ELECTRA NICKEL PROJECT

On December 31, 2020, ALX announced the signing of a definitive agreement for an option to purchase a 100% interest in the Electra Nickel Project (“Electra”, or the “Project”) located in Shebandowan Greenstone Belt within the Thunder Bay South Mining District of Ontario, Canada. Electra, formerly known as the Bateman Lake property, is prospective for nickel, copper and cobalt (“Ni-Cu-Co”), platinum group elements (“PGEs”) and gold mineralization. In March 2021, ALX staked an additional claim and expanded the size of the Project to 191 claims (211 cell units) totaling approximately 4,517 hectares (11,162 acres).

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Electra Nickel Project](https://www.alxresources.com/assets/img/maps/Electra%20Nickel%20Project%20Project-20210424191417.jpg "Electra Nickel Project")

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Highlights of the Electra Nickel Project

• Electra is located approximately 35 kilometres northwest of Thunder Bay, Ontario, Canada in a fertile exploration district well-linked to highways, roads and trails, and lies near a powerline and the Canadian National Railroad.
• The past-producing Shebandowan Mine, operated by Inco Ltd. from 1972 until 1998, is located approximately 35 kilometres to the northwest of Electra. Production consisted of 9.29 million tons grading 1.75% nickel, 0.88% copper, 0.063% cobalt and 1.83 grams/tonne PGEs.¹
• ALX considers Electra underexplored, especially in the past decade where little to no modern exploration has been carried out.
• The presence of komatiitic ultramafic rocks with spinifex textures grading up to approximately 1.0% nickel in surface sampling is reminiscent of the mineralization styles found in the Kambalda District of Australia, and the Raglan district of Quebec.
• Gold mineralization is present at Electra. In 1995, Hemlo Gold Mines Inc. (“Hemlo”) mapped a gold-bearing system over a 700 metre strike length and sampled up to 82.5 grams/tonne gold on the northeast shore of Bateman Lake within a Timiniskaming conglomerate, which Hemlo stated could represent the distal expression of a larger gold-bearing system at depth.²
• The Tower Stock Gold Project operated by White Metal Resources Corp. is located approximately five kilometres northeast of the gold showing found by Hemlo, and hosts an inferred resource estimated at 86,297 ounces of gold contained within 3,971,583 tonnes at an average grade of 0.68 grams/tonne (not compliant with National Instrument 43-101).³

^1 Mineral Deposit Inventory, Ministry of Energy, Northern Development and Mines ("ENDM"), #MDI52B09SE00003

^2 Hemlo Gold Mines Inc., ENDM Assessment File #52A12SE0001, 1996

^3Independent Mineral Resource Estimation, Tower Mountain Gold Deposit, ValGold Resources Ltd.; Prepared by Caracle Creek International Consulting Inc. and Clark Exploration Consulting Inc., Effective February 9, 2006.

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Kwiatkowski Showing - Nickel In Komatiit…](https://www.alxresources.com/assets/img/maps/Kwiatkowski-Showing-Nickel-In-Komatiite-hwu6za.jpg "Kwiatkowski Showing - Nickel In Komatiite")

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Komatiite with Spinifex Texture](https://www.alxresources.com/assets/img/maps/Komatiite-with-Spinifex-Texture-hwu6za.jpg "Komatiite with Spinifex Texture")

In early May 2021, ALX completed a versatile time-domain electromagnetic (“VTEM^TM ^Plus”) survey totaling 335.6 line-kilometres at Electra. Preliminary observations of the VTEM^TM data show strong conductive features in the north-central part of Electra where historical grab samples have returned up to 0.95% nickel in a showing hosted within komatiitic rocks. The komatiites hosting the showing are notable for exhibiting spinifex textures associated with the nickel mineralization. A further review of public domain gravity data shows a strong gravity high anomaly underlying Electra that extends for approximately 35 kilometres northwest to the past-producing Shebandowan Nickel Mine. Interpretation of the VTEM data is ongoing and will provide a foundation for ground-truthing the interpreted anomalies by prospecting in the summer of 2021.

Details of the Acquisition

ALX has executed a definitive agreement (the “Agreement”) with a vendor group (“the Vendors”) to earn up to a 100% interest in one hundred and forty-eight (148) units totaling 3,168.02 hectares (7,828.35 acres), in exchange for total payments of $135,000 cash, 1.1 million common shares of ALX, and $500,000 in exploration expenditures (the “Expenditures”), according to the following schedule:

• A non-refundable $3,000 cash payment paid by ALX as a pre-option payment for an exclusive 45-day period during which ALX conducted due diligence on the Project (completed);
• On the later of TSX Venture Exchange (“TSXV”) approval and signing of the Agreement (such date becoming the “Anniversary Date”): $7,000 in cash and 300,000 common shares of ALX (paid);
• On or before 1st Anniversary Date: $15,000 in cash and 250,000 common shares of ALX, and $100,000 in Expenditures;
• On or before 2nd Anniversary Date: $20,000 in cash and 200,000 common shares of ALX, and an additional $100,000 in Expenditures;
• On or before 3rd Anniversary Date: $25,000 in cash and 150,000 common shares of ALX, and an additional $100,000 in Expenditures;
• On or before 4th Anniversary Date: $30,000 in cash and 100,000 common shares of ALX, and an additional $100,000 in Expenditures;
• On or before 5th Anniversary Date: $35,000 in cash and 100,000 common shares of ALX, and an additional $100,000 in Expenditures.

Electra is subject to a 2.5% net smelter returns royalty (“NSR”) payable to the Vendors on the sale of valuable minerals from the Project. At any time, ALX shall have the right to purchase from the Vendors up to 1.5% of the NSR in 0.5% increments for $500,000 per 0.5% increment.

About Electra

Electra lies within the western extension of the Abitibi-Wawa-Shebandowan subprovince of the Superior structural province of the Canadian Shield. The volcanic-sedimentary units of this belt are bounded to the south by granitic terrain, and to the north by the Quetico subprovince.

A major structural feature known as the Thunder Lake Fault striking northeast-southwest through Electra is traced through the property using airborne magnetic geophysics, and is interpreted as a lithospheric scale fault. This type of deep-seated structure is a requisite for the emplacement of mineralization from a magmatic source.

Historical exploration at Electra since the 1960s consisted of prospecting, soil sampling, trenching and limited geophysical and drilling programs, intermittently searching for nickel and gold mineralization. A 1995 drilling program by Winslow Gold Corp. intersected multiple zones of Ni-Cu-Co and zinc mineralization, including 16.6 metres of 0.15% nickel. At the Kwiatkowski Zone showing, ground prospecting located komatiitic rocks that returned values of up to 9,482 parts per million (“ppm”) nickel. The komatiites hosting the showing are notable for exhibiting spinifex textures associated with the nickel mineralization. Follow-up trenching and channel sampling of the komatiites by Linear Metals Corporation in 2008 returned a maximum value of 6,675 parts per million nickel over 3.7 metres.

National Instrument 43-101 Disclosure

This technical information has been reviewed and approved by Sierd Eriks, P.Geo., President and Chief Geologist of ALX, who is a Qualified Person in accordance with the Canadian regulatory requirements set out in National Instrument 43-101. Readers are cautioned that much of the technical information described on this web page is historical in nature; however, the historical information is deemed credible and was produced by professional geoscientists in the years discussed.

Geochemical results quoted on this web page were taken directly from assessment work filings published by the Government of Ontario and other regulatory filings. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by its Qualified Person, but create a scientific basis for ongoing work in the Electra property area. Management further cautions that past results or discoveries on adjacent or nearby mineral properties are not necessarily indicative of the results that may be achieved on ALX’s mineral properties.