CLANTON HILLS SILVER PROPERTY

CLANTON HILLS SILVER PROPERTY

On August 31, 2020, the Company entered into an option agreement with Allegiant Gold Ltd. (“Allegiant”)(TSXV:AUAU) wherein the Company can acquire up to a 50.1% interest, subject to a 2% NSR royalty, in the Clanton Hills silver project by issuing 2,000,000 common shares to Allegiant on execution of the agreement, paying an aggregate of US$550,000 in cash and common shares and incurring exploration expenditures of US$1,500,000 over a three year period. The Company can increase its ownership interest to 70% by paying Allegiant an additional US$3,000,000, 50%of which can be settled in common shares at the Company’s election.

The Clanton Hills project, located 70 miles west of Phoenix, Arizona, consists of 32 wholly-owned mining claims, subject to underlying royalties. The claims are centered on an isolated, bedrock knob of silicified breccia measuring about 25 meters by 90 meters. The knob is completely surrounded by a pediment surface, where gravel cover is likely to be 5 to 20 meters thick.

In December 2020, the Company completed a five hole reverse circulation drill program totaling 1,000 metres on the Clanton Hills property. No significant assays were received from the samples recovered so the Company returned the property to Allegiant.