American Eagle Gold Update

0:03 So good morning, good afternoon, or good evening, depending on where in the world you're signing in from today. I've got with me today Tony Moreau, CEO of American Equal Gold, and rock star Neil Prowse, the project geologist. Neil, Anthony, how are you today? I'm good, Thanks for having me, Romeo. Thanks for everyone for joining. Awesome. I know there is quite a crowd today, so do appreciate your time. This is an interactive event, as always. So there's a chat button at the bottom. I know Tony and Neil are particularly transparent, so please do ask any questions that you'd like throughout today's event. We'll try to get to as many as we can. As usual, if for whatever reason I don't get to it, I'll still send

0:34 the transcript to the team so they can get back to you afterwards, but I believe we'll be able to get to every question today, so please do put in whatever you'd like into that chat box. The other thing you can do is there's a request meeting button at the bottom. If you'd like to meet with Tony or the American Eagle team, please press that request making button and I'll try to connect you guys afterwards. The only other piece of housekeeping is this is being recorded and it'll be available for replay pretty early in the afternoon. It's probably 02:00 Eastern. It'll be on Six's YouTube page, but also the same link that you're here right now for. But here's how today's going to work. Tony and Neil have a quick presentation that they're going to run through, and I've got some questions based on it, but then we'll open it up to questions from the audience, including the ones that came in over email in advance. But enough out of me, let's get into the meat and potatoes. Tony, I'll throw it to you for our presentation. That means potatoes, rocks and drills.

1:22 So, look, thanks for everyone for joining. Obviously, there's been some news recently. We're about to start one of the biggest drill programs in the province in the next couple of weeks. And there's also a lot of people that are probably joining here learning about American Eagle for the first time. So I'm gonna give a brief on American Eagle, about our plans, and then I'll take some questions. So thank you for everyone's patience, and we'll try and get through this presentation in 15 or 20 minutes. So bear with me, share screen. There's our properties, beautiful, clear cut, not dealing with crazy mountains, et cetera. But yeah, that's a big thing about our property. If you look at a lot of other properties in BC, you're dealing with mountains, water, et cetera. We don't have that and it's great because the cost to build this thing will be a fraction of what it would cost a lot of other giant copper, gold, porphyry. So that's a huge advantage. When companies look at acquiring another one or building, they always look, what's the cost to pay back the capital?

2:18 I believe our cost to pay back our capital will be a lot less than a lot of other competing copper gold porphyry projects. So look, forward-looking statements, take it with a grain of salt. There's a lot of forward-looking statements. Our stuff has been QP'd. We just wanna show you that ahead of time. So brief intro on NAC. NAC's a copper gold porphyry project. It's located about 85 kilometers from Smithers, BC. Smithers has around 10,000 people. We get access to power, to people, to resources. It's a small little hub for the mining community in central BC. And right next to our project, there's the Bell and Graynell mine that ran for 30 years. Now it's on care and maintenance with Glencore, previously run by Niranda. And we're right next to, 7 kilometers away from the Morrison Project. We have a lot of the stuff that you need. The perfect ingredients for a really great recipe for a great meal, so to speak. So we have grade, we have a lot of areas with high grade centers.

3:17 We still don't believe that we have found them all. There's remains a lot of upside. The other thing is we have scale. Bigger is almost always better in the mining industry, but the fact that we have scale and grade is a huge plus to go along with our location, what we expect to be a cheaper build, initial build. Obviously we're fully financed. We have one of the best balance sheets in the entire junior mining industry. About a quarter of our mark cap is valued with cash. We have over $55 million in cash. And if you look at the cash that we have, our GNA is paid for by the interest that we get from the cash in the bank, which means the cash that we have, it all goes in the ground. It goes to adding shareholder value. And if you look at the last 4 years, we've been able to move from 3 and a half cents to $1.20.

4:05 And that's having great geology, a great team and delivering on results. And again, putting those meters in the ground, putting your balance sheet to work. So that's what our team has been able to do very well. And we think this is just the beginning. We're about to start off a 50,000 meter plus program that's approximately the amount of meterage that we have drilled over the last 4 years to get to the valuation where we are. So the question is what are we going to do with more information just as much meterage etc. I think our past results can speak for themselves and I expect them to repeat forward-looking statement. So again, talking about the drill plan, 50,000 plus meters of drilling, over 80 different drill targets. We're starting with 3 rigs and we're hopefully hoping to transition and add an extra rig somewhat in the season We're gonna stop for the Christmas break and then we're gonna start again. We had 2 big goals Recently that we were able to fulfill 1 We wanted to bring in another investor someone that other investors look at and say, you know, I'll take a look at American Eagle Gold and sit for 5 seconds, 5 minutes and make that investment decision. The best person to do that, quite frankly, it's a Warren Buffett of mining, it's Eric Sprott. And Eric Sprott is now a 10% shareholder of American Eagle Gold That brings 3 big partners with American Eagle Gold. That is Eric Sprott, that is Cell32, and that is Tech. And it gives us a huge balance sheet and allows us to have fully funded programs well into 2028.

5:30 So we start drilling. In a couple of weeks, we've already started work there recently, and we're just building infrastructure. We're not doing helipad. We're doing everything skid rig. So what we thought is we could have started drilling this week and we thought, let's build the infrastructure. Let's make sure we're properly prepared and let's not stop drilling. And our second big goal that we had is one thing that's really killed us and most other Canadian exploration companies is having a 6 month off season with no catalyst. With no catalyst, people don't have any incentive to buy. So they go to South American projects where in the winter they have news. Now we'll be drilling for 12 months straight and having news for 12 months straight and then starting up our 2027 drill program. So, yeah, great investor, a lot of news to come. And we're hoping by the end of the season, starting in mid-2027, we can do an initial mineral resource estimate followed by a PEA.

6:23 So look, that money is gonna go to work and that's why you have cash in the bank, not to pay yourself, not to do marketing. It's put meterage in the ground and prove that this thing can be a mine in the current metal cycle. So right here on the left, you see that's our property. This is kind of the scale of our property. This is a zoomed in view. That blue area is all the mineralized rock that we have found. It all comes to surface. It goes to at least 800 meters in depth. Anything in blue, that's the moderate grade stuff. The red's where we identify higher grade zones being, and they're all getting bigger. This started off in 2022 as a very small area. It has got bigger the more that we drill, the more that we understand. The areas that's not surrounded by blue, because we quite frankly haven't drilled there. And on the right, you can kind of see a preliminary plan. I mentioned we're doing 80 plus different holes. Right here, you'll see about 25 to 30 different holes to start off our season and as you can see our main goal is to add scale string this all together show that it can become one big ore body one big open bit and meanwhile you know hit another goal which is to find those other high-grade zones. So the South right here, it's got a really, it's got a growing high-grade zone. And in the central area, you have another high-grade zone that we began to identify.

7:46 And look, just more drilling. I bet we're going to find more for looking statements, but we'll see what happens again. Bigger is almost always better in the mining business. We want to show this thing has massive scale. It's a multi-billion ton potential no different than Cisco metals.

8:03 So this is what brought, Eric's brought in. We got really high grade copper and gold starting from surface, big intersections in the cell zone. It just continues to get bigger. And these holes really do attract people. So 375 meters of over 1% closest to surface, over 600 meters of almost 0.8% copper equivalent from surface. And that attracts the investors like Eric Sprott, the majors, et cetera. Because not only do you have a lower capital for being in the great location that we are, but you have a center of gravity now where you have your initial mind plan to start that pays back that capital, which makes all the other moderate grade stuff all around flow of the pit and allows us to be a multi-generational asset. That's our goal.

8:51 So again, just kind of identifying these holes. If you saw one of them, most investors would be very excited. Look at all of them, 2580 to 2201, all wide intervals, 300 to 800 meters long, all starting very close to surface, all above 0.5% copper equivalent. Just absolutely amazing. And this zone is open to the east, it's open to the south, it's open all around, and it's definitely open to depth. So these are our partners. So we have South32, $20 billion Australian outfit, spin out from BHP, Tech Resources, the godfather base metal company in Canada, Eric Sprott, the don of discovery, godfather of gold. He's an investor and we're part of the org group. Org group owns around 7% of our company. So between these 4 companies, it's about 53% of our outstanding shares. These are good long-term shareholders that attract capital that don't sell their shares or hold on for the long term.

9:47 So that's really great to have. Yeah, no, appreciate it very much, Tony. Thanks for going through that presentation. I got some questions for you, if you don't mind, before we get into the ones that came in from the chat. So first I wanted to get to, and I know we've talked about this before, but I know there's some new people on the line. The latest results at ENAC are pretty eye-catching, especially those near-service intervals in the South Zone. So where do things stand going into the 2026 program and what are you most focused on testing this season?

10:13 Well, I'll give a kind of a high-level answer for that And then Neil can kind of jump in, but look, it's, I think we really have 3 things we want to do. It's to expand that center of gravity, the self zone, where you've seen all those nice flashy high grades is 1. And then the second big one is just to add scale, drill all over the property, places we haven't drilled before, and tie all this mineralization together. And kind of a third goal, which will kind of dovetail from the second is just find other high-grade areas which I think we'll find over 4 years and 50,000 meters of drilling we found 2 high-grade areas with the same amount of drilling. Hopefully we'll find more. And now, if you have additional comments, please feel free. Otherwise I'll jump in. Yeah, I mean, the initial focus here is going to be expansion, right? Working out from our known areas.

11:06 There's still a lot of ground to test, as Tony will say, and we have a number of indications that the high-grade centers we've hit may not be isolated. There's a lot of different phases of intrusives happening. There's several identical pulses of mineralization. And all of this comes together on what we know just on the western flank to show several high-grade subzones in a very, very broad mineralized envelope. And we see the same geological and geophysical signatures around the entirety of the porphyry stock. So, yeah, you know, in the lead up to That resource we were aiming to put out in 2027. You know, we, we don't want to start calculating that until we know the proper extent of everything. Right? So that's going to be the main focus here.

11:58 And And as well, we've got a lot of time and potentially a lot of drill rigs. There's still room to expand those high-grade zones too. So that's also a sub-focus. Great, thank you. Tony, this one's for you. I know you've got South32, Tech, and Eric Spratt all at the table as strategic investors, which is like the OJ legal team for mining investments, a serious lineup for a junior. How does having those names behind you shape the way that you're approaching exploration decisions and kind of longer term planning? Is it different than when

12:29 you were writing with that group? Yeah, good question. So I think first and foremost, having those names behind you they're only behind us cause they invested. So they gave us cash, they gave it at good prices. I would say dilution by not dilution cause you're getting money from investors that, you know, are long-term shareholders. But, you know, most importantly it increases your cost of capital, gives you a lot of money, and it gives you flexibility to take those big steps and those risks, which we started to do last year. So our plan this year is going to be a lot different than if we didn't have those investors and didn't have that money in the bank. And we're kind of going for gusto this year. We're gonna show some brinksmanship as my mentor friend, Steve Stewart always says. And we're gonna show the scale that quite frankly, tech and stuff there too wanna see.

13:18 In terms of Eric Sprott, I've spoken to him a few times and he said, listen, I invest in companies for 2 reasons. One is the geology, the ore body, potential ore body in our case, and seconds management. So he doesn't like to get involved and he says, you know, you guys got to where you are based on the management, keep on doing what you're doing. I don't like to get to interfere. Now tech and stuff there too, a little bit different texts, a little bit more hands off. They invested,

13:41 you know, when we were a lot smaller company, they've done well on their investment. They're obviously super busy with Anglo. And the one big feedback that they give us is they just, they said, you got the grade, we just wanna see this bigger. And South32 is kind of the same thing. They said the most important thing for us, just add scale and keep on adding it. And that's kind of how we're doing our drill program. We're speaking to our partners and they want us to add scale so the plan's getting developed that way. Now, South 32,

14:08 they did put a lot of money in. So I think they put in around 35 million if you combine the December 2024 financing with the recent one where they did the top up to match Sprott. So because they put 35 million in, they do have, they're a little bit louder in terms of what they want. They do have some investor rights that tech doesn't have. They're allowed to actually choose drill holes that go in the ground, which we think is great. If you got 80 drills, sure, cell 32 can decide a few of them. So, and they're also, their team working on this is pretty big. So they have a geophysicist, they have a bunch of geologists. We speak to them monthly, we keep them up to date. So they're very active, which we like. They're really good people and they're really smart people. And we forged a personal relationship with all of them along the way. Not to say tech isn't, we also like tech, but, you know, yeah.

14:55 If you got advice, doesn't mean you have to take it, we'll definitely listen to it. No, I appreciate that. This is somebody wrote this in over email. They want to know if you're cashed up for the year. Obviously we've already talked about that, but I do want to talk about the word chest for a second. Can I know you closed financing earlier this year with over 50 million in cash, no warrants attached? Love you could just talk us through why structure it that way and what the word just allows you to do that you couldn't before? Like what moves are you making this year? You couldn't without the money? Why structure it what way with no warrants with no warrants? That's right. Yeah. Okay, well, first of all, you know, some people would say, look, you guys had enough cash, wait till you go up and do a raise, which is a good point. But look, we'd like to always have enough cash in our bank so that we are financed for the following year, right? Right.

15:43 Because the last thing you want to do is finish off a really great drill program ending with great results. And then you have 2 days of upstock and then people just sell you off because they know you have to do a raise. Investors are very smart about that. So we knew we needed more money, and then we also knew that we wanted to do a 12-month program. So at the time we did the raise, I think we had around 25 million in the bank. This program's gonna cost us 2025. So we raised another 25 and now we have enough money in the bank to have 50,000 meter program this year, 50,000 meter program next year. And now bringing Eric Sprott in too, look, there's not many people we would have done the deal with pretty much besides him, but your price doesn't really end at the price that you sell to Eric Sprott at, which is usually what happens when you do a financing. If you do a financing, let's say a 50 cents stock usually goes down to 40, because what Eric did, people knew that is he's a smart guy. He invests in winners.

16:36 He's a long-term shareholder, but most importantly, it allows people all over the world to know about American Eagle gold that wouldn't have known about it. So that's why we did that financing in terms of the warrant.

16:46 I would never do a warrant if I don't have to do it. That just puts a bit of a ceiling on your stock. And what you see is 2 years or 3 years, wherever the agreement is, when the warrants are coming due, most people exercise their warrants. It's like it's like it's like high school students, first school projects usually do it the night before. Sure. Same with these investors with warrants. They wait till the month before, and then you see some overhang, and the stock gets killed. And then if you mix it with the life financing, so life financing is where you are able to sell the stock right away, that's absolute killer for your stock. And we did that in January, 2023, and I made a goal and said, we're not doing warrants again. So that's kind of why we don't do warrants. It creates overhang, and we like to do good, smart financing with big investors that people follow.

17:32 Awesome, I appreciate that thinking. I know the Knack South Zone keeps expanding and the intercepts

17:37 are getting wider and higher grade at depth, which is obviously I imagine exciting to you guys. At what point does the project start to feel like something that, let's be honest, demands a resource estimate. And is that on the near-term roadmap? So good question. All these different deposits, like snowflakes, they're all different. And the way that we kind of looked at it was, I think you do a resource, resource shows investors how small something is, right?

18:05 And we still hadn't really quite understood the size of this. And every year that we've drilled, and each year we've drilled as many meters as all the cumulative meters we've drilled before. And everywhere we step out, just shows this mineralization, This thing gets bigger and bigger. So why put a ceiling on the size of it? And look, I look at look at Filo. Filo didn't do an MRE. They sold no problem. The other one's Great Bear Gold project purchased by Kinross. They never did an MRE. It's quite frankly, that thing just kept on expanding and expanding. So I just don't think that we know enough about this deposit and how big it is to do an MRE on it. Now, after this year, I think we're going to be at that point. I think putting those 50,000 meters in the ground, although there could be expansion potential, there probably will be, I think it'll be big enough that investors are really going to take notice.

18:55 But in terms of getting someone to buy you someday, look, it's nice to have an MRE, but I guarantee you no major company's going to just trust the MRE by one of these technical consultants. They do their own in-house MREs, which is what South32 and TEC are doing right now, which is what we're basing or drilling off in the first place. Yeah, no, fair enough. I always like to step back and do crystal ball gazing and look at the macro picture for a second before we get to the audience questions. I know despite pullbacks, obviously that we've seen since January, gold and copper are still on what I would consider pretty serious runs. My question is, how does that macro backdrop factor into how you're thinking about pace, capital allocation and accelerating the timeline at NAC. Is the macro picture on your mind or is it just a steady as she goes?

19:42 It's always on your mind a little bit. Obviously it affects your stock price. You can see gold took a big dip today. So obviously our stock traded off a bit. But we couldn't be least worried about it as we are right now with the amount of cash that we have. We know things fluctuate. We know things change. We know investors are short sighted in terms of getting scared or greedy when the price does go up. So we look at things for the next 2 to 5 years. We think copper and gold are both going to be up significantly. We have a very high cost of capital based on the cash that we have. And look, we just want to fast forward things. So we had planned to drill 50,000 meters in the next 2 years. Now we're drilling it in the next 12 months. So that's one thing that changed with our recent financing. But I think we're still, you know, probably in the third inning of this of this bull cycle for both copper and gold. I don't think that there are 2 better metals to invest in long term.

20:35 Gold, with all this geopolitical instability, that's always going to be good for me. And then copper, It's electrifying the world. It's a new pipeline and people are just gonna need more and more of it. So maybe you'll see it go back to 5 or $4, but I think long-term, you know, it has a real chance to hit $10. When it's gonna do that, I don't know, but people thought it was crazy back in 2017 was gold was at 1350. And I said, it's gonna go to 2000. Now it's at 5,000. That's I remember even a couple of years ago, people would whisper 2,500 like it was some crazy number. It never possibly had times to change. Marisa wants to know how far from the highway is NAC? The only probably better answer for that. Yeah, how far is NAC from the highways?

21:25 That's right. I mean right now there is a barge access across to the highway that links the main highway 16 to Grand Isle, that's about 60 kilometers on the logging route to the highway. That said, there is a potential number of northern routes that would link directly across to Smithers. You'd be talking about on the order of maybe 120 kilometers directly from the property to smithers. But that's saving quite a bit of time over the current path. Still really not that bad in the grand scheme of things for access. And the fact that these roads are already pretty well established.

22:21 There's also the option of accessing the rail line that runs up Stewart Lake and Tackle Lake. So that rail grade is still intact. And that is, again, about 40 kilometres away from the property down the west side of Tackle Lake. So there's a number of infrastructure advantages to the project. And yeah, the roads and rail among those for sure. Look, you could take a giant truck right from our property and drive it to the highway. I think the investor is probably just trying to ask if you can access it by road. It can, there's not a highway going right to our property, but it's going right to a road that can handle huge vehicles that can go to our. Yeah. If you can get the trucks on, I think that's what most people want to know.

23:09 Graham from the chat wants to know, Tony, I'll throw this one to you. 2 questions. What's the next best catalysts? And also why will you beat the GDXJ? So obviously some forward looking statements here. Yeah, next big catalyst. Well, look, us announcing we're starting to drill. I think next week, Neil and the team, we're going to put out a news release showing exactly where we're drilling and why, which we've kind of foreshadowed over the last couple weeks. But I think once people see that there's drills in the ground, they're going to really realize that catalysts are coming up and not unless there's a huge macro puke in the market, I think will be pretty good. People want to get positioned to I think one of the most exciting drill programs in the province, let alone the country, so that's a big catalyst. And then assays start coming out sometime in July and they just don't stop. So those are really the big catalysts. And I think the other catalysts are gonna start kind of dovetailing right after.

24:07 Well, our drilling is actually not gonna stop. It's gonna stop next April. It'll probably be off for a month and start again. But again, having that mineral resource estimate come out in the PEA in sometime in 2027 is gonna be another big catalyst. But I always tell people, I always tell people, don't underestimate us to make big surprises that can change your stock overnight. Sure. That's generally probably good advice for mining. Johan has 2 questions. One is, how deeply do you drill if the core is mineralized at 900 meters? Well, look, depends what the grade is. Like we're hitting 5% at 900 meters, we'll go right to China if we have to, but everything's just a function of cost and what the return is from spending that money. But I think this year, given our cost of capital, I think it'd be wise to at least try and go for at least 1 hole that's going to go super deep to see, you know, what's lurking down beneath.

24:56 But again, like we're drilling pretty deep already. So you got to have pretty good results to justify going over a clobber on your ground considering how long it'll actually take to actually extract that ore from the ground if it becomes a mine someday. Appreciate it. And that same person who I imagine not from Toronto wants to know what the ugly bird is next to you and to your right. Or I imagine actually on your left, I think it's like with the Jays. That Jays we've heard is a Blue Jay. And that's our local, is that Johanna asking? It is, yeah. Yeah, Johanna's a friend. Thanks, Johanna. That's a Blue Jay. That's Canada's baseball team. We love them. Go Jays was at the game yesterday and it's a nice part of Canada. Yeah, there you go. Eric wants to know, how confident are you that the South Zone could support a starter pit and what additional drilling or data would be required to reach that level of confidence?

25:42 Neil, maybe you want to take this, but I think we're pretty much there. Yeah, I mean, obviously work needs to be done to determine, you know, pit geometry. We're a ways out from saying, yes, this is exactly where the pits can go. On paper, the grade is there and the scale is there. I think we need to do some more work on the north western side, sorry, the north eastern side and a bit further to the west to determine what that pit geometry would be, whether we push the broader lower grade envelope out a little bit further and we can have a slightly shallower pit or whatever engineering constraints are there. If it's really dead, we want to minimize strip ratio and so possibly a steeper pit is in order.

26:34 Again, these are things that are beyond the scope of what an exploration geologist typically does, but we're working with people who do have this expertise, so That is at the back of our mind when we're planning these holes and programs. So, yeah, there's a number of factors there. We really like the location. It's right in a clear cut. We like the grade. We like the scale. We like that it goes to considerable depth. So, yeah, there's and, you know, a variety of extraction options would be on the table. Right? So, yeah, it's just going to develop as we get a bit more information from it this season. But immediately in the near term, I'd really like to see some more drilling expanding out the near surface around that zone further, and there's room to do that.

27:22 There's very, very sparse drilling to the northeast of the zone, and there's some positive results from the sparse drilling that's there. I'll give the high-level answer of Neil's, the translation. I think we're there for an open pit there in the south for the constatement. Are we there yet to be able to build it? No more meters just go in the ground and we think it's bigger. Great. I appreciate that. So it's always good to translation for everybody in the audience. Tony, I'm going to throw it to you to wrap us up, but before I do so, I'll just give everybody a last chance to hit the request meeting button at the bottom of the screen. If you do want to meet with the American Eagle Gold team, it's right there at the bottom of your screen to the left of your other buttons. But Tony, I know there's folks in the room who aren't first time hearing about the story, their shareholders, their specific book or shareholders. I'll leave it to you for kind of last words.

28:11 Yeah, look, give me a call if you have any questions. We're always open for questions. A. Moreau at americapeagle.ca or you can give my cell phone a call, just send me an email. Get in touch with Romeo, but look, I always tell people, look what companies are able to do with what they have. And I would say we started off with Pretty much $0, no partners, no drilling on this project. 3 cent stock an hour, $1.20, and we have 4 major partners. NAC is for real. Awesome. Tony, Neil, thank you so much for both going through your presentation, but also letting us all grill you for a couple minutes. I hope you have a great end to your Tuesday.