Clover Leaf Capital Announces Proposed Qualifying Transaction - Seite 3

North Shore Energy has an option to acquire 75% of the West Bear property from Gem Oil Inc. under the following terms over a three-year period ending on April 11, 2025:

• $225,000 cash (of which $75,000 has been paid)
• At the option of North Shore Energy, $75,000 cash or common shares
• Exploration expenditures totalling $270,654.40

Upon completion of the earn-in, North Shore Energy will have the right to acquire the remaining 25% of the West Bear property for $200,000 cash and the issuance of $200,000 worth of common shares to Gem Oil Inc. Upon completion of the earn-in, Gem Oil Inc. will be granted a 2% royalty, with North Shore Energy having the option to purchase 1% of the royalty for $1,000,000.

Foto: Accesswire

Figure 3 - North Shore Energy's West Bear property and neighboring property positions. Source: Saskatchewan government database and company disclosure. This figure contains information about adjacent properties to the West Bear property which North Shore does not have the right to explore. Investors are cautioned that mineralization on adjacent properties is not necessarily indicative of mineralization on the West Bear property.

Current work

Interpretation of publicly available geological and geophysical data is underway in an effort to identify priority targets for exploration on North Shore Energy's properties. In addition, North Shore Energy is planning to conduct airborne gravity-magnetic-radiometric surveys over both of its properties.

Capital Structure of North Shore Energy

Immediately prior to the completion of the Transaction, North Shore Energy is expected to have 16,725,000 common shares outstanding, with no outstanding warrants, stock options or other convertible securities.

Capital Structure of Clover Leaf

Clover Leaf currently has 11,850,000 Clover Leaf Shares outstanding, 1,185,000 stock options and 465,000 broker share purchase warrants.

Summary of the Transaction

Clover Leaf and North Shore Energy intend to complete the Transaction subject to terms and conditions to be set forth in a binding definitive agreement (the "Definitive Agreement"). The Transaction will be subject to certain conditions precedent, including, but not limited to, the approval of the board of directors and the shareholders of North Shore Energy ("North Shore Energy Shareholders"), the approval of the board of directors and, if required, the shareholders of Clover Leaf and the acceptance by the TSXV.