New Break Resources' End Of Year Wrap-Up

0:04 Hello everyone and welcome to New Break Resources end of year wrap up. Today we're joined by Bill Love, CEO and Michael Ferrand, President. Now, if this is your first time joining a 6 event, please note that this event is being recorded and will be made available for viewing shortly after we conclude here today. Also, we encourage participation. You'll see in the bottom right corner, there's a chat box. Feel free to submit questions at any point and I'll try and weave them into the conversation. Gentlemen, congratulations. Yesterday, your team announced exceptional results from your latest drilling, including 1.57g per tonne Gold over 70.7m and 2g per tonne Gold over 38m with a spectacular 76.5g Gold section at NBR 2510. Can you walk us through what these results tell us about the Zawit zone and why you decided to restate the earlier intervals from hole 4 and 5?

0:56 What it represents is we now have a zone that is effectively continuous between hole 4 in the north and then hole 9, then hole 5, and then hole 10. So, they're all, the zone is very

1:19 clear, hole to hole, the mineralization, the alteration, all the things that we noticed in the discovery holes 4 and 5. But at that time we had no idea about potential continuity. So we have restated the results from 4 and 5 And particularly with 4, if you go back and look at our press release from the first round of drilling, and you look at the interval in 4 that's stated in the press release,

2:00 it's sort of that broad interval with a whole bunch of narrower intersections within the interval. And at the time we did that because we just didn't know, what the continuity was gonna be like from hole to hole, in this case from 4 to the next hole down 9. So it's really just a restatement to reflect the continuity that we're seeing from hole to hole. So it reflects now what is very clear in the assay numbers and in the diagram that was in the press release yesterday where you can see

2:42 the red assay lines from hole to hole to hole. So it reflects the continuity that we're seeing, you know, from the current program. Yeah, and the only thing I'd add to that is that a lot of times when you use a word like restatement, people have a negative connotation with that. And in this case, that's far from the truth. We were able to expand something and in this case, it's better. We were trying to be conservative the first time around because as Bill said, we weren't fully aware of what we had. We've obviously completed more work now. And so in this case, restatement is better. We have more than what we thought we had. And I think for the investor out there, when they look at this, the takeaway should be a positive one.

3:38 Definitely. Now, we planned this event as a wrap-up for 2025 and this has been a transformational year for New Break from your maiden drilling program at Zabbits. So can you reflect on this year and share what stands out most to you about where the company is today versus it was in January? Well, maybe I'll speak on the project basis. As your viewers probably know, the discovery holes of 4 and 5 and now we've added 9 to 10, are very close to a surface zone that we, that was actually discovered by ASTREX Resources in 2012. We expanded and did more sampling.

4:26 What's the most interesting thing for me as a geologist is we went from a surface vein that was less than a metre wide, very good Gold values, to now 4 holes that are 75 to 100 metres wide. And that's the joy of exploration. I mean, it's like, it's, you know, especially in Archean rocks, the Archean gold systems, you could have things change so dramatically between what you see on surface and what you hit in your drill holes that becomes a cathartic event.

5:11 We went back after the discovery holes and looked at the stripped areas and looked for the alteration that we were seeing in the drilling and where we were able to strip because obviously you're stripping as a function of where there's no swamps and we just missed the... We couldn't strip the surface expression of the zone that we first discovered in 4 and 5, because the outcrop, you know, slips off into a swamp. So there was no, There would be no way that we would have noticed that on surface stripping because we couldn't strip

5:59 where the zone we discovered would come to surface. That's the excitement for me of exploration and how transformative it can be.

6:17 For me, you can see today I'm wearing a Jays uniform and I think that if I can be so bold, I'd say the Jays and New Break have a lot in common. We both probably started the year with folks doubting us, but a belief in ourselves that we had the ability to succeed. And I would say the 2 most unexpected things that probably happened during 2025 from that standpoint were from the outside looking in, where the Jays making the finals of the World Series and almost winning and New Break making its discovery. We had a belief in ourselves, but when you go back to the summer, trying to raise money, It was still a very difficult market despite the fact that we're in a tremendous Gold price environment with Gold prices literally hitting all-time highs.

7:12 So when we hit on this drilling program, and it was a very limited program. So to have success is in and of itself quite a remarkable thing, but I think speaks to the talent of the team we've put together and the bill and the work that we've done in the lead up over the last few years to this drilling program.

7:34 But life definitely changed on September 17th for us when we put out those results. We hit, at the time, until yesterday, a 52-week high, which we eclipsed yesterday. We were able to sustain our share price at a significantly higher level which allowed us to accelerate a bunch of our warrants that we had outstanding and that brought in a couple of million bucks. We went from an approximately $3M to $4M market cap to an approximately $25M market cap. So that's a pretty transformative year in and of itself. We were able to bring on a couple of new directors that are extremely talented and well-respected within the industry and brought on Bill Walford as a technical advisor.

8:28 I think we just expanded overall in terms of the quality of our team and the people. We've got a tremendous discovery to build on for 2026. This really has been, from where we started out at the beginning of the year, transformative for us. We're very happy, both for the company, but most especially for our shareholders. Definitely. I do want to bring it back to the restated interval, hole number 4, expanding from 14.8m to 86.7m.

9:02 That's an additional 71.9m of continuity you didn't initially recognize. What changed in your geological interpretation that led to this restatement? And what does this broader mineralization footprint mean for the potential size? Well, as I said earlier, the original interval that was in the press release announcing 4 and 5, that interval is really still the same now. It's just that in that announcement, we didn't, there's a whole succession of including below

9:41 the initial interval. And all we've done is, because of the continuity from particularly the next hole down, hole 9, is reflect the overall grade of the entire zone because now it's apparent

10:03 know, that overall width is present in the other holes. You know, so it's now 4 holes versus 2 when we made the discovery. So it's not, it's not so much a change in geological interpretation. It's, you know, we have a certain type of mafic volcanic that we refer to as hematite, altered mafic volcanic. So it's very altered, lots of hematite. And that, you know, in each hole, that entire, each hole's interval is characterized by basically the same host rock. So, you know, it's very discernible in the core and it's very discernible in the assay numbers.

10:58 Michael, you addressed bringing on some people to the team. There was also Philip Walford. How has this new leadership shaped the company's exploration strategy and what specific expertise are they bringing to Advance Moray?

11:14 The first thing I'd say is that we already had what I would categorise as a world-class team. Bill was part of the Hemlo discovery, our QP, Peter Hubbacheck, well-respected in the industry and has a tremendous knowledge of the area in which we're operating. But we took this opportunity to bring Phil Walford on as an advisor. Phil was founder, president, CEO of Marathon Gold, took the Valentine Lake deposit from nothing to 4Moz and was bought by Calibre Mining for $345M. So you've got somebody there that's taken a property from discovery all the way through an acquisition for hundreds of millions of dollars.

12:06 He has a tremendous insight into the particular geographic area in which we're operating and has a ton of experience with other deposits in that area.

12:17 So I think having someone like that for the team to bounce ideas off of has been a tremendous addition and we've obviously strengthened our team in terms of some of the folks like Peter Kulbick and others who we've had helping us with the drilling program. So I think overall we took a good team and we made it even better. In terms of our directors, Mark Bedosa, which is the chairman of Vior, now renamed Gold Corporation, and Andrew Thompson has a ton of experience in the industry and sold a predecessor company to Ignico Eagle. I think we've got some great folks that have helped raise money, that have access to much deeper pockets within the capital markets and have just in general, I think, elevated the profile of the company from its people standpoint.

13:13 We know we've got a good property and I think that combination of great people, great property and the work ethic that everybody brings to the table every day is what ultimately makes a junior company successful. I think that's what investors out there look for. The Malan survey identified a 450m long conductive zone at Zavitz. Based on the geophysical work and your phase 2 drilling results, what's your geological model for the system? And how large could this discovery ultimately be?

13:50 Okay, well, we have a lot of geophysics in the immediate area of the zone. We have pole-dipole IP that was done by SGX Resources in 2012, where we bought the data and it's part of our model. We have our own IP that we did, gradient IP, at the end of last year. We have the Musel Amas downhole surveys that we did at the conclusion of the first round of drilling.

14:29 We did drill Mag. We have a lot of geophysics that are designed to highlight areas of conductive sulphides but also areas of potential quartz filling. It's important to emphasize that the mineralization where you get Gold is not in the massive sulphides that form the older VMS system, the Voyager VMS system, which is well-known historically.

15:11 So you need to pick the track of the zone where the conductive sulphides are lesser than they are in the massive sulphide trend and also where the structure is. We are well down that track now. We are doing a major structural study because there is a lot of structure going on, as there always is with Archean Gold deposits. We are in the middle of that right now, but we have a pretty clear idea of where the zone will track, more so to the South, South East and then to the Northwest.

16:05 How long would it be? If the track of all the geophysics is reflective of this less conductive recrystallized sulfide system, it's going to be pretty long. And the advantage of the continuity that we now have, you know, tight continuity between 4 holes, is we can start to see internally, how the Gold's developing. And we, company Geos always try and look at where the growth in ounces, we don't do this externally because you've got to do a study, but when you have broad zones of consistent Gold mineralisation, you can build up ounces pretty quickly and also very cheaply relative to acquiring ounces, as we've discussed earlier.

17:18 The company has made several strategic property acquisitions in this quarter. Michael, what's the rationale behind this land consolidation strategy and how does it position New Break for growth? I'd say a couple of things on that. We started Moire acquiring the property, the initial 1,856 hectares in September of 2020 from Exiro Minerals, a private company. And since then, we've grown the Moray claims in terms of what's contiguous to over 23,000 hectares with an additional 4,000 hectares to the northwest. And that's been done through a combination of property acquisitions. We did a couple in 2023.

18:04 And as you pointed out, we've done a couple recently. And I'd say that overall, we've acquired about 11,500 of those hectares and we've staked on our own about 15,500 of the overall 27,000. And most of that ground is royalty-free. But you look at a couple of things. You want to give yourself, if you can, your project some scale. We think that certainly in our case, we've got targets on the property, the overall property, that have additional mineral showings, which means additional exploration potential. But then you're always, you know, keeping in the back of your mind, what's the end game here? And obviously there are larger operators, companies like Alamos Gold, like Neko Eagle, Barrick seems to be showing a willingness to get back into Canada, who are around you, and they often like to see scale.

19:04 So you definitely, I think, make yourself more marketable from that standpoint. But I think in our case, we've got a few other things going for us. The claims we own to the Northwest were contiguous with Canada Nickels Texmont property. The claims to the South were contiguous with Torque Metals Edelston property. And there are different minerals at play. We're currently exploring Gold for Gold at our Moray property and we've had the discovery there, but in the northwest, I think there's some Copper opportunities. So, whether that's something we pursue down the road on our own or whether we decide to package it up and do a deal with somebody, there's an opportunity for additional valuation creation for shareholders.

19:54 And as a company, you're always looking for those opportunities to continue to create value and additional paths for growing the company. And then with the higher share price that we've enjoyed lately, it's given us more flexibility in terms of negotiating with people. And so the couple of recent property acquisitions, we've been able to do it at a much higher share price, which meant less dilution and we were able to fill in a lot of the missing puzzle pieces in terms of ultimately making our entire land package contiguous. Now, If I'm not mistaken, you guys have just under $2M in cash on hand and some government support through OJEP grants. How are you planning to allocate capital in 2026 between drilling, property expansion, and working capital?

20:48 I think in general, the focus has been in the past and always will continue to be on exploration. We did announce the potential for a much larger drilling program. While that would require the need to raise some additional capital in 2026, we're big believers in putting most of the money back into the ground. So As a result, we've kept our GNA very low. We don't have a head office. We try to avoid all the costs that some traditional companies have. So I think the allocation of that capital, for the most part, will continue to go into exploration. But what it has allowed us is a little bit more financial flexibility, where we have the ability to negotiate some of these additional property acquisitions and not worry about where the money's coming from. And we can look at whether there are any other opportunities out there and we don't have to worry about how we're going to pay the bills, which is a real worry in this sector for junior companies that are having trouble financing and don't have money in the bank. So I think from that standpoint, we've de-risked the company and we've set ourselves up very well to have success in continuing success in 2026.

22:19 Now this drill program you mentioned, it's possibly gonna be over 10,000 meters, right? In mid January, perhaps. Given what you now understand about the continuity and breadth of mineralization. How will this program differ from 2025's approach and what would success look like? Well, as we now know, as I've stated earlier, we have a continuous zone and we're going to chase the zone in the context of all the data that we already have, geophysical mapping data, etc. There's the trace of the existing zone, but there's also 2 other targets that we're going to drill, which have similarities to what we have found, similar structural environments, proximity of Ultramafix.

23:25 So there's 2 other target areas that we're going to hit in the same program, the start of which I will have a better feeling about tomorrow because one of my colleagues is meeting with the driller today. So, it's supposed to be mid-January, but we'll know, I should know tomorrow exactly when that rig's available. So again, trace the existing zone and test 2 new zones. Upon registration, an individual had a question. How many on-site personnel do you have for 1 drill? We just have 1 drill geo, Peter Colbeck, who is in Timmins.

24:16 We should be okay. The driller that we're about to use, we've used before, they're high production, they're based in Timmins. At the moment we have 1 geo, 1 local geo, so we should be okay. If you get to 2 rigs, you need more drill geos. The program in January that we are planning on is 1 rig. If the zone keeps growing, you go to 2 rigs, you're going to need another drill geo. We're okay at the moment.

25:04 Let's wrap this up here. As we look out to 2026, where do you think this macro environment leads with Gold prices the way they are? And what are the key milestones shareholders should watch for in 2026? Well, I think first and foremost, I'd say we just need to continue doing what we're doing. I think Bill and his team have done a great job in 2025. As he mentioned, we're already well on our way in terms of thinking, in terms of what we need to do during 2026 to be successful. From a macro standpoint, there's many different ways to look at how valuation is reflected in the industry.

25:52 And I say that from the point of view of you have companies that rush to develop a resource estimate and we see some of those resources in terms of companies that are trading publicly, trading at 20 bucks an ounce. We see acquisitions at 20, 25 bucks an ounce. Is that reasonable in a Canadian $6,000 an ounce Gold price environment? Probably not. I'd almost offer that there's a line of thinking that suggests not to put out a mineral resource estimate, but keep doing the work, having obviously an internal estimate of what you think you have, but let the market determine what you think you're worth until the market wakes up and gives you a better valuation or the bigger companies give you a better valuation because honestly, I think if you're developing a high-quality resource in the Abitibi, in the sort of timid camp in which we're operating, it should get a valuation higher than what companies have been getting, certainly in a $6,000 Gold price environment.

27:08 I think we just keep doing what we're doing, keep growing the size of the discovery and try to figure out a little bit more about the extent and what's possible for 2026. Bill, do you have any further commentary before you wrap things up here? Well, again, my world is pretty simple. You keep extending a zone and I think we have other zones to discover. Just based on the footprint and the signature of what we've already discovered. I think there's several other discoveries potentially on this project. And I was gonna just add quickly that there's a rationale behind the acquisition of the ground, a technical rationale, which is, to put it simply, this relationship between ultramafic belts, intrusives, and, you know, mafic volcanics, is, you know, we're at the south end of, you know, the, in our case, it's sort of east west ish ultra mafias, but they turn north.

28:28 And that's the textbond trend, which Canada Nichols, you know, is working on on the old text model, but the ground that we picked has been picked for similar characteristics to what we've already discovered. Ultra-mafic belts, mafic volcanics, you know, intrusive, proximal intrusive cyanidic dykes, and historical gold numbers. We have an awful lot of ground that we need to work on. But again, there's a technical rationale as to why we picked up what we picked up. Gentlemen, congratulations on your success in 2025 and we look forward to hearing further updates in 2026.

29:16 But thank you everyone for joining us and happy holidays.