Pegasus Resources Inc. retained Dahrouge Geological Consulting USA Ltd. to complete a preliminary geological model based on detailed geological mapping and sampling completed on the Company's Energyands project located in Utah in First Quarter 2024. The outcome of the ground program provided a detailed geological map inclusive of lithologies, geological structure, mineralization style and controls, along with confirmation of paleochannel structures controlling the uranium and vanadium mineralization present on the Property. Dahrouge used this collected data in conjunction with the 2015 Utah Geological Survey regional map and stratigraphic column (Doelling et al., 2015) as a reference framework to build a preliminary geological model to support Pegasus' permitting efforts for the planned upcoming drill program in 2024.

The generation of the geological model was a crucial step in understanding the Property's geology and mineralization. This preliminary geological model was then used as a basis to define drill targets for the planned drill program and support and submittal of a Notice of Intent to the Bureau of Land Management ("BLM") Price, Utah Field Office. As part of the Notice of Intent submittal, all surface disturbances (access roads, drill pads, etc.) must be defined and presented to the BLM.

During the generation of the geological model and a Notice of Intent filing, Pegasus was provided with historical drilling data completed on the Property in 1975. This data was inclusive of a drillhole location map, geological logs, downhole geophysical surveys (presented in counts per minute "CPM") and interval analytical values for uranium and vanadium from eleven (11) drillholes. Dahrouge completed a data compilation and review of the geological logs and drilling location map to evaluate their consistency to what was observed in the field during the mapping campaign.

The drillhole map was then georeferenced based on available data, such asography and state plain section corner, to determine relative historical drillhole locations. The historical drillholes have been overlain on the preliminary geological model to evaluate consistency of the historical logs to the detailed mapping completed during First Quarter 2024. In reviewing the historical drillhole data and geologic interpretations, Dahrouge surmised that the historic drill program was following a trend that was interpreted as paleochannel hosting mineralization.

This trendmatches the structural measurements and mineralization trend hypothesis from Dahrouge's recent mapping program, helping to target possible mineral-hosting paleochannel extending throughout the Property. This historic data provides key geological information and when combined with data collected from surface mapping and sampling, guides the generation of the preliminary geological model and drillhole targeting.