With an existing high-grade resource at Johnson Tract that will only increase with further drilling, the Company is assessing opportunities for near term production. The JT project is conveniently located close to tidewater which presents a unique opportunity for directly shipping mined JT ore by barge to an existing mill facility.

Marine transport is lowest cost form of bulk transport and there are multiple coastal mines and development projects within barging distance of the Project.

There are many advantages of a DSO scenario.

• Mining ore and shipping/barging to an existing mill elsewhere eliminates the need to build and fund a mill at site. This drastically reduces CAPEX.
• Mining ore and loading onto a truck to transport via a 15 mile road and load onto a barge at tide water provides low execution risk.
• The scenario offers low environmental impact (no on-site tailings, waste rock would be used for backfill), making the project simpler to permit, build and operate.
• DSO offers a reduced timeline to production without having to wait years for permitting and licensing as the project would leave a small footprint.

The Company is currently working on assessing a DSO scenario as well as progressing permitting needed for various infrastructure initiatives.