Falcon

Highlights:

• 100% interest in the Falcon (previously Way Lake) Uranium Project
  • 42,908 hectares covering 11 claims
  • 50 km east of the Key Lake mine
• Geological and geochemical features show distinct similarities to high grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider
• At the EWA target located on the southern portion of the Falcon property, up to 0.492% U₃O₈ and 1,300 ppm lead were obtained from grab samples; eight holes drilled in 2008 intersected variably radioactive granitic pegmatite dykes including an intercept of 0.082% U₃O₈ over 6.5 metres
• The Walker Lake, Walker South and Walker River showings occur along a conductive trend that covers some 60 kilometres of structurally displaced EM conductors in the southwest portion of the property; historic reconnaissance drilling has intersected strongly clay and/or chlorite altered, sheared and faulted graphitic pelites containing anomalous uranium, copper, nickel, zinc and molybdenum
• Skyharbour completed an airborne gravity geophysical survey on the property in 2022 to cover the entirety of the Falcon Property at a vertical height of 80m and a line spacing of 200m for a total of 2,843 line km
• Skyharbour has recently entered into an option agreement with North Shore Uranium which provides North Shore an earn-in option to acquire an initial 80% interest and up to a 100% interest in the Falcon Property
• North Shore can earn an initial 80% interest in the claims over a three year period by fulfilling combined cash, share issuance and exploration expenditure commitments of CAD $5.3 million, with an option to purchase the remaining 20% for an additional CAD $10 million in cash and shares

Project Summary:

Skyharbour owns 100% of the Falcon (previously Way Lake) Uranium Project which covers 42,908 hectares covering 11 claims approximately 50 km east of the Key Lake mine. Uranium mineralization discovered to date at Falcon is shallow and is hosted in two geological settings, with the southern half hosting classic Athabasca-style basement mineralization associated with well-developed EM conductors which include EWA and Walker targets. Historical exploration has consisted of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area. The project area is in close proximity to two all-weather northern highways and grid power.

High-Priority Target Areas:

At the EWA target located on the southern portion of the Falcon property, up to 0.492% U₃O₈ and 1,300 ppm lead were obtained from grab samples. Eight holes drilled in 2008 intersected variably radioactive granitic pegmatite dykes including an intercept of 0.082% U₃O₈ over 6.5 metres. The Walker Lake, Walker South and Walker River showings occur along a conductive trend that covers some 60 kilometres of structurally displaced EM conductors in the southwest portion of the property. Historic reconnaissance drilling has intersected strongly clay and/or chlorite altered, sheared and faulted graphitic pelites containing anomalous uranium, copper, nickel, zinc and molybdenum. Skyharbour completed an airborne gravity geophysical survey on the property to cover the entirety of the Falcon Property at a vertical height of 80 m and a line spacing of 200 m for a total of 2,843 line km. The survey has further refined drill targets for future programs.

2024 Winter Drilling:

North Shore recently completed its maiden drilling program at the Falcon Project, with three targets drilled along a strong, dominantly northeast-trending electromagnetic conductor system, P03, P08 and P12. Uranium mineralization was confirmed at P03 and P08 with the most significant intersection being at P08, 316 ppm U₃O₈ over a 4.7 metre interval with a peak value of 572 ppm U₃O₈. The following summarizes North Shore’s drilling results and future plans:

• P03: A blocky fracture zone and interpreted brittle fault with graphite-rich gouge was encountered between 193.5 - 196.0m coincident with the projected location of the modelled EM conductor. Below this fault zone from 196.6 to 209.0m, multiple samples had elevated uranium content including two samples with greater than 300 ppm U₃O₈.
• P08: A 4.7m interval between 42.3 - 47.0m returned 316 ppm U₃O₈ with one sample in the interval returning the highest reading from the program, 572 ppm between 42.3 - 42.8m. From 102.3 - 105.5m, a brittle pegmatitic and graphitic fault zone was intersected at the projected depth of the EM conductor.
• Next Steps: North Shore has divided Falcon into three uranium exploration zones, 1, 2 and 3. To date, North Shore has identified 36 uranium targets at Falcon with 12 of those being in Zone 1. North Shore will continue prioritizing targets at Falcon in an effort to maximize the chances of success in its next drill program. As currently planned, that drill program would have two components, follow-up drilling along the 3.0 km trend where North Shore discovered near-surface uranium mineralization in early 2024 and the testing of new targets within Zone 1 and potentially elsewhere. Additional updates on North Shore’s target prioritization efforts will be provided on an ongoing basis.

Table 1: Falcon Drilling Results

Drillhole Information							Anomalous Uranium U3O8 (ppm)1
ID	Target	Dip (°)	Azi (°)	Cover (m)	Total Depth (m)	# Samples	From (m)	To (m)	Interval (m)	Interval Value	Max. Value
FN24001	P03	-50	135	5.8	230	120	5.8	196.6		NAR	36
							196.6	197.1	0.5	378	378
							197.1	199.5		NAR	86
							199.5	201.1	1.6	182	321
							201.1	203.1		NAR	27
							203.1	203.8	0.7	105	105
							203.8	205.7		NAR	61
							205.7	206.3	0.6	345	345
							206.3	208.5		NAR	42
							208.5	209.0	0.5	130	130
							209.0	230		NAR	8
FN24002	P08	-47	120	30.5	144	46	34.0	40.6		NAR	51
							40.6	41.2	0.5	103	103
							41.2	42.3		NAR	98
							42.3	47.0	4.7	316	572
							47.0	67.6		NAR	49
							67.6	68.4	0.8	110	110
							68.4	69.4		NAR	22
							69.4	71.0	1.6	128	132
							71.0	109.5		NAR	96
FN240032	P12	-47	315	2.5	106	39	2.5	94.0		NAR	11

The Option Agreement: 

Pursuant to the Agreement, North Shore may acquire an initial 80% interest in the Property by (i) issuing common shares of North Shore (“Shares”) having an aggregate value of CAD $1,225,000; (ii) making aggregate cash payments of CAD $525,000; and (iii) incurring an aggregate of CAD $3,550,000 in exploration expenditures on the Property over a three-year period.

Date	Cash Payments (CAD $)	Exploration Expenditures (CAD $)	Value of Shares Issued (CAD $)
On Closing(1)	$50,000(2)	$0	$150,000(3)
By Dec. 31st, 2023	$0	$250,000	$0
On or before the first anniversary of Closing	$100,000	$250,000	$200,000(4)
On or before the second anniversary of Closing	$150,000	$1,300,000	$350,000(4)
On or before the third anniversary of Closing	$225,000	$1,750,000	$525,000(4)
TOTAL	$525,000	$3,550,000	$1,225,000

(1) Closing which will be on the date of the closing of North Shore’s qualifying transaction.
(2) $25,000 on signing the Agreement and $25,000 due at Closing.
(3) At a price of $0.30 per Share.
(4) Cash or shares at North Shore’s option at a price per Share using the five (5) VWAP at the time of issuance, subject the minimum pricing rules of the TSX Venture Exchange.

Once North Shore has earned an initial 80% interest in the Property, North Shore may acquire the remaining 20% interest in the Property within 90 business days by (i) issuing Shares having a value of CAD $5,000,000, and (ii) making a cash payment of CAD $5,000,000 to Skyharbour. If North Shore does not elect to acquire the remaining 20% interest, a joint venture will be formed with Skyharbour holding a 20% participating interest.

North Shore will be the operator of the exploration programs during the earn-in stage and for the joint venture if formed. Two claims totaling 10,673 hectares that form part of Skyharbour’s Foster River Property are subject to a one percent (1%) NSR royalty payable to Skyharbour. The remaining nine claims totaling 32,235 hectares that comprise Skyharbour’s Falcon Property are subject to a two percent (2%) NSR royalty payable to Denison Mines Corp. (“Denison”) with North Shore having the right to purchase one percent of the royalty from Denison at anytime by paying $1 million.