South Dufferin

Highlights:

• The South Dufferin Project covers 13,205 hectares across 10 claims, located south of the Athabasca Basin in northern Saskatchewan
• The property lies along the Virgin River Shear Zone, near high-grade uranium zones at Cameco’s Dufferin Lake (1.73% U₃O₈ over 6.5m) and Centennial deposit (up to 8.78% U₃O₈ over 33.9m)
• Historical work includes surveys, sampling, mapping, and drilling that identified elevated uranium, anomalous base metals, and significant clay alteration
• Exploration potential exists for basement-hosted uranium along the Dufferin Lake fault and Virgin River Shear zone, with the project considered drill-ready and at a discovery-ready state
• UraEx Resources has an agreement to earn up to 100% of the project, initially acquiring 51% by issuing shares, cash payments, and investing $3M in exploration over three years

Project Summary: 

The South Dufferin Project totals 13,205 hectares covering 10 claims and is located immediately south of the southern margin of the Athabasca Basin in northern Saskatchewan. The property covers the southern extension of the Virgin River Shear Zone, which hosts known high-grade uranium mineralization at Cameco Corp.'s Dufferin Lake zone approximately 13 kilometres to the north (highlight drill results of 1.73% U₃O₈ over 6.5 metres) and Cameco Corp.'s Centennial deposit approximately 25 kilometres to the north (includes drill intersections up to 8.78% U₃O₈ over 33.9 metres).  A Definitive Agreement was recently signed in October of 2024 with UraEx Resources to earn an initial 51% and up to 100% of both the South Dufferin and Bolt Projects, collectively.

For an initial 51%, UraEx will issue common shares having an aggregate value of CAD $1,150,000, make total cash payments of $450,000, and incur $3,000,000 in exploration expenditures on both the South Dufferin and Bolt properties over a 3 year period. UraEx has an option to acquire remaining 100% by issuing common share having an aggregate value if CAD $2,500,000, making cash payments of $1,200,000 and incurring $1,500,000 in exploration expenditures over an additional two-year period.

Historical exploration work on the Project consists of airborne EM, magnetic, and radiometric surveys, lake water and sediment sampling, prospecting and ground-truthing of airborne anomalies, geological mapping, and diamond drilling. Some of the historical drill holes intersected elevated uranium with locally anomalous base metal and boron concentrations as well as significant clay alteration.

Exploration potential exists for basement-hosted uranium mineralization associated with the Dufferin Lake fault and parallel faults within the Virgin Lake Shear zone. With numerous mineralized showings to the north of the Project, exploration efforts at South Dufferin have advanced the project to a discovery-ready state. Significant exploration potential exists for basement-hosted uranium mineralization associated with the Dufferin Lake fault, which has an apparent offset of >200 m, and numerous other parallel faults within the Virgin River Shear zone. The project is drill ready with numerous prospective targets warranting follow up work.

The claims are in good standing for several years and there are no underlying royalties on the property except for a 2% NSR on one of the claims. Skyharbour also owns a 922 hectare claim adjacent to South Dufferin bringing the cumulative total to 13,204 hectares (32,628 acres) over ten claims.

Terms of the Agreement:

Skyharbour recently announced that it has entered into an option agreement with a private arm’s-length company, UraEx Resources Inc. whereby the UraEx may acquire up to a 100% interest in the South Dufferin and Bolt Uranium Projects (collectively, the “Property”). The Property consists of a total of twelve (12) mineral claims totalling approximately 18,000 hectares located in the Athabasca Basin, Northern Saskatchewan. UraEx can earn an initial 51% in the Property through CAD $4,600,000 in combined project consideration and up to 100% through $9,800,000 in combined project consideration consisting of cash and share payments as well as exploration expenditures over a five-year period.

Pursuant to the Agreement, UraEx may acquire an initial 51% interest in the Property by (i) issuing common shares in the capital of the Optionee (“Shares”) having an aggregate value of CAD $1,150,000; (ii) making aggregate cash payments of CAD $450,000; and (iii) incurring an aggregate of CAD $3,000,000 in exploration expenditures on the Property over a three-year period.

Schedule to earn an initial 51% interest:

(1)  Deemed pricing of Shares is CAD $0.20
(2) The first anniversary expenditure date is one year after the first permit is granted  
(3) Deemed pricing of Shares is based on the five (5) day volume weighted average price on a Canadian stock exchange (“Deemed Price”) or the last sale price, if not listed on a stock exchange at the time of issuance

Once UraEx has earned an initial 51% interest in the Property, they may acquire an additional 24% interest in the Property by (i) issuing Shares having a value of CAD $500,000 at the Deemed Price on or before the fourth anniversary date, (ii) making a cash payment of CAD $200,000 to Skyharbour and (iii) completing an additional CAD $1,500,000 of exploration expenditures on the Property. If the Optionee does not elect to acquire the additional 24% interest, a joint venture will be formed with Skyharbour holding a 49% participating interest and the Optionee 51%, respectfully.

Once the Optionee has earned a 75% interest in the Property, they may acquire the remaining 25% interest in the Property by (i) issuing Shares having a value of CAD $2,000,000 at the Deemed Price on the fifth anniversary date, and (ii) making a cash payment of CAD $1,000,000 to Skyharbour. If the Optionee does not elect to acquire the remaining 25% interest, a joint venture will be formed with Skyharbour holding a 25% participating interest and the Optionee 75%, respectfully.

There are no royalties on the claims except for a 2% NSR on one of the claims at the South Dufferin Project. UraEx will retain operatorship during the earn-in and thereafter once an interest has been earned.

UraEx shall list its Shares on a stock exchange recognized by a Canadian Securities Commission  on or before the date that is twelve (12) months from the date of the Agreement,  failing which a penalty of CAD $5,000 shall be payable in cash to Skyharbour for every month that the Optionee fails to have listed its Shares for the first six months following the due date,  which increases to $10,000 each month for the following six months, and which increases to $20,000 each month thereafter until listed on the stock exchange.