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Reliance Gold Project, B.C.

Community Consultations & Permits

The Company is committed to a mutually beneficial relationship with local First Nations. Dialogue has been active throughout 2020 through 2023. First Nation contractors were engaged to assist in several aspects of the 2020 through 2023 exploration activities. As a result, through December 30, 2022, about 913 man-days of training and employment has been provided to community members from Tsal’alh, the closest First Nation community in the past three years. This is about 24% of the company’s manpower on the Project during that same period. In addition, additional supply and service activities have been provided by contractors and members of the Bridge River First Nation (Xwisten).

In October 2022 the Company announced the finalization of an agreement with Xwisten. The Exploration Agreement addresses the parties’ desire for a mutually beneficial arrangement in respect of current and proposed exploration activities within the Xwísten traditional territory and provides for protection of traditional activities and sensitive sites, including archaeological surveys, environmental protection measures, and the opportunity for the Xwísten community to participate in any business and employment opportunities that the project generates. The Exploration Agreement covers all exploration activities through to completion of a Feasibility Study which demonstrates economic viability.

Amongst other accommodation, Xwísten was granted 130,000 common shares of the Company.

As part of the initial consultation efforts, a preliminary archaeological study was completed in 2020 on the Reliance Gold Property. The field-oriented study did not identify any archaeological artifacts, or areas of concern. With the increase in size of the mineral rights and the Company’s expanding exploration activities further preliminary archaeological studies are under consideration in the new option areas.

The Company's Notice of Work drill permit application for the Reliance Option was submitted to the BC government in early 2020 and a five-year permit was granted in October. During 2021 and 2022, the Company requested amendments to the permit and bonding to facilitate some anticipated additional drill road disturbance required for the 2021 and 2022 diamond drilling programs. These amendments were approved, and additional bonding was posted during 2021.In March 2023, after community consultation through 2022 and early 2023 an amended and re-started five-year permit was granted that contemplated an expanded area of disturbance related to drill trails and drill pads to facilitate an expanded drill program in 2023 and beyond.

In addition to the First Nation communities, the Company has contracted several residents of the Gold Bridge area to provide services since 2020.

The Company co-signed a Memorandum of Understanding (MOU) in 2021 to work together in the spirit of collaboration and partnership with the Bridge River Valley Community Association (BRVCA), Tsal’alh Development Corporation, Bralorne Gold Mines, Cobalt One Energy Corp, and the Squamish-Lillooet Regional District.