Bolt

Highlights:

• The Bolt Project, covering 4,726 hectares, is located about 32 km southwest of Cameco’s Key Lake Operation and approximately 15 km from the southern rim of the Athabasca Basin
• Historical exploration includes ground and airborne surveys, lake sediment and water sampling, and drilling, with drill holes showing kaolinization, chloritization, structural disruption, and various metasedimentary rocks
• Modern exploration from 2008 to 2018 identified multiple EM conductors, magnetic lows, and faults, leading to drill-ready targets with high potential for basement-hosted uranium and U-Th-REE mineralization
• The Bolt Project has not seen exploration since 2018, but promising targets and high mineralization potential remain
• UraEx Resources signed an Agreement in October 2024, with terms to earn up to 100% of the Bolt and South Dufferin Projects through share issuance, cash payments, and exploration expenditures over a five-year period

Project Summary:

The Bolt Project consists of two contiguous claims 100% owned by Skyharbour Resources Ltd. totalling 4,726 hectares and is located approximately 7 km west of the Highway 914 and about 32 km southwest of Cameco’s Key Lake Operation (which produced 209.8 million pounds of U₃O₈ at an average grade of 2.32% U₃O₈ from 2 deposits, where ore from the McArthur River mine is currently processed). 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.

The Bolt Project lies approximately 15 km from the southern rim of the Athabasca Basin, and is within the Eastern Mudjatik Domain of the Hearne Craton. Geological mapping conducted by the Saskatchewan Geological Survey in the 1970’s and 1980’s of the area determined the project is predominantly underlain by a south-trending, anastomosing package of amphibole gneisses, surrounded by regional scale felsic gneisses, which underwent granulite/upper amphibolite grade metamorphism. An ovoid area of banded iron formation was also encountered in the middle of the amphibole gneisses, which is bounded and intersected by several EM conductors. Given the vintage and scale of the historical geological mapping, it is likely that the geology of the area is more complex than the historical mapping suggests.

The Bolt Project has been subject to several exploration programs since 1969.  The earliest work, taking place between 1969 and 1979, included ground and airborne EM, radiometrics, and gravity surveys, as well as lake sediment and water sampling, soil sampling, prospecting, and boulder train mapping by various operators, including Pan Ocean Oil Ltd., Canadian Southern Petroleum, Athabasca Columbia Mining, Yukon Geothermal, SAMCAM, and Darling Hydrocarbons. A single drill program (6 DDH, 5 of which are on the Bolt property: CL-1 through CL-5) was conducted by Pan Ocean Oil in 1978 to test the fertility of historic EM conductors. Four of the drillholes from this program (DDH-CL-1, -2, -3, and -6) displayed variable kaolinization and chloritization, carbonate veinlets, and intervals of structural disruption and local core loss in what was logged as granite/arkosic/augen gneiss and “pseudopegmatite”. The other two holes on the property, CL-4 and CL-5, intersected a variety of metasedimentary rocks, including pelites/pelitic gneisses, marble, and iron formation, amphibolites, and minor granites, with significant quartz (i.e. pervasive silicification & veining) alteration and sulfides found intermittently throughout both holes.  After 1979, the project remained unexplored for several decades.

Work on the Bolt Project resumed in 2008, with Durama Resources (on behalf of Majesta Resources and Kirrin Resources) completing several soil, outcrop, lake sediment, and soil-gas sampling programs, airborne geophysics (TEMPEST and VTEM surveys), and ground geophysics (total field and vertical gradient magnetic and VLF-EM surveys) programs in the period from 2008 to 2018. The initial work consisted of ground geochemical sampling of several historic airborne geophysical anomalies, which identified zones of anomalous uranium in several areas. This was followed by extensive modern airborne magnetic and EM surveys across several of Majesta/Kirrin’s properties, including the Bolt Project. Airborne geophysics identified magnetic lows and multiple east-west and northeast-southwest trending EM conductors across the property, as well as several possible north-south and east-west trending faults. Following up on the zones of interest detected by the airborne surveys, several ground geophysical grids were developed on Majesta/Kirrin’s properties. Two grids were established on the Bolt Project, the Lav Creek and CL-5 grids, which were subject to VLF-EM, total field magnetics, and vertical gradient magnetic surveys to further delineate the various airborne EM conductors and magnetics anomalies.

Combining the results of the modern geophysical and geochemical surveys allowed for identification of several promising drill targets on the property, including near the historic drill holes containing extensive kaolinite and chlorite alteration. These drill targets have yet to be tested, as despite the high prospectivity for basement-hosted unconformity-related uranium mineralization, the Bolt Project has not seen any exploration since 2018 and was eventually allowed to lapse. Exploration on the Bolt Property also indicated the potential to host pegmatite- and granite-hosted U-Th-REE mineralization, further enhancing the project’s prospectivity.

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.