LONGLEGGED LAKE PROPERTY

Silver Dollar entered into an option agreement in January 2019 to earn a 100% interest in the Longlegged Lake property, subject to a 1.5% NSR royalty. Located approximately 30 kilometres (km) south of the town of Red Lake, the 2,597-hectare property is situated in a structurally active area of the Red Lake Mining Division where exploration activity has been re-energized with the discovery success at Great Bear's Dixie Gold Project. Other active neighbours in the area include BTU Metals, who announced in December 2019 they had staked a large claim package adjoining the northern boundary of the property (Figure 1) to expand their Dixie-Halo property where they have been drilling a potential Cu-Ag-Au VMS discovery called the TNT Target; and Golden Goliath Resources, who recently announced their Kwai property to the north-east of the property (Figure 1) along the PLFZ has been found to host a repetition of the same sequence of rocks that hosts the LP Zone on Great Bear's Dixie property.

Figure 4: Longlegged Lake Project - Deep Penetrating Regional Lithoprobe Seismic Survey

In the spring of 2019, Silver Dollar completed a heliborne high-resolution magnetic (MAG) survey on the property that identified dominant northeast-southwest MAG lineaments interpreted to be the deep-seated crustal-scale PLFZ (Figure 4).

The MAG survey, that included a total of 1,837 line-km on 25-meter line spacing, also identified many curved lineaments (Figure 5) which could be related to shearing and folding where dilation zones may have enabled mineralization to occur. Fieldwork underway will include soil sampling, geological mapping and prospecting to follow up on the key structures identified by the MAG survey.

Figure 5: 2019 MAG Survey with Interpreted Tracing of the PLFZ and Curved Lineaments Crossing the Property

To further evaluate the anomalous gold in soils along the PLFZ, in 2020 Silver Dollar completed prospecting and soil sampling of areas interpreted to be prospective to host gold mineralization. A till sampling program of 30 samples was completed to assess the potential of gold in basal till down ice direction of the PLFZ. These samples were sent to Overburden Drilling Management in Nepean, Ontario. for determination of the presence of gold grains. Gold grains within the samples will be classified as to their shape and size to help determine proximity to the potential source. The results of the sampling have been recently received and are being integrated into the exploration model.

The next phase of exploration is comprised of two areas of Induced Polarization (IP) surveying which is ongoing. The two grids were selected using the interpretation of the airborne magnetics. The IP survey is intended to define sulfide mineralization within or adjacent to the PLFZ. In other locations within the Red Lake area, sulfide mineralization is associated with gold values. Figure 6 below illustrates the locations of the IP surveys.

Figure 6: IP Survey Areas

To acquire the Longlegged Lake property (consisting of eight multi-cell mining claims), Silver Dollar must pay the Optionor $85,000 in cash payments over four years. Once the Option consideration is paid in full, then it shall be deemed to have earned a 100% undivided interest in the property, subject to a 1.5% NSR royalty. Silver Dollar will have the right to purchase 0.75% of the NSR royalty for $500,000 at any time.