Tower Property

The Tower Property hosts the Tower Deposit, a polymetallic copper (zinc-gold-silver)-rich volcanogenic massive sulphide (VMS) deposit. The Tower Property is in the Flin Flon-Snow Lake district of west central Manitoba, Canada approximately 500 road-km north-northwest of the City of Winnipeg and 50km southwest of the Town of Snow Lake.

Geology

The Tower Deposit is defined as a remobilized, single, steeply dipping, high-grade, VMS lens that is located immediately below an approximate 100 m thick layer of Paleozoic limestone cover. The Tower Deposit consists of stringers and massive sulphide lenses of chalcopyrite, pyrite, pyrrhotite and sphalerite. Drilling has intersected the Tower Deposit and additional mineralization over a strike length of approximately 1,000 m and to a vertical depth from surface to approximately 750 m. The Tower Deposit remains open at depth and partially to the south. The Tower Deposit averages 2.03 m in width.

Mineral Resoure Estimate

The deposit is associated with a 12 km long copper corridor. The property has potential expansion opportunities with the present resource and additional nearby anomalies. The Tower property has an NI 43-101 Mineral Resource Estimate (February 2022) in the table below.

Updated Tower Mineral Resource Estimate at $80 insitu cut-off
Classification	Tonnes ('000t)	Cu (%)	Zn (%)	Au (gpt)	Ag (gpt)	CuEq (%)	CuEq (Mlbs)
Indicated	1,711	3.28	1.04	0.70	16.5	4.22	159
Inferred	499	1.74	1.16	0.20	8.4	2.13	23

Refer to Global Resource Table for additional disclosures

Metallurgical Testing

On February 28, 2020 the Company announced the results of metallurigcal test work completed on the Tower, Rail and Talbot deposits (see PR here).

Highlights of the metallurgical testing are as follows :

Copper recoveries ranging from 91.2% - 94.4%;
Copper concentrate grade of 28.2%-31.3%;
Low zinc contamination on copper concentrates (0.3%-1%); and
Potential ability to produce Zinc concentrate of >50%Zn.

Preliminary Economic Assessment

On February 1, 2022 the Company released an N.I. 43-101 Preliminary Econommic Assessment ("PEA"), combining the Tower and Rail Properties (see PR here). The technical report will be filed within 45 days of the Company's announcement of the highlights.

Highlights of the PEA results are as follows:

After tax NPV8 of $128.6 million and an IRR of 67%;
Initial capital of $81.0 million;
Near term production possible with a 16-month construction period;
Initial capital paid back within 12 months of Commercial Production; and
9.5 year life of mine, with opportunities for mine life expansion.

¹ Base case economics price assumptions: Copper price US$3.76/lb, zinc price US$1.25/lb, gold price US$1,828/oz, silver price US$24.64/oz and USD:CAD exchange rate of .78

Projects

Tower Property