance Bond

A reclamation plan and reclamation cost estimate will also have to be prepared for the project in accordance with Idaho Administrative Procedures Act 20.03.02. Prior to beginning any surface mining on a mine panel covered by a Plan, an operator must submit to the director, on a surface mining reclamation bond form, a performance bond meeting the requirements of this rule. The amount must be the amount necessary to pay the estimated reasonable costs of reclamation required under the reclamation plan for each acre of land to be affected during the first year of operation, plus ten percent. The actual cost of reclamation must not exceed $15,000 per acre of land to be affected. The reclamation bond may be in the following forms: corporate surety bond, collateral bond, or a letter of credit. The bond will have to be posted prior to surface disturbance occurring.

If ponds or lakes are created during the mining process and will remain after reclamation is completed, the Idaho Department of Water Resources requires the operator or landowner to obtain a water right. If a water right cannot be obtained prior to a plan being submitted, then the reclamation plan must include backfilling to an elevation above the local ground water table. Bond calculations must include those backfilling costs.

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17.5 Social and Community Impact

ICMC has initiated consultation with various stakeholders namely: government officials at all levels and local communities in regard to the potential social and community impacts or improvements that may occur as the project progresses. All groups are provided regular updates as the project is proceeding *(*Hilscher et al, 2018).

The project is active in all local communities and for example has been in discussion and committed, subject to proceeding to mine development, to the restoration and reclamation work of the contaminated placer gold dredge tailing that currently are present in the Grimes Creek. Local communities and officials have come out in strong support of the project and are actively working with the project on both the Grimes Creek project and future planning (Hilscher et al, 2018). The contaminated dredge tailings are not located on the CuMo property that is the subject of this technical report. There are no negotiations or agreements with the local communities at this time.

Federal and state planning and permitting processes mandate that the public have an opportunity to provide input. ICMC, in coordination with federal and state agencies, will engage with the public during these mandated public scoping and comment periods. Furthermore, ICMC will have the opportunity to engage with stakeholders and local communities outside of the permitting processes in order to define potential infrastructure and community support needs. Until ICMC presents an actual mining plan of operations for community feedback, there is no additional reasonably available information to disclose.

Typically, small communities have competing social concerns when a mine is planned in the vicinity, i.e., the need for jobs versus changes to the fabric of the community resulting from an influx mining and contractor employees. Potential social issues that could arise from the CuMo project could generally include:

● A shortage of temporary and permanent housing

● Insufficient of capacity of schools, health care, law enforcement, solid waste disposal, and municipal infrastructure

● Insufficient road network capacity leading to traffic slowdowns and degradation of road surfaces

● Increases in crime, drug abuse, and alcoholism

The public will have multiple opportunities to provide comments during the federal and state scoping and comments periods. In the past, ICMC has engaged with the nearby communities concerning the exploration project. This practice is expected to continue during mine development which will allow ICMC and the communities to identify salient issues and work towards resolution.

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17.6 Potential Issues

The 2011 Environmental Assessment, 2015 Supplement Environmental Assessment, and the 2018 Supplemental Redline Environmental Assessment identified resource values that occurred or had the potential to occur in the CuMo project area that may affect mine permitting by changing the habitat and/or affecting individuals. These resource values included:

● The presence of Sacajawea's bitterroot, a sensitive plant species. Just over two dozen populations of Sacajawea's bitterroot are known to exist, roughly three-fourths of them on the Boise National Forest (USFS 2019).

● The potential for a number of rare plant habitat for other sensitive and watch plant species exists.

● The Canada lynx (*Lynx canadensis)* is listed under the Endangered Species Act with potential habitat in the project area.

● The wolverine (*Gulo gulo*) was proposed for listing as a threatened species under the Endangered Species Act in 2016 with potential habitat in the project area.

● Other USFS sensitive species have potential habitat within the project area: boreal owl (*Aegolius funereus*), flammulated owl (*Psiloscops flammeolus*), great gray owl (*Strix nebulosi*), mountain quail (*Oreortyx pictus*), northern goshawk (*Accipiter gentilis*), white-headed woodpecker (*Picoides albolarvatus*), grey wolf (*Canis lupus*), bull trout (*Salvelinus confluentus),* and wolverine.

Fresh water supply from surface or ground water will likely be one of the most difficult hurdles to overcome. An estimated 30,000 gpm of fresh water could be required. All water in Idaho is owned by the public; holding a water right does not give the water user ownership of the water. A water right simply gives the user the right to divert water. All water rights in Idaho exist for beneficial uses. The project will be located in Basin 65 which includes the entire Boise River Drainage (IDWR, 2018).

At this time and based on the undertaken studies, no issues could be identified that would materially impact the ability to eventually extract mineral resources at the project; however, ICMC should be prepared to address potential issues associated with but not limited to:

● Water including supply, water rights, and delivery system and potential impacts

● Water management (stormwater, contact/non-contact water, water quality)

● Geochemistry of ore, waste rock, tailings solids and solution, and post-mining pit lake

● Management of ore stockpiles, waste rock dumps, and tailings during operations, closure, and post-closure

● Threatened, endangered, and special status plant and animal species

● Jurisdictional waters

● Transportation and access

● Reclamation and closure

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Any issues identified during the permitting process will have to be analyzed, disclosed, and potentially mitigated.

The mine would be located in an area used for weekend summer dispersed recreation and fall big-game hunting and is well-known in the Boise area. A majority of the previous public scoping comments to the environmental assessments were against mining activities (although the commenters were directed to address the proposed action, which was the exploration project). Organized environmental groups such as the Idaho Conservation League and Sierra Club are keeping their constituents informed citing issues of potential pollution of the Boise river which supplies drinking water to the city of Boise. As such, well-funded, organized opposition to mining activities should be anticipated.

However, under the 1872 Mining Law as amended, ICMC has the legal right to develop the mineral resources on their mining claims. The USFS has a requirement to manage ICMC's activities in accordance with its mining regulations at 36 CFR 228A and must ensure compliance with the requirements of the National Environmental Policy Act (. As defined in law and regulations, the USFS is limited in that it may not deny ICMC's mining plan of operations provided that the activities proposed are reasonably incident to mining, not needlessly destructive, and comply with applicable federal, state, and local laws and regulations. The USFS does not have the authority to impose unreasonable requirements that would have the effect of denying the statutory right to explore and develop the mineral resource, provided the mining plan of operations otherwise meets the intent of applicable laws and regulations (USFS 2018).

At this time, a detailed discussion on mine closure and reclamation cannot be completed. However, ICMC will be required to post reclamation bonds to cover direct and indirect costs related to site stabilization, water treatment as needed, post-reclamation and post-mining monitoring, and public safety.

17.7 Mine Closure – General Discussion

There are comprehensive Idaho and USFS closure and reclamation requirements that the project proponent plan for closure and reclamation of mining disturbances on all affected land. Regulatory authorities will require that a surety or bond be posted sufficient to cover third-party costs to physically and chemically stabilize the site prior to the onset of mining. A reclamation cost estimate will have to be prepared that will be approved by state and federal agencies prior to any mining surface disturbance; the bond amount will have to be posted using an approved financial instrument. The financing costs associated with such a surety have not been modelled. The initial submissions will require a detailed discussion on how the mining disturbance will be physically and chemically stabilized and the duration of the closure process as reclamation and closure will be analyzed in the EIS.

The plans for final closure must address the long-term potential for surface and ground water contamination from the closed facility as well as stabilization of slopes, soils, and vegetation on mining disturbances. Typically, the closure permitting process involves a decommissioning plan or a permanent capping plan along with a post-closure monitoring commitment. Permit applicants should consider ways of closing a facility which will eliminate the possibility of future surface and ground water contamination and thereby eliminate the need for long-term water treatment and monitoring.

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After mining operations cease, all buildings, infrastructure, and facilities from the CuMo Mine that have not been identified for a specific post-mining use, must be removed from the site during the reclamation, salvage, and site demolition phase. These activities will generally include, but not be limited to the:

● Regrading to a stable configuration, placement of growth media, and seeding of all disturbed surfaces without a postmining use

● Removal of surface pipelines and power lines, and the secure and stable abandonment of underground pipelines (including removal if required)

● Demolition of process facilities and salvage/removal of equipment and residual reagents for proper disposal

● Managing the drain-down solution to reduce the volume which may include the construction and operation of an evapotranspiration cell. Depending on site conditions, a water treatment plant and discharge of treated water may be necessary to prevent unauthorized discharges of mine water not meeting water quality standards

● Ongoing monitoring of closure compliance for surface and ground water quality, soil stabilization, and revegetation success

● Maintaining public safety features such as warning signs, pit berms, and other barriers

To the extent practicable, reclamation and closure activities will be conducted concurrently with mining and disturbance to: reduce the overall final reclamation and closure costs, minimize environmental liabilities, and limit exposure to surety or bonding costs. At the current phase of the CuMo project, a site-specific closure cost estimate has not yet been developed. An approximate closure cost of $150M has been assumed for preliminary economic evaluation. This estimate is not based on site-specific considerations and should be considered order-of-magnitude only within the accuracy of a PEA level study.

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18 Capital and Operating Costs

18.1 Capital Cost Estimate

A summary of initial capital costs is provided in Table 21-1.

**Table 18-1: Summary of initial capital costs**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Capital Costs** | &nbsp;&nbsp;**($M)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine - Equipment, etc. | &nbsp;&nbsp;344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized Mine Operating Costs | &nbsp;&nbsp;330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sort Plants | &nbsp;&nbsp;160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mill | &nbsp;&nbsp;1293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roaster | &nbsp;&nbsp;208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tailings | &nbsp;&nbsp;22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infrastructure | &nbsp;&nbsp;76 |
| &nbsp;&nbsp;**Total Initial Capital Directs** | &nbsp;&nbsp;**2433** |
| &nbsp;&nbsp;**Contingency on Initial Capital Directs (excl Mining)** | &nbsp;&nbsp;**176** |
| &nbsp;&nbsp;**Indirects** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine | &nbsp;&nbsp;15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plant (incl. Sort) | &nbsp;&nbsp;354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roaster | &nbsp;&nbsp;81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infrastructure | &nbsp;&nbsp;14 |
| &nbsp;&nbsp;**Total Initial Capital Indirects** | &nbsp;&nbsp;**464** |
| &nbsp;&nbsp;**Sustaining Capital** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine | &nbsp;&nbsp;428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sort Plants | &nbsp;&nbsp;42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mill | &nbsp;&nbsp;349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roaster | &nbsp;&nbsp;56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tailings | &nbsp;&nbsp;84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infrastructure | &nbsp;&nbsp;10 |
| &nbsp;&nbsp;**Total Sustaining Capital** | &nbsp;&nbsp;**970** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closure and Reclamation | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;**Total Capital Costs** | &nbsp;&nbsp;**4193** |
| &nbsp;&nbsp;**Initial Capex** | &nbsp;&nbsp;**3071** |
| &nbsp;&nbsp;**Sustaining and Expansion Capex** | &nbsp;&nbsp;**972** |
| &nbsp;&nbsp;**Closure** | &nbsp;&nbsp;**150** |

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18.1.1 Mining Capital Costs

The author developed the LOM schedule for the CuMo project, and based on this, derived equipment fleet requirements (Table 16-5). A breakdown of capital costs by equipment type of the primary mine equipment is provided in Table 21-2. These are presented here exclusive of contingency for clarity.

In addition to the primary mine equipment, ancillary equipment costs (light vehicles, maintenance vehicles, etc.) are factored at 5% of the primary equipment cost. This totaled $16.8M. Other capital costs for haul roads, earthworks, and technical equipment totaled $21.5M. Note all costs here are before contingency.

**Table 18-2: Mine primary equipment capital costs**

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| | | |
|:---|:---|:---|
| **Equipment Type** | **Units** | **Initial Capital Cost** |
| &nbsp;&nbsp;Rotary Blast Hole Drill | $M | 28.6 |
| &nbsp;&nbsp;Electric Cable Shovel | $M | 97.7 |
| &nbsp;&nbsp;Autonomous Trucks | $M | 114.4 |
| &nbsp;&nbsp;Track Dozer | $M | 11.0 |
| &nbsp;&nbsp;Rubber Tire Dozer | $M | 5.8 |
| &nbsp;&nbsp;Grader | $M | 6.5 |
| &nbsp;&nbsp;Water Truck | $M | 8.7 |
| &nbsp;&nbsp;Backhoe | $M | 2.2 |
| **Total** | **$M** | **274.9** |

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The total initial mine equipment direct capital cost including the above costs and contingency is estimated at $345M as shown in Table 21-1.

Mine indirects were estimated at $15M.

The mining capitalized pre-production pre-stripping costs of $329M are incurred in the two years of mining activity prior to processing facility commissioning.

18.1.2 Processing Capital Costs

A summary of the estimated capital cost for the processing and on-site ancillary facilities is provided in Table 21-3 and for the roaster in Table 21-4.

The CuMo circuit capital cost estimate for the process plant, roaster and related ancillary infrastructures was derived by factoring the mechanical equipment costs, which are defined in the concept study mechanical equipment list (Ausenco, 2009). Equipment costs were based on recent equipment quotations, or from previous projects. The cost estimates for all other disciplines were factored from the mechanical equipment list.

Indirect costs, including project contingency have been provided for in the capital cost estimates. Indirect costs have been estimated based on a factor of the total direct costs established from previous projects.

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**Table 18-3: Summary of plant initial capital cost estimate**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Units** | &nbsp;&nbsp;**150 ktpd** |
| &nbsp;&nbsp;**Direct Costs** | &nbsp;&nbsp;**Direct Costs** | &nbsp;&nbsp;**Direct Costs** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Site Development | &nbsp;&nbsp;$M | &nbsp;&nbsp; 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sorting Plant | &nbsp;&nbsp;$M | &nbsp;&nbsp; 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrator | &nbsp;&nbsp;$M | &nbsp;&nbsp; 1005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrator Services | &nbsp;&nbsp;$M | &nbsp;&nbsp; 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrator Infrastructure | &nbsp;&nbsp;$M | &nbsp;&nbsp; 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Molybdenum Plant | &nbsp;&nbsp;$M | &nbsp;&nbsp; 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tailings Line | &nbsp;&nbsp;$M | &nbsp;&nbsp; 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spares and First Fill | &nbsp;&nbsp;$M | &nbsp;&nbsp; 38 |
| &nbsp;&nbsp;**Total Direct Costs** | &nbsp;&nbsp;**$M** | &nbsp;&nbsp; **1453** |
| &nbsp;&nbsp;**Indirect Costs** | &nbsp;&nbsp;**Indirect Costs** | &nbsp;&nbsp;**Indirect Costs** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary Construction Facilities | &nbsp;&nbsp;$M | &nbsp;&nbsp; 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EPCM | &nbsp;&nbsp;$M | &nbsp;&nbsp; 222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-production Owner's Costs | &nbsp;&nbsp;$M | &nbsp;&nbsp; 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project Fee | &nbsp;&nbsp;$M | &nbsp;&nbsp; 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingency | &nbsp;&nbsp;$M | &nbsp;&nbsp; 139 |
| &nbsp;&nbsp;**Total Indirect Costs** | &nbsp;&nbsp;**$M** | &nbsp;&nbsp; **492** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**$M** | &nbsp;&nbsp; **1944** |

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**Table 18-4: Summary of roaster initial capital cost estimate**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Units** | &nbsp;&nbsp;**150 kt/d** |
| &nbsp;&nbsp;**Direct Costs** | &nbsp;&nbsp;**Direct Costs** | &nbsp;&nbsp;**Direct Costs** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Site Works | &nbsp;&nbsp;$M | &nbsp;&nbsp; 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrate Feed Handling | &nbsp;&nbsp;$M | &nbsp;&nbsp; 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Molybdenum Roaster | &nbsp;&nbsp;$M | &nbsp;&nbsp; 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rhenium Recovery | &nbsp;&nbsp;$M | &nbsp;&nbsp; 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acid Plant | &nbsp;&nbsp;$M | &nbsp;&nbsp; 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas Scrubbing | &nbsp;&nbsp;$M | &nbsp;&nbsp; - |
| &nbsp;&nbsp;**Total Direct Costs** | &nbsp;&nbsp;**$M** | &nbsp;&nbsp; **208** |
| &nbsp;&nbsp;**Indirect Costs** | &nbsp;&nbsp;**Indirect Costs** | &nbsp;&nbsp;**Indirect Costs** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary Construction Facilities | &nbsp;&nbsp;$M | &nbsp;&nbsp; 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EPCM | &nbsp;&nbsp;$M | &nbsp;&nbsp; 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-production Owner's Costs | &nbsp;&nbsp;$M | &nbsp;&nbsp; 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project Fee | &nbsp;&nbsp;$M | &nbsp;&nbsp; 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingency | &nbsp;&nbsp;$M | &nbsp;&nbsp; 21 |
| &nbsp;&nbsp;**Total Indirect Costs** | &nbsp;&nbsp;**$M** | &nbsp;&nbsp; **102** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**$M** | &nbsp;&nbsp; **309** |

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**Assumptions**

Geotechnical

● A detailed geotechnical and drainage assessment of the proposed site is not yet available. For the purpose of the study, no allowance for special ground preparation has been made.

Base Date and Exchange Rates

● The authors have reviewed, verified and confirmed all information is valid at the date of the report that cost estimate is current. The estimate and all costs are expressed in 2019 United States dollars. In the verification process, comparative quotes were solicited from appropriate vendors for updated equipment costs from the initial 2009 estimate produced by Ausenco. These were adjusted by exchange factors of 1.25 CAD to 1 USD or 1.10 CAD to 1 Euro when necessary.

Electricity Supply

● It is assumed that power is available to satisfy demand requirements for the proposed plant. Costs associated with power distribution to the site have been included within this estimate as detailed below. All other costs of power supply, including reticulation to the assumed take-off point on Highway 21, all land access, and licensing and permitting are excluded. It should be noted Idaho Power is currently in the final stages permitting a brand new power line extension from Horseshoe Bend to Garden Valley. This power line comes within 10 miles of the property and should reduce the costs associated with power.

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● High and medium voltage switch gear and distribution within the battery limits have been included in the estimate. Individual drive switchgear and cabling have been included as part of the area factors.

Water Supply

● A water supply capable of supplying the required demand of the processing plant is assumed to be available. For this reason, costs associated with any increase in water supply have not been included within this estimate. The costs associated with water (and air) reticulation within the scope have been estimated based on the area piping factors.

**Contingency**

The estimate currently includes an amount of 10% of the total cost of the fixed plant as an estimate recommended for contingency.

**Owner's Costs**

Owner's costs have been excluded from this estimate.

**Project Fee**

A project fee of 3% of the direct costs has been included.

**Escalation**

Escalation provision for currency inflation past Q1 2020 has not been included in the estimate.

18.1.3 Tailings Storage Facilities Capital Costs

The capital cost estimate for the TSF makes provision for constructing the initial starter dam of the TSF to an elevation of 6,300 ft, which is sufficient to store the first two years of tailings production. The tailings dam would be constructed using run of mine waste and sort waste and compacted in one-meter lifts. As the waste is already being delivered to the footprint for disposal, the only cost included for placement in the estimate is to cover the incremental compaction costs. No allowance was provided for spreading the material as it is assumed that the dozers already on the waste disposal area will handle that activity. The cost estimates are for an unlined TSF and it is estimated that lining the TSF would cost an additional 20 to 30 percent of the unlined construction cost.

An allowance has also been made for excavating the overburden encountered beneath the starter dam footprint to ensure a good foundation for the dam. The presence of unsuitable foundation soils and the soils areal extent and depth will be evaluated in future studies by geotechnical site investigations. The cost estimates will be adjusted based on the results of the investigations. This material would be stockpiled for use in reclamation activities later on in the mine life. Costs were also estimated for the general foundation clearing within the footprint of the tailings impoundment in advance of waste placement.

The storage capacity of the TSF will be increased through five additional raises of the dam in years 2, 5, 10, 15 and 20 to an ultimate elevation of 6,950 ft. Sustaining capital has been estimated for each of these raises to accommodate compaction of the waste rock in the compacted dam zone as foundation preparation in years 2 and 5 when the footprint is undergoing expansion to the south.

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18.1.4 Capital Cost Estimate Exclusions

No specific allowance or estimate was made for items such as foreign currency fluctuations, escalation, etc., which will be reviewed in greater detail in the pre-feasibility study and subsequent feasibility study. The following items are excluded from this study:

● Power generation (power is assumed to be purchased)

● Project acquisition costs

● Pre-feasibility study costs

● Feasibility study costs

● Legal fees

● Corporate costs

● Exploration, geotechnical and sterilization costs

● Water compensation

● Bore field or raw water dam

● Construction camp

● Plant or infrastructure outside of the battery limits

● All Owner payable taxes, government and other charges (operating cost not capital)

● License and royalty fees

● No allowances are made for special incentives (schedule, safety or others)

● Sustaining or deferred capital costs (operating cost not capital)

● Cost changes due to currency fluctuation

● Force Majeure issues

● Owners cost prior to project approval

● Sunk cost

● Future scope changes

● Project interest / financing costs

● Project insurances

● Permits / cost of permits

● Mine / plant closure and rehabilitation costs (included in financial model)

● Training of operations personnel

● Working capital

● Land acquisition

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● Environmental consultants, studies, permitting and mitigation

● Any operational insurance such as business interruption insurance & machinery breakdown, etc

● Costs for community relations and services

● Any bridges or tunnels, permanent or temporary

● Maintenance of all roads and bridges and facilities mentioned above

● Additional test-work

● Provision of hardstand for the construction site area

● Rubbish disposal

● Dust suppression

● Excavation of rock

● Site drainage

18.2 Operating Cost Estimate

The total LOM operating costs for the CuMo project are summarized in Table 21-5.

**Table 18-5: Summary of LOM operating costs**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Operating Costs** | &nbsp;&nbsp; **LOM**<br> **($M)** | &nbsp;&nbsp; **Unit Rates**<br> **($/t)** | &nbsp;&nbsp; **Unit Rates**<br> **($/lb Mo.Eq.)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mining | &nbsp;&nbsp;5797 | &nbsp;&nbsp;$3.66 | &nbsp;&nbsp;$2.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bulk Sort | &nbsp;&nbsp;778 | &nbsp;&nbsp;$0.49 | &nbsp;&nbsp;$0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Middling Sort | &nbsp;&nbsp;192 | &nbsp;&nbsp;$0.12 | &nbsp;&nbsp;$0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Processing | &nbsp;&nbsp;7042 | &nbsp;&nbsp;$4.45 | &nbsp;&nbsp;$3.63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sort Waste Delivery | &nbsp;&nbsp;395 | &nbsp;&nbsp;$0.25 | &nbsp;&nbsp;$0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G&A | &nbsp;&nbsp;805 | &nbsp;&nbsp;$0.51 | &nbsp;&nbsp;$0.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Capitalized Operating Costs | &nbsp;&nbsp;-329 | &nbsp;&nbsp;-$0.21 | &nbsp;&nbsp;-$0.17 |
| &nbsp;&nbsp;**Total Operating Costs** | &nbsp;&nbsp;**14680** | &nbsp;&nbsp;**$9.28** | &nbsp;&nbsp;**$7.57** |

---

The estimate was prepared with a base date of July 2019 to an accuracy level of ±40%. Various parties contributed to the estimates as detailed below. These estimates exclude sustaining capital expenditure requirements but include realization costs associated with sale of final products.

18.2.1 Mine Operating Costs

The author estimated the mine operating costs based on comparison to similar projects. Site-specific haulage profiles were considered to ensure that short haul options into Charlotte Gulch in early years are reflected as well as the longer hauls to Clear Creek for TSF construction and WRF disposal.

The non-haulage operating costs are estimated at approximately $0.70/t. Adding haulage gives an average mine operating cost of $1.28/t, ranging from $0.91 to $1.87/t of material moved. Mine operating costs per ton of material processed is $3.66. The total LOM operating cost is estimated at $5,797M. Note that $329M of these mine operating costs in the pre-production period were capitalized.

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18.2.2 Sort Plant Operating Costs

For the bulk sorting system, a unit cost of $0.10/t was assumed for each stage of sorting. To this is added $0.20/t for primary crushing, giving a LOM total operating cost of $778.1M.

For the particle sorting system, a unit cost of $0.30/t of material fed was assumed, giving a LOM operating cost of $192.1M.

18.2.3 Mill Operating Costs

The total process operating costs have been developed on an annual basis throughout the life of the mine. Cost estimates were generated the selected throughput/mill feed scenario based on the metallurgical samples tested by SGS Canada Inc. These have been combined, using the CuMo mine plan to produce LOM and annual operating estimates. A summary of the average operating costs per ton of mill feed treated for the project is outlined in Table 21-6. The costs have been divided into the key cost centers.

**Table 18-6: Estimated plant average operating costs**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Units** | &nbsp;&nbsp;**150 kt/d** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Labor | &nbsp;&nbsp;$/ton | &nbsp;&nbsp;0.19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Power | &nbsp;&nbsp;$/ton | &nbsp;&nbsp;1.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance Materials and Services | &nbsp;&nbsp;$/ton | &nbsp;&nbsp;0.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reagents and Consumables | &nbsp;&nbsp;$/ton | &nbsp;&nbsp;1.74 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**$/ton** | &nbsp;&nbsp;**4.45** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Labor** 

Site labor costs from the overall workforce schedule of personnel numbers, positions, salaries and overhead costs based on projects of similar size and location. Total employee costs have been developed by applying on-cost factors to base salaries. The on-costs include the cost of travel, overtime and shift premiums, leave pay, bonuses, pension and superannuation benefits, insurance coverage, educational assistance and supply of uniforms and personal protective equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Power** 

Power is to be supplied to the mine site from the local power grid, provided by Idaho Power. Unit power cost rates have been supplied by CuMoCo at $0.063/kWh, based on information from the Thompson Creek Mine (Thompson Creek Mine Model, MineCost (2009)). This has been confirmed by the authors with large scale commercial rates (2018) in Idaho being as low as $0.055/kWh. Thus using $0.063/kWh can be considered reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Maintenance Consumables and Services** 

Maintenance consumable costs were estimated as a percentage of the direct installed capital cost (percent factor). The factor is based on actual data from similar projects and takes into consideration an assumed bond abrasion index of 0.25.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d)** **Reagents and Consumables** 

Reagent consumptions have been estimated from metallurgical test-work or comparable operations. Although reagent consumptions will vary according to metallurgical and production parameters, the average predicted consumptions, by material type, have been used for this exercise.

Budget quoted costs have been used for major plant reagents. Unit costs include an allowance for delivery to site but do not include duties, brokerage, handling charges or applicable taxes.

18.2.4 General Site and Administrative Costs

The author has assumed a general site and administrative (G&A) cost of $0.50/t mill feed based on comparison to similar size operations. At the modelled throughputs, this amounts to approximately $27.5M per year at full production.

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19 Economic Analysis

19.1 Cautionary Statements

19.1.1 Certainty of Preliminary Economic Assessment

The preliminary economic assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

19.1.2 Mineral Resources are Not Reserves

Mineral resources are not mineral reserves and do not have demonstrated economic viability.

19.2 General

Economic analysis was undertaken using a discounted cashflow model that was constructed in MS EXCEL®. The model used constant (real) 2019 United States dollars and modelled the project cashflows in annual periods.

The model assumes a 36-month physical construction period.

The model does not place the project within an estimated calendar timeline and is intended only as an indication of the economic potential of the project to assist in investment decisions. Between the date of this report and the commencement of construction, a period of time sufficient for the pre-feasibility and feasibility study work programs to be executed must be allowed.

Important Note: The economic model considered only cashflows from the beginning of actual construction forward. Schedule and expenditure for the pre-feasibility study, including technical and economic studies, engineering studies, cost estimating, resource delineation and infill drilling, pit slope geotechnical characterization, metallurgical sampling and test-work, associated exploration, strategic optimization, mine, plant and infrastructure design, permitting and other pre-construction activities were NOT modelled.

Attention is drawn to Section 26 where the work plan and costs for the pre-feasibility study period of the project are summarized.

Table 22-1 shows a summary of key project parameters and project economics. LOM project annual cash flow is shown graphically in Figure 22-1.

19.3 Summary

The summary of CuMo project economics is provided in Table 22-1a and b. Due to the ore sorting and central location of the pit a large portion of the inferred component of the resource is located on the outer edges in the waste blocks. What inferred that is located within the mineable resource has been converted to waste.

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**Table 19-1a: Summary of potential project economics with Inferred resources**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Project Metric** | &nbsp;&nbsp;**Value** |
| &nbsp;&nbsp;Pre-Tax NPV @ 5% | &nbsp;&nbsp;2470 |
| &nbsp;&nbsp;Pre-Tax NPV @ 8% | &nbsp;&nbsp;800 |
| &nbsp;&nbsp;Pre-Tax NPV @ 10% | &nbsp;&nbsp;113 |
| &nbsp;&nbsp;Pre-Tax IRR | &nbsp;&nbsp;10% |
| &nbsp;&nbsp;After-Tax NPV @ 5% | &nbsp;&nbsp;1709 |
| &nbsp;&nbsp;**After-Tax NPV @ 8%** | &nbsp;&nbsp;**356** |
| &nbsp;&nbsp;After-Tax NPV @ 10% | &nbsp;&nbsp;-205 |
| &nbsp;&nbsp;After-Tax IRR | &nbsp;&nbsp;9% |
| &nbsp;&nbsp;Undiscounted After-Tax Cash Flow (LOM) (no capital) | &nbsp;&nbsp;11092 |
| &nbsp;&nbsp;Undiscounted After-Tax Cash Flow (LOM) (capital) | &nbsp;&nbsp;7032 |
| &nbsp;&nbsp;Payback Period from Start of Processing | &nbsp;&nbsp;8.0 |
| &nbsp;&nbsp;Initial Capital Expenditure | &nbsp;&nbsp;3071 |
| &nbsp;&nbsp;LOM Sustaining Capital Expenditure | &nbsp;&nbsp;972 |
| &nbsp;&nbsp;Closure | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;LOM C-1 Cash Costs After By-product Credits | &nbsp;&nbsp;4.67 |
| &nbsp;&nbsp;Nominal Flotation Process Capacity | &nbsp;&nbsp;150000 |
| &nbsp;&nbsp;Mine Life (years @ > 90% of full production) | &nbsp;&nbsp;28 |
| &nbsp;&nbsp;LOM Flotation Mill Feed | &nbsp;&nbsp;1582526 |
| &nbsp;&nbsp;LOM Grades | &nbsp;&nbsp;LOM Grades |
| &nbsp;&nbsp; Molybdenite (MoS<sub>2</sub>) | &nbsp;&nbsp;0.074% |
| &nbsp;&nbsp; Molybdenum (elemental Mo) | &nbsp;&nbsp;0.044% |
| &nbsp;&nbsp; Copper | &nbsp;&nbsp;0.105% |
| &nbsp;&nbsp; Silver | &nbsp;&nbsp;3.00 |
| &nbsp;&nbsp;LOM Waste Volume | &nbsp;&nbsp;2425101 |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Sort Feed) | &nbsp;&nbsp;1.11 |
| &nbsp;&nbsp;Mass Pull to Mill from Sort Feed | &nbsp;&nbsp;72% |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Mill Feed) | &nbsp;&nbsp;1.53 |
| &nbsp;&nbsp;**First Five Years Average Annual Metal Production** | &nbsp;&nbsp;**First Five Years Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum | &nbsp;&nbsp;34976 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;93394 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3940 |
| &nbsp;&nbsp;**LOM Average Annual Metal Production** | &nbsp;&nbsp;**LOM Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo Metal) | &nbsp;&nbsp;43072 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;84229 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3575 |
| &nbsp;&nbsp;**LOM Average Mill Process Recovery** | &nbsp;&nbsp;**LOM Average Mill Process Recovery** |
| &nbsp;&nbsp;Molybdenum (Mo Metal) | &nbsp;&nbsp;91.87% |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;76.33% |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;70.42% |

---

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**Table 19-2b: Summary of potential project economics without inferred resources**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Project Metric** | &nbsp;&nbsp;**Value** |
| &nbsp;&nbsp;Pre-Tax NPV @ 5% | &nbsp;&nbsp;2328 |
| &nbsp;&nbsp;Pre-Tax NPV @ 8% | &nbsp;&nbsp;771 |
| &nbsp;&nbsp;Pre-Tax NPV @ 10% | &nbsp;&nbsp;102 |
| &nbsp;&nbsp;Pre-Tax IRR | &nbsp;&nbsp;10% |
| &nbsp;&nbsp;After-Tax NPV @ 5% | &nbsp;&nbsp;1674 |
| &nbsp;&nbsp;**After-Tax NPV @ 8%** | &nbsp;&nbsp;**356** |
| &nbsp;&nbsp;After-Tax NPV @ 10% | &nbsp;&nbsp;-225 |
| &nbsp;&nbsp;After-Tax IRR | &nbsp;&nbsp;9% |
| &nbsp;&nbsp;Undiscounted After-Tax Cash Flow (LOM) | &nbsp;&nbsp;6575 |
| &nbsp;&nbsp;Payback Period from Start of Processing | &nbsp;&nbsp;8.0 |
| &nbsp;&nbsp;Initial Capital Expenditure | &nbsp;&nbsp;3071 |
| &nbsp;&nbsp;LOM Sustaining Capital Expenditure | &nbsp;&nbsp;972 |
| &nbsp;&nbsp;Closure | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;LOM C-1 Cash Costs After By-product Credits | &nbsp;&nbsp;4.67 |
| &nbsp;&nbsp;Nominal Flotation Process Capacity | &nbsp;&nbsp;150000 |
| &nbsp;&nbsp;Mine Life (years @ > 90% of full production) | &nbsp;&nbsp;28 |
| &nbsp;&nbsp;LOM Flotation Mill Feed | &nbsp;&nbsp;1582526 |
| &nbsp;&nbsp;LOM Grades | &nbsp;&nbsp;LOM Grades |
| &nbsp;&nbsp; Molybdenite (MoS<sub>2</sub>) | &nbsp;&nbsp;0.076% |
| &nbsp;&nbsp;Molybdenum (elemental Mo) | &nbsp;&nbsp;0.045% |
| &nbsp;&nbsp; Copper | &nbsp;&nbsp;0.108% |
| &nbsp;&nbsp; Silver | &nbsp;&nbsp;3.10 |
| &nbsp;&nbsp;LOM Waste Volume | &nbsp;&nbsp;255706 |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Sort Feed) | &nbsp;&nbsp;1.11 |
| &nbsp;&nbsp;Mass Pull to Mill from Sort Feed | &nbsp;&nbsp;72% |
| &nbsp;&nbsp;LOM Strip Ratio (Waste:Mill Feed) | &nbsp;&nbsp;1.53 |
| &nbsp;&nbsp;**First Five Years Average Annual Metal Production** | &nbsp;&nbsp;**First Five Years Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;37640 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;90756 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3731 |
| &nbsp;&nbsp;**LOM Average Annual Metal Production** | &nbsp;&nbsp;**LOM Average Annual Metal Production** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;34980 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;84233 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;3375 |
| &nbsp;&nbsp;**LOM Average Mill Process Recovery** | &nbsp;&nbsp;**LOM Average Mill Process Recovery** |
| &nbsp;&nbsp;Molybdenum (Mo) | &nbsp;&nbsp;91.87% |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;76.33% |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;70.42% |

---

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The project as presented, and under the current assumptions, has the potential to be economic. The after-tax NPV is positive and has been tested across a range of sensitivities with respect to capital costs, operating costs and revenue (price).

Attention is drawn to the cautionary statements in Section 22.1 and the risks and opportunities discussed in Sections 25.2.7 and 25.3.6 respectively.

19.4 Project Cashflows

Project cashflows are summarized in Table 22-2 & Table 22-3, and shown graphically in Figure 22-1. Cumulative cashflows at discount rates (non-escalated) of 0%, 5%, 8% and 10% are also shown.

![](ex96-1_047.jpg)

Source: SRK, 2019

**Figure 19-1: Project cashflow summary chart**

19.5 Production Schedule

The production schedule evaluated is summarized in Table 22-4. Metal production quantities and mine physicals are shown graphically in Figure 22-1.

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**Table 19-3: LOM annual project cash flow**

---

| | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**PREFINANCE SUMMARY CASH FLOW** | &nbsp;&nbsp;&nbsp;**Units** | &nbsp;&nbsp;&nbsp;**LOM Total** | &nbsp;&nbsp;&nbsp;**Year -3** | &nbsp;&nbsp;&nbsp;**Year -2** | &nbsp;&nbsp;&nbsp;**Year -1** | &nbsp;&nbsp;&nbsp;**Year 1** | &nbsp;&nbsp;&nbsp;**Year 2** | &nbsp;&nbsp;&nbsp;**Year 3** | &nbsp;&nbsp;&nbsp;**Year 4** | &nbsp;&nbsp;&nbsp;**Year 5** | &nbsp;&nbsp;&nbsp;**Year 6** | &nbsp;&nbsp;&nbsp;**Year 7** | &nbsp;&nbsp;&nbsp;**Year 8** | &nbsp;&nbsp;&nbsp;**Year 9** | &nbsp;&nbsp;&nbsp;**Year 10** | &nbsp;&nbsp;&nbsp;**Year 11** | &nbsp;&nbsp;&nbsp;**Year 12** | &nbsp;&nbsp;&nbsp;**Year 13** | &nbsp;&nbsp;&nbsp;**Year 14** |
| &nbsp;&nbsp;&nbsp;**Payable Revenue** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Payable Revenue from Molybdenum | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;19383 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;450 | &nbsp;&nbsp;&nbsp;585 | &nbsp;&nbsp;&nbsp;789 | &nbsp;&nbsp;&nbsp;555 | &nbsp;&nbsp;&nbsp;444 | &nbsp;&nbsp;&nbsp;564 | &nbsp;&nbsp;&nbsp;737 | &nbsp;&nbsp;&nbsp;825 | &nbsp;&nbsp;&nbsp;863 | &nbsp;&nbsp;&nbsp;416 | &nbsp;&nbsp;&nbsp;524 | &nbsp;&nbsp;&nbsp;701 | &nbsp;&nbsp;&nbsp;882 |
| &nbsp;&nbsp;&nbsp;Payable Revenue from Copper | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;7581 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;117 | &nbsp;&nbsp;&nbsp;359 | &nbsp;&nbsp;&nbsp;341 | &nbsp;&nbsp;&nbsp;263 | &nbsp;&nbsp;&nbsp;321 | &nbsp;&nbsp;&nbsp;358 | &nbsp;&nbsp;&nbsp;334 | &nbsp;&nbsp;&nbsp;258 | &nbsp;&nbsp;&nbsp;241 | &nbsp;&nbsp;&nbsp;207 | &nbsp;&nbsp;&nbsp;373 | &nbsp;&nbsp;&nbsp;326 | &nbsp;&nbsp;&nbsp;276 | &nbsp;&nbsp;&nbsp;212 |
| &nbsp;&nbsp;&nbsp;Payable Revenue from Silver | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;1877 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;41 | &nbsp;&nbsp;&nbsp;82 | &nbsp;&nbsp;&nbsp;79 | &nbsp;&nbsp;&nbsp;56 | &nbsp;&nbsp;&nbsp;86 | &nbsp;&nbsp;&nbsp;95 | &nbsp;&nbsp;&nbsp;79 | &nbsp;&nbsp;&nbsp;61 | &nbsp;&nbsp;&nbsp;58 | &nbsp;&nbsp;&nbsp;52 | &nbsp;&nbsp;&nbsp;94 | &nbsp;&nbsp;&nbsp;77 | &nbsp;&nbsp;&nbsp;62 | &nbsp;&nbsp;&nbsp;45 |
| &nbsp;&nbsp;&nbsp;By-product Revenue | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;266 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;3 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;12 |
| &nbsp;&nbsp;&nbsp;**Total Revenue from Payable Metal** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**29106** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**406** | &nbsp;&nbsp;&nbsp;**897** | &nbsp;&nbsp;&nbsp;**1013** | &nbsp;&nbsp;&nbsp;**1119** | &nbsp;&nbsp;&nbsp;**969** | &nbsp;&nbsp;&nbsp;**902** | &nbsp;&nbsp;&nbsp;**985** | &nbsp;&nbsp;&nbsp;**1066** | &nbsp;&nbsp;&nbsp;**1135** | &nbsp;&nbsp;&nbsp;**1134** | &nbsp;&nbsp;&nbsp;**888** | &nbsp;&nbsp;&nbsp;**934** | &nbsp;&nbsp;&nbsp;**1048** | &nbsp;&nbsp;&nbsp;**1151** |
| &nbsp;&nbsp;&nbsp;*Moly Equivalent (MoEq) Payable Pounds* | &nbsp;&nbsp;&nbsp;*mmlbs* | &nbsp;&nbsp;&nbsp;*1908* | &nbsp;&nbsp;&nbsp;*0.0* | &nbsp;&nbsp;&nbsp;*0.0* | &nbsp;&nbsp;&nbsp;*0.0* | &nbsp;&nbsp;&nbsp;*26.6* | &nbsp;&nbsp;&nbsp;*58.8* | &nbsp;&nbsp;&nbsp;*66.4* | &nbsp;&nbsp;&nbsp;*73.4* | &nbsp;&nbsp;&nbsp;*63.6* | &nbsp;&nbsp;&nbsp;*59.2* | &nbsp;&nbsp;&nbsp;*64.6* | &nbsp;&nbsp;&nbsp;*69.9* | &nbsp;&nbsp;&nbsp;*74.4* | &nbsp;&nbsp;&nbsp;*74.3* | &nbsp;&nbsp;&nbsp;*58.2* | &nbsp;&nbsp;&nbsp;*61.3* | &nbsp;&nbsp;&nbsp;*68.7* | &nbsp;&nbsp;&nbsp;*75.5* |
| &nbsp;&nbsp;&nbsp;**Total TCRC Freight & Royalty** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**1253** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**19** | &nbsp;&nbsp;&nbsp;**47** | &nbsp;&nbsp;&nbsp;**48** | &nbsp;&nbsp;&nbsp;**46** | &nbsp;&nbsp;&nbsp;**47** | &nbsp;&nbsp;&nbsp;**48** | &nbsp;&nbsp;&nbsp;**47** | &nbsp;&nbsp;&nbsp;**44** | &nbsp;&nbsp;&nbsp;**45** | &nbsp;&nbsp;&nbsp;**43** | &nbsp;&nbsp;&nbsp;**48** | &nbsp;&nbsp;&nbsp;**45** | &nbsp;&nbsp;&nbsp;**45** | &nbsp;&nbsp;&nbsp;**43** |
| &nbsp;&nbsp;&nbsp;**Total Minesite Revenue** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**27853** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**387** | &nbsp;&nbsp;&nbsp;**851** | &nbsp;&nbsp;&nbsp;**965** | &nbsp;&nbsp;&nbsp;**1073** | &nbsp;&nbsp;&nbsp;**923** | &nbsp;&nbsp;&nbsp;**855** | &nbsp;&nbsp;&nbsp;**938** | &nbsp;&nbsp;&nbsp;**1021** | &nbsp;&nbsp;&nbsp;**1090** | &nbsp;&nbsp;&nbsp;**1091** | &nbsp;&nbsp;&nbsp;**841** | &nbsp;&nbsp;&nbsp;**889** | &nbsp;&nbsp;&nbsp;**1004** | &nbsp;&nbsp;&nbsp;**1108** |
| &nbsp;&nbsp;&nbsp;**OPERATING COSTS** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mining | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;5797 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;142 | &nbsp;&nbsp;&nbsp;173 | &nbsp;&nbsp;&nbsp;181 | &nbsp;&nbsp;&nbsp;191 | &nbsp;&nbsp;&nbsp;187 | &nbsp;&nbsp;&nbsp;196 | &nbsp;&nbsp;&nbsp;197 | &nbsp;&nbsp;&nbsp;211 | &nbsp;&nbsp;&nbsp;191 | &nbsp;&nbsp;&nbsp;202 | &nbsp;&nbsp;&nbsp;214 | &nbsp;&nbsp;&nbsp;205 | &nbsp;&nbsp;&nbsp;201 | &nbsp;&nbsp;&nbsp;199 | &nbsp;&nbsp;&nbsp;190 | &nbsp;&nbsp;&nbsp;188 |
| &nbsp;&nbsp;&nbsp;Bulk Sort | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;778 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;20 | &nbsp;&nbsp;&nbsp;30 | &nbsp;&nbsp;&nbsp;26 | &nbsp;&nbsp;&nbsp;22 | &nbsp;&nbsp;&nbsp;33 | &nbsp;&nbsp;&nbsp;30 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;33 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;23 |
| &nbsp;&nbsp;&nbsp;Middling Sort | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;192 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;3 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;4 |
| &nbsp;&nbsp;&nbsp;Processing | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;7042 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;122 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 |
| &nbsp;&nbsp;&nbsp;Sort Waste Delivery | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;395 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;18 | &nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;23 | &nbsp;&nbsp;&nbsp;18 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;&nbsp;23 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;8 |
| &nbsp;&nbsp;&nbsp;G&A | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;805 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;14 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 |
| &nbsp;&nbsp;&nbsp;Less Capitalized Operating Costs |  | &nbsp;&nbsp;&nbsp;-329 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;-147 | &nbsp;&nbsp;&nbsp;-182 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 |
| &nbsp;&nbsp;&nbsp;**Total Operating Costs** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**14680** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**362** | &nbsp;&nbsp;&nbsp;**520** | &nbsp;&nbsp;&nbsp;**503** | &nbsp;&nbsp;&nbsp;**500** | &nbsp;&nbsp;&nbsp;**535** | &nbsp;&nbsp;&nbsp;**539** | &nbsp;&nbsp;&nbsp;**509** | &nbsp;&nbsp;&nbsp;**513** | &nbsp;&nbsp;&nbsp;**533** | &nbsp;&nbsp;&nbsp;**524** | &nbsp;&nbsp;&nbsp;**538** | &nbsp;&nbsp;&nbsp;**516** | &nbsp;&nbsp;&nbsp;**498** | &nbsp;&nbsp;&nbsp;**494** |
| &nbsp;&nbsp;&nbsp;**Operating Cashflow** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**13173** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**25** | &nbsp;&nbsp;&nbsp;**331** | &nbsp;&nbsp;&nbsp;**461** | &nbsp;&nbsp;&nbsp;**574** | &nbsp;&nbsp;&nbsp;**388** | &nbsp;&nbsp;&nbsp;**316** | &nbsp;&nbsp;&nbsp;**429** | &nbsp;&nbsp;&nbsp;**508** | &nbsp;&nbsp;&nbsp;**556** | &nbsp;&nbsp;&nbsp;**567** | &nbsp;&nbsp;&nbsp;**302** | &nbsp;&nbsp;&nbsp;**373** | &nbsp;&nbsp;&nbsp;**506** | &nbsp;&nbsp;&nbsp;**614** |
| &nbsp;&nbsp;&nbsp;**Summary Capex by Project Phase** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction Costs | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;3071 | &nbsp;&nbsp;&nbsp;882 | &nbsp;&nbsp;&nbsp;1038 | &nbsp;&nbsp;&nbsp;1151 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 |
| &nbsp;&nbsp;&nbsp;Sustaining Capital Costs | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;972 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;31 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;62 | &nbsp;&nbsp;&nbsp;51 | &nbsp;&nbsp;&nbsp;30 | &nbsp;&nbsp;&nbsp;23 | &nbsp;&nbsp;&nbsp;19 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;29 | &nbsp;&nbsp;&nbsp;30 | &nbsp;&nbsp;&nbsp;130 | &nbsp;&nbsp;&nbsp;79 |
| &nbsp;&nbsp;&nbsp;Closure Costs | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;150 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 |
| &nbsp;&nbsp;&nbsp;**Grand Total Capex (Including Closure)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**4193** | &nbsp;&nbsp;&nbsp;**882** | &nbsp;&nbsp;&nbsp;**1038** | &nbsp;&nbsp;&nbsp;**1151** | &nbsp;&nbsp;&nbsp;**31** | &nbsp;&nbsp;&nbsp;**6** | &nbsp;&nbsp;&nbsp;**15** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**62** | &nbsp;&nbsp;&nbsp;**51** | &nbsp;&nbsp;&nbsp;**30** | &nbsp;&nbsp;&nbsp;**23** | &nbsp;&nbsp;&nbsp;**19** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**29** | &nbsp;&nbsp;&nbsp;**30** | &nbsp;&nbsp;&nbsp;**130** | &nbsp;&nbsp;&nbsp;**79** |
| &nbsp;&nbsp;&nbsp;Working Capital | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;-133 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;-9 | &nbsp;&nbsp;&nbsp;44 | &nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;-16 | &nbsp;&nbsp;&nbsp;-7 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;-33 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;18 | &nbsp;&nbsp;&nbsp;17 |
| &nbsp;&nbsp;&nbsp;**Pretax Cash Flow** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**9113** | &nbsp;&nbsp;&nbsp;**-882** | &nbsp;&nbsp;&nbsp;**-1038** | &nbsp;&nbsp;&nbsp;**-1151** | &nbsp;&nbsp;&nbsp;**3** | &nbsp;&nbsp;&nbsp;**281** | &nbsp;&nbsp;&nbsp;**434** | &nbsp;&nbsp;&nbsp;**544** | &nbsp;&nbsp;&nbsp;**342** | &nbsp;&nbsp;&nbsp;**272** | &nbsp;&nbsp;&nbsp;**387** | &nbsp;&nbsp;&nbsp;**475** | &nbsp;&nbsp;&nbsp;**528** | &nbsp;&nbsp;&nbsp;**549** | &nbsp;&nbsp;&nbsp;**306** | &nbsp;&nbsp;&nbsp;**335** | &nbsp;&nbsp;&nbsp;**358** | &nbsp;&nbsp;&nbsp;**519** |
| &nbsp;&nbsp;&nbsp;**Total Tax** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**2081** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**0** | &nbsp;&nbsp;&nbsp;**60** | &nbsp;&nbsp;&nbsp;**95** | &nbsp;&nbsp;&nbsp;**109** | &nbsp;&nbsp;&nbsp;**56** | &nbsp;&nbsp;&nbsp;**73** | &nbsp;&nbsp;&nbsp;**93** | &nbsp;&nbsp;&nbsp;**117** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (Undiscounted)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**7032** | &nbsp;&nbsp;&nbsp;**-882** | &nbsp;&nbsp;&nbsp;**-1038** | &nbsp;&nbsp;&nbsp;**-1151** | &nbsp;&nbsp;&nbsp;**3** | &nbsp;&nbsp;&nbsp;**281** | &nbsp;&nbsp;&nbsp;**434** | &nbsp;&nbsp;&nbsp;**544** | &nbsp;&nbsp;&nbsp;**342** | &nbsp;&nbsp;&nbsp;**272** | &nbsp;&nbsp;&nbsp;**387** | &nbsp;&nbsp;&nbsp;**415** | &nbsp;&nbsp;&nbsp;**433** | &nbsp;&nbsp;&nbsp;**439** | &nbsp;&nbsp;&nbsp;**251** | &nbsp;&nbsp;&nbsp;**262** | &nbsp;&nbsp;&nbsp;**265** | &nbsp;&nbsp;&nbsp;**401** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (at 5% DR)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**1709** | &nbsp;&nbsp;&nbsp;**-861** | &nbsp;&nbsp;&nbsp;**-965** | &nbsp;&nbsp;&nbsp;**-1019** | &nbsp;&nbsp;&nbsp;**2** | &nbsp;&nbsp;&nbsp;**226** | &nbsp;&nbsp;&nbsp;**332** | &nbsp;&nbsp;&nbsp;**396** | &nbsp;&nbsp;&nbsp;**237** | &nbsp;&nbsp;&nbsp;**180** | &nbsp;&nbsp;&nbsp;**244** | &nbsp;&nbsp;&nbsp;**249** | &nbsp;&nbsp;&nbsp;**247** | &nbsp;&nbsp;&nbsp;**239** | &nbsp;&nbsp;&nbsp;**130** | &nbsp;&nbsp;&nbsp;**129** | &nbsp;&nbsp;&nbsp;**124** | &nbsp;&nbsp;&nbsp;**179** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (at 8% DR)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**356** | &nbsp;&nbsp;&nbsp;**-848** | &nbsp;&nbsp;&nbsp;**-925** | &nbsp;&nbsp;&nbsp;**-950** | &nbsp;&nbsp;&nbsp;**2** | &nbsp;&nbsp;&nbsp;**199** | &nbsp;&nbsp;&nbsp;**284** | &nbsp;&nbsp;&nbsp;**330** | &nbsp;&nbsp;&nbsp;**192** | &nbsp;&nbsp;&nbsp;**142** | &nbsp;&nbsp;&nbsp;**186** | &nbsp;&nbsp;&nbsp;**185** | &nbsp;&nbsp;&nbsp;**179** | &nbsp;&nbsp;&nbsp;**168** | &nbsp;&nbsp;&nbsp;**89** | &nbsp;&nbsp;&nbsp;**86** | &nbsp;&nbsp;&nbsp;**80** | &nbsp;&nbsp;&nbsp;**113** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (at 10% DR)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**-205** | &nbsp;&nbsp;&nbsp;**-841** | &nbsp;&nbsp;&nbsp;**-900** | &nbsp;&nbsp;&nbsp;**-907** | &nbsp;&nbsp;&nbsp;**2** | &nbsp;&nbsp;&nbsp;**183** | &nbsp;&nbsp;&nbsp;**257** | &nbsp;&nbsp;&nbsp;**293** | &nbsp;&nbsp;&nbsp;**167** | &nbsp;&nbsp;&nbsp;**121** | &nbsp;&nbsp;&nbsp;**157** | &nbsp;&nbsp;&nbsp;**153** | &nbsp;&nbsp;&nbsp;**145** | &nbsp;&nbsp;&nbsp;**134** | &nbsp;&nbsp;&nbsp;**69** | &nbsp;&nbsp;&nbsp;**66** | &nbsp;&nbsp;&nbsp;**60** | &nbsp;&nbsp;&nbsp;**83** |

---

*Note*: MoEq lbs = (Revenue from recovered, payable metal plus by-products before deduction of Royalty TCRC and freight)/(Price of Mo per lb)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 153</u>

**Table 19-4: LOM annual project cash flow – continued**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**PREFINANCE SUMMARY CASH FLOW** | &nbsp;&nbsp;&nbsp;**Units** | &nbsp;&nbsp;&nbsp;**LOM Total** | &nbsp;&nbsp;&nbsp;**Year 15** | &nbsp;&nbsp;&nbsp;**Year 16** | &nbsp;&nbsp;&nbsp;**Year 17** | &nbsp;&nbsp;&nbsp;**Year 18** | &nbsp;&nbsp;&nbsp;**Year 19** | &nbsp;&nbsp;&nbsp;**Year 20** | &nbsp;&nbsp;&nbsp;**Year 21** | &nbsp;&nbsp;&nbsp;**Year 22** | &nbsp;&nbsp;&nbsp;**Year 23** | &nbsp;&nbsp;&nbsp;**Year 24** | &nbsp;&nbsp;&nbsp;**Year 25** | &nbsp;&nbsp;&nbsp;**Year 26** | &nbsp;&nbsp;&nbsp;**Year 27** | &nbsp;&nbsp;&nbsp;**Year 28** | &nbsp;&nbsp;&nbsp;**Year 29** | &nbsp;&nbsp;&nbsp;**Year 30** | &nbsp;&nbsp;&nbsp;**Closure** |
| &nbsp;&nbsp;&nbsp;**Payable Revenue** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Payable Revenue from Molybdenum | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;19383 | &nbsp;&nbsp;&nbsp;932 | &nbsp;&nbsp;&nbsp;892 | &nbsp;&nbsp;&nbsp;839 | &nbsp;&nbsp;&nbsp;372 | &nbsp;&nbsp;&nbsp;471 | &nbsp;&nbsp;&nbsp;518 | &nbsp;&nbsp;&nbsp;639 | &nbsp;&nbsp;&nbsp;758 | &nbsp;&nbsp;&nbsp;753 | &nbsp;&nbsp;&nbsp;806 | &nbsp;&nbsp;&nbsp;800 | &nbsp;&nbsp;&nbsp;573 | &nbsp;&nbsp;&nbsp;679 | &nbsp;&nbsp;&nbsp;756 | &nbsp;&nbsp;&nbsp;784 | &nbsp;&nbsp;&nbsp;233 |  |
| &nbsp;&nbsp;&nbsp;Payable Revenue from Copper | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;7581 | &nbsp;&nbsp;&nbsp;157 | &nbsp;&nbsp;&nbsp;156 | &nbsp;&nbsp;&nbsp;181 | &nbsp;&nbsp;&nbsp;369 | &nbsp;&nbsp;&nbsp;345 | &nbsp;&nbsp;&nbsp;328 | &nbsp;&nbsp;&nbsp;297 | &nbsp;&nbsp;&nbsp;249 | &nbsp;&nbsp;&nbsp;212 | &nbsp;&nbsp;&nbsp;201 | &nbsp;&nbsp;&nbsp;180 | &nbsp;&nbsp;&nbsp;258 | &nbsp;&nbsp;&nbsp;250 | &nbsp;&nbsp;&nbsp;192 | &nbsp;&nbsp;&nbsp;163 | &nbsp;&nbsp;&nbsp;57 |  |
| &nbsp;&nbsp;&nbsp;Payable Revenue from Silver | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;1877 | &nbsp;&nbsp;&nbsp;36 | &nbsp;&nbsp;&nbsp;39 | &nbsp;&nbsp;&nbsp;50 | &nbsp;&nbsp;&nbsp;100 | &nbsp;&nbsp;&nbsp;98 | &nbsp;&nbsp;&nbsp;86 | &nbsp;&nbsp;&nbsp;73 | &nbsp;&nbsp;&nbsp;61 | &nbsp;&nbsp;&nbsp;49 | &nbsp;&nbsp;&nbsp;45 | &nbsp;&nbsp;&nbsp;46 | &nbsp;&nbsp;&nbsp;65 | &nbsp;&nbsp;&nbsp;60 | &nbsp;&nbsp;&nbsp;48 | &nbsp;&nbsp;&nbsp;40 | &nbsp;&nbsp;&nbsp;12 |  |
| &nbsp;&nbsp;&nbsp;By-product Revenue | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;266 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;3 |  |
| &nbsp;&nbsp;&nbsp;**Total Revenue from Payable Metal** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**29106** | &nbsp;&nbsp;&nbsp;**1139** | &nbsp;&nbsp;&nbsp;**1100** | &nbsp;&nbsp;&nbsp;**1082** | &nbsp;&nbsp;&nbsp;**846** | &nbsp;&nbsp;&nbsp;**920** | &nbsp;&nbsp;&nbsp;**939** | &nbsp;&nbsp;&nbsp;**1017** | &nbsp;&nbsp;&nbsp;**1078** | &nbsp;&nbsp;&nbsp;**1024** | &nbsp;&nbsp;&nbsp;**1063** | &nbsp;&nbsp;&nbsp;**1037** | &nbsp;&nbsp;&nbsp;**904** | &nbsp;&nbsp;&nbsp;**998** | &nbsp;&nbsp;&nbsp;**1006** | &nbsp;&nbsp;&nbsp;**998** | &nbsp;&nbsp;&nbsp;**305** |  |
| &nbsp;&nbsp;&nbsp;*Moly Equivalent (MoEq) Payable Pounds* | &nbsp;&nbsp;&nbsp;*mmlbs* | &nbsp;&nbsp;&nbsp;*1908* | &nbsp;&nbsp;&nbsp;*74.7* | &nbsp;&nbsp;&nbsp;*72.1* | &nbsp;&nbsp;&nbsp;*70.9* | &nbsp;&nbsp;&nbsp;*55.5* | &nbsp;&nbsp;&nbsp;*60.3* | &nbsp;&nbsp;&nbsp;*61.5* | &nbsp;&nbsp;&nbsp;*66.7* | &nbsp;&nbsp;&nbsp;*70.7* | &nbsp;&nbsp;&nbsp;*67.2* | &nbsp;&nbsp;&nbsp;*69.7* | &nbsp;&nbsp;&nbsp;*68.0* | &nbsp;&nbsp;&nbsp;*59.3* | &nbsp;&nbsp;&nbsp;*65.4* | &nbsp;&nbsp;&nbsp;*66.0* | &nbsp;&nbsp;&nbsp;*65.5* | &nbsp;&nbsp;&nbsp;*20.0* |  |
| &nbsp;&nbsp;&nbsp;**Total TCRC Freight & Royalty** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**1253** | &nbsp;&nbsp;&nbsp;**39** | &nbsp;&nbsp;&nbsp;**39** | &nbsp;&nbsp;&nbsp;**40** | &nbsp;&nbsp;&nbsp;**47** | &nbsp;&nbsp;&nbsp;**48** | &nbsp;&nbsp;&nbsp;**46** | &nbsp;&nbsp;&nbsp;**46** | &nbsp;&nbsp;&nbsp;**44** | &nbsp;&nbsp;&nbsp;**40** | &nbsp;&nbsp;&nbsp;**40** | &nbsp;&nbsp;&nbsp;**39** | &nbsp;&nbsp;&nbsp;**41** | &nbsp;&nbsp;&nbsp;**42** | &nbsp;&nbsp;&nbsp;**39** | &nbsp;&nbsp;&nbsp;**36** | &nbsp;&nbsp;&nbsp;**11** |  |
| &nbsp;&nbsp;&nbsp;**Total Minesite Revenue** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**27853** | &nbsp;&nbsp;&nbsp;**1099** | &nbsp;&nbsp;&nbsp;**1061** | &nbsp;&nbsp;&nbsp;**1041** | &nbsp;&nbsp;&nbsp;**799** | &nbsp;&nbsp;&nbsp;**872** | &nbsp;&nbsp;&nbsp;**892** | &nbsp;&nbsp;&nbsp;**971** | &nbsp;&nbsp;&nbsp;**1034** | &nbsp;&nbsp;&nbsp;**984** | &nbsp;&nbsp;&nbsp;**1023** | &nbsp;&nbsp;&nbsp;**998** | &nbsp;&nbsp;&nbsp;**863** | &nbsp;&nbsp;&nbsp;**956** | &nbsp;&nbsp;&nbsp;**967** | &nbsp;&nbsp;&nbsp;**962** | &nbsp;&nbsp;&nbsp;**294** |  |
| &nbsp;&nbsp;&nbsp;**OPERATING COSTS** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mining | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;5797 | &nbsp;&nbsp;&nbsp;186 | &nbsp;&nbsp;&nbsp;198 | &nbsp;&nbsp;&nbsp;197 | &nbsp;&nbsp;&nbsp;208 | &nbsp;&nbsp;&nbsp;219 | &nbsp;&nbsp;&nbsp;206 | &nbsp;&nbsp;&nbsp;196 | &nbsp;&nbsp;&nbsp;188 | &nbsp;&nbsp;&nbsp;183 | &nbsp;&nbsp;&nbsp;179 | &nbsp;&nbsp;&nbsp;175 | &nbsp;&nbsp;&nbsp;183 | &nbsp;&nbsp;&nbsp;119 | &nbsp;&nbsp;&nbsp;116 | &nbsp;&nbsp;&nbsp;125 | &nbsp;&nbsp;&nbsp;50 |  |
| &nbsp;&nbsp;&nbsp;Bulk Sort | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;778 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;26 | &nbsp;&nbsp;&nbsp;28 | &nbsp;&nbsp;&nbsp;35 | &nbsp;&nbsp;&nbsp;31 | &nbsp;&nbsp;&nbsp;28 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;22 | &nbsp;&nbsp;&nbsp;23 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;32 | &nbsp;&nbsp;&nbsp;26 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;24 | &nbsp;&nbsp;&nbsp;9 |  |
| &nbsp;&nbsp;&nbsp;Middling Sort | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;192 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;3 | &nbsp;&nbsp;&nbsp;4 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;4 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;4 | &nbsp;&nbsp;&nbsp;2 |  |
| &nbsp;&nbsp;&nbsp;Processing | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;7042 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;244 | &nbsp;&nbsp;&nbsp;94 |  |
| &nbsp;&nbsp;&nbsp;Sort Waste Delivery | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;395 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;26 | &nbsp;&nbsp;&nbsp;19 | &nbsp;&nbsp;&nbsp;14 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;20 | &nbsp;&nbsp;&nbsp;11 | &nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;3 |  |
| &nbsp;&nbsp;&nbsp;G&A | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;805 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;27 | &nbsp;&nbsp;&nbsp;11 |  |
| &nbsp;&nbsp;&nbsp;Less Capitalized Operating Costs |  | &nbsp;&nbsp;&nbsp;-329 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 |  |
| &nbsp;&nbsp;&nbsp;**Total Operating Costs** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**14680** | &nbsp;&nbsp;&nbsp;**497** | &nbsp;&nbsp;&nbsp;**514** | &nbsp;&nbsp;&nbsp;**521** | &nbsp;&nbsp;&nbsp;**553** | &nbsp;&nbsp;&nbsp;**552** | &nbsp;&nbsp;&nbsp;**526** | &nbsp;&nbsp;&nbsp;**504** | &nbsp;&nbsp;&nbsp;**491** | &nbsp;&nbsp;&nbsp;**490** | &nbsp;&nbsp;&nbsp;**488** | &nbsp;&nbsp;&nbsp;**484** | &nbsp;&nbsp;&nbsp;**516** | &nbsp;&nbsp;&nbsp;**435** | &nbsp;&nbsp;&nbsp;**425** | &nbsp;&nbsp;&nbsp;**432** | &nbsp;&nbsp;&nbsp;**168** |  |
| &nbsp;&nbsp;&nbsp;**Operating Cashflow** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**13173** | &nbsp;&nbsp;&nbsp;**602** | &nbsp;&nbsp;&nbsp;**547** | &nbsp;&nbsp;&nbsp;**520** | &nbsp;&nbsp;&nbsp;**246** | &nbsp;&nbsp;&nbsp;**320** | &nbsp;&nbsp;&nbsp;**367** | &nbsp;&nbsp;&nbsp;**467** | &nbsp;&nbsp;&nbsp;**543** | &nbsp;&nbsp;&nbsp;**494** | &nbsp;&nbsp;&nbsp;**535** | &nbsp;&nbsp;&nbsp;**515** | &nbsp;&nbsp;&nbsp;**348** | &nbsp;&nbsp;&nbsp;**521** | &nbsp;&nbsp;&nbsp;**542** | &nbsp;&nbsp;&nbsp;**530** | &nbsp;&nbsp;&nbsp;**126** |  |
| &nbsp;&nbsp;&nbsp;**Summary Capex by Project Phase** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction Costs | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;3071 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 |  |
| &nbsp;&nbsp;&nbsp;Sustaining Capital Costs | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;972 | &nbsp;&nbsp;&nbsp;25 | &nbsp;&nbsp;&nbsp;70 | &nbsp;&nbsp;&nbsp;32 | &nbsp;&nbsp;&nbsp;23 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;48 | &nbsp;&nbsp;&nbsp;48 | &nbsp;&nbsp;&nbsp;35 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;17 |  |
| &nbsp;&nbsp;&nbsp;Closure Costs | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;150 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;150 |
| &nbsp;&nbsp;&nbsp;**Grand Total Capex (Including Closure)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**4193** | &nbsp;&nbsp;&nbsp;**25** | &nbsp;&nbsp;&nbsp;**70** | &nbsp;&nbsp;&nbsp;**32** | &nbsp;&nbsp;&nbsp;**23** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**48** | &nbsp;&nbsp;&nbsp;**48** | &nbsp;&nbsp;&nbsp;**35** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**17** | &nbsp;&nbsp;&nbsp;**150** |
| &nbsp;&nbsp;&nbsp;Working Capital | &nbsp;&nbsp;&nbsp;$M | &nbsp;&nbsp;&nbsp;-133 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;-5 | &nbsp;&nbsp;&nbsp;-2 | &nbsp;&nbsp;&nbsp;-42 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;&nbsp;-9 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;-4 | &nbsp;&nbsp;&nbsp;-31 | &nbsp;&nbsp;&nbsp;30 | &nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;-151 | &nbsp;&nbsp;&nbsp;-64 |
| &nbsp;&nbsp;&nbsp;**Pretax Cash Flow** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**9113** | &nbsp;&nbsp;&nbsp;**577** | &nbsp;&nbsp;&nbsp;**483** | &nbsp;&nbsp;&nbsp;**491** | &nbsp;&nbsp;&nbsp;**265** | &nbsp;&nbsp;&nbsp;**290** | &nbsp;&nbsp;&nbsp;**312** | &nbsp;&nbsp;&nbsp;**401** | &nbsp;&nbsp;&nbsp;**494** | &nbsp;&nbsp;&nbsp;**486** | &nbsp;&nbsp;&nbsp;**508** | &nbsp;&nbsp;&nbsp;**501** | &nbsp;&nbsp;&nbsp;**361** | &nbsp;&nbsp;&nbsp;**475** | &nbsp;&nbsp;&nbsp;**520** | &nbsp;&nbsp;&nbsp;**513** | &nbsp;&nbsp;&nbsp;**260** | &nbsp;&nbsp;&nbsp;**-86** |
| &nbsp;&nbsp;&nbsp;**Total Tax** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**2081** | &nbsp;&nbsp;&nbsp;**121** | &nbsp;&nbsp;&nbsp;**107** | &nbsp;&nbsp;&nbsp;**104** | &nbsp;&nbsp;&nbsp;**47** | &nbsp;&nbsp;&nbsp;**65** | &nbsp;&nbsp;&nbsp;**73** | &nbsp;&nbsp;&nbsp;**93** | &nbsp;&nbsp;&nbsp;**111** | &nbsp;&nbsp;&nbsp;**103** | &nbsp;&nbsp;&nbsp;**113** | &nbsp;&nbsp;&nbsp;**109** | &nbsp;&nbsp;&nbsp;**73** | &nbsp;&nbsp;&nbsp;**111** | &nbsp;&nbsp;&nbsp;**115** | &nbsp;&nbsp;&nbsp;**111** | &nbsp;&nbsp;&nbsp;**22** | &nbsp;&nbsp;&nbsp;**0** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (Undiscounted)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**7032** | &nbsp;&nbsp;&nbsp;**456** | &nbsp;&nbsp;&nbsp;**376** | &nbsp;&nbsp;&nbsp;**386** | &nbsp;&nbsp;&nbsp;**218** | &nbsp;&nbsp;&nbsp;**225** | &nbsp;&nbsp;&nbsp;**240** | &nbsp;&nbsp;&nbsp;**308** | &nbsp;&nbsp;&nbsp;**383** | &nbsp;&nbsp;&nbsp;**383** | &nbsp;&nbsp;&nbsp;**395** | &nbsp;&nbsp;&nbsp;**392** | &nbsp;&nbsp;&nbsp;**289** | &nbsp;&nbsp;&nbsp;**364** | &nbsp;&nbsp;&nbsp;**404** | &nbsp;&nbsp;&nbsp;**402** | &nbsp;&nbsp;&nbsp;**238** | &nbsp;&nbsp;&nbsp;**-86** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (at 5% DR)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**1709** | &nbsp;&nbsp;&nbsp;**194** | &nbsp;&nbsp;&nbsp;**152** | &nbsp;&nbsp;&nbsp;**149** | &nbsp;&nbsp;&nbsp;**80** | &nbsp;&nbsp;&nbsp;**79** | &nbsp;&nbsp;&nbsp;**80** | &nbsp;&nbsp;&nbsp;**98** | &nbsp;&nbsp;&nbsp;**116** | &nbsp;&nbsp;&nbsp;**110** | &nbsp;&nbsp;&nbsp;**108** | &nbsp;&nbsp;&nbsp;**103** | &nbsp;&nbsp;&nbsp;**72** | &nbsp;&nbsp;&nbsp;**86** | &nbsp;&nbsp;&nbsp;**91** | &nbsp;&nbsp;&nbsp;**86** | &nbsp;&nbsp;&nbsp;**49** | &nbsp;&nbsp;&nbsp;**-15** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (at 8% DR)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**356** | &nbsp;&nbsp;&nbsp;**119** | &nbsp;&nbsp;&nbsp;**90** | &nbsp;&nbsp;&nbsp;**86** | &nbsp;&nbsp;&nbsp;**45** | &nbsp;&nbsp;&nbsp;**43** | &nbsp;&nbsp;&nbsp;**42** | &nbsp;&nbsp;&nbsp;**50** | &nbsp;&nbsp;&nbsp;**58** | &nbsp;&nbsp;&nbsp;**54** | &nbsp;&nbsp;&nbsp;**51** | &nbsp;&nbsp;&nbsp;**47** | &nbsp;&nbsp;&nbsp;**32** | &nbsp;&nbsp;&nbsp;**38** | &nbsp;&nbsp;&nbsp;**39** | &nbsp;&nbsp;&nbsp;**36** | &nbsp;&nbsp;&nbsp;**20** | &nbsp;&nbsp;&nbsp;**-6** |
| &nbsp;&nbsp;&nbsp;**After-tax Net Cash Flow (at 10% DR)** | &nbsp;&nbsp;&nbsp;**$M** | &nbsp;&nbsp;&nbsp;**-205** | &nbsp;&nbsp;&nbsp;**86** | &nbsp;&nbsp;&nbsp;**64** | &nbsp;&nbsp;&nbsp;**60** | &nbsp;&nbsp;&nbsp;**31** | &nbsp;&nbsp;&nbsp;**29** | &nbsp;&nbsp;&nbsp;**28** | &nbsp;&nbsp;&nbsp;**33** | &nbsp;&nbsp;&nbsp;**37** | &nbsp;&nbsp;&nbsp;**34** | &nbsp;&nbsp;&nbsp;**32** | &nbsp;&nbsp;&nbsp;**29** | &nbsp;&nbsp;&nbsp;**19** | &nbsp;&nbsp;&nbsp;**22** | &nbsp;&nbsp;&nbsp;**22** | &nbsp;&nbsp;&nbsp;**20** | &nbsp;&nbsp;&nbsp;**11** | &nbsp;&nbsp;&nbsp;**-3** |

---

*Notes:* MoEq lbs = (Revenue from recovered, payable metal plus by-products before deduction of Royalty TCRC and freight)/(Price of Mo per lb) <br> Closure is costed over 3 years but summarized into a single year in this table for brevity

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**Table 19-5: Production schedule summary**

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Units** | **LOM Totals** | **Year -2** | **Year -1** | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Year 11** | **Year 12** | **Year 13** | **Year 14** |
| Mill Feed | kst | 1582526 | 0 | 0 | 27375 | 54750 | 54900 | 54750 | 54750 | 54750 | 54900 | 54750 | 54750 | 54750 | 54900 | 54750 | 54750 | 54750 |
| *MoS<sub>2</sub>* | *%* | *0.074%* | *0.000%* | *0.000%* | *0.058%* | *0.053%* | *0.063%* | *0.088%* | *0.060%* | *0.052%* | *0.062%* | *0.082%* | *0.087%* | *0.096%* | *0.047%* | *0.063%* | *0.076%* | *0.093%* |
| *Cu* | *%* | *0.105%* | *0.000%* | *0.000%* | *0.093%* | *0.138%* | *0.128%* | *0.101%* | *0.133%* | *0.139%* | *0.131%* | *0.108%* | *0.106%* | *0.089%* | *0.150%* | *0.125%* | *0.109%* | *0.088%* |
| *Ag* | *gpt (metric)* | *3.00* | *0.00* | *0.00* | *3.63* | *3.51* | *3.36* | *2.64* | *3.83* | *4.06* | *3.56* | *3.04* | *2.90* | *2.46* | *4.03* | *3.39* | *2.95* | *2.32* |
| Waste | kst | 2425101 | 156915 | 174639 | 132521 | 90212 | 108661 | 114796 | 91153 | 98714 | 84230 | 93481 | 102999 | 89800 | 71062 | 82589 | 78547 | 74561 |
| *Strip Ratio (waste:sort feed)* | *ratio* | *1.11* | *0.00* | *30.20* | *2.73* | *1.09* | *1.49* | *1.73* | *1.00* | *1.19* | *1.13* | *1.32* | *1.33* | *1.16* | *0.79* | *1.11* | *1.16* | *1.12* |
| *Head Grade (% MoS<sub>2</sub> Eq. recoverable)* | *%* | *0.123%* | *0.000%* | *0.000%* | *0.099%* | *0.109%* | *0.123%* | *0.136%* | *0.118%* | *0.110%* | *0.120%* | *0.130%* | *0.138%* | *0.138%* | *0.108%* | *0.114%* | *0.128%* | *0.140%* |
| Recovered Mo | kst | 646 | 0 | 0 | 8 | 15 | 19 | 26 | 19 | 15 | 19 | 25 | 27 | 29 | 14 | 17 | 23 | 29 |
| Recovered Cu | kst | 1263 | 0 | 0 | 20 | 60 | 57 | 44 | 53 | 60 | 56 | 43 | 40 | 34 | 62 | 54 | 46 | 35 |
| Recovered Ag | koz | 107239 | 0 | 0 | 2367 | 4710 | 4535 | 3190 | 4898 | 5400 | 4529 | 3485 | 3340 | 2982 | 5379 | 4378 | 3545 | 2581 |
| *MoEq lbs* | *mmlbs* | *1908.2* | *0.0* | *0.0* | *26.6* | *58.8* | *66.4* | *73.4* | *63.6* | *59.2* | *64.6* | *69.9* | *74.4* | *74.3* | *58.2* | *61.3* | *68.7* | *75.5* |
| **Item** | **Units** | **LOM Totals** | **Year 15** | **Year 16** | **Year 17** | **Year 18** | **Year 19** | **Year 20** | **Year 21** | **Year 22** | **Year 23** | **Year 24** | **Year 25** | **Year 26** | **Year 27** | **Year 28** | **Year 29** | **Year 30** |
| Mill Feed | kst | 1582526 | 54900 | 54750 | 54750 | 54750 | 54900 | 54750 | 54750 | 54750 | 54900 | 54750 | 54750 | 54750 | 54900 | 54750 | 54750 | 21101 |
| *MoS<sub>2</sub>* | *%* | *0.074%* | *0.101%* | *0.098%* | *0.093%* | *0.042%* | *0.050%* | *0.058%* | *0.071%* | *0.083%* | *0.086%* | *0.086%* | *0.090%* | *0.064%* | *0.074%* | *0.083%* | *0.086%* | *0.065%* |
| *Cu* | *%* | *0.105%* | *0.069%* | *0.068%* | *0.080%* | *0.152%* | *0.139%* | *0.127%* | *0.110%* | *0.096%* | *0.080%* | *0.076%* | *0.076%* | *0.102%* | *0.094%* | *0.076%* | *0.067%* | *0.059%* |
| *Ag* | *gpt (metric)* | *3.00* | *1.93* | *2.00* | *2.38* | *4.32* | *4.24* | *3.78* | *3.34* | *2.85* | *2.34* | *2.27* | *2.40* | *3.00* | *2.79* | *2.32* | *2.11* | *1.64* |
| Waste | kst | 2425101 | 65818 | 75310 | 62410 | 62934 | 97313 | 79768 | 73603 | 65620 | 55778 | 47465 | 41473 | 36454 | 6318 | 3744 | 4553 | 1662 |
| *Strip Ratio (waste:sort feed)* | *ratio* | *1.11* | *0.93* | *1.00* | *0.77* | *0.66* | *1.15* | *1.05* | *1.08* | *1.02* | *0.83* | *0.68* | *0.60* | *0.42* | *0.09* | *0.05* | *0.07* | *0.07* |
| *Head Grade (% MoS<sub>2</sub> Eq. recoverable)* | *%* | *0.123%* | *0.138%* | *0.134%* | *0.132%* | *0.103%* | *0.112%* | *0.114%* | *0.124%* | *0.131%* | *0.124%* | *0.129%* | *0.126%* | *0.110%* | *0.121%* | *0.122%* | *0.122%* | *0.096%* |
| Recovered Mo | kst | 646 | 31 | 30 | 28 | 12 | 16 | 17 | 21 | 25 | 25 | 27 | 27 | 19 | 23 | 25 | 26 | 8 |
| Recovered Cu | kst | 1263 | 26 | 26 | 30 | 62 | 57 | 55 | 49 | 41 | 35 | 34 | 30 | 43 | 42 | 32 | 27 | 9 |
| Recovered Ag | koz | 107239 | 2074 | 2247 | 2872 | 5698 | 5587 | 4889 | 4166 | 3482 | 2818 | 2560 | 2608 | 3728 | 3416 | 2761 | 2303 | 712 |
| *MoEq lbs* | *mmlbs* | *1908.2* | *74.7* | *72.1* | *70.9* | *55.5* | *60.3* | *61.5* | *66.7* | *70.7* | *67.2* | *69.7* | *68.0* | *59.3* | *65.4* | *66.0* | *65.5* | *20.0* |

---

*Notes:* By-product production of rhenium and sulfuric acid is not shown here, but is included in economic analysis <br> MoEq lbs = (Revenue from recovered, payable metal plus by-products before deduction of Royalty TCRC and freight)/(Price of Mo per lb)

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![](ex96-1_048.jpg)

Source: SRK, 2019

**Figure 19-2: Metal production schedule graph**

Note that by-products rhenium and sulfuric acid are included in revenue calculations but physicals are not reported in this graph-set.

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19.6 Pricing Assumptions

Flat non-escalated prices were assumed for the life of the project. Table 22-5 shows the price assumptions used.

**Table 19-6: Pricing assumptions for economic analysis**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Commodity** | &nbsp;&nbsp;**Units** | &nbsp;&nbsp;**Price** |
| &nbsp;&nbsp;Molybdenum metal | &nbsp;&nbsp;$/lb | &nbsp;&nbsp;$15.00 |
| &nbsp;&nbsp;Copper | &nbsp;&nbsp;$/lb | &nbsp;&nbsp;$3.00 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;$/oz | &nbsp;&nbsp;$17.50 |
| &nbsp;&nbsp;Rhenium | &nbsp;&nbsp;$/lb | &nbsp;&nbsp;$1750.00 |
| &nbsp;&nbsp;Sulfuric Acid | &nbsp;&nbsp;$/t | &nbsp;&nbsp;$50.00 |

---

19.7 Processing Recovery Assumptions

The estimated processing recoveries were applied to the grades of material delivered to the mill from the different mineralized zones (per Table 14-13). Note that the material has already been upgraded by mineral sorting and particle recovery at this stage and these numbers reflect only recovery of upgraded material.

**Table 19-7: Processing recovery assumptions used for economic analysis**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Molybdenum** <br> **Recovery** | &nbsp;&nbsp; **Copper** <br> **Recovery** | &nbsp;&nbsp; **Silver** <br> **Recovery** | &nbsp;&nbsp; **Rhenium**<br> **Recovery** | &nbsp;&nbsp; **Sulfuric Acid**<br> **Recovery** |
| &nbsp;&nbsp;91.6% | &nbsp;&nbsp;76.1% | &nbsp;&nbsp;70.7% | &nbsp;&nbsp;90% | &nbsp;&nbsp;95% |

---

Note: Rhenium and sulfuric acid recoveries are based on existing plant operation data at Molymet in Chile and Mexico, Jiangxi Copper in China and Sino Platinum Metals in China – all with actual recoveries higher than those used in the report.

19.8 Capital Costs

Capital costs used for the evaluation are summarized in Table 22-7. Additional detail regarding the estimation of the capital costs is contained in Section 21. Note that the capital costs presented do not include any costs prior to construction commencement. Please refer to Section 26 for an estimate of the pre-feasibility study work program and costs.

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**Table 19-8: Capital cost summary**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Capital Costs** | &nbsp;&nbsp;**($M)** |
| &nbsp;&nbsp;Mine – Equipment, etc. | &nbsp;&nbsp;344 |
| &nbsp;&nbsp;Capitalized Mine Operating Costs | &nbsp;&nbsp;330 |
| &nbsp;&nbsp;Sort Plants | &nbsp;&nbsp;160 |
| &nbsp;&nbsp;Mill | &nbsp;&nbsp;1293 |
| &nbsp;&nbsp;Roaster | &nbsp;&nbsp;208 |
| &nbsp;&nbsp;Tailings | &nbsp;&nbsp;22 |
| &nbsp;&nbsp;Infrastructure | &nbsp;&nbsp;76 |
| &nbsp;&nbsp;**Total Initial Capital Directs** | &nbsp;&nbsp;**2433** |
| &nbsp;&nbsp;**Contingency on Initial Capital Directs (excl Mining)** | &nbsp;&nbsp;**176** |
| &nbsp;&nbsp;**Indirects** |  |
| &nbsp;&nbsp;Mine | &nbsp;&nbsp;15 |
| &nbsp;&nbsp;Plant (incl. Sort) | &nbsp;&nbsp;354 |
| &nbsp;&nbsp;Roaster | &nbsp;&nbsp;81 |
| &nbsp;&nbsp;Infrastructure | &nbsp;&nbsp;14 |
| &nbsp;&nbsp;**Total Initial Capital Indirects** | &nbsp;&nbsp;**464** |
| &nbsp;&nbsp;**Sustaining Capital** |  |
| &nbsp;&nbsp;Mine | &nbsp;&nbsp;428 |
| &nbsp;&nbsp;Sort Plants | &nbsp;&nbsp;42 |
| &nbsp;&nbsp;Mill | &nbsp;&nbsp;349 |
| &nbsp;&nbsp;Roaster | &nbsp;&nbsp;56 |
| &nbsp;&nbsp;Tailings | &nbsp;&nbsp;84 |
| &nbsp;&nbsp;Infrastructure | &nbsp;&nbsp;10 |
| &nbsp;&nbsp;**Total Sustaining Capital** | &nbsp;&nbsp;**970** |
| &nbsp;&nbsp;Closure and Reclamation | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;**Total Capital Costs** | &nbsp;&nbsp;**4193** |
| &nbsp;&nbsp;**Initial Capex** | &nbsp;&nbsp;**3071** |
| &nbsp;&nbsp;**Sustaining and Expansion Capex** | &nbsp;&nbsp;**972** |
| &nbsp;&nbsp;**Closure** | &nbsp;&nbsp;**150** |

---

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19.9 Operating Costs

Operating costs (Opex) are summarized in Table 22-8. The capitalized Opex is pre-stripping, which has been re-allocated and included in the mining capital costs shown in Table 22-8. The unit costs are expressed as total operating costs (before re-allocation) divided by total tonnage.

**Table 19-9: Operating costs summary**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Operating Costs** | &nbsp;&nbsp;**LOM ($M)** | &nbsp;&nbsp;**Unit Rates ($/t)** | &nbsp;&nbsp;**Unit Rates <br> ($/lb Mo.Eq.)** |
| &nbsp;&nbsp;Mining | &nbsp;&nbsp;5797 | &nbsp;&nbsp;$3.66 | &nbsp;&nbsp;$2.99 |
| &nbsp;&nbsp;Bulk Sort | &nbsp;&nbsp;778 | &nbsp;&nbsp;$0.49 | &nbsp;&nbsp;$0.40 |
| &nbsp;&nbsp;Middling Sort | &nbsp;&nbsp;192 | &nbsp;&nbsp;$0.12 | &nbsp;&nbsp;$0.10 |
| &nbsp;&nbsp;Processing | &nbsp;&nbsp;7042 | &nbsp;&nbsp;$4.45 | &nbsp;&nbsp;$3.63 |
| &nbsp;&nbsp;Sort Waste Delivery | &nbsp;&nbsp;395 | &nbsp;&nbsp;$0.25 | &nbsp;&nbsp;$0.20 |
| &nbsp;&nbsp;G&A | &nbsp;&nbsp;805 | &nbsp;&nbsp;$0.51 | &nbsp;&nbsp;$0.42 |
| &nbsp;&nbsp;Less Capitalized Operating Costs | &nbsp;&nbsp;-329 | &nbsp;&nbsp;-$0.21 | &nbsp;&nbsp;-$0.17 |
| &nbsp;&nbsp;**Total Operating Costs** | &nbsp;&nbsp;**14680** | &nbsp;&nbsp;**$9.28** | &nbsp;&nbsp;**$7.57** |

---

 *Note*: MoEq lbs = (Revenue from recovered, payable metal plus by-products before deduction of Royalty TCRC and freight)/(Price of Mo per lb)

The operating cost net of by-product credits (i.e. net revenue from by-products deducted from total opex) is estimated at $4.67 per pound of molybdenum produced, based on the price assumptions for by-products shown in Table 22-5.

19.10 Royalties

No royalties were applied to project for economic analysis.

19.11 Taxation

Corporate taxation in the United States is extremely complex. For this study, the taxation was modeled in a highly simplified manner, as is appropriate for a PEA level of study. Depreciation was also modeled in a simplified fashion, suitable for a PEA evaluation. The project valuation is relatively insensitive to variations in depreciation treatment. A total tax rate of approximately 22% was modeled.

19.12 Off-Site Costs

Off-site costs (concentrate freight, port handling, treatment charges and refining charges) were deducted from payable revenue. The basis for the charges is summarized in Section 19.

19.13 Sensitivity Analysis

The project as currently characterized returns a positive NPV at an 8% discount rate. This indicated the potential of the deposit to support an economic project (note cautionary statements in Section 22.1).

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Table 22-9 to Table 22-12 summarize the sensitivity of the project NPV ($B at 8% discount rate) to variations in key input assumptions across a change of +/-20%.

Mineral resources are not reserves and do not have demonstrated economic viability.

**Table 19-10: Two-factor sensitivity (NPV(8%) in $M) – Capex and Opex**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Opex** | | | | | | |
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**-30%** | <br>&nbsp;&nbsp;**-20%** | <br>&nbsp;&nbsp;**-10%** | <br>&nbsp;&nbsp;**0%** | <br>&nbsp;&nbsp;**10%** | <br>&nbsp;&nbsp;**20%** | <br>&nbsp;&nbsp;**30%** |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**-30%** | &nbsp;&nbsp;$2646.6 | &nbsp;&nbsp;$2287.5 | &nbsp;&nbsp;$1926.6 | &nbsp;&nbsp;$1565.2 | &nbsp;&nbsp;$1204.5 | &nbsp;&nbsp;$844.3 | &nbsp;&nbsp;$478.2 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**-15%** | &nbsp;&nbsp;$2254.1 | &nbsp;&nbsp;$1892.8 | &nbsp;&nbsp;$1531.4 | &nbsp;&nbsp;$1169.2 | &nbsp;&nbsp;$804.0 | &nbsp;&nbsp;$436.8 | &nbsp;&nbsp;$67.5 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**0%** | &nbsp;&nbsp;$1858.9 | &nbsp;&nbsp;$1497.1 | &nbsp;&nbsp;$1132.7 | &nbsp;&nbsp;$764.6 | &nbsp;&nbsp;$395.4 | &nbsp;&nbsp;$25.4 | &nbsp;&nbsp;($346.7) |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**15%** | &nbsp;&nbsp;$1461.1 | &nbsp;&nbsp;$1095.1 | &nbsp;&nbsp;$726.1 | &nbsp;&nbsp;**$355.8** | &nbsp;&nbsp;($16.7) | &nbsp;&nbsp;($389.1) | &nbsp;&nbsp;($764.6) |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**30%** | &nbsp;&nbsp;$1057.6 | &nbsp;&nbsp;$687.7 | &nbsp;&nbsp;$316.9 | &nbsp;&nbsp;($56.5) | &nbsp;&nbsp;($431.4) | &nbsp;&nbsp;($806.4) | &nbsp;&nbsp;($1187.8) |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**45%** | &nbsp;&nbsp;$649.2 | &nbsp;&nbsp;$278.0 | &nbsp;&nbsp;($95.4) | &nbsp;&nbsp;($471.4) | &nbsp;&nbsp;($848.6) | &nbsp;&nbsp;($1228.1) | &nbsp;&nbsp;($1615.8) |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**60%** | &nbsp;&nbsp;$239.1 | &nbsp;&nbsp;($134.3) | &nbsp;&nbsp;($510.3) | &nbsp;&nbsp;($888.2) | &nbsp;&nbsp;($1269.0) | &nbsp;&nbsp;($1654.8) | &nbsp;&nbsp;($2045.8) |

---

**Table 19-11: Two-factor sensitivity (NPV(8%) in $M) – Capex and metal prices**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Price (all metals)** | &nbsp;&nbsp;**Price (all metals)** | | | | | |
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**-30%** | &nbsp;&nbsp;**-20%** | <br>&nbsp;&nbsp;**-10%** | <br>&nbsp;&nbsp;**0%** | <br>&nbsp;&nbsp;**10%** | <br>&nbsp;&nbsp;**20%** | <br>&nbsp;&nbsp;**30%** |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**-30%** | &nbsp;&nbsp;($506.3) | &nbsp;&nbsp;$195.9 | &nbsp;&nbsp;$885.6 | &nbsp;&nbsp;$1565.2 | &nbsp;&nbsp;$2245.7 | &nbsp;&nbsp;$2923.3 | &nbsp;&nbsp;$3601.5 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**-15%** | &nbsp;&nbsp;($933.7) | &nbsp;&nbsp;($217.5) | &nbsp;&nbsp;$479.0 | &nbsp;&nbsp;$1169.2 | &nbsp;&nbsp;$1850.5 | &nbsp;&nbsp;$2531.8 | &nbsp;&nbsp;$3211.5 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**0%** | &nbsp;&nbsp;($1365.2) | &nbsp;&nbsp;($634.8) | &nbsp;&nbsp;$68.1 | &nbsp;&nbsp;$764.6 | &nbsp;&nbsp;$1454.6 | &nbsp;&nbsp;$2136.6 | &nbsp;&nbsp;$2818.7 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**15%** | &nbsp;&nbsp;($1803.9) | &nbsp;&nbsp;($1058.4) | &nbsp;&nbsp;($346.1) | &nbsp;&nbsp;**$355.8** | &nbsp;&nbsp;$1051.9 | &nbsp;&nbsp;$1740.7 | &nbsp;&nbsp;$2423.5 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**30%** | &nbsp;&nbsp;($2247.3) | &nbsp;&nbsp;($1486.9) | &nbsp;&nbsp;($763.2) | &nbsp;&nbsp;($56.5) | &nbsp;&nbsp;$643.6 | &nbsp;&nbsp;$1338.9 | &nbsp;&nbsp;$2027.7 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**45%** | &nbsp;&nbsp;($2693.1) | &nbsp;&nbsp;($1917.8) | &nbsp;&nbsp;($1184.3) | &nbsp;&nbsp;($471.4) | &nbsp;&nbsp;$233.3 | &nbsp;&nbsp;$932.1 | &nbsp;&nbsp;$1626.7 |
| &nbsp;&nbsp;**Capital** | &nbsp;&nbsp;**60%** | &nbsp;&nbsp;($3141.5) | &nbsp;&nbsp;($2352.4) | &nbsp;&nbsp;($1610.5) | &nbsp;&nbsp;($888.2) | &nbsp;&nbsp;($179.1) | &nbsp;&nbsp;$523.5 | &nbsp;&nbsp;$1221.4 |

---

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**Table 19-12: Two-factor sensitivity (NPV(8%) in $M) – Opex and metal prices**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Price (all metals)** | &nbsp;&nbsp;**Price (all metals)** | | | | | |
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**-30%** | &nbsp;&nbsp;**-20%** | <br>&nbsp;&nbsp;**-10%** | <br>&nbsp;&nbsp;**0%** | <br>&nbsp;&nbsp;**10%** | <br>&nbsp;&nbsp;**20%** | <br>&nbsp;&nbsp;**30%** |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**-30%** | &nbsp;&nbsp;($630.4) | &nbsp;&nbsp;$74.4 | &nbsp;&nbsp;$771.0 | &nbsp;&nbsp;$1461.1 | &nbsp;&nbsp;$2144.2 | &nbsp;&nbsp;$2825.4 | &nbsp;&nbsp;$3507.6 |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**-20%** | &nbsp;&nbsp;($1012.4) | &nbsp;&nbsp;($300.4) | &nbsp;&nbsp;$401.0 | &nbsp;&nbsp;$1095.1 | &nbsp;&nbsp;$1782.5 | &nbsp;&nbsp;$2464.1 | &nbsp;&nbsp;$3146.2 |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**-10%** | &nbsp;&nbsp;($1402.0) | &nbsp;&nbsp;($676.9) | &nbsp;&nbsp;$27.9 | &nbsp;&nbsp;$726.1 | &nbsp;&nbsp;$1418.5 | &nbsp;&nbsp;$2102.7 | &nbsp;&nbsp;$2784.9 |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**0%** | &nbsp;&nbsp;($1803.9) | &nbsp;&nbsp;($1058.4) | &nbsp;&nbsp;($346.1) | &nbsp;&nbsp;**$355.8** | &nbsp;&nbsp;$1051.9 | &nbsp;&nbsp;$1740.7 | &nbsp;&nbsp;$2423.5 |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**10%** | &nbsp;&nbsp;($2223.5) | &nbsp;&nbsp;($1448.8) | &nbsp;&nbsp;($721.0) | &nbsp;&nbsp;($16.7) | &nbsp;&nbsp;$682.1 | &nbsp;&nbsp;$1376.5 | &nbsp;&nbsp;$2062.1 |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**20%** | &nbsp;&nbsp;($2649.3) | &nbsp;&nbsp;($1851.4) | &nbsp;&nbsp;($1103.6) | &nbsp;&nbsp;($389.1) | &nbsp;&nbsp;$311.7 | &nbsp;&nbsp;$1009.0 | &nbsp;&nbsp;$1699.8 |
| &nbsp;&nbsp;**Opex** | &nbsp;&nbsp;**30%** | &nbsp;&nbsp;($3062.8) | &nbsp;&nbsp;($2267.6) | &nbsp;&nbsp;($1494.6) | &nbsp;&nbsp;($764.6) | &nbsp;&nbsp;($58.5) | &nbsp;&nbsp;$639.2 | &nbsp;&nbsp;$1334.9 |

---

**Table 19-13: Sensitivity (NPV(8%) in $M) – Individual metal prices**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**Metal Prices** | &nbsp;&nbsp;**Metal Prices** | &nbsp;&nbsp;**Metal Prices** | &nbsp;&nbsp;**Metal Prices** | &nbsp;&nbsp;**Metal Prices** | &nbsp;&nbsp;**Metal Prices** | &nbsp;&nbsp;**Metal Prices** |
| &nbsp;&nbsp;**Post Tax NPV** | &nbsp;&nbsp;**-30%** | &nbsp;&nbsp;**-20%** | &nbsp;&nbsp;**-10%** | &nbsp;&nbsp;**0%** | &nbsp;&nbsp;**10%** | &nbsp;&nbsp;**20%** | &nbsp;&nbsp;**30%** |
| &nbsp;&nbsp;**Molybdenum Price** | &nbsp;&nbsp;$10.50 | &nbsp;&nbsp;$12.00 | &nbsp;&nbsp;$13.50 | &nbsp;&nbsp;$15.00 | &nbsp;&nbsp;$16.50 | &nbsp;&nbsp;$18.00 | &nbsp;&nbsp;$19.50 |
| &nbsp;&nbsp;**Post-tax NPV ($M)** | &nbsp;&nbsp;-$1008 | &nbsp;&nbsp;-$548 | &nbsp;&nbsp;-$96 | &nbsp;&nbsp;**$356** | &nbsp;&nbsp;$804 | &nbsp;&nbsp;$1251 | &nbsp;&nbsp;$1694 |
| &nbsp;&nbsp;**Copper Price** | **$2.10** | **$2.40** | **$2.70** | **$3.00** | **$3.30** | **$3.60** | **$3.90** |
| &nbsp;&nbsp;**Post-tax NPV ($M)** | **-$228** | **-$33** | **$161** | **$356** | **$549** | **$741** | **$933** |
| &nbsp;&nbsp;**Silver Price** | **$12.25** | **$14.00** | **$15.75** | **$17.50** | **$19.25** | **$21.00** | **$22.75** |
| &nbsp;&nbsp;**Post-tax NPV ($M)** | **$220** | **$265** | **$311** | **$356** | **$401** | **$446** | **$490** |

---

Figure 22-4 shows how the project NPV varies as individual commodity prices are varied across a range of +/-30%. Molybdenum, being the main source of revenue, demonstrates greater sensitivity.

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![](ex96-1_049.jpg)

Source: SRK, 2019

**Figure 19-3: Metals price sensitivity – net present value**

Figure 22-4 shows how the project NPV varies as price and operating costs are varied across a range of +/-30%. Capital costs are varied across a range of -20% to 40%. As is common to all minerals industry projects, commodity price is a highly significant driver of value.

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![](ex96-1_050.jpg)

Source: SRK 2019

**Figure 19-4: Single factor sensitivity – net present value**

20 Adjacent Properties

There are no adjacent properties applicable to the CuMo project for disclosure in this report

21 Other Relevant Data and Information

There is no other relevant data available about the CuMo project.

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22 Interpretations and Conclusions

22.1 Conclusions

22.1.1 Mineral Resource

The CuMo project hosts a **measured** mineral resource, at a $5.00/t RCV cut-off of 0.3 billion tons at grades of 0.081% MoS<sub>2</sub>, 0.076% Cu, 2.09 ppm Ag, and 0.030 ppm Re.

The CuMo project also hosts an **indicated** mineral resource, at a $5.00/t RCV cut-off of 1.97 billion tons at grades of 0.053% MoS<sub>2</sub>, 0.085% Cu, 2.57 ppm Ag, and 0.019 ppm Re.

There is a further **inferred** resource of 2.56 billion tons at grades of 0.048% MoS<sub>2</sub>, 0.067% Cu, 2.13 ppm Ag, 0.017 ppm Re.

It is noted that the convention for the CuMo project is to assay for elemental molybdenum to report %Mo, but then this is multiplied by 1.6681 to calculate %MoS<sub>2</sub> in resource estimation and mine planning. Thus, the molybdenum grades for %MoS<sub>2</sub> are 1.6681 times that for %Mo.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

22.1.2 Mining

The CuMo project is to be developed as a large-scale open pit operation, leveraging economies of scale in large mining equipment and optimization of truck hauls to reduce operating costs. It should take full advantage of emerging autonomous machine operation to further improve costs. In this PEA, the author has assumed autonomous operation of both the truck and drill fleets.

The author conducted limited investigation into mass material movement out of the pit (such as Doppelmayr RailCon and Dos Santos sandwich-belt high-angle conveyors). While promising, trade-off studies and further evaluations are required for inclusion in the project development strategy.

22.1.3 Bulk Sorting

The author investigated the application of bulk sorting to the CuMo project and found it an appropriate technology for the mineralization at CuMo. There is sufficient heterogeneity at sub-bench scale (i.e. at the 10 ft interval of exploration hole sampling) to warrant the consideration of bulk sorting.

Current bulk sorting requires consideration of batches of conveyed material, up to 30 seconds, for discretization. To improve sorting at smaller scales, a multi-stage bulk sorting plant has been conceptualized, which provides for three stages of splitting and sorting of the sort feed to achieve adequate segregation of waste, mill feed and middlings material.

22.1.4 Particle Sorting

The author reviewed particle sorting analysis on 400 quarter-core samples across the different CuMo mineralized zones. This demonstrated heterogeneity which would make particle sorting attractive, but not at the scale envisioned for the CuMo project. However, with bulk sorting providing reduced volumes for particle sort feed (i.e. the middlings stream), particle sorting becomes more viable.

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22.1.5 Project Economics

The project as currently characterized returns a positive NPV at an 8% discount rate. This indicated the potential of the deposit to support an economic project.

The PEA described herein is preliminary in nature and is partly based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment based on these mineral resources will be realized.

22.2 Project Risks

22.2.1 Mineral Resource

The mineral resource is supported by exploration results, test-work and modelling. As with any mineral resource estimate there is uncertainty inherent in the estimation process. There is a risk that the grades and metallurgical recoveries may be lower than currently modelled. There is also a risk that the interpretation of the results is inaccurate and that less mineralized material is present than is currently modelled.

Additional exploration and test-work will reduce this risk as the project is advanced.

22.2.2 Mining

The mining concepts for CuMo are largely proven. The adoption of autonomous equipment does possess some risk in that federal and local regulators may require extensive efforts by proponents to ensure the safety of their operations.

The CuMo open pit is envisioned to be a large, deep pit (up to 3,500 ft deep). With this comes the potential geotechnical risk for wall failures. While the author has assumed a relatively flat overall wall angle for the PEA (37°), there may be risks associated with yet unknown rock mass or structural geology conditions that may require consideration of even flatter slopes in places.

22.2.3 Mineral Sorting

The technology envisioned in this PEA for bulk sorting, PGNAA, has had limited application to molybdenum-copper deposits. While demonstrated for some low-grade copper-molybdenum deposits, testing is required to verify that molybdenum is measurable at the specific grades envisioned for CuMo.

Additional testing is required to obtain the final results expected from both bulk and particle sorting.

22.2.4 Processing

There is a risk that achieved recoveries could be lower than estimated, that throughputs will not be achieved and that costs may be higher than modelled. The process recovery, throughput and cost estimates will be refined as part of the pre-feasibility study.

This project also includes the installation of a large quantity of particle sorting machines which, to the knowledge of the author, is beyond the scale of any currently operating concentrators.

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22.2.5 Project Infrastructure

The planned mine will be a green-fields site and requires construction of mine and process-related infrastructure including the TSF. Access roads in and around the project site will be required. There is a risk that the designs, costs and implementation timelines for the provision of this infrastructure may not be as anticipated, increasing costs and schedule.

22.2.6 Permitting

At this time, no issues were identified that would materially impact the ability to eventually extract mineral resources at the project. There is a risk that the mining plan of operations would identify and characterize issues that may lengthen the timeline and increase the costs of permitting the project. Note that the PEA described in this report does not quantify the timeline and costs for the pre-construction and permitting activities.

Previous environmental analyses have identified the presence of a rare plant Sacajawea's bitterroot *,* and potential habitat for Endangered Species Act wildlife, and USFS sensitive species. These potential issues will need to be analyzed and disclosed in NEPA documents and potentially mitigated.

The mine will be located in an area used for weekend summer dispersed recreation and fall big-game hunting and is well-known in the Boise area. Organized environmental groups such as the Idaho Conservation League and Sierra Club are keeping their constituents informed so as to coordinate opposition to the project. As such, well-funded, organized opposition to mining activities should be anticipated.

22.2.7 Economic Risks

**Project Strategy Risk**

Overall, the author considers that the likelihood of a major revision to project strategy emerging from the pre-feasibility study to be moderate. Mineral sorting as contemplated in this study is not a mature technology, and there is a risk that the assumptions used may not prove accurate. Elimination of the mineral sorting pre-process from the strategy has the potential to reduce the economic proposition of the project.

**Commodity Price Risk**

There is a risk that commodity prices may not be consistent with assumptions made in this study. In particular, molybdenum, which contributes the majority of project value is historically subject to significant price volatility.

**Capital Cost Risk**

There is a risk that the capital required to build and operate the project may be higher than that forecast in this study. The author recommends that the precision of the estimates be refined at pre-feasibility study and feasibility study before commitment to project construction is made.

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**Operating Cost Risk**

There is a risk that the operating costs incurred to operate the project may be higher than that forecast in this study. The author notes that variability in the operating cost drivers (productivity, input costs and labor costs) over time is expected. The analysis assumes constant conditions but is best thought of as reflecting an expectation of average costs. The authors recommend that the precision of the estimates be refined at pre-feasibility and feasibility study stages prior to commitment to project construction.

**Schedule Risk**

There is a risk that the schedule to build the project may vary from that assumed in the study. This is an asymmetrical risk, with significantly more downside scope than upside. This risk is exacerbated by the seasonality of the location, with somewhat difficult construction conditions occurring in some winter months. Smalls delays have the potential to be more significant than might otherwise be the case if they push critical path activities into winter months, thereby incurring a much longer delay.

**Process Recovery Risk**

There is a risk that achieved recoveries could be lower than estimated, reducing the revenue and economic returns of the project. The process recovery estimates will be refined as part of the pre-feasibility study and feasibility study.

**Permitting and Pre-construction Schedule Risk**

This was not explicitly considered for the purposes of this study in the economic analysis as the analysis is conducted only from the commencement of construction. Nevertheless, the risk of longer-than-anticipated permitting timeline will reduce the project value is considered from "today" forward.

22.3 Project Opportunities

22.3.1 Mineral Resource

The exploration drilling and thus mineral resource model for CuMo is constrained on the western extents of the deposit. There is opportunity with increased exploration to expand the resource to the west, thus offering either more process feed within the current envisioned open pit or increasing the size of the open pit to the west. This expansion can be done with only minimal effects on the location of the mill, sort plant or crusher.

22.3.2 Mining

With increased knowledge of the rock mass and structural geology, through additional geotechnical field programs and investigation, there is potential to steepen the wall angles for CuMo.

Further consideration of high angle conveying solutions in combination with semi-mobile crushing and conveying (IPCC) concepts could highlight opportunities for cost savings at CuMo. Applying IPCC to sort feed, which needs to be crushed either way and is up to 50% of the mined material, poses the greatest opportunity.

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22.3.3 Mineral Sorting

The bulk sorting analysis was conducted on drill core that was sampled on a standard 10 ft interval. Thus, heterogeneity could only be assessed down to this scale. With multiple stage sorting and splitting, smaller size packets of material could be measured. As heterogeneity increases with reduced scale, there is potential that better segregation of waste, mill feed and middlings is possible. The opportunity would be for increased waste rejection and ultimately reduced middlings fractions to improve the economics of the project.

Ultimately, the potential for exploitation of the heterogeneity of the deposit may not be firmly quantified by way of studies conducted on exploration-level data. Much higher-resolution sampling and sorting may be possible at an operational scale. This has the potential to enhance project economics, but the quantum of that improvement is difficult to quantify.

The field of mineral-sorting is the subject of significant research and development. There exists an opportunity for this project to exploit improvements in technology.

22.3.4 Processing

Additional metallurgical work to determine optimum grind size (the current assessment is based on the finest grind tested to date), analyze recoveries of the various metals, and analyze the effects of the higher grade coming from the mineral sorters on metal recoveries. This has the potential to improve project economics.

Optimization of reagents to reduce costs and improve metallurgical recoveries has the potential to improve recoveries.

There may be opportunity to economically recover tungsten from the mineralized material.

22.3.5 Project Infrastructure

Further studies may allow for optimization of infrastructure design, costing and schedule. Whilst optimization is worth pursuing, the author views modification to the infrastructure concepts to be unlikely to materially affect the economic proposition at a strategic level for the project.

22.3.6 Economic Opportunities

**Real Option Value**

In the case of a large, long-life open-pit mine such as is contemplated for the CuMo project, there exists significant optionality that can be leveraged to improve project cashflows and values. The simple sensitivity analysis conducted in Section 22.13 assumes a constant operating strategy, even as assumptions are varied. In practice, management has the option to alter strategy in response to those variations. Downsides can be mitigated, and upsides can be leveraged for greater returns.

It is also expected that the mine would be run using a dynamic cut-off policy where sorting strategies and cut-offs, mill-feed cut-offs, stockpiling strategies and mining rates will all be varied in real time to maximize returns as prices and costs vary. The benefits of this strategy are not reflected in the central estimate approach to valuation summarized in this report.

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**Project Strategy Opportunity**

While the probability of a major revision to project strategy can be considered moderate, careful consideration and revision of the strategic decisions should be a feature of studies going forward. In particular, effort should be made to enhance the optionality of the project, particularly where this is low cost.

**Commodity Price Opportunity**

There is a risk that commodity prices may not be consistent with assumptions made in this study. Higher prices, both realized and forecast would lead to re-optimization of the mine and processing plans with a potential to create additional value beyond that shown by the sensitivity analysis summarized in Section 22.11.

**Capital Cost Opportunity**

Opportunities to reduce or defer capital expenditure may be realized in future studies. Care should be taken when considering the relationship between lower capital opportunities and technical risk to the project.

**Operating Cost Opportunity**

Operating costs may be lower than forecast for the purposes of this study. Lower costs should feed into both strategic and short-term mine planning, to allow optimization of stockpiling, sorting and mill feed strategies.

**Schedule Opportunity**

This risk is highly asymmetric. The authors consider that the opportunity to execute a significantly shorter construction program is low. The authors caution that optimized schedules with multiple critical or near-critical path activities will contain additional embedded risks.

**Process Recovery Opportunity**

Further metallurgical test-work will allow for optimization of the process flow sheet and plant design in the pre-feasibility and feasibility studies. Better than planned recoveries are possible.

**Pit Slope Angle Opportunity**

This is not considered to be a significant opportunity from an economic perspective. Strip ratios are relatively low, and incremental change in waste-movement volumes do not impact the overall project economics significantly.

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23 Recommendations

23.1 Mineral Resources

Exploration work consisting mainly of drilling is required to reach pre-feasibility. It is estimated that a total of 33 additional holes for 71,000 ft plus an additional five geotechnical holes for 12,000 ft on the deposit plus additional 74,800 ft allocated to condemnation drilling of waste dump, mill site and tailings pond areas, making a total of 157,800 ft of drilling budgeted. This drilling is broken into the following categories.

● In-fill drilling

● Delineation drilling

● Orientated geotechnical drilling – requires oriented core recovery system

● Drilling for metallurgical sample – large diameter hole (PQ size) recommended

● Condemnation drilling waste dump, mill and tailings site

The shortest time to complete this work will be two seasons using four drill rigs each season.

23.2 Pit Geotechnical

The author provides these recommendations for the next steps of geotechnical assessment:

● Geotechnical database QA/QC assessment (to address the inconsistencies and potentially poor data observed in the existing data set)

Select a sub-set (~10%) of resource drill holes that give good spatial coverage of the proposed pit walls, and from multiple drilling campaigns

– Undertake quantitative basic geotechnical logging using the full core photographs of these drill holes (TCR, SCR, RQD and FF/m)

– FF/m vs RQD plots for both data-sets

– Comparison of the values in the database with the photo-logged values

– Assessment of differences in order to determine whether variance is systematic or random, and consequently decide on the respective approach to address e.g. apply correction factor, re-logging more of the drill holes

– Qualitative assessment of the rock susceptibility to deterioration by comparing core in the photos (fresh), to the current condition of the stored core (aged)

● Major structures assessment

– Log the photos of the core for major structures

– Develop conceptual integrated litho-structural 3-D model

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● Geotechnical-specific diamond-cored drill holes targeted to provide coverage of the proposed interim and ultimate pit walls, and compatible with the pit depth

– Geotechnical logging to RMR<sub>B</sub>89 system (historical logging to RMR<sub>L</sub>90 which is typically for underground mine applications)

– Field (empirical and point load) and laboratory (uniaxial and triaxial compressive strength and direct shear) testing of fresh core to determine intact rock strength

– Calculate RMR values and conduct comparison with lithology, alteration and mineralogy zones of the 3-D geology model to establish broad geotechnical domains

– Establish pit sectors and domain-representative sections to conduct pit slope stability analyses and select pit design angles

23.3 Mining

The author recommends further study of the application of high angle conveying of sort feed at CuMo.

The author further recommends the continued consideration of autonomous haulage for CuMo, with commensurate refinement of performance parameters and costs.

23.4 Mineral Sorting

The author recommends that CuMoCo engage with bulk and particle sorting technology providers to advance testing of penetrative technologies (e.g. PGNAA) and other mineral sensing techniques for the measurement of molybdenum in lower grade applications.

23.5 Processing

Metallurgical aspects to be studied were highlighted in the preliminary metallurgical analysis, some of which require larger samples to finalize the detailed flow sheet and determine how many cleaning stages will be required for flotation, as well as to confirm the total number and configuration of particle sorting units required. One important part of the analysis is a grinding versus recoverability study, as in the previous study only two grinding sizes were studied: coarse and fine. The fine grind proved to be more profitable despite the increase in costs. Further study with multiple grinding size options is required to determine an optimum grinding system.

Work will consist of collecting and analyzing a large, 2+ ton bulk sample to determine the optimum flow sheet for the deposit; and a variability study to analyze variations within the deposit. A total of 100 to 150 twenty-kilogram samples will be used for the variability study.

It is recommended that single stage SAG milling to 71 microns be evaluated as a possible way to reduce capital costs of the multiple grinding circuits. If a slightly coarser primary grind can be shown to be feasible, this will allow smaller grinding line modules to be selected. Production from a single line SAG plant can then be doubled with the addition of a ball mill, without changing the feed end storage or feed conveying equipment. This would lead to starting up the plant at much lower tonnage and create options to increase production as needed.

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It is also recommended that the potential recovery of tungsten as an economic mineral be considered in future test-work planning.

23.6 Tailings Management

Engineering studies, including TSF design and potential water management and treatment design, including:

● Updating the TSF and Clear Creek waste facility designs based on field investigation results

● Developing tailings deposition plan and waste placement sequence to match pit development and mill output

● Detailed analysis of the water and load balance to predict the accumulation of mill reagents in the process water circuit from the tailings

23.7 Permitting

A mining plan of operations and reclamation cost estimate must be prepared to identify locations of the mine, waste rock dumps, roads (haul and access), power and water line corridors from the source to the point of use, mill, tailings storage facility, and other support facilities. Operating plans must be developed in conjunction with the mining plan of operations. ICMC should develop robust reclamation and closure plans for the facilities. ICMC should also begin acquiring any necessary water rights. Stakeholder outreach should continue.

Once the facility locations have been determined, ICMC should coordinate with state and federal agencies to identify the baseline studies that will need to be completed to support the development of an environmental impact statement and initiate those studies.

23.8 Plan and Budget for Additional Work

Table 26-1 sets out a summary of work expected to be completed prior to final permitting being completed. The estimated time frame for this work program is three years.

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**Table 23-1: Budget for additional work**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Additional Information** | &nbsp;&nbsp; **Budget**<br> **(000s $)** |
| &nbsp;&nbsp;Diamond Drilling |  |  |
| &nbsp;&nbsp;Delineation, infill, metallurgy | &nbsp;&nbsp;48,097 m (157,800 ft) @ $100/ft | &nbsp;&nbsp;15780 |
| &nbsp;&nbsp;Road Construction | &nbsp;&nbsp;2 km @ $50,000/km | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Sample Preparation and Analysis | &nbsp;&nbsp;8,800 @ $60 each | &nbsp;&nbsp;528 |
| &nbsp;&nbsp;Metallurgical Testing | &nbsp;&nbsp;Sample Collection, etc. | &nbsp;&nbsp;125 |
|  | &nbsp;&nbsp;Batch Round of Testing | &nbsp;&nbsp;1000 |
|  | &nbsp;&nbsp;Variability Test-work | &nbsp;&nbsp;1200 |
| &nbsp;&nbsp;Land Acquisition and Staking Costs |  | &nbsp;&nbsp;8000 |
| &nbsp;&nbsp;Environmental Studies | &nbsp;&nbsp;Environmental Assessment | &nbsp;&nbsp;713 |
|  | &nbsp;&nbsp;Baseline Studies Startup | &nbsp;&nbsp;12500 |
|  | &nbsp;&nbsp;Environmental Plan of Operations | &nbsp;&nbsp;800 |
|  | &nbsp;&nbsp;Environmental Impact Statement | &nbsp;&nbsp;23500 |
|  | &nbsp;&nbsp;Permitting | &nbsp;&nbsp;3000 |
| &nbsp;&nbsp;Engineering Studies Scoping | &nbsp;&nbsp;Mill Site, Tailings Site Analysis | &nbsp;&nbsp;550 |
|  | &nbsp;&nbsp;Intergoverment Task Force Creation | &nbsp;&nbsp;500 |
|  | &nbsp;&nbsp;Mining Plan of Operations | &nbsp;&nbsp;1200 |
|  | &nbsp;&nbsp;Pre-feasibility Study | &nbsp;&nbsp;5500 |
| &nbsp;&nbsp;Mobilization-Demobilization |  | &nbsp;&nbsp;427 |
| &nbsp;&nbsp;Road Maintenance |  | &nbsp;&nbsp;325 |
| &nbsp;&nbsp;Supervision and Project Management | &nbsp;&nbsp;Supervision | &nbsp;&nbsp;225 |
|  | &nbsp;&nbsp;Corporate Manager | &nbsp;&nbsp;360 |
|  | &nbsp;&nbsp;Project Manager | &nbsp;&nbsp;240 |
|  | &nbsp;&nbsp;Assistant Geologist(2) | &nbsp;&nbsp;364 |
|  | &nbsp;&nbsp;Technicians (12) | &nbsp;&nbsp;1174 |
| &nbsp;&nbsp;Vehicles | &nbsp;&nbsp;5 Vehicles | &nbsp;&nbsp;150 |
| &nbsp;&nbsp;Accommodation and Food | &nbsp;&nbsp;30 Personnel | &nbsp;&nbsp;760 |
| &nbsp;&nbsp;Travel |  | &nbsp;&nbsp;42 |
| &nbsp;&nbsp;Project Office and Warehouse |  | &nbsp;&nbsp;1225 |
| &nbsp;&nbsp;Land Filing Fees | &nbsp;&nbsp;Current BLM: $155/claim/year | &nbsp;&nbsp;87 |
| &nbsp;&nbsp;Land Filing Fees | &nbsp;&nbsp;Projected Additional Filing Fees | &nbsp;&nbsp;256 |
| &nbsp;&nbsp;Consultants | &nbsp;&nbsp;(Mining, Metallurgical and Marketing) | &nbsp;&nbsp;575 |
| &nbsp;&nbsp;Resource Modeling |  | &nbsp;&nbsp;1650 |
| &nbsp;&nbsp;Public Relations and Project | &nbsp;&nbsp;Public Relations and Legal, etc. | &nbsp;&nbsp;2550 |
| &nbsp;&nbsp;Presentation | &nbsp;&nbsp;Liaison County and State Officials | &nbsp;&nbsp;1250 |
| &nbsp;&nbsp;**Subtotal** |  | &nbsp;&nbsp;**86655** |
| &nbsp;&nbsp;Contingency |  | &nbsp;&nbsp;13345 |
| &nbsp;&nbsp;**Total** |  | &nbsp;&nbsp;**100000** |

---

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24 References

Anderson, A.L., 1947, Geology and Ore Deposits of the Boise Basin, Idaho, USGS Bull 944C.

Armstrong, R.L., Taubeneck, W.H., Hales, P.O., 1977. Rb–Sr and K–Ar geochronometry of Mesozoic granitic rocks and their Sr isotopic composition, Oregon, Washington, and Idaho. Geological Society of America Bulletin 88, 397–411.

Arseneau, G., McCarthy, R., Thomas, A., Boese, C., Winkelmann, N., Sawyer, V., Giroux, G., Starkey, J., Preliminary Economic Assessment & NI 43-101 Technical Report for the CuMo Project, USA. Interim technical report, November 2019.

Ausenco Canada Inc., 2009, CUMO Project – Throughput Scoping Study Report, November 27, 2009.

Baker, D.J., 1985, Geology of the CUMO Molybdenum-Copper System, Boise County, Idaho, Geological Society of America, Abstracts with Programs 1985, Rocky Mountain Section, No. 70043, p 205.

Baker, D.J., 1983, The CUMO Molybdenite System, Boise, Idaho, A Comprehensive Summary", Climax Molybdenum Company, April 1983, unpublished.

Bennett, E.H., 1986, Relationship of the trans-Challis fault system in central Idaho to Eocene and Basin and Range extensions, Geology, v. 14, p. 481-484.

Braun, R.M., Holmgren, J,A,, Giroux, G.H., Kehmeier, R., Khoury, C., 2009, CUMO Property Preliminary Economic Assessment, Boise County, Idaho, for Mosquito Consolidatd Gold Mines Ltd., an Ausenco National Instrument 43-101 report dated November 18, 2009.

Carten, R.B., White, W.H. and Stein, H.J., 1993, High-Grade Granite-Related Molybdenite Systems: Classification and Origin, in Kirkham, R.V., Sinclair, W.D., Thorpe, R.I. and Duke, J.M., eds., Mineral Deposit Modeling; Geological Association of Canada, Special Paper 40, p. 521-544.

CPM Group Molybdenum Market Outlook reports 2017 and 2018, CPM Group, New York, private reports available by subscription only.

Giroux, G. Cavey, G. and Gunning, D., 2005, Summary Report on the CUMO Molybdenum Property, Boise County, Idaho, for Kobex Resources LTD., unpublished.

Giroux, G. Dykes, S. and Place, J.H. 2015, Summary Report on the CUMO Molybdenum Property, Boise County, Idaho. A national instrument 43-101 Report for American CuMo Mining Corp.

Hildenbrand, T.G., Berger, B. and Jachens, R.C., 2000, Regional Crustal Structures and Their Relationship to the Distribution of Ore Deposits in the Western United States, Based on Magnetic and Gravity Data, Econ. Geol. v.95, p. 1583-1603.

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Holmgren, J. and Giroux, G. 2008. Summary Report on the CUMO Property, Boise County, Idaho. NI 43-101 Technical Report for Mosquito Consolidated Gold Mines Ltd., posted at www.sedar.com

Idaho Department of Water Resources. 2018. Water District Descriptions, https://idwr.idaho.gov/ExternalReports/WaterDistrictDescriptionReport.pdf , accessed November 20, 2018.

Johnson, B. R. and Raines G. L., 1996, Digital representation of the Idaho state geologic map: a contribution to the Interior Columbia River Basin Ecosystem Management Project; USGS Open File Report 95-690.

Killsgaard, T.H, Stanford, L.R. and Lewis, R.S., 2006, Geologic Map of the Deadwood River 30 x 60 Minute Quadrangle, Idaho; Idaho Geological Survey, Geologic Map 45.

Killsgaard, T.H, Stanford, L.R. and Lewis, R.S., 2001, Geologic Map of the Idaho City 30 x 60 Minute Quadrangle, Idaho; Idaho Geological Survey, Geologic Map 29.

Killsgaard, T.H, Fisher, F.S. and Bennet, E.H., 1989, Gold-Silver Deposits Associated with the Trans-Challis Fault System, Idaho; USGS Bull 1857-B, p. B22-B44

Killsgaard, T.H, and Lewis, R.S., 1985, Plutonic Rocks of Cretaceous Age and Faults in the Atlanta Lobe of the Idaho Batholith, Challis Quadrangle; USGS Bull 1658 A-S, p. 29-42.

Klein, T.L., 2004, Mineral deposit data for epigenetic base-and precious-metal and uranium-thorium deposits in south-central and southwestern Montana and southern and central Idaho, USGS Open File Report 2004-1005.

Link, P.K., 2002, Geological Map of Boise County, Idaho; in Digital Atlas of Idaho, website: http://imnh.isu.edu/digitalatlas/counties/geomaps/geomap.htm

Lipsett, J. and Simpson Jr, 1973, Analysis of the response by wheat to the application of molybdenum in relation to nitrogen status, Australian Journal of Experimental Agriculture and Animal Husbandry

Lowell, J.D. and Guilbert, J.M. (1970) Lateral and Vertical Alteration-Mineralization Zoning in Porphyry Ore Deposits. Economic Geology, 65, 373-408.

Lund, K., Klein, T.L, O'Neill and J.M., Sims, P.K., 2005, Influence of structure and composition of basement on mineral deposits across Montana and Idaho; EarthScope in the Northern Rockies

Workshop, Program, Session III; website: Mutchler, F.E., Ludington, S. and Bookstrom, A.A., 1999, Giant porphyry-related metal camps of the world — a database, USGS Open File Report 99-556.

O'Neill, J.M., and Lopez, D.A., 1985, Character and regional significance of the Great Falls tectonic zone, east-central Idaho and west-central Montana: American Association of Petroleum Geologists Bulletin, v. 69, p. 437–477.

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Panteleyev, A., 1995, Porphyry Cu+/-Mo+/-Au, in "Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal", Lefebvre, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 87-92.

Rostad, O.H., 1978, K-Ar dates for mineralization in the White Cloud-Cannivan porphyry molybdenum belt of Idaho-Montana: A discussion: Econ. Geol. v. 73, p. 1366–1367.

Sims, P.K. Lund, K. and Anderson, E., 2005, Precambrian Crystalline Basement Map of Idaho – An Interpretation of Aeromagnetic Anomalies; USGS, Scientific Investigations Map 2884.

Singer, D.A, Berger, V.I., and Moring, B.C., 2005, Porphyry Copper Deposits of the World: Database, Map, and Grade and Tonnage Models, USGS Open File Report 2005-1060.

Spanski, G.T., 2004, Inventory of Significant Mineral Deposit Occurrences in the Headwaters Project Area in Idaho, Western Montana, and Extreme Eastern Oregon and Washington, USGS Open File Report 2004-1038.

SGS, 2009, An Investigation into the Recovery of Molybdenum, Copper and Silver from CUMO samples prepared for Mosquito Consolidated Gold Mines Ltd Project 50004-001

Snowden Mining Industry Consultants (2012), Jones, I., Scott K., Kehmeier, R., and Khoury, C., Resource Estimate Update June 2011, updated June 2012 posted at www.sedar.com

United States Department of Agriculture, Forest Service, 2018. Supplemental Redline Environmental Assessment CuMo Exploration Project, December 2018.

United States Department of Agriculture, Forest Service, 2015. CuMo Exploratory Project Supplemental Environmental Assessment, March 2015.

United States Department of Agriculture, Forest Service, 2011.Environmental Assessment CuMo Project, February 2011.

25 Reliance on Other Experts

In relation to the information contained in Section 4.2 and Section 4.3, The author has performed an independent legal review and verification of land title and tenure information. The author did verify the legality of the underlying agreement(s) that may exist concerning the permits or other agreement(s) between third parties. The authors have relied upon information collated by CuMoCo with regard to legal matters relevant to this report. This reliance is on information as to claim ownership and mineral rights as provided by the United States Bureau of Land Management.

The authors have relied on the USFS and NEPA to examine procedures and status for Sections 4.4 and 20, and various accounting firms have been contacted to confirm the current US Mine tax system used in Sections 21 and 22.

With respect to Section 4.5 The author was informed by CuMoCo that there are no known litigations potentially affecting the CuMo project.

The author has no reason to believe that any of the information as provided by CuMoCo and outlined above is inaccurate or misleading.

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**Appendix 1: Claims List**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Unpatented CuMo Claim List 2018** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018** |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Claim Name/Number | &nbsp;&nbsp;BLM <br> Serial No. | &nbsp;&nbsp;County<br> Instrument<br> Number | &nbsp;&nbsp;Loc Dt |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;CUMO #1 | &nbsp;&nbsp;188031 | &nbsp;&nbsp;201255 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;CUMO #2 | &nbsp;&nbsp;188032 | &nbsp;&nbsp;201256 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;CUMO #3 | &nbsp;&nbsp;188033 | &nbsp;&nbsp;201257 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;CUMO #4 | &nbsp;&nbsp;188034 | &nbsp;&nbsp;201258 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;CUMO #5 | &nbsp;&nbsp;188035 | &nbsp;&nbsp;201259 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;6 | &nbsp;&nbsp;CUMO #6 | &nbsp;&nbsp;188036 | &nbsp;&nbsp;201260 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;7 | &nbsp;&nbsp;CUMO #7 | &nbsp;&nbsp;188037 | &nbsp;&nbsp;201261 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;8 | &nbsp;&nbsp;CUMO #8 | &nbsp;&nbsp;188038 | &nbsp;&nbsp;201262 | &nbsp;&nbsp;Mar-05 |
| &nbsp;&nbsp;9 | &nbsp;&nbsp;NEW CUMO #9 | &nbsp;&nbsp;187938 | &nbsp;&nbsp;199561 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;10 | &nbsp;&nbsp;NEW CUMO #10 | &nbsp;&nbsp;187939 | &nbsp;&nbsp;199562 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;11 | &nbsp;&nbsp;NEW CUMO #11 | &nbsp;&nbsp;187940 | &nbsp;&nbsp;199563 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;12 | &nbsp;&nbsp;NEW CUMO #12 | &nbsp;&nbsp;187941 | &nbsp;&nbsp;199564 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;13 | &nbsp;&nbsp;NEW CUMO #13 | &nbsp;&nbsp;187942 | &nbsp;&nbsp;199565 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;14 | &nbsp;&nbsp;NEW CUMO #14 | &nbsp;&nbsp;187943 | &nbsp;&nbsp;199566 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;15 | &nbsp;&nbsp;NEW CUMO #15 | &nbsp;&nbsp;187944 | &nbsp;&nbsp;199567 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;16 | &nbsp;&nbsp;NEW CUMO #16 | &nbsp;&nbsp;187945 | &nbsp;&nbsp;199568 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;17 | &nbsp;&nbsp;NEW CUMO #17 | &nbsp;&nbsp;187946 | &nbsp;&nbsp;199569 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;18 | &nbsp;&nbsp;NEW CUMO #18 | &nbsp;&nbsp;187947 | &nbsp;&nbsp;199570 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;19 | &nbsp;&nbsp;NEW CUMO #19 | &nbsp;&nbsp;187948 | &nbsp;&nbsp;199571 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;20 | &nbsp;&nbsp;NEW CUMO #20 | &nbsp;&nbsp;187949 | &nbsp;&nbsp;199572 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;21 | &nbsp;&nbsp;NEW CUMO #21 | &nbsp;&nbsp;187950 | &nbsp;&nbsp;199573 | &nbsp;&nbsp;Oct-04 |
| &nbsp;&nbsp;22 | &nbsp;&nbsp;NEW CUMO #22 | &nbsp;&nbsp;187951 | &nbsp;&nbsp;199574 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;23 | &nbsp;&nbsp;NEW CUMO #23 | &nbsp;&nbsp;187952 | &nbsp;&nbsp;199774 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;24 | &nbsp;&nbsp;NEW CUMO #24 | &nbsp;&nbsp;187953 | &nbsp;&nbsp;199775 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;25 | &nbsp;&nbsp;NEW CUMO #25 | &nbsp;&nbsp;187954 | &nbsp;&nbsp;199575 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;26 | &nbsp;&nbsp;NEW CUMO #26 | &nbsp;&nbsp;187955 | &nbsp;&nbsp;199576 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;27 | &nbsp;&nbsp;NEW CUMO #27 | &nbsp;&nbsp;187956 | &nbsp;&nbsp;199577 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;28 | &nbsp;&nbsp;NEW CUMO #28 | &nbsp;&nbsp;187957 | &nbsp;&nbsp;199578 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;29 | &nbsp;&nbsp;NEW CUMO #29 | &nbsp;&nbsp;187958 | &nbsp;&nbsp;199579 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;30 | &nbsp;&nbsp;NEW CUMO #30 | &nbsp;&nbsp;187959 | &nbsp;&nbsp;199580 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;31 | &nbsp;&nbsp;NEW CUMO #31 | &nbsp;&nbsp;187960 | &nbsp;&nbsp;199581 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;32 | &nbsp;&nbsp;NEW CUMO #32 | &nbsp;&nbsp;187961 | &nbsp;&nbsp;199582 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;33 | &nbsp;&nbsp;NEW CUMO #33 | &nbsp;&nbsp;187962 | &nbsp;&nbsp;199583 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;34 | &nbsp;&nbsp;NEW CUMO #34 | &nbsp;&nbsp;187963 | &nbsp;&nbsp;199584 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;35 | &nbsp;&nbsp;NEW CUMO #35 | &nbsp;&nbsp;187964 | &nbsp;&nbsp;199585 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;36 | &nbsp;&nbsp;NEW CUMO #36 | &nbsp;&nbsp;187965 | &nbsp;&nbsp;199586 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;37 | &nbsp;&nbsp;NEW CUMO #37 | &nbsp;&nbsp;187966 | &nbsp;&nbsp;199587 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;38 | &nbsp;&nbsp;NEW CUMO #38 | &nbsp;&nbsp;187967 | &nbsp;&nbsp;199588 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;39 | &nbsp;&nbsp;NEW CUMO #39 | &nbsp;&nbsp;187968 | &nbsp;&nbsp;199589 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;40 | &nbsp;&nbsp;NEW CUMO #40 | &nbsp;&nbsp;187969 | &nbsp;&nbsp;199590 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;41 | &nbsp;&nbsp;NEW CUMO #41 | &nbsp;&nbsp;187970 | &nbsp;&nbsp;199591 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;42 | &nbsp;&nbsp;NEW CUMO #42 | &nbsp;&nbsp;187971 | &nbsp;&nbsp;199592 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;43 | &nbsp;&nbsp;NEW CUMO #43 | &nbsp;&nbsp;187972 | &nbsp;&nbsp;199593 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;44 | &nbsp;&nbsp;NEW CUMO #44 | &nbsp;&nbsp;187973 | &nbsp;&nbsp;199594 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;45 | &nbsp;&nbsp;NEW CUMO #45 | &nbsp;&nbsp;187974 | &nbsp;&nbsp;199595 | &nbsp;&nbsp;Nov-04 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 2** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 2** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 2** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 2** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 2** |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Claim Name/Number | &nbsp;&nbsp;BLM<br> Serial No. | &nbsp;&nbsp;County<br> Instrument<br> Number | &nbsp;&nbsp;Loc Dt |
| &nbsp;&nbsp;46 | &nbsp;&nbsp;NEW CUMO #46 | &nbsp;&nbsp;187975 | &nbsp;&nbsp;199596 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;47 | &nbsp;&nbsp;NEW CUMO #47 | &nbsp;&nbsp;187976 | &nbsp;&nbsp;199597 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;48 | &nbsp;&nbsp;NEW CUMO #48 | &nbsp;&nbsp;187977 | &nbsp;&nbsp;199598 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;49 | &nbsp;&nbsp;NEW CUMO #49 | &nbsp;&nbsp;187978 | &nbsp;&nbsp;199599 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;50 | &nbsp;&nbsp;NEW CUMO #50 | &nbsp;&nbsp;187979 | &nbsp;&nbsp;199600 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;51 | &nbsp;&nbsp;NEW CUMO #51 | &nbsp;&nbsp;187980 | &nbsp;&nbsp;199601 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;52 | &nbsp;&nbsp;NEW CUMO #52 | &nbsp;&nbsp;187981 | &nbsp;&nbsp;199602 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;53 | &nbsp;&nbsp;NEW CUMO #53 | &nbsp;&nbsp;187982 | &nbsp;&nbsp;199603 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;54 | &nbsp;&nbsp;NEW CUMO #54 | &nbsp;&nbsp;187983 | &nbsp;&nbsp;199604 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;55 | &nbsp;&nbsp;NEW CUMO #55 | &nbsp;&nbsp;187984 | &nbsp;&nbsp;199605 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;56 | &nbsp;&nbsp;NEW CUMO #56 | &nbsp;&nbsp;187985 | &nbsp;&nbsp;199606 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;57 | &nbsp;&nbsp;NEW CUMO #57 | &nbsp;&nbsp;187986 | &nbsp;&nbsp;199607 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;58 | &nbsp;&nbsp;NEW CUMO #58 | &nbsp;&nbsp;187987 | &nbsp;&nbsp;199608 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;59 | &nbsp;&nbsp;NEW CUMO #59 | &nbsp;&nbsp;187988 | &nbsp;&nbsp;199609 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;60 | &nbsp;&nbsp;NEW CUMO #60 | &nbsp;&nbsp;187989 | &nbsp;&nbsp;199776 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;61 | &nbsp;&nbsp;NEW CUMO #61 | &nbsp;&nbsp;187990 | &nbsp;&nbsp;199777 | &nbsp;&nbsp;Nov-04 |
| &nbsp;&nbsp;62 | &nbsp;&nbsp;CUMO #62 | &nbsp;&nbsp;188205 | &nbsp;&nbsp;202147 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;63 | &nbsp;&nbsp;CUMO #63 | &nbsp;&nbsp;188206 | &nbsp;&nbsp;202148 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;64 | &nbsp;&nbsp;CUMO #64 | &nbsp;&nbsp;188207 | &nbsp;&nbsp;202149 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;65 | &nbsp;&nbsp;CUMO #65 FRACT. | &nbsp;&nbsp;188208 | &nbsp;&nbsp;202150 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;66 | &nbsp;&nbsp;CUMO #66 | &nbsp;&nbsp;188209 | &nbsp;&nbsp;202151 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;67 | &nbsp;&nbsp;CUMO #67 FRACTION | &nbsp;&nbsp;188210 | &nbsp;&nbsp;202152 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;68 | &nbsp;&nbsp;CUMO #68 FRACT. | &nbsp;&nbsp;188211 | &nbsp;&nbsp;202153 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;69 | &nbsp;&nbsp;CUMO #69 FR. | &nbsp;&nbsp;188212 | &nbsp;&nbsp;202154 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;70 | &nbsp;&nbsp;CUMO #70 FRACT. | &nbsp;&nbsp;188213 | &nbsp;&nbsp;202155 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;71 | &nbsp;&nbsp;CUMO #71 | &nbsp;&nbsp;188214 | &nbsp;&nbsp;202156 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;72 | &nbsp;&nbsp;CUMO #72 | &nbsp;&nbsp;188215 | &nbsp;&nbsp;202157 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;73 | &nbsp;&nbsp;CUMO #73 | &nbsp;&nbsp;188216 | &nbsp;&nbsp;202158 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;74 | &nbsp;&nbsp;CUMO #74 | &nbsp;&nbsp;188217 | &nbsp;&nbsp;202159 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;75 | &nbsp;&nbsp;CUMO #75 | &nbsp;&nbsp;188218 | &nbsp;&nbsp;202160 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;76 | &nbsp;&nbsp;CUMO #76 | &nbsp;&nbsp;188219 | &nbsp;&nbsp;202161 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;77 | &nbsp;&nbsp;CUMO #77 | &nbsp;&nbsp;188220 | &nbsp;&nbsp;202162 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;78 | &nbsp;&nbsp;CUMO #78 | &nbsp;&nbsp;188221 | &nbsp;&nbsp;202163 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;79 | &nbsp;&nbsp;CUMO #79 | &nbsp;&nbsp;188222 | &nbsp;&nbsp;202164 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;80 | &nbsp;&nbsp;CUMO #80 | &nbsp;&nbsp;188223 | &nbsp;&nbsp;202165 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;81 | &nbsp;&nbsp;CUMO #81 | &nbsp;&nbsp;188224 | &nbsp;&nbsp;202166 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;82 | &nbsp;&nbsp;CUMO #82 | &nbsp;&nbsp;188225 | &nbsp;&nbsp;202167 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;83 | &nbsp;&nbsp;CUMO #83 | &nbsp;&nbsp;188226 | &nbsp;&nbsp;202168 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;84 | &nbsp;&nbsp;CUMO #84 | &nbsp;&nbsp;188227 | &nbsp;&nbsp;202169 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;85 | &nbsp;&nbsp;CUMO #85 | &nbsp;&nbsp;188228 | &nbsp;&nbsp;202271 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;86 | &nbsp;&nbsp;CUMO #86 | &nbsp;&nbsp;188229 | &nbsp;&nbsp;202272 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;87 | &nbsp;&nbsp;CUMO #87 | &nbsp;&nbsp;188230 | &nbsp;&nbsp;202273 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;88 | &nbsp;&nbsp;CUMO #88 | &nbsp;&nbsp;188231 | &nbsp;&nbsp;202274 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;89 | &nbsp;&nbsp;CUMO #89 | &nbsp;&nbsp;188232 | &nbsp;&nbsp;202275 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;90 | &nbsp;&nbsp;CUMO #90 | &nbsp;&nbsp;188233 | &nbsp;&nbsp;202276 | &nbsp;&nbsp;May-05 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 3** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 3** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 3** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 3** | &nbsp;&nbsp;**Unpatented Cumo Claim List 2018 - Page 3** |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Claim Name/Number | &nbsp;&nbsp;BLM <br> Serial No. | &nbsp;&nbsp;County<br> Instrument<br> Number | &nbsp;&nbsp;Loc Dt |
| &nbsp;&nbsp;91 | &nbsp;&nbsp;CUMO #91 | &nbsp;&nbsp;188234 | &nbsp;&nbsp;202277 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;92 | &nbsp;&nbsp;CUMO #92 | &nbsp;&nbsp;188235 | &nbsp;&nbsp;202278 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;93 | &nbsp;&nbsp;CUMO #93 | &nbsp;&nbsp;188236 | &nbsp;&nbsp;202279 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;94 | &nbsp;&nbsp;CUMO #94 | &nbsp;&nbsp;188237 | &nbsp;&nbsp;202281 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;95 | &nbsp;&nbsp;CUMO #95 | &nbsp;&nbsp;188238 | &nbsp;&nbsp;202282 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;96 | &nbsp;&nbsp;CUMO #98 | &nbsp;&nbsp;188239 | &nbsp;&nbsp;202366 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;97 | &nbsp;&nbsp;CUMO #99 | &nbsp;&nbsp;188240 | &nbsp;&nbsp;202367 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;98 | &nbsp;&nbsp;CUMO #100 | &nbsp;&nbsp;188241 | &nbsp;&nbsp;202368 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;99 | &nbsp;&nbsp;CUMO #101 | &nbsp;&nbsp;188242 | &nbsp;&nbsp;202369 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;100 | &nbsp;&nbsp;CUMO #107 FRACTION | &nbsp;&nbsp;188244 | &nbsp;&nbsp;202371 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;101 | &nbsp;&nbsp;CUMO #109 | &nbsp;&nbsp;188246 | &nbsp;&nbsp;202373 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;102 | &nbsp;&nbsp;CUMO #121 | &nbsp;&nbsp;188258 | &nbsp;&nbsp;202283 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;103 | &nbsp;&nbsp;CUMO #122 | &nbsp;&nbsp;188259 | &nbsp;&nbsp;202284 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;CUMO #123 | &nbsp;&nbsp;188260 | &nbsp;&nbsp;202285 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;105 | &nbsp;&nbsp;CUMO #124 | &nbsp;&nbsp;188283 | &nbsp;&nbsp;202286 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;106 | &nbsp;&nbsp;CUMO #125 | &nbsp;&nbsp;188261 | &nbsp;&nbsp;202287 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;107 | &nbsp;&nbsp;CUMO #126 | &nbsp;&nbsp;188262 | &nbsp;&nbsp;202288 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;108 | &nbsp;&nbsp;CUMO #127 | &nbsp;&nbsp;188263 | &nbsp;&nbsp;202289 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;109 | &nbsp;&nbsp;CUMO #128 | &nbsp;&nbsp;188264 | &nbsp;&nbsp;202290 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;110 | &nbsp;&nbsp;CUMO #132 | &nbsp;&nbsp;188268 | &nbsp;&nbsp;202294 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;111 | &nbsp;&nbsp;CUMO #133 | &nbsp;&nbsp;188269 | &nbsp;&nbsp;202295 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;112 | &nbsp;&nbsp;CUMO #134 | &nbsp;&nbsp;188270 | &nbsp;&nbsp;202296 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;113 | &nbsp;&nbsp;CUMO #135 | &nbsp;&nbsp;188271 | &nbsp;&nbsp;202297 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;114 | &nbsp;&nbsp;CUMO #136 | &nbsp;&nbsp;188272 | &nbsp;&nbsp;202298 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;115 | &nbsp;&nbsp;CUMO #137 | &nbsp;&nbsp;188273 | &nbsp;&nbsp;202299 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;116 | &nbsp;&nbsp;CUMO #138 | &nbsp;&nbsp;188274 | &nbsp;&nbsp;202300 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;117 | &nbsp;&nbsp;CUMO #139 | &nbsp;&nbsp;188275 | &nbsp;&nbsp;202301 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;118 | &nbsp;&nbsp;CUMO #140 | &nbsp;&nbsp;188276 | &nbsp;&nbsp;202302 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;119 | &nbsp;&nbsp;CUMO #141 | &nbsp;&nbsp;188277 | &nbsp;&nbsp;202303 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;120 | &nbsp;&nbsp;CUMO #142 | &nbsp;&nbsp;188278 | &nbsp;&nbsp;202304 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;121 | &nbsp;&nbsp;CUMO #143 | &nbsp;&nbsp;188279 | &nbsp;&nbsp;202305 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;122 | &nbsp;&nbsp;CUMO #144 | &nbsp;&nbsp;188280 | &nbsp;&nbsp;202306 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;123 | &nbsp;&nbsp;CUMO #145 | &nbsp;&nbsp;188281 | &nbsp;&nbsp;202307 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;124 | &nbsp;&nbsp;CUMO #146 | &nbsp;&nbsp;188282 | &nbsp;&nbsp;202308 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;125 | &nbsp;&nbsp;CUMO #147 | &nbsp;&nbsp;188284 | &nbsp;&nbsp;202309 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;126 | &nbsp;&nbsp;CUMO #148 | &nbsp;&nbsp;188285 | &nbsp;&nbsp;202310 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;127 | &nbsp;&nbsp;CUMO #149 FRACT. | &nbsp;&nbsp;188286 | &nbsp;&nbsp;202311 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;128 | &nbsp;&nbsp;CUMO #150 | &nbsp;&nbsp;188257 | &nbsp;&nbsp;202312 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;129 | &nbsp;&nbsp;CUMO #151 FRACT. | &nbsp;&nbsp;188287 | &nbsp;&nbsp;202313 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;130 | &nbsp;&nbsp;CUMO #152 | &nbsp;&nbsp;188288 | &nbsp;&nbsp;202314 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;131 | &nbsp;&nbsp;CUMO #153 | &nbsp;&nbsp;188289 | &nbsp;&nbsp;202315 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;132 | &nbsp;&nbsp;CUMO #154 | &nbsp;&nbsp;188290 | &nbsp;&nbsp;202316 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;133 | &nbsp;&nbsp;CUMO #155 | &nbsp;&nbsp;188291 | &nbsp;&nbsp;202317 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;134 | &nbsp;&nbsp;CUMO #156 | &nbsp;&nbsp;188292 | &nbsp;&nbsp;202318 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;135 | &nbsp;&nbsp;CUMO #157 | &nbsp;&nbsp;188293 | &nbsp;&nbsp;202319 | &nbsp;&nbsp;May-05 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 179</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Unpatented Cumo Claim List 2018 - Page 4** | &nbsp;&nbsp; **Unpatented Cumo Claim List 2018 - Page 4** | &nbsp;&nbsp; **Unpatented Cumo Claim List 2018 - Page 4** | &nbsp;&nbsp; **Unpatented Cumo Claim List 2018 - Page 4** | &nbsp;&nbsp; **Unpatented Cumo Claim List 2018 - Page 4** |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Claim Name/Number | &nbsp;&nbsp;BLM <br> Serial No. | &nbsp;&nbsp;County<br> Instrument<br> Number | &nbsp;&nbsp;Loc Dt |
| &nbsp;&nbsp;136 | &nbsp;&nbsp;CUMO #158 | &nbsp;&nbsp;188294 | &nbsp;&nbsp;202320 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;137 | &nbsp;&nbsp;CUMO #159 | &nbsp;&nbsp;188295 | &nbsp;&nbsp;202323 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;138 | &nbsp;&nbsp;CUMO #160 | &nbsp;&nbsp;188486 | &nbsp;&nbsp;202321 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;139 | &nbsp;&nbsp;CUMO #161 | &nbsp;&nbsp;188491 | &nbsp;&nbsp;202322 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;140 | &nbsp;&nbsp;CUMO #176 FRACT. | &nbsp;&nbsp;188306 | &nbsp;&nbsp;202324 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;141 | &nbsp;&nbsp;CUMO #177 FRACT. | &nbsp;&nbsp;188307 | &nbsp;&nbsp;202325 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;142 | &nbsp;&nbsp;CUMO #178 | &nbsp;&nbsp;188308 | &nbsp;&nbsp;202326 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;143 | &nbsp;&nbsp;CUMO #179 | &nbsp;&nbsp;188309 | &nbsp;&nbsp;202327 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;144 | &nbsp;&nbsp;CUMO #180 | &nbsp;&nbsp;188310 | &nbsp;&nbsp;202328 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;145 | &nbsp;&nbsp;CUMO #181 | &nbsp;&nbsp;188311 | &nbsp;&nbsp;202329 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;146 | &nbsp;&nbsp;CUMO #182 FRACT. | &nbsp;&nbsp;188312 | &nbsp;&nbsp;202330 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;147 | &nbsp;&nbsp;CUMO #183 FRACT. | &nbsp;&nbsp;188313 | &nbsp;&nbsp;202331 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;148 | &nbsp;&nbsp;CUMO #184 | &nbsp;&nbsp;188314 | &nbsp;&nbsp;202332 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;149 | &nbsp;&nbsp;CUMO #185 | &nbsp;&nbsp;188315 | &nbsp;&nbsp;202333 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;150 | &nbsp;&nbsp;CUMO #186 | &nbsp;&nbsp;188316 | &nbsp;&nbsp;202334 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;151 | &nbsp;&nbsp;CUMO #187 | &nbsp;&nbsp;188317 | &nbsp;&nbsp;202335 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;152 | &nbsp;&nbsp;CUMO #188 FRACT. | &nbsp;&nbsp;188318 | &nbsp;&nbsp;202336 | &nbsp;&nbsp;May-05 |
| &nbsp;&nbsp;153 | &nbsp;&nbsp;New Cumo 190 Fraction | &nbsp;&nbsp;203192 | &nbsp;&nbsp;230231 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;154 | &nbsp;&nbsp;New Cumo 191 Fraction | &nbsp;&nbsp;203193 | &nbsp;&nbsp;230232 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;155 | &nbsp;&nbsp;New Cumo 192 Fraction | &nbsp;&nbsp;203194 | &nbsp;&nbsp;230233 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;156 | &nbsp;&nbsp;New Cumo 193 Fraction | &nbsp;&nbsp;203195 | &nbsp;&nbsp;230234 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;157 | &nbsp;&nbsp;Cumo 194 | &nbsp;&nbsp;203196 | &nbsp;&nbsp;230229 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;158 | &nbsp;&nbsp;Cumo 195 Fraction | &nbsp;&nbsp;203197 | &nbsp;&nbsp;230230 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;159 | &nbsp;&nbsp;Cumo 196 Fraction | &nbsp;&nbsp;203198 | &nbsp;&nbsp;230228 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;160 | &nbsp;&nbsp;Cumo 197 Fraction | &nbsp;&nbsp;203199 | &nbsp;&nbsp;230235 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;161 | &nbsp;&nbsp;Cumo 198 Fraction | &nbsp;&nbsp;203200 | &nbsp;&nbsp;230236 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;162 | &nbsp;&nbsp;Cumo 199 Fraction | &nbsp;&nbsp;203201 | &nbsp;&nbsp;230237 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;163 | &nbsp;&nbsp;Cumo 200 Fraction | &nbsp;&nbsp;203202 | &nbsp;&nbsp;230238 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;164 | &nbsp;&nbsp;Cumo 201 Fraction | &nbsp;&nbsp;203203 | &nbsp;&nbsp;230239 | &nbsp;&nbsp;Oct-10 |
| &nbsp;&nbsp;165 | &nbsp;&nbsp;Sharon #1 | &nbsp;&nbsp;177221 | &nbsp;&nbsp;159054 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;166 | &nbsp;&nbsp;Sharon #2 | &nbsp;&nbsp;177222 | &nbsp;&nbsp;159055 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;167 | &nbsp;&nbsp;Sharon #3 | &nbsp;&nbsp;177223 | &nbsp;&nbsp;159056 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;168 | &nbsp;&nbsp;Sharon#4 | &nbsp;&nbsp;177224 | &nbsp;&nbsp;159057 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;169 | &nbsp;&nbsp;Sharon#5 | &nbsp;&nbsp;177225 | &nbsp;&nbsp;159058 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;170 | &nbsp;&nbsp;Sharon#6 | &nbsp;&nbsp;177226 | &nbsp;&nbsp;159059 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;171 | &nbsp;&nbsp;Sharon#7 | &nbsp;&nbsp;177227 | &nbsp;&nbsp;159060 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;172 | &nbsp;&nbsp;Sharon#8 | &nbsp;&nbsp;177228 | &nbsp;&nbsp;159061 | &nbsp;&nbsp;Oct-94 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 180</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Unpatented CuMo Claim List 2018 - Page 5** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018 - Page 5** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018 - Page 5** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018 - Page 5** | &nbsp;&nbsp;**Unpatented CuMo Claim List 2018 - Page 5** |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Claim Name/Number | &nbsp;&nbsp;BLM <br> Serial No. | &nbsp;&nbsp;County<br> Instrument<br> Number | &nbsp;&nbsp;Loc Dt |
| &nbsp;&nbsp;173 | &nbsp;&nbsp;Sharon#8 | &nbsp;&nbsp;177228 | &nbsp;&nbsp;159061 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;174 | &nbsp;&nbsp;Sharon#9 | &nbsp;&nbsp;177229 | &nbsp;&nbsp;159062 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;175 | &nbsp;&nbsp;Sharon#10 | &nbsp;&nbsp;177230 | &nbsp;&nbsp;159063 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;176 | &nbsp;&nbsp;BlackJack#1 | &nbsp;&nbsp;177236 | &nbsp;&nbsp;159064 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;177 | &nbsp;&nbsp;BlackJack#2 | &nbsp;&nbsp;177237 | &nbsp;&nbsp;159065 | &nbsp;&nbsp;Oct-94 |
| &nbsp;&nbsp;178 | &nbsp;&nbsp;JRA No. 16 | &nbsp;&nbsp;106515 | &nbsp;&nbsp;76851 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;179 | &nbsp;&nbsp;JRA No. 18 | &nbsp;&nbsp;106517 | &nbsp;&nbsp;76853 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;180 | &nbsp;&nbsp;JRA No. 20 | &nbsp;&nbsp;106519 | &nbsp;&nbsp;76855 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;181 | &nbsp;&nbsp;JRA No. 20 | &nbsp;&nbsp;106520 | &nbsp;&nbsp;76856 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;182 | &nbsp;&nbsp;JRA No. 29 | &nbsp;&nbsp;106528 | &nbsp;&nbsp;76864 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;183 | &nbsp;&nbsp;JRA No. 30 | &nbsp;&nbsp;106529 | &nbsp;&nbsp;76865 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;184 | &nbsp;&nbsp;JRA No. 31 | &nbsp;&nbsp;106530 | &nbsp;&nbsp;76866 | &nbsp;&nbsp;Sep-82 |
| &nbsp;&nbsp;185 | &nbsp;&nbsp;JRA No. 45 | &nbsp;&nbsp;106544 | &nbsp;&nbsp;76880 | &nbsp;&nbsp;Sep-82 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 181</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Patented Cumo Claim List 2018 - Page 1** | &nbsp;&nbsp;**Patented Cumo Claim List 2018 - Page 1** | &nbsp;&nbsp;**Patented Cumo Claim List 2018 - Page 1** | &nbsp;&nbsp;**Patented Cumo Claim List 2018 - Page 1** | &nbsp;&nbsp;**Patented Cumo Claim List 2018 - Page 1** |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Claim Name/Number | &nbsp;&nbsp;Patent Number | &nbsp;&nbsp;Year<br> Granted | &nbsp;&nbsp;Survey<br> Number |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Blackbird | &nbsp;&nbsp;11830026 | &nbsp;&nbsp;1902+1983 | &nbsp;&nbsp;3636 |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Red Flag | &nbsp;&nbsp;11830026 | &nbsp;&nbsp;1902+1983 | &nbsp;&nbsp;3636 |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Enterprise | &nbsp;&nbsp;39183 | &nbsp;&nbsp;1902 | &nbsp;&nbsp;1706 |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Enterprise Fraction | &nbsp;&nbsp;39183 | &nbsp;&nbsp;1902 | &nbsp;&nbsp;1706 |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Commonwealth | &nbsp;&nbsp;39183 | &nbsp;&nbsp;1902 | &nbsp;&nbsp;1706 |
| &nbsp;&nbsp;6 | &nbsp;&nbsp;Baby Mine | &nbsp;&nbsp;39183 | &nbsp;&nbsp;1902 | &nbsp;&nbsp;1706 |
| &nbsp;&nbsp;7 | &nbsp;&nbsp;Duane #6 | &nbsp;&nbsp;39183 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;8 | &nbsp;&nbsp;German American | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;9 | &nbsp;&nbsp;Homestake #6 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;10 | &nbsp;&nbsp;Coon Dog #1 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;11 | &nbsp;&nbsp;Coon Dog #3 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;12 | &nbsp;&nbsp;Coon Dog #4 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;13 | &nbsp;&nbsp;Coon Dog #5 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;14 | &nbsp;&nbsp;Coon Dog #10 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;15 | &nbsp;&nbsp;Grey Eagle #2 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;16 | &nbsp;&nbsp;Grey Eagle #3 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;17 | &nbsp;&nbsp;Missing Link #1 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;18 | &nbsp;&nbsp;Missing Link #4 | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;19 | &nbsp;&nbsp;Ida | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;20 | &nbsp;&nbsp;Daily | &nbsp;&nbsp;1155808 | &nbsp;&nbsp;1945 | &nbsp;&nbsp;3455 |
| &nbsp;&nbsp;21 | &nbsp;&nbsp;Jumbo | &nbsp;&nbsp;645180 | &nbsp;&nbsp;1918 | &nbsp;&nbsp;2830 |
| &nbsp;&nbsp;22 | &nbsp;&nbsp;Jumbo #2 | &nbsp;&nbsp;645180 | &nbsp;&nbsp;1918 | &nbsp;&nbsp;2830 |
| &nbsp;&nbsp;23 | &nbsp;&nbsp;Snowstorm | &nbsp;&nbsp;645180 | &nbsp;&nbsp;1918 | &nbsp;&nbsp;2830 |
| &nbsp;&nbsp;24 | &nbsp;&nbsp;Sunset #1 | &nbsp;&nbsp;119757 | &nbsp;&nbsp;1909 | &nbsp;&nbsp;2269 |
| &nbsp;&nbsp;25 | &nbsp;&nbsp;Last Dollar | &nbsp;&nbsp;119757 | &nbsp;&nbsp;1909 | &nbsp;&nbsp;2269 |
| &nbsp;&nbsp;26 | &nbsp;&nbsp;Sunset #2 | &nbsp;&nbsp;119757 | &nbsp;&nbsp;1909 | &nbsp;&nbsp;2269 |
| &nbsp;&nbsp;27 | &nbsp;&nbsp;Gold Dollar #1 | &nbsp;&nbsp;119757 | &nbsp;&nbsp;1909 | &nbsp;&nbsp;2269 |
| &nbsp;&nbsp;28 | &nbsp;&nbsp;Gold Dollar #2 | &nbsp;&nbsp;119757 | &nbsp;&nbsp;1909 | &nbsp;&nbsp;2269 |
| &nbsp;&nbsp;29 | &nbsp;&nbsp;Gold Dollar #3 | &nbsp;&nbsp;119757 | &nbsp;&nbsp;1909 | &nbsp;&nbsp;2269 |
| &nbsp;&nbsp;30 | &nbsp;&nbsp;Pheasant Lode | &nbsp;&nbsp;564946 | &nbsp;&nbsp;1917 | &nbsp;&nbsp;2679 |
| &nbsp;&nbsp;31 | &nbsp;&nbsp;Golden Age Placer | &nbsp;&nbsp;535188 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2680 |
| &nbsp;&nbsp;32 | &nbsp;&nbsp;Wills Placer | &nbsp;&nbsp;951698 | &nbsp;&nbsp;1925 | &nbsp;&nbsp;3052 |
| &nbsp;&nbsp;33 | &nbsp;&nbsp;Gerdo | &nbsp;&nbsp;645179 | &nbsp;&nbsp;1918 | &nbsp;&nbsp;2831 |
| &nbsp;&nbsp;34 | &nbsp;&nbsp;Harper #1 | &nbsp;&nbsp;1144749 | &nbsp;&nbsp;1944 | &nbsp;&nbsp;3456 |
| &nbsp;&nbsp;35 | &nbsp;&nbsp;Harper #2 | &nbsp;&nbsp;1144749 | &nbsp;&nbsp;1944 | &nbsp;&nbsp;3456 |
| &nbsp;&nbsp;36 | &nbsp;&nbsp;Florence | &nbsp;&nbsp;546017 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2681 |
| &nbsp;&nbsp;37 | &nbsp;&nbsp;Charlotte | &nbsp;&nbsp;546017 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2681 |
| &nbsp;&nbsp;38 | &nbsp;&nbsp;Francis | &nbsp;&nbsp;546017 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2681 |
| &nbsp;&nbsp;39 | &nbsp;&nbsp;Theron Fraction | &nbsp;&nbsp;546017 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2681 |
| &nbsp;&nbsp;40 | &nbsp;&nbsp;Theron | &nbsp;&nbsp;546017 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2681 |
| &nbsp;&nbsp;41 | &nbsp;&nbsp;Idaho | &nbsp;&nbsp;546017 | &nbsp;&nbsp;1916 | &nbsp;&nbsp;2681 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 182</u>

**Appendix 2: Re-Splits of Rejects**

**Results for Mo - Chemex - original vs. ICP check**![](ex96-1_051.jpg)

**Results for Mo - Chemex - original vs. XRF check** 

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 183</u>

![](ex96-1_052.jpg)

**Results for Cu - Chemex - original vs. ICP check**![](ex96-1_053.jpg)

**Results for Cu - Chemex - original vs. XRF check** 

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 184</u>

![](ex96-1_054.jpg)

**Results for Ag - Chemex original vs. ICP check**![](ex96-1_055.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 185</u>

**Appendix 3: Drill Holes used in Resource Estimate**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Hole** | &nbsp;&nbsp;**Northing** | &nbsp;&nbsp;**Easting** | &nbsp;&nbsp;**Elevation** | &nbsp;&nbsp;**Dip** | &nbsp;&nbsp;**Azimuth** | &nbsp;&nbsp;**Length (feet)** |
| &nbsp;&nbsp;71-01 | &nbsp;&nbsp;120989.9 | &nbsp;&nbsp;219904.5 | &nbsp;&nbsp;6026.5 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1884 |
| &nbsp;&nbsp;71-02 | &nbsp;&nbsp;120575.0 | &nbsp;&nbsp;219820.0 | &nbsp;&nbsp;6060.0 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;0 | &nbsp;&nbsp;405 |
| &nbsp;&nbsp;71-03 | &nbsp;&nbsp;120250.0 | &nbsp;&nbsp;219905.0 | &nbsp;&nbsp;6165.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;70 |
| &nbsp;&nbsp;C71-04 | &nbsp;&nbsp;120785.0 | &nbsp;&nbsp;219940.0 | &nbsp;&nbsp;6045.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;113 |
| &nbsp;&nbsp;C72-05 | &nbsp;&nbsp;120524.8 | &nbsp;&nbsp;220569.9 | &nbsp;&nbsp;6201.7 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1416 |
| &nbsp;&nbsp;C72-06 | &nbsp;&nbsp;121749.0 | &nbsp;&nbsp;219919.0 | &nbsp;&nbsp;5902.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;663 |
| &nbsp;&nbsp;C72-07 | &nbsp;&nbsp;121491.0 | &nbsp;&nbsp;219823.0 | &nbsp;&nbsp;5962.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;275 |
| &nbsp;&nbsp;C72-08 | &nbsp;&nbsp;118890.0 | &nbsp;&nbsp;220025.0 | &nbsp;&nbsp;6467.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;379 |
| &nbsp;&nbsp;C74-09 | &nbsp;&nbsp;121438.0 | &nbsp;&nbsp;220687.0 | &nbsp;&nbsp;5890.0 | &nbsp;&nbsp;-60 | &nbsp;&nbsp;168 | &nbsp;&nbsp;804.6 |
| &nbsp;&nbsp;C75-10 | &nbsp;&nbsp;119755.7 | &nbsp;&nbsp;221220.4 | &nbsp;&nbsp;6341.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2381 |
| &nbsp;&nbsp;C76-11 | &nbsp;&nbsp;120455.8 | &nbsp;&nbsp;221250.2 | &nbsp;&nbsp;5996.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;3003 |
| &nbsp;&nbsp;C76-12 | &nbsp;&nbsp;120955.0 | &nbsp;&nbsp;221432.0 | &nbsp;&nbsp;5742.0 | &nbsp;&nbsp;-43 | &nbsp;&nbsp;190 | &nbsp;&nbsp;1340 |
| &nbsp;&nbsp;C77-13 | &nbsp;&nbsp;119471.9 | &nbsp;&nbsp;219902.9 | &nbsp;&nbsp;6426.3 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1804 |
| &nbsp;&nbsp;C77-14 | &nbsp;&nbsp;119085.4 | &nbsp;&nbsp;221271.3 | &nbsp;&nbsp;6613.3 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2123.8 |
| &nbsp;&nbsp;C77-15 | &nbsp;&nbsp;119772.1 | &nbsp;&nbsp;221950.9 | &nbsp;&nbsp;6339.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1933.2 |
| &nbsp;&nbsp;C78-16 | &nbsp;&nbsp;119209.7 | &nbsp;&nbsp;219147.5 | &nbsp;&nbsp;6247.9 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2131.7 |
| &nbsp;&nbsp;C78-17 | &nbsp;&nbsp;118711.9 | &nbsp;&nbsp;219886.6 | &nbsp;&nbsp;6544.3 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2281.5 |
| &nbsp;&nbsp;C78-18 | &nbsp;&nbsp;119823.5 | &nbsp;&nbsp;222649.1 | &nbsp;&nbsp;6168.3 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2361 |
| &nbsp;&nbsp;C79-19 | &nbsp;&nbsp;120178.0 | &nbsp;&nbsp;219887.0 | &nbsp;&nbsp;6170.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2280 |
| &nbsp;&nbsp;C79-20 | &nbsp;&nbsp;120878.0 | &nbsp;&nbsp;220787.0 | &nbsp;&nbsp;6105.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2543 |
| &nbsp;&nbsp;C81-24 | &nbsp;&nbsp;120671.1 | &nbsp;&nbsp;222009.5 | &nbsp;&nbsp;6069.8 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1000 |
| &nbsp;&nbsp;C81-25 | &nbsp;&nbsp;119890.0 | &nbsp;&nbsp;219289.7 | &nbsp;&nbsp;6019.0 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1011 |
| &nbsp;&nbsp;C81-26 | &nbsp;&nbsp;121338.1 | &nbsp;&nbsp;221432.9 | &nbsp;&nbsp;5767.5 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1193 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 186</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Hole** | &nbsp;&nbsp;**Northing** | &nbsp;&nbsp;**Easting** | &nbsp;&nbsp;**Elevation** | &nbsp;&nbsp;**Dip** | &nbsp;&nbsp;**Azimuth** | &nbsp;&nbsp;**Length (feet)** |
| &nbsp;&nbsp;27-06 | &nbsp;&nbsp;120031.9 | &nbsp;&nbsp;220207.9 | &nbsp;&nbsp;6351.4 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1849 |
| &nbsp;&nbsp;28-06 | &nbsp;&nbsp;119539.8 | &nbsp;&nbsp;220816.8 | &nbsp;&nbsp;6321.1 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1711 |
| &nbsp;&nbsp;29-07 | &nbsp;&nbsp;119778.9 | &nbsp;&nbsp;221246.7 | &nbsp;&nbsp;6343.7 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;140 | &nbsp;&nbsp;2281.7 |
| &nbsp;&nbsp;30-07 | &nbsp;&nbsp;119732.2 | &nbsp;&nbsp;219616.8 | &nbsp;&nbsp;6213.1 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2416.5 |
| &nbsp;&nbsp;31-07 | &nbsp;&nbsp;119792.5 | &nbsp;&nbsp;221243.3 | &nbsp;&nbsp;6342.3 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;45 | &nbsp;&nbsp;2104 |
| &nbsp;&nbsp;32-07 | &nbsp;&nbsp;119558.4 | &nbsp;&nbsp;220822.6 | &nbsp;&nbsp;6323.6 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;190 | &nbsp;&nbsp;2044 |
| &nbsp;&nbsp;33-07 | &nbsp;&nbsp;118476.7 | &nbsp;&nbsp;221227.0 | &nbsp;&nbsp;6796.8 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2095 |
| &nbsp;&nbsp;34-07 | &nbsp;&nbsp;118658.3 | &nbsp;&nbsp;220487.4 | &nbsp;&nbsp;6534.2 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;95 | &nbsp;&nbsp;1769 |
| &nbsp;&nbsp;35-08 | &nbsp;&nbsp;118655.2 | &nbsp;&nbsp;220480.4 | &nbsp;&nbsp;6533.2 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2817 |
| &nbsp;&nbsp;36-08 | &nbsp;&nbsp;119335.3 | &nbsp;&nbsp;219448.7 | &nbsp;&nbsp;6274.6 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2488 |
| &nbsp;&nbsp;37-08 | &nbsp;&nbsp;119780.4 | &nbsp;&nbsp;221246.8 | &nbsp;&nbsp;6341.5 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;335 | &nbsp;&nbsp;2195 |
| &nbsp;&nbsp;38-08 | &nbsp;&nbsp;118655.2 | &nbsp;&nbsp;220480.4 | &nbsp;&nbsp;6533.2 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;180 | &nbsp;&nbsp;2441 |
| &nbsp;&nbsp;39-08 | &nbsp;&nbsp;118917.9 | &nbsp;&nbsp;220813.2 | &nbsp;&nbsp;6575.1 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2688 |
| &nbsp;&nbsp;40-08 | &nbsp;&nbsp;119530.1 | &nbsp;&nbsp;220791.4 | &nbsp;&nbsp;6321.4 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;225 | &nbsp;&nbsp;2252 |
| &nbsp;&nbsp;41-08 | &nbsp;&nbsp;119630.2 | &nbsp;&nbsp;218962.5 | &nbsp;&nbsp;6219.9 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;3018 |
| &nbsp;&nbsp;42-08 | &nbsp;&nbsp;118748.9 | &nbsp;&nbsp;219911.0 | &nbsp;&nbsp;6549.2 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;270 | &nbsp;&nbsp;2707 |
| &nbsp;&nbsp;43-08 | &nbsp;&nbsp;120612.8 | &nbsp;&nbsp;220052.8 | &nbsp;&nbsp;6173.8 | &nbsp;&nbsp;-80 | &nbsp;&nbsp;40 | &nbsp;&nbsp;1313 |
| &nbsp;&nbsp;44-08 | &nbsp;&nbsp;118085.1 | &nbsp;&nbsp;221515.9 | &nbsp;&nbsp;6739.4 | &nbsp;&nbsp;-65 | &nbsp;&nbsp;75 | &nbsp;&nbsp;3047 |
| &nbsp;&nbsp;45-08 | &nbsp;&nbsp;119802.3 | &nbsp;&nbsp;218821.4 | &nbsp;&nbsp;6183.7 | &nbsp;&nbsp;-80 | &nbsp;&nbsp;330 | &nbsp;&nbsp;1796 |
| &nbsp;&nbsp;46-09 | &nbsp;&nbsp;118913.9 | &nbsp;&nbsp;220811.3 | &nbsp;&nbsp;6575.1 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;110 | &nbsp;&nbsp;959 |
| &nbsp;&nbsp;47-09 | &nbsp;&nbsp;120686.7 | &nbsp;&nbsp;219421.7 | &nbsp;&nbsp;5832.6 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2530 |
| &nbsp;&nbsp;48-09 | &nbsp;&nbsp;120690.0 | &nbsp;&nbsp;219425.0 | &nbsp;&nbsp;5825.5 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;305 | &nbsp;&nbsp;2576 |
| &nbsp;&nbsp;49-09 | &nbsp;&nbsp;119094.6 | &nbsp;&nbsp;221745.7 | &nbsp;&nbsp;6645.3 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2847 |
| &nbsp;&nbsp;50-09 | &nbsp;&nbsp;121548.0 | &nbsp;&nbsp;219843.5 | &nbsp;&nbsp;5832.6 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;270 | &nbsp;&nbsp;1826 |
| &nbsp;&nbsp;51-09 | &nbsp;&nbsp;121534.9 | &nbsp;&nbsp;219859.8 | &nbsp;&nbsp;5828.5 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1593.5 |
| &nbsp;&nbsp;52-09 | &nbsp;&nbsp;118499.5 | &nbsp;&nbsp;221251.3 | &nbsp;&nbsp;6791.2 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;20 | &nbsp;&nbsp;2772 |
| &nbsp;&nbsp;53-09 | &nbsp;&nbsp;119803.9 | &nbsp;&nbsp;218830.5 | &nbsp;&nbsp;6183.4 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;15 | &nbsp;&nbsp;2461 |
| &nbsp;&nbsp;54-09 | &nbsp;&nbsp;119534.9 | &nbsp;&nbsp;219005.1 | &nbsp;&nbsp;6195.9 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;15 | &nbsp;&nbsp;1096 |
| &nbsp;&nbsp;55-10 | &nbsp;&nbsp;117559.6 | &nbsp;&nbsp;218422.5 | &nbsp;&nbsp;6724.2 | &nbsp;&nbsp;-65 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2479 |
| &nbsp;&nbsp;56-10 | &nbsp;&nbsp;117559.9 | &nbsp;&nbsp;218421.9 | &nbsp;&nbsp;6724.2 | &nbsp;&nbsp;-65 | &nbsp;&nbsp;305 | &nbsp;&nbsp;1294 |
| &nbsp;&nbsp;57-10 | &nbsp;&nbsp;117559.3 | &nbsp;&nbsp;218422.2 | &nbsp;&nbsp;6724.2 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;534 |
| &nbsp;&nbsp;58-11 | &nbsp;&nbsp;119142.8 | &nbsp;&nbsp;219970.3 | &nbsp;&nbsp;6451.3 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1885 |
| &nbsp;&nbsp;59-11 | &nbsp;&nbsp;119095.6 | &nbsp;&nbsp;221745.9 | &nbsp;&nbsp;6645.3 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;0 | &nbsp;&nbsp;1910 |
| &nbsp;&nbsp;60-12 | &nbsp;&nbsp;117559.9 | &nbsp;&nbsp;218421.9 | &nbsp;&nbsp;6724.2 | &nbsp;&nbsp;-50 | &nbsp;&nbsp;180 | &nbsp;&nbsp;1455 |
| &nbsp;&nbsp;61-12 | &nbsp;&nbsp;118748.9 | &nbsp;&nbsp;219911.0 | &nbsp;&nbsp;6549.2 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;335 | &nbsp;&nbsp;1318 |
| &nbsp;&nbsp;62-12 | &nbsp;&nbsp;116866.1 | &nbsp;&nbsp;218040.5 | &nbsp;&nbsp;6628.7 | &nbsp;&nbsp;-50 | &nbsp;&nbsp;135 | &nbsp;&nbsp;1484 |
| &nbsp;&nbsp;63-12 | &nbsp;&nbsp;116866.8 | &nbsp;&nbsp;218041.5 | &nbsp;&nbsp;6628.7 | &nbsp;&nbsp;-60 | &nbsp;&nbsp;330 | &nbsp;&nbsp;807 |
| &nbsp;&nbsp;64-12 | &nbsp;&nbsp;118913.9 | &nbsp;&nbsp;220811.3 | &nbsp;&nbsp;6575.1 | &nbsp;&nbsp;-75 | &nbsp;&nbsp;25 | &nbsp;&nbsp;2139 |
| &nbsp;&nbsp;65-12 | &nbsp;&nbsp;118148.8 | &nbsp;&nbsp;221117.5 | &nbsp;&nbsp;6785.7 | &nbsp;&nbsp;-80 | &nbsp;&nbsp;315 | &nbsp;&nbsp;1908 |
| &nbsp;&nbsp;66-12 | &nbsp;&nbsp;118674.0 | &nbsp;&nbsp;221687.8 | &nbsp;&nbsp;6689.7 | &nbsp;&nbsp;-90 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2241 |
| &nbsp;&nbsp;67-12 | &nbsp;&nbsp;118913.9 | &nbsp;&nbsp;220811.3 | &nbsp;&nbsp;6575.1 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;340 | &nbsp;&nbsp;1978 |
| &nbsp;&nbsp;68-12 | &nbsp;&nbsp;119095.6 | &nbsp;&nbsp;221745.9 | &nbsp;&nbsp;6645.3 | &nbsp;&nbsp;-70 | &nbsp;&nbsp;310 | &nbsp;&nbsp;2133.5 |

---

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 187</u>

**Appendix 4: Semi-variograms**

A4.1 - MoS<sub>2</sub> in Cu-Mo and Mo Zones

A4.2 - MoS<sub>2</sub> in Cu-Ag Zone

A4.3 - Cu in Cu-Ag and Cu-Mo Zones

A4.4 - Cu in Mo Zone

A4.5 - Ag in Cu-Ag and Cu-Mo Zones

A4.6 - Ag in Mo Zone

A4.7 - W in Cu-Ag Zone

A4.8 - W in Cu-Mo and Mo Zones

\* Tungsten is included for reference only, as it was not used in resource estimation

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 188</u>

**A4.1 – MoS<sub>2</sub> in CuMo and Mo Zones**

![](ex96-1_056.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 189</u>

![](ex96-1_057.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 190</u>

![](ex96-1_058.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 191</u>

**A4.2 – MoS<sub>2</sub> in Cu-Ag Zone:**

![](ex96-1_059.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 192</u>

![](ex96-1_060.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 193</u>

![](ex96-1_061.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 194</u>

**A4.3 – Cu in Cu-Ag and Cu-Mo Zones:**

![](ex96-1_062.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 195</u>

![](ex96-1_063.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 196</u>

![](ex96-1_064.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 197</u>

**A4.4 – Cu in Mo Zone:**

![](ex96-1_065.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 198</u>

![](ex96-1_066.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 199</u>

![](ex96-1_067.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 200</u>

**A4.5 – Ag in Cu-Ag and Cu-Mo Zones:**

![](ex96-1_068.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 201</u>

![](ex96-1_069.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 202</u>

![](ex96-1_070.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 203</u>

**A4.6 – Ag in Mo Zone:**

![](ex96-1_071.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 204</u>

![](ex96-1_072.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 205</u>

![](ex96-1_073.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 206</u>

**A4.7 – W in Cu-Ag Zone:**

![](ex96-1_074.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 207</u>

![](ex96-1_075.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 208</u>

![](ex96-1_076.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 209</u>

**A4.8 – W in CuMo and Mo Zones:**

![](ex96-1_077.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 210</u>

![](ex96-1_078.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 211</u>

![](ex96-1_079.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 212</u>

**Appendix 5: Scatter Plots showing Results from Historic Data Verification**

A5.1 – Skyline original MoS<sub>2</sub> versus Skyline duplicate MoS<sub>2 </sub>from duplicate drill core

A5.2 – Skyline original MoS<sub>2</sub> versus Skyline duplicate MoS<sub>2 </sub>from rejects

A5.3 – Skyline original MoS<sub>2</sub> versus Skyline duplicate MoS<sub>2</sub> from pulps

A5.4 – Skyline original MoS<sub>2</sub> versus Amax check MoS<sub>2</sub> on pulps from drill core

A5.5 – Skyline original MoS<sub>2</sub> versus Amax check MoS<sub>2</sub> on RC cuttings

A5.6 – Skyline original MoS<sub>2</sub> versus Hazen check MoS<sub>2</sub> on pulps

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 213</u>

**A5.1 – Skyline Original MoS<sub>2</sub> versus Skyline Duplicate MoS<sub>2 </sub>from duplicate drill core**

**<sub> </sub>**

**<sub></sub>![](ex96-1_080.jpg)**

**<sub> </sub>**

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 214</u>

**A5.2 – Skyline Original MoS<sub>2</sub> versus Skyline Duplicate MoS<sub>2 </sub>from rejects**

![](ex96-1_081.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 215</u>

**A5.3 – Skyline Original MoS<sub>2</sub> versus Skyline Duplicate MoS<sub>2 </sub>from pulps**

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 216</u>

**A5.4 – Skyline Original MoS<sub>2</sub> versus Amax Check MoS<sub>2</sub> on pulps from drill core**

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 217</u>

**A5.5 – Skyline Original MoS<sub>2</sub> versus Amax Check MoS<sub>2</sub> on RC Cuttings**

![](ex96-1_084.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

Geologic <br> 2CM027.001 CuMoCo. <br>   <u>Page 218</u>

**A5.6 – Skyline Original MoS<sub>2</sub> versus Hazen Check MoS<sub>2</sub> on pulps**

![](ex96-1_085.jpg)

SMD Ex 96.1 Technical Report Summary – Geologic January 2023

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**Financial Statements of International CuMo Mining Corporation**

June 30, 2022

**Report of Independent Registered Public Accounting Firm**

To the shareholders and the board of directors of CuMo Mining Corporation

**Opinion on the Financial Statements**

We have audited the accompanying balance sheets of CuMo Mining Corporation as of June 30, 2022 and 2021, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

**Substantial Doubt about the Company's Ability to Continue as a Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has minimum income from operations and substantial liabilities. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/S/ BF Borgers CPA PC

**BF Borgers CPA PC (PCAOB ID 5041)**

We have served as the Company's auditor since 2022

Lakewood, CO

January 27, 2023

**International CuMo Mining Corporation**

**Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **June 30,**<br>**2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $127016 | $645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 127016 | 645 |
| Property and equipment, net | 875917 | 982850 |
| Other assets | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1102933 | $1083495 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $222934 | $355706 |
| &nbsp;&nbsp;&nbsp;Due to former parent company |  | 3303895 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 1431246 | 996046 |
| &nbsp;&nbsp;&nbsp;Convertible notes | 3349000 | 2270000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5003180 | 6925647 |
| &nbsp;&nbsp;&nbsp;Bond liabilities | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5103180 | 7025647 |
| Commitments and contingencies |  |  |
| Stockholders' Deficit: |  |  |
| Common stock, no par value, 136,000,000 and 105,000,000 shares issued and outstanding as of June 30, 2022 and June 30, 2021, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 19251722 | 16151723 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (23251969) | (22093875) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (4000247) | (5942152) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and deficit | $1102933 | $1083495 |

---

The accompanying notes are an integral part of the financial statements.

**International CuMo Mining Corporation<br> Statements of Operations**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **June 30,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;General and administrative expense | $637986 | $33241 |
| &nbsp;&nbsp;&nbsp;Legal and professional fees | 311053 | 3000 |
| &nbsp;&nbsp;&nbsp;Rent | 30000 |  |
| &nbsp;&nbsp;&nbsp;Impairment of property | 106932 |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative and expenses | 1453 | 15214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1087424 | 51455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (1087424) | (51455) |
| Other (expense) income |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (415215) | (155736) |
| &nbsp;&nbsp;&nbsp;Miscellaneous income | 344545 | (133) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense) | (70670) | (155869) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (1158094) | (207324) |
| Provision for income taxes (benefit) | - | - |
| Net loss | $(1158094) | $(207324) |
| Basic and diluted (loss) per common share | $(0.01) | $(0.00) |
| Weighted-average number of common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 136000000 | 105000000 |

---

The accompanying notes are an integral part of the financial statements.

**International CuMo Mining Corporation**

**Statements of Changes in Stockholders' Deficit**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Value** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Deficit** |
| Balance, June 30, 2020 | 85000000 | $- | $16151723 | $(21886551) | $(5734828) |
| Shares issued to purchase property | 20000000 |  |  |  |  |
| Net loss |  |  |  | (207324) | (207324) |
| Balance, June 30, 2021 | 105000000 | $- | $16151723 | $(22093875) | $(5942152) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Value** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Deficit** |
| Balance, June 30, 2021 | 105000000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $16151723 | $(22093875) | $(5942152) |
| Common stock issued in private placements | 2850000 |  | 285000 |  | 285000 |
| Common stock issued for services | 6230000 |  | 623000 |  | 623000 |
| Common stock issued to reduce debt to former parent company | 21920000 |  | 2192000 |  | 2192000 |
| Net loss |  |  |  | (1158094) | (1158094) |
| Balance, June 30, 2022 | 136000000 | $- | $19251723 | $(23251969) | $(4000247) |

---

The accompanying notes are an integral part of the dated financial statements.

**International CuMo Mining Corporation**

**Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **June 30,**<br>**2021** |
| Cash flows from operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(1158094) | $(207324) |
| &nbsp;&nbsp;&nbsp;Impairment of property | 106932 |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 623000 |  |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 302428 | 121314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (125734) | (86010) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets | - | (107117) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities |  | (107117) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Due to/due (from) parent company | (1111895) | 242714 |
| &nbsp;&nbsp;&nbsp;Loan proceeds | 1079000 |  |
| &nbsp;&nbsp;&nbsp;Loan repayments |  | (49530) |
| &nbsp;&nbsp;&nbsp;Proceeds from private placements | 285000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 252105 | 193184 |
| Net increase in cash and cash equivalents | 126371 | 57 |
| Cash and cash equivalents at beginning of period | 645 | 588 |
| Cash and cash equivalents at end of period | $127016 | $645 |
| Supplemental disclosure of non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Common shares issued to retire debt | $422175 | $- |

---

The accompanying notes are integral part of these financial statements

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

**1.** **Nature of operations** 

International CuMo Mining Corporation ("ICMC", "CuMo" or the "Company") is an exploration and development company with mineral right interests in the United States of America. ICMC was originally incorporated under the laws of Nevada in 2005, as Mosquito Mining Corp. In 2013, the Company was moved to Idaho and the name changed to Idaho CuMo Mining Corporation. In early January 2021 the name was changed to International CuMo Mining Corporation.

The Company is in the process of exploring its mineral right interests in the United States and at the date of these financial statements, has not yet determined whether any of its mineral properties contain economically recoverable mineral reserves. Accordingly, the carrying amount of mineral right interests represents cumulative expenditures incurred to date and does not necessarily reflect present or future values. The recovery of these costs is dependent upon the discovery of economically recoverable mineral reserves and the ability of ICMC to obtain the necessary financing to complete their exploration and development and to resolve any environmental, regulatory, or other constraints. Uncertainty also exists with respect to the recoverability of the carrying value of certain mineral right interests. The ability of the Company to realize on its investment in resource properties is contingent upon resolution of the uncertainties and confirmation of the Company's title to the mineral properties.

ICMC's common shares are not listed on any exchange.

The Company's year-end is June 30th.

**2.** **Basis of presentation.** 

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The financial statements are presented in US dollars and all values are rounded to the nearest dollar except where otherwise indicated.

**Principles of Consolidation**

The financial statements include the accounts of International CuMo Mining.

**Going Concern**

These financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that the Company will continue operations for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. Since inception, the Company has incurred cumulative losses of $23,251,969 and as of June 30, 2022, had a working capital deficiency of $4,876,164 which may cast significant doubt regarding ICMC's ability to continue as a going concern.

The Company does not generate material cash flows from operations and accordingly, ICMC will need to raise additional funds through future issuance of securities. Although ICMC has been successful in raising funds in the past, there can be no assurance ICMC will be able to raise sufficient funds in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business. The Company has not determined whether any of its properties contain mineral reserves that are economically recoverable. It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of operations. Should ICMC be unable to realize its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts on the statement of financial position.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

**3.** **Summary of significant accounting policies** 

<u>Significant accounting judgments and estimates</u>

The Company makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual experience may differ from these estimates and assumptions.

The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both.

Information about critical accounting estimates and judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the financial statements are discussed below:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Unproven
 mineral right interests

The application of the Company's accounting policy for unproven mineral right interests requires judgment in determining whether it is likely that future economic benefits will flow to the Company, which may be based on assumptions about future events or circumstances. Estimates and assumptions may change if new information becomes available. If, after expenditures are capitalized, information becomes available suggesting that the recovery of the expenditures is unlikely, the amount capitalized is impaired with a corresponding charge to profit or loss in the period in which the new information becomes available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Title
 to unproven mineral right interests

Although the Company has taken steps to verify title to its unproven mineral right interests, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Convertible
 debentures

The Company presents convertible debentures separately in its debt and equity components on the statement of financial position. The fair value of a compound instrument at issuance is assigned to its respective debt and equity components. The fair value of the debt component is established first with the equity component being determined by the residual amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Going
 concern

Critical judgement and estimates are applied for the determination that the Company will continue as a going concern for the next year.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

● Estimates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Share-based
 payments:

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date in which they are granted. Estimating fair values for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. The estimate also requires determining the most appropriate inputs to the valuation model, including the expected life of the share option, volatility and dividend yield, and making assumptions about them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Income
 taxes:

The calculation of income taxes requires judgment in applying tax laws and regulations, estimating the timing of the reversals of temporary differences, and estimating the reliability of deferred tax assets. These estimates impact current and deferred income tax assets and liabilities, and current and deferred income tax expense.

<u>Property, plant and equipment</u>

Property, plant and equipment are recorded at cost, net of accumulated depreciation, and are depreciated as following:

● Office equipment and furniture: 30% declining balance method.

Property consists of land holdings at CuMo, Idaho (Boise Property). As of June 30, 2022, the Company had no depreciable assets on its balance sheet. Depreciation expense for the periods and June 30, 2022, and June 30, 2021 was $-0- and $-0-, respectively.

<u>Unproven mineral right interests</u> 

The Company capitalizes into intangible assets all costs, net of any recoveries, of acquiring, exploring and evaluating an unproven mineral right interest, until the rights to which they relate are placed into production, at which time these deferred costs will be amortized over the estimated useful life of the rights upon commissioning the property, or written-off if the rights are disposed of, impaired or abandoned.

Management reviews the carrying amounts of mineral rights annually or when there are indicators of impairment and will recognize impairment based upon current exploration results and upon assessment of the probability of profitable exploitation of the rights. An indication of impairment includes but is not limited to expiration of the right to explore, substantive expenditure in the specific area is neither budgeted nor planned, and if the entity has decided to discontinue exploration activity in a specific area. Management's assessment of the mineral right's fair value is also based upon a review of other mineral right transactions that have occurred in the same geographic area as that of the rights under review.

Costs include the cash consideration and the fair value of shares issued on the acquisition of mineral rights. Rights acquired under option or joint venture agreements, whereby payments are made at the sole discretion of the Company, are not accrued and are only recorded in the accounts when the payments are made. Proceeds from property option payments received by the Company are netted against the deferred costs of the related mineral rights, with any excess being included in operations.

There may be material uncertainties associated with the Company's title and ownership of its unproven mineral right interests. Ordinarily the Company does not own the land upon which an interest is located, and title may be subject to unregistered prior agreements or transfers or other undetected defects. As of June 30, 2022, the balance of unproven mineral right interests was $-0-.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

<u>Impairment of non-financial assets</u>

At each date of the statement of financial position, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the assets belong.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of loss and comprehensive loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years.

<u>Reclamation provision</u>

An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the exploration, development or ongoing production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided and capitalized at the start of each project to the carrying amount of the asset, as soon as the obligation to incur such costs arises. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related asset, through amortization using either the unit-of-production or straight-line method. The related liability is adjusted for each period for the unwinding of the discount rate and for changes to the current market-based discount rate, amount or timing of the underlying cash flows needed to settle the obligation. Costs for restoration of subsequent site damage which is created on an ongoing basis during production are provided for at their net present values and charged against profits as extraction progresses.

<u>Fair Value Measurements</u>

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

*Level 1* - Quoted prices in active markets for identical assets or liabilities.

*Level 2* - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable.

*Level 3* - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. We use the market approach to measure fair value for its Level 1 financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The respective carrying value of certain balance sheet financial instruments approximates its fair value. These financial instruments include cash and cash equivalents, trade receivables, related party payables, accounts payable, accrued liabilities and short-term borrowings. Fair values were estimated to approximate carrying values for these financial instruments since they are short term in nature, and they are receivable or payable on demand.

The estimated fair value of assets and liabilities acquired in business combinations and reporting units and long-lived assets used in the related asset impairment tests utilize inputs classified as Level 3 in the fair value hierarchy.

As of June 30 2022, the Company's financial instruments measured at fair value on a recurring basis were investments, which were classified as "Level 1".

<u>Income Taxes</u>

The Company accounts for income taxes under FASB ASC 740, "Accounting for Income Taxes". Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Management provides a valuation allowance against deferred tax assets for amount which are considered "more likely than not" to be realized. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. FASB ASC 740-10-05, "Accounting for Uncertainty in Income Taxes" prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.

The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions on a quarterly basis to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position's sustainability under audit. On Dec. 18, 2019, FASB released Accounting Standards Update (ASU) 2019-12, which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The FASB has stated that the ASU is being issued as part of its Simplification Initiative, which is meant to reduce complexity in accounting standards by improving certain areas of GAAP without compromising information provided to users of financial statements. The Company adopted this guidance on January 1, 2021 which had no impact on the Company's financial statements.

<u>Income (loss) per share</u>

Basic earnings (loss) per share are computed by dividing the net earnings (loss) attributable to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and conversion of notes, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

<u>Related party transactions</u>

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence, related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount, which is determined on a cost recovery basis.

<u>Cash and cash equivalents</u>

Cash and cash equivalents in the statement of financial position comprise cash at banks and brokerage firms. As of June 30, 2022 and June 30, 2021 the Company had $127,016 and $645 in cash, respectively.

<u>Stock Purchase Warrants</u>

The Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, *Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock, Distinguishing Liabilities from Equity.* We determine the accounting classification of warrants we issue, as either liability or equity classified, by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock. Under ASC 480, warrants are considered liability classified if the warrants are mandatorily redeemable, obligate us to settle the warrants or the underlying shares by paying cash or other assets, and warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet the liability classification under ASC 480-10, we assess the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature.

If the warrants do not require liability classification under ASC 815-40, in order to conclude equity classification, we also assess whether the warrants are indexed to our common stock and whether the warrants are classified as equity under ASC 815-40 or other GAAP. After all such assessments, we conclude whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. We do not have any liability classified warrants as of any period presented.

**4.** **Other assets** 

As of June 30, 2022 the Company had other assets of $100,000 and $100,000 respectively.

**Reclamation bonds and provisions**

During fiscal year 2016 the CuMo project cash bond was refunded to the Company and replaced with a surety from a third party. In exchange for the third party agreeing to guarantee to fund the required Bureau of Land Management reclamation bond currently $278,000 the Company was required to pay a security deposit of $100,000 and make ongoing annual payments of $8,340.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

The security deposit is refundable when the Company completes the required reclamation clean-up costs.

Although the Company does not anticipate being required to perform significant reclamation activities, to be conservative, it has recorded provisions for estimated reclamation costs based on the assumption that the amounts of the reclamation bonds posted with government authorities and the amount of the non-current deposit (surety deposit), approximate the best estimate of the net present value of expected future reclamation costs that may need to be incurred by the Company.

The estimated reclamation provision is comprised of deposits to the Bureau of Land Management, the United States Forest Service, the third-party provider of the surety, and other agencies for the above properties.

**5.** **Property and equipment** 

Property and equipment is comprised of acquiring three parcels of land in Boise County, Idaho as part of CuMo Project. As of June 30, 2022 and June 30, 2021, there was $875,917 and $982,850, respectively in property and equipment.

**<u>CUMO PROJECT (United States)</u>**

***CuMo Property***

The CuMo Project is situated in south-central Idaho, approximately 15 miles northeast of the town of Idaho City. It consists of 120 unpatented mineral claims.

The project was optioned to the Company by CuMo Molybdenum Mining Inc. in 2004. The terms of the option agreement called for 300,000 CuMo shares (issued) and a combination of advance royalty payments and work requirements outlined below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Advance
 royalty payments:

● $10,000 upon signing (completed);

● $10,000 after 60 days (completed);

● $5,000 after 6 months (completed);

● $20,000 1st year anniversary (completed);

● $20,000 2nd year anniversary (completed);

● $15,000 3rd year anniversary (completed);

● $15,000 every 6 months thereafter (up-to-date).

These payments are to be credited against a 1.5% net smelter return ("NSR") which reduces to 0.5% NSR after cumulative payments of $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Work
 requirements:

● $25,000 during the first year (completed);

● At least $50,000 each year thereafter (up-to-date).

***Adair Property***

On February 5, 2017, the Company completed an agreement to acquire from a group of local prospectors twenty (20) unpatented mining claims adjacent to the CuMo property. The consideration payable for the claims was a one-time payment of the issuance by ICMC's of a 7-year term silver convertible debenture valued at $250,000 (issued), one million common shares of CuMo (issued), and the sum of $10,625 (paid) representing an advance on the initial 6-month interest payment on the convertible debenture.

**<u>BOISE PROPERTY (United States)</u>**

On July 8, 2012, the Company completed an option agreement to purchase three parcels of land that included surface rights located in Boise County, Idaho. These parcels of land, inclusive of six patented claims, are contiguous to and provide access to the CuMo project.

 ****

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

**6.** **Convertible notes** 

ICMC has entered into five different promissory note agreements with separate third-party lenders as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **June 30,<br> 2022** | **June 30,<br> 2021** |
| a) | Promissory notes comprised of the sale of Idaho CuMo Units ("CuMo Unit") for total proceeds of $1,250,000. Each CuMo Unit costs $250,000, consists of a promissory note which accrues annual interest at 8.5%, matures 7 years from the date of issuance and includes an option to enter into a Silver Purchase Agreement Right with the Company. Upon notice that the triggering event has occurred (the decision by the Company to go into production), the CuMo Unit holder has 30 days to enter into the Silver Purchase Agreement Right. The Silver Purchase Agreement Right allows the holder to purchase up to 375,000 ounces of refined silver from the Company at price of $5.00/ounce, plus make an upfront payment of $250,000. The Silver Purchase Agreement Right expires if: |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. it is not entered into within 30 days of the triggering event; or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if the principal amount of the loan is prepaid in whole or in part prior to maturity (this prepayment requires the consent of the lender); or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the maturity date is reached. |  |  |
|  | These notes are secured by all of the assets of ICMC, except for the six patented claims that make up the Boise Property. | $1250000 | $1250000 |
| b) | Promissory note comprised of total proceeds of $500,000. This loan accrues annual interest at 8.5% and was amended on January 29, 2016 to extend the maturity date to December 31, 2025. This loan also includes an option to enter into a Silver Purchase Agreement Right (same terms as noted above in a)) with the Company. |  |  |
|  | This note is secured by the six patented claims which make up the Boise Property owned by ICMC. | 500000 | 500000 |
| c) | Promissory note comprised of total proceeds of $500,000, issued pursuant to an option agreement that has since gone into default. This note has the same terms as those disclosed in Note 10 a), except that this note is unsecured. | 500000 | 500000 |
| d) | Promissory notes comprised of loans totaling $20,000. These loans accrue annual interest at 8.5%, paid semi-annually, and mature seven years from the grant dates. The loans also contain a Silver Purchase Agreement Right that allows the holders to purchase up to 1 ounce of silver for every $1 of promissory note principal, at a price of $5.00/ounce. |  |  |
|  | These notes are secured by all of the assets of ICMC, except for the six patented claims that make up the Boise Property. | 20000 | 20000 |
| e) | August 20, 2021, Promissory notes comprised of loans totaling $1,089,000. These loans are paid an annual interest at 7.5%, paid semi-annually, and mature seven years from the grant dates. Computershare is registered transfer agent for these units and ensures interest is paid. The notes Are listed for trading on the Austrian stock exchange. The loans also contain a Silver Purchase Agreement Right that allows the holders to purchase up to 1 ounce of silver for every $1 of promissory note principal, at a price of $5.00/ounce. |  |  |
|  | These notes are secured by all of the assets of ICMC, except for the six patented claims that make up the Boise Property. | 1079000 |  |
|  | Total principal outstanding | 3349000 | 2270000 |
|  | Accrued interest | 1431246 | 996046 |
|  | **Total** | $**4780246** | $**3266046** |

---

As at June 30, 2022, the Company has total promissory notes issued and outstanding in the amount of $3,349,000 (2020: $2,270,000). The Company has accrued aggregate interest of $1,431,246 as of June 30, 2022 (June 30, 2021: $996,046) in respect of these promissory notes.

**International CuMo Mining Corporation**

Notes to the Financial Statements

June 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Related party transactions** 

Details of the transactions between the Company and other related parties are disclosed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Compensation
 of key management personnel

The Company's related parties consist of companies owned by or associated with executive officers and directors as follows:

---

| | |
|:---|:---|
|  | **Nature of transactions** |
| Dykes Geologic Systems Ltd. | Exploration and administration fees |
| Steven Rudofsky | CEO Management fees |
| Andrew Brodkey | COO management fees |
| Robert Scannell | CFO management fees |

---

During the years ended June 30, 2022 and 2021, the Company incurred the following fees in the normal course of operations in connection with companies owned by key management and directors.

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **June 30,**<br>**2021** |
| Salaries and management fees - Geologic | $89555 | $33241 |
| Exploration fees - Geologic | 155854 | 13041 |
| Steven Rudofsky | 125000 |  |
| Andrew Brodkey | 92000 |  |
| Robert Scannel | 100000 | - |
|  | $**562409** | $**46282** |

---

Dykes Geologic Systems Ltd. ("Geologic Systems") is 50% owned by Shaun Dykes, President and CEO of the Company, and 50% owned by his spouse. Dykes Geologic Systems Ltd. is the full legal name. The company is also known as Geologic Systems Ltd., which is its trade name.

Amounts due to related parties are unsecured, non-interest bearing and due on demand. Trade and other payables at June 30, 2022 included $0 (June 30, 2021: $0), which were due to officers, directors and private companies controlled by directors and officers of the Company.

The remuneration of directors and other members of key management personnel during the years ended June 30, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **June 30,<br> 2021** |
| Salaries and fees | $562409 | $46282 |
| Total | $562409 | $46282 |

---

**International CuMo Mining Corporation**<br> Notes to the Financial Statements<br> June 30, 2022

**8.** **Income taxes** 

As of June 30, 2022, the Company has net operating loss carry forwards of $463,238 and $82,930 may be available to reduce future years' taxable income through 2042. The Company's net operating loss carry forwards may be subject to annual limitations, which could reduce or defer the utilization of the losses as a result of an ownership change as defined in Section 382 of the Internal Revenue Code.

The Company's tax expense differs from the "expected" tax expense for Federal income tax purposes (computed by applying the United States Federal tax rate of 21% and the State of Idaho tax rate of 19% to loss before taxes for fiscal year 2022 and 2021), as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| Tax expense (benefit) at the statutory rate | $(243200) | $(43538) |
| State income taxes, net of federal income tax benefit | (220038) | (39392) |
| Change in valuation allowance | 463238 | 82930 |
| Total | $- | $- |

---

The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets and liabilities.

The tax years 2022 and 2021 remains to examination by federal agencies and other jurisdictions in which it operates.

The tax effect of significant components of the Company's deferred tax assets and liabilities at June 30, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| Deferred tax assets: |  |  |
| Net operating loss carryforward | $546168 | $82930 |
| Timing differences | - | - |
| Total gross deferred tax assets | 546168 | 82930 |
| Less: Deferred tax asset valuation allowance | (546168) | (82930) |
| Total net deferred taxes | $- | $- |

---

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Because of the historical earnings history of the Company, the net deferred tax assets for 2022 and 2021 were fully offset by a 100% valuation allowance. The valuation allowance for the remaining net deferred tax assets was $546,168 and $82,930 as of June 30, 2022, and 2021, respectively.

**International CuMo Mining Corporation**<br> Notes to the Financial Statements<br> June 30, 2022

**9.** **Equity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Capital* 

 

At June 30, 2022, the Company's authorized share capital consisted of 500,000,000 shares of common stock with no par value. As of June 30, 2022, and June 30, 2021, the Company had 136,000,000 and 105,000,000 shares issued and outstanding.

*Fiscal 2022*

During the year ended June 30, 2022, the Company issued 31,000,000 units as private placement which was valued at $10 per share or, $3,100,000. The units consist of one share of common stock and one 5-year warrant to exercisable at $0.15 per share. The common shares were comprised of the following:

● 5,320,000 shares were issued for services performed by related parties

● 910,000 shares were issued for service performed by consultants

● 2,850,000 shares were sold to investors for cash proceed of $285,000

● 21,920,000 shares were issued to the former parent company to satisfy intercompany debt

*Fiscal 2021*

On March 17, 2021, the Company issued 20,000,000 common shares pursuant to the Bleiberg Property Purchase and Sale Agreement. These shares were ascribed a value of $422,175 and the property was used to settle the debt owed by the Company to Poly Resources LLC.

<u>Warrants</u>

At June 30, 2022, the Company had 31,000,00 warrants outstanding as a result of the private placements offering.

Warrants outstanding during the years ended June 30, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Warrants** | **Price** |
| Balance, June 30, 2021 | **-** | **-** |
| Warrants granted | **31000000** | $**0.15** |
| Warrants exercised | **-** | **-** |
| Warrants expired/forfeited | **-** | - |
| Balance, June 30, 2022 | **31000000** | $**0.15** |

---

 

These warrants have an expiration date of May 11, 2027.

**10.** **Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) During
 2016 the Company entered into a surety agreement that guarantees the reclamation bond on
 the CuMo Property. In order to maintain the good standing of this surety, the Company is
 required to make an annual payment of $8,340.

**11.** **Subsequent events** 

On January 23, 2023, the Company entered into a share exchange agreement (the "Share Exchange Agreement") with Joway Health Industries Group Inc("Joway"), a Nevada corporation. Pursuant to the terms of the Share Exchange Agreement, the Company's shareholders have transferred all the issued and outstanding shares of common stock of the Company to Joway in exchange for 182,240,000 newly issued shares of Joway's common stock. As a result of this share exchange (the "Exchange"), the Company became a wholly-owned subsidiary of Joway.

![](ex99-1_001.jpg)

**Unaudited Financial Statements of**

**International CuMo Mining Corporation**

September 30, 2022

**International CuMo Mining Corporation**

**Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **June 30,**<br>**2022** |
|  | (Unaudited) | |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $20804 | $127016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 20809 | 127016 |
| Property and equipment, net | 875917 | 875917 |
| Other assets | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $996726 | $1102933 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $235078 | $222934 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 1431246 | 1431246 |
| &nbsp;&nbsp;&nbsp;Convertible notes | 3349000 | 3349000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5015324 | 5003180 |
| &nbsp;&nbsp;&nbsp;Bond liabilities | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5115324 | 5103180 |
| Commitments and contingencies |  |  |
| Stockholders' Deficit: |  |  |
| Common stock, no par value, 136,000,000 shares issued and outstanding as of September 30, 2022 and June 30, 2022 |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 19251722 | 19251722 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (23370325) | (23251969) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (4118603) | (4000247) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and deficit | $996721 | $1102933 |

---

The accompanying notes are an integral part of the unaudited financial statements.

**International CuMo Mining Corporation**

**Statements of Operations**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**September 30,**<br>**2022** | **Three Months**<br>**Ended**<br>**September 30,**<br>**2021** |
| General and administrative expense | $118356 | $129500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 118356 | 129500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | (118356) | (129500) |
| Other (expense) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | (118356) | (129500) |
| Provision for income taxes (benefit) | - | - |
| Net loss | $(118356) | $(129500) |
| Basic and diluted (loss) per common share | $(0.00) | $(0.00) |
| Weighted-average number of common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 136000000 | 136000000 |

---

The accompanying notes are an integral part of the unaudited financial statements.

**International CuMo Mining Corporation**

**Statements of Changes in Stockholders' Equity**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Value** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Deficit** |
| Balance, June 30, 2021 | 105000000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $16151723 | $(22093875) | $(5942152) |
| Net loss |  |  |  | (129500) | (129500) |
| Balance, September 30, 2021 | 105000000 | $- | $16151723 | $(22223375) | $(6071652) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Value** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Deficit** |
| Balance, June 30, 2022 | 136000000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $19251723 | $(23251969) | $(4000247) |
| Net loss |  |  |  | (118356) | (118356) |
| Balance, September 30, 2022 | 136000000 | $- | $19251723 | $(23370325) | $(4118603) |

---

The accompanying notes are an integral part of the unaudited financial statements.

**International CuMo Mining Corporation**

**Statements of Cash Flows**

 **(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**September 30,**<br>**2022** | **Three Months**<br>**Ended**<br>**September 30,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;Net (loss) | $(118356) | $(129500) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 12144 | 129597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (106212) | 97 |
| Net increase (decrease) in cash and cash equivalents | (106212) | 97 |
| Cash and cash equivalents at beginning of period | 127016 | 588 |
| Cash and cash equivalents at end of period | $20804 | $685 |

---

The accompanying notes are an integral part of the unaudited financial statements

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

**1.** **Nature of operations** 

International CuMo Mining Corporation ("ICMC", "CuMo", or the "Company") is an exploration and development company with mineral right interests in the United States of America. ICMC was originally incorporated under the laws of Nevada in 2005, as Mosquito Mining Corp. In 2013, the Company was moved to Idaho and the name changed to Idaho CuMo Mining Corporation. In early January 2021 the name was changed to International CuMo Mining Corporation.

The Company is in the process of exploring its mineral right interests in the United States and at the date of these financial statements, has not yet determined whether any of its mineral properties contain economically recoverable mineral reserves. Accordingly, the carrying amount of mineral right interests represents cumulative expenditures incurred to date and does not necessarily reflect present or future values. The recovery of these costs is dependent upon the discovery of economically recoverable mineral reserves and the ability of ICMC to obtain the necessary financing to complete their exploration and development and to resolve any environmental, regulatory, or other constraints. Uncertainty also exists with respect to the recoverability of the carrying value of certain mineral right interests. The ability of the Company to realize on its investment in resource properties is contingent upon resolution of the uncertainties and confirmation of the Company's title to the mineral properties.

ICMC's common shares are not listed on any exchange.

The Company's year-end is June 30th.

**2.** **Basis of Presentation.** 

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The financial statements are presented in US dollars and all values are rounded to the nearest dollar except where otherwise indicated.

**Principles of Consolidation**

The financial statements include the accounts of International CuMo Mining.

**<u>Management's Representation of Interim Financial Statements</u>**

The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Tables included in notes may not sum due to rounding.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

**Going Concern**

These financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that the Company will continue operations for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. Since inception, the Company has incurred cumulative losses of $23,370,325 and as of September 30, 2022, had a working capital deficiency of $4,994,515 which may cast significant doubt regarding ICMC's ability to continue as a going concern.

The Company does not generate material cash flows from operations and accordingly, ICMC will need to raise additional funds through future issuance of securities. Although ICMC has been successful in raising funds in the past, there can be no assurance ICMC will be able to raise sufficient funds in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business. The Company has not determined whether any of its properties contain mineral reserves that are economically recoverable. It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of operations. Should ICMC be unable to realize its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts on the statement of financial position.

**3. Summary of significant accounting policies**

<u>Significant accounting judgments and estimates</u>

The Company makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual experience may differ from these estimates and assumptions.

The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both.

Information about critical accounting estimates and judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the financial statements are discussed below:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Unproven
 mineral right interests

The application of the Company's accounting policy for unproven mineral right interests requires judgment in determining whether it is likely that future economic benefits will flow to the Company, which may be based on assumptions about future events or circumstances. Estimates and assumptions may change if new information becomes available. If, after expenditures are capitalized, information becomes available suggesting that the recovery of the expenditures is unlikely, the amount capitalized is impaired with a corresponding charge to profit or loss in the period in which the new information becomes available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Title
 to unproven mineral right interests

Although the Company has taken steps to verify title to its unproven mineral right interests, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Convertible
 debentures

The Company presents convertible debentures separately in its debt and equity components on the statement of financial position. The fair value of a compound instrument at issuance is assigned to its respective debt and equity components. The fair value of the debt component is established first with the equity component being determined by the residual amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Going
 concern

Critical judgement and estimates are applied for the determination that the Company will continue as a going concern for the next year.

● Estimates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Share-based
 payments:

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date in which they are granted. Estimating fair values for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. The estimate also requires determining the most appropriate inputs to the valuation model, including the expected life of the share option, volatility and dividend yield, and making assumptions about them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Income
 taxes:

The calculation of income taxes requires judgment in applying tax laws and regulations, estimating the timing of the reversals of temporary differences, and estimating the reliability of deferred tax assets. These estimates impact current and deferred income tax assets and liabilities, and current and deferred income tax expense.

<u>Property, plant and equipment</u>

Property, plant and equipment are recorded at cost, net of accumulated depreciation, and are depreciated as following:

● Office equipment and furniture: 30% declining balance method.

Property consists of land holdings at CuMo, Idaho (Boise Property). As of September 30, 2022, the Company had no depreciable assets on its balance sheet. Depreciation expense for the periods and September 30, 2022, and June 30, 2022 was $-0- and $-0-, respectively.

<u>Unproven mineral right interests</u> 

The Company capitalizes into intangible assets all costs, net of any recoveries, of acquiring, exploring and evaluating an unproven mineral right interest, until the rights to which they relate are placed into production, at which time these deferred costs will be amortized over the estimated useful life of the rights upon commissioning the property, or written-off if the rights are disposed of, impaired or abandoned.

Management reviews the carrying amounts of mineral rights annually or when there are indicators of impairment and will recognize impairment based upon current exploration results and upon assessment of the probability of profitable exploitation of the rights. An indication of impairment includes but is not limited to expiration of the right to explore, substantive expenditure in the specific area is neither budgeted nor planned, and if the entity has decided to discontinue exploration activity in a specific area. Management's assessment of the mineral right's fair value is also based upon a review of other mineral right transactions that have occurred in the same geographic area as that of the rights under review.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

Costs include the cash consideration and the fair value of shares issued on the acquisition of mineral rights. Rights acquired under option or joint venture agreements, whereby payments are made at the sole discretion of the Company, are not accrued and are only recorded in the accounts when the payments are made. Proceeds from property option payments received by the Company are netted against the deferred costs of the related mineral rights, with any excess being included in operations.

There may be material uncertainties associated with the Company's title and ownership of its unproven mineral right interests. Ordinarily the Company does not own the land upon which an interest is located, and title may be subject to unregistered prior agreements or transfers or other undetected defects. As of September 30, 2022, the balance of unproven mineral right interests was $-0-.

<u>Impairment of non-financial assets</u>

At each date of the statement of financial position, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the assets belong.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of loss and comprehensive loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years.

<u>Reclamation provision</u>

An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the exploration, development or ongoing production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided and capitalized at the start of each project to the carrying amount of the asset, as soon as the obligation to incur such costs arises. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related asset, through amortization using either the unit-of-production or straight-line method. The related liability is adjusted for each period for the unwinding of the discount rate and for changes to the current market-based discount rate, amount or timing of the underlying cash flows needed to settle the obligation. Costs for restoration of subsequent site damage which is created on an ongoing basis during production are provided for at their net present values and charged against profits as extraction progresses.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

<u>Fair Value Measurements</u>

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

*Level 1* - Quoted prices in active markets for identical assets or liabilities.

*Level 2* - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable.

*Level 3* - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. We use the market approach to measure fair value for its Level 1 financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The respective carrying value of certain balance sheet financial instruments approximates its fair value. These financial instruments include cash and cash equivalents, trade receivables, related party payables, accounts payable, accrued liabilities and short-term borrowings. Fair values were estimated to approximate carrying values for these financial instruments since they are short term in nature, and they are receivable or payable on demand.

The estimated fair value of assets and liabilities acquired in business combinations and reporting units and long-lived assets used in the related asset impairment tests utilize inputs classified as Level 3 in the fair value hierarchy.

As of September 30, 2022, the Company's financial instruments measured at fair value on a recurring basis were investments, which were classified as "Level 1".

Income Taxes

The Company accounts for income taxes under FASB ASC 740, "Accounting for Income Taxes". Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Management provides a valuation allowance against deferred tax assets for amount which are considered "more likely than not" to be realized. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. FASB ASC 740-10-05, "Accounting for Uncertainty in Income Taxes" prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.

The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions on a quarterly basis to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position's sustainability under audit. On Dec. 18, 2019, FASB released Accounting Standards Update (ASU) 2019-12, which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The FASB has stated that the ASU is being issued as part of its Simplification Initiative, which is meant to reduce complexity in accounting standards by improving certain areas of GAAP without compromising information provided to users of financial statements. The Company adopted this guidance on January 1, 2021 which had no impact on the Company's financial statements.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

<u>Income (loss) per share</u>

Basic earnings (loss) per share are computed by dividing the net earnings (loss) attributable to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and conversion of notes, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods.

<u>Related party transactions</u>

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence, related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount, which is determined on a cost recovery basis.

<u>Cash and cash equivalents</u>

Cash and cash equivalents in the statement of financial position comprise cash at banks and brokerage firms. As of September 30, 2022 and June 30, 2021 the Company had $20,804 and $127,016 and in cash, respectively.

<u>Stock Purchase Warrants</u>

The Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, *Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock, Distinguishing Liabilities from Equity.* We determine the accounting classification of warrants we issue, as either liability or equity classified, by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock. Under ASC 480, warrants are considered liability classified if the warrants are mandatorily redeemable, obligate us to settle the warrants or the underlying shares by paying cash or other assets, and warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet the liability classification under ASC 480-10, we assess the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature.

If the warrants do not require liability classification under ASC 815-40, in order to conclude equity classification, we also assess whether the warrants are indexed to our common stock and whether the warrants are classified as equity under ASC 815-40 or other GAAP. After all such assessments, we conclude whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. We do not have any liability classified warrants as of any period presented.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

**4.** **Other assets** 

As of September 30, 2022 and June 30, 2022 the Company had other assets of $100,000 and $100,000 respectively.

**Reclamation bonds and provisions**

During fiscal year 2016 the CuMo project cash bond was refunded to the Company and replaced with a surety from a third party. In exchange for the third party agreeing to guarantee to fund the required Bureau of Land Management reclamation bond currently $278,000 the Company was required to pay a security deposit of $100,000 and make ongoing annual payments of $8,340.

The security deposit is refundable when the Company completes the required reclamation clean-up costs.

Although the Company does not anticipate being required to perform significant reclamation activities, to be conservative, it has recorded provisions for estimated reclamation costs based on the assumption that the amounts of the reclamation bonds posted with government authorities and the amount of the non-current deposit (surety deposit), approximate the best estimate of the net present value of expected future reclamation costs that may need to be incurred by the Company.

The estimated reclamation provision is comprised of deposits to the Bureau of Land Management, the United States Forest Service, the third-party provider of the surety, and other agencies for the above properties.

**5.** **Property and equipment** 

Property and equipment is comprised of acquiring three parcels of land in Boise County, Idaho as part of CuMo Project. As of September 30, 2022 and June 30, 2022, there was $875,917 in property and equipment.

**<u>CUMO PROJECT (United States)</u>**

***CuMo Property***

The CuMo Project is situated in south-central Idaho, approximately 15 miles northeast of the town of Idaho City. It consists of 120 unpatented mineral claims.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

The project was optioned to the Company by CuMo Molybdenum Mining Inc. in 2004. The terms of the option agreement called for 300,000 CuMo shares (issued) and a combination of advance royalty payments and work requirements outlined below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Advance
 royalty payments:

● $10,000 upon signing (completed);

● $10,000 after 60 days (completed);

● $5,000 after 6 months (completed);

● $20,000 1st year anniversary (completed);

● $20,000 2nd year anniversary (completed);

● $15,000 3rd year anniversary (completed);

● $15,000 every 6 months thereafter (up-to-date).

These payments are to be credited against a 1.5% net smelter return ("NSR") which reduces to 0.5% NSR after cumulative payments of $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Work
 requirements:

● $25,000 during the first year (completed);

● At least $50,000 each year thereafter (up-to-date).

***Adair Property***

On February 5, 2017, the Company completed an agreement to acquire from a group of local prospectors twenty (20) unpatented mining claims adjacent to the CuMo property. The consideration payable for the claims was a one-time payment of the issuance by ICMC's of a 7-year term silver convertible debenture valued at $250,000 (issued), one million common shares of CuMo (issued), and the sum of $10,625 (paid) representing an advance on the initial 6-month interest payment on the convertible debenture.

**<u>BOISE PROPERTY (United States)</u>**

On July 8, 2012, the Company completed an option agreement to purchase three parcels of land that included surface rights located in Boise County, Idaho. These parcels of land, inclusive of six patented claims, are contiguous to and provide access to the CuMo project.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

**6.** **Convertible notes** 

ICMC has entered into five different promissory note agreements with separate third-party lenders as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **September 30,<br> 2022** | **June 30,<br> 2022** |
| a) | Promissory notes comprised of the sale of Idaho CuMo Units ("CuMo Unit") for total proceeds of $1,250,000. Each CuMo Unit costs $250,000, consists of a promissory note which accrues annual interest at 8.5%, matures 7 years from the date of issuance and includes an option to enter into a Silver Purchase Agreement Right with the Company. Upon notice that the triggering event has occurred (the decision by the Company to go into production), the CuMo Unit holder has 30 days to enter into the Silver Purchase Agreement Right. The Silver Purchase Agreement Right allows the holder to purchase up to 375,000 ounces of refined silver from the Company at price of $5.00/ounce, plus make an upfront payment of $250,000. The Silver Purchase Agreement Right expires if: |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. it is not entered into within 30 days of the triggering event; or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if the principal amount of the loan is prepaid in whole or in part prior to maturity (this prepayment requires the consent of the lender); or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the maturity date is reached. |  |  |
|  | These notes are secured by all of the assets of ICMC, except for the six patented claims that make up the Boise Property. | $1250000 | $1250000 |
| b) | Promissory note comprised of total proceeds of $500,000. This loan accrues annual interest at 8.5% and was amended on January 29, 2016 to extend the maturity date to December 31, 2025. This loan also includes an option to enter into a Silver Purchase Agreement Right (same terms as noted above in a)) with the Company. |  |  |
|  | This note is secured by the six patented claims which make up the Boise Property owned by ICMC. | 500000 | 500000 |
| c) | Promissory note comprised of total proceeds of $500,000, issued pursuant to an option agreement that has since gone into default. This note has the same terms as those disclosed in Note 10 a), except that this note is unsecured. | 500000 | 500000 |
| d) | Promissory notes comprised of loans totaling $20,000. These loans accrue annual interest at 8.5%, paid semi-annually, and mature seven years from the grant dates. The loans also contain a Silver Purchase Agreement Right that allows the holders to purchase up to 1 ounce of silver for every $1 of promissory note principal, at a price of $5.00/ounce. |  |  |
|  | These notes are secured by all of the assets of ICMC, except for the six patented claims that make up the Boise Property. | 20000 | 20000 |
| e) | August 20, 2021, Promissory notes comprised of loans totaling $1,089,000. These loans are paid an annual interest at 7.5%, paid semi-annually, and mature seven years from the grant dates. Computershare is registered transfer agent for these units and ensures interest is paid. The notes Are listed for trading on the Austrian stock exchange. The loans also contain a Silver Purchase Agreement Right that allows the holders to purchase up to 1 ounce of silver for every $1 of promissory note principal, at a price of $5.00/ounce. |  |  |
|  | These notes are secured by all of the assets of ICMC, except for the six patented claims that make up the Boise Property. | 1079000 |  |
|  | Total principal outstanding | 3349000 | 2270000 |
|  | Accrued interest | 1431246 | 996046 |
|  | **Total** | $**4780246** | $**3266046** |

---

As of September 30, 2022, the Company has total promissory notes issued and outstanding in the amount of $3,349,000 (2020: $2,270,000). The Company has accrued aggregate interest of $1,431,246 as of September 30, 2022 (June 30, 2022: $996,046) in respect of these promissory notes.

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

**7.** **Related party transactions** 

Details of the transactions between the Company and other related parties are disclosed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Compensation
 of key management personnel

The Company's related parties consist of companies owned by or associated with executive officers and directors as follows:

---

| | |
|:---|:---|
|  | **Nature of transactions** |
| Dykes Geologic Systems Ltd. | Exploration and administration fees |
| Steven Rudofsky | CEO Management fees |
| Andrew Brodkey | COO management fees |
| Robert Scannell | CFO management fees |

---

During the years ended June 30, 2022 and 2021, the Company incurred the following fees in the normal course of operations in connection with companies owned by key management and directors.

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **June 30,**<br>**2021** |
| Salaries and management fees - Geologic | $89555 | $33241 |
| Exploration fees – Geologic | 155854 | 13041 |
| Steven Rudofsky | 125000 |  |
| Andrew Brodkey | 92000 |  |
| Robert Scannel | 100000 | - |
|  | $**562409** | $**46282** |

---

Dykes Geologic Systems Ltd. ("Geologic Systems") is 50% owned by Shaun Dykes, President and CEO of the Company, and 50% owned by his spouse. Dykes Geologic Systems Ltd. is the full legal name. The company is also known as Geologic Systems Ltd., which is its trade name.

Amounts due to related parties are unsecured, non-interest bearing and due on demand. Trade and other payables at June 30, 2022 included $0 (June 30, 2021: $0), which were due to officers, directors and private companies controlled by directors and officers of the Company.

The remuneration of directors and other members of key management personnel during the years ended June 30, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Salaries and fees | $**562409** | 46282 |
| Share-based compensation | **-** | - |
|  | $**562409** | 46282 |

---

**International CuMo Mining Corporation**

Notes to the Unaudited Financial Statements

September 30, 2022

**8.** **Equity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Capital* 

 

At September 30, 2022, the Company's authorized share capital consisted of 500,000,000 shares of common stock with no par value. As of September 30, 2022, and June 30, 2022, the Company had 136,000,000 shares issued and outstanding.

*Fiscal 2023*

 

The Company did not issue any common stock during the three month period ended September 30, 2022.

 

*Fiscal 2022*

During the year ended June 30, 2022, the Company issued 31,000,000 units as private placement which was valued at $10 per share or, $3,100,000. The units consist of one share of common stock and one 5-year warrant to exercisable at $0.15 per share. The common shares were comprised of the following:

● 5,320,000 shares were issued for services performed by related parties

● 910,000 shares were issued for service performed by consultants

● 2,850,000 shares were sold to investors for cash proceed of $285,000

● 21,920,000 shares were issued to the former parent company to satisfy intercompany debt

<u>Warrants</u>

At September 30, 2022, the Company had 31,000,00 warrants outstanding as a result of the private placements offering.

Warrants outstanding during the years ended September 30, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Warrants** | **Price** |
| Balance, beginning of year | **-** | **-** |
| Warrants granted | **31000000** | $**0.15** |
| Warrants exercised |  |  |
| Warrants expired/forfeit | - | - |
| Balance, end of the year | **31000000** | $**0.15** |

---

Warrants have an expiration date of May 11, 2027

9. Commitments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) During
 2016 the Company entered into a surety agreement that guarantees the reclamation bond on
 the CuMo Property. In order to maintain the good standing of this surety, the Company is
 required to make an annual payment of $8,340.

10. Subsequent
 events

On January 23, 2023, the Company entered into a share exchange agreement (the "Share Exchange Agreement") with Joway Health Industries Group Inc("Joway"), a Nevada corporation. Pursuant to the terms of the Share Exchange Agreement, the Company's shareholders have transferred all the issued and outstanding shares of common stock of the Company to Joway in exchange for 182,240,000 newly issued shares of Joway's common stock. As a result of this share exchange (the "Exchange"), the Company became a wholly-owned subsidiary of Joway.

**Joway Health Industries Group Inc. and International CuMo Mining Corporation**

**September 30, 2022 Unaudited Proforma Consolidated Balance Sheets**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Joway Health**<br>**Industries Group**<br>**September 30,**<br>**2022** | **International**<br>**Cumo Mining**<br>**September 30,**<br>**2022** |<br>**Acquisition**<br>**Entries** |<br>**Consolidated**<br>**September 30,**<br>**2022** |
| Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $- | $20804 |  | $20804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets |  | 20804 |  | 20804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net |  | 875917 |  | 875917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | 100000 |  | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill |  |  | 3225378 (c) | 3225378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets |  | - | 806345 (c)(d) | 806345 |
| &nbsp;&nbsp;&nbsp;Total Assets | $- | $996721 | $4031723 | $5028444 |
| &nbsp;&nbsp;&nbsp;Liabilities and Stockholders' Equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $153697 | $235078 |  | $388775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest |  | 1431246 |  | 1431246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes |  | 3349000 |  | 3349000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 153697 | 5015324 |  | 5169021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bond liabilities |  | 100000 |  | 100000 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 153697 | 5115324 |  | 5269021 |
| &nbsp;&nbsp;&nbsp;Commitments and Contingencies |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stockholders' Equity |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 20054 |  | 181901 (b) | 201955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional Paid-In Capital | 7232861 | 19251722 | (19251722) (a) | 7232861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated Deficit | (7406612) | (23370325) | 23101544 (a)(d) | (7675394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | (153697) | (4118603) | 4031722 | (240578) |
| &nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Equity | $- | $996721 | $4031722 | $5028443 |

---

Notes:

(a) To
 eliminate the equity sections of International CuMo Mining ("ICMC")

(b) To
 record the issuance of 181,900,864 shares of Joway Health Industries common stock to purchase
 (ICMC). Due to the thinly traded nature of Joway's common stock this issue was valued
 at par value of $0.001

(c) The
 preliminary allocation between goodwill and intangible assets is estimated to be 75% goodwill,
 and 25% to intangible assets amortized over a three period The
 Company's accounting for the acquisition of ICMC is incomplete. Management is performing
 a valuation study to calculate the fair value of the acquired intangible assets and the value
 of the common stock issued which it plans to complete within the one-year measurement period

(d) To
 record amortization of intangible as if the thr transaction had occurred at the beginning
 of the year

**Joway Health Industries Group Inc. and International CuMo Mining Corporation**

**Unaudited Proforma Consolidated Statements of Operations**

**For the Nine Months Ended September 30, 2022**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Joway Health**<br>**Industries Group**<br>**September 30,**<br>**2022** | **International**<br>**CuMo Mining**<br>**September 30,**<br>**2022** |<br>**Acquisition**<br>**Entries** |<br>**Consolidated**<br>**September 30,**<br>**2022** |
| Revenue |  |  |  |  |
| Cost of Sales |  |  |  |  |
| Gross Profit |  |  |  |  |
| Operating expenses |  |  |  |  |
| General and administrative expenses | $50644 | $49118 |  | $99762 |
| Salaries and management fees |  | 526619 |  | 526619 |
| Professional fees |  | 237050 |  | 237050 |
| Amortization of intangible assets | - | - | 268782 &nbsp;&nbsp;&nbsp;&nbsp;(e) | 268782 |
| Total operating expenses | 50644 | 812787 | (268782) | 1132212 |
| Loss from operations | (50644) | (812787) | (268782) | (1132212) |
| Other income (expense) |  |  |  |  |
| Other income |  | 344545 |  | 344545 |
| Interest expense | - | (177429) | - | (177429) |
| Total other income (expense) | - | 167116 | - | 167116 |
| Net Loss | $(50644) | (645670) | (268782) | (965096) |
| Basic and fully diluted loss per share | $(0.00) | $(0.00) |  | $(0.01) |
| Weighted average number of shares outstanding  | 20054000 | 136000000 | 45900864 (f) | 201954864 |

---

Notes:

(e) To
 record amortization as if the transaction had occurred on 1/1/2022

(f) To
 adjust the share count as if the transaction had occurred on 1/1/2022

**Joway Health Industries Group Inc. and International CuMo Mining Corporation**

**December 31, 2021 Unaudited Proforma Consolidated Balance Sheets**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Joway Health**<br>**Industries Group**<br>**December 31,**<br>**2021** | **International**<br>**Cumo Mining**<br>**December 31,**<br>**2021** |<br>**Acquisition**<br>**Entries** |<br>**Consolidated**<br>**December 31,**<br>**2021** |
| Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash |  | $573 |  | $573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets |  | 573 |  | 573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net |  | 982850 |  | 982850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | 100000 |  | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill |  |  | 5577069 (c) | 5577069 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets |  |  | 1239349 (c) (d) | 1239349 |
| &nbsp;&nbsp;&nbsp;Total Assets | $- | $1083423 | $6816418 | $7899841 |
| &nbsp;&nbsp;&nbsp;Liabilities and Stockholders' Equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $103053 | $309203 |  | $412256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest |  | 1182259 |  | 1182259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 3999 |  |  | 3999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to former parent company |  | 3303894 |  | 3303894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes |  | 3442259 |  | 3442259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 107052 | 8237614 |  | 8344666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bond liabilities |  | 100000 |  | 100000 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 107052 | 8337614 |  | 8444666 |
| &nbsp;&nbsp;&nbsp;Commitments and Contingencies |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stockholders' Equity |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 20054 |  | 181901 (b) | 201955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional Paid-In Capital | 7228862 | 16151723 | (16151723) (a) | 7228862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated Deficit | (7355968) | (23405914) | 22786240 (a)(d) | (7975642) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | (107052) | (7254191) | 6816418 | (544825) |
| &nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Equity | $- | $1083423 | $6816418 | $7899841 |

---

Notes

(a) To
 eliminate the equity sections of International CuMo Mining ("ICMC")

(b) To
 record the issuance of 181,900,864 shares of Joway Health Industries common stock to purchase
 (ICMC). Due to the thinly traded nature of

(c) The
 preliminary allocation between goodwill and intangible assets is estimated to be 75% goodwill,
 and 25% to intangible assets amortized over a three period The
 Company's accounting for the acquisition of ICMC is incomplete. Management is performing
 a valuation study to calculate the fair value of the acquired intangible assets and the value
 of the common stock issued which it plans to complete within the one-year measurement period.

(d) To
 record amortization of intangible as if the the transaction had occurred on 1/1/2022

**Joway Health Industries Group Inc. and International CuMo Mining Corporation**

**Unaudited Proforma Consolidated Statements of Operations**

**For the Year Ended December 31, 2021**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Joway Health**<br>**Industries Group**<br>**December 31,**<br>**2021** | **International**<br>**CuMo Mining**<br>**December 31,**<br>**2021** |<br>**Acquisition**<br>**Entries** |<br>**Consolidated**<br>**December 31,**<br>**2021** |
| Revenue |  |  |  |  |
| Cost of Sales |  |  |  |  |
| Gross Profit |  |  |  |  |
| Operating expenses |  |  |  |  |
| General and administrative expenses | $121788 | $5656 |  | $127444 |
| Salaries and management fees |  | 79814 |  | 79814 |
| Professional fees |  | 117680 |  | 117680 |
| Amortization of intangible assets | - |  | 619674 (e) | 619674 |
| Total operating expenses | 121788 | 203149 | 619674 | 944611 |
| Loss from operations | (121788) | (203149) | (619674) | (944611) |
| Other income (expense) |  |  |  |  |
| Interest expense | - | (236727) | - | (236727) |
| Total other income (expense) | - | (236727) | - | (236727) |
| Net Loss | $(121787) | $(439876) | $(619674) | $(1181338) |
| Basic and fully diluted loss per share | $(0.01) | $(0.00) |  | $(0.01) |
| Weighted average number of shares outstanding | 20054000 | 105000000 | 76900864 (f) | 201954864 |

---

Notes

(e) To
 record amortization as if the transaction had occurred on 1/1/2022

(f) To
 adjust the share count as if the transaction had occurred on 1/1/2022