Royalty Assets

In June of 2022 Hawkeye closed upon an Asset Purchase Agreement for the sale of its McBride, Railway, Boomerang and Todagin properties in the BC Golden Triangle to Newcrest Red Chris Mining Ltd. (“Newcrest”), a wholly-owned subsidiary of Newcrest Mining Limited (Australian Stock Exchange: NCM, Toronto Stock Exchange: NCM, Papua New Guinea Exchange: NCM), for total consideration of CAD$1,400,000 for all four properties and a 2% NSR per property subject to buy-down provisons described below.

Royaltor Property Location Comodities Net Smelter Royalty (NSR) Buy-Down Terms
Newcrest McBride British Coumbia
Golden Triangle		 Copper, Gold, Silver, Molybdenum 2% Newcrest may purchase the first 1% of the NSR on the McBride property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the McBride property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Newcrest Railway British Coumbia
Golden Triangle		 Gold, Copper, Silver, Platinum 2% Newcrest may purchase the first 1% of the NSR on the Railway property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the Railway property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Newcrest Boomerang British Coumbia
Golden Triangle		 Copper, Gold, Silver, Molybdenum 2% Newcrest may purchase the first 1% of the NSR on the Boomerang property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the Boomerang property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Newcrest Todagin British Coumbia
Golden Triangle		 Copper, Silver, Zinc 2% Newcrest may purchase the first 1% of the NSR on the Todagin property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the Todagin property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Royaltor Newcrest
Property McBride
Location British Coumbia Golden Triangle
Comodities Copper, Gold, Silver, Molybdenum
Net Smelter Royalty (NSR) 2%
Buy-Down Terms Newcrest may purchase the first 1% of the NSR on the McBride property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the McBride property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Royaltor Newcrest
Property Railway
Location British Coumbia Golden Triangle
Comodities Gold, Copper, Silver, Platinum
Net Smelter Royalty (NSR) 2%
Buy-Down Terms Newcrest may purchase the first 1% of the NSR on the Railway property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the Railway property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Royaltor Newcrest
Property Boomerang
Location British Coumbia Golden Triangle
Comodities Copper, Gold, Silver, Molybdenum
Net Smelter Royalty (NSR) 2%
Buy-Down Terms Newcrest may purchase the first 1% of the NSR on the Boomerang property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the Boomerang property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.
Royaltor Newcrest
Property Todagin
Location British Coumbia Golden Triangle
Comodities Copper, Silver, Zinc
Net Smelter Royalty (NSR) 2%
Buy-Down Terms Newcrest may purchase the first 1% of the NSR on the Todagin property for cash consideration of CAD$1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on the Property by paying Hawkeye an additional CAD$1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in the Todagin property.  Newcrest’s entitlement to purchase these portions of the NSR will terminate sixty (60) days from the Commencement of Construction (as that term is defined in the royalty agreement with Newcrest) of a mine on the Property.  The NSR is also subject to a right of first refusal in favour of Newcrest.