Metal Energy Corp. and Mistango River Resources Inc. jointly announced that they have closed the previously announced exploration option transaction pursuant to an option agreement (the "Option Agreement") dated October 28, 2022. Pursuant to the Option Agreement, Mistango has acquired from
Metal Energy a 15% interest (except the NSR as defined below) (the "Interest") in Metal Energy's Manibridge project (the "Manibridge Project"), consisting of 19 mineral claims encompassing approximately 4,368 hectares, located in the province of Manitoba, approximately 20 kilometers southwest of Wabowden, Manitoba. Pursuant to the Option Agreement, Mistango has carried out an aggregate of $1,500,000 in work obligations to
enable the carrying out of exploration work on the Manibridge Project (the "Work Obligations"). The Work Obligations were incurred primarily through third-party contractors and for drilling, drill-related work, geophysics, reports and sampling and all services in support thereof, and also included necessary maintenance and carrying costs including taxes or fees levied by the Province of Manitoba and its agencies and the local municipality (but
not sales taxes or taxes on income or profits) relating to the Manibridge Project. The completion of the Work Obligations on December 21, 2022 has resulted in the granting of the Interest to Mistango. The Mining Claims are subject to the following net smelter royalties ("NSRs"): (a) a 2% NSR on the Project of which the Metal Energy has the right to buy back half (50% of the aforementioned two percent thereof), at a price of $1,000,000 prior to the expiry of one year after the start of commercial production; and (b) a one percent NSR on claims P1271F and P1262F and a 2% NSR on the other 17 claims of the Project.