Wallbridge Provides Corporate Update - Seite 2

Underground Exploration

In January 2021, Wallbridge announced a 10,000-metre underground exploration development program to create exploration platforms that will allow for more tightly-spaced and deeper drilling in the Area 51, Tabasco and Cayenne zones to further de-risk the project. The 2021 portion of the two-year program was budgeted at approximately 4,800 metres with two crews operating simultaneously on development of exploration platforms in each of the Area 51 and Tabasco zones.

Management has since optimized the development schedule and productivities and will continue this program with one development crew rather than two. As a result, the Area 51 development will be completed prior to starting the Tabasco ramp and the expected underground development will be reduced to 2,500 metres, with a corresponding decrease in expenditures, during 2021.

Permits

As disclosed on January 11, 2021, due to the increased size and scope of the project, the Company has paused the permitting process for a small-scale gold operation in the Gabbro Zone. The Company is now focussing its efforts on submitting permit applications, supported by an updated project description and environmental and social impact assessment, for a much larger and more appropriately sized operation following the delivery of the MRE and associated economic studies.

Planned Spending

At March 31, 2021, cash and equivalents totaled approximately $71 million, and in April 2021 the Company took advantage of an opportunity to complete a flow-through financing for gross proceeds of $20 million (net $18.5 million) at a 58% premium ($0.95) to the then market price of the stock thereby minimizing dilution. Surface, underground exploration and corporate overhead expenditures for the balance of the year based on the revised underground exploration plan discussed above are expected to be approximately $55 million, leaving the Company financed into 2022..

Regional Exploration

The 2021 exploration program includes regional drilling and fieldwork in the second half of the year. This exploration will amount to 10-15 % of the budget and will include approximately 20,000 metres of drilling to test for gold mineralization on various properties within the Company’s large regional land package which includes the Martiniere, Grasset and Casault target areas.