News release re NPI with Metallica Metals...May 3, 2021 <br /> 3. News Release <br /> The news release was issued on May 3, 2021 through BayStreet and Stockwatch and filed on SEDAR <br /> on May 3, 2021. <br /> 4. Summary of Material Change <br /> The Company announced that it entered into an agreement dated May 3, 2021 (the “Agreement”) <br /> with Metallica Metals Corp. (“Metallica”), pursuant to which Metallica agreed to purchase the <br /> Company’s 50% net profit interest (“NPI”) on gross cash income from the MAX Mine and Mill <br /> Project. The Company was previously granted the NPI by Metallica (formerly Cameo Industries <br /> Corp.) pursuant to a share purchase agreement dated January 11, 2019, as amended (the “Share <br /> Purchase Agreement”). <br /> As consideration for the purchase of the NPI, Metallica, on the date of closing (the “Closing Date”), <br /> will: (a) pay the Company a cash payment of $425,000; and (b) issue an aggregate of 1,000,000 <br /> common shares in the capital of Metallica (each, a “Metallica Share”), with such Metallica Shares: (i) <br /> to be priced at a 30-day volume-weighted average price for the Metallica Share on the Canadian <br /> Securities Exchange (“CSE”) prior to the Closing Date, subject to the minimum price per share <br /> allowable under the policies of the CSE; and (ii) to be subject to a four month hold period in <br /> accordance with applicable securities laws. <br /> Closing of the NPI purchase is subject to the Company obtaining such required approvals from the <br /> NEX Board of the TSX Venture Exchange for the transaction, and Metallica completing and filing all <br /> necessary notices and disclosure filings as required by the policies of the CSE for the transaction.