Nevada King Provides Market Update

0:04 Hello everyone and thank you for joining us today for this live Nevada King event. We're joined by CEO John Sklodnik, who has taken time out of his day to give you all the opportunity to ask your questions. So please submit your questions in the chat and we'll get to as many of them as possible. One last note is that this event is being recorded and will be available for replay shortly after we conclude. So with that, John, thank you for taking the time out of your day. I have a few lined up to get the room warm while people submit questions.

0:35 The headline event since we last spoke is obviously the Sentara Gold strategic investment. They've taken 9.9%, 21 cents, which is 27% above where the stock was trading the day before the announcement. Can you walk us through how the deal came together and what their due diligence process on Atlanta actually looked like before they pulled the trigger? Yeah, for sure. And for those wondering, post-consolidation, that's about a $1.05 Canadian entry point for Sentara. And really, I guess going back, it started with maybe a pitch to their Corp Dev group. I was in equity research at the time, covered Sentara and worked alongside, we're both Equity Research analysts, someone in their Corp Dev group. So had a relationship there and kind of just pitched the idea of Nevada King, given they've got interest in our neck of the woods.

1:32 That got a bit of traction and then sat down with Neil Adset as well at a conference.

1:41 He initially doesn't like a lot of things that he looks at, but we got him warmed up and the more he looked into it, the more interest that he got. So, in terms of the process on their end, he did a deep dive, then sends a recommendation to their investment council. And then later on, I guess, once we're in the due diligence process, just really looking at everything. So, obviously they've got their geologists at site meeting our exploration team. That was a huge part is them getting comfort with our exploration team. And then we've got our entire team involved in this process where our CFO is working with their finance group. They're going through all of our release data and unreleased data as well. They've got full access.

2:33 We've got their, I guess, environmental group working with our group as well on the permitting front, making sure everything's clear there. So just every member of our team was working with a counterpart on their team to really advance it, getting them comfortable with everything that we're doing.

2:52 And then, I should also mention that this was a lengthy process and obviously as a publicly traded company, our stock is at the whims of the market. You know, at one point when I thought this was gonna go ahead, our stock was at 27 cents just before the war of the rand started. And then of course the market took a big hit after that. I thought gold was gonna go up on the back of that announcement. It went the other way. And then you had the market kind of cratering. And by the time we were ready to announce our stock was down to $0.17. So that was tough. But, you know, Sentara was a really good group to work with. They appreciated the fact that they're prepared to do this at maybe a higher level if our share price was there. So that's where that 27% premium came in. It was based on the 20-day VWAP and that was the price there at the time, 21 cents.

3:48 So very lengthy process. We're really happy to work with them. They're a relatively easy group to work with in terms of just openness, a lot of calls to go over, you know, where we might've had issues or they had issues and managed to come to an agreement that worked for both sides. It was a great process and really, obviously, a really good endorsement for Nevada King and our project, our exploration team and everything that we're doing.

4:17 Let's talk about why they endorsed you. Santera is a producer with assets in Mongolia, Turkey and Canada and they've been pretty public about wanting more U.S. Exposure. What does it say that a mid-tier of that scale chose Atlanta specifically as their entry point into Nevada. How do you think other producers in the space are reading that signal?

4:40 They've got a small presence in Nevada just with development projects. They've got one there, Goldfields, that's a short mine life. I think it's expected to be about 5 years near surface oxide. So part of my initial kind of, I guess, pitch to them was this idea that, you know, Atlanta's potential timeline might dovetail nicely with Goldfields. So they've got a couple other things, I guess, in Nevada and the Great Basin, I guess, more broadly with an investment in Liberty Gold as well, a larger development stage company. So yeah, I guess in terms of how this, the signal, I think it really corroborates what I've been saying. You know, you can't publicly show this until you have an endorsement like this. But I've been saying the whole time, like we have tons of interest from corporates and between retail investors, institutional investors and corporates, it's corporates that we probably have the best engagement with, that love the data that we have, that love our exploration team, love our process, and really ultimately love the land package with this entire caldera.

5:53 Obviously the infrastructure, the past production. You know, when I was in equity research, kind of seeing everything that I was seeing, a relatively simple story,

6:04 high grade oxide, easy access, just hosted an analyst site tour, just fly into Las Vegas, drive north on a highway. Yeah, it's got everything that you'd want. So yeah, I think it's finally a strong public signal to the market that, you know, I wasn't making this stuff up, that we do have a lot of corporate interest. And, yeah, like I said, just a great endorsement from Suntera. And your chairman, Colin Kettle, and major shareholder, Michael Parker, put in around 6 million dollars to maintain their positions. So for investors who watch insider behavior closely, what does that level of follow-up commitment from people who already own a lot of the company tell you about where the next 12-months are going?

6:52 Yes. Colin and Mike have been the best shareholders you could ask for. They've been generally the lead orders on financing prior to the last couple where we brought in Franklin and we brought in Franklin Templeton, I should say, and Sentara, but they just refused to be diluted. They want to keep all of the exposure that they have to this company and our project.

7:16 And I think it really, it's as strong an endorsement as you can get. They've combined put in, you know, roughly CAD$45M to get to their ownership position. So that's through financings and through market purchases. Like they didn't build their percentage ownership in the company through founder shares, which sometimes you see with some of these companies where, as a company comes into existence, they issue themselves a boatload of stock and options at pennies or fractions of pennies. So they've got this advantage over everyone else. That's not the case here. These guys are leading financings. They're buying the market. They won't be diluted. And that's the reason why an exploration company like us has no warrants outstanding.

8:02 Typically companies of our size and development stage, they've got warrants because they needed them to get financings done. But when you've got your 2 largest shareholders leading the financings,

8:14 trying to conduct this company as shareholders, it's hugely helpful for us. So it puts us in a very good position right now. I just want to take a moment to remind people that are coming in a little late, please submit your questions. That's what we're doing here. So John's available, please submit your questions. We have one in the chat. Hello, how do you plan to use the $16 million investment drilling slash engineering slash permitting? In terms of use of proceeds, like the Sentara component, that was US$10M from them. They really clearly stipulated that this is for regional exploration. They really want to see the potential on the land package. We obviously have the entire Caldera.

9:01 They believe what we believe in that this 1.1Moz that sits along the margin of the Caldera is not an isolated event. Obviously, it would be the same fluid source. And just to back up a little bit, what a Caldera is, is a volcano that has collapsed in itself. So you would have the magma around the edges of this 6km wide caldera. So we would be shocked if there is only one instance of high concentrations of Gold, which is the resource. They've got a similar view. So yeah, that $10 million is being used to look at Western Rim, to investigate Silver Park, regionally this SPE extension zone, which is where we've put out our last couple of press releases.

9:45 Atlanta South as well, Atlanta North. But yeah, it's not for engineering studies. It's not for permitting. That said, we had a cash balance before. So we've got another roughly $10 million from the financing from Franklin previously, and then the $6M from Colin and Mike. So we're still in a great, healthy position with our Treasury to advance permitting, do all the other work that we need to do to advance this forward and potentially maybe another resource update if we have success with this drill program near the end of the year, potentially at that point, maybe we look to put out an economic engineering study as well. Right.

10:30 So the investor rights agreement gives Sunterra participation rights and information rights as long as they hold above 5%. From your side, what does the working relationship look like day to day? And does having a producer of Sunterra size as your largest shareholder change anything about how you think about strategic decisions or development pathways? Yeah, I mean, they're really not involved from a day-to-day standpoint. They're a shareholder, they've got rights to information. The investor rights agreement is out there, but they're not involved in direct business decisions or anything like that. There's no board seat, there's no advisory council, no technical committee.

11:18 So, we've got all the flexibility that we want. That said, we schedule quarterly technical update calls to keep them up to date. Any material news, obviously keep them up to date as well. But this is a huge advantage for us, having them as shareholders, having them invested in our success. Obviously, a large company with a lot of resources, obviously a very strong technical team there. There's a group that generally came over from Kinross with their strong technical group. It would make sense for us to pick their brains when we can. They've got a development asset in Nevada. They've been looking at a lot of projects in Nevada.

12:04 We're thrilled that they picked us to make an investment in. But yeah, we want to utilize their knowledge of the region generally to help us with exploration. So

12:17 they're always available for us and we'll definitely take advantage of that. And yeah, there are regular calls quarterly with them to keep them up to date. I'm always interested in hearing people's perspectives of consolidation. So you completed a 1 for 5 consolidation, and you've been pretty explicit that this is about opening the door for institutional capital. Not sure how much you can disclose or share, but which buyers do you think were sitting on the sidelines because of the old structure and what's the pitch to that group now that the share price is at a level where they can actually own? Yeah, yeah, it's funny. Everyone has a very, very strong opinion, it seems on share consolidation, whether it's the right thing or the wrong thing. I definitely heard a bunch of feedback on that.

13:08 My own opinion is that it's really about the share price times the share is outstanding and it's all about the market cap, limiting dilution and that this is just really a bit of a non-event. The reason we proceeded with it,

13:26 just to give you a bit of an anecdote, I was at a conference last summer. I had 20 meetings, generally with financial advisors. In every single meeting, it came up. And this was prior to the Sentara investment. At that point, we had about 424 million shares outstanding. It still came up in every meeting. So if these people are asking for it, you know, we'll do it. No reason not to. And I guess in terms of these people now on the sidelines and what we're hearing, you know, recently I continue to hear that it's much easier for financial advisors to advise their clients to buy what aren't considered penny stocks. So a stock that has a share price above 50 cents. So we're definitely, you know, cross that off and no longer any resistance there.

14:15 And then the other reason is there are certain states in the US that have blue sky laws. So this will help us address that and be compliant with another probably roughly 10 states to be compliant with those blue sky laws. So it really opens up a much broader pool of capital with Canadian and U.S. Financial advisors, groups that typically buy in the market, buy on the board.

14:43 So this is generally who I'm looking to target and market to and tell the story to when I'm at conferences. And this is kind of our direct audience. So they were asking for this and we delivered it. And so I think going forward, I'll be at a conference next week in Washington and then another one in Fort Lauderdale, pitching to these groups as well. And I expect to get a fairly strong reception post-consolidation. I'm going to go back to the chat here. There's a couple of questions. I'm going to just put them together. What other milestones are you targeting before considering another capital raise? And is there a plan for Sentara to begin mining the 1.1Moz at some point in the future?

15:31 This isn't Sentara. It's Nevada Kings 1.1Moz. Sentara doesn't make those decisions. They're just a shareholder. They've got an investor rights agreement, but this is Nevada Kings project. We're thrilled to be working with them in terms of being able to pick their brain and get information from them. But yes, there's a Nevada King project. And then the first part of the question, Financing, I don't want to hear that question for another couple of years. We've got CAD$20M in the bank. No need to worry about more dilution coming. We've tightened up the capital structure right now. We're moving forward with CAD$20M in the bank. More exploration targets than we have ever had.

16:19 People can be in this story, be comfortable that there's going to be a re-rate on those 1.1Moz that we have, and you've got optionality if we make another discovery on that caldera. A great position for us to be in. Right now, we're remaining an exploration stage company. That's going to be what we're continuing to do. We don't have the management team to build this out right now. We've got some capability on our board, but this isn't something that we're looking to go into at the moment. Great answer. Let's talk about exploration. Phase 4 was originally announced as a 20,000m drill program.

16:59 You've already doubled it to 40,000m with 2 RC rigs on site. What's driving that decision to step on the gas and how is drilling priority breaking down right now between Silver Park East and West Atlanta Fault Zone and Western Rim? We've got 2 rigs on site. One's an RC and one's a RAB. We still want to get another RC rig at site. We have picked up the pace of drilling in that we've doubled the shift. That went from a 12-hour to a 24-hour shift. But in terms of stepping on the gas, we want to put the pedal to the metal. We want to get another rig at site. We want to get another double shift there. We don't want this money sitting in our bank account. We want this money going to drilling and exploration, figuring out the deposits that we may have on the property as soon as we possibly can.

17:54 We don't want this sitting in our bank account generating interest. We want this going towards exploration, which is what it's meant for.

18:04 We've got the Rab drill that can drill shallow holes and we'll use that to test some geo-chem. We'll certainly run assays. That's what happened with Silver Park East. We had the Rab drill there. We put out some holes that we were happy with, obviously near surface given it's only a shallow rig. So we're following up there. In terms of priorities, because we just have the 1 RC rig that can drill deeper, We'll drill these targets and then we'll wait to get the assay back before following up because we want to know, is there Gold in that hole? What grade of Gold? And that will obviously determine our next steps and whether we continue in that area or we move to another area on the target. We just want that information.

18:50 So with that RC rig, it was focused on Silver Park East and the Silver Park East extension just to the South. And yeah, we've been happy with what we've had so far. We've put out a couple of press releases recently showing near-surface oxide mineralization above caught-off grade, the stuff that we're looking for. We're not done with Silver Parkies. We're going back and we're going to continue to drill that out, to continue to infill that. We still want to find higher grades. We still believe that this is a continuation of the same mineralizing event as the Atlanta Resource Zone. Of course, that's a bimodal system where you've got some bonanza grades and we can find some cross-cutting faults. We think that that's an area where we'll find higher grades. It doesn't make sense to have such a large footprint of this blanket of low-grade mineralization at surface. There's a source for that and we've got to find out where that is and where that source is. We're going to find higher grades And I think it's a lot of these cross-cutting faults. So there's a structural component to this and we're certainly honing in on that.

19:53 Do you want to touch on Western Rim? It sounds like it's fundamentally different than the Atlanta Resource Zone. What's been most encouraging from what you've seen at surface and what their success looks like when those first pools come back? In terms of early-stage targets, this is showing all the hallmarks of a potentially large Gold system. That said, as I say that, I do want to make sure that people understand that it's an early stage target. The real truth machine is the drill. We're really excited to start drilling it because we've got these rock chip samples of 20.8g per tonne. We've got swarms of quartz veins extending 2.5km. We've got Geochem that we know we've got presence of Gold, Silver, Arsenic, Moly on there. It really does, It shows everything that you want in an early stage target and it's over a large footprint.

20:49 So that bodes well. That said, yes, we've got to start drilling this and I don't want anyone getting over their skis on this target. We've had hopeful targets before that didn't pan out. It's difficult to find Gold. It's certainly more difficult to find Gold in greenfield areas. The one thing that I'd also mention though is that there is past producing mines all over our property. So Including at Western Rim, we've got an underground shaft at that site. We've got an underground shaft at Atlanta South. Of course, we have the open pit at Silver Park, the open pit at the Atlanta Resource Zone. It certainly bodes well, We're hopeful, but we want to drill this thing out.

21:35 And I think that's something that really differentiates Nevada King is that we're not scared at all to figure it out. I think that there's other exploration companies, when you have this highly prospective target, You just want to keep the hope out there. You want to keep the dream going. That's not us. I say us as fearless explorers. It's our exploration team at site. We want to figure this thing out as soon as we can. We're drilling that out and hopefully we'll have assays out on Western Rim in the first half of the year. That's a good transition for John McConnell's question in the chat because there's all this potential but he's wondering with all this potential why did Craig, Bassam and Paul leave the board? I mean, that's a tough question to answer so publicly, but we had to go in a different direction.

22:31 You can see it in the financials, the salaries that were being taken. We eliminated the executive chairman role where that was costing us about US$500,000 a year. Bassam, the CFO, was involved in a number of different companies. It wasn't solely dedicated to Nevada King, also making roughly twice as much as our current CFO is, who's dedicated to Nevada King. So ultimately it had to do with the fact that we've now reduced our management and directors fees by over 50%. You can check our financials, our last reported quarter, look a year earlier and you can see it's about 50, over 50% lower.

23:17 So it's about, you know, using the limited capital we have. Granted, we're in a very good position. We've got a big treasury right now, but that treasury, it's not really for us to take big salaries home. It's for us, I get compensated probably best through options. I took a big salary decrease from my previous role at an investment bank to this one. We can now target over 70% of all of our spending going towards drilling and exploration. That's why retail invest in us. That's why institutions invest in us. That's what corporates want to see. That's what we're here for. That's why you invest in Nevada King for exploration and to make discoveries. So The executive chair role was unnecessary.

24:04 It just in terms of Craig, you know, he's still, I think, close and, you know, there's no ill will there, just kind of some tough decisions that have to be made sometimes. And yeah, I think we've got a really strong team. Jeff Steber coming in as a CFO, it has been a huge, huge add for us. He's dedicated to Nevada King, brings experience from Tahoe Resources, Klondike, some larger companies, as well as exploration companies. Colin taking over the chairman role, it's not an executive role. He makes what every other director makes. So it really is to streamline things. And you also brought in Justin Daly as VP Exploration last November. And the team from whether it is now using AI integrated targeting alongside the geophysics.

24:50 For a project that's already generated significant discoveries through traditional methods, what is the AI piece actually changing about how you're prioritizing across the land package and have targets surfaced that the team wouldn't have prioritized otherwise? So, yeah, we've got a bunch of data and we did put these data layers through machine learning. You know, I wish I could say like, yeah, it made a massive discovery for us. It didn't. And though, I guess the priority targets aligned with with our geologists and the targets that we already had delineated. So I don't know if that's a detraction from machine learning and AI. I think it's more of a testament to our exploration team that these guys are able to understand this data well and go forward and delineate these targets.

25:47 There is a new target that we're looking at. Again, earlier stage, we haven't really talked about it yet, but I think it's part of our process here where once Silver Park moved, we were having some success there, That moved to an infill stage and we were able to backfill that target with Western Rim. We want to keep this conveyor going as we kill off targets too. Not every target is going to turn into a deposit. As we kill off targets, we want to be able to replace those. We've got 130 kilometers squared land package, so many targets around the margins of this caldera. So we're going to continue to be able to backfill our targets and, you know, hopefully Western Rim plays out, Atlanta South, Atlanta North. These are currently the 3 regional exploration targets that we're focused on.

26:36 But we're now finding other new targets that will backfill if any of these don't pan out. Great. What else I got here? I should also speak on Justin a little bit. He was a huge addition. I was pumping the tires of Jeff Steber. It's really Jeff, myself and Justin on the management team. It's a very lean management team. Justin is a huge addition, adds a ton of value. He left a CEO role at another Nevada based exploration company because he saw the potential at Nevada King. He's trained in AI and machine learning from Harvard. Just a huge add for us. We've got a really great team, a joy to work with and just great having Justin on as well as Jeff.

27:28 Great. There was one question that someone submitted upon registration. What new higher or grades are you reporting and confirming? Well, they're all publicly released. So recently The last couple that we put out have been focused on Silver Park, the Silver Park East target and we've been excited with this Silver Park East extension zone. This is just to the southwest of Silver Park East proper, this main mineralized footprint that we have, that now spans 300m by 500m. We've now shown this other area that we think may connect, and we're testing that with this phase 4 program, but it's also, you know, about 400m by 300m. Like This is another decent sized footprint here.

28:21 When I'm talking about this blanket of low-grade, near-surface oxide mineralization, the kind of stuff that we're looking for, for a satellite pit that could potentially be heap leached. This is more of that material. Some of the grades that we put out, 0.93g per tonne over 15m, that was from the Rab drill. We did 0.69g over 15m as well from the Rab drill. Then we were to follow that up with an RC drill that can go a bit deeper. The last press release, I think was about 0.3 over 40m. So this type of mineralization, our cutoff grade is 0.14 and that's at $2,200 Gold. So yeah, this stuff is well above cutoff. And yeah, these are kind of the more recent results that we've been putting out.

29:12 With Sentara closed, the consolidation done and a fully funded 40,000m drill program in front of you. This is probably the cleanest setup Nevada King has since the Atlanta discovery cycle started. What are the 2 or 3 milestones have I had to narrow down for you? What are the 2 or 3 over the next 12-months that you think will most meaningfully re-rate the stock? I think that we've been seeing this gradual re-rate from our lows into back half of 2025. I think we're starting to see an appreciation from the market. I mentioned the reduction in management and directors' fees, the fact that we're, how much we're able to target spending going towards drilling and exploration, bring in Sentara, really institutionalising the story. The consolidation was another big step to bring in a new pool of capital from financial advisors.

30:08 So I think that there is kind of 2 prongs to the re-rate. The first is the re-rating of the 1.1Moz, and those are the activities that we've been working on from a management team like you've seen and that we've been discussing here. So I think we're starting to see that, those ounces that we have that were severely undervalued when we were trading, you know, we got to as low as $0.12 pre-consolidation. So pretty ridiculous and I think that, you know, the market's picked up that there's a lot of value here. We're up off the mat, still have a long way to go, still trading at around 0.1x PNAV on analyst numbers. So I think we're starting to see the re-rate in our shares and a better valuation for the ounces that we've delineated. But of course, the other prong to this is exploration, making a discovery. In terms of catalysts going forward, the news flow going forward, it's going to be drill results and assays coming out.

31:07 And yes, that's really going to be what's driving the story and getting that pop in the stock if we're able to make a discovery. So I think that you can have comfort in that even if we don't find another ounce, there's still a rerate to happen with the ounces that we have. But we've got US$20M in the bank. We've got more targets than we've ever had sitting along the caldera where all 5 of our previous mines, whether underground shafts or small pits, have existed that were being explored and mined in much, obviously, lower Gold price and Silver price environments. This is as good a structure as you can get from a capital perspective, post-consolidation. The setup's better than it's ever been. We've really institutionalized the story.

31:55 We've got the capital now. No one has to worry about dilution for another couple of years. And I think between now and then, hopefully we can make a major discovery. We put this land package together. It wasn't even for the million ounces at the Atlanta Resource Zone. It was because we thought there's potential to find multi-million ounces outside of the Atlanta pit area. So, yeah, we're still going down that path, and we got, you know, sidelined with, I guess, looking at the Atlanta Resource Zone and had more success than we were expecting to there. But now we're back to the original premise on why we had this land package, put it together. It's for the exploration potential along the caldera. Thank you, that was, got me excited. The last question I have for you is one that someone else has in the chat.

32:44 I just have it written out a little differently. Nevada M&A has gotten genuinely active over the last year with majors and mid-tiers making real moves to consolidate oxide and heat bleach projects across the state. From your seat, a CEO of an asset that checks a lot of these acquisition boxes, Where do you see Nevada King fitting into the consolidation arc? And how are you thinking about balancing the urgency around development against maximizing value for shareholders? We're so fortunate. We don't feel urgency. I think some companies, there's a lot of pressure to drill that next hole to make sure that it's bonanza-grade headline grabbing so that you're able to get a pop and then do the next financing.

33:29 We're so lucky We're able to go about this very methodically. When Neil Adsaid was the Sentara investment advisor, he goes to a lot of conferences as a keynote speaker. He was recently at 1 in Zurich and was just talking about what he looks for in an investment. And part of it is district scale potential. That's such an overused term. We actually have 130km2 land package with the entire caldera. A strong exploration team, but being able to provide sufficient capital that the team can then go about it the right way. And we're looking to do that. So, I guess dialing it back to the M&A question, yeah, I mean, We've seen it starting to heat up, both in Nevada and with some of these high-quality projects that are out there.

34:24 Acquisitions with premiums from 46% to 79% was the G2 acquisition. So We're seeing premiums back out there for high-quality projects. I think we check a lot of those boxes. We're again very lucky that we have some key shareholders with chunky positions that are insiders. We're not looking to be transacting. We've got our work cut out for us in delineating the ounces. I think we'd be doing a disservice to shareholders to be looking to sell this right now, even at a 50% premium or whatever it is, we've got our work to do. We wouldn't want to be selling this, having the next group make the major discovery. We think that there's multi-million ounces on the property.

35:13 We're going to figure that out, I think, with the current cash balance that we have. We've got a lot of inbound interest, but we're just going to keep going about our work very methodically and keep exploring and hopefully make another major discovery along this caldera. John, thank you so much for taking the time to answer all of our questions. If you have a question or you want to meet with John in person, when I close off the room here, it's going to ask if you want to request a meeting with management. Feel free to click that button. It's also on the bottom of the screen here. But John, thank you