Nevada Exploration and Austin Gold Complete Earn-In Agreement at Kelly Creek Gold Project, Battle Mountain Mining District, Nevada - Seite 2

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/64288431-3dbf-4f6d ...

The photo is also available via AP PhotoExpress.

Earn-In and Joint Venture Agreement

Under the Agreement, to earn a 51% joint venture interest in the Project, Austin Gold must spend $5,000,000 in exploration expenditures, as follows (the “Earn In”):

• $1,000,000 in aggregate within first 15 months, which represents a firm commitment,
• $2,000,000 in aggregate before second anniversary,
• $3,500,000 in aggregate before third anniversary, and
• $5,000,000 in aggregate before fourth anniversary.

During the Earn In, Austin Gold will be the operator of the Project.

Upon completing the Earn In, Austin Gold has a one-time option to elect to earn an additional 19% interest in the joint venture, for a total of 70% (the “Additional Option”), by spending $1,500,000 per year during first three years of the Additional Option, and by delivering a prefeasibility study prior to June 1, 2028.

At NGE’s election, which must be made within 120 days of the approval by the joint venture of a feasibility study, Austin Gold will be obligated to provide NGE’s portion of any debt financing or arrange for third party financing of NGE’s portion of any debt financing required to construct a mine on the Project described in the feasibility study in consideration for the transfer by NGE to Austin Gold of a 5% interest in the joint venture.

If a party is diluted to a 10% interest in the joint venture, its interest will be converted to a 10% net profits interest.

Kelly Creek Project

NGE’s Kelly Creek Project is located along the Battle Mountain – Eureka Gold Trend within the larger Kelly Creek Basin, which is bounded by large gold deposits to the north (Twin Creeks, Getchell, Turquoise Ridge, and Pinson) and south (Lone Tree, Marigold, Trenton Canyon, Converse, Buffalo Valley, Copper Basin, and Phoenix).  The Project consists of a combination of unpatented mining claims held by NGE through its wholly-owned subsidiary Pediment Gold LLC (“PGL”) (24 km²); unpatented mining claims leased by PGL from a third party under a Mining Lease and Option to Purchase Agreement (15 km²); and private land leased by PGL under a Mining Lease Agreement (14 km²), for a district-scale land package totalling 53 km².