American Eagle Gold - Discussion on NAK25-78

0:03 Hello everyone and thank you for joining us today for this live American Eagle Gold market update. Today we're joined by Anthony Moreau and Neil Prowse to hear their commentary on today's press release highlighting NAC 2578, which intersected 802m of 0.71% copper equivalent from surface, including 375 meters of 1.01% copper equivalent beginning 211 meters downhole. If you have questions for them, please submit them using the chat box which can be found on the bottom right corner of your screen. Also, please note this event is being recorded and will be made available shortly after we conclude. Gentlemen, congratulations on the hit. Anthony, you brought these results to market and called this a banger in your interview with Neil in the press release. Now that you've had time to digest NAC 2578, what makes this whole particularly significant in the NAC story?

0:54 What should investors take away from these results?

0:58 Yeah, thanks a lot, Kylan, for everyone attending. What's particularly interesting about this hole is just it's the grade, it's a continuity from top to bottom. There's no significant high-grade section that's smearing everything. It's very consistent around 1% for a huge interval, which is very important. It followed up the hole that we had in 2017. I think a lot of investors are asking, is that for real? This thing drilled South-South-East and it shows how wide this section is. We are starting to really understand the geometry. And it's just, I think, showing investors the light at the end of the tunnel that this is the potential start of a mine someday. So that's why it's significant and shows this area, this zone, it continues top to bottom. So when we hit 48, for example, there was high grade at depth. And what we wanna show people here is that thing, this thing all holds together in a singular forward-looking statements or body.

2:01 You know, From a company perspective, why it's really important is that we believe the tonnage that we have around this South Zone is significant. It turns this mine from a potential 500Mt deposit forward-looking statement to something that's multi-billion tonnes. And right now with the market ripping the way it is, look at American Eagle. We went from 2 cents to a dollar and not a great market. And there's a lot of other things moving that we think are inferior to us, but people are kind of pigeonholed in their own plays. And I think what this does, this high grade, it brings a lot of attention to American Eagle Gold. And we're not just fighting for eyeballs, we're fighting for time, which is the most valuable commodity. And this grade, this hole that we hit allows people to spend instead of 5 seconds on American Eagle Gold, half an hour. And they come for the grade and they stay for everything else that's all around there. So a lot of people look at all of our previous holes. I think that's why you're seeing the buying on the market right now. I think people are seeing this as a potential to be a quote-unquote tier 1 deposit someday. We have a lot of work but NAC is for real and to bring a lot of attention away from some of these fly-by-night stories to NAC I think is here to stay. So as a long answer That's why 78 really is important.

3:18 No, great. Great. Neil, I want to bring you into the conversation. 78 gave you 802 meters from surface with remarkable continuity. Can you walk us through what the geology is telling you? What are the key controls of this mineralization and how confident are you that this represents a coherent, predictable system rather than some isolated high-grade pods?

3:42 That's a really good question. Hole 78 was planned in conjunction with our much more advanced knowledge of the geology based on the 2024 and integrating the 2025 drilling into our modelling, as well as integrating the recently acquired structural data that we've been collecting throughout the 2025 season. So what we know from that is that in the South Zone there is a significant population of veining associated with higher grade intervals that is dipping fairly steeply to the northwest. And so 78 was collared within our known zone of favorable ethology, those coarser sandstones and conglomerates, which people following the story know is a really favorable host for the disseminated vein-hosted mineralization we see down deep in the South Zone, and then oriented shallowly to the Southeast.

4:38 And what this does is it gives us our best chance at intersecting this now better understood vein set at a more perpendicular orientation, certainly a more

4:58 perpendicular orientation than 17 and 31 we're drilling. And as validating our work, it resulted in the best hole to date at NAC. So we hit the veins at a much better orientation core axis. It shows that the system is not drilling down a few vein sets. This is drilling across a much larger vein set. And what it does is it links very strong mineralization in between our more discrete drill fences, our 17 or 31 drill fence to the north and our 41, 46 drill fence down to the south. And it shows, yeah, remarkable continuity of mineralization between this. And knowing this, I think there's room to expand this high-grade as well. It's definitely a more isolated high-grade area within the South Zone, but we've shown that this is a big zone, right? This is many hundreds of meters by hundreds of meters.

5:51 And it's open to expansion. So yeah, I think that the high grade here, just showing that continuity and basing it on good solid geological data, It's been really rewarding for the team and it's good to see the market reacting as well. It's been a great haul. Now, you mentioned that drilling southeast gave you optimal intersections through Northeast, Southwest trending veins. How predictable is this vein orientation across the broader South zone? Does this structural understanding give you a search image for targeting similar zones in areas like zone 59 or the Northern extensions?

6:31 Yeah, I mean, the structural orientation and the orientation of the vein sets is actually remarkably consistent across the property, irrespective of lithology. So there's a very significant population that dips to the northwest and striking similar. And there's a significant population that dips to the northwest and striking similar. And there's a significant population that dips to the southeast.

6:56 There's also a geologic control, a lithologic control to the best host outside the porphyry stock. And so at NAC we're in a bit of a battle between what's the most favourable orientation for drilling across stratigraphy versus what's the most favourable orientation for drilling across veining. And they're almost directly opposite. So your best favourable vein orientation is often drilling down strike of the bedding. And depending on how steep you are in that hole down strike and down dip, which is not ideal. So what we've shown is, if we know we're in the favour of geological horizon, drilling the veining at this orientation is great, but we do have a really good compromise at drilling a more westerly orientation actually.

7:48 And we've shown that this has been very productive.

7:52 Hole 60, which was released earlier this season, hole 56, which was released earlier this season, hole 53. These were all westerly oriented holes. Good favorable orientation to veining, but also a pretty favorable orientation to drilling, not necessarily down stratigraphy, but across stratigraphy. So yeah, we can apply the Southwestern orientation to further expand the South Stone strategically, but drilling westerly across the property now is our best bet to properly, as best we can, as efficiently as we can, expand the zones of great continuity and connect some of the stuff we have at surface to depth. I want to take an opportunity to remind people to submit questions in the chat. I see one here. It's similar to the question I had. I'm going to pass it over to you, Anthony, but are you able to share more information about Holt 80 referenced in the news release? I'll just add on with that.

8:51 Given what you learned from 78, what's your confidence level on 80?

8:56 When can investors expect those results and what do you anticipate they'll tell you about the sell zone. Sorry, Anthony, you're on mute. Yeah, sorry about that. So, Seminate was a risky call because we didn't know, If you miss on that, you hurt the whole company. The fact that it hit that continuous stuff across the veins, for us, really made this South Zone for real, the high-grade. Like Neil said, it has the opportunity to extend. We thought we're going to drill 78, We're going to drill 80 at the same time. So 80 was drilled around 450-500m to the east, going south-south-west. And if there's a zone there, it was going to prove it out. So you've got 1 going north to southeast and north to southwest.

9:45 So we took a risk with both of them. Visually, they look really good, but I've been surprised before, good and bad for the visual. So we're feeling very confident about that hole coming through. But again, we got to wait till the assays are out to really know for sure. In terms of timing, and if 80 hits, like South Zones, that's really kind of, it puts a real bow on that zone. Again, using that information combined with 78 can really help us further expand it to where this thing goes in terms of the geometry and the geology. But in terms of timing, I've been burned before guessing so I would say 80 is going to be back at some point before PEDEC back. I think that's a safe thing to say.

10:30 Okay, so you've positioned the South Zone for an initial resource assessment. What are the critical milestones between now and delivering that maiden resource given this? And how many additional meters of drilling do you need to reach an appropriate confidence level? So I'll take that and I'll let Neil kind of follow up. So the big milestones to get the resource is just more drilling. We've got to figure out how big our drilling program is going to be next year. It's probably going to be very similar size to what it was this year, around 30,000m. How many of those metres are we going to allocate towards not just defining the resource that we think we have there, but expanding the current one, the current one we have back of the envelope in the South zone. So it's just resource delineation drilling. I would say back of the envelope, you're probably looking at about half to 2 thirds you're drilling probably towards figuring out that cell zone and not just where this is, also expanding it further east towards hole 2309 was drilled.

11:25 But it's just drilling, drilling, drilling. And the reason why we want to do a mineral resource, this property is amazing. And every time we think we found the bounds of the system, which would make it easier to do a resource because it'd be bookended. It's like whack-a-mole in a very positive way. We're just coming up with new surprises and we never really want to tell the market how small this resource could be. But I think where the market is right now, they want to kind of get an idea of how, at least an idea of what it can be. So we think it's big enough right now where if we came out with a resource, it would be big enough for any miner to come in and mine it economically. But at the same time, we want to allocate resources to drill where we could turn this thing from a 20-year mine to something that lasts multi-generation, 60 to 80 years. And where that comes in is the stuff that's in the Porphyry stock, in the North zone where 35 and 38 are. So we're not necessarily going to drill those areas to come up with a resource, but enough that people can back of the envelope, including our partners, TECASO32, figure out, you know, can this string together?

12:31 And we think with the 30,000 metres, we get close to that, and we're going to put out the resource at some point in Q2, hopefully 2027. And Neil, you fill in where I dropped there, what kind of drilling we have to do to come up with that resource. No, that's a good, succinct summary of the plan. I think, yeah, we need to get all the assays back. We need to model everything up and then design a program

12:58 to ensure that when we do put a resource out, it's the strongest possible given the data. I think an off-season of work to properly interpret will give us our best chance at both infilling and expanding the known zones. And like I said, with that westerly oriented drilling, stepping that south zone further to the north as well. So it does properly link up with the, actually pretty stellar mineralization we have in the north too. So we know there is a good connection between them, a marginal with the porphyry stock. We've had some good indication this season that the under-rolled stock for Lute to the East actually hosts some pretty decent grade and shallowly. So you're bringing that from surface to depth with shorter holes at a shallow inclination, collar to the east, stepping north from the south zone and just linking everything and coming up with 1

13:54 good big-sized resource model. That's the goal. That'll take all of our meters for 2026. Thanks for the logical answers, gentlemen, but give us the big picture. How many meters are you planning for 2026 exactly? What's the budget? What are the 2 to 3 most important questions you need to answer. So what cost of capital, right? So we're doing all skid rig next year. We're gonna be building a partnership, extend our OLTC, so it's licensed to cut down trees, and we're gonna partner with a logger and they're gonna do some strip logging. So allow us to access any color that we want on the property and why that's important as opposed to heli drilling. When you're doing heli drilling, you're kind of handcuffed by the, you know, the pads you build way ahead of time. And when you're drilling, you're kind of making plans on the fly. And sometimes what you think you want to drill in August is different in October. And once you have a helipad built, you can only kind of change the azimuth of your hole about 15 degrees.

14:58 So by doing this to get access, We can make sure 100% of our holes are going into the best location based on our previous drill holes that we drilled in that season. So that's really important, but I think right now, we're looking at about 30,000 meters, but if our stock is going where I think it can go and our target is $3-$4. Because we have skid access and it's a better budget, and now that we have the partnership with the logging company, there's a real reason to think that into 2027 we can continue drilling. Because if we think we have the Tiger by the tail and we want to build out this resource, there's no reason to stop. The reason why we stopped this year, a lot of our drilling was in areas that we did not know. And it took us 4-years to find the super high-grade, jewel box in the South.

15:45 So we want to step back and make sure our cost capital, the places that we put the meters in the ground are the most ideal. And it's just going to take a couple of months of modelling. And when you look at some of our historical information, the stuff that we hit in 78, it brings a lot of the hits that we hit in 2023 and 2024 into play. The highlight hole 2216,

16:04 it hit multiple metres of around over 1%. So while we thought that was isolated previously, it actually might combine and connect with some of the zones that we recently hit with 78. So this modelling is not just going to put together the holes we put this year, but it's combining with all of our previous 3 years before that. So back the envelope 30,000m, but we could do 50,000-60,000m. But we're going to see how it goes. And one thing I do know for sure, we'll be drilling at the very latest June 1st and not stop until the end of December. So 802m at 0.71% Copper equivalent from surface. Spectacular width, but how much is below 1% Copper equivalent? Walk us through your thinking on cut-off grades and economics. At what Copper equivalent threshold does this become economically compelling? And how does the South Zone potentially pay off capital to unlock the broader system?

17:02 It all depends on access. Every mine's economics are different. Obviously, it's too early to say what would be an economic cut-off here. We're well in advance of a PEA or an economic assessment.

17:22 A sizeable portion of the hole though was above 1%. So that 375m stretch was very consistent. In terms of raw intervals, there were about as many above 1% equivalent as below 1% equivalent.

17:41 And unlike some of the other holes where there is some really, really punctuated high-grade, I think our raw highest percent through that zone was about 3% Copper equivalent. So it was consistent, which is really good from a mining perspective.

18:00 In terms of starter location, what this hole doesn't highlight is the really high-grade Gold zone that we have near surface. We're hole 80 collar and about 400m to the east of the hole 70 collar. That is a very compelling target for an initial startup and that's gonna impact the economics as well. So what Tony will tell you what NAC has going for it, you can drive right up onto the property. This is not in the mountains. You're not having to clear 30, 40 feet of snow in the winters. And this isn't a coastal climate, it's interior BC. It's a lot easier to get infrastructure to the property to support that, right? And that affects the economics as well.

18:50 So there's a lot more factors than just grade alone here, but even still, like these grades hold together quite well. There's a pretty good even mix between Copper and Gold in that overall equivalent calculation. So it's hedged on fluctuations in both metal prices too. So it's early stage, right? It's too early to say conclusively, but It's looking pretty positive. Anthony, any further comments? No, look, we just want people to, you know, remember American Eagle Gold, was there. We want to fight for people's time and their money. And, we just say, do your research. I think what people did today is it made them pay attention. 78 made people pay attention to American Eagle.

19:37 And I think it got them to the story. But I think what state makes people stay to the story is everything else all around it, the tonnage, the infrastructure, etc. I think we were undervalued for a long time. I still think we are, but it was a good time for good long-term shareholders to buy into the property. And those are sticky shareholders, which I think is really good. But unlike a lot of other BC companies, we got a lot more catalysts to come, a lot more news releases to come out. So we'll be having news all the way until PDAC. And I had a hat that was going to give at PDAC. I see there's a question where can we get the hat. So come see me at PDAC, they'll give you a hat. So we're going to make a hat called, let's make American Eagle Gold great again. But with what's happening on, going on with Trump right now, and given that American Eagle Gold had that big jump, I don't think we'll do those hats but we're just going to make American Eagle Gold better and better. And I think some of these holes are going to come out in the coming weeks are going to bring more eyes to the story. But I just say, do your research.

20:34 The ticker is AE on the TSX Venture and we're here to stay. There's one more question. Neil mentioned different factors for economics. One was submitted pre-registration here. You're assuming 80% recoveries as a placeholder across all metals, given the Boronite, Chalcopyrite, Molybdenum and Clay alteration zones you're seeing. When do you start metallurgical test work? What are the key recovery and processing risks investors should monitor? We're going to be doing some targeted metallurgy holes, exclusive metallurgy holes this year where we drill wide diameter core through the different mineralization styles. It's a tough one to say because we do have a variety of mineralization styles throughout the broader zone.

21:22 Obviously, the recovery in the economics on the really, really boronite-rich stuff is going to be better than the stuff we get on the fringes of the system where there's some more pyrite involved. There was some preliminary metallurgy done. I believe that is in the 2018 assessment report that was done by previous operators on the property, but it was just through the South Zone and it was just through the high grade part. And so, I don't think we can in good faith take that as representative of the system as a whole. In 2026, in conjunction with working towards a resource, we'll have some metallurgy holes drilled that are targeted specifically to address the variety and mineralization styles.

22:09 Gentlemen, thank you so much for taking the time out of your day to update the market. Congratulations on the successful hit. Everyone, thank you for joining us. If you came in a little late, this is being recorded and will be made available shortly after we conclude here. Any closing remarks, gentlemen, before we sign off here? I think we covered it. If you've got any questions, follow up with Kyle at 6 and happy to set up a meeting, happy to talk to any investors or potential investors. And yeah, we love NACO, NACO EEE. And thanks a lot, Neil and your team. Yeah, thanks, buddy. Yeah, thanks, Kyle. You